UNIVERSITI TEKNOLOGI MARA

SELANGOR

FACULTY OF HOTEL AND TOURISM MANAGEMENT

HOSPITALITY STRATEGIC MANAGEMENT

HTH668

HILTON CAMERON HIGHLANDS

PREPARED BY:
MUHAMMAD FIRDAUS BIN ISMAIL (2021944751)
FATEN LIANA BINTI MOHD RAMLI (2016651824)
MUHAMMAD KHAIRUL AZMI BIN KHAIRUDDIN (2018265788)

PREPARED FOR:
MADAM NINA FARISHA ISA

SEMESTER
MAC 2021 – AUG I 2021
TABLES OF CONTENTS

1.0 Executive Summary……………………………………………………….... 2

2.0 Direction Setting……………………………………………………………. 3-8

3.0 Environmental Analysis…………………………………………………….. 9 - 15

4.0 Competitive/ Development………………………………………………….. 16 - 24

5.0 Strategy Development………………………………………………………. 25

6.0 Implementation Plan……………………………………………………….... 26 - 28

7.0 Conclusions…………………………………………………………………. 29

8.0 References…………………………………………………………………... 30 - 31
.

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1.0 EXECUTIVE SUMMARY

Hilton Worldwide is one of the world's largest hospitality firms, with more than
significant influence in the Hotels and resorts industry. Hilton Worldwide has defined the
hospitality business and developed a portfolio of 13 world-class brands, including our flagship
full-service Hilton Hotels & Resorts brand, in the nearly 100 years since our establishment. In
Malaysia, we had 13 hotel sets, the base for a great travel experience and services to meet guest
needs. The Hilton Hotels & Resorts in Malaysia are known for having excellent locations and
serving business and leisure travelers. The brands Hilton Hotel, DoubleTree by Hilton, and
Hilton Garden Inn are among the four to five-star hotels. In 2020, Hilton Hotel & Resorts
recorded the second-highest income in the hotel business worldwide, despite the current global
Covid-19 pandemic, which has caused some Hilton Worldwide locations throughout the world to
close their doors in an attempt to contain the virus's spread.

The current situation of the Hotel and Tourism Industry is somewhat depressing. Due to
the global pandemic of Covid-19 that streak the world. The pandemic is causing huge changes in
people's economic behaviors, which will surely influence the tourism industry and activity.
Control measures, such as essential travel limitations, avoiding physical contact, social
distancing, as well as adjustments in tourist' and patients' priorities, have suppressed excitement
in traveling. Therefore, the firm has decided to expand its operations in the local market by
complying with the government's standard operating procedure (SOP) and continuing to focus on
providing excellent business service at reasonable prices to build customer relationships and gain
people's trust to start travel. After an evaluation of potential scenarios, the firm management
team has decided to target Tanah Rata in the heart of Cameron Highlands to develop another
eco-friendly Hotel which will be named Hilton Cameron Highlands.

Hilton Cameron Highlands will provide ecologically friendly services, such as water
conservation, energy conservation, and trash reduction. Recognizing this, our hotel will
concentrate on the principle of saving money while also assisting in the protection of our one and
only Earth. Hilton Cameron Highlands' main concentration will highlight new and thrilling
experiences as well as a stress-free environment that will appeal to all emotions and leave an
impression. Hilton Cameron Highlands will provide a sense of incredible luxury to the area by
offering interactive events, services, and adventures, as well as unique culinary alternatives and
lively flexible areas perfect for work, collaborations, relaxation, and more.

The Hilton Cameron Highlands will aim for RM800 thousand in revenue and a net profit
in its first year of operation. The expected year-over-year revenue growth is 5%, which is in line
not only with the local economy's development expectations but also with the hotel industry's
forecast market growth. Our marketing approach will enable us to effectively express brand
values, establish close working relationships with customers and suppliers, and identify the needs
of our guests. Growth will be achieved by focusing on new business opportunities in both the
local and national communities.

