Strategic Management Process in Hospitality Industry: Presented by

Presented by:
Group - 3
Strategic Management Process

In Hospitality Industry
Olyvia Das-20191065 Vamsi Chennuru-20191116

Adarsh J Naik-20192301 Shagun Prakash-20192245
Rimi Chatterjee-20191078 Sakshi Sharda-20192341
Mayuri Hedau-20192323 Shubham Tripathi-20192348
Mission Statement
INDIAN HOTELS COMPANY LIMITED
“To improve the quality of life of the communities

we serve globally through long term stakeholder
value creation based on Leadership with Trust”.
MARRIOTT INTERNATIONAL
“To enhance the lives of our customers by creating

and enabling unsurpassed vacation and leisure
experience.”
Environmental Analysis :
 Competition: The hotel industry in India is highly fragmented with numerous small and unorganized players dominating
the market. It has witnessed a shift in favour of the mid-market and budget hotel segments, along with the development of
hotel aggregators in the budget segment that has led the massive and unorganized hotel industry towards consolidation.
 Regulations: There are a total of 32 licenses / regulations required to open and operate a hotel in India. These regulations
are for establishment and commissioning of hotel, the operation, management, and maintenance of hotel, taxation,
employment, and contracts in hotel.
 Technology:
• Virtual reality - VR enhanced customer experience when exploring the surrounding area. For an average customer, VR
provides more accurate information related to booking a hotel room.
• Big Data - Big data is now a key concept that those in the hospitality sector must be aware of. Moreover, it identifies
patterns and trends in the business. It also brings various benefits to a company. Among these are improvements to
revenue management, targeted marketing, customer experience, additional services, and competition information.
 Market Trends:
 Conscious travel
 Smart rooms and easy integration of systems
 Use of AI
 Personalized guest experience
 Economic trends: In the past years, the rising global tourism fuelled the growth of the hospitality space. Now, it has
spanned into a broader range of services that accommodate the needs of each and every unique traveller. Technology,
affordable transportation, and enriching travel experiences are only some of the factors that have driven global
tourism into its current state.
ARR of the hotel industry in India stood at INR 5,844.81 in FY 2019 as against INR 5,527 in FY 2016, and is
expected to reach INR 6,707.46 by FY 2024, expanding at a compound annual growth rate (CAGR) of ~3.16% during
the FY 2020-FY 2024 period. RevPAR of Indian hotels stood at ~INR 4,002.76 in FY 2019 and is expected to reach
INR 5,305.91 by FY 2024.
The Taj Hotels: Organization Self-Assessment Resources
Financial Physical Human Technological Capital

Resources: Resources: Resources: Resources: Resources:
Taj has access to huge Taj hotels own 110 Taj has Investments in Indian Hotels The Taj hotels which
amount of the financial properties it has Fixed employee training: Rs7.47 Company Limited are owned by the
resources through various Assets worth Rs 6,538 Crore and Investments in (IHCL) obtained a Tata’s carry brand
means like banks etc. and Crores and total land bank employee engagement trademark for the Taj image of their parent
it also has support from area of 970 acres. Taj uses initiatives and recognitions: Mahal Palace Hotel, company in its
its parent company the the most advanced Rs 51.40 Lakh . Real-time giving it the unique domestic market and
TATA business private technologies that are engagement through V- advantage of being around also in their
ltd. Healthy 48% stake of available in the market to connect, daily meetings the first building to international markets.
institutional investors in provide best services to its and briefings, Monthly receive a trademark Their brand image
IHCL: Foreign customers as their town halls and Employee in India. and loyalty are very
institutional investors: requirements tends to committees, union meeting. high in the domestic
12% and domestic change depending on the They also invest in Safety and international
institutional investors: market position. By using and security and wellbeing market.
36%. It has market sophisticated technology it of the employees.
capitalisation up 21% y- will be a step ahead of its
o-y. competitors in satisfying its
customers.
Marriott International: Organization Self-Assessment Resources
Financial Physical Human Technological Capital

