Analysing strategic planning of hyatt

Analysing strategic planning of hyatt In 1957 Hyatt was established by Jay Pritzker by purchasing the Hyatt House motel next to the Los Angeles International Airport. After few years, Pritzker family, developed into a North American management and hotel ownership company, which became a public company in 1962. In 1968, Hyatt International was formed and subsequently became a separate public company. Hyatt Corporation and Hyatt International Corporation were taken private by the Pritzker family business interests in 1979 and 1982, respectively. On December 31, 2004, substantially all of the hospitality assets owned by Pritzker family business interests, including Hyatt Corporation and Hyatt International Corporation, were consolidated under a single entity, now named Hyatt Hotels Corporation. Hyatt is a global hospitality company with widely recognized, industry leading brands and a tradition of innovation developed over its more than fifty-year history. Hyatt manage, franchise, own and develop Hyatt branded hotels, resorts and residential and vacation ownership properties around the world. As of March 2010, Hyatts worldwide lodging portfolio consisted of 434 branded properties. Hyatt International manages luxury hotels in Asia Pacific, Europe, a, Middle East and Latin America, offering upscale travellers six distinct brands: Grand Hyatt, Park Hyatt, Hyatt Place, Hyatt Summerfield Suites, Hyatt Resorts, and Andaz. Hyatt often struggles to maintain its market share over its other competitors i.e. Hilton worldwide and Marriott international Inc. in some overseas markets, particularly Asian countries. Hyatt International distinguishes itself in todays competitive marketplace with brands that deliver experiences to match the lifestyles, attitudes, values and aspirations of its guests. The companys properties share core values and they offer exceptional guest services, upscale amenities, popular restaurants and bars, and innovative and distinctive interior designs that incorporate local art and styles. As a privately held company, Hyatt is driven by these values rather than shareholder dictates, and has strategically been able to grow its luxury hotel brands based on its mission to operate the worlds finest collection of hotels. Section 1.1 Reason for choosing Hyatt: After searching the subject for assignment I find it interesting to study about the Hyatt Hotels Corporation. In order to know its strategies and management policy which has unable it to gain a lot of success worldwide in last few years. Section 1.2 Aims and Objectives : The main aim of the dissertation is to understand the strategic planning and to know its implementation through the case study. Objectives: 1) To conduct the analysis of strategic planning. 2) To study the implementation of strategic planning. Section 2: Literature Review 2.1 Marketing planning and principles: It is important to understand what is meant by marketing. The following definitions of marketing have been provided by the authorities indicated: The aim of marketing is to know and understand the customer so well that the product or service fits him and sell itself. Drucker (1974) According to Philip Kotler: Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Therefore marketing means identifying and meeting human and social needs. Marketing is meeting needs profitably, marketing means understanding what are the exact needs? Meeting those needs in best possible way, which will satisfy consumer and which will be profitable for business in money term as well as to lead the competition. In marketing exchange is the core concept, it is a process of getting a desire product from someone by offering something in return. In marketing for exchange, it needs at least two parties. Each party must have something which has value for other party. Each party must to be able for communication and delivery. Each party is free to accept or reject the exchange offer. Each party believes it is appropriate or desirable to deal with the other party. Traditionally the market was a physical place where buyers and sellers was meeting to buy and sell the goods (like grain markets, cloth markets etc.). In modern economics the concept of market is expanded. Manufacturers go to resource market (like raw material market, labour market, money market etc.) buy resources turn them in to goods and services and sell the finished products to intermediaries who sells them to consumers. Consumer sells there labour and receive money from which they buy the goods and services. Marketing concept emerged in the mid 1950s. Instead of product centred philosophy of make-and-sell business shifted to consumer-centred philosophy of sense-and-respond. Marketing is not Hunting, marketing is Gardening. Marketing means producing right products for your customers, its not finding right customer for your product. A well-planned marketing is the key to achieve organisational goals of the company, being more effective than competitors in creating, delivering and communicating superior customer value to its chosen target market. Strategic marketing planning The process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities. It relies on developing a clear company mission, supporting objectives, a sound business portfolio and coordinated functional strategies. (Philip Kotler Gary Armstrong, 1996) A strategic marketing planning is essential for organisations to focus their approach towards mission and objectives. In marketing planning process, to meet the consumer needs efficiently following things are important: 1. Develop a mission statement: According to Philip Kotler and gary Armstrong, 1996, A mission statement is a statement of the organizations purpose what it wants to accomplish in the larger environment. 