Learning Outcomes
Entrepreneurship is a difficult task and the forming of a hotel or a resort, sounds easy but is a difficult task because it can be considered to be a project which requires ample managerial skills along with innovative strategies which would help the particular hotel in combating against competition and make its standing in the business environment (Gamble & Thompson, 2011). The primary purpose of the report is to prepare a strategic plan for the hotel Double Tree which will be based in the Bondi beach. The plan will be presenting its first year operations by analyzing its present condition and factors. It needs to be kept in mind that the particular study just considers the viability of the particular business and does not present a well proposed strategy which can be provided to the company at large. The report is divided into three parts whereby the first part comprises of the external environment analysis using Micro as well as macro environmental analysis using the tools of Porters five forces and PESTLE Analysis. In addition to this, the overarching framework for the strategies of the hotels will be discussed which will then be followed by certain recommendations based on the same, were provided. The data used in this analysis has been taken from secondary sources.
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The external environment analysis comprises of the macro as well as the micro environmental analysis which takes into consideration the factors which lie internal as well as external to the firm. The external environmental factors which can affect Double Tree are factors like Political, economic, Social, Technological, Legal and Environment factors. This will be analyzed using the PESTLE Analysis (Jankovi? & Kriva?i?, 2014).
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Political
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The political powers in Australia tend to place a huge amount of Carbon Tax into the organization and this can have a huge impact on the profitability of Double Tree. Hence, as a result, Double tree needs to reduce its carbon emission footprints.
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Economic
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This refers to the inflation and pricing of the hotel based on the economic condition of the country at large. The hotel will be paying certain taxes based on the services it provides and needs to ensure that it looks out for different policies in support of the hotel. Also comprises of factors like visa, pricing, and surcharges on the different payments methods
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Social
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The social factors tend to have an impact on the different choices of the customers and the manner in which these choices have an impact on the overall functioning of the firm. As the other hotels do not have lounges and suits, the Double tree hotel with its services has a good scope of performance and the company can earn well from serving these groups.
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Technological
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As the technology has improved greatly, features like internet booking, quick check in facilities have changed the manner in which the hotel industry functions. Moreover, Double tree can make use of modern management system to ensure faster revenues
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Legal
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The legislative regulations have changed considerably and due to this, the health as well as the safety factors tends to have a huge impact on the firm. Moreover, the penalty rates have changed considerably along with laws like Lockout and revenue taxes.
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Environmental
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With respect to environmental aspect factors like weather conditions of the location of Double tree and the beach size, there are various environmental considerations to be made by the hotel and ensure that it follows considerable sustainable practices
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The key learnings from the Macro environmental factors are as follows:
The Double tree needs to ensure that its practices are sustainable in nature, they make use of advanced technology and that the security aspects as taken care of.
Micro Environmental
The micro environmental factors will examine the internal elements as present in the firm. This is the environment in which the firm operates and this analysis can be done using the Porters Five Forces which will help in understanding whether the firm in concern will be successful are not.
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Threat of new Entrants
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As the tax legislations on the small businesses are considerably less, the firm can take advantage of this and enjoy the lack of tax obligations as well. However, the threat of a hotel near beach is high which makes this overall threat Moderate
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Threat of Substitutes
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The threat of substitution comes from the different companies like Airbnb and other budgeted private accommodations. HIGH power.
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Bargaining Power of Customers
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The bargaining power of the customers is very high because of the influence of social media and bloggers. The new trends and price sensitivity affects the different independent travelers.
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Bargaining Power of Suppliers
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The power of the suppliers is also considered to be quite high as the demand in the city areas have increased (Rice, 2010). This may also be contributed to lack of Freshness suppliers and the increased supply for local goods.
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Industry Rivalry
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The competitive rivalry in the hotel industry in Australia is considerably high because there exists a presence of a large number of hotels and the place is a tourist destination with high brand value. Hence, the older businesses enjoy competition
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Key learnings from the analysis:
It can be understood that the guests need to be provided with stronger advertisements, better services and price dynamics to ensure larger customer base.
The second part of the report will present an analysis which will be presenting the current condition of the Double Tree hotel by making use of an Overreaching framework so that final strategies can be designed effectively. The formation of the framework is important for the different companies for the achievement of the long term objectives.
