ADVANCE CORPORATE STRATEGY OF HOTELS

INTRODUCTION
A Advance corporate strategy entails a clearly defined, long-term vision that organizations set, seeking to create Advance corporate value and
motivate the workforce to implement the proper actions to achieve customer satisfaction. In addition, Advance corporate strategy is a continuous
process that requires a constant effort to engage investors in trusting the company with their money, thereby increasing the company’s equity.
Product differentiation refers to the effort of organizations to offer a unique value proposition to consumers. Typically, companies that manage
to differentiate their products from the competition are gaining a competitive edge, thereby realizing higher profits. Often, competitors employ
cost leadership to directly compete with these companies; yet, customer satisfaction and customer loyalty are the factors that eventually make or
break a strategy. Organizations that manage to deliver customer value unfailingly are those that revisit their Advance corporate strategy regularly
to improve areas that may not deliver the aimed results. Business strategy deals with the ways in which a single-business firm, or an individual
business-unit of a large firm, competes within a particular industry or market, while corporate strategy deals with the ways in which a
corporation manages a set of businesses together. The relative importance of business-unit factors in determining performance differences of
business-units between firms has been widely documented, and the literature has revealed that industry plays a critical role in affecting business-
unit profitability. However, previous research has produced mixed results regarding the corporate effects, which were widely defined as the
effects of corporate-level factors on the performance of a business-unit.
Advance corporate strategy

A corporate strategy is a strategic plan of an organization that entails a clearly defined and long-term vision. The process of creating a corporate
strategy is to set out a basic plan with strategic goals and milestones for what’s to be achieved and when. It aims to create corporate value,
promote workplace culture and motivate the workforce to take appropriate actions toward achieving overall objectives. Developing a successful
and well-informed strategy required continuous efforts and thoughtful attention. In today’s volatile work environments, if you want to keep pace
with ever-changing industry demands, you need to keep updating your corporate strategy. Let’s explore the importance of a corporate
strategy through this example: Starbucks, the global coffee chain, acquired new businesses such as Teavana, Seattle Coffee and Ethos Water at
every step of their supply chain. By owning more businesses, Starbucks gains greater control over the market and can make diverse decisions,
from manufacturing to distribution. This is how several businesses stay ahead of the competition and ensure control through large market shares.
There are different types of corporate strategies that determine the success of an organization. Corporate-level strategies are developed by the
highest level of management and they impact business growth and opportunities in the future. The importance of corporate-level strategy is
rooted in its various types. Let’s see how these strategies make a difference:
Advantages of Strategy

It cannot only increase the profits of the business, but it also allows a good cash flow and even some borrowing power. Below are some
advantages are–

1) Increase of the profitability

In case if you enter a joint venture or invest in some companies, there will be a good profit, and also you will have some part of ownership.

One must know that in case if their company is getting involved with many companies, they also need to diversify their corporate strategies
according to the situation. One must understand that calculating the actual return in your investment is necessary for the overall growth of the
company.
Role of Strategy

There is a total of three strategy levels in our business.

We already know about the Corporate Strategy level; the other two are-

Business strategy level

Functional level

These three strategy levels are dependent on each other.

The business strategy level is focused more on the needs and capacities at the business level. The business strategy level focuses more on
the market share and to expand it. The business strategy level has to be more knowledgeable and experienced as their ultimate goal is to increase
the market share and target more consumers.

The functional strategy level is more about coming up with practical decision making, which is more concerned about improvements which
should be taken in business. The strategy needs to get channelized as per functional strategies associated with R&D and Marketing. All the
business strategies and corporate strategies must turn out to be a better functional result for the best outcomes of any organization. After being
aware of the roles in three strategic levels of business, let us now have a look upon the components-

Components

The components include-

Allocation of the resources

Organizational design

Management of portfolio

Tradeoffs of strategy
How to Actualize a Corporate Strategy for your Business

To actualize your strategy, you must have a look at different types of corporate strategies available for you. So, let us have a look upon some of
the essential types of corporate strategy here and now-

1) Growth Strategy

It this type of strategy, you need to find out the difference amongst varying integrations and diversifications that will let your business appreciate
the strategic growth. You need to incorporate the growth platforms in your strategy for fuelling revenues and ensuring growth.

2) Consolidation of Corporate Strategy

While making this kind of strategy, you need to find out the relevance of consolidation from the viewpoint of strategic management; as
consolidation deals with the acquisitions and mergers of different smaller companies in larger ones for ensuring the economic advantages.
Corporate strategy strives to create value, develop a unique marketing advantage, and
seize maximum market share.

A corporate strategy entails a clearly defined, long-term vision that organizations set, seeking to create corporate value and motivate the
workforce to implement the proper actions to achieve customer satisfaction. In addition, corporate strategy is a continuous process that requires a
constant effort to engage investors in trusting the company with their money, thereby increasing the company’s equity. Organizations that
manage to deliver customer value unfailingly are those that revisit their corporate strategy regularly to improve areas that may not deliver the
aimed results.
Corporate strategy is hierarchically the highest strategic plan of the organization, which defines the [[Business Goals corporate goals and ways
of their achieving within strategic management.