2. Set goals: The goal of an organization derives from the mission of the company. It explains in short the agenda of the company for next five years. 3. Set objectives: It explains what needs to be done under goal in following years. The objectives are mentioned priority wise. 4. Identify strategies and tactics: This helps us to know how to attain the objectives describe how to attain the objectives through its goals. This statement separates actions that the management wants to execute during anytime in the year. 5. Implementation of marketing mix. 6. Investment of money and resources. 7. Co-ordination of all organisational departments. Marketing strategy primarily focuses on optimising profit and return on investment, not just maximising sale. Strategy covers long-term intentions, objectives and targets and planning focus on short-term action programmes followed to achieve the strategy. Marketing strategy is focusing on expanding the use of existing products in existing markets. It is concerned with meeting the objectives of an organisation or some part of it. Marketing planning is concerned with detail of implementing the agreed strategy. It covers the resources needed and the means to be used to implement strategy. In marketing planning of an organisation, the goal of organisation must be clear. I have developed Figure 1.1 to show the steps that are followed when developing a marketing plan. This leads to a development of a marketing strategy which requires the help of good market audit, analysis and marketing mix. This is implemented by monitoring, controlling and evaluation to ensure that the organisation achieves its optimum goal and targets. Goal / Target Implementation Vision Market Audit:Analyse current position and opportunities Market research: Gain information on market Marketing Mix: Pursued customer to buy the product Objectives Mission Marketing strategy Market analysis Market segmentation Qualitative Analysis Consumer analysis/test Quantitative Analysis Place Price Product Promotion Monitoring Controlling Evaluation Strategy formation Figure 1.1 The Steps in the development of a Marketing plan 2.2 Techniques and tools There are several tool and techniques which can be used for forming strategy for an organization. These tools are as follows: 1. Ansoff Matrix 2. SWOT analysis 3. Portars five forces. 2.2.A. Ansoff Matrix: This  is a tool which can be use to produce strategies of an establishment. This gives an idea to expand current business by forming new strategies. This matrix can be use as a guide to choose a plan of action for the present performance. The matrix has four levels, as below: CURRENT PRODUCTS NEW PRODUCTS MARKET PENETRATION PRODUCT DEVELOPEMENT MARKET DEVELOPMENT DIVERSIFICATION CURRENT MARKET NEW MARKET Figure 1.2 Ansoff matrix Source: Stone P. (2001) make marketing work for you: boost your profits with proven marketing techniquesà ¢Ã¢â€š ¬Ã… ½ Market Penetration: It relates to expanding current share in the current market to enhance the growth. Market extension: It means taking present products in new market that means increasing sales in new market. Product development: Product development means creating new products or amending previous product in current market Diversification: This can be related to product or market or unrelated to both. Above mentioned factors can be used while planning a strategy of an organization 2.2. B. SWOT analysis: It is a strategy planning tool which analyses the strength, weakness, opportunities and threat involved in particular business or project. It identifies the factors which can be encouraging or discouraging for the business, those factors can be internal as well as external. Those factors are: INTERNAL FACTORS WEAKNESSES Slow internal decisions Minimum recourses High cost base Limited for specific segment Take time for transportation Deficiency of experts Location of the market STRENGTHS Brand image Skilled workforce Good systems Monopoly of the brand Strong customer loyalty Improvement in the product Location of the market MARKETING STRATEGY OPPORTUNITIES Booming Economy Good design product Credit facilities Government policy change New technology Developing market No strong competition THREATS Industry reputation Global competition Hostile legislation Product limitation New competition Price war Declare taxation to product EXTERNAL FACTORS Figure 1.3: SWOT Analysis Table Strength: The establishments strengths are its potentials and wealth. Weakness: The lack of the some strength is considered as weakness. Opportunity: The environmental analysis may lead to some opportunities which will be helpful for the organization to make profit. Threats: Sometime few changes in the external environment can lead to the threats for the organization. SWOT analysis gives the information about the resources which can be used in competitive environment in which the organization is functioning. Hence it is very useful in strategy formulation 2.2.C. Porters five forces: Porter five forces are used for analysing the industry and for formulating a strategy. If SWOT analysis is used together then it is very beneficial for an organization Industry competition Rivalry among existing firms Bargaining power of supplier Bargaining power of Buyers Threats of substitute products or