Short-term Strategy
While formulation of the strategy which is required to be adopted by an organization is an easy procedure, it is very difficult for a firm to implement the strategy which has been formulated. This means that the organization needs to come up with a proper strategy plan which will assist them in ensuring that the strategy which has been formulated is put into action easily and that the different components of a strategy are aligned in a manner such that the organization is able to gain maximum benefit out of it (Vogel & Güttel 2013, p.426-446)
The report is based on the strategy plan formed in order to implement the concept of Voice Recognition in an organization. As identified in the previous assessment, there exists an opportunity to implement Voice recognition in the Accor group of hotels (Accorhotels.com 2018). For this purpose, the primary aim of the given report is to highlight the short term as well as the long term strategy to launch the Voice Recognition in the organization and to use it for the maximum benefit of the firm. The scenario existing will be explained which will then be followed by a brief description of the short term as well as the long term strategy by making use of various cases, processes and tactics. Certain recommendations based on the same will also be provided.
The Voice Recognition technology has become one of the primarily used technological advancements in the hotel industry. Having stated this, it can also be stated that the other hotels as JW Marriot and Starwood Aloft have already enabled the use of Voice Recognition technology in their offerings (Ginter, Duncan & Swayne 2018). The voice recognition facility goes a long way in assisting a firm to maintain a better relationship with the different consumers and also to ensure that service as provided by the organization improves considerably. Hence, the previous assessment highlighted the scope of Voice recognition in the Accor Hotels and highlighted the ways in which it can be successfully incorporated into the daily operations of the hotel and act as a competitive advantage for the hotel.
A strategy forms an essential aspect of the organization and in order to bring about a certain change in a firm, it is important for the organization to formulate an effective strategy which will go a long way in assisting the organization to find success in their endeavors (Williamson et al. 2013). The following section will lay down the short term as well as the long term strategy which can be adopted by Accor Hotels with respect to the Voice Recognition technological advancement.
Long-term Strategy
To incorporate voice recognition in the daily operations of the hotel like reception, room service and achieving assistance while searching for places to travel by the guest as present in the hotel room (Tran 2015).
To ensure that the customer service of the organization increases considerably.
- To incorporate voice recognition into room service assistance
- To incorporate voice recognition into search assistance (Morschett, Schramm-Klein & Zentes 2015).
- To improve the different services of the hotel and to improve the operations being provided to the different consumers.
The primary objective of the Accor Hotels is to ensure that it is able to integrate all the activities of the organization into a streamlined Artificial Intelligence procedure so as to be able to successfully incorporate the services of the organization in the form of the Voice Recognition as available (Bryce 2017). The hotel group aims to ensure that the hotels are more customer friendly and provide all round the clock assistance to the different customers present and to ensure that in case the employees are unable to manage the staff effectively, the Voice recognition application is able to make up for it.
The strategies which can be adopted by the Accor Hotels are very simple in nature and stated as follows:
- Integrate all the departments of the organization
In order to implement voice recognition the primary procedure involves to integrate all the departments of the hotel through an integrated system which needs be facilitated by the Artificial intelligence (Grant 2016). This shall enable the firm to ensure that when the guest makes use of the Voice Recognition service, the guest is easily able to ensure that he can reach out to all aspects of the firm.
- Install the required technology
There exists specific technological equipment’s available to ensure that the Voice Recognition technology can be adopted by the organization. This means installing the new available Echo Dot by Amazon or using the Siri from Apple to help the customers to make the request to the different departments (Wheelen et al. 2017).
- Train staff
The staff is required to be trained in order to ensure that the organization is successfully able to incorporate the given technology in their daily operations.
Tactics
The tactics which need to be used by the organization involve the following:
Engaging in regular training sessions: This will assist in ensuring that the staff is trained enough and is easily able to get accustomed to the changes which will be brought about in the organization (SiteMinder. 2018).
Engage in regular meetings with the departments: The regular meetings need to be conducted with the organization in order to ensure the long term success of the firm.
