Case Study
Discuss about the Business Practice and Strategy in Hospitality Industry.
A small business organisation reaches the great height of success only through its unique business strategies and relentless efforts. Business strategy is considered as the best thing which can reach a business to its success through increasing marketing, sales, customer service and interior accounting functions. On the other words it can be said that business strategies are there to help a businessman to use unique tactics and methods in order to manage the business regime in the appropriate manner. The assignment has concentrated on the hospitality industry and all its related factors.
According to the assignment criteria, the assignment has chosen the first case study which is of Hilton, one of the leading brands in international hospitality. It is not that all its branches are making business under one ownership rather these are making business through separate ownership under same brand. Two parts of Hilton are Hilton Hotels Corporation of the USA and Hilton Hotels International, based in the UK and they were started their journey separately in 1964. And near about after forty five years, Conrad Hilton introduced his first hotel in order to bear his surname in Chicago (Chang et al. 2017). These two separated and independent companies under the same brand name are operating the hotel business in various places. The American branch was in charge of operating business in the North America and the British branch is there to operate Hilton hotels all across the world. But problem is that after the separation, there was a misunderstanding rather not so good relationship was there between the two separated companies. And this issue takes the form of a major problem and making confused the customers. In order to solve the problems both the companies appoint chairmen and ensure a joint reservation system. After that in the joint venture it has introduced new logo and joint marketing campaigns. (Hotel, 2014)
After a time being it was noticed that with the improved strategic alliance the joint regime has also improved the operational efficiency. Few problems also took place but with the support of Blackstone, the company has managed the issues. (Lee et al. 2015)
Cultural goal is one of the key things which can make a business organisation more unique and advanced than the rests of the same industry. The mentioned Brand, Hilton International prefers to create the global service culture. According to Conrad Hilton, ‘in order to achieve great things, one should first dream the great dreams”. Presently the brand has 355000 global team members and among them near about 45% members are millennial. And it can be assumed that the rate percentage will increase to 75& in next five years. It has enabled a great working culture and in 2016, Fortune declares it as one of the best hundred places to work. ( Stylidis et al. 2014)
Discussion
The first and utmost strategic objectives of this brand are great global culture, mission, vision and values. Hilton had prioritized the integration of regular work experience with its vision, values and mission. And probably this had made it greater than any other company of the industry. Actually, it is noticed a lot of companies say about these factors but the implementation only exists in posters (Coccossis, 2016). From the close observation it is getting clear that it has taken and will take many initiatives in order serve better the clients as its vision is to be the most hospitable company in the world. According to Schuyler, the mentioned brand recruits for its values and the values include hospitality, teamwork, integrity, leadership, ownership and a sense of urgency. In order to get aligned with the fact it can be said that the award winning culture of the mentioned brand is not the outcome of a single or one-time program rather it can be said that the relentless commitment to recruit the talent with the mentioned values is the utmost effort. (Benur and Bramwell, 2015)
There is another fact too which has made the culture of this setting more unique. Actually, Millennials are accepted as the best way to achieve the target. It is also noticed that companies which are successful to reach the millennial those generally do not prefer to form superficial programs for the generation. But these types of companies prefer to share their values in order to engage the present generation without cutting out the previous generations. And it is also applicable to the mentioned company and according to Schuyler it has near about five generations in its workplaces. On the other words, it can be said that when mission vision and values go beyond generations then automatically an all acceptable regimes get crated which suits all the generations. For instance it can be said that in order to get connected millennials based on its values, Hilton puts greater focus on the tech and career dynamics. It prefers to learn, develop and grow at its own places. (Rasoolimanesh et al. 2017)
Strategic alliance can be accepted as an agreement between two or more parties in order to pursue the selected objectives in order to run an independent organisation. It often falls under the legal partnership unit or any corporate affiliate relationship. It is also noticed that two companies with same strategic alliance can help each other to enhance the profitability and improve the business making regime (Warner and Sullivan, 2017). If the parties desire to get long term win-win benefits then strategic alliance acts best as it easily develop the outsourcing relationship. And it is also applicable to the companies of Hilton. Generally, this type of regime gets accelerated between the mergers and acquisitions in the clear word, it can be said that strategic alliance takes place only when two or more companies join together in order to pursue mutual benefits (Cabral et al. 2016). When it comes to the mentioned brand then it can be said that Hilton worldwide and Cornell have renewed a strategic corporate alliance of three years in order to provide support to education and research regime of Cornell School of Hotel Administration. According to the renewed alliance, the mentioned brand, Hilton will accelerate the regime with its partnership with the mentioned centre for hospitality research and provide support to the school’s projects. Centre for Real Estate and Finance is there to form knowledge about real estate regime and its potential impact on capital marketers (commercial real estate) and the mentioned brand, Hilton is here for the renewed alliance as a fellow of the industry. Due to the renewed alliance, Hilton will become a business member of Cornell Institute for Hospitality Labor and Employment Relations, actually, it is a platform for employers, employees, students, unions and the advocates. Hilton also offers sponsorship during the school’s premier industry events such as Cornell Hospitality Icon & Innovator Awards, Cornell Hospitality Research Summit, Dean’s Leadership Series, and Hotel Ezra Cornell. (Dunning, 2015)
Lecture Topic 6: Developing destination diversity: place, community and culture
Designing the strategy is not the ultimate goal, verifying the performance of the organisation is needed to achieve the goal in a short time span. And that’s why enabling the strategic control is so much relevant for the mentioned brand, Hilton (Gyimah, 2016). Generally, most of the companies enable strategic control in order to analyse the setting of the company and its abilities so that in near future it can maximize its strengths and opportunities. Generally, there are four types of strategic control which are applicable to the business organisations such as implementation control, premise control, special alert control and the strategic surveillance. On the other words, it can be said that with the right strategic control procedures, a business organisation can avail all the four benefits to the business regime. And it is also applicable to the tourism destination. (Dodgson, 2018)
Implementation control- after the proper design of the strategies, the business organisations need to implement it into the genre. The implementation regime gets accelerated through one by one step. Most of the leading business organisations such as Hilton, prefers to enable implementation control in order to make it sure that there is no adjustment in the required strategy for the business. Generally, there two types of implementation control such as monitoring strategic thrusts and accelerating milestone reviews. The first type concentrates on the used tactics by the organisation in order to gain more market share and the next one concentrates on the full assessment according to the designed strategy. (Krishnan et al. 2016)
Premise control- generally, the business strategy of any organisation is based on the premise of the facts how they will take place in future. Premise control allows the brand, Hilton to check that the activated premise is still valid or not. A fact needs get mentioned here and that is generally the premises can get affected due to several factors such as interest rates, inflation, social changes, competitors and barriers to access. (Marquis, 2017)
Special alert control- during the natural disasters, product recalls and market spikes, all the business organisations require mechanism in order to review the position of the organisation. Through the special alert control, the mentioned brand, Hilton can reassess the relevancy of the designed strategy in consideration of these facts. (Vanhove, 2017)
Strategic surveillance controls- the external threat can delay the business regime and profitability. And all the business organisations prefer to enable right regime in order to protect such external threats. Through the strategic surveillance control one can easily check several sources of external threats. In order to safeguard the business strategy following the relevant facts such as trade journals, attending conferences, and close eye on industry trends can help.
