Linh Nhat Le Daniel Jarosz Strategic Management Prof. Nicolas J. Hadgis Introduction Before Westward’s was Purchased by Hiller. Poor financial records, poor management, and poor maintenance of quality and building. After Westward was purchased by Hiller. Mr. Green, a seasoned hospitality professional, was in charge of running the business. Excellent management (referencing Golden of profitability) Environmental Analysis The broad environment The industry analysis Strategic issues facing the industry Broad environment Social factors Increase in millennial travelers Growth of international market Popularity-gaining of group travel Gourmet-preferred trend Younger workforce Social media & online interaction Sustainability tourism Broad environment Economic factors Economic recovery Competition in airline industry Emphasis on health and wellness Increase in direct booking Broad environment Technological factors Demand for high-tech Focus on individualism & automated devices Free Wi-Fi is associated with luxury service Portable office Broad environment Political factors Increased minimum wage Arrival of migrant workers Industry analysis Customer Group travelers require price discount Uniqueness is a must Service quality over price Request for reasonable price components Industry analysis Supplier Basing on the level of importance & usage frequency Basing on the differentiation Industry analysis Competitor Slow growth in Phoenix market Oversaturated area 12 top-notch hotels The Boulders (5-star) Arizona Biltmore Resort and Spa (5-star) JW Marriott Desert Ridge Resort and Spa (5-star) Sheraton Wild Horse Pass Resort and Spa (5-star) Ritz Carlton Phoenix (5-star) Arizona Grand Resort (5-star) Hotel Palomar Phoenix (5-star) Wigwan Resort (5-star) Royal Palms Hotel and Spa (5-star) Sheraton Phoenix Downtown Hotel (4-star) Tempe Mission Palms hotel and Conference Center (4star) Pointe Hilton Tapatio Cliffs Resort (4-star) Industry analysis Substitutes Economy or midscale hotels. (Over 150 in Phoenix) Resorts Industry analysis Potential entrants Large economies of scale Great capital investment High switching costs Position in distribution channels Level of differentiation Strategic issues Requirement for survival Serve sufficient number of customers Provide acceptable level of service quality & products quantity Balance between expense & revenue Maintain a moderate management skills & team work Strategic issues Key success factors Provide exceptional, sustainable, & consistent service Be aware of current trends and issues Focus on human capital Execute cooperating leadership style Organizational Resource Analysis Strategic direction Analysis of internal environment Analysis of resources and capabilities Performance evaluation Strategic direction Mission Employees’ lives are made better by treating them with dignity, rewarding and recognizing their contribution to our success, and providing a safe, secure, flexible, and fun working environment. Customers’ lives are made better by providing safe environment, excellent service, friendliness, and that extra thoughtfulness that makes visiting Westward like visiting a friend. Owners’ lives better ensuring that the hotel is a leader on return on investment. Strategic direction Vision Strategic direction Values Dignity Values Focus Achievement Balance Internal environment Owner Major investor – Karen Connor – share the organization’s culture and values Parent company – Hiller Enterprises – provide a strong financial support Internal environment Management Executive vice president of operations: Peter Green Has 20 years in the industry Believe in the future of Westward Communicate & model values and belief Care for the employees Enhance contact with the customers Be reluctant to delegate responsibilities Internal environment Employee Treatment with dignity and respect Employment basing on matching values On-job training with coworkers Enhancement of cross-level communication Wage & reward system relying on hotel’s overall performance Performance appraisal is separated from reward system Internal environment Customer Service built on relationship between customers & employees Listening is the key to customers’ satisfaction Unique feedback system Feedback sharing with employees Internal environment Culture Respect the value of team work Create an environment where employees can be themselves Establish family-oriented atmosphere Resources & capabilities Have a unique value in the market Be hard to substitute Have a culture that value such resources and capabilities Have been successfully using them Strengths SWOT analysis Excellent leadership Motivated and productive employees Well-established reputation Weaknesses Top leaders are unwilling to delegate Yield management is skewed No future successor’s followed by Green Opportunities Threats The increase in international market Oversaturated market The increase in Millenial customers who target luxury segment increase in minimum wage The growth of group travel Economic recovery Migrant immigrant influx Technology boom Performance evaluation Corporate-level Hiller Enterprises – diversification strategy in unrelated industries Hiller Hotels – diversification strategy in related industries Business-level Westward Hilton – best-valued strategy Developing a Strategic Plan Future’s strategic direction Business strategy Evaluation of opportunities and recommendations Implementation and control Strategic direction Mission Employees Provide training regarding skill set Emphasize organizational commitment Represent a creative and high-tech enterprise Strategic direction Customers Provide a high-quality service Tie quality with a reasonable price Respect the cultural differences Owners Take advantage of emerging opportunities Expand the property’s profit Strategic direction Vision Emphasis on the loyalty in the relationship with customers by providing more personalized service and forming a diversifying environment to serve the international sector. Strategic direction Values Diversity Fairness Creativity Ambition Interpersonal communication Loyalty and commitment Business strategy Best-valued strategy concentrate in the core business using its unique culture and workforce spirit Recommendation & Implementation Strengths Excellent leadership Motivated and productive employees Well-established reputation Weaknesses Top leaders are unwilling to delegate Yield management is skewed No future successor’s followed by Green Opportunities Threats The increase in international market The increase in Millenial customers who target luxury segment Oversaturated market increase in minimum wage The growth of group travel Economic recovery Economic recovery Technology boom Migrant immigrant influx THANK YOU