The case of JW Marriot
The JW Marriot group of hotels makes extensive use of the Artificial Intelligence technology with the help of Voice Recognition in order to provide efficient services to the different guests. Using the Voice Recognition facility, hotel group in San Antonio Hill Country Resort as well as Spa will easily able to cater to the needs of the different consumers and be able to provide access of the instant restaurant services, services of the of other tourism details and will lead to less time being wasted by the travelers (Moutinho & Vargas-Sanchez 2018). As the hotel availed to this service, it was successfully able to improve the customer service of the hotel and the review ratings also increased considerably. For this purpose, it is suggested that even Accor Hotels can make extensive use of this technology. Just like JW Marriot found success in implementing voice recognition, even Accor Hotels may be able to find success in the similar scenario and at present it can plan to implement basic services and later on move ahead with the future prospects.
Tactics
Cost benefit analysis
Costs associated
FISCAL YEAR |
||||
Cost Items |
2018 |
2019 |
2020 |
|
Consultation |
40000 |
45000 |
42000 |
|
Voice Recognition |
27500 |
42000 |
40500 |
|
Others |
25000 |
10000 |
18000 |
|
Employee and Staff Training |
12000 |
9000 |
65000 |
|
Project Total Cost by Year |
104500 |
106000 |
165500 |
|
PROJECT TOTAL COST |
376000 |
Benefits Associated |
||||
Fiscal year |
||||
Benefit Sources |
2018 |
2019 |
2020 |
|
Enhanced Revenues |
25000 |
25000 |
||
Decreased Employee Salaries |
100000 |
120000 |
125000 |
|
Decreased National Insurance, Pension and Others |
12500 |
12500 |
11500 |
|
Total Benefits Per Year |
112500 |
157500 |
161500 |
|
Confidence factor |
100% |
100% |
100% |
|
Benefits Claimed for Analysis |
112500 |
157500 |
161500 |
|
Project Grand Total Benefits |
431500 |
Fiscal Year |
|||
2018 |
2019 |
2020 |
|
Undiscounted Flows |
|||
Costs |
104500 |
106000 |
165500 |
Benefits |
112500 |
157500 |
161500 |
Net Cash Flow |
8000 |
51500 |
-4000 |
Discount Factors |
|||
Discount Rate |
7% |
||
Base Year |
2018 |
||
Year Index |
0 |
1 |
2 |
Discount Factor |
1 |
0.9346 |
0.8734 |
Discounted Flows |
|||
Cost |
-104500 |
-99065.4206 |
-144554.11 |
Benefit |
112500 |
147196.2617 |
141060.3546 |
Net |
8000 |
48130.84112 |
-3493.75491 |
Cumulative |
8000 |
56130.84112 |
52637.08621 |
Net Present Value |
$ 54,664.03 |
Hence, from the cost benefit analysis it can be stated that the organization will benefit greatly if it adopts the basic voice recognition software.
The long term strategy of the organization can be effectively described as the strategy for the future. These strategies are generally adopted by firms which aim to gain future success and ensure long term durability of the selected plan in place (Lee, Denizci Guillet & Law 2013, p.95-107). The long term strategy which can be adopted by Accor Hotels has been given as follows:
The mission of the Accor Group is to ensure that their customer services improve and they are able to ensure more bookings.
The vision of the Accor Hotels is to become one of the most customer friendly hotels as present in the hotel industry. The Accor Hotel aims to integrate the Voice Recognition system in its software and ensure it is able to effectively become a hotel where all its branches will have the given facility.
- To ensure maximum bookings- This will contribute towards increasing the revenues of the organization (Chan, Okumus & Chan 2018, pg. 829-852).
- To increase the customer satisfaction rates- This will ensure that the brand name of the company improves and that the performance of the firm becomes as per the global standards.
The objectives of Accor Hotels have been given as follows:
To implement Voice Recognition in all aspects of the firm: The short term strategy of the firm involved integrating voice recognition system in certain aspects of the organization like the restaurant suggestion, reception and for the room service, however, the long term strategy is to integrate this aspect to adjust room temperature, book schedules, adjust the light and perform other related tasks as well (Alkhafaji & Nelson 2013).
The strategies to be adopted by the Hotels has been given as follows:
To provide staff training: If the staff is not trained with respect to the voice recognition software and related services, this may have a direct impact on the performance of the firm in the long run. To implement technology to infrastructure, the staff needs to be provided with a proper training in order to ensure that they are able to match with the particular technological advancement.
