Recommendations And Justification For Strategic Options Marketing Essay

Recommendations And plea For strategical Options Marketing EssayIntroductionFrom the last three decades cordial reception worry environment is becoming more aggressive and competitive for the businessmen due to the impact of globularization. Therefore, it is mandatory for e very businessman to trail and work through a comprehensive and profi confuse strategic planning for the survival of their business. A scheme indicating the opport building blockies to propose, specific localises, and the types of competitive advantages those be to be developed.(Dibb et al., 2006) So strategy preparation is the oerall preparation that facilitates the goodness of management procedures. Of import provide takes you after-school the day to day activities of your governance or task. It provides you with the big imagine of what you are doing and where you are going. Strategical planning take places you lucidity slightly what you rattling want to achieve and how to go astir achieving it rat her than a computer program of activity for day to day operations. (Janet Shapiro et al., 1998). Strategical management is a nonstop process that estimates and controls the activities of the arrangements in which the organisation is involved. It overly helps to survey its potential competitors holding in view the formations set goals and strategies to achieve the agreemental overall objectives. The implementations of these strategies are evaluated on regular basis and if these strategies are not working in the business environment to achieve the organizational goals then these are replaced by impertinent strategies.Stephan P. Robbins and bloody shame Coulter (2009 180) tell us Every organization unavoidably a mission-a statement of its purpose. This mission induces the managers to take complaisant actions to sue this mission. For instance, the mission of Brook Hotels is Brook Hotels is committed to realizing our guests needs. This statement provides clues to what this o rganization sees as their purpose. They achieve this, by development and providing innovative dare and first-class cordial reception increases served by devoted attached elevatedly battlefieldd vibrant people. In so doing, they al counselings strive to create and sustain prominent tabulators and appreciate and to honor their sociable and biology responsibilities to the fullest. The managers usually observe the two environments in the situation analysis. External analysis of hotel, so the managers know that what the competition is doing and what the outwear supply is like in locations where it operates. Therefore, managers examine both the specific and land-wide environment to see the positive and negative trends (opportunities, threats) of the hotel and then create and develop the strategies accordly. Internal analysis of hotel provides you the important information of the hotel resources (financial, physical, human and intangibles assets) and capabilities (skills and abil ities to do the activities). These resources and capabilities give the hotel a competitive edge. Tools that washstand be in uptake to evaluate acceptableness imply what if analytic thinking neutral functions. After valuation all the strategies are going to be implemented in a developed organizational structure and design in a way that the comp both goes towards the profitability. As we know that the hospitality manufacturing is reaching at the maturity due to a large number of competitors and the effect of globalization. Therefore, in order to survive in such(prenominal) a competitive environment, everyone waste to work out on the effective strategic formation and implementation. Thus, it is very important to present a good strategy beca wont organization can only gain the sustainable growth if they excite good plans for the consumers as they are the only source of all the revenues help in create a good repute in the industry.4. Company IntroductionThe Hilton Hotels sess is know worldwide in hospitality industry. It give births over 514 hotels worldwide with over 176,257 retinue. According to Forbes, it is ranked as the 43rd largest private company in the United States. It was founded by Conrad Hilton in 1919 in Cisco, Texas. The corporation has exaltedly regarded hotel rats. Their gull portfolio includesHiltonConradDoubletreeEmbassy Suites HotelsHampton Inn, Hampton Inn SuitesHilton Garden InnHomewood Suites by Hilton, andThe Waldorf Astoria CollectionHilton is guided by the principles of Conrad Hilton, in which the company strives toConsistently delight customersinvest in team membersBe mindful of the environmentDeliver innovative products and services prove back to the communities that are servedExpand the family of brandsContinuously improve performance go away a healthy, safe environment for team members, guests and customersCreate a assimilation of prideStrengthen the loyalty of constituentsHilton in recent years, have aimed to target those aged between 25 to 55, and therefore to become more likable to the younger audience. slightly of the Hilton brand hotels are franchised to independent companies.4.1 Vision cordial reception is all about the individual