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Hyatt Corporate Brand Study:
An Analytical Look at the Strategic Management of the Hyatt Brand
By:
Marina Kovalenko
Sapna Mangal
HMI 407
03/13/2013
Table of Contents
Abstract 2
Vision, Mission, and Values 3
Internal Analysis 4 Resource Based: 4 Value Chain Model: 6 Generic Building Blocks: 6
External Analysis 8 Five Force Model: 8 Macro Environmental Forces: 8
Competition and Industry Analysis 10 Life Cycle: 10 Industry Structure: 10
SWOT Analysis 11 Strengths: 11 Weakness: 11 Opportunity: 12 Threats: 12
Functional Level Strategies 13
Business Level Strategies 13 Competitive Positioning: 13 Customer Needs: 14
Corporate Level Strategies 15 Vertical/Horizon Strategies: 15
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Alzheimer sufferers in the skilled nursing units. This program in now accommodating almost 5000 senior citizens where the residents can receive Hyatt’s hospitality expertise and special privileges (Tran Kim Thuyen, 2009). The CCRC projects set an example of the industry and displayed innovation, social responsibly, and leadership. Other departments in which Hyatt emphasizes leadership are human resources and the management style that is practices on a global scare. Hyatt is proud to encourage, coach, and nurture employees via empowerment. “...Future leaders need to listen, have clarity of purpose, and be authentic”, Mark Hoplamazian, the CEO of Hyatt Hotels, tells Wharton Magazine, “One key essential element in being in a position to lead is being a great listener, and applying yourself to it in a very sincere way” (Wharton, 2012). Hyatt continues to listen to both employees and guests, as they target new market segments. As of March 2013, Hyatt has launched the Hyatt Has It campaign. Focusing on the needs of lone, female travelers Hyatt has identified a new market segment and has tailored to the needs of women based on years of feedback and research. There is no better, more customized experience for women than the one that Hyatt offers, thanks to the Hyatt Has It campaign (Hyatt, Hyatt Has It, 2013).
Value Chain Model:
The Hyatt value chain begins with the associates. As previously stated, the Hyatt brand has a unique
Orange Kingdom is a clothing retail store owned by Between, Inc. It is differentiated from its family brands such as Between and Old Marine, as it gives an upscale image compared to the other two brands, and targets young professional population aged mid twenties to mid thirties both men and women. It provides mid-scale work-to-play casual and business apparel, accessories, and shoes through about 500 stores including factory stores in the United States. It is also gaining market share in Asia, South America, and Europe as well. In this marketing proposal, I would like to discuss three service options to retain and acquire customers.
In Phase 1, pre-training, Campbell’s CEO Institute teaches participants about leadership, formulating ideas and experiences and take time to reflect on what they have learned and apply it to all aspects of their lives. As the CEO, Conant was a motivator, “Doug is personally involved in all aspects—developing content, teaching, communicating with class members, and sharing lessons from his more than 30 years in business…….He’s all in. An active instructor, he’s fully present during the entire two-year journey” (Reardon, 2011). The program is developed internally which helps employees can build on their skills. The Institute accepts 20-24 participants per year and they must be nominated by their unit president or functional leader (Newell, 2011).
For over a hundred years, the H. E. Butt Grocery Company stores have provided people in Texas and Mexico with superior products and service. Headquartered in San Antonio, Texas, H-E-B was the 11th largest grocery chain in the United States. Florence Butt founded the company in 1905 with a $60 investment. A few generations later and four failures later, Charles Butt became president of the company in 1971 and took the family name to a higher level.
• What is the cost of capital for Marriott’s as a whole at the prevailing capital structure vs. at the target capital structure.
Q1. For this case, involving some exploratory research, Exhibit 12a and 12b show the segmentation and descriptor variables used to collect data for the segmentation analysis. Comment on the appropriateness and comprehensiveness of these attributes. What would your team change in this questionnaire and what other segmentation and descriptor questions would you recommend to ask to respondents for a better segmentation and targeting strategy?