The tactics which may be followed have to be followed are given as follows:
- Taking consumer feedback: Undertaking the guest feedback is very crucial for the welfare of the organization and for this purpose, it becomes extensively important for the firm to ensure that they incorporate customer feedback well into the organization in order to be successfully able to improve the offerings being made (PCMA.org. 2018).
- Bringing about infrastructural changes: The long term strategy involves providing services like changes in the temperature and other aspects which need to bring about the installation of suitable hardware as well as software to make the necessary changes into the system.
Hence, after this has been incorporated, the organization should be successfully able to implement the detailed business model which was proposed in the previous assignment and has been attached in the Appendix.
For the long term, the Accor Hotels aims to integrate voice recognition in all its aspects and implement the system for the betterment of the organization and hence the case of the Starwood Aloft needs to be considered effectively (Lee, Denizci Guillet & Law 2013, p. 300-324). The Starwood Aloft has successfully made use of the Voice Recognition software and in this manner the temperature, lights and other tasks can be performed , Moreover, the Wynn Resorts in Las Vegas is another case which has made extensive use of the Voice Recognition to ensure an automated system of consumer service (Bettis et al. 2014, pg. 949-953). This has led to a better business opportunity for them and the requests as received by the different customers can be easily saved and used for the future. The traveler saves time using system and hence, the guest stay can be made pleasure bale.
FISCAL YEAR |
||||
Cost Items |
2018 |
2019 |
2020 |
|
Consultation |
45000 |
42000 |
42000 |
|
Voice Recognition |
28500 |
43000 |
45500 |
|
Infrastructure |
24000 |
10000 |
20000 |
|
Employee and Staff Training |
11000 |
20000 |
65000 |
|
Project Total Cost by Year |
108500 |
115000 |
172500 |
|
PROJECT TOTAL COST |
396000 |
Fiscal year |
|||
Benefit Sources |
2018 |
2019 |
2020 |
Enhanced Revenues |
25000 |
25000 |
|
Decreased Employee Salaries |
200000 |
220000 |
225000 |
Decreased National Insurance, Pension and Others |
16500 |
16500 |
18500 |
Total Benefits Per Year |
216500 |
261500 |
268500 |
Confidence factor |
100% |
100% |
100% |
Benefits Claimed for Analysis |
216500 |
261500 |
268500 |
Project Grand Total Benefits |
746500 |
Fiscal Year |
|||
2018 |
2019 |
2020 |
|
Undiscounted Flows |
|||
Costs |
108500 |
115000 |
172500 |
Benefits |
216500 |
261500 |
268500 |
Net Cash Flow |
108000 |
146500 |
96000 |
Discount Factors |
|||
Discount Rate |
7% |
||
Base Year |
2018 |
||
Year Index |
0 |
1 |
2 |
Discount Factor |
1 |
0.9346 |
0.8734 |
Discounted Flows |
|||
Cost |
-108500 |
-107476.636 |
-150668.181 |
Benefit |
216500 |
244392.5234 |
234518.2985 |
Net |
108000 |
136915.8879 |
83850.11791 |
Cumulative |
108000 |
244915.8879 |
328766.0058 |
Net Present Value |
$ 396,968.89 |
Case of JW Marriott
Hence, it can be witnessed from the given analysis that the installation of the system is very beneficial for the organization and that any firm which wants to implement the given set of changes needs to ensure that it benefits in the long run.
Activity |
Months |
||||||
M Jan |
M Feb |
M Mar |
M April |
M May |
M June |
M July |
|
Analyzing the idea |
|||||||
Collecting data from secondary sources |
|||||||
Forming a layout of the changes |
|||||||
Conducting case studies and research |
|||||||
Forming the short term strategies |
|||||||
Training the employees |
|||||||
Forming long term strategies |
|||||||
Trail phase |
|||||||
Interpretation of feedback received |
|||||||
Making changes |
|||||||
Designing a rough draft of strategies |
|||||||
Implementing the entire process in all hotels |
From the given roadmap it can be witnessed that the organization will be following a systematic procedure in order to ensure that the voice recognition system can be successfully implemented into the organization (Wright, Paroutis & Blettner 2013, p.92-125). At first various discussions and possibilities will be assessed, which will then be followed by a trial period, the staff will be trained and the initial idea will be launched in certain rooms or certain hotels, which will then be followed by implementation in other parts of the world based on the success which has been received.
