BUS 211: Strategic Management

Task 3:

Strategic Management Report

Allied Hotel

Submission date: 28/05/10

Word count: 1667

Executive summary

For the period 2004-2008, the Australian hotel industry growth rate was 9.5% and represents in 2008 $12.1 billion. The domestic segment dominates the industry and constituted 63.8% in 2008.

The identification of trends and changing occurring in the hotel industry environment is made through the analysis of the four components of PEST: Political, Economic, Socio-cultural and Technological. These aspects of the environment can affect negatively or positively the hotel industry. The five driving forces of Porter’s model also contribute to the analysis of the hotel industry in highlighting the most powerful force, rivalry, which affects the hotel studied, Allied Hotel, and determine if the hotel industry is attractive. The SWOT analysis underlines that the company does not have a real strategic management plan and that some opportunities, if taken, in the industry make the future look quite good.

The hotel industry being a quite competitive market with a lot of businesses, a competitive advantage is necessary through several approaches such as technology which play an important role in the customers’ choice. Also, hotels need to be different to competitors in order to attract tourists. That is why Allied Hotel needs to have a real strategic management plan in order to gain a competitive advantage. The management of the staff is really important as well as innovation in this industry.

Some critical issues that could have an important impact on the company have been identified. The staff is a difficult company’s component to manage because its cost is important but employees have an important contribution in the service delivered to the customers. Human resources should be well manage and provide training, give responsibility to the staff in order to create a quality work