Case Study Based on Hyatt Hotels

Executive summary
As a key management process, strategic planning is now in vogue again. However, there has been little
research that has measured the effectiveness of the planning despite the large amount of strategic
planning literature. Changes in the business environment lead to new and increasing demands on
strategic systems of planning. Furthermore, given that strategic planning aims solely at improving
strategic performance, an important management task would appear to be improving, evaluating and
monitoring the efficiency of the strategic planning process. This paper provides a strategic diagnostic
tool for hotel Hyatt.

Table of Contents
Executive summary.....................................................................................................................................1
Introduction.................................................................................................................................................2
Body of the Report......................................................................................................................................2
SWOT Analysis.........................................................................................................................................3
PESTLE Analysis........................................................................................................................................4
Hyatt’s International Expansion...............................................................................................................5
Porter’s Five Forces.................................................................................................................................6
Future Development...............................................................................................................................8
Mission Statement...................................................................................................................................8
Recommendations.......................................................................................................................................8
Conclusion...................................................................................................................................................9
References...................................................................................................................................................9
Introduction
Hyatt was established in 1957 by Jay Pritzker when he bought the Hyatt House Motel next to the LA. In
the following decade the company was developed into a North American management and hotel
owning company, which became a public entity in 1962, along with other Pritzker business interests.
Hyatt International was founded in 1968, and afterwards became an independent public enterprise. In
1979 and 1982, Pritzker's family business activities respectively took over privately from Hyatt
Corporation and from Hyatt International Corporation. On 31 December 2004, much of Pritzker's
hospitality properties, such as Hyatt Corporation and Hyatten International Corporation, belonged to
one single company, now called Hyatt Hotels Corporation and were united under one single entity. By 31
March 2010, Hyatt operates, owns, licenses and develops worldwide 434 properties.

Under the leadership of the President and Chief Executive Officer and supervision of the Board of
Directors, the company is carried out by its staff and officers in order to improve the company's long-run
worth to its stockholders. The board is chosen by the stockholders to supervise management and ensure
that stockholders' long-term interests are represented. The Board acknowledges the long-term interests
of holders, in accordance with the expectations of other stakeholders (e.g., partners, visitors, property
owners, vendors, the public and community members in which Hyatt Hotels Corporation operates),
whereby they be promoted.

This report analyzes the how strategic planning plays a major role in organizational competencies and
how the external challenges in hospitality and tourism operations. Further the prerequisite of the of the
accurate competencies will be evaluated for the challenges of globalization.

Body of the Report

Provide an evaluation of the way in which the corporate culture of Hyatt supports its strategy and an
assessment of the ways in which the corporate culture may need to change if the company is to achieve
its strategic objectives for the future

'The technique the organization’s objectives and capacities and the changing marketing opportunities
are developed and maintained in a strategic fit. It depends on having a specific vision for the
organization to support goals, a good portfolio of businesses and organized practical strategies." (Philip
Kotler & Gary, 1996). Hyatt re-aligned business and geographic activities in October 2012 in order to
improve efficiency and adaptability. The amendments were made to make creativity easier and further
advance the aim of the business to become the preferred brand for hospitality. During the expansion
and development expected for all brands in many countries in the next couple of years, operational
changes were planned in order to adapt Hyatt rapidly and efficiently to the needs of our guests and
hotel owners. The Real Estate and Capital Strategy Group and the Global Operations Center have
created two new features. The Global Operations Center is responsible for ensuring that the operational
segments of Hyatt work according to company-wide guidelines and values.

Global companies are developing and building in a fast-moving, high-speed changing world. Inside
businesses and markets, cultural transitions are accelerating every day and leaders and workers expect
to truly embrace a VUCA-volatility, uncertainty, complexity, and ambiguity. Global competitive
awareness in the workplace is required deeper and more concentrated, particularly as higher levels of
automation and digital technologies become standard. Greater resilience and ingenuity must affect
respected judgments and help solve and make decisions more quickly. In order for a forward-looking
organization to be built, leadership needs to develop a vision for the business that is easy to
comprehend and to understand, and a genuinely meaningful and strategic oriented objective. The
future-oriented company has to have a community that balances all workers' behavioural preferences
— freedom versus control, cooperation versus independence, flexible experimentation versus organized
discovery, non-confrontation versus strong integrity, personal responsibility versus team relations.

SWOT Analysis
It is a strategic planning method to analyze the strength, weakness, opportunities and threat of a
company or initiative in particular. It recognizes the factors that can encourage or deter the company,
both internally and externally.
PESTLE Analysis
A PESTLE analysis provides a basis for the analysis of important factors affecting an external organization
(political, economic, socio-economic, technical, legal and environmental).
Hyatt’s International Expansion

Language and Cultural Barrier

It goes without saying that communicating would be a problem if you do not speak the same language
as your customers. You need one or more people who speak the local language in your team. The
realities of your new competition need to change in your company. Maybe to comply with the
enforcement requirements or to get the latest niche market for one of your products. You may need to
revise business practices. Regardless of the specifics, you must be confident that you truly blend in with
your new setting.

Local Competition

You will inevitably conflict with competing enterprises when spreading into new territories. It is
necessary to start ties with companies abroad and use them to support the growth of your company.
Those businesses will offer many benefits of local experience and skills. You can provide the best
offerings to their clients by partnering directly with them or support them to find your own customers,
which makes the transition to trading so much simpler in your target market.