Analysis
Vision – The vision of Double Tree hotel is to ensure that the hotel has an established in the heart of every customer and wants to present itself as a Sustainable, reliable as well as a professional hotel. Hence, their focus should be largely environmental friendly and they need to assure that the different customers enjoy their visit and live in a safe environment.
Mission- The mission of the Double Tree hotel is to become the leading hotel as present for different categories which involve luxury, safety as well as environmental friendly. As the hotel is places considerable close to nature, the aim of Double tree is to ensure that they are able to increase the brand value and see to it that the customers enjoy their stay (Okumus, Altinay & Chathoth, 2010). Moreover, they aim to make use of the advanced technology and ensure a comfortable environment for the guests.
Ethics- The safety of the different guests is the prime priority of the Double tree hotel and hence, they want to ensure the safety of the customers and ensure that they make loyal customers for the long term. They aim to achieve competitive success with their excellent care and facility.
Objectives and Goals
The goals and objectives of the Double tree have been given as follows:
- To ensure that the new advanced technology is processed and that the efficiency is improved
- To ensure different types of rooms are added like lounges as well as suites so that single as well as the family guests can enjoy their stay (Gheibi et al., 2018).
- To engage in a pricing strategy such that the different types of guests can be attracted.
- To build good employee relationships so that the firm can perform well in the future
- To engage in more ecofriendly moves so that people choose them as their prime hotel.
The following recommendations have been made to the Double tree hotel
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Attractive Rates
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The rates which Double tree makes use of needs to be made using the Penetration strategy. In this manner, the different rates need to be set for different products and for this purpose, the hotel needs to ensure that its pricing is competitive in nature which will help in increasing occupancy and making use of the different facilities as possible.
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Revenue management
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The revenue which the hotel will be earning in the first two months by making use of the booking websites needs to be managed effectively so as to ensure that there exists no problems.
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Food and Beverage
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Along with the accommodation facilities, the hotel needs to collaborate with the different suppliers who provide natural as well as fresh local supplies so that the customers can have their health in priority and make use of these facilities in the hotel itself (Kwahar & Iyortsuun, 2018).
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Staff
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In addition to this, the different staff in the Double tree needs to be hired on the basis of a fixed pay system and that training needs to be provided to them in order to ensure that adequate services are provided to the different guests and their style is enhanced.
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Advertising
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The use of social media for the advertisement facility needs to be made and the use of Influencers as well as Bloggers needs to be made adequately.
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Environmental Management System
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The Double tree can also make use of an Environmental Management system whereby they can see to it that the focus is on the environment and that sustainable practices are adopted.
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Refurbishment
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Lastly, executive lounges as well as the new suites need to be added so that the target market of the customers are increased and they are provided with staying facilities with restaurants and their scope increases.
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Extra Facilities
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Lastly, the firm needs to be provided with technical facilities, improved communication system, internet facilities and quick check in services.
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Conclusion
Hence, the given analysis it can be stated that the given report provided certain scope as well as recommendations which will assist in ensuring that Double tree will be successfully able to improve its overall operations and that it focuses largely on the sustainable practices. Double tree hotel needs to ensure that it makes use of Australian standards and the focuses on gaining trust and increasing the brand value of the hotel. It is important that Double tree makes use of a strong base in the hotel industry of the beach. Certain recommendations based on the same have also been provided.
References
Gamble, J., & Thompson, A. A. (2011). Essentials of strategic management: the quest for competitive advantage. New York, NY: McGraw-Hill Irwin.
Gheibi, M., Karrabi, M., Mohammadi, A., & Dadvar, A. (2018). Controlling air pollution in a city: A perspective from SOAR?PESTLE analysis. Integrated Environmental Assessment & Management, 14(4), 480-488. doi:10.1002/ieam.4051
Jankovi?, S., & Kriva?i?, D. (2014). Environmental accounting as perspective for hotel sustainability: literature review. Tourism & Hospitality Management, 20(1),
Kwahar, N., & Iyortsuun, A. S. (2018). Determining the Underlying Dimensions of Quality of Work Life (QWL) in the Nigerian Hotel Industry. Entrepreneurial Business & Economics Review, 6(1), 53-70. doi:10.15678/EBER.2018.060103
Okumus, F., Altinay, L., & Chathoth, P. (2010). Strategic management for hospitality and tourism. Oxford, UK: Butterworth-Heinmann.
Rice, J. F. (2010). Adaptation of porter’s five forces model to risk management. Defense AR Journal, 17(3), 375-38
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