BSBMGT616 Develop and implement

strategic plans

Assessment Task 2 – Report writing

 ABSTRACT

Elizabeth group of hotels take pride in being one of the leaders in market. With operations in all states,
Planning tends to become critical aspect of success as it provides an opportunity to step back, analyse,
evaluate and reconsider the activities of organisation. The strategic plan is an overview of the
company’s aim to achieve its objectives. Strategic plan helps the organisation to stay on track and
allows the organisation to identify the changes required to do so while being faithful towards its
vision. It intends to analyse the business environment, its stakeholders and the strategies that need to
be implemented to accomplish its goals.

INTRODUCTION
The strategic plan is for the marketing department of Elizabeth group of hotels. It aims to review the
goals, direction and strategy of the company under the guidance of the original principles and core
values of the company. SWOT analyses will be used to analyse the position of the company and to
establish the needs for core expansion.

MISSION AND VISION

Elizabeth aspires to provide high standard service to its clientele and become the leader while meeting
its stakeholder’s expectations and preserving its socio-environmental responsibility.

OBJECTIVE OF MARKETING TEAM TO SUPPORT ELIZEBATH’S VISION

The marketing team aims to guide Elizabeth Group of hotels through the financial year to overcome
the aftermath of recession and competitors and move it towards more stability in its core business. It
aims to achieve this by:
 Rebranding its subsidiary in Victoria.
 Develop marketing plans to increase its customers by 5%.
 Add to the stakeholders group.
REVIEWED ORGANISATIONAL VALUES
 Give a great work environment by treating each other with care, respect and dignity.
 Embrace diversity as a vital component.
 Be innovative, solution-oriented and show entrepreneurial spirit.
 Build up enthusiastically satisfied clients all of the time.
 Positively contribute to our people and our environment.
 Distinguish that profitability is crucial to our future success.

STAKEHOLDERS

The key internal and external stakeholders in Elizabeth group of hotels are:

 Investors
 Hotel managers
 Suppliers
 Industry associations
 Employees
 Customers
 Environmental groups

The company collaborates with the key stakeholders that are directly affected by our business to
understand their outlook and interest. This guides us to achieve our objectives of responsible
investment for future.

LIASONING WITH STAKEHOLDERS

The investors are involved in the strategic planning process by encouraging them to schedule meetings
with the marketing team managers so that they understand and learn more about our strategies before
investing in our business.

The hotel managers are involved by supporting them in strategic direction to achieve customer
satisfaction and support brand marketing by giving guest incentives.
The suppliers are engaged with the managers to develop strategies that foster innovation and
sustainable business practice. This helps us achieve Energystar and accomplish socio-environmental
responsibility.

The commitments and objectives of the company cannot be accomplished without the work and
support of the workforce. The employees are regularly consulted through meetings, intranet and
events and trained to engage in cross-functional team to work for the achievement of our objectives.
The employees are asked to participate in an engagement survey twice a year.

Collaboration with community and government organisations helps us to plan and implement
initiatives for responsible business ethics in hotel industry.

INTERNAL AND EXTERNAL ANALYSIS

The shortcomings that hinder the growth of hotel can be overcome by studying the internal
environment as it effects the performance of the company.

The internal factors associated with marketing department are: Product and price

Marketing objectives

The Company should have clarity about its product before establishing its price. The strategic planning
of the product positioning influences the price. Looking at the recurrent recession phase, profit
maximisation and cash flow can be achieved by setting appropriate price, Strategic marketing and
action plan to be implemented to attract customers. Support from the stake holders can be achieved by
providing trade discounts on corporate bookings and better conference facilities.

Other strategies include stabilizing market and create excitement in stakeholders through new
products.

The main external factor that has affected the company is competitors. By scanning the threats from
its competitors it can formulate a better strategy and utilize the opportunities.

Political factors: Australia is a famous tourist destination and government can increase its popularity
by amendment in its regulations to promote tourism. The company can work in parallel with the
government bodies on increasing tourist rate.

Social factors: The country has seen huge influx of immigrants and tourists indicating the cultural
diversity of the population. Thus there is demand for new cuisines and styles. The marketing managers
can collaborate with its hotel managers and suppliers to bring in and promote cultural diversity in its
business.

