BME2: STRATEGIC MANAGEMENT

FINALS-ACTIVITY: CASE ANALYSIS

SUBMITTED BY :

JACQUELINE BAYHON

TRICIA JAVIER

SOMAYRA KADTUGAN

RALPH JOSEPH UY

MARIA DANIELLA VILLONDO

JEWEL ZOLETA

SUBMITTED TO:

MR. ELGIE TOLENTINO

NOVEMBER 30, 2O21

I. EXECUTIVE SUMMARY

Hyatt Hotels Corporation, headquartered in Chicago, is a

leading global hospitality company that was founded by Jay Pritzker in

1957 when he purchased the Hyatt House motel adjacent to

Los Angeles International Airport. Hyatt has over 500 hotels, a

significantly lower number than some of its rivals, but Mark

Hoplamazian, Hyatt’s CEO, told the Financial Times that "having a

smaller 'footprint' does not impact our ability to perform. We just have

to be thoughtful, deliberate and have a presence in key markets".

But having a small number of hotel chains among their rival is still a

problem especially when it comes to the brand name for the public.

This case analysis is written in a qualitative nature wherein

different areas of strategies are used to determine whether it will be

a success or not. The basis for the success depends on these five

criteria

1. ) profitability, 2.) effectivity 3.) ease of implementation, 4.) cost

requirement, and 5.) timeliness and these are measured through Likert

scale.

The goal of this case analysis is to determine and analyze

what Hyatt Hotels Corporation should do as their next step to

compete against their rival hotels around the world in the hospitality

industry. By
how should they strengthen their alliances and expand their firm to

achieve their goal as the well-known hotel among the other.

I.TIME CONTEXT

The problem was observed when Mark Hoplamazian was the

CEO of Hyatt. In his 20yrs of being a Hyatt veteran, Hoplamazian

has been in control of the chair since 2006. The Hyatt CEO stated,

the Financial Times that having a smaller “footprint” does not

impact our ability to perform. We just have to be thoughtful,

deliberate and have a presence in key markets’.

II. VIEWPOINT

Hyatt hotels want to deliver a quality performance hotel that will

provide your needs and exceed towards your expectation. Hyatt

hotel has over 500 hotels and all of them are great in performance.

Hyatt hotel wants more, and they will be putting up more Hyatt

hotel in the Philippines in the future. This study needs a strong and

effective strategies to encourage Filipino citizen to visit Hyatt hotel.

III. PROBLEM STATEMENT

Hyatt operates in a limited number of hotels (500 hotels)

since Mark Hoplamazian, Hyatt’s CEO, said that it is not necessary to

operate many hotels as long as the quality of performance can be on

par with
their competitors. However, Hyatt is still behind their competitors in

terms of quantity in this case.

IV.STATEMENT OF OBJECTIVES

a) Increase occupancy rate industry wide.

b) Hired employees with same outlook in the company to ensure the

high quality performance

c) To use technology to market the establishment to enable to

compete with competitors in the market

d) Reevaluate the positioning of Hyatt to create their own target

market

e) Expansion of the Hyatt hotel since 500 is significantly lower

number than its competitors.

V. AREAS OF CONSIDERATION

A. Internal Forces Strengths Weaknesses

a. Management

 The company has not being able to /

tackle the challenges present by the

new entrants in the segment and has

lost small market share in the niche

categories.

 Company compensate hotel /

 management teams based on

property performance by cost

management efforts.

b. Human Resource

 Discontent among employees /

based on salary issues due to global

penetration.

 Lack of work force diversity /

 General managers are trained /

professionals with the average of

22 years experience in hospitality

industry.

c. Marketing (4P’s)

Product

 Need more investment in new /

technologies.

 Limited success outside core business /

 Reliable distribution network that can /

reach the majority of its potential

market.

 Executing of new projects and /

generated good returns on capital

 expenditure by building new revenue

streams.

Price

 The hotel price costs a lot per stay. /

 free cash flows that enable the /

company with opportunity to

develop into new projects.

Place

 Majorly dependent in US market /

 Pursuing to expand overseas such as /

China, India and Brazil to utilize a

strong balance sheet and strong

brand recognition in large

growing markets.

Promotion

 Limited market share due to tough /

competition from international and

domestic players.

 Brands are not recognizably /

differentiated to public.

 Brands and tradition of innovation is /

widely recognized internationally.