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2.0 DIRECTION SETTING

2.1 HILTON CAMERON HIGHLANDS VISION, MISSION, AND VALUES

Hilton Worldwide has been a leader in the hotel business since its founding in
1919. Hilton Worldwide is still a shining example of innovation, excellence, and
profitability in business today. They have maintained their leadership because they kept
committed to their Vision, Mission, and Values.

2.1.1 VISION

Hilton's vision is ‘to fill the earth with the light and warmth of
hospitality’.

This statement shows Hilton's always committed to staying on top while

showing the most innovative ways to keep the earth alive and well through its
services. In the hospitality business, that is an excellent example of infinite
leadership. Hilton Cameron Highlands will focus on delivering exceptional
service and preserving the environment to make the hotel safe for humans and the
earth. The current generation values innovation, new technology, and green
hotels, this will increase guest confidence in traveling and staying.

2.1.2 MISSION

Hilton's mission is “to be the most hospitable company in the world –

by creating heartfelt experiences for Guests, meaningful opportunities for
Team Members, high value for Owners and a positive impact in our
communities.” Meanwhile, Hilton Cameron Highlands mission is “to provide a
unique experience, preserving the environment and encouraging tourists to
travel with purpose.”

This statement shows that the most important element for Hilton is how
the company interacts with its customers and other stakeholders. Hilton's mission
statement emphasizes two components of the company's operations: hospitality
and making a significant beneficial effect. It claims to be the world's most
welcoming corporation, which sounds like it's delivering the highest level of
customer service. By doing that, Hilton Cameron Highlands will take the full step
to cut the environmental footprint by half, reducing carbon emission by 61%,
sanding zero soap to landfills, and having a lasting powerful impact on the
community. With all these commitments every guest who stays at Hilton
Cameron Highlands will travel with purpose.

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 2.1.3 VALUES

Hilton Hotels and Resorts believes that to achieve its vision and mission in
the hospitality industry, the first and most key objective of Hilton is to provide
exceptional guest experiences. It requires implementing five-star guest
experiences. It's more than a core principle; it's a promise Hilton makes to its
customers and the rest of the world. These are the six component values that
Hilton Cameron Highland will stick on:

Hospitality: We're passionate about delivering exceptional guest experiences.

Integrity: We do the right thing, all the time.
Leadership: We're leaders in our industry and in our communities.
Teamwork: We're team players in everything we do.
Ownership: We're the owners of our actions and decisions.
Now: We operate with a sense of urgency and discipline.

2.2 STAKEHOLDERS (INTERNAL AND EXTERNAL STAKEHOLDERS)

2.2.1 OWNERS

Hilton Worldwide, originally Hilton Hotels Corporation, is a worldwide

hospitality business based in the United States that operates and franchises a large
number of hotels and resorts. Conrad Hilton founded the company in May 1919,
and it is now run by Christopher J. Nassetta the President and Chief Executive
Officer. He's an important person in the firm since he'll provide funding or shares
for the Hilton Cameron Highland to be built, as well as have a voice in how
business is going to be run.

2.2.2 EMPLOYEES

Employees are required to manage Hilton Cameron Highlands and

generate a profit since they have economic development in the hotel. They engage
with customers directly, earning money to sustain themselves, and contribute to
our business operations. Employees will be those who work at our hotel in
management, supervisory, and other positions. We need to provide benefits to
employees such as incentives, career growth, and job satisfaction to generate a
strong profit and provide excellent services. In a firm, a better work environment
will lead to success.

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2.2.3 SUPPLIERS

The sustainability of Hilton Cameron Highland depends on the suppliers.

These individuals or organizations sell goods to our hotel and rely on us for
revenue from those sales. Suppliers are typically concerned with the safety of
their products, to look out for their revenue generation, because their products
might have a significant influence on our business operations.

2.2.4 INVESTORS

Hilton Cameron Highlands requires and welcomes outside suppliers as

well as investors within the shareholders. They are responsible for ensuring that
all information, such as regular financial statements, is correct and timely.
Investors can also assist the company in making significant choices such as
mergers and acquisitions by approving or rejecting them. Every investor does
more than provide funds for us to explore projects or programs that will help our
hotel. They may also provide opinions and solutions, make connections,
encourage us, and assist us in promoting and improving our public reputation.