The role of corporate strategy is to ensure that the value of the enterprise as a whole is more than the sum of its parts. Corporate strategy is an
ongoing process — particularly given today’s volatile competitive environments. Consistently delivering value creation that outpaces peers
demands that organizations enhance their capabilities and regularly revisit their strategies. Developing a winning corporate strategy requires a
relentless focus on value creation — and thoughtful attention in three important areas.

First set a clear, shared, long-term vision that motivates the team and engages investors. Where do we want to be in five or ten years?

Then define a portfolio strategy to realize the vision. Which businesses should we be in? Where should we expand and where is it best to divest?

And finally, establish the corporate policies and processes that reflect the corporation's parenting approach. How do we link strategy to value
creation?
Corporate Strategy Framework

In developing corporate strategy, the first task is therefore to assess the current level of fit between the characteristics of the parent and its
businesses (Exhibit 2). What is different and unusual about the parent? How do most senior managers think about their roles? What „mental
maps“ do they have regarding business success, appropriate responses to problems, and the nature of unexploited opportunities in the
businesses? What systems and processes link the parent with its businesses and how are they used in practice? Understanding the characteristics
of the businesses is equally important. In contrast to traditional portfolio matrix views, our focus is not on the businesses per se (such as whether
they are in growth areas or have advantaged positions), but on the influence, positive and negative, that a parent is likely to have on them. All
businesses will have some improvement opportunities, but which of these opportunities could be realized only with the help of a parent? What is
the underlying reason why business-level managers need help in addressing a particular opportunity? What is the nature of the help they need?
Successful parents have clear insights regarding these questions, but there is no magic formula. Different parents have different insights:
The Importance of Corporate Strategy

The importance of a corporate strategy hinges on its being an effective means to allocate a company’s resources, establish business expectations
and improve a company’s competitive position, as well as increase shareholder value to something beyond the sum of its physical assets.

Allocates Company Resources: A corporate strategy is a tool a company uses to limit the allocation of its resources to the best available business
investment opportunities. During strategic planning and budgeting processes, a company assesses the performance of each business unit. Based
on its findings, the company acquires and divests assets and revises resource allocations. Leaders allocate company resources according to the
desirability of each business unit’s market opportunities, which determines its planning priorities.

Corporate Strategy vs, Business Strategy

The fundamental differences between corporate and business strategy are explained in the points here under:

Business Strategy can be viewed as the strategy designed by the business managers to improvise the overall performance of the firm. On the
other hand, Corporate Strategy is the one expressed in the mission statement of the company, which describes the business type and ultimate
goal of the organization.

Business Strategy is framed by middle-level management which comprises of division, unit or departmental managers. Conversely, corporate
strategy is formulated by top level managers, i.e. board of directors, CEO, and managing director.

The nature of business strategy is executive and governing, whereas the corporate strategy is deterministic and legislative.

While the business strategy is a short term strategy, corporate strategy is a long term one.
Create value of corporate strategy

Value creation is the primary aim of any business entity. Creating value for customers helps sell products and services, while creating value for
shareholders, in the form of increases in stock price, insures the future availability of investment capital to fund operations. From a financial
perspective, value is said to be created when a business earns revenue (or a return on capital) that exceeds expenses (or the cost of capital). But
some analysts insist on a broader definition of "value creation" that can be considered separate from traditional financial measures. "Traditional
methods of assessing organizational performance are no longer adequate in today's economy," according to ValueBasedManagement.net. "Stock
price is less and less determined by earnings or asset base. Value creation in today's companies is increasingly represented in the intangible
drivers like innovation, people, ideas, and brand." When broadly defined, value creation is increasingly being recognized as a better management
goal than strict financial measures of performance, many of which tend to place cost-cutting that produces short-term results ahead of
investments that enhance long-term competitiveness and growth. As a result, some experts recommend making value creation the first priority
for all employees and all company decisions.

There are several important components of corporate strategy that leaders of organizations focus on. The main tasks of corporate strategy are:

Allocation of resources

Organizational design

Portfolio management

Strategic tradeoffs
There are several important components of corporate strategy that leaders of organizations focus on. The main tasks of corporate strategy are:

Allocation of resources

Organizational design

Portfolio management
Strategic tradeoffs

#1 Allocation of Resources

The allocation of resources at a firm focuses mostly on two resources: people and capital. In an effort to maximize the value of the entire firm,
leaders must determine how to allocate these resources to the various businesses or business units to make the whole greater than the sum of the
parts.
 Corporate strategy strives to create marketing advantage

A hotel marketing strategy starts with understanding your target audience and defining your objectives. Of course, your message won’t be the
same for international travellers as for locals, so it’s important to keep this in mind when defining your strategy. Once you’ve defined your target
audience, it will also help hone in on your objectives and set realistic goals to achieve those objectives. An ideal strategy will help optimize the
number of bookings you generate, while at the same time building brand awareness and managing your reputation. To meet the changing
demands of the market, you need to be able to adapt your strategies regularly to meet these changing needs and stand out against the
competition. So what are the best marketing strategies for hotels? Let’s find out.