B. External Forces Opportunities Threats

a. Cultural

 Increases variety of tourists/guests /

and tourist expenditures by operating

in a global scale.

 New trends in the consumer behavior /

can open up new market for the

Hyatt Hotels.

 Hyatt is becoming more accepting /

of different classes of people and

are ensuring they are better

equipped to

serve the necessities.

 Provides discounts and other offers to /

ensure that people are able to

afford

longer and more luxurious stays

 New environment regulations under a /

different country agreement could

be a threat to certain existing

product categories.

 The company is operating /

in numerous countries it is exposed

to

currency fluctuations especially given

 the volatile political climate in a

number of markets across the world.

b. Technological

 The new technology provides an /

opportunity to Hyatt Hotels to

practices differentiated pricing

strategy in the new market

 New and latest trends that Hyatt /

Hotel, such as the ‘Gold Passport’

attracts new target markets and

increases the loyalty of those old

guests

 The revenue of Hyatt hotel ($4.2B) /

can be used to purchase new and

latest technologies since their

liquidity

secures their growth

 Hyatt’s select serving brands are /

increasing internationally, exposing

them to new markets

 The ability of guests to write /

reviews has also ensured that

hotels provide better services and

no act of

discrimination takes place.

 No regular supply of innovative /

products.

c. Political

 Opening of new branches and /

markets because of government

agreement

 Most governments have ensured /

through legal measures that no

such discrimination is allowed to

take

place.
 Hyatt is strict in terms of the /

identification before allowing a

guest to use their facilities. This is

considered to be progressive keeping

in mind the rise of crime and

terrorism across the

world.
 Open borders and a welcoming /

political nature helps the growth of

the hotel industry.

 Some markets as the competition is /

paying higher margins to the local

distributors to grow strengths of local

distributors.
 Liability laws in different countries /

and company may be exposed to

various liability claims given change

in

policies in those markets.

d. Economy

 Hyatt has many brands and third- /

party operators that provides jobs for

people.

 The higher the demand of tourists /

going back and forth to Hyatt, the

higher the income of a certain

country generates.

 Hyatt Hotel has partnered with VISA /

credit-card which gives card

members exclusive benefits,

increases existing member spend.

 Hyatt’s select serving brands are /

increasing internationally, exposing

them to new markets

 Stable free cash flow provides /

opportunities to invest in adjacent

product segments

 Negative impact in international sales /

 of increasing trends toward

isolationism in the American

economy.

VI.ALTERNATIVE COURSES OF ACTION

ALTERNATIVE COURSES ADVANTAGES DISADVANTAGES

OF ACTION

1. Be on a look-out 1. A hotel built beside 1. Establishing a hotel

for a good location a location where in a different location

to where you'll put people are gathered does not guarantee

another branch. A can help the local that it will succeed

good location for a business progress, because you must rely

hotel is vital to a hence, improving the on locals, provide

hotel's success, quality of life for both attractions, and offer

especially if it is near the company and the a lower price than

tourist destinations locality. your competitors. You

and the will be spending

demographics of 2. Building hotels can money for various

that place is high. attract different amenities in order to

chains in businesses attract customers to

such as food chains, your hotel.

clothing and

entrepreneurship that 2. It involves a large

 provides jobs for budget for

people and helps construction, as well

boost the economic as a valuable source

state of the place. on who knows the

area and what kind

3. If Hyatt hotel is built of tourists visit it.

and businesses are

around, people are

most likely to spend

beyond their limits.

This would help in

boosting Hyatt hotel's

revenue, build a

positive reputation

and secure the

finances for a better

future.

2. Merge with a 1. More income 1.It requires a lot of

smaller entity that from the said money in terms of

offers more budget- budget- friendly budget for the

friendly stay-cation hotel. planning and

packages and construction.

advertise via different 2. The name of Hyatt

will be known more to

social media platform. the public. 2. Unemployme

nt, because some

3. Hyatt will be companies opt to

known not just reduce manpower.

because of their

offered best 3. Weaker

accommodation but management

also their stay-cation involvement or less

promos for the equity stake.

middle-class people.
3. Expansion of the 1. Political advantage, 1. Some alliance

firm whereas Hyatt because of the legal contracts are

Corporation will restrictions to entry, structured

create alliances with creating an alliance haphazardly and fail

other businesses in will assist the Hyatt to address risk

order to attract more hotel in expanding its allocation between

tourists. By forming operations in a foreign the

strategic partnerships market. parties.Furthermore, if

and alliances, the role the contractor's pay

of strategic alliances 2. An economic isn't linked to his or

as a source of advantage, lowering her performance,

competitive expenses and risk. addressing cost

advantage will grow, "blowouts" can be

and corporate 3. Organizational troublesome.

performance will advantage, through

improve. their affiliations, Hyatt 2. Loss of control over

Hotel can gain new important issues such

abilities and as product quality,

competencies that operating costs,

can help the hotel employees, etc.

improve its service.

