Linh Nhat Le Daniel Jarosz Strategic Management Prof. Nicolas J. Hadgis.
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Transcript of Linh Nhat Le Daniel Jarosz Strategic Management Prof. Nicolas J. Hadgis.
Building Capabilities at the Westward Hilton
Linh Nhat LeDaniel Jarosz
Strategic ManagementProf. Nicolas J. Hadgis
Before Westward’s was Purchased by Hiller.
Poor financial records, poor management, and poor maintenance of quality and building.
Introduction
After Westward was purchased by Hiller. Mr. Green, a seasoned hospitality professional, was
in charge of running the business. Excellent management (referencing Golden of
profitability)
The broad environment The industry analysis Strategic issues facing the
industry
Environmental Analysis
Social factors Increase in millennial travelers Growth of international market Popularity-gaining of group travel Gourmet-preferred trend Younger workforce Social media & online interaction Sustainability tourism
Broad environment
Economic factors Economic recovery Competition in airline
industry Emphasis on health and
wellness Increase in direct booking
Broad environment
Technological factors Demand for high-tech Focus on individualism &
automated devices Free Wi-Fi is associated with
luxury service Portable office
Broad environment
Political factors
Increased minimum wage Arrival of migrant workers
Broad environment
Customer Group travelers require price
discount Uniqueness is a must Service quality over price Request for reasonable price
components
Industry analysis
Industry analysis
Supplier Basing on the level of
importance & usage frequency
Basing on the differentiation
Competitor Slow growth in Phoenix market Oversaturated area 12 top-notch hotels
Industry analysis
The Boulders (5-star) Arizona Biltmore Resort and Spa (5-star) JW Marriott Desert Ridge Resort and Spa (5-star) Sheraton Wild Horse Pass Resort and Spa (5-star) Ritz Carlton Phoenix (5-star) Arizona Grand Resort (5-star) Hotel Palomar Phoenix (5-star) Wigwan Resort (5-star) Royal Palms Hotel and Spa (5-star) Sheraton Phoenix Downtown Hotel (4-star) Tempe Mission Palms hotel and Conference Center
(4-star) Pointe Hilton Tapatio Cliffs Resort (4-star)
Substitutes Economy or midscale hotels. (Over 150 in
Phoenix) Resorts
Industry analysis
Potential entrants Large economies of scale Great capital investment High switching costs Position in distribution channels Level of differentiation
Industry analysis
Requirement for survival Serve sufficient number of
customers Provide acceptable level of service
quality & products quantity Balance between expense &
revenue Maintain a moderate management
skills & team work
Strategic issues
Key success factors Provide exceptional, sustainable,
& consistent service Be aware of current trends and
issues Focus on human capital Execute cooperating leadership
style
Strategic issues
Strategic direction Analysis of internal
environment Analysis of resources and
capabilities Performance evaluation
Organizational Resource Analysis
Mission Employees’ lives are made better by treating
them with dignity, rewarding and recognizing their contribution to our success, and providing a safe, secure, flexible, and fun working environment.
Customers’ lives are made better by providing safe environment, excellent service, friendliness, and that extra thoughtfulness that makes visiting Westward like visiting a friend.
Owners’ lives better ensuring that the hotel is a leader on return on investment.
Strategic direction
Vision
Strategic direction
place
Values Dignity Values Focus Achievement Balance
Strategic direction
Owner Major investor – Karen Connor –
share the organization’s culture and values
Parent company – Hiller Enterprises – provide a strong financial support
Internal environment
Management Executive vice president of operations: Peter Green Has 20 years in the industry Believe in the future of Westward Communicate & model values and belief Care for the employees Enhance contact with the customers Be reluctant to delegate responsibilities
Internal environment
Employee Treatment with dignity and respect Employment basing on matching values On-job training with coworkers Enhancement of cross-level
communication Wage & reward system relying on hotel’s
overall performance Performance appraisal is separated from
reward system
Internal environment
Customer Service built on relationship
between customers & employees Listening is the key to customers’
satisfaction Unique feedback system Feedback sharing with employees
Internal environment
Culture Respect the value of team work Create an environment where
employees can be themselves Establish family-oriented
atmosphere
Internal environment
Have a unique value in the market Be hard to substitute Have a culture that value such
resources and capabilities Have been successfully using them
Resources & capabilities
Strengths Weaknesses
Excellent leadershipTop leaders are unwilling to delegate
Motivated and productive
employees
Yield management is skewed
Well-established reputationNo future successor’s followed by Green
SWOT analysis
Opportunities Threats
The increase in international market
Oversaturated market
The increase in Millenial customers who target luxury segment
increase in minimum wage
The growth of group travelEconomic recovery
Migrant immigrant influx
Technology boom
Corporate-level Hiller Enterprises – diversification strategy in
unrelated industries Hiller Hotels – diversification strategy in
related industries
Business-level Westward Hilton – best-valued strategy
Performance evaluation
Future’s strategic direction Business strategy Evaluation of opportunities
and recommendations Implementation and control
Developing a Strategic Plan
MissionEmployees Provide training regarding skill set Emphasize organizational commitment Represent a creative and high-tech enterprise
Strategic direction
Customers Provide a high-quality service Tie quality with a reasonable price Respect the cultural differences Owners Take advantage of emerging opportunities Expand the property’s profit
Strategic direction
Vision Emphasis on the loyalty in the relationship
with customers by providing more personalized service and forming a diversifying environment to serve the international sector.
Strategic direction
Values Diversity Fairness Creativity Ambition Interpersonal communication Loyalty and commitment
Strategic direction
Best-valued strategyÞ concentrate in the core business using its
unique culture and workforce spirit
Business strategy
Recommendation & Implementation
Strengths Weaknesses
Excellent leadershipTop leaders are unwilling to delegate
Motivated and productive
employees
Yield management is skewed
Well-established reputationNo future successor’s followed by Green
Opportunities ThreatsThe increase in international market
Oversaturated market
The increase in Millenial customers who target luxury segment
increase in minimum wage
The growth of group travelEconomic recoveryEconomic recovery
Migrant immigrant influx
Technology boom
THANK YOU