8 Pages
2071 Words
Introduction : Business Management Strategy
Business management strategy is a series of plans or strategies by which companies achieve their common goal and vision. So the following assessment will focus on the business management strategy for the hotel Leonardo Hotels. The hotel is located in Berlin and is known for its quality service and facilities. Moreover, complete overview of the strength and the weaknesses of the hotel will be described. Nevertheless, an analysis of the market with PESTLE will and some trends that impact the organization will be mentioned as well. Further, some realistic recommendation will be mention to use strength, overcome the weakness and navigate the threat.
MAIN BODY
Company market position
Leonardo Hotels is a very well-known and repeated organization operating in various countries and the central is located in Berlin. The hotel has a wide range of chains based in Italy, Romania, Hungary and Spain like countries. Moreover, the organization also has a wide range of brand names that are famous for their quality services and facilities that attract and retain customers as well (Alketbi, Alshurideh and Al Kurdi, 2020). Moreover, there is some major competitor in the market as well that affect the organization. Some of them are like other hotel chains, travel agents, Local competitors, online travel agencies etc. These competitors are the reason behind the intense competition in the market that directly or indirectly also affects the organization's revenue as well. Nevertheless, some of the brand name that is very well-known and famous provides the best services to their customer.
Leonardo hotel major customers
Further, the hotel has some key customers like Families, Event planners, Special occasion travelers and people who are culture or art enthusiastic. Those are some major costumer that is the main reason for profit margin as well like the occasional traveler and people enthusiastic are frequent costumer weather families and event organizer are occasional guest as well.
Leonardo hotel product and services
Some of them are Leonardo Royal Hotel, Leonardo Boutique Hotel, NYX Hotels by Leonardo and Leonardo Limited Edition is a family brand as well. Nevertheless, the hotel also provides various kinds of accommodation and services like dining, Special packages and online booking to their guest. Further, the organization is also good at taking sustainability initiatives, technology, loyalty programs and practicing CRM also known as corporate social responsibility (Dah, et. al, 2021). These are the best services that Leonardo Hotels provides and are good at that attract and retaining customers while making a market potion in the industry as well.
Strength and weakness
Strength and weakness are some common factors of the organization that make them unique and provide them an opportunity to grow and develop. So just like that the Leonardo Hotel also had some strengths and weaknesses. Moreover, one of the major strength is Diversified brand names by which the organization easily achieves customer expectation and preference. At the same time, the quality services and parent company that is Fattal Hotel Group help the organization to sustain itself in the market. Further, some of the weaknesses are intense competition and new entries that directly affect the organization in terms of revenue and customer retention (Destefanis, et. al, 2022). Moreover, the economy has been unstable for quite a long time, especially after the pandemic. So Leonardo Hotel can also face challenges and issues due to the Ups and Downs of the economy that impact the internal and external environment of the organization.
Key driver of the company to move forward
There is some key driver that helps the company to move forward in the industry through growth and development. Moreover, some of the key drivers can be described as those following points market condition. The market of hotels was consistently growing from the start but because of the pandemic, it had come to a halt as traveling has stopped due to lockdowns all around the world (Singh and Shaik, 2021). Moreover, after the pandemic, the market is recovering and growing with new and upcoming opportunities in the industry. Nevertheless, according to recent statistics, the growth is estimated to be 1.21 trillion dollars by 2023.
PESTLE analysis
The pestle analysis is the external environment of the organization by which some key drivers can be identified.
Political factor: The political factor can be never remains stable that affect the company operations as well. Moreover like organization has to be flexible enough to adopt new laws because after the pandemic government concern over health care has increased. So the organization can use different methods of leadership so the management can adopt the new changes.
Economical: The economy is in stable condition especially during pandemic many business and work come to a halt. As the inflation and labor cost has been increase that affects the overall profit margin of the organizations (Detailed PESTEL Analysis of Hotel Industry, 2023). So the organization has to make a budget and find new sources of finance to balance the cost and profit while ensuring a smooth flow of capital as well.
Social: The social factor is related to mostly the customer and the society so work according to their needs and demand is always remain first. The hotel has to focus on the hygiene and health safety of the customers because people are aware and concerned after the pandemic.
Technological: There are many new technologies in the industry that the organization has to adopt to attract consumers and investors. Some of the technology is like online booking, the automatic system as well.
Legal: The legal factor directly affects organization reputation in the market and society. So the hotel had to comply with new regulations and laws to maintain and increase the brand image of the organization in the industry.
Environmental: The environmental factor need to be focused especially as people are now aware and concern about it. According to the new trend in the market known as sustainability the organization has to practice CSR to attract and retain the customer.
