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Building Capabilities at the Westward Hilton
Linh Nhat Le
Daniel Jarosz
Strategic Management
Prof. Nicolas J. Hadgis
Before Westward’s was Purchased by Hiller.
Poor financial records, poor management, and poor maintenance of quality and building.
Introduction
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)
The broad environment
The industry analysis
Strategic issues facing the industry
Environmental Analysis
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
(office away from the office)
6
Political factors
Increased minimum wage
Arrival of migrant workers
Broad environment
Customer
Group travelers require price discount
Uniqueness is a must
Service quality over price
Request for reasonable price components
Industry analysis
Industry analysis
Supplier
Basing on the level of importance & usage frequency
Basing on the differentiation
Competitor
Slow growth in Phoenix market
Oversaturated area
12 top-notch hotels
Industry analysis
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 (4-star)
Pointe Hilton Tapatio Cliffs Resort (4-star)
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
Industry analysis
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
Strategic issues
Strategic direction
Analysis of internal environment
Analysis of resources and capabilities
Performance evaluation
Organizational Resource Analysis
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
friendliness
place
to visit
Values
Dignity
Values
Focus
Achievement
Balance
Strategic direction
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
Internal environment
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
Resources & capabilities
Strengths Weaknesses
Excellent leadership Top leaders are unwilling to delegate
Motivated and productive employees Yield management is skewed
Well-established reputation No future successor’s followed by Green
SWOT analysis
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
Corporate-level
Hiller Enterprises – diversification strategy in unrelated industries
Hiller Hotels – diversification strategy in related industries
Business-level
Westward Hilton – best-valued strategy
Performance evaluation
Future’s strategic direction
Business strategy
Evaluation of opportunities and recommendations
Implementation and control
Developing a Strategic Plan
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
Strategic direction
Best-valued strategy
concentrate in the core business using its unique culture and workforce spirit
Business strategy
Recommendation & Implementation
Strengths Weaknesses
Excellent leadership Top leaders are unwilling to delegate
Motivated and productive employees Yield management is skewed
Well-established reputation 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 Economic recovery Migrant immigrant influx
Technology boom
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