SUPPOSE THAT YOU ARE THE MANAGER OF A 4* HOTEL IN CYPRUS, PAFOS AREA.
DUE TO THE CORONA VIRUS SITUATION, THERE IS A NEED TO RE-VISIT THE
STRATEGY OF YOUR ORGANISATION. IN THE SCOPE OF THE ABOVE AND
CONSIDERING THE FOREMENTIONED SITUATION ANSWER THE FOLLOWING
QUESTIONS IN A FORM OF AN ESSAY:
1. EXPLAIN THE IMPORTANCE OF FORMING VISION AND MISSION STATEMENTS.
2. BASED ON THE CONCEPT OF YOUR HOTEL PRESENT AND ANALYSE THE REVISED
MISSION AND VISION STATEMENTS OF THE ORGANISATION.
3. DISCUSS HOW ORGANISATIONS USE SWOT ANALYSIS FOR THEIR STRATEGIC
REVIEW.
4. FORM THE CURRENT SWOT ANALYSIS OF THE HOTEL.
Constantinos Tsianides
MBA
Maria Socratous
Cyprus Institute of Marketing
January 05, 2023
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Table of Contents
Introduction .............................................................................................................................. 3
Mission Statement .................................................................................................................... 3
Vision......................................................................................................................................... 4
Importance and Use of SWOT Analysis ............................................................................... 6
SWOT Analysis Prerequisites ................................................................................................ 7
Internal Analysis .................................................................................................................... 7
PESTEL – External Analysis ................................................................................................. 5
SWOT Analysis ........................................................................................................................ 9
Cocnluding Remarks ............................................................................................................ 11
Reference List ........................................................................................................................ 13
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Introduction
The coronavirus situation has had a severe negative impact on the global hotel industry.
While governments and public health authorities worked to stop the coronavirus's spread,
hotels have been deserted for months. In order to re-open hotels had to take fast action to
lessen the impact on their operations by laying off workers, cutting costs, shifting online, and
more (Deloitte, 2020).
Furthermore, the consulting firm Deloitte (2020), advises that for the hospitality industry to
recover, it will be crucial to recognise and adapt to shifting consumer behaviours. To gain
and keep customers' trust, businesses will need to reinvent the customer experience and
increase their operational agility and financial resilience. They further argue that businesses
that adjust their offerings to consider shifting consumer preferences and behaviour will be
able to support long-term success and growth.
The purpose of this essay is to assess the post-coronavirus situation, from a managerial
perspective, in relation to the operating environment of the four-star Alexander the Great
Beach Hotel in Paphos, Cyprus. The essay will analyse the significance and application of the
hotel's mission statement and vision and determine how they should be updated to fit the
needs of the modern world based on the post-covid consequences. Moreover, an overview of
the internal and external environment will be outlined in order to create an updated SWOT
analysis for the hotel and assist in formulating the organisation’s future strategy.
Mission Statement
A company's goal to make an impact on society is spelled out in the mission statement, which
serves as the primary driving force behind the company's existence (Evans, 2015). According
to Whittington et al (2020), a mission statement seeks to make it clear to stakeholders and
employees what the organization's core purpose is. Additionally, they argue that this is
frequently encapsulated in the seemingly straightforward but difficult question, "What
business are we in?”.
The consulting firm Bain & Company (2018) states that a company's business, aims, and
strategy for achieving those objectives are all outlined in the mission statement. Additionally,
according to Investopedia (2022), mission statements serve a dual purpose by inspiring
employees to find creative ways to move toward enhancing productivity and accomplishing
company goals, while also assisting them in staying focused on their duties. Furthermore,
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Powers (2012), advises that management experts concur that defining an organisation’s
mission is a crucial initial step in planning the firm’s strategy.
According to Hitt et al. (2017), a mission statement expresses the organisation’s core purpose
and often includes several elements, such as: company philosophy, company identity or selfconcept, main products or services, customers and markets, geographic focus, obligations to
shareholders, and commitment to employees.
Evans (2015) argues that a mission statement may serve a variety of purposes. It can be
utilized to effectively convey the firm's goals and values to the different stakeholder groups,
and help the organisation implement a homogenous strategy. Furthermore, it creates a
framework to develop various objectives in a consistent manner at various organisational
levels. Finally, it may also impact the attitudes and behaviour of employees.
In order to craft the hotel’s new mission statement, stated in the next paragraph, the author
has considered the relevant academic and business literature, the challenges that have arisen
out of the covid-19 situation, and the particular features of the hotel. As a result, the new
mission statement is the following:
“Our mission is to welcome visitors from all over the world and to give them the best
individualised service possible 365 days a year. We want our visitors to enjoy the enduring,
elegant, yet eminently laidback hospitality that defines our hotel. Our hotel provides topnotch amenities to all of our family and couple guests, and our hard-working team makes
sure that the levels of cleanliness and comfort go above and beyond what our guests expect.