2.2.5 CREDITORS

Banks, suppliers, and investors are important creditors since they may lend
money to our hotel or supply goods in advance. Our hotel may be able to obtain
necessary supplies, particularly during peak season preparations, to ensure that all
services are up to standard. They're also interested in the company's revenue,
therefore we'll pay our creditors out of our hotel's revenues.

2.2.6 GOVERNMENT AGENCIES

The Hilton Cameron Highlands considers government agencies to be an

important group. Because Cameron Highlands is one of the preferred locations for
government agencies to hold meetings, family days, and even community events,
a solid relationship with them may bring us good business. They will also collect
taxes from our business, our workers, and any other expenses we make.

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2.2.7 UNIONS

Generally, Hilton Cameron Highlands will need a positive relationship

with the trade union to protect our stakeholders’ interests, such as employees. We
need to inform and advise trade unions on issues such as worker safety since they
are the ones who will use bargaining rights to achieve positive gains in salary,
benefits, safe working conditions, and social and political status.

2.2.8 MEDIA

We need media publications to spread the word about our hotels. We want
them to support us in broadcasting important announcements, activities, events,
and promotions. The hotel's relationship with the media began before it was
established. A positive connection with the media may result in a positive image,
which can lead to higher revenue and increased awareness of our hotel.

2.2.9 COMMUNITIES

Communities are important stakeholders in our hotel since each party,

such as a supplier and our hotel, benefits each other in different ways. Job
creation, safety, economic development, and health all have an impact on
communities. Securing those components will improve the hotel's progress and
revenue.

2.2.10 CUSTOMERS

Without customers, the Hilton Cameron Highlands would not exist. Our
hotel's products and services generate revenue from our customers. As a result,
they're curious about our hotel's performance. Providing high-quality services and
making significant measures to relate to and meet the demands of customers is the
key to ensuring the success of our hotel.

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2.3 STAKEHOLDER ANALYSIS

2.3.1 IDENTIFY STAKEHOLDERS

Shareholders Government Owners

Suppliers Customers Media

Employees Competitors Union

The community Creditors Investors

2.3.2 PRIORITIZE STAKEHOLDERS

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2.3.3 UNDERSTANDING KEY STAKEHOLDERS

2.3.4 CONCLUSION ON ANALYSIS STAKEHOLDERS

Conducting an analysis of stakeholders will help Hilton Cameron

Highlands to achieve good revenue and sustainability in the market. Stakeholder
management is the process of identifying and gaining support from our key
stakeholders. The first step is to figure out who our key stakeholders are. The key
stakeholders can be identified by the job they conduct and the projects they
manage become more important and more and more people are affected. Some of
these individuals have the ability to disrupt our projects and compromise our
position. Others may be passionate supporters of our work. The next step is to
rank them in order of power and interest on a Power/Interest grid. The third step is
to figure out what inspires our stakeholders and how to persuade them to change
their minds. Color-coding our key stakeholders' support for our hotel is an
efficient technique to illustrate their level of support.

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3.0 ENVIRONMENTAL ANALYSIS

3.1 ENVIRONMENTAL ASSESSMENT

Broad Factors Analysis, often known as PEST Analysis, is an important part of

external analysis. The four macro-environmental elements political, economic, socio-
demographic (social), and technology are assessed and summarized in a Broad Factors
Analysis. These variables have a substantial impact on a company's operational
environment, presenting both possibilities and challenges to the organization and its
competitors. Because it helps firms assess the risks and possibilities in the marketplace,
Broad Factors Analysis is commonly utilized in strategic analysis and planning.

3.1.1 POLITICAL FACTORS: THE GOVERNMENT HOLDS

EXTENSIVE POWER OVER THE HOTEL INDUSTRY

• Travel prohibitions have the potential to damage the hotel and tourism
industries.

The hotel sector is heavily regulated by the government. For

example, if the ruling political party imposes a travel ban, the tourism
and hotel industries will suffer immediately. A country can lose the
great majority of its economy with only one decision.