Environmental factors: Consumers have become more conscious and aware about their contribution
to the environment and sustainability. By working in partnership with the social bodies, the marketing
team can plan strategies to promote sustainability and environmental awareness.

POWER DYNAMICS

The environment to identify the power of dynamics in hotel industry was investigated in depth through
the Porter’s analysis.

Bargaining power of the suppliers

The hotel being located in the business hub of Sydney, the availability of goods and suppliers is not
limited. Thus, it limited the bargaining powers of suppliers.

Bargaining power of buyers

Sydney has many alternatives for accommodations ranging from hotels of all standards to private
accommodations like Airbnb. The buyers can choose from the varied categories of accommodation
available based on luxury, location, facilities and pricing. Thus, the buyers enjoy their share of power
to bargain.

Threat of new entrants

Since the inclination of tourist towards Australia, the hospitality sector has observed influx in its
industry from local as well as international business groups, threatening the original industry.

Rivalry among competitors

As the business has bloomed in the hospitality sector, so did rivalry among competitors as they
propose same offers and services in the same market. The bargaining power with buyers makes it
tougher.
 SWOT ANALYSIS

STRENGTH WEAKNESS
 Perfect location.
 Repeat customers.  Hospitality cannot match upcoming
 Value for money. market hotels.
 Loyalty of consumers and vendors.  Level of debts.
 Friendly nature of owners.
 Effective customer retention scheme.

OPPORTUNITIES THREATS
 Cashing on the benefits of tourism  Increased competition.
growth.  Price war and better facilities by other
 Affordable place perfect for business hotels.
trips and weekend stays.  Lack of differentiation.
 Establishing presence in the mid-level  Economic situation.
budget hotel sector.  Increased taxes.

KEY RECOMMENDATIONS

 Strategic marketing plan.

 Product development strategy

 Utilise allocated resources properly.

RISK ASSOCIATED WITH IMPROVED STRATEGY

Expansion: The Company plans to undertake extension in Victoria. This project is under its way
there are risks associated with it relating to financing, consumer service delivery, costs and failure in a
new market setting.

Economic risk: The financial performance of the company might decline due to geographical and
economic factors of that state.

RISK ASSOCIATED IF WE DO NOT IMPEMENT CHANGE

Hospitality industry sees a lot of changes in market trends and competition from other groups. To
maintain niche in the industry, the company needs to be abreast with the latest trends and make
necessary changes in its approach to achieve customer satisfaction.
If we do not implement these changes the definitely the customer satisfaction will be affected leading
to stagnant sales and decline in profits.

LIAISONING THE STRATEGY WITH OTHER DEPARTMENTS

The marketing department clearly understands the need of the company and miscommunication
among the departments can directly have a negative impact on the company’s operations. To end this,
the department has created a communication plan and set up a liaison board.

To ensure that the internal and external analysis of marketing team is in sync with other departments
and stakeholders’, a system is established for gathering their perception and knowledge.
To commence a proper strategy, the stakeholders are consulted to find out their discernment of the
potential impact of the proposed plan. Feedback from all departments allows making necessary
amendments in the action plan.

STRATEGIC PLAN

Strategic planning will guide the organisation towards a successful feature. The strategic plan will help
the company to perform better by focusing on its goals with a shared vision.
The current market trends and position of the company is analysed through SWOT and PESTEL
analyses. The company evaluated its objectives and developed SMART goals based on market
research.

SMART GOALS

 Achieve a 95% customer satisfaction rating and 5% increase in customers.

 Increase the volume of repeat guest business by 10%.
 Reduce the check in and checkout time by 10min.
 Promote place for corporate events
 Meet the practice goal of a 50 percent reduction in staff absences.

ANALYSING COMPETITORS
STRENGTH WESTIN HILTON TRIDENT
 Prime location.  In town  Continental  Excellent
 Multi cuisine  Continental breakfast facilities.
 Value for money breakfast  View of Sydney  Modern
 Clean and  standard harbor restaurant
comfortable conference  Spa and  National online
room facilities swimming booking
facilities. available

WEAKNESS
 Lack of technology  Expensive.   promotion
 Not well promoted.  Single cuisine  Expensive.  Expensive.
 Lack of modern
amenities.

