Hotel chain: Imperial London Hotel Assignment Sample

Strategic Analysis of Imperial London Hotel

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Introduction Of Hotel chain: Imperial London Hotel Assignment

The Imperial London Hotel has an incredible history that dates back two centuries to its origin as the Bedford Hotel in Bloomsbury. In 1904, the well-known architect Charles Fitzroy Doll intended the innovative Imperial Hotel (Imperial London Hotel, 2023). The hotel offers an inclusive range of services and facilities to cater to the requirements of its guests. From luxurious visitor rooms and suites to fine dine restaurants, conference and event amenities, spa and wellness services, and adapted gatekeeper services, the company strives to make sure a remarkable stay for its company (Popova, et. al. 2020). The company stands as a symbol of heritage, luxury, and hospitality, inviting guests to indulge in its historical consequence while enjoying the contemporary comforts and services it offer.

This report presents an inclusive analysis of the Imperial London Hotel, focus on its internal strengths and weaknesses and also the external opportunities and threats it faces. The report make use of two strategic analysis frameworks, openly SWOT and PESTLE analysis, to offer a holistic appreciative of the hotel's current position and possible challenge and opportunities in its functioning environment. By analyzing these factors, the report will expose potential opportunity that the hotel can influence and highlight potential threats that might pose challenges to its achievement (Laothamatas, 2019). Through a complete examination of the company’s internal strengths and weaknesses, and also the external opportunities and threats, this report aim to offer valuable insights and strategic recommendations for the hotel's administration. By understanding the present operating environment and its implication, the hotel can expand strategies to take advantage of on its strengths, address its weaknesses, grab opportunities and alleviate potential threats, eventually positioning itself for sustained achievement in the dynamic hospitality industry.

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 Imperial London Hotel

Figure : Imperial London Hotel

Source: Tripadvisor

Business Organisational purposes

Organizational Purpose

The organizational rationale of the company refers to the motivation for its survival further than simply generating profits. It encompasses the broader impact and contribution to the hotel aim to make it suitable for the hospitality industry and the area it serves.

Mission

The mission of the company outlines its primary purpose and what it seeks to accomplish on a day-to-day foundation (Sheth, 2020). It reflects the core activities and principles that force the hotel's operations and direct its decision-making process.

Vision

The vision of the case company represents its long-term aspiration and preferred future state. It describes the ideal position the hotel strive to attain, provide a sense of way and motivation for its expansion and development.

Key aspects of purpose

The company aims to create astonishing experiences for its guests by providing exceptional service, consideration to detail, and modified care. The hotel focuses on offering stylish and luxurious accommodations, ensure that guests feel pamper and contented during their stay. The case company cherishes its historical meaning and aims to protect and showcase its heritage, allow guests to submerge themselves in the hotel's unique inheritance (Seetharaman, 2020). The company recognizes its role within the broader community and strives to actively connect and contribute through a variety of initiatives and partnerships.

Major Objectives

Ensuring the maximum level of guest fulfilment is a primary object of the company. This includes providing excellent service; maintain clean and comfortable accommodations, and rapidly addressing any guest concerns. As a business, the hotel seeks to generate sustainable revenue development by attracting new guests, cheering repeat visits, and maximize revenue streams through effectual pricing strategies and promotional activities (Di Vaio, et. al. 2020). The hotel aims for operational excellence by continuously improving its processes, streamlining effectiveness, and investing in staff training and development to deliver faultless guest experiences (Harris, et. al. 2019). The hotel is dedicated to minimize its environmental impact by implement sustainable practices, such as waste reduction, energy conservation, and responsible sourcing, to add to a more sustainable future. By align its objectives with its purpose, mission, and vision; the company’s aims to create unforgettable guest knowledge, keep up its position as a premier luxury hotel, and contribute completely to the hospitality industry and the community it serve.

Organisational Structure

A hierarchical organizational structure, also recognized as a tall structure, is a traditional form of association where influence and decision-making power pour from the top down through numerous levels of management. In this structure, each stage has a clear chain of authority and precise roles and responsibilities. Based on the obtainable information and allowing for the typical organizational structures in the hospitality industry.

