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Sheraton Hotel Strategic Development Assignment


Task: For a Tourism and Hospitality organisation of your choice, research and analyse the existing strategy of that business. You have recently been appointed as the CEO of your chosen organisation, apply your critical thinking skills to develop strategic recommendations for the development of the business over the next 12 months. To submit a definitive and complete Report for the organisation chosen, you will need to consider at least the following –

  • A brief history of the organisation and its strategic development
  • The internal and external environments of the organisation
  • The development of strategy at a business, functional and corporate level
  • Competitive advantage and sustainability
  • The impacts of mergers and acquisitions, international strategy and alliances
  • Strategic implementation and the importance of leadership and entrepreneurship
  • Organisational structure, controls and corporate governance

The Report may address other relevant considerations and must include evidence of research to substantiate your conclusions and recommendations. The word count limit is 2,500 words (plus or minus 10%), excluding Appendices, References and Quotations. Times New Roman 12 point font and 1.5 line spacing.APA referencing as per 2018 ICMS Style Guide.Header to contain student names and identifier numbers only.Footer to contain page number only. Plagiarism Declaration attached as first page inside the cover page. Last page of the Originality Report attached as second page inside the cover page.


In the tourism and hospitality organization, strategic development is required to be adopted for growth and development. The strategic development assignmentincludes an analysis of the Sheraton Hotel in Melbourne. The strategic development of the organization will be included in the strategic development assignment. The analysis of internal and external environments will be included for analyzing the position of the organization in the market. The strategy is required to be developed at the business, functional, and corporate levels. In order to gain competitive advantages, the hotel is required to adopt the strategies in the times of Covid 19. The importance of leadership and entrepreneurship will be analyzed in the strategic development assignment. In the strategic development assignment, the organizational structure controls,and corporate governanceanalysedby the Sheraton Hotel is presented in the detailed manner.

In the hospitality industry, the Sheraton Hotel and Resorts is the chain of Marriott International. It was founded by 1937 in Springfield, United States. Itsheadquarters is in White Plains, USA. It serves the 441 locations across the world. The hotel is located at 27 Little Collins St. Melbourne VIC 3000, Australia(Sheraton Melbourne Hotel, 2020). Sheraton Hotel provides luxury services to customers and includes the strategies for attracting a large number of customers. Strategic development is required in the organization for the growth of the business in the market. The mission of the hotel is to set the direction and providing the services to customers.

Internal environmental of the organization selected to prepare this strategic development assignment
Sheraton Hotel in Melbourne is continuously upgrading through innovation and value-added, which is considered to be one of the main driving forces for its future growth and gaining a competitive advantage. Many new and old players provide fierce competition for hotel groups, but they are doing very well in maintaining new entrants and gaining a competitive advantage in the market. Diversification has become one of the groups ’s other creative business strategies. While conducting diversified activities, they also provide customized services and packages for their respective hotels(Moutinho&Vargas-Sanchez, 2018). The road of diversified services provided by Sheraton Hotels has been the main driving force of the business strategy and has contributed to the advantage of competitors for gaining competitive advantage.

SWOT analysis in strategic development assignment

SWOT analysis
In this strategic development assignment, the strengths of the Sheraton Hotel in Melbourne include the strong brand name as it is one of the brands across the world. Sheraton is leading a hospitality company by providing a luxurious full-service hotel. They had considered afavourable location which is convenient to reach from the Airport. They include effective customer service capabilities(Langvinien? & Daunoravi?i?t?, 2015). Sheraton hotel includes attractive promotional sales during the offseason.

The Weakness of the Sheraton hotel includes the imperfect management style. They include the lack of advertisements in the market. The hotel includes less capability in accommodation as compared to competitors (Köseoglu, et al., 2019).

The opportunities which are available to Hotel include providing the employment position for declining the stress of government. With the effective strategies, the Sheraton hotel will provide the jobs to employees.

In Hotel, the security issue is considered athreat to maintaining the safety of customers. It is analysed that lack of security staff impacts on the safety of guests which loses the customers(Langvinien? & Daunoravi?i?t?, 2015). The current competitors in Melbourne mentioned in the strategic development assignmentare the threat to the hotel are the Westin, Park Hyatt, and many more. The biggest threat is of the current scenario of Covid 19.

External environment of the organization
PESTEL analysis
Political factor

Sheraton hotel in Melbourne includes the support of the government for sustaining the market. The hotel is required to follow the rules and regulations in which are stated by the government of Australia. The political changes outlined herein strategic development assignment includes the direct impact on the business due to the government (Evans, 2015). The ban on tourism after the situation of lockdowns would be a major impact on the hotel business.