MARKET TRENDS

Hospitality industry is blooming and very competitive. To maintain a position the company ensures to
research market trends.

1. Catering to millennial.
2. Incorporate technology in Services.
3. Online booking facility.
4. Easy check-in and check-out.
5. Adding social events to calendar.

STRATEGIES TO OVERCOME WEAKNESS AND THREATS THROUGH SHARED

VISION
  Focus on the quality of service by teaming up with hotel managers and housekeeping
department. This can be accomplished by recruitment of trained and experienced expertise in
cooperation with the human resource department.
 Enhance hospitality by including a health spa and gym to attract millennial and spacious play
area for children where families can indulge in quality time. Conference room with build in
technical support can be added to the services for the regular business customers. The
engineering and technical department can chart out a plan to build up a space for this purpose.
 The marketing team can increase the bookings by marketing the place effectively through
social media and hotel website.
 Have a flexible pricing strategy all through the year by letting the demand determine the rate.
Tie up with local vendors for utilities and other needs.
 In group effort with the food and beverage department, cuisine gaining popularity in market
should be included in the menu.

ELIZABETH GROUP OF HOTELS- SCORECARD

Elizabeth plans to achieve a scorecard within timeframe of a year.

IMPLEMENT STRATEGIC PLAN

 Elizabeth hotels must use communication throughout the process to improve performance and
meet objective goals. Communication of the strategic plan on continuous basis is critical to
accomplish objectives. The Mangers can team personally with other department managers to
explain the strategy. The strategic plan message should be reinforced through letters, mails and
other communication modes.

The scorecard measures and KPI could be displayed on the walls of the office corridors.

EVALUATION STRATEGY

Benchmarking is an effective tool to gain feedback about the outcome of strategic plan.
Benchmarking compares the variables such as cost, quality or the best practices. It helps to identify
the company’s position in comparison to standard.

MONITORING PERFORMANCE

Performance can be monitored by allocating work, assessing performance, providing feedback and
follow up.

The performance of the plan is assessed by designing a performance management and

review plan. The process makes sure that the strategy is clear to the employees and they
understand their role to implement the strategy. The elements of performance management and
monitoring are:

 Performance review

 Measuring key performance indicators.

 Presenting results

 Improvement and training plans.

Infocus, a performance measurement tool can also be used to monitor the performance and bonus. The
scorecard can also assist to initiate changes and adjustment in the strategy by analysing the red
performance zones.

MONITOR PROGRESS OF PLAN

The company can take help of competitive intelligence services which use innovative technology to
identify competition, progress and market trends. The effectiveness and efficiency gains cross five
important business areas:
 Cost Savings
 Increased Revenue from Sales Leads & Partnership Opportunities
 Improved Executive Team Performance
 Maximized Marketing ROI
 Reduced Business Risk

REFERENCES
Robbins, Stephen P., Bergman, Rolf, Stagg, Ian and Coulter, Mary. (2009) Management 5th Edition
Pearson Education Australia

Bartol, Kathryn (2008) Management - A Pacific Rim Focus (5th edition) McGraw Hill, North Ryde,
NSW.

Carpenter Mason, Sanders WM Gerard, Rice John, and Martin Nigel ‘Strategic Management: A
Dynamic Perspective, Cases and Concepts’ Pearson Australia (2009) ISBN 9781442500372

Hubbard, Graham. (2008) Strategic Management 3rd Edition Prentice Hall ISBN: 9780733986758
ISBN-10: 0733986757

Marketing Magazine. 2018. Hospitality is from the heart | Marketing Magazine. [ONLINE] Available
at: https://www.marketingmag.com.au/hubs-c/hospitality-is-from-the-heart/

DeBenedetti, J. (2017, November 21). Balance Scorecard Systems Used in the Hotel Industry.
Retrieved from https://smallbusiness.chron.com/balance-scorecard-systems-used-hotel-industry-
78198.html