and at Hilton we pride ourselves on our uncommon service culture. Yes I Can Is our company-wide philosophy which promises that each guest forget be treated with a positive service attitude at every point of contact? The hotel manager, the waiter, the receptionist, the porter everyone plays a vital utilization in delivering a memorable guest experience.4.2 MissionWe provide veneration and leisure time travellers with a pick of first-class hospitality products that whirl good sparing value while reassuring good return to owners and shareholders and inspiration to employees.4.3 Values of Hilton HotelsH cordial reception The organization is passionate about delivering exceptional guest experiencesI Integrity To do the right social occasion all timeL- Lea dership To continue its leadership in the industry and likewise in its communitiesT- Team work To perform the tasks in teamsO- self-command To be the owners of the actions and decisions taken.N- Now To operate with a sense of urgency and discipline (Hilton, 2010)5. PESTEL AnalysisPESTEL analysis defines the outside(a) factors to business, depending on the market Ecological and legislative factors are included. PESTEL analysis measures the market capability by indicating the areas of growth. Political factors include legislation, international legislation, regulatory bodies, government policies, government terms and change, funding, grants and initiatives and lobby stems. The economical factors comprise domestic economy, international situations and trends, taxation issues, seasonal issues, market and care cycles, diffusion issues and former(a)s. The social factors include lifestyle trends, demographics, consumer attitudes, opinions, media views, brand, company, engineering s cience image, consumer purchasing patterns, mould and role models, competing technology development, associated and dependent technologies, replacement technology solutions, maturity of technology information and communication and others.Political Factors Considering the policy-making factors Hilton Hotels have faced many political barriers on its way to success. genius such incident is the Arab boycott of American companies. Arab countries have boycotted businesses with countries that do businesses with Israel even though the issue was not directly related to America. Most of the American companies like Ford, IBM and Hilton were blacklisted by the Arabs. Hilton Hotels act to expand its business in Israel and Egypt along with promoting peace in the region. Hilton Hotel original no threat from Israel after opening its hotel in Egypt.Economic Factors The meshwork is not severely alive to the efficient economic cycles. til now, it is observed that the tourism or hotel sales ar e dejected due to unnatural economic changes in those countries from which customers are booking and reserving the products. These changes include in economic growth, engage rates, rising prices or currency fluctuations that can eliminate tourism organization s cost advantage and can have an adverse emergence on the margins. Hilton has formed alliances with various organizations and also strategic agreements to continue its prosperity. amicable Factors Sociology changes and changes in customers attitudes towards new technology and internet in particularly ordain have absolute wallop on internet and hospitality industries respectfully. cadence customers are Thomas More experienced and innovative in the use of engineering science. The social system of rules dimension moldiness includes the larger mixer and persuasion processes through with which the interests of the dissimilar social groups interact with one other and with the technology. Hilton has figured its services suitabl e for all the sectors. It has provisions for theatres, conference live for business delegates, U-shaped bed rooms and board rooms, dinner halls social gatherings and other similar activities.technical Factors Hilton has implemented electronic marketing as part of its technology drive. The rooms booked over the web for the Hilton hotel accounts for half billion dollars. Hilton has developed its own system of technological department for managing the international operations worldwide. Hilton is among the a few(prenominal) hotels that use internet for booking rooms. Hilton has merged with various firms like Starwood for expansion and also for its technologic advantage. Hilton International use computers in their core information physical touch c reckons of selling and statistical distri plainlyion, front office, back-office, and beverages control. Information technologies are dispersing in viii key areas of hotel trading operations like selling, distribution, reservations and gro ss sales, telecommunications, guest accounting, room management, back-office, food and drinks, control energy management and safety and security. Merchandise distribution is a critically important mathematical function of Hilton International. Information technologies, such as computerized reservations systems and video brochures, aid hotels in selling and distributing their bed nights. For Hilton the physical exertion of information technologies to nexus neurotic their front office, back office and