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 • Hotel owners would enjoy tax reform.

Taxes are another issue that the government has influence over. In
Malaysia, a tax change that allows hotel owners to pay less taxes
could benefit the business as a whole. Luxury and high-end hotels
could use the money saved to expand their guest accommodations.

• Fear during presidential elections.

Because the government has such a strong influence on the hotel

business, many hotel owners are on edge during election season,
fearing that a new President with new beliefs could quickly disrupt
the industry and overturn the former President's policies.

3.1.2 ECONOMIC FACTORS: WEAKENED CURRENCIES,

ECONOMIC CYCLES, AND TAILORED OFFERINGS

• A big investment expected to grow.

Globally, and particularly, hospitality is one of the most popular

investment areas. Growth is likely to continue into 2020 and beyond.

• The strength of currency can bolster the industry.

Currency strength and weakness can have an impact on a holiday

destination's appeal. People from other countries, for example, will
desire to visit if overseas currencies are stronger than the US dollar.

• The importance of economic cycling.

While economic changes have an impact on all industries, the hotel

industry is one of the most vulnerable. It is the first to go through
economic cycles and emerge victorious. Unemployment rates, job
growth, and travel expenses are just a few of the major aspects that
will determine if it succeeds.

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 • Tailoring to patrons in varying locations.

Hotel groups are increasing their profits and revenues by acquiring

international resorts, such as Marriott International's acquisition of
Starwood Hotels & Resorts Worldwide. Hilton Hotels additionally
alters its guest offers dependent on the hotel's location. Guests will
appreciate personalized incentives, which will entice them to return in
the future.

3.1.3 TECHNOLOGICAL FACTORS: SOCIAL MEDIA, BLOGS, AND

SCRATCHING REVIEWS

• New technology to be wary about.

Hotels used to rely solely on traditional media (print and

broadcast), but today they must also consider new media brought out
by the internet. The most significant technologies hotel owners can
utilize, such as Facebook, and mobile apps, but they must also be
cautious of.

• Fast sharing news thanks to the internet.

The news is available and updated 24 hours a day, seven days a

week, thanks to social media. Any occurrences near the hotel can be
reported in minutes, shared by thousands on social media, and pieces
written by media sites in seconds. It happens so quickly that hotel
owners have little control over it.

• Reviews on blogs can make or break a hotel’s reputation.

A review can be written by anyone and posted on a blog or shared

on social media. People that stay in hotels will take pictures and
provide an honest review of their stay. This has both positive and
negative implications for the hotel industry. Hoteliers who are
confident in their properties will pay social media influencers to
promote them. Hopefully, this will attract notice and bring in new
guests for the hotel brand. One negative review, on the other hand, is
all it takes to ruin a reputation.

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 • Traveling websites forces hotels to remain competitive.

People may now compare hotel prices more easily thanks to travel
websites. They can read reviews and comments from previous
customers on these websites. As a result, hotels must remain
competitive, or customers will go to a different venture.

3.1.4 SOCIOCULTURAL FACTORS: CUSTOMERS WANT CHEAPER

HOTELS AND TURN TO AIRBNB INSTEAD

• Big trouble with Airbnb.

The hotel industry's largest competitor is Airbnb. Travelers,

particularly millennials, like the large number of rooms available on
Airbnb. You can reserve a room through an app fast and easily, and
it's generally less priced than hotels in the neighborhood.

During high seasons, hotels frequently run out of rooms, and when
they don't, they raise room prices. Trying to locate a different hotel
used to be your only option, but today you can browse Airbnb and
almost certainly find somewhere comparable and less expensive. This
is a major issue for hotels, which frequently enjoy an increase in
profit during peak seasons when rooms are scarce.

Hotels have greater amenities than the typical Airbnb room. Many
hotels offer extra amenities such as pools, gyms, and even massage
parlors. You can also eat at one of the many restaurants on the
premises, such as Starbucks and McDonalds too.

