STRATEGIC MANAGEMENT (STMT401)

Assignment 1: Individual Essay

Sunset Hospitality Group

(Source: Sunset Hospitality Group, 2024)

Name: FNU Himanshu

Student ID: 3215
Professor: Ms. Amiliya Sunny
Date of Submission: 9th February 2024
Word Count: 1577

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Table of Contents
STRATEGIC MANAGEMENT (STMT401)....................................................................................
Introduction............................................................................................................................
Overview of Sunset Hospitality Group.....................................................................................
External Analysis using PESTEL................................................................................................
Internal Analysis using McKinsey 7S........................................................................................
Alignment with Organizational Mission, Vision, and Objectives..............................................
Primary Data Collection..........................................................................................................
Conclusion...............................................................................................................................
References.............................................................................................................................

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Executive Summary

The report is based on an analysis of a hospitality organization. The author has chosen Sunset
Hospitality Group. The report has begun with an introduction of Sunset and their different
divisions like day life, nightlife, living and dining. Then the author has explained their portfolio
with an emphasis on event management. In order to get an in-depth analysis of the group,
PESTEL and McKinsey 7S framework has been explained. Furthermore, the author has focused
on how Sunset's mission, vision and objectives align with MCKINSEY 7 framework. In order to
collect primary data, Author has interviewed Group Director Sales for Sunset Hospitality Group
to validate the findings from secondary data. Lastly, The author has ended the analysis with a
suitable conclusion that states that the internal and external factors do in fact align with each
other.

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Introduction

Sunset Hospitality Group stands as a beacon of innovation and excellence within the constantly
changing hospitality landscape of the United Arab Emirates. A comprehensive review of Sunset
Hospitality Group, a distinguished firm known for its diverse approach to hotels, restaurants,
bars and event management services is launched in this article. We seek to reveal strategic
insights that reveal the organization's competitive position and future direction through the use
of robust analytical frameworks such as PESTEL for external analysis and the McKinsey 7S
internal assessment model. In doing so, we seek to reveal the interplay between the external
environment and internal dynamics of the Sunset Hospitality Group, and ultimately provide
concrete recommendations for sustainable growth and success. (Shg, 2023)

Overview of Sunset Hospitality Group

In the hospitality sector of the United Arab Emirates, Sunset Hospitality Group is the epitome of
sophistication and sophistication, mixing luxury and innovation in its diverse portfolio. The
group's involvement in event management brings a distinct dimension to its services, enhancing
the experience and exceeding expectations beyond prestigious hotels, restaurants and bars.
With an unwavering commitment to excellence, Sunset Hospitality Group orchestrates
unforgettable events ranging from intimate gatherings to grand spectacles, seamlessly blending
hospitality with entertainment. As we look into the complexities of Sunset Hospitality Group's
operations, including its strong presence in planning and managing events, we embark on an
exploration journey to understand their essence and strategic imperatives within a dynamic
hospitality landscape In the United Arab Emirates (Shg, 2023)

External Analysis using PESTEL

As we delve into the external factors impacting Sunset Hospitality Group's operations, the
PESTEL analysis framework provides a comprehensive lens through which to examine the
organization's strategic environment. (Aydogan et al., 2023)

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Political: Stability and government policies play an important role in shaping the hospitality
sector within the United Arab Emirates political landscape. In order to ensure compliance and
mitigate risks, Sunset Hospitality Group will have to follow regulatory frameworks, licensing
requirements and geopolitical considerations.

Economic: The dynamics of the Sunset Hospitality Group's business are profoundly influenced
by macroeconomic factors like GDP growth, exchange rates and consumer spending patterns.
Fluctuations in tourism demand, disposable income levels, and global economic trends impact
the organization's revenue streams and profitability.