Hierarchical structure

Figure : Hierarchical structure

Benefits:

  • Clear reporting and communication: A hierarchical structure provides an obvious chain of command, with definite reporting relationships (Joseph and Gaba, 2020). This facilitates well-organized communication, as workers know whom to report to and take delivery of instructions from.
  • Specialization and expertise: Each level of the hierarchy in a tall structure characteristically represents a particular area of accountability. This allows workers to focus on their exact roles and build up expertise in their personal areas.
  • Centralized control: With decision-making concerted at the higher levels of management, a structure enables central control, which can make sure constancy in policies, events, and service standards (Wetherly and Otter, 2018).
  • Career advancement opportunities: the structure often provides clear career progression paths, allowing employees to development through the ranks and take on high-level roles as they gain knowledge and show competence (Martínez-Caro, et. al. 2020).

Drawbacks:

  • Slow decision-making: In this structure, decision-making influence is determined at the top, leading to slower decision-making process as decisions require to be approved down through multiple levels.
  • Limited independence: Lower-level workers in a hierarchical structure may have limited executive authority, as main decisions are made by high-level managers. This can hold back creativity, innovation, and worker empowerment.
  • Communication barriers: With multiple levels and layers of organization, there is a latent for communication barriers and information bend as messages pass through various channels.
  • Lack of flexibility: A hierarchical structure can be less flexible and receptive to rapid changes in the business environment or client demands (Parker, 2020). The requirement for approvals and clearances at diverse levels can slow down the organization's capability to adapt.

It's significant to note that the definite organizational structure of the Imperial case company might vary or have evolved since the information obtainable is limited. Organizational structures can be influenced by factors such as the hotel's size, strategic objectives, ownership structure, and management philosophy.

To overcome some of the drawbacks of a tall structure, the case company could reflect on adopting fundamentals of a flatter structure, such as empower lower-level employees, promote decentralized decision-making, and development open communication channels (Tran, 2021). An arrangement of hierarchical and flat structures, often referred to as a hybrid structure, could assist hit a balance connecting clear reporting lines and agility in decision-making.

Organisational functions

Organizational function refers to the dedicated areas or departments within an association that perform precise tasks and behaviour to contribute to the overall performance and accomplishment of the organization. These functions are often interdependent and work collaboratively to accomplish the organization's objectives.

In the case of the Imperial London Hotel, three core functions can be recognized:

Operations function: this function of the company encompasses the everyday activities and process concerned in delivering hospitality services (Roscoe, et. al. 2019). This includes managing guest reservations, front desk operation, maintenance, food and beverage services, event planning, and amenities management. The operations function ensures that the hotel runs efficiently and professionally, providing excellent service to guests.

These are inter-reliant and collaborate to bring a seamless guest familiarity (Cox, 2021). The operations group ensures that the hotel's services and facilities gather or exceed guest prospect, while the marketing and sales team promotes these contributions to attract guests. Effective communication and harmonization between these functions are critical to make sure that the hotel delivers on its promises and meets guest requirements

Marketing and sales function: this function focuses on promoting the company’s services and attracting guests. It involve developing marketing strategies, conduct market research, managing advertising and promotional campaigns, maintain the hotel's online existence, and building relationships with tour agencies and business clients (Benzaghta, et. al. 2021). This plays a very important role in attracting and retains clientele, increasing tenancy rates, and generates revenue for the hotel.

These functions also interact to hold the hotel's overall achievement. The marketing and sales team relies on the HR function to recruit and keep talented individuals who can give to the hotel's achievement (Dalirazar and Sabzi, 2023). In addition, HR plays a role in align the organization's values, culture, and employer branding with the marketing efforts to attract forthcoming employees who reverberate with the hotel's brand image.

Human resources function: this function is accountable for managing the hotel's personnel. This includes recruiting and hires staff, as long as training and development programs, managing worker relations, administer compensation and benefits, ensuring compliance with labour laws and regulations, and nurturing a positive work culture. The HR function plays a vital role in attracting and retaining talented workers, enhancing employee engagement and fulfilment, and maintaining skilled and motivated workers.

This work strongly together to run the hotel's workforce. The HR function workers, trains, and develop staff to make sure they have the essential skills and knowledge to carry out their operational duties efficiently (Dutta, Saurabh Kumar and Kleiner Brian, 2015). The operations team, in turn, relies on the HR function to offer them with capable and engaged workers. In addition, the operations function collaborates with HR to make sure suitable staffing levels, run scheduling, and address employee-related issues to continue operational competence.

