The current strategy in relation to the internal environmental factors
Executive Summary
Table of Contents
Sustainability practices of the organization 4
The current strategy in relation to the internal environmental factors 8
Competitive strengths of the organization 8
Introduction
The hotel which has been taken is Park Hyatt Melbourne analyzing the existing strategy that has been used in the hotels and also for developing the recommendations for the development of the business. The hotel is one of the most popular hotels which falls in Hyatt hotels corporation, is one of the largest chains of hotels, the company is commonly known as Hyatt, which is basically an American Multinational hospitality company. The headquarter of the company is in Chicago, which operates and manages luxury franchises, hotels, resorts. Hyatt is an international business that has grown by developing new properties or through the acquisition (Ameri Suites, Summerfield, and two roads hotels). The organization has more than 1,00,000 plus employees all over the globe. They have more than 900 properties all over the globe which are operating in 60 countries. Park Hyatt is one of the most popular hotels in Australia. They have been one of the top hotels due to their exceptional services, location, high tech technology, and lastly facilities.
Current Organizational structure
Park Hyatt's organizational structure is based on the functional structure, a functional structure divides the firms based on function, each division is headed by a manager, and teams are formed based on the role.
Current strategy and goals
These are the most important goals of the Hyatt corporations’ and they have made their strategies accordingly so that they can achieve their goals.
Sustainability practices of the organization
Using the resources in an optimum manner: the first aim of the Hyatt is to make sure that the resources are used in the most optimum manner. Hence to achieve this goal Hyatt has implemented a system through which they can track how resources are being used and how much is being wasted so that they make their purchasing decision according to the requirement.
Building the hotel Smartly: Besides saving the resources, Hyatt was also committed to saving the energy, they want to adopt the initiatives so that they can use the environmentally friendly and efficient approach. Hence to make their contribution they have a certification of LEED so that they can make their hotels greener (Okumus, Altinay, and Chathoth, 2010).
Impacts of mergers and acquisitions, and alliances.
Global presence: through the merger and acquisition, the company can acquire the new markets and slowly, and gradually it has helped them lot in making their presence globally.
Competitive edge: another benefit they enjoyed through the acquisition and merger is that due to their expansion they were able to increase their customers, which led to the popularity, which gave them an edge over the competitors.
The current strategy in relation to the external environmental factors
PORTERS’ FIVE FORCE ANALYSIS
The hospitality sector is known as one of the fastest-growing sectors, in terms of competition it can be said that the rivalry in this industry is high. It is easy for new entrants to enter the market, but it is difficult for them to gain market share as key players have captured the market share. Park Hyatt has to maintain its brand value to remain competitive in the market then only they can flourish and sustain in the market. They need to keep on innovating and increase their productivity so that they can get an edge over the others (Okumus, Altinay, Chathoth and Köseoğlu, 2019).
Bargaining Power of the buyers: (High)
In the above section, we have seen that the industry has a high level of competition, which is increasing at a tremendous rate, which clearly indicates that the number of substitutes is also increasing every day. It can be said that Park Hyatt have to capture good market share, but new players with more advance technology can be a threat to them as they are also providing the same products and service with more advance technique. Hence they need to keep on adapting to new changes and trends so that they can get an edge over the others (Okumus, Altinay, Chathoth and Köseoğlu, 2019).
Threats of New Entrants
Implication
The current strategy in relation to the internal environmental factors
Competitive strengths of the organization
Experienced Management Teams: Another internal strength of the organization is that Hyatt has a strong culture that is deeply rooted and the major reason behind their success and their future. All the team’s members are considered as a Hyatt family which are driven by the same values and goals. Hyatt properties are led by the best and experienced group of managers (Peterson, 2016).
High-Quality hotels which are located in one of the most desirable markets: This is also one of the internal strengths of the organization. All the properties which are owned by the Hyatt are hotels that can be considered as premium and luxury and are located in the areas which can be considered as Desirable that is surrounded by many attractions which gives them an edge over the others.
Major issues faced by the Hyatt
Failure of information technology system: the success of the hotel is dependent on the efficient information system, as they are dependent on them for the reservation, direct booking. Besides, they are also dependent on information technology systems for their daily operations which include guest check-in and check out, housekeeping, tracking inventory, and reporting the financial outcome (Butler, 2018). The issues arise that the Hyatt technology system is very vulnerable to damage or can be interrupted due to the computer virus and fire. The occurrence of these unanticipated problems can interrupt the efficiency of the hotels and could render them, where they will be unable to process the reservation.
Protecting intellectual property: another issue that is faced by the organization is protecting their intellectual properties. The reputation and the perception of the brand are very important for the organization that is operating in the hospitality industry. The company regularly applies so that they can register the trademark in the US and other countries but the threat of copying the trademark or using them in an authorized way remains the same. This can be very harmful to their brand and the reputation in the market, as the brand value of the firm itself is an asset for the firm and is also one of the competitive strategies (Peterson, 2016).
Recommendations
Overcoming the competition: competition is the major threat for Hyatt, as many players have entered the market, which has given them lots of pressure to continuously evolve. They can adopt may ways to combat the competition. One of the ways is by enhancing their customer service and by incorporating the High technology in the market so that they can be differentiated from the others. besides that, excellent service, premium quality hotel, and their brand value can help them in combating the competition (Butler, 2018).
Enhancing their focus on their already existing properties: the Hyatt needs to focus on the properties which are already with so that they can analyze to see where they are lacking behind, utilizing their properties to their full extent will help them in generating more profits and at the same time will increase their customer base which is very crucial for the organization to sustain in the industry which is facing the fierce competition (Butler, 2018).
Conclusion
References
Okumus, F., Altinay, L., Chathoth, P. and Köseoğlu, M., 2019. Strategic Management For Hospitality And Tourism.
Peterson, D., 2016. Strategic Management For Tourism And Hospitality. New York, NY: Willford Press.