VII. DECISION
MATRIX
Likert Scale

5 - Most

Likely 4 -

More likely

3 - Likely

2 - Less Likely

1 - Unlikely

Criteria ACA #1 ACA #2 ACA #3

Profitability 4 5 5

Effectivity 4 4 5

Ease of Implementation 4 4 5

Cost Requirement 4 3 5

Timeliness 4 5 5

Total 20 21 25
A. Profitability

ACA 2 and ACA 3 both had the same weight of 5, indicating

that this course of action is most likely to help the Hyatt Hotel in

making a profit. ACA 1 received a weight of 4 interpreted as more

likely, indicating that it is the second action course that will help the

company in financial gain.

B. Effectivity

ACA 3 obtained significant weight of 5 interpreted as most likely,

implying that forming an alliance will be extremely beneficial in

terms of expanding the business and it will attract more tourists, as

well as a variety of other advantages such as improved corporate

performance. In contrast to that , ACA 1 and 2 received a weight of

4 , which is viewed as more likely, implying that these two actions

are also effective in helping the company.

C. Ease of Implementation

ACA 3 received the greatest weight of 5, indicating that it is

the most likely action that will help the company in solving its problem

and forming strategic alliances with other businesses. However, ACA 1

and 2 received a weight of 4, which suggests that implementing this

action will be more challenging, but it will still be beneficial to the

organization.
D. Cost Requirement

ACA 3 had a weight of 5 interpreted as most likely and indicating

that forming alliances with other companies will require a higher

cost only to handle out the action. ACA 1 had a weight of 4, which

indicates that it is more likely, and it is lesser cost than ACA 3. ACA

2 received the lowest weight of 3, indicating that it is likely, and it is

lesser cost than ACA 1.

E. Timeliness

ACA 2 and ACA 3 were given a weight of 5, indicating that

they are the most likely and that they are the most timely actions

that the company should consider. However, ACA 1 received a

weight of 5, indicating that it is more likely, and that this is a less timely

action.

VIII. RECOMMENDATION

Aca 3 got the highest based on the matrix, we recommend

that expansion of the firm and creating strategic alliance with other

companies is a good plan because as mentioned, as of now, only

500 hotels are opened by Hyatt but compared to the other

competitors of Hyatt, 500 is a small numbers and accomplishment.

And creating strategic alliance can be a good foundation of the

expansion of the firm, because the plan to expand is not easy so

having an alliance is a huge advantage

 PLAN OF ACTIONS

CORPORATE VISION

To become the world’s #1 leading accommodation segment

in the whole industry of Hospitality where we provide guests, owners

and associates the luxury of experience that they will never forget.

CORPORATE MISSION

The mission of our hotel is to provide outstanding lodging

facilities and services to our guests. Our hotel focuses on individual

business and leisure travel, as well as travel associated with groups

meetings. we emphasize high quality standards in our rooms and food

and beverage divisions. We provide a fair return on investment for

our owners and recognize that this cannot be done without well

trained, motivated and enthusiastic employees.

CORPORATE OBJECTIVES

1. Increase the level of profit by producing more hotels in

the market that can offer a variety of inclusiveness

2. Increase customer loyalty and satisfaction by providing benefits

that guests can receive with or without the Hyatt card system

3. Gain access to new and innovative technologies to improve

the quality of performance Hyatt offers

 4. Use the advantage of social media platforms for attracting

new target markets in every country Hyatt has taken place

5. Stretch out on an international scale to find other business

locations and improve the financial state of Hyatt Corp

STRATEGIES

1. Expand through series of acquisitions and alliances.

2. Offering discounts, peer to peer traveller services in travel sites.

3. Investing in new technologies.

4. Offer a loyalty program to increase repeat customer.

POLICIES

1. 100% SMOKE-FREE

 Hyatt has been 100% Smoke-Free since 2008. For safety and to

assure that our facility is not exposed to items or actions that create

an odor which is unhealthy and objectionable to our guests and

staff, and that is difficult to remove from the air, carpet, walls,

and furniture we do not permit smoking tobacco, marijuana,

illegal drugs, e-cigarettes, vape pens, vaping, cartridges

containing the liquid of nicotine, hookahs, incense, cooking,

cigars, candle
 burning, the use or diffusing of patchouli oil or other strong-

smelling plant-based essential oils or synthetic products in our

facility.