Organisational culture

An organization's culture is defined as the common assumptions, standards, attitudes, conventions and behaviours that influence how its members communicate, collaborate, and think (Sangeeta and Bansal, 2021). It symbolises the organization's group identity and personality and has an impact on the attitudes and actions of its staff.

Over time, culture changes due to a variety of circumstances, such as:

  • Founders and leadership: The founders and leaders of the organisation play a critical role in establishing the early culture through their views, values and behaviours. Their mission, guiding values, and deeds have an impact on the culture that develops within the company.
  • Socialisation and employee on boarding: New hires go through a socialisation and on boarding process when they join a company. During this time, they learn and internalise the company's values, conventions and anticipated behaviours. The culture is developed and maintained as a result of this process.
  • Shared experiences: The creation of a group identity and the reinforcement of certain cultural values and norms occur as a result of shared experiences inside the organisation, including successful projects, difficulties, and milestones (Orji, 2019).
  • Organisational structure and practises: An organization's culture is influenced by its structure, policies, and practises (Hamilton and Webster, 2018). For instance, a more hierarchical structure could generate a culture of top-down control, whereas a decentralised decision-making structure may develop an attitude of empowerment and autonomy.

Four types of organizational culture:

  • Clan Culture: A welcoming, cooperative, and familial-like attitude defines clan culture. Teamwork, staff participation, and coherence are all highly valued. By encouraging a positive work atmosphere and respecting cooperation and teamwork among its personnel, the Imperial London Hotel may promote a clan culture.
  • Adhocracy Culture: This culture places a strong emphasis on creativity, invention, and adaptation (Shaturaev and Bekimbetova, 2021). This type of culture fosters innovation, risk-taking, and an entrepreneurial spirit. By encouraging creativity in guest services, looking into new economic options, and being open to fresh ideas, the hotel may foster an adhocracy culture.
  • Market Culture: The market culture emphasises competition, success, and outcomes. Performance, achieving goals, and customer happiness are prioritised in organisations with this culture. By establishing high standards of service quality, focusing on revenue development, and placing a high value on customer pleasure, The Imperial London Hotel could embrace a market culture.
  • Hierarchical Culture: Formal structures, distinct responsibilities and established regulations define hierarchical cultures. This type of culture places a high importance on efficiency, control, and consistency (Widjaja, et. al. 2020). Through well defined reporting lines, standardised operating processes, and an emphasis on operational efficiency, the hotel may display a hierarchical culture.

Company’s organisational culture has a big influence on its performance in a number of ways including higher efficiency, decreased employee turnover, and better customer service may all be a result of an encouraging and supportive culture (Clegg, et.al 2019). A motivated and committed workforce might be a result of an organisational culture that appreciates and supports its personnel. The corporate culture affects how staff members engage with customers and provide service. An Imperial London Hotel can stimulate innovation, provide great service, create a happy work environment, and strengthen its brand by building a culture that is consistent with its business goals and values.

SWOT Analysis

Strength Weaknesses
  • Established reputation: the company has a rich past and a strong status in the hospitality industry. This can offer a competitive advantage and help build trust and faithfulness among visitors, especially during demanding times.
  • Central location: Being situated in the heart of London, the hotel benefits from a major location that attract both trade and free time travellers. This can add to a stable flow of guests and revenue even during indecisive times.
  • Dependency on tourism: company’s business is greatly reliant on tourism, making it susceptible to fluctuations in travel patterns and limitations obligatory during crises such as the Covid-19 pandemic.
  • High operating costs: As a luxury hotel, the Hotel may have superior operating costs compare to budget or mid-range hotels (Van Pham, et. al. 2020). This can put force on productivity during periods of financial unsteadiness or inflation.
  • Limited Agility: company’s hierarchical organizational structure and formal processes may hinder its capability to speedily adapt to changing situation or put into practice innovative solutions.
Opportunities Threats
  • Domestic tourism: During times of political unsteadiness or travel restrictions, there may be an amplified focus on domestic tourism. The hotel can take advantage of on this opportunity by targeting local travellers and offering attractive packages and experiences.
  • Corporate events and conferences: the hotel can aim the corporate sector by attracting business conferences, meetings, and other events (Teoli, et. al. 2019). This can offer a steady source of revenue and decrease dependence on leisure travellers.
  • Sustainability initiatives: Increasing consumer consciousness and preference for sustainable practices present an opportunity for the company to implement eco-friendly measures, such as waste reduction, energy conservation, and responsible sourcing. This can application to environmentally aware guests and enhances the hotel's brand image.
  • Economic downturn: Economic unsteadiness, inflation, and recessions can lead to reduced customer spending, impacting the hotel's tenancy rates and revenue. This threat can be mainly relevant during times of political unsteadiness or global economic downturns.
  • Increased competition: The hospitality industry is extremely competitive, and company may face intensify competition from both recognized and new market entrants. This can potentially impact market share and pricing authority (Simões, 2020).
  • Health and safety concerns: The continuing Covid-19 pandemic and prospect health crises can pose an important threat to the hotel industry. Reduced demand, travel restrictions, and increased health and safety requirements can have an effect on operations and revenue.

