Reasons for Choosing the Hotel and Tourism Sector


Practicing Strategy

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The year 2020 surprised many businesses in the business sector; many business opportunities got affected by the outbreak of the Coronavirus, a virus whose pathophysiology was not known. It replicated so fast and became the most dangerous contagious disease in the world. The world was thrown into a traumatizing situation of a pandemic. It brought new rules into the way the public operates. The business sector has ever since been under a massive threat since that time. From our organization, Hilton Hotels, we had to come up with a different strategy to survive during this challenging period. This paper is purposed to describe the strategic management theory that the Hilton group of hotels has been able to come up with since the coronavirus pandemic struck and how the organization has arranged to overcome the c challenges that the virus has posed over the next three years. It will demonstrate and explain the understanding of governance, cooperate social or ethical responsibility as implied in the analysis.

Reasons for Choosing the Hotel and Tourism Sector

The most suitable sector that has been dramatically affected during this pandemic is the hotel and the tourism sector. An excellent example of the organization under this is Hilton Hotels. It was chosen due to the following reasons. The hotel is a destination for very many people across the world. People come from nearly every part of the world to come and have some good time in the Hilton hotels. Therefore, the management of such an organization must think about how they can protect their customer support so that the customers cannot run away to the other hotels (Gruing,2016, p.151-176). The hotel should serve them well and use an appropriate way of ensuring the public health protocols are maintained.

Another reason why this organization suits choosing is that it is a sector that has employed quite a several people. Many people are working for this hotel from nearly everywhere around the world, and with the new policies that came into place, business went down. Therefore, employment shaping took place leading to the retrenchment of a number of people who worked in various sectors of the industry (Gruing,2016, p.151-176). Apart from the two above stated reasons, another reason why this industry could be chosen is because Hilton hotels have been one of the leading hotels in the world in terms of their performance. In the year 2019, it was ranked 3rd as among the most improved hotel in terms of customer service. It therefore makes this hotel to remain lustrous among many people, therefore its performance during this trough condition must be really considered.

As a result of the pandemic, the organization has faced a number of challenges, some of the challenges include; low supply of goods that are used in the kitchen for example the spices and the raw foods became short supply, this was due to the restricted movement ibn the transport sector, many good that were to be transported from other neighboring countries could not reach the various branches of the Hilton hotel appropriately. This has therefore made the organization to cut down on cocking some foods (Gruing,2016, p.151-176). Another challenge is the reduced inflow of customers, as a result of the restricted global movement, the organization has not realized any profit for the last 1 and a half years, the losses outweigh the profit, therefore keeping the operation of the business very difficult to manage and handle.

The organization has lost a number of employees, being that it is not able to meet the required revenuer collection so that it is able to pay all the employees in time, it was forced to send home a number of employees, some decided to resign due to the unfavorable terms that they thought the organization subjected them to (Gruing,2016, p.151-176). This has therefore lead to the reduction in the labor flies of the organization. Another challenge that the organization has faced is the high cost of adjustment towards the covid 19 requirement in terms of the infrastructure inside the hotels, the suiting arrangements had to be adjusted to mention the 1.5meters social distance rule and therefore this has really affected the organization.

How The Chosen Theories of Strategic Management May Be Used to Understand the Position and The Response of the Case Study

Strategic management is very important in the understanding of the ways that be used in the strategic management of the situation in which the Hilton hotel finds itself in by definition, the strategic management theory refers to how the organizations or institutions define approach, develop, implement and monitor competitive objectives to meet the sustained superior performances. oat also highlights how the organizations may use such theory to understand better the challenging situations that they have been part of in the past. strategies that can be applicable in this case include the rethinking theory.

The rethinking strategy is an approach that is applicable in the business sector to help in the reviewing some of the things and challenges that faced particular organizations in the past number of years. The rethinking may be used to demonstrate the strategies that have been used by Hilton group of hotels in order to know the management techniques that has been used by the organization during the tough and challenging situations of the corona virus. The rethinking theory builds around flashbacking on the strategies that the management uses to survive these tough moments. The rethinking strategy enables the company to rethink on the performance that the company has been through during the tough situation. This strategy highlights some of the reasons why the company made some losses during such hard times. The reasons found for the poor performances may be used as a strategy for growth in the coming days.

The strategic management theory is also applicable in understanding the source of the problems or challenge that the hotel finds itself in, for the challenge to be strategically managed, its source must be known. For example, through identifying the source of the corona virus to depict more value.

Another theory that can be applicable in the understanding this challenger is the resource based theory, this theory enables people to understand how the resource based factors may be used to make the people understand how inadequacy of the resources many pose a challenge in the covid 19 situation. It demonstrates how lack of enough raw materials to be used in the hotels made the prices of the few that were available from the retailers to really shoot up in as a result of the hiking of the prices on these commodities. The strategic management models are also applicable in making these theories appear into shape, these models include the SWOT analysis which analyses the strengths, weaknesses, opportunities and threats applicable in this scenario. the pest model too is the second strategy to be used in the estimation how economic factors, social factors, political, cultural factors may lead to the eruption of a problem in the business organization. In this case, this model may be used in the understanding how the social- economic factors contributed to the challenges that have been faced during the pandemic. Lack of enough supply of goods during the onset of the pandemic really compressed the growth and business potential of the organization.

