Introduction

At the outset, hospitality industry provides wide ranging services to its consumers. The same represents an industry that is highly competitive, and hence it shall be critical for establishing as well as operating with management strategies that are helpful and effective (Konovalova et al., 2018). In effect, hospitality industry shall encompass all of the businesses that are affiliated with optional as well as recreational form of services which are provided to the customers to address their leisurely needs. The same shall mean that the service shall not just be limited to accommodations akin to that of motels / hotels / bed & breakfasts (Konovalova et al., 2018). In addition, the service offered shall include various entertainment, transportation, cruise lines, and events. Essentially the service to a large extent of want nature as against that of need nature, and the same shall thus be paid by way of disposable income as it concerns pleasure. As hospitality industry is characterised by strong and aggressive competition, strategic management with respect to hospitality industry entailing the creation of effective processes and plans shall be key to establishing hospitality business that is successful and critical for overall company success (Konovalova et al., 2018).

Strategic Management in Hospitality Industry

Strategic Management concerns on the identification as well as description of strategies which managers across all levels need to undertake for achieving better performance as well as achieve competitive advantage to their respective organisation (Bokareva & Yudina, 2020). In effect, strategic management shall concern with planning that is focussed on predictable and the unfeasible contingencies in the manner of formulation as well as implementation of suitable strategies with the ultimate aim for attaining sustainable form of competitive advantages. The same focused on devising, developing and executing decisions concerning future direction for the relevant organisation (Bokareva & Yudina, 2020).

The same aids one in identifying the overall direction using which concerned organisation can move ahead (Varelas & Apostolopoulos, 2020). The same represents a process that is continuous which evaluates as well as controls specific business and the competitors, and establishes goals as well as strategies for meeting all of the existing and the potential competitors. It also includes the re-evaluation of strategies on a periodical basis for determining the manner in which the same can be effectively implemented. Most crucially, strategic management offers better vision amongst the employees in the organisation such that they could better understand the manner in which their respective job shall fits in the global strategy of the hotel. It can be seen as an art for employee management in the manner such that is shall lead to the maximisation of the abilities for achieving the planned objectives of the business (Varelas & Apostolopoulos, 2020). As they become highly committed, more satisfied, and trustworthy, they shall effectively co-relate themselves to that of every organisational task. The other key role from strategic management shall be with respect to the incorporation of varied functional domains in the organisation to a complete extent, and, for ensuring that these various functional areas shall harmonise as well as get together in an effective manner. Strategic management also aids in keeping a continuous monitoring over goals / objectives, and the performance progress at the concerned organisation (Varelas & Apostolopoulos, 2020).

In the context of hospitality industry, strategic management entails the creation as well as the implementation of goals which shall be highly focused to the industry contexts for enhancing the overall status of concerned organisation (Tajeddini et al., 2019). The strategies shall be ideated and established by management board in consideration of resources that are available to the organisation. In the course of strategy creation at the organisational level, concerned management shall be required for keeping in consideration the strategies of competitors. In effect, strategic management offers the ways to use the resources available in an efficient manner for making sure lower cost as well as efficient form of production process (Tajeddini et al., 2019). In essence, strategic management represents a process of inconstant nature wherein any of the change within its environment wherein the concerned organisation shall be operating can lead to changes in strategies for concerned organisation. Further, strategic management shall be effective in case of newer business model adopted by the organisation for creation of competitive advantage at the industry-level (Tajeddini et al., 2019).

Key Practices & Applications

When planning specific strategy, overall organisational level involvement at the concerned hotel or other organisation shall be essential (Kalipci & Yay, 2018). The organisation’s top management shall offer orders as well as guidelines to its workers as well as other affiliated entities in addition to franchise businesses where the same is applicable. It shall be very crucial while planning the strategy for having established certain levels of stability within the respective environment. In this manner, the strategy shall be highly detailed as well as offer positive results (Kalipci & Yay, 2018).

Strategic analyses represent a crucial concept within overall framework of strategic management (Kalipci & Yay, 2018). While analysis do not offer straightforward guidelines over what has to be done for succeeding, the same offers deeper insight at the level of organisation and its operations, and also the overall industry, and the same in turn shall aid the concerned management in making decision to proceed for success (Kalipci & Yay, 2018). The same needs to be undertaken by way of planning the strategy specific to the organisation for the purposes of recognising the key factors which shall have an influence over the profitability of concerned organisation (Kalipci & Yay, 2018). Analysis shall be classified as two categories, that is the external as well as internal analysis. The outcomes of these analyses offer key insights and critical information which form the foundation using which broader strategic planning, solution identification, and implementation of the strategy shall be undertaken. In this context, change management and the alignment of individual employees with the broader vision of the organisation shall be crucial implementation tools that shall ensure that the strategy management can have real, tangible and effectively beneficial outcomes to the concerned organisation.

Conclusion

It has to be noted that strategy forms the crucial element in the management of hotels and other organisations in the hospitality industry. The same entails many different purposes, and amongst them the most crucial ones include: [1] decision support, [2] target, and [3] co-ordination support. In terms of decision support, the same aids in putting in guidelines the decisions which are made at the organisational level as well as in this manner enhance the overall quality pertaining to decision making. In terms of target, the same offers specific disciplines that has to be followed as well as offers specific goals towards which operations concerning the organisation needs to proceed. Lastly, as that of co-ordination support, the same aids in creating specific form of coordination concerning the actions of individuals at the organisational level.

References

Bokareva, E. V., & Yudina, E. V. (2020). Strategic Management in The Hospitality Industry. Revista TURISMO: Estudos e Práticas, (4).

Kalıpçı, M. B., & Yay, Ö. (2018). Review of strategic management studies on tourism. Anatolia, 29(4), 566-580.

Konovalova, E. E., Yudina, E. V., Bushueva, I. V., Uhina, T. V., & Lebedev, K. A. E. (2018). Forming approaches to strategic management and development of tourism and hospitality industry in the regions. Journal of Environmental Management & Tourism, 9(2 (26)), 241-247.

Tajeddini, K., Ratten, V., & Merkle, T. (Eds.). (2019). Tourism, Hospitality and Digital Transformation: Strategic Management Aspects. Routledge.

Varelas, S., & Apostolopoulos, N. (2020). The Implementation of Strategic Management in Greek Hospitality Businesses in Times of Crisis. Sustainability, 12(17), 7211.