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3.2 PORTER’S FIVE FORCES MODEL

Create a visually effective Porter's 5 Forces model for the business segment in
which your company operates. The model must contain content, no “empty” models.
Porter's Five Forces is a strategy for determining an industry's vulnerabilities and
strengths by identifying and analyzing five competitive forces that define every business.
A five-force analysis is widely used to define corporate strategy by identifying an
industry's structure. Porter's model can be used to understand the amount of competition
within an industry and improve a company's long-term profitability in any sector of the
economy. Michael E. Porter, a Harvard Business School professor, is the creator of the
Five Forces paradigm.

3.2.1 DEGREE OF RIVALRY

The more competitors there are, as well as the number of similar products
and services they offer, the less powerful a company becomes, for example in
Cameron Highlands there are various hotels to stay that offer so many kinds of
experience. If you’re looking for a relaxing Tudor-style hotel which was built in
1939 along with an adjoining golf course, you can stay at The Smokehouse Hotel.
If you are interested in a blissful fairy-tale-like world with calming woodland
views you must check out The Lakehouse Hotel. Another high rating place to stay
in Cameron Highlands is Moonriver Lodge, it is a family homestay situated in the
luscious mountains of Sigar Highlands.

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 Intensity of competitive rivalry is high when the number of competitors is
high, industry growth rate is low, product differentiation is low and exit barriers
are high. Therefore, if we want to develop a new hotel in the Cameron Highlands,
we must provide a level of service and experience that no other hotel in the area
can match. We will also provide a very reasonable price based on the visitor's
financial situation.

3.2.2 THREAT OF NEW ENTRANTS

The force of new entrants into a market has an impact on a company's

power. The less time and money it takes a rival to enter a company's market and
become a viable competitor, the more vulnerable an established company's
position becomes. The Cameron Highlands, as we all know, is a favorite vacation
spot for Malaysians who enjoy cold climates and lovely landscapes. As a result,
new competition will emerge quickly to develop new hotels in order to capitalize
on the possibility of profit. As a result, in order to maintain our status as one of
the most well-known hotels in the world, we must provide a level of service that
is unrivalled by our hotel competitors.

3.2.3 BARGAINING POWER OF SUPPLIERS

The next factor in the five forces model addresses how quickly suppliers
may raise input costs. It is influenced by the number of suppliers of a product's or
services' essential inputs, how unique these inputs are, and how much switching
to another source would cost a corporation. The fewer suppliers in an industry, the
more reliant a company is on them. As we all know, the Cameron Highlands is in
a distant area with limited access, thus hotel supplies are tough to come by, and
few companies are willing to supply the necessities. The existing supplier firms
will arbitrarily set or modify the price of hotel essentials due to the shortage of
supplier companies entering the Cameron Highlands. As a result, in order to
minimize losses, we must be cautious in the quote and trading procedures in order
to benefit both parties.

3.2.4 BARGAINING POWER OF BUYERS

One of the five forces is the ability of customers to drive down prices or
their level of power. It is influenced by the number of buyers or customers a firm
has, the importance of each customer, and the expense of finding new consumers
or markets for the company's output. With a smaller and more powerful client
base, each customer has more negotiating leverage to get better rates and
packages. Buyers compete with the focal industry by bargaining down prices,
forcing higher quality and leading focal firms in price wars. In the hotel industry,

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 customers have low switching costs because there are various places to stay in the
nearby areas. Most of the hotels will offer the same services, customers will
come, stay in and check out. In that circumstance, the hotel must ensure that the
service provided is worth the amount charged. Make sure that every visitor wants
to return and revisit the experience they had with us.

3.2.5 THREAT OF SUBSTITUTES

The final of the five forces is concerned with substitutes. Substitute

products are products with similar functions and can potentially limit the prices
firms can charge. Alternative goods or services that can be utilized in place of a
company's products or services are a threat. Companies that manufacture goods or
services with no near substitutes will have more freedom to raise prices and
secure favorable terms. There aren't just hotels in Cameron Highland for travellers
to stay in. There are also motels, resorts, homestays, and other types of lodging
available. To avoid losing consumers and being the last option, we must make it
easy for them to discover our hotel. Marketing should be upgraded. Every
available medium should be used to publicize our hotels. Ensure that our hotel is
the first option for visitors.

