Strategic Planning Company Background Business Essay

Strategic Planning Compevery Background Business EssayThe founder of the Hyatt Hotel was Hyatt R. Von and Jack D. Crouch. Hyatt R. Von Dehn was eager to brace forbidden of the hotel communication channel and he s aged(prenominal) his sh be in the hotel to Jay Pritzker. The number of the Hyatt came from the compromise amidst Jay Pritkzer and Hyatt R. von Dehn. Jay Pritzker heard astir(predicate) the hotel which has for sale while sitting in the coffee shop c eached Fat Eddies, waiting for his flight. They had a bid between them and in like manner Jay Pritzker and Jack D. Crouch who re granded partner until 1965. The Hyatt Corporation was born on kinsfolk 27, 1957, at Los Angles, International Airport and the name became famous when the Hyatt chain hotel established in Atlanta in the year 1965. The name of the Hyatt became more than popular when it archetypal international chain established as Hyatt Regency in Hong Kong in 1969. In 1980, the Grand Hyatt and Park Hyatt were introduced. It has also name Resort when the Hyatt Resort introduced in Hyatt Regency Mani, in 1980. Today the numbers of Hyatt ar over 340, worldwide.In December 2004, global Hyatt announced it would acquire Ameri-suites, which has suites affiliated to the Blackstone throng. It is a private firm. In 2004, the world(prenominal) Hyatt re brandmarked it name Hyatt Palace. The Global Hyatt and Hyatt palace started to provide better services like Marriott and Hilton Garden Hotels.In December 2005, Global Hyatt announced a second one c eithered Summerfield Suites the affiliation was the Blackstone Group.Thus, in contrary years, Hyatt introduced contrastive Palace, Resorts, etc, so we groundwork encounter the popularity of the chain Hotel nowadays as well. Hyatt Regency is the old Brand of the Hyatt International Hotel. In Kathmandu, Nepal, we gravel Hyatt regency which is Located in the Bouddha on the 4 KM far from the Tribhuvan International Airport and only 10 KM far from centr e city Kathmandu.Strategic PlanningStrategic intend determines where an plaque is going over the next year or more and how its going to get thither. Typically, the process is fundamental law-wide, or focused on a major(ip) function such as a division, department or former(a) major function. Simply put, strategic planning is clarifying the overall purpose and sought after results of an organization, and how those results allow for be achieved.(Mc Namara, September 30, 2010)Strategic Planning in any organization clearly define its strategy or direction by victimisation its avail able resources, making decisions for achieving its strategy including its investment and the manpower. Many organizations can use SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) in strategic planning process. It helps an organization to move up out the future roadmaps, where to go.It deals withWhere are we nowCurrent stake.Where we want to be..ObjectivesHow to go thither.. schemeWhich is the best possible means..TacticsWho is going to do what.ActivitiesHow do we examine safety arrival?Control MeasuresThis is all about the Strategic planning process. If an organization is clear about its mission and vision than it can achieve its universal goals by using its available resources and by using different strategy. Strategy planning is most essential in any type of firm.Ac1.1 Explain the impressiveness of extraneous factors affecting on Hyatt RegencyExternal factors are also called the macro factors. Market purlieu consist of all factors that in one way or some other that affects or getting affected by an organization decision. The macro factors which whitethorn affects indirectly in an organization are--Political-Environment-Social-Technological-Economical- judicialThese all the external factors that may affects in the internal surroundings of an organization. The interior factors like 5 Ms areManagementMoneyManpowerMachineMaterialThe political dis vow of any country may affects in the decision making process in an organization. Similarly the unstable government may be the other factor which may affects to provide the regular service to the customers. Similarly Social factors may include life bolts of the quite a little, age, sex, income of the people, etc. The legal factors, by which legislation in society may affect the concern, e.g. alters in the working hour of the manpower, etc. The term economic affect the furrow in the term of Taxation of the government, demand and tot policy, engage rates, exchange rates, etc.Besides these, the technological issues may affect in the business like how rapid pace of change in end harvesting processes and production of the business. The ethical issues may include the moral lesson like what is duty and what is wrong for an organization to do. It may be culture of the society, norms and values, etc.Thus, we can say that the external factors volition indirectly affects in the business. In stray to get achievement in the competitive market, an organization has to think ahead and act harmonize to the situation of the environment.AC1.2 Analyses the needs and expectations of stakeholders of Hyatt RegencyStakeholders are an integral part of a project. They are the end-users or clients, the people from whom requirements give be drawn, the people who result influence the design and, ultimately, the people who will reap the benefits of your completed project. (Nick Jenkins 2011)Thus, Stakeholders can be a person, customers, group of people who have direct or indirect shares in the organization. In the Hyatt Regency, there are different types of stakeholders in the Hyatt regency, who play an fundamental role in up grating expediencys for an organization. Some of the stakeholders