Hyatt’s value statement is “to adhere to a set of core values such as, mutual respect, intellectual honesty and integrity, humility, fun, creativity, and innovation to characterize the culture of the company” (Hyatt, 2013). Hyatt provides its consumers with an intangible good, which is customer service. Hyatt values it personnel as an essential factor in achieving its strategic plan of authentic hospitality. Hyatt’s successful approach to empowering its personnel is its “thoughtful approach to growth” and furthermore, emphasizes its strategy. (Hyatt, 2013).
This team will support all of HHC's core businesses and work closely with hotel ownership and management groups to achieve its stated goals.
Discuss what is meant by the term “customer orientation”. Illustrate with examples how companies demonstrate their customer orientation by reference to at least two elements of the marketing mix.
Marriott decided to enhance travelers’ value by segmenting the market and then targeting selected segments, each with a different brand. Then as now, Marriott was the flagship brand. Each new brand would support Marriott’s overall brand identity — a commitment to superior customer service — and train employees to have a passion for service.
The case study Preserve the Luxury or Extend the Brand presents a fictional dilemma, based on a real company, faced by Chateau de Vallois, a prestigious and famous wine-producing estate in the Bordeaux region of France. De Vallois is a family owned and run business; part owners are Gaspard de Sauveterre - a 75-year old majority owner, and equal partial owners: Francois de Sauveterre – Gaspard’s son and the chateau’s CEO , and Claire de Valhubert – Garspard’s granddaughter. De Vallois had fallen into a slow decline under its previous owner, but Gaspard along with Jean-Paul Oudineaux, his estate manager, had restored the chateau and since then de Vallois had been steadily profitable
There are several organizations that have competitive advantages in the industry. However, one familiar organization that has maintained its competitive advantage in its industry is the Ritz-Carlton hotel. Founded in 1983 and headquartered in Chevy Chase, Maryland, United States of America, Ritz-Carlton is regarded as one of the best in the hotel industry and has received several accolades for great customer services (Ritz-Carlton Hotels & Resorts, n.d.). Nevertheless, to fully understand its competitive advantage in the industry, it is essential to analyze its modus operandi. The Ritz-Carlton hotel management understands the value of employees; so ultimately investing in
Hilton Hotels is one of the biggest players in the hospitality industry with over 2900 (as of September 2007) hotels worldwide consisting of numerous brands and products. The hospitality industry is service centered and highly competitive. The challenge for Hilton is to create and deliver value better than its competitors. Hilton understand that it is important to improve customer experience and build strong relationships with the customers. Hilton Hotels adopted a Customer Really Matter (CRM) strategy out of necessity to cater for
Since an increasing number of people focus on brand names instead of product, brands become important elements for customers to choose products (Carroll, 2008). When customers trust the brand, the benefits for the manufactures are generated. In the first place, brands can be used by products as the tool to identify and differentiate themselves from various products. Secondly, brands are helpful for companies to build a competitive advantage (Bick, 2009). Therefore, organisations take more attention to branding.
Within the luxury tier, many of the players do not actually own the hotels themselves, but instead manage the operation of the business, similar to that of FSH. In the luxury segment, competition for acquiring new management agreements becomes very high as hotel owners make their choices based on the quality and value of a company's management service and most importantly, its brand name. Moreover, guests who choose to stay in luxury hotels are commonly not very price sensitive, and thus it is essential that a hotel distinguish itself amongst its competition by providing value added services as well as maintaining an untarnished, reputable brand name and image.
The main objective of the company is not only to attract but also to retain staff who are interested to work in the hotel business for the five-star level of high service, taking into account the wishes of clients, and which offers an innovative, dynamic environment and reflects the culture of the local country. To achieve this, Hyatt strives to be a company listening to well-informed and concerned people. Hyatt provides plenty of opportunities at all levels for their employees, which are accompanied by numerous development