Analysing strategic planning of hyatt

Analysing strategic supplying of hyattIn 1957 Hyatt was established by Jay Pritzker by purchasing the Hyatt House motel next to the Los Angeles world-wide Airport. After few years, Pritzker family, developed into a North Ameri fag end heed and hotel ownership company, which became a public company in 1962. In 1968, Hyatt International was organise and subsequently became a separate public company. Hyatt Corporation and Hyatt International Corporation were taken private by the Pritzker family subscriber line interests in 1979 and 1982, respectively. On December 31, 2004, advantageously every last(predicate) of the cordial reception pluss owned by Pritzker family headache 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, industriousness leading tags and a tradition of innovation developed over its more than fifty-y ear history. Hyatt manage, franchise, own and develop Hyatt branded hotels, resorts and residential and spend 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 up market travellers six distinct brands Grand Hyatt, Park Hyatt, Hyatt Place, Hyatt Summerfield Suites, Hyatt Resorts, and Andaz. Hyatt often struggles to maintain its market sh be over its other competitors i.e. Hilton worldwide and Marriott international Inc. in some abroad 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 thickenings. The companys properties sh are core values and they offer exceptional guest work, 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 menaged on its mission to operate the worlds finest collection of hotels. persona 1.1 Reason for choosing HyattAfter searching the bailiwick for assignment I find it interesting to study to the highest degree the Hyatt Hotels Corporation. In order to hunch forward its strategies and management policy which has unable it to gain a freshet of success worldwide in last few years.Section 1.2 Aims and Objectives The main aim of the dissertation is to reckon the strategic planning and to know its implementation by the case study.Objectives1) To conduct the summary of strategic planning.2) To study the implementation of strategic planning.Section 2 Literature Review2.1 Marketing planning and principlesIt is important to understand what is mean t by market. The following definitions of trade have been provided by the authorities indicatedThe aim of marketing is to know and understand the customer so hygienic that the harvest-feast 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 exever-changing products and value with others. thus marketing means identifying and merging human and social require.Marketing is meeting inescapably kaleably, marketing means understanding what are the exact needs? group 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 opposition.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 twain parties. Each ships c ompany 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 obtainers and sellers was meeting to buy and sell the trustworthys (like grain markets, cloth markets etc.). In modern-day 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, marketin g 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 strive organisational goals of the company, universe more effective than competitors in creating, delivering and communicating superior customer value to its chosen target market.Strategic marketing planningThe process of ontogeny and maintaining a strategic fit between the makeups 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 important1. Develop a mission statement According to Philip Kotler and gary Armstrong, 1996, A m ission statement is a statement of the organizations objective 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 v 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 supporters us to know how to come across 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. writ of execution of marketing mix.6. Investment of money and resources.7. Co-ordination of all organisational departments.Marketing dodging 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 foll owed 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 employ by supervise, controlling and evaluation to en convinced(predicate) that the organisation achieves its optimum goal and targets.Goal /TargetImplementationVisionMarket AuditAnalyse current position and opportunitiesMarket researchGain schooling on marketMarketing Mix engage customer to buy the productObject ivesMissionMarketing strategyMarket analysisMarket segmentationQualitative psychoanalysisConsumer analysis/testquantitative AnalysisPlacePrice point of intersectionPromotionMonitoringControllingEvaluationStrategy formationFigure 1.1 The Steps in the development of a Marketing plan2.2 Techniques and toolsThere are several tool and techniques which send away be used for forming strategy for an organization. These tools are as follows1. Ansoff Matrix2. beat analysis3. Portars five forces.2.2.A. Ansoff MatrixThisis a tool which can be use to produce strategies of an establishment. This set aparts an idea to expand current business by forming youthful strategies. This ground substance can be use as a guide to choose a plan of action for the present performance. The matrix has four levels, as underCURRENT PRODUCTS NEW PRODUCTSMARKETPENETRATIONPRODUCTDEVELOPEMENTMARKETDEVELOPMENTDIVERSIFICATIONCURRENT MARKETNEW MARKETFigure 1.2 Ansoff matrix witnesser Stone P. (2001) make marketing w ork for you boost your profits with proven marketing techniquesMarket 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 marketDiversification This can be connect to product or market or unrelated to both.Above mentioned factors can be used while planning a strategy of an organization2.2. B. SWOT analysisIt is a strategy planning tool which analyses the strength, weakness, opportunities and nemesis 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 immaterial. Those factors areINTERNALFACTORSWEAKNESSESSlow internal decisionsMinimum recoursesHigh terms baseLimited for specific segmentTake time for transportatio nDeficiency of expertsLocation of the marketSTRENGTHSBrand imageSkilled workforceGood systemsMonopoly of the brandStrong customer loyaltyImprovement in the productLocation of the marketMARKETINGSTRATEGYOPPORTUNITIESBooming EconomyGood design productCredit facilitiesGovernment policy changeNew technologyDeveloping marketNo strong competitionTHREATS attention reputationGlobal competitionHostile legislationProduct limitationNew competitionPrice warDeclare taxation to productEXTERNALFACTORSFigure 1.3 SWOT Analysis TableStrength The establishments strengths are its potentials and wealth.Weakness The lack of the some strength is considered as weakness.Opportunity The environmental analysis whitethorn 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 pass ons 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 formulation2.2.C. Porters five forcesPorter five forces are used for analysing the industry and for formulating a strategy. If SWOT analysis is used together past it is very beneficial for an organizationIndustry competitionRivalry among existing firmsBargaining power of supplierBargaining power of BuyersThreats of substitute products