service Thetas of new entrants Figure 1.4: Porters five forces SOURCE Bargaining power of supplier: The power of supplier tends to be high during when: There are large numbers of suppliers in the market. Where there is a scarcity of particular item. Bargaining power of customers: The bargaining power of customer helps organization to know the capacity of customers to put pressure on volumes and margins.Mostly the consumer will bargain when: When they buy in large quantity. The products are of very high cost The customer can make those products. Threat of new entrance: The other companies can entre industry more easily if the competition in industry is more. In such times new comers can change the market surrounding. Threat from substitute : The threat from substitute can occur when the similar type of product is available in the market with comparatively low price as well as same standards. This can attract large market share. Competitive Rivalry between Existing Players: If there is more competition in the current companies then automatically pressure goes on pricing and so the profitability. Porter M (2008) 2.3 Stakeholders: The stakeholder is any group or individual who can affect or is affected by the achievement of the organizations objective (Freeman 1984).The most common way of classifying stakeholder is to consider a group of people with noticeable relationship with corporation. The diagram below shows the stakeholders map of very large organization. (Friedman Miles 2006) Firms Owners Financial Community Activist groups Customers Customer advocate groups Unions Employees Trade associations Competitors Suppliers Government Political Groups Figure 1.5 : Stakeholders [Freeman (1984)] 2.4. Strategic option To develop a marketing strategy there can be many ways which can be adopted by the company to face the present financial situation. When the market is changing then the growth opportunities increases. To know those opportunities proper marketing strategy is important. Even when the economic situation is not good but still if proper marketing strategy is made then it is helpful to run the organization effectively. Hyatt is considering the number of options for the strategy which can be more developed, approved and determined. Section 3 : Research Method Research may be simply defined as the systematic search for knowledge and this has two key elements. The first and most obvious element is the search for knowledge and the second is the purpose of that search for knowledge. The knowledge generated must be captured so it can be made accessible to others. Research must be capable of being reported in enough detail so that a specific study is replicable and hence publicly verifiable. Secondary data analysis can be literally defined as second-hand analysis. It is the analysis of data or information that was either gathered by someone else (e.g., researchers, institutions, other NGOs, etc.) or for some other purpose than the one currently being considered, or often a combination of the two (Cnossen 1997). As with the literature, secondary data can play a variety of roles in a research project, from being the whole basis of the research to being a vital or incidental point of comparison. Some advantages and disadvantages of using secondary data are listed below. A considerable amount of leisure and tourism data is collected on a regular basis at considerable cost, particularly by government agencies, often the immediate policy requirements of the data are quite limited for example to announce a global figure on tourism numbers or numbers of participants in sport. In a sector where research funds are limited, it would seem unwire for the research community to waste such resources by failing to extract all possible research potential from them. This requires careful consideration of ways in which available data might be used, and often calls. Advantages Disadvantages Timing data may be instantly available. Cost cost of collecting new data avoided. Experience- the trial and error experience of those who collected the original data can be exploited. Scale secondary data may be based on larger samples than would otherwise be possible. Serendipity inductive process of data analysis may yield serendipitous findings, which may not have arisen with primary, purpose-designed data collection. Design secondary data has been designed for another purpose, so may not be ideal for current project. Analysis limitation if access to the raw data for re-analysis is not possible, oppourtunities for analysis/manipulation of the data of the current project may be limited. Section 4 : Data Presentation Hyatt.jpg Mission and vision statements Mission and vision statements plays important roles in any organization, which shows the way for company to make future plan in order achieve their vision and mission. The vision gives a path to management and employees to work. It also shows the companies aim for next ten years. Vision is made by keeping the aims in the mind and where exactly they want to be in the future. Mission statement explains the characteristics and standards of an organization, which help the employees to know the standards of the company hence accordingly they can improve their performance. It also gives an idea about the quality benchmark of an establishment. Mission of Hyatt According to the annual report of Hyatt Hotel Corporations (2009) they set the mission is to provide authentic hospitality by making a difference in the lives of the people we touch every day. It shows the standard of an