Novotel Hotel SWOT Analysis
Novotel Hotel’s ability to grow and succeed can effectively be assessed through an analytical tool such as SWOT analyses which is an acronym for Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis of Novotel Hotel reveals that its key strengths lie in its unique hospitality philosophy that gives both families and individual persons, special treatments. Also, its unique location and standardization of its services are found to place it a notch higher than its competitors. On the other hand, it also has its weaknesses which include its unbalanced revenue mix as well as its deteriorating economic performance among others. This suggests that the organization must adopt a more versatile approach that includes intensive marketing to remain afloat. 3 Opportunities…………………………………………………………10 3. 4 Threats……………………………………………………. Recommendations………………………………………………………. Conclusion………………………………………………………….
References……………………………………………………………………. This report gives Novotel Hotel’s SWOT analysis in assessing the best way through which it can realize its future growth. SWOT Analysis SWOT analysis refers to a business analysis tool that an organization uses for each of its products, services as well as its markets is determining the best way through which it can realize its growth and success. According to Sarsby (2016, p. 7), it entails a framework through which an organization can identify and analyze both the internal and external factors that may have an impact on the viability of a product, a project or an organization at large. As the scholar posits, SWOT is an acronym for Strengths, Weaknesses of the organization, Opportunities, and threats (SWOT) that might be present in the market in which an organization operates.
For instance, the hotel is known for its superior service delivery based on its unique approach to hospitality. Through its Human Resource Management, the hotel has invested heavily in ensuring that its customers felt welcome. Customers are regularly greeted with a personal warmth that helps in making them feel more welcome wherever they are within the premises of the facility. Besides, according to the organization’s website, AccorHotels. com (n. This is because, it allows the staff to establish specific needs of different customers from different nationalities and backgrounds which in turn, leads to the betterment of their products and services. Standardization to ensure consistency in service delivery is another strength of the organization (Peters and Frehse, 2005, p. According to the scholars, the need to ensure consistency and have standardized services has prompted the management to engage in discussions on the best ways of promoting quality amid the ever-changing environment.
It led to the launch of “Next up 2015" project whose mandate was to ensure the organization has the right personnel to provide as many ideas as possible and to synthesize the ideas in the formulation of the new strategy (AccorHotels. com). Weaknesses According to Sarsby (2016, p. 11), weaknesses are characteristics of an organization's products and services that are detrimental to the success of an organization. Besides, the weaknesses also give an organization a disadvantage compared to its competitors. Table 2: The concept of weakness based on Sarsby (2016) An assessment of Novotel’s internal factors reveals that it has internal weaknesses that seems to threaten its competitive advantage. One of this weakness is in regard to its deteriorating revenue performance. It is believed that a number of factors such as unfavorable currency fluctuations, terrorist threats as well as geopolitical tension could be responsible for this decline.
Nevertheless, the overall decline has damaged its image considerably. Unbalanced revenue mix is another Accor and Novotel Hotel’s source of weakness. According to Accor Hotel Group's consolidated financial statements, it is evident that even though Accor’s revenue is spread over a variety of segments, hotel revenue alone amounted to 71 percent while its service revenue only added up to only7 percent (AccorHotels. com). According to Hillson (2013, p. 74) opportunities are the prospects that can lead to the growth of an organization. According to the scholar, this opportunities often arise from variations within the market environment, technological advancements, new production techniques as well as changes in customer lifestyle. Novotel Hotel has a number of opportunities that are likely to make it succeed over its competitors.
For instance, there is a huge potential for Novotel Hotels in most parts of Asia and Africa. This has made it be appreciated and recognized globally. In turn, a majority its customers have developed a favorable expectation towards it. Presently, these customers associate it with quality services and favorable prices. The organization can take this opportunity to increase its locations in foreign markets. However, as Hillson (2013, p. 2 percent decline in operating profit has been witnessed France based Accor since the year 2015 which can only be attributed to lower demand that came in the aftermath of terrorist attacks (Financial Times 2016, July 28). Another threat facing Accor and which threatens its overall success includes its dependence on reliable and highly qualified personnel. Unfortunately, countries such as Australia are characterized by high employee turnover which is likely to make its performance suffer (Van der Wagen & Goonetilleke 2012, p.
The drop in Accor’s revenue that was witnessed in the year 2006 is also believed to be as a result of service quality that had drastically deteriorated due to high employee turnover. For example, Accor in its efforts to promote its revenues and facilitate efficiency in its operations decided to make major changes in key departments such as Revenues and Sales and Marketing Reservations (Praporski 2008). The creation of good start for the employees would help in eliminating the high employee turnover that appears to be very disrupting the operation of the facility as it leads to the loss of productivity. According to Baldwin, Wilkinson & Barkley (2012, p. 218), employees with low morale seem to hurt the performance of an organization. On the other hand, studies reveal that employees who are subjected to an elaborate on barding programs were most likely to stay in organizations to a considerable length of time.
ii) Improving the Use of Technology. , Blair & Mesch, 2014, p. iv) Employee training to be given priority All Novotel Hotel employees ought to be receiving regular training regarding the use of high-quality technologies as well as on new techniques of delivery services. This will equip them with new skills of incorporating technological use in their activities as opposed to relying on traditional methods only in the service delivery Kapp, & Mesch, (2014). Consequently, their performance will increase drastically leading to increased revenue for the hotel. Conclusions In summation, it is evidenced that in assessing Novotel Hotel’s capability for growth as well as its ability to realize its goals and objectives, SWOT analyses tool is necessary. References AccorHotels. com - Novotel Hotel Reservations, Ibis.
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