or serviceThetas ofnewentrantsFigure 1.4 Porters five forces blood lineBargaining power of supplierThe power of supplier tends to be high during whenThere are large numbers of suppliers in the market.Where there is a scarceness of particular item.Bargaining power of customersThe bargaining power of customer helps organization to know the capacity of customers to put pressure on volumes and margins.Mostly the consumer will bargain whenWhen they buy in large quantity.The products are of very high costThe customer can make those products.Threat of new entranceThe other compan ies 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 PlayersIf there is more competition in the current companies then automatically pressure goes on pricing and so the profitability. Porter M (2008)2.3 StakeholdersThe stakeholder is any group or individual who can affect or is modify 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 stage of very large organization. (Friedman Miles 2006)FirmsOwnersFinancial CommunityActivist groupsCustomersCustomer advocate groupsUnionsEmploy eesTrade associationsCompetitorsSuppliersGovernmentPolitical GroupsFigure 1.5 Stakeholders Freeman (1984)2.4. Strategic optionTo develop a marketing strategy there can be legion(predicate) ways which can be adopted by the company to face the present fiscal power. 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 tranquillize if proper marketing strategy is make 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 MethodResearch may be simply defined as the systematic search for knowledge and this has two key elements. The setoff 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 do accessible to ot hers. Research must be capable of being reported in enough detail so that a specific study is replicable and because publicly verifiable.Secondary selective information analysis can be literally defined as second-hand analysis. It is the analysis of data or information that was either self-collected 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 touristry 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 fi gure on tourism numbers or numbers of participants in sport. In a sector where research bills 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.AdvantagesDisadvantagesTiming 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 analy sis/manipulation of the data of the current project may be limited.Section 4 Data PresentationHyatt.jpgMission and vision statementsMission and vision statements plays important roles in any organization, which shows the way for company to make forthcoming 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 because they can improve their performance. It also gives an idea about the forest benchmark of an establishment.Mission of HyattAccording to the one-year report of Hyatt Hotel Corporations (2009) they set the mission is to provide honest hospitality by making a difference in the lives of the people we touch every day.It shows t he standard of an organization and with this mission statement, they can motivate their ply to give executive service to the customers with which company can earn profits and goodwill as well.Goals of HyattIncreasing the engagement of their associatesIncreasing the guest service and meeting planner satisfaction levels in their propertyIncreasing their share of revenue in their market andMaximizing operating profits and margins for their property.Further expand our front by increasing the number of hotels in our portfolio andActively manage our capital base to drive preference for our brands.With this goals company can grow in this inlet period in the competitive industry.Environmental ObjectivesHyatt puts more attention on environ mental factors in order to help to reduce global warming. The companys trueness 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 c ommitment 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 answerable and Caring EmployeesEthical ObjectivesHyatts follows its ethical values in from each one department .Those values are as followsHyatt 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 ObjectivesThe Hyatts cultural objective is to give authentic hospitality service and strives to make a difference in the life of guests.Business ObjectivesThe 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 chance Hyatt tries to complete these objective, hence though the current financial market conditions are not good still it has not been affected.Marketing EnvironmentThe changes in marketing environment of Hyatt can occur in following areasEconomic forcesThe 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 boilersuit 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 changesThis 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 jurisprudence by the government, which in return can affect the organization.Natural environmentIt involves natura l 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 STRATEGYFollowing is the timetable for implementing a strategy for developing a new branch of Hyatt.PLANTIMERESOURCESBuilding new property for hotel.2 YearsCapital, Labor, machineriesCompleting hotel interiors1 YearFunds, Skilled personnelEstablishing new teams and tasks for the establishing infrastructure.6 monthsRecruiters, employees at workTraining and preparing employees.1 YearEmployees and trainersLegal works3 monthsDetail InformationMarketing of the property6 MonthsSkilled supplyBooking opening1 weekInternet, AdvertisementsHotel opening.Th e 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 ProcessThis 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 followsResearch 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 s howed to top-management of the company. After analysing the facts by them, the feedback is given. And later on that a project is carried ahead.This dissemination policy helps an organization to know the following information before starting the projectGives rough idea about the funds required for the projectThe requirement of staff and their training needs can be analysed.Gives scope for the promotion of the project.MONITORINGOnce the new strategy is implemented in the organization, then monitoring is very important. The management should on a regular basis 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 STRATEGYThe 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 qualityFeedback from the suppliers and dealers.After sales proceduresPromotion 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 HoldersBelow mentioned are the stakeholders of HyattGuests / CustomersInvestorsEmployeesCommunitiesSuppliersGovernment and regulatorsNon government organization(NGO)Stakeholders lodgeHyatt strongly believes t hat 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 stakeholdersEmployees 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 relegate 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 ConclusionThis 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 learn 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 boilersuit 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 resea rch and marketing. But as I said it was difficult to do the research in depth, due to time barrier.