7 marketing strategies for hotels

A hotel marketing strategy should be dynamic, changing depending on the season, the year and the market trends. Below, you’ll find a list of
some of the most up-to-date marketing strategies for today’s world.

Invest in SEO for your website

Your hotel’s website is as good as if it didn’t exist without Search Engine Optimization. With 75% of travellers starting their search for hotels on
a search engine, you have a captive audience that you can capitalize on if your website is optimized correctly. This is why it’s important to invest
in resources that will make the SEO of your website excellent.

Don’t underestimate the power of data

Nowadays data is readily available, and one of the best hotel marketing strategies is using this information to make data-driven decisions. One of
the most powerful tools is Google Analytics, which will help you understand how users interact with your web, the top channels that are driving
bookings, and to better grasp the demographics of your target audience

Define your unique value proposition

With a plethora of supply, why should guests choose your hotels over others? This is where your unique value proposition comes into play. Once
you decide what makes you different, you can use this information in your marketing messaging to set yourself apart from the competition. Keep
in mind your marketing campaigns should be equally unique.

Reward direct bookings

Direct bookings are like gold in the travel industry because you don’t have to share any portion of your profits with third parties, which is also
ideal for a hotel’s profitability
Corporate strategy to seize maximum market share

In recent years, a growing number of business practitioners and theorists have postulated that one way for a company to increase its return is by
increasing its market share, and studies appear to have confirmed this relationship. But the authors of this article refuse to accept the blanket
inference that “more” is necessarily always going to mean “better.” A large market share, they point out, can spell more trouble as well as more
profit for a company; a given project promising higher returns than others will surely entail greater risks as well. Given this direct link between
profit and risk, it behooves companies to manage their market shares with the same diligence as they would manage any other facet of their
businesses. This concept of managing market shares leads to some intriguing possibilities. Although most companies can profit by attempting to
increase their market shares, some may conclude that they are at (or possibly beyond) the point at which expected costs and risks outweigh
expected gains. The authors suggest various strategies that these companies might consider in attempting to manage their market shares.
CORPORATE STRATEGY WORK TO ESTABLISH THE OVERALL VALUE OF A HOTEL
The most successful hoteliers are savvy operators who continually look for ways to learn and improve the way they do things, gaining an edge
over the competition. But only a small percentage of independent hoteliers use revenue management strategies and thus limit their revenue-
generating potential.

Read on to learn the strategies that will help you realise optimal revenues and profit for capacity-constrained and perishable assets (rooms, in this
case).

Before we get into that, you need to understand the basics.

Revenue management refers to the strategic distribution and pricing tactics you use to sell your property’s perishable inventory to the right
guests at the right time, to boost revenue growth. Other products such as your amenities and food and beverage offerings will also come into the
picture.

Revenue management revolves around measurement of what customers from different segments are willing to pay, and this can only be done by
measuring and monitoring the supply and demand of your hotel rooms.

Every traveller has a maximum value they can offer your hotel; revenue management is about capturing as much of this value as you possibly
can. Preferably you’ll do this by convincing the guest to book direct, purchase extensions, up-sells or extras, and become a return visitor.

The best strategies are based on the understanding that hotel pricing is fluid, and can change from one day to the next. This is why you should
never be afraid to increase your rates. Customers actually expect increases over time – most businesses where consumers spend money are
varying their prices based on demand and shifts in costs.
Strategic goals and motivate employees to achieve them

goals have long been used as a quantitative measure for employee performance, many organizations find that the goal-setting process takes a
huge amount of time and is, frankly, not very effective. However, when done correctly, goal-setting can help improve employee engagement in a
way which elevates performance and benefits organizations overall, according to recent McKinsey research.

Setting goals can be as challenging as meeting them. Here are three things to keep in mind when establishing effective employee goals:
Involve employees from start-to-finish

The purpose of goals is to help employees improve – naturally, it makes sense to include them in the entire process. Securing employee buy-in
allows you to help develop their short- and long-term goals, and increases the likelihood that they will be achieved. Managers should jointly
develop goals that are SMART (specific, measurable, actionable, results oriented and time bound). Doing so inspires commitment and allows
individuals a sense of ownership in achieving their goals. Encouraging employees to set stretch goals also helps push performance and serves as
a motivator for ongoing development.
CONCLUSION

Executives must select their firm’s source of competitive advantage by choosing to compete based on low-cost versus more expensive features
that differentiate their firm from competitors. In addition, targeting either a narrow or broad market helps firms further understand their customer
base. Based on these choices, firms will follow cost leadership, differentiation, focused cost leadership, or focused differentiation strategies.
Another potentially viable business strategy, best cost, exists when firms offer relatively low prices while still managing to differentiate their
goods or services on some important value-added aspects. All firms can fall victim to being “stuck in the middle” by not offering unique features
or competitive prices.