PESTLE Analysis

Political Factors:

Favourable: A steady political environment in the UK provides a favourable state for the company’s operations. It ensures regulatory stability and a predictable business environment.

Unfavourable: periods of political unsteadiness, such as government changes or policy shifts, can disrupt the business surroundings and impact the hotel's operations, particularly in terms of regulatory changes or uncertainties.

Economic Factors:

Favourable: A strong economy with high customer confidence and spending power positively influence the hotel industry, as populace are more likely to travel and expend on luxury accommodations.

Unfavourable: Economic downturns, recession, or fluctuations in exchange rates can affect customer expenditure and travel patterns, leading to condensed occupancy rates and revenue for the hotel (Ward and Shortt, 2020).

Social Factors:

Favourable: social trends, such as an augmented importance on wellness tourism, experiential travel, and unique experiences, can present opportunity for the company to provide to changing customer demands.

Unfavourable: Any negative social perception or reputational issues connected to the hotel industry, such as concern over sustainability or principled practices, can impact the hotel's brand illustration and customer trust.

Technological Factors:

Favourable: Technological advancement can enhance operational competence, improve guest experiences, and offer opportunities for innovative services, such as mobile check-in, online booking platforms, or personalized guest interactions (Allen, et. al. 2021).

Unfavourable: As technology becomes more and more integral to hotel operations, cyber security threats and data breach pose a significant risk to the hotel's reputation, consumer privacy, and overall operations.

Legal Factors:

Favourable: Favourable legal regulations connected to the hospitality industry, such as employment laws, tax incentives, and safety regulations, can construct a supportive business environment for the company (Allen, Kraakman and Khanna, 2021).

Unfavourable: fulfilment with legal requirements, such as permits, licensing, and health and safety regulations, can oblige additional costs and managerial burdens on the hotel's operations.

Environmental Factors:

Favourable: growing awareness and demand for eco-friendly practice and sustainable tourism provide an opportunity for the company to adopt environmentally friendly initiatives and attract environmentally aware guests (Baron, 2012).

Unfavourable: The impacts of climate change, such as great weather events, increasing sea levels, or natural disasters, can preteen’s risks to the hotel's physical communications and operations, particularly if it is located in susceptible areas.

It is significant for the Imperial London Hotel to intimately monitor and adapt to these political, social, economic, technological, legal, and environmental factors (Ward and Shortt, 2020). By staying conscious of the opportunities and threats they present, the hotel can develop strategies to take advantage of on favourable conditions and alleviate any adverse effects.

Conclusion

The report is concluded with hotel's strengths which lie in its central location, established reputation, and diversified service offerings, which offer a competitive advantage in the industry. Though, the organization is susceptible to weaknesses such as a high operating costs, grave reliance on tourism, and limited dexterity in decision-making. The analysis also highlights a variety of opportunities for the hotel, including attracting corporate events, targeting domestic tourism, and implement sustainability initiatives. These opportunities can assist the organization find the way through challenging times, such as economic downturns, political instability, and environmental concerns.

The hotel also faces threats such as increased competition, economic fluctuations, and health and safety concern. It is significant for the organization to proactively address these threats and alleviate their impact through effectual strategies. The case company can influence its strengths, use opportunities, and address weaknesses and threats to uphold its success and find the way through the evolving business scenery. By adapting to changing customer preference, embracing innovation and sustainability, and staying receptive to external factors, the hotel can place itself as a leading player in the hospitality industry.