Compliance and Tax concerns

Take a rational, unpleasant solution to these questions by hiring the right team. Study the specifics to
make sure that you appreciate what you have to do. Ultimately, most of the tax and legal provisions
include checking the correct box, so make sure you know which box you need to tick before extending.
In the absence of enforcement requirements in a region in which you want to expand, not only will the
growth plans stop but extra expenses may also be created in your country of origin.

Risk in Supply Chain

You might actually overstocks or understood key items and may even pay more than you intended if you
do not compete with an unpredictable rival. It is far better to prevent unforeseen surprises through
doing due diligence and a strong strategy.

Managing the Human Capital

As Shopify states, "but if well handled, improved incomes and earnings will effectively pay for more time
and/or personnel to better run the new micro multinational." Have you recruited the latest members of
your team to satisfy your growing time demand? Do you have the requisite export infrastructure? Are
you prepared to use all of the financial and logistical records as necessary? You must ensure that the
organization, in order to prosper and develop quickly, is 100% equipped for the threat of foreign trade.

Porter’s Five Forces

In an essay in the 1979 Harvard Business Review, E. Porter proposed a model. The Porter's Five Forces
Model is a strategic management tool which helps in the identification of an industry's competitive
landscape.

 Threat of New Entrants

 Bargaining Power of Suppliers
 Bargaining Power of Buyers
 Threat of Substitute Products or Services
 Rivalry among Existing Firms
Future Development
With the new global crisis situation there are innumerable actions to be taken to each market
establishment style season of the year environment etc. security levels flexibility of the organization
when it comes to booking hotels Hospitality with the hotels current condition needs to be taken as a
crucial fact. When it comes to marketing to the new normal it is important to use technology as a
contingency tool. Implementing a strategic in a ration there what is needed to be in the gap between
the current state and organization should be in future should be a main question that needs to be
answered in the key success factors.

Effective businesses are driving strategic innovation by 7 factors: developing vision, developing business
case for innovation, celebrating disruptive practices, bringing in external partners, highlighting
quantifiable possibilities, formalizing structural innovation, and developing multi-dimensional innovation
approach and practice.

Mission Statement
In every organization, mission and vision statements play an essential role that demonstrates how
business should prepare ahead to accomplish its vision. This vision offers the direction and staff a way to
live. The aims of corporations for the next ten years are also shown. Vision is achieved by having the
goals in mind and precisely when they will be in the future. Mission Statement describes an
organization's features and values, so workers can enhance their efficiency to recognize the standards of
the organization. It also provides an idea of an establishment's efficiency benchmark.

The Hyatt Hotel Corporations (2009) Annual Report states that it is the aim "to provide genuine
hospitality by changing the lives of people we touch each day."

It demonstrates the standard of an enterprise and can inspire its employees to serve clients for which
the businesses can therefore make money and goodwill.

Recommendations
In marketing trade 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. It is hard to overestimate the value of the right hotel marketing
strategy, for it is a core element to open a hotel, optimize the number and credibility of the reservations
you create, develop brand image and manage. Important tactics below and such particular strategies
can also be implemented at any point in the context of the global COVID pandemic.

 Creating an effective marketing website for the customers

 Increase the engagement of the hotel’s social media presence
 Great customer service team to be proactive on customer inquiries
 Highlighting the hotel safety and marketing it to the guests clearly
  Emphasize on the Leisure
 Provide flexible cancellation policies
 Concentrate on personalization marketing

Conclusion
This case study helps to understand the marketing strategy in details, impact in the internal and external
factors and the concepts in details on their principals, processes and the techniques to learn the
marketing mix. Further development of the strategy can be a great outcome when it comes to an in-
depth analysis for a great learning experience.

References

Erhardt, N., Martin-Rios, C., & Chan, E. (2019). Value co-creation in sport entertainment between internal and
external stakeholders. International Journal of Contemporary Hospitality Management, 31(11): 4192-4210.

Markides, C. (1997). Strategic innovation. Sloan Management Review, 38, 9-24.

Martin-Rios, C., & Ciobanu, T. (2019). Hospitality innovation strategies: An analysis of success factors and
challenges. Tourism Management, 70, 218-229.

UKEssays. (November 2018). Hyatt Regency Marketing Analysis and Strategies. Retrieved from
https://www.ukessays.com/essays/marketing/hyatt-regency-marketing-analysis-and-strategies-marketing-
essay.php?vref=1

Evans, N. (2020). Strategic Management for Tourism, Hospitality and Events (3rd ed.). Routledge.

Hyatt Corporation (2019a). Hyatt Plans to Expand Global Luxury Portfolio With More Than 20 New Hotels and
Resorts by the End of 2020 (Media Release). Hyatt Corporation. https://newsroom.hyatt.com/news-releases?
item=123916.

Hyatt Corporation (2019b). Hyatt Reports Fourth Quarter 2018 Results (Media Release). Hyatt
Corporation. https://s2.q4cdn.com/278413729/files/doc_news/Hyatt-Reports-Fourth-Quarter-2018-Results.pdf.

Okumus, F., Altinay, L., Chathoth, P., & Koseoglu, M. A. (2020). Strategic management for hospitality and
tourism (2nd ed.). Routledge.

Raval, A. (2014, March 18). Hyatt opens up and bets on expansion. The Financial
Times. https://www.ft.com/content/99c6bdf4-ae45-11e3-974d-00144feab7de.

Grebenshchikova, L., & Yakushev, N. (2017). Definition of Competitiveness of the Enterprise Using the Five Forces
of M. Porter. Bulletin Of Kalashnikov ISTU, 20(3), 51. doi: 10.22213/2413-1172-2017-3-51-53