Economic factors
The hospitality industry gets affected because of economic changes. Sheraton Hotel provides luxury services which include that the recession, inflation, and other economic conditions majorly affects the ability of people to opt the luxury hotel services(Okumus, et al., 2019). Herein strategic development assignment, the foreign exchange rate is also considered as the major factor which impacts on the ability of tourists for the expensive hotel services. People are losing their jobs which would affect purchasing power and luxury services.

Socio-cultural factors
The social-cultural factors are considered by the hotel which includes involving the social media platform for people to provide the experiences. The increasing spending capacity further ensures that a wider group of people can use the hotel industry. This trend depicted within this section of strategic development assignment will grow further in the future, resulting in greater demand for hotels(Okumus, et al., 2019). People are scared after the spread of corona virus which shows that tourism and hospitality business would be on major stake.

Technological factors
In the Sheraton hotel, the advanced technologies are adopted for providing services to customers. It includes providing the security by CCTV cameras and other features for making the comfortable stay of guests(Pavlatos, 2015). The advanced technologies are adopted which includes the facility of online booking through the application of the Sheraton Hotel.

Legal factor
In Melbourne, the legal factors are crucial to be considered which includes having discrimination laws. The hotel follows the various laws for meeting the needs. The hotel is very strict in terms of the identification of the guests for using the facilities.

Environmental factors
Sheraton hotel includes the various pressure for government and environmental activities for ensuring the minimal carbon footprints. They include shifting towards using biodegradable items for countering the climate crisis (Kunc&Bhandari, 2011).

Competitive advantage and sustainability
Sheraton hotel includes the various strategies and goals for the growth of the business. The sustainability practices are adopted by the organization which includes the recycling and composting in which they divert 70% of the solid waste sitream. They use environmentally friendly cleaning and washing chemistry. For saving energy, they use the led lighting in the guest rooms by using the LED lights. In the food and beverages, sustainable menus are included by the hotel which leads to integrating the sustainable and social practices and principles in the food and beverage strategy for the operations (Rothaermel, 2016). It helps in reducing the negative impacts on the business. It is also planning to promote its tourism business after the current situation of Covid 19.

What is the impact of mergers and acquisitions, international strategy and alliances in the present scenario of strategic development assignment?
In Sheraton hotel, the merger and acquisition has impacted on the growth of the business in market. The international strategy are adopted by the hotel in the market of Melbourne to attract the customers. Strategic alliance has impacted on the hotel to access the resources, reducing costs, information, accessing of new technologies and market. It impacted on the hotel for sharing the risks and outsourcing the organizational function. Global strategies are adopted by the Sheraton hotel which impacted on capturing the market in no time.

Organizational structure and development of strategy at the business, functional and corporate level
The strategy is required to be developed at three levels for the success of the organization. At the business level, it is required to make the decision for gaining profits. The corporate level is required to include the investment, integration, and divestment decisions.

The corporate strategy staff and top management will be responsible for the corporate strategy. For the business strategy, divisional management will be responsible to make the decisions. The corporate-level strategy includes the business areas in which the company will operate (Wirtz, et al., 2016). It involves adjusting resource deployment in different or unrelated business areas. This level of strategy development presented in the strategic development assignment involves integrating and managing various businesses and achieving synergy at the company level. The top management team is responsible for formulating company strategy. The company's strategy reflects a way to realize the organization's vision.

Controls and corporate governance
Sheraton hotel includes the long way commitment for integrity and transparency in the corporate governance practices. They include the responsibilities for enhancing the interests of various stakeholders like customers, suppliers and employees. The rules and laws are followed for controlling the processes. The Sheraton hotel board of directors is responsible for creating the framework for conducting the objectives.

Current strategy
Perfect market research plan: This research on strategic development assignment shows that it is very important for a company to have a perfect plan to conduct market research. Sheraton has a well-developed research plan that can determine customer needs and keep them loyal to the brand. Perception and expectation: Sheraton Hotel has done a good job of understanding customers' perceptions and expectations with its in-depth understanding of the global industry. This shows us how important it is for companies to understand and maintain their views and expectations when formulating business strategies (Phadermrod, et al., 2019).

Sheraton Hotel has a well-managed feedback system in which customer-centricity has received the highest attention. This shows us the importance of getting feedback and therefore taking steps to meet all the concerns and needs of each customer. The business strategic plan requires to diverse within the scope of services provided. Different offers, discounts, and room types available for accommodation are the most important factors in bringing about diversity in the hotel (Okumus, et al., 2017).

As part of a business strategy and improving the efficiency of the services provided, it is very important for any company to give employees a sense of responsibility and appreciate their commitment. Sheraton Hotels, like other hotel groups, shows the participation of sales staff and the regular appreciation of star hotels in the same way(Morrison, 2018).