References

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Cox, J., 2021. The higher education environment driving academic library strategy: A political, economic, social and technological (PEST) analysis. The Journal of Academic Librarianship, 47(1), p.102219.

Dalirazar, S. and Sabzi, Z., 2023. Strategic analysis of barriers and solutions to development of sustainable buildings using PESTLE technique. International Journal of Construction Management, 23(1), pp.167-181.

Di Vaio, A., Palladino, R., Hassan, R. and Escobar, O., 2020. Artificial intelligence and business models in the sustainable development goals perspective: A systematic literature review. Journal of Business Research, 121, pp.283-314.

Harris, J.A., Mihalas, S., Hirokawa, K.E., Whitesell, J.D., Choi, H., Bernard, A., Bohn, P., Caldejon, S., Casal, L., Cho, A. and Feiner, A., 2019. Hierarchical organization of cortical and thalamic connectivity. Nature, 575(7781), pp.195-202.

Joseph, J. and Gaba, V., 2020. Organizational structure, information processing, and decision-making: A retrospective and road map for research. Academy of Management Annals, 14(1), pp.267-302.

Laothamatas, A., 2019. Business associations and the new political economy of Thailand: From bureaucratic polity to liberal corporatism. Routledge.

Martínez-Caro, E., Cegarra-Navarro, J.G. and Alfonso-Ruiz, F.J., 2020. Digital technologies and firm performance: The role of digital organisational culture. Technological Forecasting and Social Change, 154, p.119962.

Orji, C.I., 2019. Digital business transformation: towards an integrated capability framework for digitization and business value generation. Journal of Global Business and Technology, 15(1), pp.47-57.

Parker, L.D., 2020. The COVID-19 office in transition: cost, efficiency and the social responsibility business case. Accounting, Auditing & Accountability Journal, 33(8), pp.1943-1967.

Popova, N., Kataiev, A., Nevertii, A., Kryvoruchko, O. and Skrynkovskyi, R., 2020. Marketing aspects of innovative development of business organizations in the sphere of production, trade, transport, and logistics in VUCA conditions. Studies of Applied Economics, 38(4).

Roscoe, S., Subramanian, N., Jabbour, C.J. and Chong, T., 2019. Green human resource management and the enablers of green organisational culture: Enhancing a firm's environmental performance for sustainable development. Business Strategy and the Environment, 28(5), pp.737-749.

Seetharaman, P., 2020. Business models shifts: Impact of Covid-19. International Journal of Information Management, 54, p.102173.

Shaturaev, J. and Bekimbetova, G., 2021. Transformation of business efficiency with the lean management. Deutsche Internationale Zeitschrift für zeitgenössische Wissenschaft, (22), pp.71-73.

Sheth, J., 2020. Business of business is more than business: Managing during the Covid crisis. Industrial Marketing Management, 88, pp.261-264.

Simões, E.N., 2020. A decision support system application module-for PESTLE analysis-competitive intelligence algorithm (Doctoral dissertation).

Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.

Tran, Q.H., 2021. Organisational culture, leadership behaviour and job satisfaction in the Vietnam context. International Journal of Organizational Analysis, 29(1), pp.136-154.

Tripadvisor. Imperial London Hotel. [Online]. [Available on]. :<https://www.tripadvisor.in/Hotel_Review-g186338-d193635-Reviews-Imperial_Hotel-London_England.html#/media/193635/?albumid=101&type=0&category=101>. [Assessed on 25/05/2023].

Van Pham, H., Nguyen, H.X. and Huy, D.T.N., 2020. Impact of corporate entrepreneurship and organizational culture on business performance: The role of supply chain management. Int. J Sup. Chain. Mgt Vol, 9(3), p.1072.

Widjaja, B., Sumintapura, I. and Yani, A., 2020. Exploring the triangular relationship among information and communication technology, business innovation and organizational performance. Management Science Letters, 10(1), pp.163-174.

Bibliography

Allen, W.T., Kraakman, R. and Khanna, V.S., 2021. Commentaries and cases on the law of business organization. Aspen Publishing.

Ward, J. and Shortt, H. eds., 2020. Using arts-based research methods: Creative approaches for researching business, organisation and humanities. Springer Nature.

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