beverages departments whitethorn be essential for the businesslike and cost-effective bringing of their services. However, it aim not be decent to warranty the sales agreement of hotel bed nights without tie in to international selling and statistical distribution networks building bed nights cannot be sold.Ecological Factors Hilton New York has unveiled eco-centric initiatives as part of its two-years of celebration of generating despoil power with fuel cell technology. Hilton New Y ork has performed various leading-edge initiatives throughout the hotel. (Organic fertilizer Waste Vector Decomposition System) This system was set up to trim the 8 tons of wet rubbish which is approximately equal to 5000 meals produced on an average at the building each day. This system facilitates the employees to dispose of table and kitchen scraps into unit which is a size of chest freezer. This system eliminates to the highest point in time 400 bags of garbage per day. (Water Purification System) Hilton New York has deployed an on-site water finish system created by the Natural Water. The Natural water system is connected to the existing water source. This water system of rules has eliminated nearly 12 000 consumable glass and plastic bottles from paper routine change of location in the hotel.Legislative Factors- The hoteliers in US are about to expect lobbying and meeting action that will feeling travel companionship taxation and gameboard bank check which are importa nt issues to the lodging effect according to the American Hotel and Lodging connection. The association believes that this move will certainly deport an impact on the industry. Chris Nassetta the CEO of the Hilton Hotels has same that it is a greater adventure than people are giving it credit for. Building companionship executives fear the execution of the this statute law as they would no choice but to brand up what they consider as incomprehensible gross by levying high monetary value onto hotels.6. SWOT Analysis of Hilton HotelsHilton hotels corporation is also deducting from the event of September eleven the like all major(ip) building corporations. This tragic homo event also delivered a financially annihilating blow to the traveling industry as a unit and to the building industry in particular. In order to fully recover and thrive in the coming old age Hilton mustiness value its overall all strengths and weaknesses as it moves forward done the new millennium. The favorable grind analytic thinking sheds any easy on any of the pitfalls and opportunities that await the Hilton Hotels.StrengthsHilton Hotel Corporation is a thoroughly-established organization and industry leader in the hospitality industry.It is well diversified across the industry with hotels in the high end, business and mid-priced classes in their product mix.It also possesses solid integration features such as owning the companies that manufacture its furniture and has invested in online reservation travel enterprisesWeaknessesIt may be two narrowly foc apply making it exposed to a downturn in the global economy and other world-wide misfortunes that could limit global travel such as the bird-flu and a significant terrorist strike.It may be defenseless to workers strikes and crack down on undocumented workers in the U.S. Most of its holdings are in the U.S.OpportunitiesIt should offer a range of characteristic and good services to the high end guests and high whitecaps such as man a nd wife planning hosting, spas that specialize in personal services and personal trainers.It should visualize to expand into or purchase a canvas line.A cruise ship is little more than a hotel that floats this would essentially match what it currently doing with its leased propertiesGaming activities would spurt regulation, etc.Take advantage of uphill markets, especially with business class and mid-priced markets.ThreatsIt must be careful not overstretch its labors to mix entertaining and bettingThe delay of credit and other side effects of betting can slowly but sure chew profits.September 11th was a major blow to the hotel industry. A similar event could result in another down turn.By studying national and regional industry trends Hilton Corporation will be capable to return advantage of opportunities that will enable growth character identifying threats that may affect profitableness. Growing in the hotel and cordial reception manufacture will include a continuing foc vict imisation on sport International enlargement and exploitation all media to promote its products to potential customers. One advisable strategy for Hilton is to emphasize the grandness of family in all its hotels including the fun and gambling casino locations. Las Vegas has exhausted millions to attract families by adding childrens attractions as well spring as the conventional casinos for the adults. Most of the hotels rich person at affair a little country devoted to colonnade games. However some hotels have luxuriant arcades plot areas and child attention centers make for those traveling with children Hilton Hotels Corporation, 2007. Hilton needs to ensure they are right field in the middle of this demographic of parents traveling with children. Spell the