3.3 FUTURE TRENDS

Based on the two analyses, list the most important industry and external trends
that will affect your company in the future.

A trend is a predicted future development that will have a long-term and

significant impact on and influence anything. Current events are branching off in a new
path or growing much further. For me there are two industries that I believe will have a
significant impact on our hotel. Firstly, the variety of visitor attractions in the Cameron
Highlands, such as Time Tunnel Museum, Big Red Strawberry Farm, Cameron Highland
Butterfly Farm Boh Tea Plantation and many more interesting places to visit there, if one
of these places closes, it will have a massive impact on the hotel industry in the Cameron
Highlands, because tourists come to a tourist destination to relax and see tourist
attractions, if there are no more attractive sights to see, what is the point of visiting.

Secondly, the transportation industry will have a significant impact on the

hospitality industry. The Cameron Highlands, as it is known, is located distant from the
main city. Not everyone can afford to travel in their own car. Many vacationers will go to
Kuala Lumpur by bus or train and then change to a bus to Cameron Highlands. Visitors
who do not have access to a vehicle might rent one or use an e-hailing service. If the
transportation industry collapses, fewer people will travel to the Cameron Highlands.

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4.0 COMPETITIVE ANALYSIS

4.1 COMPETITIVE SET

Hilton Hotels is one of the largest hotel chains which owned several hotel brands.
The top three competitors for Hilton Hotels are The Smokehouse Hotel, The
Lakehouse Boutique Hotel and Moonriver Lodge Hotel. All the competitors are
few of the largest hotel chains which is suitable to compete with Choice Hotels.

4.1.1 THE SMOKEHOUSE HOTEL

This charming resort is reached after sixty kilometers of loops,

switchbacks, and steady climbs. The most well-known structure in Cameron
Highlands can be found here. The Smokehouse Hotel and Restaurant is located
next to the golf course. The utmost in colonial ambiance may be found at this
English Tudor style hotel, which was completed in 1939. Cameron Highlands, a
3-hour drive from KL, is literally on the edge of the man-made world and the
wild, where one may venture out and enjoy the latter while returning safely each
day to the former, The Smokehouse.

Enjoy a delicious traditional English breakfast, afternoon tea in the lovely

gardens with scones, cream, and strawberry jam, and dinner in the Highlands'
finest restaurant. Before retiring to one of the well-appointed suites, enjoy a drink
by the fireplace and unwind. The Smokehouse is a once-in-a-lifetime event worth
remembering.

4.1.2 THE LAKEHOUSE BOUTIQUE HOTEL

This charming hotel is 2 kilometers from the village of Ringlet and 7 miles
from the Boh Tea Estate, and is positioned in a Tudor-style country house
surrounded by farmland.

Exposed wood beams, vintage antiques, and table fans may be found in
the genteel rooms and suites (no air-conditioning). Flat-screen TVs, minibars, and
Nespresso machines are also available. Some of the rooms have four-poster beds.
The suites have additional living areas, as well as fireplaces and terraces in some
cases.

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 A sophisticated restaurant serving British cuisine, as well as a British-style
pub and an old-world lounge with a fireplace, offer complimentary breakfast.
There is an afternoon tea service on the patio, as well as a spa.

4.1.3 MOONRIVER LODGE HOTEL

This rustic farm is located 32 kilometers from Brinchang in the Cameron

Highlands, in a lush tropical valley. The modest, utilitarian rooms, which are
spread among three lodges, have fans and shared bathrooms with hot-water
showers.A TV lounge, a library, and dining areas are among the communal areas.
A playground and a children's pool are also available. Breakfast is served, and
there is a grill.

4.2 RESOURCE COMPARISON

To be a very successful company in long term, the company must focus on

all the five resources areas in the business and the five resources are Financial
Resources, Human Resources, Educational Resources, Physical Resources, and
Emotional Resources. All five are important because a lack of attention to the five
resources can cause a problem in the company.