We provide all of these in a dreamy setting with easy access to a Blue Flag beach, a clear
view of the ocean, and a short stroll to the town's major tourist district.
As a locally owned hotel, we strive to provide all of the above while respecting the local
community and environment, being passionate about the long and rich history of our island
and ensuring the prosperity of the surrounding communities and citizens. “
Vision
In a seminal article published in Harvard Business Review, Collins and Porras (1996),
suggest that trully outstanding organisations are aware of the distinction between what should
be constant and what should be adaptable, between what is truly sacred and what is not. They
further claim that the ability to create a vision is directly related to the capacity for managing
continuity and change, which calls for a tenaciously trained discipline. Finally, according to
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the article, vision tells us what essential values to uphold and what future to encourage
advancement toward.
Kirkpatrick (2008) argues that an organization must have a formal vision statement as a
matter of course. He stresses that a vision can boost organizational performance and
individual followership, given that is used effectively and encompasses certain qualities.
These qualities include brevity, clarity, the vision statement of the organisation being
challenging and abstract, being future-oriented, and to math the success metrics of the
organization.
A similar set of characteristics was identified by Kantabutra and Avery (2010). Their study
indicates that a powerful vision has a strong implication on employee and customer
satisfaction, and thus on the profitability of a firm. In order to cultivate a strong vision, the
following characteristics were identified in their study as essential: being succinct, clear,
abstract, challenging, future-focused, stable, and desirable, or having the ability to move
people.
According to Whittington et al (2020) a vision statement addresses the future that an
organization hopes to build. Typically, it represents a desire that will inspire people, increase
dedication, and stretch their abilities. Whereas a simple definition is provided by Bain &
Company, describing a vision statement as “the desired future position of the company”.
Finally, Collins and Porras (1996) offered some criticism regarding the usage of the term
“vision”. They underlined that it has become one of the most misused and misunderstood
words in the English language, conjuring up many pictures for various people, including
profoundly held ideals, exceptional accomplishments, societal ties, thrilling ambitions,
motivating forces, and reasons for existing.
Considering the above the hotel’s vision is “To be one of the leading beach resorts in the
Mediterranean, keep on offering unique hospitality in a tranquil and serene atmosphere,
safeguarding local culture and the environment. To be the destination of choice for every
family and couple all year round.”.
The hotel's vision has been written in such a way as to convey the proper messages to all
relevant parties, including current and potential customers, staff, shareholders, the local
community, and business partners. The aim is to communicate to target customer groups the
high standard of service the hotel offers in a scenic location, assure shareholders that the firm
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will remain strong and keep developing, promote the firm’s corporate social responsibility
values to the local community, motivate and provide a sense of purpose to staff, and provide
assurance to its commercial partners that they are doing business with a market leading
organisation.
Importance and Use of SWOT Analysis
In this section, the author will refer to pertinent literature before beginning the SWOT
analysis so as to provide a better understanding of how organizations use this technique for
their strategic reviews. Additionally, the SWOT analysis will be based on academic literature
and commercial advice pertinent to the hotel industry.
According to Ifediora et al (2014), the SWOT analysis is the most well-known management
tool for auditing and analysing the general strategic position of the organisation and its
external environment. The SWOT analysis summarises the Strengths and Weaknesses
examined in a study of resources and capabilities, as well as the Opportunities and Threats
examined in a study of the environment (Whittington et al 2020). Its main objective is to
pinpoint the tactics that will help a company develop a bespoke business model that will best
match its resources and capabilities with the demands of the environment in which it operates
(Ifediora et al, 2014). It is also used to determine the degree to which strengths and
weaknesses are appropriate for or capable of handling the changes occurring in the business
environment (Whittington et al 2020).
Additionally, Ifediora et al (2014), state that it serves as the basis for assessing both the
internal potential and constraints as well as any prospects and dangers from the outside
environment. It considers all internal and external aspects, both positive and negative, that
may influence the success of the organisation. They further argue that consistently
researching the environment in which a company operates aids in anticipating and predicting
shifting trends and incorporating them into the organisation’s decision-making.
According to Evans (2015), the SWOT analysis's strengths and weaknesses are typically
based on an internal examination of the organizational environment, which managers can
influence. Whereas SWOT analysis's opportunities and threats are typically based on a thirdparty evaluation of the organization's external environment, over which managers have little
influence. Since the SWOT analysis is not the strategy itself and should not include
recommendations for future action. However, the SWOT analysis, provides a strong basis for
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the organization's future planning and the development of the corporate strategy, which is the
next stage in the strategic planning process (Evans, 2015).