 Guests are encouraged to notify Front Desk staff immediately if

they smell cigarette, marijuana, or other objectionable odors. This

policy is not intended to stop people from smoking, but to regulate

where they smoke and how it affects others. A Designated

Smoking Area is provided outside and away from the building.

Marijuana is prohibited at all times.

2. CANDLE, INCENSE, ESSENTIAL OILS: Candle, incense, essential

oils (diffusing, vaporizing, etc.) are prohibited. These items and

activities will be treated as smoking, a fine accessed, and the guest

may be evicted with no refunds.

3. NO-COOKING, COOKING APPLIANCES, COMBUSTIBLES, OR

FIREWORKS: The safety of our guests, staff, and this facility is extremely

important to us. Except for the microwave and refrigerator units

that the hotel provides, preparation of food in guest rooms by any

type of cooking appliances is prohibited. A minimum fee of $300.00

will be charged for cooking in a room, including, but not limited to

coffee makers, hot plates, toaster ovens, water heaters, rice

cookers, combustible, open flame, barbecue grill, burners, heating

appliance, or any other item intended for cooking. Open fires,

flames or cooking
grills, either charcoal or gas, and fireworks are not allowed

anywhere on hotel property. A microwave is available 24 hours for

all registered guests to use in our breakfast area. Coffee is also

available twenty-four

(24) hours in the breakfast area.

4. GUARANTEED RESERVATIONS: All reservations must be

guaranteed with a valid major credit card. Guests must be 18 years

and older. We accept Visa, Master Card, American Express, and

Discover Card. We do not charge your credit card at the time you make

your reservations. Your credit card guarantees your reservations.

Please make sure to receive a reservation confirmation number

when you make a reservation. Reservations must be cancelled Forty-

eight (48 hours), hotel time, prior to your arrival date, in order to

avoid a one (1) room night, plus tax cancellation fee. Reservations will

be held until 11:00 a.m. the morning following your scheduled arrival

date. If you have not checked in by that time, a NO-SHOW charge of

one room night, plus tax will be charged to your credit card and the

balance of your reservations will be cancelled. Hyatt is not

responsible for weather conditions, personal emergencies, or schedule

changes.

5. CHECK-IN TIME: 4:00 p.m.

6. EARLY CHECK-IN/PRE-REGISTRATION: Early check-in is offered based

on availability. If you require a guaranteed check-in for arrival prior to

4
p.m. then Pre-Registration and payment may be required. Please

contact Front Desk staff directly to make reservations and complete

a credit card authorization form prior to your arrival

7. CHECK-IN REQUIREMENTS: Guests must be at least 18 years of age to

check in at All Seasons Inn & Suites. In the interests of security and

to prevent fraud, guests are required to confirm their identity by

providing their valid government issued photo identification (State

driver’s license, passport, etc.) at check-in. A valid, signed, and pre-

approved credit card in the name of the guest registration is also

required. It is your responsibility to fully understand the manner in

which your bank processes pre-authorizations and charges to your

credit/debit card.

8. QUIET HOURS: 10:00 p.m. to 9 a.m. If you become aware of

a disruptive guest, please contact Front Desk staff immediately by

room phone or in person. Televisions, voices, or other devices must be

kept at a respectful low level at all times. Doors should be opened

and closed quietly. No congregating or running in halls.

9. VISITORS: No visitors after 10:00 p.m. Visitors must notify Front Desk

upon their arrival. Visitors must be accompanied by the registered

guest at all times. Visitors are not allowed to use guest amenities

including the hot tub, continental breakfast, or Wi-Fi. As a

registered guest, you are responsible for your visitor at all times.
10. CONTINENTAL BREAKFAST: Our Continental Breakfast is free to

registered guests only. Visitors may not join a registered guest for a

free breakfast. Visitors may pay $6.00 per person at the Front Desk. If

you desire a full hot breakfast, Front Desk staff is happy to provide you

with a discount coupon to a local restaurant.