4.2.1 FINANCIAL RESOURCES: FUNDING

Funding is the most critical aspect of launching a business. Even the

simplest home business has numerous initial fees, such as registering a business
name, getting a business phone line, and printing business cards.

Financial resources can be gathered from a variety of sources, the most

straightforward being the company's founder's personal accounts. Alternatively,
financial institutions, friends and relatives, private investors, and even the
Malaysian government may provide loans and lines of credit. Furthermore, many
private and public funds are available to entrepreneurs of different demographics
and personal conditions.

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4.2.2 HUMAN RESOURCES: EMPLOYEES

The ability and strength of an organization's personnel are critical to its

success. The company's objectives and goals will be carried out efficiently and
competently thanks to the hiring of experienced experts with a track record of
excellence in their field. A variety of strategies can be used to recruit strong team
members.

Staffing services and executive search organizations specialize in placing

professionals at various levels in a variety of industries. Finding personnel
through referrals from people whose judgment can be trusted is another option.

4.2.3 EDUCATIONAL RESOURCES: INDUSTRY KNOW HOW

Obtaining as much education as possible is maybe the most important

thing an entrepreneur can do when starting a new firm. They will be better
prepared to make smarter judgments about the path of their organization if they
understand their competition and gain a thorough awareness of their sector.
Professional trade associations targeted toward their business, their local chamber
of commerce, and the Small Business Administration are all good places to look
for educational resources.

4.2.4 PHYSICAL RESOURCES: PREMISES AND EQUIPMENT

Whether it's a modest home business or a multi-location retail enterprise,

every business needs adequate physical resources to thrive. This involves having a
suitable work environment, a functional telephone line, adequate information
systems, and successful marketing materials. This is one of the most expensive
aspects of business planning. As a result, it is critical for a business owner to
examine his demands realistically before making any purchases.

4.2.5 EMOTIONAL RESOURCES: SUPPORT SYSTEMS

For an entrepreneur, starting a firm may be an immensely difficult

endeavor. It is critical that she has a support network that can provide her with
inspiration and guidance as needed in order to keep her sanity and stay motivated.
This group could include friends and family members, as well as a mentor or
professional group.

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 4.2.6 TWO IMPORTANT RESOURCES FOR OUR COMPANY

• Financial resources: funding

• Physical resources: premises and equipment

4.3 CRITICAL SUCCESS FACTORS

4.3.1 FINANCIAL STRENGTH REPUTATION

The ability to create earnings and sufficient cash flow to pay bills and
repay debt or investors is referred to as financial strength. Understanding your
company's financial status will provide you with a greater understanding of its
financial health and enable you to make better day-to-day decisions in the hotel
industry.

4.3.2 MANAGEMENT QUALIFICATIONS

Managers are responsible for supervising employees, directing many areas

of everyday business operations, and ensuring that an office or business functions
efficiently in general. Depending on the size of the organization and the scope of
tasks, managers may be in charge of entire departments or specific projects. As a
result, managers must possess particular qualifications to aid their efforts.

4.3.3 KNOWLEDGE OF THE MARKET

Understanding the market context in which a company works is what

market knowledge is all about. Leaders comprehend clear industry trends, the
company's goods, and its customers at the most fundamental levels of
performance.

4.3.4 CUSTOMER SERVICE

Customer service is also crucial in the hospitality industry since it

influences customer feedback. If a hospitality business receives dozens of
unfavorable customer evaluations, additional potential consumers will be hesitant
to visit their location and obtain their products or services.

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4.3.5 AVAILABLE EQUIPMENT

Over the last decade, information technology has played a significant role
in the hospitality and tourism industries. Technology has aided in the reduction of
costs, the improvement of operational efficiency, and the enhancement of services
and customer experience. This not only helps to save money on labor, but it also
helps to avoid customer service issues.

4.3.6 RELATIONSHIP WITH SUPPLIERS

The main benefit of having good, healthy supplier relationships is that you
can get more value out of your company. The better you know your suppliers and
they know you, the more likely you are to receive personalized service,
discounted price, and special terms.