are-CustomersBoard of DirectorsGovernmentStaffsShareholdersSuppliersStakeholdersNeeds and ExpectationsCustomers-good customer service Quality product at reasonable price-Good, warm and peace, en vironmentBoard of Directors(BOD)-high simoleons margin-Bonus-expansion of Business-High TurnoverGovernment-TAX-Security deposit-Community Support(CSR)-Creating job opportunities.Staffs-Secured job-High pay rate-Promotion-Annual pay leave-Intensive and benefitsShareholders-Dividend-Bonus shares-right shares-Loan at low interestSuppliers-Loyalty-Regular supplies-Money on time.Thus different stakeholders have the different expectations and different needs, they want from an organization and thus, they are investing their money within it. So, an organization has to look after each members expectation and make them unified in say to achieve target goals.Ac1.3 Analyses the major changes taking place in the external environment that will affect strategy of Hyatt RegencyPESTLE Analysis This is the macro environment of the company which deals with all the environments which affects the company policy. PESTLE stand for Political, Economic, Socio-Cultural, Technological, Legal and Environme ntal. These all are same of PEST Analysis or PESTLE Analysis. (Andrew Whalley, 2010)Political/ LegalEnvironmental regulation and protectionTaxationinternational trade RegulationThese all are about political and legal issues. Government may change policies, making rules and regulation may directly affect the business. So the Hyatt Regency (a food service industry) should develop its marketing strategy according to government policy.Economic delivery growth (overall by industry sector)monetary policy (interest rates)government spending (overall level, Specific spending priorities)These all about the economic issues, the increasing in the get capacity of the people, Government policy towards unemployment benefits and government taxation will directly affects in the Hyatt Regency strategy.SocialIncome Distribution (change in distribution of disposable income)Demographics (age structure of the commonwealth gender family size and com locate changing nature of the occupations)Labor / Soc ial mobilityThese specifys are all about the Social aspect. The changing in the life style of the people will directly affect on our business, similarly the education will play a major role in the marketing strategic policy.TechnologicalGovernment spending on research.Government and industry focus on technological effortNew dis pouties and developmentThese factors are all about the changing in technology. In this modern age, technology are changing rapidly, like internet, sore discoveries, research, etc will directly affects on the marketing strategy of the Hyatt Hotel. So the hotel has to develop its plan by the above mentioned factors.Benefits of PESTLE in an organization By knowing the topical environment and the external factors, it will better fit(p) an organization for the future than the competitors. It is the useful shots for judgement the risks associated with the market. It will helps an organization to understand Meso-economic and the macro- economic environments in which they operate. (The Meso-economic environment is the one in which we operate and have restrict influence or impact, the macro-environment includes all factors that influence an organisation but are out of its direct control)Ac2.1 Use appropriate tools to analyses the effects of current business plans of Hyatt Regency in that respect are different marketing tools which can be used in an organization in rear to lead the business in the path of success and prosperity. Some of the marketing tools are as determine. BCG Matrix This is called Boston Consulting Group Analysis. This is about chat which has been created by Bruce Henderson for the Boston Consulting Group in 1968. The main purpose of this BCG-matrix is to help the organization business units or product lines. It will help an organization to use the available resources and its brand marketing by using strategic focusing and the portfolio analysis.BCG-Matrix is very important for the manager and its a great tool because for studying it has two aspects. One is for relative marketing share and another one is marketing growth. Relative marketing is about the competitor around business.BCG Growth Share MatrixRelative Position (market share)Fig1. The BCG MatrixStrategic marketing, page 58BCG Matrix is divided into four areas. They areStars Stars are high growth of businesses and the profitability is very high in compare to competitors. More a lot they need the very high investment in order to sustain. Frequently their business will be slow charge and they have to maintain the market. bills cows Cash cows are the low growth business with the relative high market share. This is the successful period and maintain continue profit with less investment. So they continue gives strong cash menstruum to became star in the business.Question Marks This is about the low market shares which operate in high market shares. They will have potentiality but in order to sustain they may invest in the business in orde r to struggle with competitors. The managers will have ideas about which one area should focus and which area should shrink. This is about question marks what to do and what to think.Dogs The dogs refer in business which has low relative shares in uninterestingly.In this period the growth of market will be low. This period may generate enough cash flow to break-even but it is rare.Effects of this model in the organization at that place are different corresponds in the business and the manager should evaluate their business in order to move a straight away with range of investment. The matrix ranks is about market