11. CONNECTING ROOM POLICY: Connecting rooms are subject

to availability and can only be booked directly through the hotel.

Please call the hotel directly to discuss available configurations. Guests

with a pet requesting a connecting room will be assessed a pet fee

for both rooms. The following connecting combinations are available.

Upstairs- Connecting standard rooms (two queen beds in each

room). Downstairs-King Handicapped room to a standard room (two

queen beds).

12. DISCOUNTS: We do not offer discounted room rates for

participation or employment in organizations such as AAA, AARP,

government employees, etc.

13. CANCELLATION: hyatt is not responsible for weather

conditions, personal emergencies, or schedule changes. Reservations

must be cancelled forty-eight (48 hours) hotel time, prior to your

arrival date, in order to avoid a one (1) night full room cancellation fee.

If reservations are cancelled less than 48 hours before the arrival

date, your credit card may be charged the full room charge plus

taxes. If you are

staying more than one (1) night, only the first night and taxes will

be charged. If you cancel any reservation, you must obtain and

save the cancellation number for your records.

14. NO SHOW CHARGES: Failure to check in on the scheduled arrival

date for a reservation guaranteed with a credit card will result in a No-

Show fee being charged to your credit card. You will only be

charged the first night, one (1) night’s full room rate plus taxes and

the balance of the reservation will be cancelled.

15. GROUP RESERVATIONS: Large group/Block reservations must be

cancelled eight (8) weeks prior to arrival date. Reservations

cancelled after that date may be charged one (1) full room charge

plus tax for each room reserved and the balance of their

reservations cancelled.

16.HOUSE RULES: Groups, School groups, sports/ski teams, weddings,

special events, etc. Please contact hotel directly for current House

Rules Schools, sport/ski teams are directed to also review their specific

school or sport organization Code of Conduct.

17. DO-NOT DISTURB AND ACCESS TO ROOMS: To provide all of our

guests with an exceptionally clean and safe hotel experience, we

provide daily housekeeping. Our Housekeeping Staff will honor the

“IN” door hanger once during a twelve hour period indicating

that the
room is occupied. The Housekeeping Staff is required to enter the room

at subsequent times to clean the room, check for safety, and verify the

condition of the room.

18. The safety and wellbeing of our guests is our top priority. In

response to COVID-19, we have introduced enhanced measures

for guests’ safety and peace of mind. They include:

CARING FOR YOUR WELLBEING

 In room policy: Sanitization of high-touch areas using a high-grade

disinfectant; Increased frequency of cleaning air filters;

Alcohol wipes provided in your amenities; Complimentary hand

sanitizers by calling the front desk

 Check In policy: Disinfection of key cards Sanitization of counter

and table surfaces; Sanitization of pens after every guest

use; Mandatory masks for our front desk; associates Hand sanitizing

gels for guests’ use

 Spa Policy: Sanitization of high-touch areas using a high-

grade disinfectant; All treatment products and tools are

cleaned and sanitized under UV lamp; QR code available for guest

to view menu; Therapist wear mask at all time for all treatment;

Air filtration devices in operation at all times

 In fitness studio: Compliance of government's social-distancing

guideline; Hand sanitizer available at the entrance and fitness

area ;Clean equipment between each guest use and High quality
 disinfectant wipes available; Sauna Keys are cleaned and sanitized

under UV lamp; Overnight cleaners deep clean equipment and

surfaces Air filtration devices in operation at all times.

IMPLEMENTATION OF THE PLAN OF ACTIONS

Functional Strategies/Activ Person Time Budget

Areas ities Responsible Frame

A. Product 1. Expand Hotel Every 5 $10M

Develop through series Director, CEO years

ment of acquisitions

and alliances.

B. Customer 1. Take the Customer Weekly $50,00

Service guest’s reviews Service 0.00

Area seriously when it

comes to their

stay/experienc

es in order to

find what areas

Hyatt is lacking

and what

needs to be
 improved.

C. Technolo 1. Investing in IT Department Every 2-3 $5.5M

gical new Years

Area technologies

that will help

Hyatt to

maximize its

advantages,

such as

developing

websites, AI

housekeeping

and etc.

D. Marketin 1. Offer loyalty Sales and Monthly $10,00

g and programs to Marketing 0.00

Promotio increase repeat Head

n Area customer.

2. Offering

discounts peer
to peer traveller

services in

travel sites.