Impact of trends: In recent times there have been many trends in the industry regarding customers, technology etc. Those new trends also have provided new opportunities for organizations to grow and develop. Some of the trends are like technological advancement because the parent company has all kinds of resources to implement them (Lukanova and Ilieva, 2019). At the same time, one of the famous trends is sustainability as Leonardo Hotel already has implemented CSR practices but they can do more to improve it.
Competitors' different services: Leonardo Hotel has various competitors in the market moreover some of them provide different services than the organization. Moreover, other hotel chains that are more globalized have a strong brand image and resources to provide the guests (Roma, et. al, 2021). Nevertheless, new entries like Air nub provide the customer more affordable with good quality services and some new technological expire as well.
Recommendation to the organization
Some recommendations that can help the company to use its strengths as an option to grow in the industry. Moreover, it can also overcome the weakness and navigate the threat at the same time. Some of the realistic recommendations are as follows:
One of the strengths of the Leonardo Hotel is the parent organization which has resources and financial sources. Moreover, the hotel can implement digital technology in its entire portfolio without any issues or challenges. At the same time, Leonardo also can enter a new market or introduce new services to gain a competitive advantage in the industry. Moreover, the Hotel also introduced a new feature in the organization to obtain suggestion and recommendations from guests (Burnham, 2020). The recommendations and suggestions will help the organization to improve and implement new services to compete in the market as well. Nevertheless, the organization has one of the threats of new entrants that are entering the market with new features and services. The hotel should also adopt the technology and changes with the help of competitive analysis. Furthermore as one of the organization's weaknesses is economic uncertainty they should start joint ventures and collaboration. Moreover, the collaboration will provide them with an opportunity to enter a different market and will also overcome the risk of losses from economic downfall in the existing market. At the same time, organizations can have issues regarding daily operations because of the wide range of hotels. So the hotel can apply different organizational structures like robust to tackle and manage the operations (
Organizational Structure,
2023). Moreover too effectively with teamwork, communication and good leadership. Lastly, the hotel has a good geographic presence in different countries like Italy, Spain and Hungary. By which the organization has made a brand image with the help of a strategic marketing plan. Moreover, digital marketing is one of the options hotels can consider using as well.
CONCLUSION
The assessment has explained the complete overview of the Leonardo Hotel located in much country like Berlin and Italy. Moreover, the overview have covered some important topic like introduction , key product and services, major customer, best services with strength and weakness. Nevertheless, with these the market condition and pestle analysis have done of find the key driver of the hotel with impacts of trends and different series or product provided by the competitor have been described. Lastly some recommendation to the Leonardo hotel have been given to use the strength and overcome weakness while navigate the threats.
References
Books and Journals
- Alketbi, S., Alshurideh, M., & Al Kurdi, B. (2020). THE INFLUENCE OF SERVICE QUALITY ON CUSTOMERS'RETENTION AND LOYALTY IN THE UAE HOTEL SECTOR WITH RESPECT TO THE IMPACT OF CUSTOMER’SATISFACTION, TRUST, AND COMMITMENT: A QUALITATIVE STUDY. PalArch's Journal of Archaeology of Egypt/Egyptology, 17(4), 541-561.
- Burnham, T., 2020. I’ve got an idea! Exploring the antecedents of suggestion sharing in consumer services. Journal of Services Marketing, 34(4), pp.443-457.
- Dah, H. M., Blomme, R. J., Kil, A., & Honyenuga, B. Q. (2021). Organizational Readiness: Key to Successful CRM Implementation in Hotel Industry. In Advances in Hospitality and Leisure (pp. 129-145). Emerald Publishing Limited.
- Destefanis, A., Neirotti, P., Paolucci, E., & Raguseo, E. (2022). The impact of Airbnb on the economic performance of independent hotels: an empirical investigation of the moderating effects. Current Issues in Tourism, 25(21), 3534-3564.
- Lukanova, G., & Ilieva, G. (2019). Robots, artificial intelligence, and service automation in hotels. In Robots, artificial intelligence, and service automation in travel, tourism and hospitality (pp. 157-183). Emerald Publishing Limited
- Roma, P., Panniello, U., Vasi, M., & Nigro, G. L. (2021). Sharing economy and dynamic pricing: Is the impact of Airbnb on the hotel industry time-dependent?. Journal of Hospitality and Tourism Management, 49, 341-352.
- Singh, G., & Shaik, M. (2021). The short-term impact of COVID-19 on global stock market indices. Contemporary Economics, 1-18
Online
- Detailed PESTEL Analysis of Hotel Industry, 2023. Online. Available through: < https://www.edrawmax.com/article/hotel-industry-pestel-analysis.html>
- Organizational Structure, 2023. Online. Available through: < https://www.linkedin.com/pulse/organizational-structure-stellar-human-resource-solutions#:~:text=To%20tackle%20these%20hurdles%20head,improved%20communication%2C%20and%20successful%20teamwork.>
