The Organization’s Resources
The interworking’s of a large corporation such as the Intercontinental Hotel Group (IHG) requires careful examination to ensure the company can obtain and sustain success within the industry. Throughout the internal environment analysis, the report will provide insight one the resources, capabilities, core competencies, and competitive advantages being deployed by IHG. According to the 2015 IHG annual report, “IHG brands primarily use a franchise based business model, where the hotel group manages hotels on behalf of the hotel owners” (InterContinental Hotels Group, 2016, p.12). In addition, the business strategy allows for an asset light strategy, where IHG can help the hotel owners generate higher returns on their invested capital.
The ability to provide a system where the owners of the IHG branded hotel can achieve higher returns on investment enables the investors to have increased confidence providing financing. However, the strategy benefits IHG by reducing the risk on their side, while also freeing the hotel group to reinvest their saving into the company. IHG generated 90% of their operating profits from the asset light strategy, which is great considering the hotel group only has seven owned or leased hotels in their system (InterContinental Hotels Group, 2016, p.13). While the business strategy deployed by IHG is a great competitive advantage and resource for the hotel group, they do offer some great benefits to their
For instance, in the hospitality industry, the Hilton brand symbolises high-end properties, elevated quality of service and a unique guest experience. Brand name and brand image are essentially two factors that differentiate companies which operate in the same industry and market. Therefore, the brand name must be unique. Hotel companies like the Hilton have established strong national brands and seek to use them globally with an intention of increasing profits. Once its established as a global brand, the company has successfully created an international image that can lead to increased efficiency through branded marketing efforts and cost savings on a much larger scale. Nowadays with an increase in international travel, the competition among international hotel corporations is becoming a lot more competetive. Those tourists that travel to foreign countries tend to stay in one of the known hotel brands and their standardised quality of service. Hotel chains are motivated to maintain a high rate of global expansion as a key marketing strategy of creating brand loyalty (King,
Marriott is renowned for its elegant and comfortable hotels and resorts. The company caters to a targeted customer base, ranging from the frequent corporate business traveler to the family enjoying their occasional weekend get-away. Marriott has continued its rise in the lodging, contract services, and restaurant industries. The company continuously strives to meet the needs and wants of its customers while strategically maneuvering the rigors of today’s competitive and ever-evolving market of glamorous destinations and convenient services. In order to remain relevant in a highly-competitive environment, Marriott must strike that successful balance of minimizing costs, and gaining and effectively
InterContinental Hotel Group is a hotel company with over 350,000 employees working in 100 countries. It has over 5,000 hotels globally. One of IHG’s brand is the Holiday Inn, the Holiday Inn’s international headquarters are in Americas, Europe and Australasia. In London, UK, there are 72 hotels with the Holiday Inn or Holiday express brand. The InterContinental Hotel Groups structures their business into sections depending on what the hotel’s aims are. For example, the Holiday Inn Resort is abroad with outdoor swimming pools, it’s a very holiday place when you can spend 1-2 weeks there where the Holiday Inn is a place to stay over for one night or even the weekend. These two hotels have the same brand but different aims.
As we discussed in class, every business is faced with these issues and they are important to managers making strategic decisions. One of the first things learned about business is that if there is no demand for a good or service, the firm that provides it will not continue to exist. Over time the hotel industry has continued to change with market conditions and make itself attractive to business
The hotel chain, Astor Lodge and Suites, Inc., operates 250 properties in 10 western and Rocky Mountain states. The company’s customer base primarily comprises business travelers. In addition, the locations of the properties surround airports, large regional shopping centers, and major highways close to suburban industrial sites as well as office complexes. Projections of 2005 fiscal year forecast a fifth consecutive year of a gross loss for the firm. The estimates include an anticipated $422.6 million in company lodging revenues but a net loss of $15.7 million for 2005. As a result, Joseph James, president and CEO of Astor Lodge and Suites, Inc., initiated a challenging goal for executive management to devise a strategy achieving net profits in two years and sustaining positive growth in the future.
Since its foundation in 1927 Marriott Corporation grew into one of the leading lodging and food services in the US. With three major business lines: lodging, contract services and related business, Marriott has the intention to remain a premier growth company. To achieve this goal the corporation’s strategy is to develop aggressively appropriate opportunities within their business lines. Marriott would like to be the preferred employer, the preferred provider and the most profitable company in each of the operating areas. The financial strategy includes four key elements:
• What is the cost of capital for Marriott’s as a whole at the prevailing capital structure vs. at the target capital structure.