Resources: Resources: Resources: Resources: Resources:
Marriot remain committed At year-end 2019, they Marriot invest US$100 million The company has rolled out a Capital expenditures in 2019
to their asset-light business had 2,144 company- per year on training alone. It is a design-thinking lab at one of increased by $97 million
strategy, with 99 percent of operated properties key part of their employment its hotels for crowdsourcing compared to 2018, We expect
their worldwide rooms (584,879 rooms) which package, which is designed to customer feedback; an IoT spending on capital
managed or franchised. This included properties under attract and retain the best “room of the future” meant to expenditures and other
allows them to generate long term management people. More than 730,000 hotel showcase how new investments will total
meaningful cash flow with or lease agreements with workers have completed technology might improve the approximately $700 million
minimal capital property owners, training on how to spot and travel experience; and an app to $800 million for 2020,
requirements. Their properties that they own, respond to signs of human by the esteemed design and including contract acquisition
emphasis on long-term and home and trafficking in our hotels. more technology firm Work & Co. costs, equity and other
management contracts and condominium than 50 percent of the that lets customers customize investments, loan advances,
franchising tends to provide communities for which company's current managers their stay and chat with and various capital
more stable earnings in they manage the related have been promoted from service representatives. The expenditures. . Over time, we
periods of economic owners’ associations. As within, adding, Employees app has had more than 12 seek to minimize capital
softness, while adding new of December 31, 2019, specifically cite the opportunity million downloads, and it invested in our business
hotels to our system Marriot had $17.7 billion for advancement as a key factor generated an estimated $2 through asset sales subject to
generates growth, typically of goodwill and other in their decisions to stay with billion in gross bookings in long-term management or
with little or no investment intangible assets. Marriott. 2017. franchise agreements.
by the Company.
Taj Hotel: Organization Self-Assessment Management Systems
Organization Culture 1) Excellence 2) Integrity 3) Trust and Teamwork 4) Respect and concern for others 5) Innovation
Organization Structure
Marriott International: Organization Self-Assessment Management Systems
Organization Culture 1) Putting people first 2) Pursuing Excellence 3) Embracing change 4) Acting with integrity 5) Serving our world
Organization Structure
The Taj Hotels: Goals & Objectives
Goals Objectives
 Their goal is to become the largest hotel brand in the Indian  The main objective of Taj is to endorse its corporate
sector and develop into international hotel brand citizenship through the different conglomerates which help
representing its home country. in the construction of the livelihood for the less-advantaged
youth and women.
 Organizational goals are to achieve the business and
 It his undertaking different steps which boost the service
strategic objectives that define the purpose of Taj Hotel
levels of the people to be in line with the best when
Group.
compared to its competitors.
 Their goals are the strategic targets that Taj Hotel Group  The service excellence attitude of Taj has its basic
wants to achieve over a period of time. fundamental, delivering services and products through the
staff working in its properties.
Marriott International: Goals & Objectives
Goals Objectives
 Their goal is Guest Satisfaction Superiority – Marriott aims to be  Organizational objectives for Marriott are the short to medium
the world's leading hotel offering the best service in hospitality. term targets and goals that the organization sets to achieve the
bigger strategic goals set for the long term.
 Organizational goals are those business and strategic objectives
that define the purpose of Marriott. The goals of Marriott help  The objectives are important in shaping resource allocation
direct its employee behavior, as well as help in directing the within Marriott as well as in determining the policies,
operations of the business in the short term. schedules and processes that are implemented in Marriott.
 Components of the goal are: 1) Achievable  Components of the objectives are: 1) Specific
2) Time-frame defined 2) Measurable
3) Easy to understand 3) Attainable
4) Easy to communicate 4) Realistic
5) Pragmatic 5) Timely
6) Relation with job tasks
IHCL – The Taj Hotels: Strategy
Growth Strategy: The company aims at working towards deepening guest experience, strengthening market
leadership and achieving transformative growth leading to greater profitability and market leadership.
• Their strategy is three pronged, ”Restructure, Reengineer and Reimagine” their portfolio. They look at embracing
technology and building people capability to deliver enhanced and personalized customer experiences.
• They introduced a new digital solution ‘I-ZEST: IHCL’s Zero-Touch Service Transformation’ which allow guests to
interact and engage with IHCL hotels by minimizing the physical touch, but maximizing quality of service.
• They have an employee loyalty program called as Special thanks and Recognition System (STARS) to acknowledge
and reward hard working employees.
• They have a core value system which include TRUST, AWARENESS and JOY and every employee are gauged on
their value system and adaptability to the company culture.
Marriott International: Strategy
Growth Strategy: The company is aiming to open more than 1700 hotels around the world, their growth is fueled by
the strong profitability of its hotels, its rich loyalty program, lower costs, and the strong confidence of its owners and
franchisees.
• The company operates by providing value for their customers with quality branding options backed by their
business support systems. They continuously respond to the evolving preferences and lifestyles of travelers.
• The growth can be seen via their loyalty program “Marriott Bonvoy” which had a strong 141 million members by
the end of 2019.
• The company ensures that they provide a work environment where the emotional, physical and financial needs
matter. They call it “TAKECARE”.
• They follow the policy of “Putting People First” and this begins with their employees who are taught to pursue
excellence, act with integrity and embracing change.
Thank You !!

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Presented by:

Strategic Management Process

Olyvia Das-20191065 Vamsi Chennuru-20191116

INDIAN HOTELS COMPANY LIMITED

“To improve the quality of life of the communities

“To enhance the lives of our customers by creating

Financial Physical Human Technological Capital

Financial Physical Human Technological Capital

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