shares, about the industry growth and its profitability. In the dogs period, may be business flowing continuously and may not require cash investment. The second things is that its all about business growth and the estimate or guesswork for the future. In the period of question mark, if the leader is smart and enthusiastic, he may invest lots of cash in order to maintain c ontinuous profit. He should have an idea about time and situation and ability the capacity to grab it. Thus it is all about present situation of the organization and estimate for the future, how to go, where to go and what to achieve.B. crossway life cycle It has been assumption that every product has its life period, it will introduce in the market, it grows, and at the last point it may die. at that place are four stages on it. They are-1. Market introduction stage2. Growth stage3. Maturity stage4. Saturation and radioactive decay stage.1. Market Introduction stage This is the first stage of product life cycle. In this stage an organization has to spend lots of money on advertisement, demand has to be created, no profit margin , no competition at all, and in facts no sales volume.Growth Stage This is the second stage of product life cycle. Here, profit will begins to rise, customers will aware about product, sales volume will increase, will increase competitions, etc. Cost and expenses will reduced and start to have more profits.Maturity stage This is the third stage of product life cycle, here, in this stage, cost of an organization will minimum because of huge production, sales volume will pass on the peaks, brand differentiation and features diversification, and the industrial profits go down.Saturation and decline stage This is the last stage of the product life cycle. Here, in this stage, sales volume decline, prices, profits diminish profit will be more challenges on production volume, etc.http//www.quickmba.com/images/marketing/product/lifecycle/plc.gifFig Product life cycleThe effects of product life cycle use in the Hyatt RegencyAn organization can introduced recent products in the market with fix identify budget.It will help an organization to lead their product globally and in competitive market.It will give general ideas about skills and resources required to despatch new product in the market.Company can focus on the different stages for profit margin.Thus the use of marketing tools use by an organization will help them to come ahead in this competitive world with right products on the right place on the right time.2.2 review the position of an organization in its current market.In order to find an organization position, a company can focus on the different criteria, which are as followExisting market shares An organization should find out how much shares they have and how much percentage covered the market.The current product and services offer The product which is supplied in the market, are up to customer target and these meet the customer expectation or not.Their competitive medium The Company needs to find their strength and their possible criteria in the market.Their current size and location of the market A company needs to understand the market size and their product consume customers, they can calculate to find out their position in the market.Their current planning strategy In order to cover some marketin g shares, planning plays an important role and their strategies for the future.Thus to find out company shares and their spreading products in the market, an organization can do more homework on its own for more quality product, applying reasonable pricing strategy (like different skim), etc. By doing so, a company will boost up with new and new ideas and cover more market shares.2.3 evaluate the competitive strengths and weaknesses of an organizations current business strategies.In any organization, there are some strength and weaknesses on its own. The organization has to find out its strength and its weaknesses on its own. When finding out weaknesses and strength, they can convert the strength in to opportunities and can alert from the potential threats. Some of the strength of Hyatt Regency is as followStrengthLoyal customers Customers are Loyal on the brand of the company. Being international chain hotel, it has its own customers who always loyal and believe on the brands.High quality Products Hyatt regency produce the high quality products by which guest are satisfy form it.High Skilled workforce In the Hyatt regency there are lots of skilled members by which company is getting more popular among others.Locations Hyatt Regency is opened in the heart of centre city Kathmandu, Nepal which is the strong points on its own.WeaknessesInsufficient Resources There are some less resources like Refrigerator, chilling freezer, big utensils for the party, etc.Outdated Technologies The machines and electronics item use in Hyatt regency are old and not working properly.Lack of Planning In the kitchen department, there is improper planning during party time and the busy time. Everyone are getting puzzle because of not clarity of job among them.Thus, if the company can rectify its weakness on its own, this company will lead successfully in the number one position in this competitive market.Ac 3.1 Use modeling tools to develop strategic options for Hyatt RegencyStrategic options are creative alternative action-oriented responses to the external situation that an organization (or group of organizations) faces. Strategic options take advantage of facts and actors, trends, opportunities and threat of the outside world. Strategic options can be identified after an institutional assessment, keeping in mind the aspirations (basic question) of an organization. The tool Strategic options helps to