organization and with this mission statement, they can motivate their staff to give executive service to the customers with which company can earn profits and goodwill as well. Goals of Hyatt Increasing the engagement of their associates; Increasing the guest service and meeting planner satisfaction levels in their property; Increasing their share of revenue in their market; and Maximizing operating profits and margins for their property. Further expand our presence by increasing the number of hotels in our portfolio; and Actively manage our capital base to drive preference for our brands. With this goals company can grow in this recession period in the competitive industry. Environmental Objectives: Hyatt puts more attention on environ mental factors in order to help to reduce global warming. The companys commitment towards environment is : At Hyatt, theyre committed to making a positive and lasting impact in every community in which they operate. They do this by demonstrating a strong commitment to preserving their natural environment through Hyatt Earth, by giving back to the local community through Hyatt Community, and with the volunteer services of their associates through Hyatts Family of Responsible and Caring Employees Ethical Objectives: Hyatts follows its ethical values in each department .Those values are as follows: Hyatt is completely responsible for their employees. The ethical responsibility towards them is to give proper training to them irrelative of their race, sex and origin. Through Hyatts ethical values employees has right to overcome the customer who are highly problematic. Cultural Objectives: The Hyatts cultural objective is to give authentic hospitality service and strives to make a difference in the life of guests. Business Objectives: The main business objective is to appear as a leading hospitality company by making the profit to enhance the business. For this, it also concentrates on satisfaction of their employees and also achieves social responsibility. In all circumstances Hyatt tries to complete these objective, hence though the current financial market conditions are not good still it has not been affected. Marketing Environment: The changes in marketing environment of Hyatt can occur in following areas: Economic forces: The marketing strategy largely depends on internal as well as external economic forces. The internal economic forces will depend on the growth and the profit of the organization and external economic forces will depend on the overall market situation. If the economical environment is not suitable then to improve the same management should evaluate their strategies in order to gain success. Socio political changes: This can affect the organization largely. This can affect the costing as well. This includes the changes in social and political environment which can lead to some changes in rules and regulation by the government, which in return can affect the organization. Natural environment: It involves natural resources that are needed by marketers or which can affect the marketing environment of establishment. The natural environment can affect hotel industry in drastic ways. It includes natural calamities like shortage of raw materials, earthquakes, floods, and other. In such situation a hotel should implicate the strategies which will attract more customers and should gives offers which will convince the more guest. TIMETABLE FOR IMPLEMENTING STRATEGY: Following is the timetable for implementing a strategy for developing a new branch of Hyatt. PLAN TIME RESOURCES Building new property for hotel. 2 Years Capital, Labor, machineries Completing hotel interiors 1 Year Funds, Skilled personnel Establishing new teams and tasks for the establishing infrastructure. 6 months Recruiters, employees at work Training and preparing employees. 1 Year Employees and trainers Legal works 3 months Detail Information Marketing of the property 6 Months Skilled staff Booking opening 1 week Internet, Advertisements Hotel opening. The above is a time table for implementation of strategy according to different time period when the each process will take place. It is an explanation of the plan in short manner. Dissemination Process: This process is done before the project development which can be done to get a acceptance from everyone i.e. people from all departments, management and the customers. Before starting a restaurant in one of the Hyatts property, many considerations had to be made. After those considerations, company had to do dissemination on cost cutting. For this dissemination activity is carried out in three steps .Those steps are as follows: Research activities: It includes the research from starting a new project till giving salaries to the employees. Before starting the project, the research on production cost is also done. Technical assistance activities : It is used to identify the technology which helps in increasing the efficiency and effectiveness. Demonstration activities : These all researches are showed to top-management of the company. After analysing the facts by them, the feedback is given. And after that a project is carried ahead. This dissemination policy helps an organization to know the following information before starting the project: Gives rough idea about the funds required for the project The requirement of staff and their training needs can be analysed. Gives scope for the promotion of the project. MONITORING: Once the new strategy is implemented in the organization, then monitoring is very important. The management