Delicate consideration of factors pertaining to the internal and external environment, are a necessity in executing Hyatt’s ultimate goal of “being the preferred brand”. Internal and external environments are factors that may be within or beyond the control of the firm. Theses factors influence the direction, action, structure, and internal process of an organization. The operating, industry, and remote environments are sub-environments that are associated to a firm’s environment (Pearce and Robinson, 2013). Its associates, guests, and owners through its presence in each community it is located in impact Hyatt’s environments.
This team will support all of HHC's core businesses and work closely with hotel ownership and management groups to achieve its stated goals.
Maverick Lodging is a hotel management company that manages the day-to-day operations of third party franchisees of the Marriott Corporation. The company has recently implemented a balanced scorecard in an effort to align company strategy, structure, performance measurements, and incentives. The organization strategy involves growth in revenue and customer base with the use of differentiation. Issues with the current scorecard and its measures have been identified. Alternative solutions have been researched. A recommended course of action is presented that will allow Maverick Lodging to achieve its strategic goals and objectives.
Marriott International envisions itself to be the world’s lodging leader. Its mission is to provide the best possible lodging services experience to customers who vary in backgrounds, language, tradition, religion and cultures all around the world. Marriot is committed to environmental preservation through using environment-friendly technology and engages in social responsibility and community engagement. We value our shareholder’s so we will only take steps that will ensure our growth. Most importantly, through our “spirit to serve”, we emphasize the importance of Marriott’s people and recognize the value they bring to the organization’s growth and success. It aims to increase revenues by 9% every year, to increase
Large corporations such as Wal-Mart or Home Depot often come under criticism for putting mom-and-pop shops out of business. While this may be a valid criticism, the consumers neglect to realize that they play the biggest part in shutting these businesses down. Consumers across the country are always looking for the best deals or the lowest prices, and in most cases the larger corporations are where products can be found at the lowest price. Many small business owners and the populations of small towns dislike large corporations moving into the area because they believe it negatively effects the local
Ibis, the popular economy hotel chain, opened its first hotel in 1974, in the French town of Bordeaux. Since then, the company has expanded globally, reaching 40 countries worldwide, opening over 800 hotels. The majority of chains have been established in France, while the UK hosts over 50 chains, with further four hotel openings expected in December 2009. Recently, the chain has introduced a strategy to “promote the chain’s drive for ‘greater and greener customer comfort’”. (Mintel 2009)
The organization has explicitly kept this advantageous environment over other organizations by improving its service capacity. Additionally, the organization ensures that it stays ahead of its rivals by engaging in research and development that focuses on luxury products and markets analysis. The Ritz-Carlton hotel uses data from its research to predict the future of the industry; therefore able to dictate what and how the market will trend in the foreseeable future. Another factor that keeps the organization’s advantage over its rivals is that while rivals tend to become a hotel brand in the industry, Ritz-Carlton has rather position itself to be a leader and lifestyle brand that constantly develop new properties and ensure that customers live the culture of the hotel. The final factor that has kept the advantage of the organization intact is the culture of trust that exists between the management and employees. The leadership of the hotel lives and communicates the organization’s value to its employees who in turn satisfy customers in a way that they often anticipate a return visit. These are some of the reasons that the Ritz-Carlton hotel continued advantageous environment over its rivals has persisted in the hotel and resort industry (Reiss,
Evidence to supposition: - The aforementioned presumption being given by the creator is valid in nature and I concur with aforementioned statement. Since administrations gave are impalpable which we all know exceptionally well. Anyhow, when we contrasted it with an item acquired and inn industry is constantly seen as an administration situated industry that why it has got an abnormal state of elusiveness moreover, the item gave to the client 's making quality discernments in the psyches of clients. In lodging industry where the elusiveness is dependably on the skyscraper, demonstrating the clients an enormous brand or logo with institutionalized office, it generally support the inn in minimizing the impalpability in the brains of clients. Brand name is continually making an illustration to be known as an advantage for the organization which it generally groups. (Cross and Walker, 1987) There are brands like Quality International which re-named themselves and created themselves in different divisions to grow its image name through mindfulness in the business sector inside the business (Jiang, Dev and Rao, 2002).