Lecture Topic 7: Strategic alliances and Industry partnerships
The hospitality and tourism industry can take advantage of all these control, regimes in order to safeguard the business strategy and make more and more profit within the limited time span. Lowering the risk factors is another great thing to make business without any interruption. And with all these mentioned strategic control regimes, securing the business and its profitability is possible for Hilton brand. (Ezeuduji, 2015)
Positive and effective leadership is accepted as the best thing which can best accelerate the process of success of a business organisation. And in order to accelerate the regime, leadership development and executive coaching programs are beneficial. The main intention of leadership is provide required support. Through the word ‘green’ it can get assumed that a required support of social and political movement which adopts global environmental shelter, bioregionalism, social responsibility and non violence. It is getting noticed that the political persons are continuously denying the increase rate of climate change and its devastating harms. It is like they are indirectly rejecting the necessity of alternative energy sources in order to save the nature and just wheeze when they hear the word “sustainability”. But coping up with the present complicated situation is possible with the positive solution, green leadership. In order to run any business organisation having a positive mindset of emotional and mental perspective, values and capabilities are required and all of these in one alignment crates successful and sustainable practices (Carlisle et al. 2016). On the other words it can be said that with the helps creating sustainable and growth oriented practices for the long term security and development of Hilton is possible. According to the green leadership rather green strategy, foundation of the business is personal, developing mindsets, innovations, long term vision and sustainable practices are important. In order to accelerate the regime rather developing the strategic status of the organisation
The green strategy gets accelerated in Hilton with these three elements such as
Self examination and reflection- this process is based on the values and leadership behavior of the setting. According to this regime, the setting should commit to its personal development and avoid the beliefs which promote narrow self interest. On the other words it can be said that it is like a shift of the mentality to the larger purposes through the service or products. Actually, it is noticed that prioritizing the connection between societal and business success is responsible to enhance a sense of responsibility to enhance the living status of a large number of people through the business activities.
Lecture Topic 8: Strategic control for tourism destinations
Forming empathy and compassion- compassion and empathy are the virtues which are necessary to manage internal conflicts and preserve well-being of the mentioned brand, Hilton. Along with this, it can be said that these are accepted as the strength of this global brand. With such type of setting, automatically the employees focus on the efforts and tasks and moreover a sense of interconnectedness takes place within the regime. (Zaccaro et al. 2017)
Adjustment with changing social attitudes- the changes in social attitudes directly affect the career goals and creative creation. Actually, if the individual’s goal does not get aligned with the organisation’s then huge complication take place in the business making regime. In order to cope up with this situation proper training and recruiting right candidates are important. And most of the leading organisations follow this regime. Through the proper training and set of objectives, getting adjusted with the changing social changes and protecting the business from external negative impacts is important. (Redman et al. 2015)
Crisis and risk management are not of same aspects rather both of these have separate concept. Crisis generally refers the economic crisis of a nation or in the industry. Crisis management is there to control and fix the problems due to the economic crisis, caused by the organisation or any other factor, as early as possible. The management of the crisis also depends on the nature and extent of a crisis or a problem (McNeil et al. 2015). It is also noticed that often it take considerable resources to solve. Generally, the economic crisis use enormous amount of resources and promises. Lastly it can be stated that crisis management is about a response whereas risk management is about strategies to Hilton. Actually, the regime of risk management is of identifying the potential threats, recognizing its likelihood and the potential impacts of the companies which are getting operated under the brand name Hilton. And after that the regime takes necessary initiative in order to eliminate or minimize the potential risk factors of a business organisation.
Conclusion
After the long discussion, the assignment has reached its conclusion point. Through the entire assignment it is getting clear that in order to run a business organisation in the international level, the setting needs to become more advanced and strategic. There are a lot of factors which are both directly and indirectly connected with the business regime and profitability of the organisation and this is also applicable to the mentioned business organisation, Hilton. Strategic alliance plays a great role in order to hold a greater place in the industry and to support the partner. Through the entire live span, business faces the risks and threats and it is nothing uncommon matter rather with the right strategic control it can get solved easily. Along with these, leadership strategies, crisis and risk management also have greater contribution to help a brand to make its business without facing interruptions.
Reference List
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