Kaplan and Norton (2008) suggest that a management team receives a wealth of information
from external and internal analysis, much of which, when taken as a whole, might be
perplexing. Consequently, these factors are condensed into a concise list by a SWOT table,
which aids the executive team in understanding the major problems that the organisation
must deal with when developing its strategy. Strengths, for instance, can be used to seize
opportunities and avoid risks, and managers can be informed about internal weaknesses and
external threats that the strategy needs to address. Every component of the SWOT analysis
points forth problems that could have strategic repercussions.
SWOT Analysis Prerequisites
However, an internal and external analysis is required before proceeding with the SWOT
framework (Evans, 2015 and Whittington et al, 2020). The hotel's resources will be split into
five groups for the internal analysis: physical, intangible, operational, human, and financial
resources. (Evans, 2015). For the analysis of the external environment, the PESTEL
framework—political, economic, social, technological, ecological, and legal—will be used.
(Whittington et al, 2020)
(i)
Internal Analysis
Physical: Hotel building and facilities including five restaurants, three bars, three swimming
pools, a spa and health club, and an indoor pool.
Operational: Online booking system, concierge, baggage storage, currency exchange, 24-hour
front desk, and car rental.
Financial: The hotel is a part of the reputable hospitality firm Kanika Hotels & Resorts,
which has a sound and healthy financial standing. (Kanika Hotels & Resorts, 2022).
Human: The hotel has a large number of staff and managers, holding extensive hospitality
experience. The staff positions include housekeepers, room attendants, receptionists,
concierges, front office managers, sales and administrative personnel, lifeguards,
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maintenance technicians, waiters, bartenders, chefs, kitchen and bar staff, activity instructors,
event and wedding coordinators, spa and fitness specialists, general managerial positions, and
security.
Intangible: The hotel is part of Kanika Hotels & Resorts group, the leading hotel group in
Cyprus established in the local market since 1975 (Kanika Hotels & Resorts, 2022). The
group has received multiple awards from internationally reputable organisations such as
TripAdvisor, Booking and British Airways. Trip Advisor named Alexander the Great Beach
Hotel as the best hotel in Cyprus in 2014.
(ii)
PESTEL – External Analysis
Political: The northern part of Cyprus remains occupied, however, there is relative stability in
the country. Due to the conflict in Ukraine, sanctions were placed on Russia, historically one
of Cyprus's biggest tourism markets (Jewell, 2022).
Economic: Cyprus experienced a strong growth rate of approximately 6% in 2022, driven
mainly by domestic demand. However, the global economic slowdown, rising interest rates,
and higher pricing pressures, particularly for energy, are all likely to cause GDP to slow
down. Additionally, the country’s exports of services, particularly tourism, are expected to
suffer from low purchasing power in its trading partners (European Commission 2022).
Furthermore, the unemployment rate has been decreasing and the Minister of Labour reached
a decree regarding the minimum wage (Nicolaou, 2022). The targeted government actions
that will go into effect in January 2023 are expected to lessen the effects of high energy
prices. According to Nicolaou (2022), the government is has announced a large public
spending plan to boost the economy.
Social: In recent years, customers’ preferred choice for holiday accommodation has shifted
towards private spaces (Pratap, 2017). Nowadays travellers, especially millennials, appreciate
the wide range of accommodations that Airbnb provides. In addition, the application's ease of
use, efficiency, and availability of attractively priced offers appeal to many users (Frue,
2019). Whereas in a pertinent article, FinanceOnline, a business publication, proclaims that
Generation Z is the largest rising age group of travellers (Gilbert, 2019).
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According to Revfine (2022), although hygiene has always been an important issue, Covid-19
has made a key determining factor in the selection process of holiday accommodation. The
findings of a McKinsey post-Covid 19 survey show a similar trend: leisure travellers demand
more health and safety precautions (Krishnan et al., 2020).
Technological: The use of comparison websites and platforms for hotel reservations is
growing and these websites typically include a system for client feedback and ratings as well
(SiteMinder, 2020). Although desktop web research is still the most common technique used
by customers, mobile bookings are on the rise (Thoreson, 2022). The consulting firm Deloitte
has identified a number of technological trends affecting the hotel industry including selfcheck-ins and check-outs, touchless payments, app-based services, and augmented or virtual
reality (Deloitte, 2020).
Environmental: Environmental and sustainability matters remain a major concern for the
hotel industry on a global scale (Weisskopf and Masset, 2022). According to
TourismReview, a multilingual platform concerned with tourism subjects, the key trends and
challenges for hotels are recycling, the use of ecological products, the use of local products in
hotel restaurants, the abolition of plastics, and the reduction in energy and water consumption
(Slate, 2021).On a domestic level, waste management is a critical environmental concern
according to local sources (Theopemptou, 2022).
