building_capabilities_at_the_westward_hilton

Report
Linh Nhat Le
Daniel Jarosz
Strategic Management
Prof. Nicolas J. Hadgis
Introduction

 Before Westward’s was Purchased by Hiller.
 Poor financial records, poor management, and poor
maintenance of quality and building.
 After Westward was purchased by Hiller.
 Mr. Green, a seasoned hospitality professional, was in
charge of running the business.
 Excellent management (referencing Golden of profitability)
Environmental Analysis

The broad environment
The industry analysis
Strategic issues facing the industry
Broad environment

Social factors
 Increase in millennial travelers
 Growth of international market
 Popularity-gaining of group travel
 Gourmet-preferred trend
 Younger workforce
 Social media & online interaction
 Sustainability tourism
Broad environment

Economic factors
 Economic recovery
 Competition in airline industry
 Emphasis on health and wellness
 Increase in direct booking
Broad environment

Technological factors
 Demand for high-tech
 Focus on individualism &
automated devices
 Free Wi-Fi is associated with
luxury service
 Portable office
Broad environment

Political factors
 Increased minimum wage
 Arrival of migrant workers
Industry analysis

Customer
 Group travelers require price
discount
 Uniqueness is a must
 Service quality over price
 Request for reasonable price
components
Industry analysis

Supplier
 Basing on the level of
importance & usage frequency
 Basing on the differentiation
Industry analysis
Competitor

 Slow growth in Phoenix market
 Oversaturated area
 12 top-notch hotels
 The Boulders (5-star)
 Arizona Biltmore Resort and Spa (5-star)
 JW Marriott Desert Ridge Resort and Spa (5-star)
 Sheraton Wild Horse Pass Resort and Spa (5-star)
 Ritz Carlton Phoenix (5-star)
 Arizona Grand Resort (5-star)
 Hotel Palomar Phoenix (5-star)
 Wigwan Resort (5-star)
 Royal Palms Hotel and Spa (5-star)
 Sheraton Phoenix Downtown Hotel (4-star)
 Tempe Mission Palms hotel and Conference Center (4star)
 Pointe Hilton Tapatio Cliffs Resort (4-star)

Industry analysis

Substitutes
 Economy or midscale hotels. (Over 150 in Phoenix)
 Resorts
Industry analysis

Potential entrants
 Large economies of scale
 Great capital investment
 High switching costs
 Position in distribution channels
 Level of differentiation
Strategic issues

Requirement for survival
 Serve sufficient number of customers
 Provide acceptable level of service quality
& products quantity
 Balance between expense & revenue
 Maintain a moderate management skills
& team work
Strategic issues

Key success factors
 Provide exceptional, sustainable,
& consistent service
 Be aware of current trends and issues
 Focus on human capital
 Execute cooperating leadership style
Organizational Resource
Analysis

Strategic direction
Analysis of internal environment
Analysis of resources and capabilities
Performance evaluation
Strategic direction

Mission
 Employees’ lives are made better by treating them
with dignity, rewarding and recognizing their
contribution to our success, and providing a safe,
secure, flexible, and fun working environment.
 Customers’ lives are made better by providing safe
environment, excellent service, friendliness, and that
extra thoughtfulness that makes visiting Westward
like visiting a friend.
 Owners’ lives better ensuring that the hotel is a
leader on return on investment.
Strategic direction

Vision
Strategic direction

Values
 Dignity
 Values
 Focus
 Achievement
 Balance
Internal environment

Owner
 Major investor – Karen Connor – share
the organization’s culture and values
 Parent company – Hiller Enterprises –
provide a strong financial support
Internal environment

Management
Executive vice president of operations: Peter Green
 Has 20 years in the industry
 Believe in the future of Westward
 Communicate & model values and belief
 Care for the employees
 Enhance contact with the customers
 Be reluctant to delegate responsibilities
Internal environment

Employee
 Treatment with dignity and respect
 Employment basing on matching values
 On-job training with coworkers
 Enhancement of cross-level communication
 Wage & reward system relying on hotel’s
overall performance
 Performance appraisal is separated from
reward system
Internal environment

Customer
 Service built on relationship between
customers & employees
 Listening is the key to customers’
satisfaction
 Unique feedback system
 Feedback sharing with employees
Internal environment

Culture
 Respect the value of team work
 Create an environment where employees
can be themselves
 Establish family-oriented atmosphere
Resources & capabilities

 Have a unique value in the market
 Be hard to substitute
 Have a culture that value such resources
and capabilities
 Have been successfully using them
Strengths
SWOT analysis

Excellent leadership
Motivated and productive employees
Well-established reputation
Weaknesses
Top leaders are unwilling to delegate
Yield management is skewed
No future successor’s followed by Green
Opportunities
Threats
The increase in international market
Oversaturated market
The increase in Millenial customers who
target luxury segment
increase in minimum wage
The growth of group travel
Economic recovery
Migrant immigrant influx
Technology boom
Performance evaluation

Corporate-level
 Hiller Enterprises – diversification strategy in
unrelated industries
 Hiller Hotels – diversification strategy in related
industries
Business-level
 Westward Hilton – best-valued strategy
Developing a Strategic
Plan

Future’s strategic direction
Business strategy
Evaluation of opportunities and
recommendations
Implementation and control
Strategic direction

Mission
Employees
 Provide training regarding skill set
 Emphasize organizational commitment
 Represent a creative and high-tech enterprise
Strategic direction

Customers
 Provide a high-quality service
 Tie quality with a reasonable price
 Respect the cultural differences
Owners
 Take advantage of emerging opportunities
 Expand the property’s profit
Strategic direction

Vision
 Emphasis on the loyalty in the relationship with
customers by providing more personalized service
and forming a diversifying environment to serve the
international sector.
Strategic direction

Values
 Diversity
 Fairness
 Creativity
 Ambition
 Interpersonal communication
 Loyalty and commitment
Business strategy

Best-valued strategy
 concentrate in the core business using its unique
culture and workforce spirit
Recommendation &
Implementation

Strengths
Excellent leadership
Motivated and productive employees
Well-established reputation
Weaknesses
Top leaders are unwilling to delegate
Yield management is skewed
No future successor’s followed by Green
Opportunities
Threats
The increase in international market
The increase in Millenial customers who
target luxury segment
Oversaturated market
increase in minimum wage
The growth of group travel
Economic recovery
Economic recovery
Technology boom
Migrant immigrant influx
THANK YOU


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