Host hotels and resort Research Paper
in addition to its subsidiaries. Therefore, host hotels and resort is actually a real estate investment trust that mostly concentrates its investment on hotels. It’s a portfolio mainly consisted of upper scale and luxury properties in the united states of America under widely recognized brand names in the lodging industry. The company has also made investments in properties located in the Mexico, United States, Chile, Canada, Italy Poland and Spain. (Ivolga& Trukhachev, 2018). This tastes and needs involve, luxury, upscale, upper upscale, midscale and the economy each with and without the beverage and food services (Ivolga& Trukhachev, 2018). The property classification is mainly based on the standards of the lodging industry which in turn take account factors such as amenities and guest facilities and accommodation quality Step 4: what is the current mission and is it clearly stated? What are the key organization processes? Most of these hotels operate in the resort and in urban markets either as luxury properties under different brand names which include, the Four Season, Grand Hyatt, Marriot Executive Apartments, St.
Regis and many other brand names. They also selective investments in midscale and upscale properties which are under the following brand names, Crowne Plaza, Four Points by Sheraton, ibis, Hyatt place or the Resident inn by Marriott most specifically at the international markets. Their EPIC is the one that provides guideline to maintaining the following, (1) Capital allocation discipline (2) Superior portfolio that is diversified (3) Strong capabilities on asset management (4) Flexible and powerful capital structure Porters value chain table Firm infrastructure Human resource management ` technology development Procurement Inbound logistic operation Outbound logistic Marketing and sales service The porter’s value chain is used in identifying and understanding company’s value chain. Therefore host hotels face completion from hotels that our managers have invested in, own, manage or just franchise them.
Host hotels and resorts have the believe that they their properties enjoy advantage of competition in association with hotel brands in which they operate. International research and marketing programs system of such brands in combination with the firm management systems and expertise our properties to perform favorably in terms of room rates and occupancy. On top of this, guest repeat business is mostly enhanced by guest program recognition which is offered by most of these brands. Host and hotel resorts also compete with other REITs and other private and investors of the public for the acquisition of new investments and opportunities both in international and domestic markets (Ahn& Back, 2018). What the hot hotels and resort limited company mainly do is helping companies that have new products to launch or are having troubles with old ones thus making sure that their product is positioned to win.
Value created and captured by a given company is the profit margin of the company. Therefore margin is the resultant of value captured and created minus the cost of creating such value. The higher the amount of created value by company, the more profitable the company is likely to be. And by creating more value to customers the company will end up building a competitive advantage. This is some of factors that trigger the failure of an organization. In addition, inadequate systems, backwardness, slow deliveries and shortage of resources are also some of the factor that leads to the failure of an organization at the end. Factors that lead to success of an organization? In in order to ensure smooth running and success of an organization, the organization must adopt the following; (1) Set goals and have a mission (2) Conducive working environment (3) Open and genuine communication in the organization.
Organization should be represented by a communicator who is highly skilled. Should hold conferences and meetings to ensure frequent communication with the colleagues and media. This mostly proved by the positive result shown on the table made from the records within the stated years. Step six: who are the competitors? Is it easy to start a business in this industry? Are there significant entry barriers? What are the dominant characteristics and current trends in your industry? How difficult it is to enter into the industry? Getting an entrance in the industry is somehow not easy since there are several barriers that exist. Some of these barriers include the high startup cost. This is the greatest barrier to entering in this industry.
Benefits of having such barriers are enjoyed by the existing companies since no new companies that can enter into the industry and pose more competition to them (Randle& Dolnicar, 2018) Are there several players competing for profitability? Through this they end up monopolizing the industry thus enjoying the benefits of monopoly. Hotel industry in position faces much rivalry posed by other industries such as tourism industry, nutrition and deities industry and the restaurants. Rivalry is the way in which the hotels compete each other strategically and economically to gain more profits in the market. The competition in rivalry forms the basis of competition in the hotel industry. Intensity of rivalry in the hotel industry is high due to availability of many competitors, low growth and development, high fixed charges, lack of differentiated products and competitors having similar market share (Roper, 2017).
Bargaining power of buyers—who are the buyers in this industry? The main customers in the hotel industry may include the workers of the hotel, tourists, and others. Consumers will then have to choose from a variety depending on the quality of the products and the prices. Threat of substitutes—carefully distinguish between similar products in the same industry The threat of substitute is high due to similar performance of substituting products and low charges of customer switching (Roper, 2017). However, there are no substitute products in the hotel industry and thus a hotel should focus on meeting the expectation of their customers. Step-8 Analysis of the external business environment In expansion of hotel industry, scanning of the environment is very important.
Hotel environment may be divided into two: micro-environment and macro-environment. The number of people living in that country, composition of the people is a key issue to address. For example if the country has more youths, products which suit more youths will have to be provided. Step 9: Assessment of International Expansion On moving international, hotel industry must assess the countries to be based and approach them with various strategies. Differentiation of products should be one of the main ways or strategies which help the firm to be in effective position of going international. In addition cost leadership should also be taken as a strategy where products of high quality products will be produced at a low cost. Such factors can either be macro-economic factors which focus on managing the demand in the economy such as the control of interest rates and control of government expenditures.
The other part is micro-economic factors which deal the spending of income by people. Such factors have a great impact on the performance of the hotel industry. ‘S’ stands for social factors surrounding the industry which comprise of beliefs and altitudes of people such as demography and population, ages and health factors. Such factors create a major concern since they pose specific interest as they directly influence marketing between sellers and customers of the industry. This will enable the industry to operate competitively since it will have variety sources of revenue generated from different parts of the country. However financial distress might be a problem to this relocation since the industry may be forced to set aside extra finance for expansion.
The firm may also face legal problems if the laws of the country don’t allow such relocation since it may take long before adhering to the rules and regulations and the requirements by the government. Adapting to the culture of this country may also pose a challenge to the industry (Zhao, 2018). Step 12: Examination of Cultural Issues Different countries have deferent ways or recruiting and training their employees and marketing products within the country. This will improve the performance of the organization and reduce legal claims against it hence leading to more yields. References Ahn, J. , & Back, K. J. Integrated resort: A review of research and directions for future study. Roper, A. Vertical disintegration in the corporate hotel industry. Current Issues in Tourism, 20(1), 1-6.
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