Gravie and Co Hotel Strategy
Political 4 2. Economic Environment 4 2. Socio-cultural environment 4 2. Technological Environment 4 2. Ecological Environment 4 2. Management Strategy 8 Mission 8 Vision 9 6. Model structure of the hotel 10 Conclusion 11 1. Introduction Gravie and Co Hotel is a privately owned hotel located in Bondi beach in Sydney, South Wales specifically about 350 meters from the ocean shore. The hotel has been operational for 26 years now since its inception in 1992. The owners have been operating in the hotel industry but due to management constraints, the hotel has been on lease for the past ten years until now. Socio-cultural environment The social environment in Australia comprises of diverse groups of people with no official religion. The different religions include Roman Catholics 27%, non-Christians 10%, Anglicans 26. other Christian groups 24. and others 12. Mansour Ghazi, 2016). Analyzing Microenvironment using Porter’s Five Force Theory Figure 2: porter’s five force analysis for Gravie and Co Hotel Using Porter’s five forces model, we can evaluate our ability to realize our goals in the next twelve months.
These forces are the one that will determine the level of competition we are likely to face and the profitability of our strategy. High Competitive rivalry The competitive rivalry for Gravie and Co Hotel is high. On Bondi beach, there are more than ten mid-sized companies like ours; this is likely to be a challenge regarding our pricing and returns (J. Turner, 2013). According to Porter, when buyers have control over the prices in the industry, the business has no choice but to consider it (Önören, Arar & Yurdakul, 2017). Gravie and Co hotel strategy is to include customer return discounts and affordable prices for multiple services. Low Bargaining Power of Suppliers Most suppliers tend to have a higher bargain on their products because they control the stock and performance of an industry, which is the case for hotels in Bondi, Sydney (Mansour Ghazi, 2016; Manjunath, 2014).
We have made it our policy to create and maintain healthy relationships with the existing suppliers including providing them with stakeholder tariffs. With this package, a supplier will be accorded the same package but at a subsidized cost. According to Archdale (2014), tourism is about media presence and advertising. Recommendations • A revision of the current accommodation rates from $150 to $130. This change will attract more customers and increase room occupation to our target of 99% daily. • A comprehensive training program including customer relations management (CRM) should be mandatory. Members of staff will gain useful insight on how to deal with customers thus increasing our customer retention capacity Kryukova, E. Model structure of the hotel Fig: model structure of Gravie and Co Hotel Conclusion Our management strategy is for one year with a focus on the growth and profitability of the hotel.
The strategic plan analyzes both macro and microenvironments using theories namely PETEL analysis and Porter’s five force theory for successful implementation of the strategy. The end of the plan includes recommendations based on profit-maximizing and competition theory and a model structure of the hotel. References Archdale, G. Tourism, technology and competitive strategies. ijhm. Beer, M. Developing strategic human resource theory and making a difference: An action science perspective. Human Resource Management Review. Bliss, B. A Study on Hotel Front Office Practices and Its Impact on Guest Satisfaction with Reference to the Vivanta by Taj Blue Diamond, Pune. ATITHYA: A Journal Of Hospitality, 1(2). J. Turner, M. Hotel Management Contracts: a Particularly Rich Research Context. Balanced scorecard (BSC) and concept economic value added (EVA) in strategic management service company.
Business Strategies, (3), 26 Lim, G. Nguyen, V. Chua, C. Review of the Australian Economy 2013-14: The Age of Austerity?. Hotel Maintenance Management Practices. Journal Of Hotel & Business Management, 5(1). doi. org/10. Önören, M. Robinson, T. Nguyen, V. Wang, J. The Australian Economy in 2016-17: Looking Beyond the Apartment Construction Boom. Australian Economic Review, 50(1), 5-20. Strategic Enrollment Management Quarterly, 3(1), 29-40. Yüksel, I. Developing a Multi-Criteria Decision Making Model for PESTEL Analysis. International Journal Of Business And Management, 7(24). doi.
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