Socio-Cultural: The opportunities and challenges for Sunset Hospitality Group are highlighted by
the heterogeneous society in the United Arab Emirates, as well as evolving consumer tastes. The
flexibility and innovation of product offerings and marketing strategies are needed to
accommodate diverse demographics and adapt to changing lifestyle trends.
(Dixit & Piramanayagam, 2023)

Technological: The innovation and efficiency of the hospitality sector is driven by technology,
which presents an opportunity for Sunset Hospitality Group to improve guest experiences and
streamline operations. The company's competitive edge and customer engagement initiatives
can be enhanced through the adoption of Digital Platforms, Data Analytics or Artificial
Intelligence. (Wickham et al., 2021)

Environmental: In order to shape Sunset Hospitality Group's approach to resource management

and eco friendly practices, environmental sustainability is becoming increasingly important to
both consumers and regulators. Implementing green initiatives and reducing carbon footprint
not only aligns with societal expectations but also fosters brand loyalty and corporate
responsibility. (Bharwani & Mathews, 2023)

Legal: For the operation of Sunset Hospitality Group in the United Arab Emirates, compliance
with legal frameworks relating to labour, health, safety and taxation shall be paramount. Legal

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risks are reduced and the organisation's reputation and Financial Integrity protected when it is
able to manage difficult legal requirements and ensure compliance with industry regulations.

Internal Analysis using McKinsey 7S

Sunset Hospitality Group's internal dynamics are fundamental to its ability to achieve strategic
objectives and maintain a competitive advantage. The McKinsey 7S model provides a holistic
framework for assessing the organization's internal elements:

Strategy: Sunset Hospitality Group's strategy is based on its long term vision, market position
and competitiveness. The clarity and coherence of the organisation's strategy determines its
direction and resource allocation, whether it is devoted to luxury accommodation, culinary
excellence or event management. (Ho et al., 2023)

Structure: Reporting relationships, decision making processes and operational effectiveness are
defined by the organizational structure of Sunset Hospitality Group. Whether characterized by a
centralized or decentralized approach, the alignment of structure with strategic goals influences
agility, responsiveness, and scalability. (Grant, 2016)

Systems: The internal systems consist of processes, procedures and technology infrastructure
facilitating daily operations as well as supporting strategic initiatives. Efficient systems improve
productivity and service delivery from reservations and inventory management to customer
relationship management, CRM and performance analysis. (Evans, 2019)

Shared Values: The identity, guiding principles and employee behaviour of the Sunset
Hospitality Group are defined by its core values and organizational culture. The promotion of
excellence, integrity and guestcentricity is instrumental in fostering a cohesive and motivated
workforce that shares the organization's mission and customer service values.
(Gomes & Cantú, 2024)

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Skills: In order to deliver an exceptional guest experience and carry out Strategic Goals, the skills
and competences of the Sunset Hospitality Group's staff are vital. Investing in talent
development is ensuring a highly successful and flexible workforce, from culinary expertise to
event management or customer service skills. (Hill et al., 2016)

Style: The culture and processes of decision making in the Sunset Hospitality Group are set by
leadership style and management practice. The style of leadership has an impact on employee
engagement, innovation and organisational flexibility, whether in the form of visionary
leadership, participatory management or entrepreneurship.

Staff: The composition, skills and diversity of its workforce is reflected in Sunset Hospitality
Group's Human Capital. Operational excellence, creativity and adaptability in meeting evolving
customer needs and industry trends are ensured by recruiting, training and retaining the best
talent across different roles and functions. (Brundin et al., 2022)

Alignment with Organizational Mission, Vision, and Objectives

The extent to which internal dynamics support its strategic direction can be assessed by
evaluating the McKinsey 7S analysis in accordance with the organisation's overall objectives:

Mission: The mission of the Sunset Hospitality Group is to provide exceptional guest
experiences, promote innovation and contribute to the hospitality environment in the United
Arab Emirates. A unified focus on customer satisfaction, performance excellence and constant
improvement is achieved when assessing the alignment of Internal Elements with the
organization's mission.

Vision: The vision sets out the organization's ambitions and goals, with a view to its future state
of affairs and competitive position. The Sunset Hospitality Group can take the right path to
sustainability, market leadership and innovation by aligning its strategy, structure and workforce
capabilities with this vision.

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Objectives: For the assessment of performance and progress towards strategic objectives,
specific, measurable objectives provide tangible benchmarks. The achievement of key objectives
related to revenue growth, market expansion, customer retention and brand differentiation is
facilitated by the provision of coherence among internal systems, common values and
leadership styles.