should regularly take interest in management. The strategy always operates with formulated procedures. Hence it should be regularly monitored to check whether all procedures are properly followed. The operations should always run smoothly as sometime it can affect the reputation of an organization. The continuous monitoring can be done with PCDA cycle. For the success of organization long term monitoring is a good option. It can also be done by the feedback from the customers. The auditing is done constantly at operational levels to check whether all procedure all followed or not, to check the quality of the service, which intern helps in keeping the customers satisfied. EVALUATION OF NEW STRATEGY: The evaluation of the strategy can be done by monitoring. The following points should be considered while evaluating the strategy. Satisfaction of the customers. Number of units sold. Requirement of the market. Products standards and quality Feedback from the suppliers and dealers. After sales procedures Promotion of the new products. If the strategy is evaluated on above mentioned basis, then it helps the organization to know if the company is not right track or not. The evaluation result also helps in motivating the employees. Steak Holders Below mentioned are the stakeholders of Hyatt: Guests / Customers Investors Employees Communities Suppliers Government and regulators Non government organization(NGO) Stakeholders participation: Hyatt strongly believes that the stakeholders participation in developing management strategy is utmost important. If all stakeholders participate together then it helps to maximise the outcome in order to make sustainable project design. Hence Hyatt makes sure that they conduct regular meetings with their stakeholders in order to keep them up to date. Following points are taken into consideration in order to initiate proper participation of stakeholders: Employees: Hyatt listens to and communicates with staff constantly. The main focus is given on collecting feedback from employees through Staff Question Time sessions and through annual Viewpoint survey. Apart from the feedbacks, organization arranges training and development programmes through which an employee will be thorough with organizations goal and aim which will help to get exact contribution from the staff. Guests/Customers: The guests are the biggest asset of the hotel. They indirectly participate by promoting the hotel by word of mouth if the hotel provides them a good service. Hence the hotel staffs communicate with their customers on everyday basis which helps them to know their changing needs. Also feedback request mails are sent to random guests by the Managing Director of the hotel to know their expectations. Investors: Hyatt actively engages investors in an annual structured programme of presentations and meetings to understand their views on strategy. Also, Hyatt provides them with updates and issue briefings when appropriate during the year. They also communicate with shareholders through the Annual General Meeting, Investor Relations website. Communities: Most of the time hotel tries to their neighbour hotels and companies, which in turn builds up good relation. This type is also comes under an external stakeholders which participate indirectly. Suppliers: Hyatt holds regular meetings with their suppliers, processors and manufacturers. They also bring them together to share experiences at the Producer Clubs, and seek their feedback through the annual Viewpoint survey. Hyatt also provide training and capability building for suppliers where appropriate. Government and Regulation: Hyatt connects with governments, parliamentarians, regulators and officials on a range of issues affecting the business and communities. These include planning processes and consultations on new regulations including healthy eating and alcohol. Hyatt works hard to ensure that responses to government consultations are aligned with our CR policies and practices. Non government organisation: Engaging with NGOs helps them better to understand current and emerging issues related to the business. Hyatt met many NGOs to discuss issues including climate change, bio fuels, ethical trading and animal welfare. They also contribute to research and surveys, and respond to requests for information from NGOs as fully and promptly as they can. Hyatt asked NGOs to share their thoughts about Hyatt to help them to improve the performance. Section 5 : Conclusion: This assessment is very helpful for me to know the marketing concept in detail, mainly the principles, planning process, tools and techniques, marketing strategies and marketing mix. And developing the strategy and tools and techniques for a well known organisation is the best learning experience. It is helpful to know how industries and mangers think, how they forecast? How they plan? How they lead market? This assessment is truly a great experience for me to learn marketing concepts in detail. The overall aim of this report was to Study a strategic planning at Hyatt Hotels Corporation In order to attend all aspects of overall aim, initially I did some literature review of strategic planning, tools and techniques use in strategic planning and then it evaluates the facts with Hyatt Hotels Corporations. Although this report has been carried out sincerely and to the best of my ability, there are still some limitation to it. This research explored my theory knowledge of research and marketing. But as I said it was difficult to do the research in depth, due to time barrier.