The main strategic management that is required to be adopted is the separate management which includes that the Sheraton hotel in Melbourne hotel includes the policy which makes the hotel undertake the limited marking as well as advertising in the market of Melbourne(Vlados, 2019). It requires implementing the advertising strategies.

Strategic leadership and entrepreneurship
It is analysedin the present report of strategic development assignmentthat the various factors influence the performance of the Hotel in Melbourne. An effective leadership style is required to be adopted by the manager for improving the performance of employees but also making the reputation of the customers. For strategic management, the situational leadership model is required to be considered which includes directing, coaching, supporting as well as delegating(Rahimi, et al., 2017). It is analysed that strategic management is required to be developed at the business, functional, and corporate levels. It is analysed that the strategies are required to be implemented for business growth.

It is recommended herein strategic development assignment to the Sheraton Hotel to use the different forms of media for projecting the needs of customers. The Hotel requires to use the business and travel magazines to promote the hotel by offering promotional packages.

The major issues which are analysed in the above segments of strategic development assignment include the lack of safety. It is necessary for the Sheraton hotel to provide safety to customers. The hotel must consider the feedback of the customer for providing effective services. It is analysed that the high unresolved complaints of customers are identified(Konovalova, et al., 2018). The data security issue is also identified which is required to be addressed in strategic management.

Change in marketing trends and the dynamic issue is analysed which includes the changes in the marketing and advertising trends which creates the problem for management. It is required for the management to consider the new way for marketing and advertising the hotel through social media and messaging apps. The operational challenges are analysed which are addressed which includes managing the reservation, attending desks, and perform the from desk operations(Boella & Goss-Turner, 2019). It is required to overcome the challenge by adopting the integrated hotel PMS system which helps In streamlining the operational areas by linking the different departments for effective communication to serve the customers.

In conclusion section of strategic development assignment, it is analysed that strategic management is essential for the growth and development of the Sheraton Hotel. The report on strategic development assignment includes the operations of the Sheraton hotel which includes the analysis of strategic tools. It is required to maintain the reputation and image of the hotel by adopting an effective organizational culture and effective leadership style. The current strategy and goals of the organization are required to be considered for analysing sustainability practices. It is analysed that the alliances have impacted the business to gain competitive advantages. The internal and external environmental factors of the organization help in analysing the current strategies of the organization. It is necessary for the organization to adopt sustainable practices for gaining competitive advantages. The major issues are identified in the Sheraton Hotel which is required to be considered and implementing the strategic management for the growth and development of the organization.

Boella, M. J., & Goss-Turner, S. (2019). Human resource management in the hospitality industry: A guide to best practice.Strategic development assignmentRoutledge.

Evans, N. (2015). Strategic management for tourism, hospitality, and events. Routledge.

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.

Köseoglu, M. A., Okumus, F., Dogan, I. C., & Law, R. (2019). Intellectual structure of strategic management research in the hospitality management field: A co-citation analysis. International Journal of Hospitality Management, 78, 234-250.

Kunc, M., & Bhandari, R. (2011). Strategic development processes during economic and financial crisis. Management Decision.

Langvinien?, N., & Daunoravi?i?t?, I. (2015). Factors influencing the success of business model in the hospitality service industry. Procedia-Social and Behavioral Sciences, 213, 902-910.

Morrison, A. M. (2018). Marketing and managing tourism destinations. Strategic development assignmentRoutledge.

Moutinho, L., & Vargas-Sanchez, A. (Eds.). (2018). Strategic Management in Tourism, CABI Tourism Texts. Cabi.

Okumus, F., Altinay, L., Chathoth, P., & Koseoglu, M. A. (2019). Strategic management for hospitality and tourism. Routledge.

Okumus, F., Köseoglu, M. A., Morvillo, A., & Altin, M. (2017). Scientific progress on strategic management in hospitality and tourism: A state-of-the-art. Tourism Review.

Pavlatos, O. (2015). An empirical investigation of strategic management accounting in hotels. International Journal of Contemporary Hospitality Management.

Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, 194-203.

Rahimi, R., Köseoglu, M. A., Ersoy, A. B., & Okumus, F. (2017). Customer relationship management research in tourism and hospitality: a state-of-the-art. Tourism Review. Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education. Sheraton Melbourne Hotel, 2020. Sheraton Melbourne Hotel. Retrieved from [Accessed on 27th May, 2020]

Vlados, C. (2019). On a correlative and evolutionary SWOT analysis. Journal of Strategy and Management.

Wirtz, B. W., Schilke, O., &Ullrich, S. (2016). Strategic development of business models: implications of the Web 2.0 for creating value on the internet.Strategic development assignment Long range planning, 43(2-3), 272-290.


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