The different issues which the organization could face have been given as follows:
- Financial investments: The organization will be incurring high amount of initial investments for the implementation of the Voice Recognition system in the different hotels and branches of the Accor Hotels. Although, the organization will benefit in the future, but setting aside the high amount of funds in the beginning is difficult.
- Employee approval: The employee approval also needs to be considered before making the given changes, this is because, this implementation will lead to the removal of a certain number of employees due to the automated services and hence, their cooperation is crucial for the firm.
- Response of the customers: When the trial period will be conducted, the organization is required to ensure that the customer feedback is attained regularly and that, the hotel incorporates these changes.
Conclusion
Therefore, from the given analysis it can be stated that the Voice Recognition technological update is one of the most popular advancements in the hotel industry and for this purpose, any firm who is operating in the industry needs to ensure that they remain updated with the technology and are able to easily gain a competitive advantage against its competitors. The report was based on the case of Accor hotels and the manner in which they will benefit by ensuring that they indulge in voice recognition system. The report laid down the long term as well as short term strategy which is required to be adopted by Accor to ensure effective implementation of the Voice recognition technological process.
References
Accorhotels.com. ,2018. Book Hotel Online – Best Price Guarantee – AccorHotels.com. [online] Available at: https://www.accorhotels.com/ [Accessed 11 Aug. 2018].
Alkhafaji, A. & Nelson, R.A., 2013. Strategic management: formulation, implementation, and control in a dynamic environment. Routledge.
Bettis, R., Gambardella, A., Helfat, C.& Mitchell, W., 2014. Quantitative empirical analysis in strategic management. Strategic Management Journal, 35(7), pp.949-953.
Bryce, H.J., 2017. Financial and strategic management for nonprofit organizations. Walter de Gruyter GmbH & Co KG.
Chan, E.S., Okumus, F. & Chan, W., 2018. Barriers to environmental technology adoption in hotels. Journal of Hospitality & Tourism Research, 42(5), pp.829-852.
Ginter, P.M., Duncan, J. & Swayne, L.E., 2018. The Strategic Management of Healthcare Organizations. John Wiley & Sons.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
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Lee, Y.K., Jeong, Y.K.& Choi, J., 2014. Service quality, relationship outcomes, and membership types in the hotel industry: A survey in Korea. Asia Pacific Journal of Tourism Research, 19(3), pp.300-324.
Morschett, D., Schramm-Klein, H. & Zentes, J., 2015. Strategic international management (pp. 978-3658078836). Springer.
Moutinho, L. & Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI Tourism Texts. Cabi.
PCMA.org. ,2018. How the Voice-Recognition Revolution Is Changing Hotels – PCMA.org. [online] Available at: https://www.pcma.org/how-the-voice-recognition-revolution-is-changing-hotels/ [Accessed 11 Aug. 2018].
SiteMinder. ,2018. Face and voice recognition: The promises they make to travellers – SiteMinder. [online] Available at: https://www.siteminder.com/r/trends-advice/hotel-travel-industry-trends/face-voice-emotional-recognition-promises-make-travellers/ [Accessed 11 Aug. 2018].
Tran, T.K., 2015, January. SentiVoice-a system for querying hotel service reviews via phone. In Computing & Communication Technologies-Research, Innovation, and Vision for the Future (RIVF), 2015 IEEE RIVF International Conference on (pp. 65-70). IEEE.
Vogel, R. & Güttel, W.H., 2013. The dynamic capability view in strategic management: A bibliometric review. International Journal of Management Reviews, 15(4), pp.426-446.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. & Bamford, C.E., 2017. Strategic management and business policy. pearson.
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Wright, R.P., Paroutis, S.E. & Blettner, D.P., 2013. How useful are the strategic tools we teach in business schools?. Journal of Management Studies, 50(1), pp.92-125