Nabokov- Good Reader and Writer Essay

A good reader will ask themselves questions as they read along, using sticky notes for that section. This technique allows the readers to come back to the questions and answer them after reader more of the novel or essay. Also, a good reader uses hints the author hides through the passage for the reader to interpret. This lets readers figure out what message the author wants the reader to know. Good readers are active readers which means they use their reading experiences for support by bring knowledge from the world into reading. In addition, they use comprehension strategies to draw conclusions, synthesis and compare and contrast. Further, a good reader knows when to slow down and read faster based on difficulty. When a good reader doesn’t understand a word he/she use context clues to figure out the meaning of it. Lastly, a good reader should have an open mind based on his/her reading. A good writer uses proper punctuation at all times. Grammar and spelling are important as well. Also, a writer should have a lot of knowledge based on what he/she is writing about. This means that the writer should create a plan before writing about. This means that the writer will research ones topic before writing about it. In addition, a good writer should create a plan before writing to have a formal paper. To tell the truth, if a writer doesn’t truly believe in what one is writing about then that’s not a writer at all. A good writer would not care about what others think of ones opinion. Finally, a good writer grabs the reader’s attention from the beginning of the story. Lastly, a good writer writes novels with enough detail to let the reader understand, but not too much so the reader has to interpret the story you are writing about.

Comparison of Thomas Hobbes and John Locke Human Nature...

Amidst the bloodshed of the English Civil War, Thomas Hobbes realizes the chaotic state of humanity, which gravitates towards the greatest evil. Hobbes’ underlying premises of human nature–equality, egotism, and competition–result in a universal war among men in their natural state. In order to escape anarchy, Hobbes employs an absolute sovereignty. The people willingly enter a social contract with one another, relinquishing their rights to the sovereign. For Hobbes, only the omnipotent sovereign or â€Å"Leviathan† will ensure mankind’s safety and security. The following essay will, firstly, examine Hobbes’ pessimistic premises of human nature (equality, egotism, and competition), in contrast with John Locke’s charitable views of humanity;†¦show more content†¦Self-centered human nature drives men to egotism. Yet in a world of limited resources, as one man strives to satisfy his desires, he naturally diminishes other men†™s opportunity to fulfill their own needs, thus creating Hobbes’ third premise: competition. In human nature, â€Å"From equality of ability ariseth equality of hope in the attaining of our ends. And therefore, if any two men desire the same thing, which nevertheless the cannot both enjoy, they become enemies; and . . . endeavour to destroy or subdue one another† (Hobbes 75). Men compete with one another to gratify their desires and thus become enemies. Consequently, competition begets jealousy, envy, and hatred, which sparks war among people. Hobbes’ three premises of human nature, equality, egotism, and competition, set the stage for an all out war. In contrast to Hobbes’ pessimistic outlook, Locke places trust in the goodness of human nature. â€Å"This equality of men by nature . . . [obligates] mutual love amongst men, on which he builds the duties they owe one another . . . the great maxims of justice and charity† (Locke 8). While Hobbesian equality turns men against each another in the pursuit of similar desires, Locke’s state of equality encourages charity. Locke believes human nature freely shares itself with others: â€Å"Every one, as he is bound to preserve himself . . . ought he, to preserve the rest of mankind† (Locke 8). As much as one wishes to fulfill his own needs, he alsoShow MoreRelatedThe State Of Nature And Government1315 Words   |  6 Pages THE STATE OF NATURE AND GOVERNMENT Chloe Holmeshaw BF190 Dr. Charles Wells October 11, 2015 â€Æ' The State of Nature and Government The State of Nature and governing in â€Å"The State of Nature† are two subject that Hobbes and Locke both discuss in their book. The enlightenment period was a time of Learning, new inventions, new theories, and new government. 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