Primary Data Collection

In an interview with Eisha Mehra, Director of Sales at Sunset Hospitality Group, key insights
were obtained regarding the organization's strategic alignment and operational dynamics:

Interview with Eisha Mehra, Group Director of Sales:

Q1: Do you have an overview of the mission, vision, and key objectives of the Sunset
Hospitality Group?
A1: In our portfolio, the Sunset Hospitality Group is committed to delivering exceptional guest
experiences. Through innovation and personalised service, our mission is to exceed
expectations. By driving revenue growth and maintaining a strong brand reputation, we aim to
become leaders in the hospitality sector of the United Arab Emirates.

Q2: How'd you describe the corporate culture of Sunset Hospitality Group?
A2: We have a culture of cooperation and entrepreneurship, which promotes creativity and
accountability. This allows for memorable experiences and swift adaptation to changes in the
market.

Q3: How do Sunset Hospitality Group's internal structure and systems support its strategic
objectives?
A3 : Our structure is designed to foster flexibility and efficiency, while investment in technology
enhances the guest's experience and drives performance.

Q4: How does leadership play a role in developing the strategic direction and culture of an
enterprise?

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A4: In order to meet the long term objectives, leadership sets the tone of our culture and vision,
emphasizing transparency and continuous learning.

Q5: In the hospitality market in the United Arab Emirates, what opportunities and challenges
do you foresee for the Sunset Hospitality Group?

A5: Experience tourism and digital transformation offer opportunities, but it is necessary to
develop proactive strategic planning in order to address challenges such as regulatory changes.

Conclusion

In conclusion, The analysis of the external and internal dynamics of Sunset Hospitality Group
provides valuable insight into its competitiveness and future success in the United Arab
Emirates' tourism sector.

Externally, the organisation faces a dynamic environment which is influenced by political

stability, economic fluctuations, evolving social trends, technological progress, environmental
sustainability initiatives and legal provisions. However, strategic flexibility and adaptability of
Sunset Hospitality Group are essential to maintain its competitive edge as these factors present
both opportunities and difficulties.

In the internal sphere, Sunset Hospitality Group is strongly aligned to its mission, vision and
objectives through a collaborative culture, simplified structure, efficient systems, shared values,
experienced staff, effective management and strategic initiatives. In the competitive hospitality
market, these internal strengths make the organisation well placed to continue to grow and
innovate.

Sunset Hospitality Group can increase its competitiveness and establish sustainable success in
the rapidly developing tourism sector of the United Arab Emirates by exploiting its internal
strengths and outside opportunities, while at the same time limiting any possible threat. The key
drivers for future growth and prosperity of Sunset Hospitality Group in the United Arab
Emirates' hospitality sector will be strategic alignment, innovation, and adaptability.

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 References

Aydogan, M., de Esteban Curiel, J., Antonovica, A., & Cetin, G. (2023). Characteristics of crises
resilient organizations in the hospitality and tourism industry. International Journal of
Contemporary Hospitality Management. https://doi.org/10.1108/IJCHM-12-2022-1630

Bharwani, S., & Mathews, D. (2023). Sustainable luxury: from an oxymoron to a tautology –
the case of the Indian luxury hospitality industry. Worldwide Hospitality and Tourism Themes,
15(3). https://doi.org/10.1108/WHATT-01-2023-0013

Brundin, E., Liu, F., & Cyron, T. (2022). Emotion in strategic management: A review and future research
agenda. In Long Range Planning (Vol. 55, Issue 4). https://doi.org/10.1016/j.lrp.2021.102144

Dixit, S. K., & Piramanayagam, S. (2023). Teaching cases in tourism, hospitality and events. In Teaching
Cases in Tourism, Hospitality and Events. https://doi.org/10.1079/9781800621022.0000

Evans, N. (2019). Strategic management for tourism, hospitality and events: Third edition. In Strategic
Management for Tourism, Hospitality and Events: Third Edition.
https://doi.org/10.4324/9780429437601

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Gomes, N. P., & Cantú, W. A. (2024). Strategic Cultural Management and Trend Studies: A Contribution
for Articulations in Branding and Strategic Communication. Smart Innovation, Systems and
Technologies, 344. https://doi.org/10.1007/978-981-99-0333-7_16

Grant, R. (2016). Contemporary Strategy Analysis: Text and Cases Edition. In John Wiley & Sons Ltd
(Issue 9).

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