identify and make a preliminary viewing of substitute strategic options or perspectives.There are different types of strategic options use in an organization. such options are- Ansoff strategies, vertical, backwards and forwards desegregation, horizontal integration, differentiation, cost leading, Mintzbergs strategies emergent, leadership and differentiation, strategic alliance, merger, acquisition, competitive strategies, value-based strategy, contingency strategy, etc. Some of them are describe belowMintzbergs strategies There are five definitions of strategi es are-PlanPloyPatternPositionPerspectivePlan In this strategy, the actions are made in advance to which is to apply and this actions are developed consciously and purposefully.Ploy As plan, a strategy can be a ploy too really just a specific man oeuvre intended to take in a challenger or competitor.Pattern A pattern in a stream of actions. Strategy is regularity in behavior, whether or not intended. The definitions of strategy as plan and pattern can be quite independent of one another plans may go unrealized, while patterns may appear without preconception.Position Position means of locating an organization in an environment. By this definition strategy becomes the mediating force, or match, between organization and environment, that is, between the internal and the external context.Perspective Perspective shared by members of an organization, by means of their intentions and / or by their actions. In effect, when we talk of strategy in this context, we are entering the realm of the communal mind persons united by common thinking and / or actions.B. Cost Leadership This is concept developed by Michael Porter which is used in business strategy. The meaning of cost leadership is to operate a lowest cost of operation in an organization. The cost leadership strategy is depending upon organization efficiency, size, scale, and cumulative experiences. The main function of the cost leadership strategy is to find out the scale of production its scope and in other economies, producing highly standardized product and using of new technology. Cost leader companies do compete onpriceand are very effective at such a form of competition, having a low cost structure and management.Ac 3.2 Create options to form the basis of future organizational strategy (p9)Among all the strategic options I would like to recommend Vertical Integration in the Hyatt Regency.Vertical IntegrationThe word vertical integrationdescribes a style ofmanagement control. Vertically integrated compan ies in asupply chainare united through a common owner. Usually each member of the supply chain produces a differentproductor (market-specific) service, and the products combine to satisfy a commonneed. It is contrasted withhorizontal integration. The concept and use ofvertical integration is introduced by Andrew Carnegie.This led other business people to use the system to promote better financial growth and efficiency in their businesses.Vertical integration is the point to which a firm owns its downstream suppliers and its upstream buyers. Contrary tohorizontal integration, which is a consolidation of many firms that handle the same part of the production process, vertical integration is typified by one firm busy in different parts of production (e.g. growing raw materials manufacturing, transporting, marketing, and/or retailing).The Benefits of using vertical integration by Hyatt RegencyHyatt Regency is the chain international service industry. There are many hotels under the sam e management throughout the world, i.e. the same management policy. It has its own brand name products use in every hotels. For example, a company is using its own soaps, shampoos, towels, carpets, etc. Whenever we go, we will find out same quality and same brand name products, thus by being chain hotel, it has same system of servicing guest in each hotel. The same suppliers and manufacturer are engaged in producing guest supplementary product.Thus the vertical integration, a strategic option is the best in this scenario.Ac3.3 For your chosen organization purpose a equal structure that would ensure participation of all stakeholders. (P10)A person, group, organization, or systems that affect or can be affected by an organizations actions are the stakeholders. The stakeholders may be directly or indirectly may involve in the organization decision process. The following chat would be suitable structure for the participation of all the stakeholders in the Hyatt RegencyStakeholdersstrat egiesWay of communicationDuration/timeCustomersResearch on the needs and expectation of the customers, involving customer service department.Flip card, survey3monthsStaffsInvent new products, Technicians, recruitment on research.Meetings with managers, survey and feedback, presentation, spot training, job trainings1 monthshareholdersawareness about new productsInternal meetings,1 monthGovernmentBOD(board of director) accounting entry new product which has to be environmentally friendly, not affecting by government policies.Financial structure for the purposed plan, giving executive decision,Invitation on seminars, presentationNewspapers, meetings15 daysUp to 1 monthThus different stakeholders can participate in the organization decision process and launching of the new products according to their label.AC4.1 Develop criteria for reviewing potential options for a strategy plan (P11)There are different strategy plan for reviewing potential options are attractiveness to stakeholders, match create card salute, stakeholder participation, feasibility studies, etc.Balanced scorecard approachThe balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. (2011 Balanced Scorecard Institute )http//www.balancedscorecard.org/Portals/0/images/balancedscorecard.jpgAdapted from Robert S. Kaplan and David P. Norton, Using the Balanced Scorecard as a Strategic Management System, Harvard Business Review (January-February 1996) 76.The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. The balanced score card have four perspective in order to develop metrics, collect data and analysis it. These four perspectives are as followThe learning and growth perspectives This is the growth phase of the organization. This includes employee training and corporate ethnical attitudes related to both individual and corporate self-improvement. Here, employee skills are the most important factors than other else.The business process perspective These perspectives indicate internal business processes. poetic rhythm based on this point of view allow the managers to know how well their business is running, and whether its products and services conform to customer requirements.The customer perspective These perspectives indicate how important customers are. Customers needs and expectations are the most important factors in this area. If the customers are not satisfy, they will choose the other options and our business w ill be on the decline stage. Thus we have to meet their needs and satisfy them.The financial perspective Timely and accurate funding data will always be a priority, and managers will do whatever necessary to provide it. It is more over related to financial status of the company.Thus, balanced scorecard approach is the best approach to find out the plan and progress report of an organization.Ac4.2 Construct an agreed strategy plan that include resource implicationIn order to launch the new product from the Hyatt Regency, we have to analysis, assessing and addressing issue. To analysis the current situation, SOSTAC is the best methods to evaluate.S stands forSituation Analysis which means where are we now?Ostands forObjectiveswhich means where do we want to go?Sstands forStrategywhich summaries how we are going to get there.Tstands forTacticswhich are the details of strategy.Ais forActionor execution putting the plan to work.Cis forControlwhich means measurement, monitoring, reviewi ng, updating and modifying.Situation analysisIn the situation analysis, we are in this position and we want to reach.. in this position.ObjectiveIncreased no of customer by %, brand expansionStrategiesLaunch new product within .. Months.TacticsBreak down the strategy in to action, investment decision, new market shares, differentiationActionCompany tactics into action, planning about finishing .within 1 month will finish with in 2 month, survey on the effects, feedback..cost, location, etcControl MeasuresControl measures through monitoring, new technologyAc4.3 Compare core organizational values (ethical, cultural, environmental, social, and business) with the current business objectives of an organization. (P13)A business objective is a detailed picture of a step you plan to take in order to achieve a stated aim. Objectives should be SMART in order for the business to know what progress it has made towards achieving the objectiveSpecific clear and easy to understand.Measurable i.e . able to be quantified.Achievable possible to be attained.Realiable- Durable andT stand for time bound.In order to get the objectives of the company, the organization should focus on ethical, cultural, environmental social and business factors.Ethical In order to operate the business the company not only should look forward for the profit but should also look for norms and values of the society i.e. either the product of the company accepts by the society either it match with the society standard or not, right to life, right freedom, and right to privacy, such things are lies under ethics.Culture Culture includes life style of the people, demand, age group, etc. The product what we launched in the market should focus on the people lifestyle and the demand of the people.Environmental The Company should bring such a product which should be environmentally friendly. The product should not harm the environment from inside the organization and outside the organization.Social The produc t should be community based like preservation of the wildlife, ecological friendly. In society there are various types of community and the product should focus on the societies norms and valuesBusiness Business makes things happen and affect every part of our society. Whatever you want to do, understanding business will help you achieve it.Thus the Hyatt regency if launched a product in the market, the above mentioned points has to consider in the mind for the better product and creation better life.Ac5.1 Develop appropriate vision and mission statements the organization. (P14)MissionA mission report is the head and the heart of an organization and serves as the lens through which organizational programs and strategies are viewed.In this case a mission statement should be closer to the social need rather than the visionary social impact. A mission statement evolves as the social need evolves while also remaining anchored to the vision. In this context, a facilitator also has a rol e for helping an organization understand its mission as well as its vision.The following illustration creates the linear processSocial Need == Mission == Programs/Strategies == pile of Social Impact.VisionVision creates that force of growing expectation about the future, where change is embraced as a step closer to that very compelling picture of whats coming next. The rubor about the future trumps any worry about the unsure change is recognized as the catalytic converter it is. Vision is being able to see where youre going, to see whats up the road ahead, in both literal and symbolic senses.