focusing can unfeelingness be on the senior high school dollars that are tossed around in the casinos by the parents it will be critical that the edifice have the facilities usable that testament attract parents with childre n to check at the property. Since location is a greater requirement and holiday clip has become one of the few multiplications that families are capable to spend superior clip together, Hilton essential benefit on this marketplace section.7. Evaluation of the Strategic OptionsAfter analyzing the internal and external environments, it is important for Hilton Hotel Corporation to identify the strategic woofs that are available. This gives them the opportunity to take the most suitable strategic option for the corporation. The strategic options are evaluated on the following criteriaThe required resourcesThe degree to control over future strategiesThe whet with which a change in the position of SBUs can be achievedStrategic optionsEnvironmentCompetenciesExpectation of the companyRisk involvedMarket keennessGain market share for advantagesSuperior resources and skill force to dupe this optionIncrease return by using the current strategies minor adventureMarket DevelopmentCurrent market is saturated, opportunity to enter new segment, new geographical areasCurrent product portfolio can be used.Increase return by using the current strategies culture medium riskDemographic SegmentationFocus on age and low income group to get competitive advantageSkilled force to adopt this option using current product portfolioIncrease return by using the current strategiesHigh risk receding(prenominal) IntegrationBecome a furniture manufacturerSkilled force to adopt this option with new product lineIncrease return developing new strategiesMedium riskJoint ventureObtain local management to turn off riskDistinctive skilled force with new and existing productIncrease return developing new strategiesLow riskRecommendations and apology for Strategic OptionsAfter an internal and external analysis of Hilton Hotel Corporation and rating of the strategic options the following growth strategies for the company are recommended.Market incursionAcquisition of motelsMarket developmentExc ursionistsDemographic segmentationBackpackers18-28 years, no children. Attracted to adventuresome activity, consider themselves travellers not tourists, generally well-educated and cost conscious.Empty NestersParents whose children have flown the family nest, between 43 and 58 of age, well-educated and medium disposable income. retrospective IntegrationDistribution of furniture manufacturerJoint Venture working out of businesses other than the western worldStrategiesAttractivenessCompany strengthsLevel of widenessMarket Penetration(Acquisition of motels)Very highHighly recognized brand name in the western worldHighCompany doesnt have motels in US and UK Market DevelopmentObtain the market of(Excursionists )Very highHighly recognized brand name in the western worldVery highdemographic segmentation(Backpackers and (Empty Nesters)HighHighly recognized brand name in the western worldhighBackward Integration(Supplier of furniture)ModerateHighly recognized brand name in the western worl dLowJoint Venture(Acquire some assets in Pakistan)ModerateHighly recognized brand name in the western worldModerateConclusionMarketing is the lifeblood for any business organization which can be defined as the collection and coordination of interrelated activities. The degree and the impact of marketing planning determines the success or failure of a business organization as they help in the analyzing the markets and also the needs of the customers. The founder of Hilton hotels is the Conrad Hilton which was renamed as Capital Hilton in the year 1977. Many noteworthy guests have considered Hilton group of hotels as home away from home which was brandmark for customer service and hospitality. Hilton group of hotels have been affected by the political controversies in the Middle East but it didnt confine its growth in the region. The organization went on to open its hotels in Egypt and Israel amidst controversies and also promoted peace in the process. Apart from political and legis lative factors remaining of the PESTEL factor didnt affect the Hilton hotels business across the world. The marketing planning lived up to the expectations of the expectations of the Hilton Hotels. The marketing approach used by Hilton is geocentric to a great extent. The hotel chains in the US failed to attract the guests at the beginning of 2002 vacation season later they managed to end the figures. Therefore it can be concluded that the Hilton group of hotels is performing to standards of its reputation but there is plenty scope for the American based organization to develop further.ReferencesCathy A. Enz, Hospitality Strategic Management Concepts and Cases 2nd varianceStephen P. Robbins, Mary Coulter, Principles of Management 10th EditionPhilip Kotler, John T. Bowen, James C. Makens, Marketing for Hospitality and Tourism 5th EditionGerry Johnson, Kevan Scholes, Exploring Corporate Strategy 6th EditionJohnson G, Scholes K, Whittington R., 2008, Exploring Corporate Strategy, 8th Edition, FT Prentice Hall, Essex.