Strategic Responses and Strategic Directions

The theories selected may help in giving the direction which Hilton hotel may use to understand and evade the challenges that it is facing successfully over the next years, these approaches can take the following shapes and ways. The first way that these theories teaches the management of the organization is to learn the positioning strategy (Bromwich, 2019). These challenges enable the company to key itself as a specific unique position so that it may overcome the challenges appropriately. The potters five forces, a framework that analyses the companys competitive environment. During this pandemic, there are a lot of competitions that Hilton is likely to face due to the inadequate resources or as a result of unfair environmental factors. The fore, the porters factor is important in improving the business growth. The theories inform Hilton as an organization to know its environmental competitors by analyzing the strategies that they may sell to overcome it in the game of business (Bromwich, 2019). The other aspect in this strategy is to know the survey if there could be any farm that is likely to penetrate the market and start competing them, Hilton may develop mechanisms such as providing cut price on some local foods so that may mention its customers. Increasing the power of supply enables the hotel to a look for more suppliers to adequately source the required raw for the mentainace of the business.

The organization is able to strategies itself on the power of the customers, it should know that it is the customers are the possessors of the sole powers of the companys such cases, if the customers say no to Hilton due to lack of proper business guidelines with regards to the Corona virus, it is then important that they are treated well (Bromwich, 2019), their pleas must be listened to, their areas of concern must be taken seriously. Hilton may organize for the substitute of threats so that it may reduce the dangers of customer rejection.

Apart from the potters 5 forces, the strategic management theories may advise the organization to analyze its value chain analysis. this is where the organization explores the inputs and outputs that are used in the production process. The unnecessary inputs should be eradicated from the production process of the organization so that it may not sound unnecessarily, however (Bromwich, 2019), the foods that are very essential during this covid 19 pandemic such as the lemon juices and the conceptions that help in suppressing coughs, colds and flu should be improved, it is because its one of the business opportunities available during this time. It therefore makes the company soar to greater heights. All these approaches are in line with the methods of creating competitive advantage over other companies that it may be competing with in the hotel and tourism industry (Bromwich, 2019). The strategic management theory enables the company to utilize well the SWOT analysis model to understand the strengths, weaknesses, threat and opportunities that it may go through, some of the areas of strong areas that Hilton many explore on is the production of very quality foods. The weakness may be lack of enough expansion space to accommodate more number of customers in accordance with the covid 19 requirements.

Understanding of either Governance, Ethics or Corporate Social Responsibility

The theory of business management strategy helps the organization to understand ethics, governance, cooperate social responsibility in relation to the covid 19 pandemic that is ravaging the hotel and tourism industry. in terms of ethics this theory can enable the company to use the right information provided when creating a menu for a particular food. The right ingredients must be used to ensure that the quality of the food ids maintained. In addition to that, it enables the organization to have employees who have respect for the customers and their colleagues. Once there is respect and good treatment of these groups of people, there could be chances of success. The theory can enable the organization understand the norms that are important for the success of the company (Jofre & Sergio, 2016, p.1-94). In addition to the above named ethics, honesty in the supplies for goods is also very important, it will ensure that the organization supplies the right orders that the customer has made, even if there could be challenges in terms of the logistics that may be put in place to improve the supply, the company should develop a mechanism to bypass such huddles. The ethical responsibilities must utilize the concept of cooperate and social responsibility issues for every person working in the organization knows their roles appropriately, everyone should do his duty as required. The strategic management theory equips management in reducing the risk of inhuman treatment of the customers (Jofre & Sergio, 2016, p.1-94) The inhumane treatments include theft cases, for example in the situation where the company highly protects the welfare of the customers. There should be a proper guideline to explain how the customers complains should be handled if at all the problems arises (Jofre & Sergio, 2011). The strategic management theory ensures that the information and trade secrets of the company are kept very secretive, it reminds the employees and the management at larger about keeping all the information confidential.

The theory of the strategic management also addresses more on governance; it highlights how the management of the organization can govern the employees very well. Governance requires transparency. Transparency refers to the situation in which the management becomes so open in the mode of management, to improve trust among the employees, they should tell them if there could be any problem, the employees should know. another good form of governance is ensuring that there is adequate discipline among the employees (Jofre & Sergio, 2016, p.1-94). For example, if one employee does not work in line with the requirements of the rules and regulations of the organization, a proper action should be taken to him. The covid 19 situation has presented with myriad of new rules that challenges a number of people to follow. The rethinking strategy of management theory helps the management bypass such challenges. Keeping the above factors into consideration ensures that the organization is ruin very smoothly (Jofre & Sergio, 2016, p.1-94). it maximizes the codes of ethics around a particular business organization. When all these are put together, the organization automatically excels in its performance.


Strategic management theory is a very important aspect of business management. Through this, people can learn various ways of handling very tough situations that they are faced with. More importantly, it enables the organizations to know how to survive in this pandemic. It is therefore advisable that each organization in the world especially the hotel sector makes use of this theory to maximize the performance.


Grunig, J.E., 2016. Furnishing the edifice: Ongoing research on public relations as a strategic management function.Journal of Public relations research,18(2), pp.151-176.


Bromwich, M., 2019. The case for strategic management accounting: the role of accounting information for strategy in competitive markets.Accounting, organizatioStrategic Management: The theory and practice of strategy in (business) organizationsns and society,15(1-2), pp.27-46.

Jofre & Sergio, 2011 Strategic Management: The theory and practice of strategy in (business) organizations 1-94.

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