Legal: According to recently passed legislation, homeowners who wish to list their property
for short-term rental on Airbnb must be registered in the Register of Self-Service
Accommodation Establishments and possess a unique serial number (Theodoulou, 2022).
Following the war in Ukraine flight bans for Russian airplanes and travel restrictions
affecting individuals have been imposed (Stamouli and Bayer, 2022).
SWOT Analysis
Strengths: The hotel is situated in an ideal location in a coastal setting overlooking a Blue
flag beach and within walking distance of the city’s tourist centre and main tourist attractions.
The hotel rooms are decorated in an elegant manner, and they have distinctive features based
on the room type (ranging from a standard type to a bridal suite). All rooms and hotel
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facilities are cleaned and disinfected on a daily basis using high-standard products and
procedures. Furthermore, guests can enjoy a distinguished gastronomic experience, as the
on-site dining options include a local tavern, a Japanese restaurant with an outdoor patio, and
an adults-only, à la carte Italian restaurant.
The hotel’s staff has extensive industry knowledge, and the management has long-term
experience running one of Cyprus' top hotels. Moreover, both the group's brand name as well
as the hotel’s reputation can be utilised for marketing and communication purposes.
Additionally, the group’s sound financial position enables the hotel to invest when needed to
improve its offered service. Finally, the hotel also makes use of the group's online reservation
system to take guest reservations, thus, being already a player in the digital era.
Weaknesses: Since the hotel is part of a group, there may be instances where the incentives of
the organization and the hotel are at odds. It might be difficult to guarantee the hotel's best
interests under such circumstances due to centralised decision-making. The hotel
management does have a set budget and a certain amount of autonomy in decision-making
though.
There is a certain extent of staff turnover as a result of the seasonality of the tourist season for
a beach hotel. As a result, it is challenging to always guarantee the quality and quantity of
staff for all positions. Furthermore, due to seasonality, there are times of the year when the
hotel remains underutilised.
Opportunities: The positive domestic economic climate provides an opportunity to target the
domestic market, especially during the winter months as a way to tackle seasonality. The
warm climate of Cyprus can also be used to the advantage of the hotel in order to attract
foreign guests, during the off-season, who may prefer to avoid large crowds or are more price
sensitive.
The hotel may further tap into international markets such as Germany, Austria, Greece,
Israel, the Netherlands, Switzerland, Jordan, and Scandinavian countries as a result of the
new government policy to attract tourists from a variety of nations and Cyprus' enhanced air
connection. (Financial Mirror, 2022).
The sound financials both of the group and the hotel enable the management to further utilise
the digital presence of the hotel so as to outperform its competitors and meet the needs and
demands of younger generations as well as adapting to changing consumer trends.
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Establish collaborations with local suppliers such as wineries, farmers, fishermen, and food
producers to represent local culinary tastes and actively promote sustainably sourced food
and beverages. Additionally, the hotel may also use solar power to generate electricity by
utilising the island's climate and government incentives. This will have a twofold impact as it
will lower the hotel's operating expenses while also reducing carbon emissions in accordance
with the organization's environmental strategy.
Threats: The rise in the use of private accommodation platforms, such as Airbnb, is a trend
that requires close monitoring. However, the market segments that these platforms aim to
draw may be affected by different factors compared to the services and facilities offered by a
hotel. Furthermore, as long as the situation in Ukraine remains the same and the Russian
flight ban is still in effect, the hotel won't be able to draw guests from a historically important
market.
Consumer demand is still being negatively impacted by inflationary pressures, the global
energy crisis, and economic uncertainty, which are raising operating expenses and reducing
the organization's profit margins as well. These trends might entice budget-conscious
consumers to travel to nearby, less expensive destinations such as Turkey and Egypt.
Concluding Remarks
The SWOT analysis outlined above has demonstrated certain facts that the organisation has
to take into consideration. Firstly, is evident that the strong and established reputation and
recognition both of the group and the hotel, the existing facilities, the experienced staff, and
the digital and technological advancement of the hotel can be exploited to further consolidate
the position of the hotel, exploit new opportunities, and tackle possible threats in the postcoronavirus era. Certain weaknesses have been identified as well that need to be
communicated and discussed with the group’s management to agree on applicable solutions.
The geopolitical tensions have disrupted traditional markets, however, at the same time they
have given the opportunity to turn into new markets and develop a more diversified customer
based thus being less prone to regional shocks and tensions. Whereas changing consumer
behaviours along with the rise of younger generations increase the prospects of tapping new
markets. Moreover, environmental and sustainability issues are enforcing the organisation to
explore new and more efficient ways to generate electricity and simultaneously offset the
effect of rising energy and general prices. The threats from nearby tourist markets and
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alternative accommodations must be closely monitored and where needed preventive and or
corrective actions must be implemented to tackle their effects.
Word Count: 3295
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