4.3.7 EXPERTISE IN CONTROLLING COSTS

Maintaining and increasing profitability involves cost control. Outsourcing

is a typical cost-cutting strategy since many firms discover that paying a third
party to complete a task is less expensive than doing the work themselves.

4.3.8 LOCATION

For tourism developers, having a good site is crucial. Overall proportion

of tourism activity flows and business performance related to local developments
is determined by the scale of influence originating from an appealing place.

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 Table 1: Competitive Profile Matrix

The Smokehouse The Lakehouse Moonriver

Critical Success Weight Rating Score Rating Score Rating Score
Factors
Financial 0.10 4 0.40 4 0.40 4 0.40
Strength
Reputation
Management 0.20 4 0.80 4 0.80 4 0.80
Qualifications
Knowledge of 0.10 4 0.40 4 0.40 4 0.40
the Market
Customer 0.10 3 0.30 3 0.30 2 0.20
Service
Available 0.10 2 0.20 3 0.30 3 0.30
Equipment
Relationship 0.10 2 0.20 2 0.20 1 0.10
with Suppliers
Expertise in 0.20 2 0.40 2 0.40 3 0.60
Controlling
Costs
Location 0.10 1 0.10 2 0.20 3 0.30
TOTAL 1.00 2.80 3.00 3.10

The ratings values are as follows: 1 = major weakness, 2 = minor weakness, 3 = minor strength,
4 = major strength. As indicated by the total weighted score of 2.80, The Smokehouse is the
weakest and Moonriver is the strongest.

Moonriver Hotel scored the highest among the competitors according to the CPM.
Moonriver also scored the highest in terms of the first three critical success factors which are
Financial Strength Reputation, Management Qualifications and Knowledge of the Market. The
lowest score Moonriver has is their Relationship with Suppliers. Other than that, Moonriver
scored fairly average on the other factors. To conclude, the competitor to look out for the most
for our company is Moonriver Hotel. According to the CPM, they are the most competitive
competitors among the three hotels that were evaluated.

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 4.4 FINANCIAL ANALYSIS

Table 2: Cash Flow of Choice Hotels and Its Competitors

December 31, 2020 The Smokehouse Moonriver Hotel Hilton Hotel

Hotel (RM in millions) (RM in thousands)
(RM in millions)
Operating RM 1685 RM100 RM270,556
Activities
Investing Activities (RM 284) (RM53) (RM251,167)
Financing (RM 1508) (RM320) (RM12,495)
Activities
Cash, Cash RM253 RM272 RM33,766
Equivalents, and
Restricted Cash

Table 3: Cash Flow of Choice Hotels and Its Competitors

December 31, 2020 The Smokehouse Moonriver Hotel Hilton Hotel

Hotel (RM in millions) (RM in thousands)
(RM in millions)
ASSETS RM 25051 RM7158 RM1, 386,672
LIABILITIES AND SHAREHOLDERS EQUITY
Liabilities RM24348 RM7727 RM1,410,183
Shareholders’ RM703 (RM569) (RM23,511)
Equity
RM25051 RM7158 RM1,386,672

Table 4: Income Statement of Choice Hotels and Its Competitors

December 31, The Smokehouse Moonriver Hotel Hilton Hotel

2020 Hotel (RM in millions) (RM in thousands)
(RM in millions)
Revenues RM20,972 RM2,053 RM1,114,820
Operating Costs RM19,172 RM1,746 RM781,248
and Expenses
Operating Income RM1800 RM307 RM318,642
Income Before RM1599 RM207 RM269,929
Income Tax
Net Income RM1,273 RM157 RM222,878

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 These are the cash flow, balance sheet, and income statement for The Smokehouse Hotel,
Moonriver Hotel and Hilton Hotel. In terms of cash flow, our hotel is better comparing to the
other 2 hotels. As for the balance sheet, Moonriver Hotel is better comparing to The Smokehouse
Hotel and Hilton Hotel because their liabilities are lower than these 2 hotels.

Table 5: Financial Ratio

Profitability Ratio Moonriver Hotel The Smokehouse Hilton Hotel

Hotel
Net Profit Margin 157M/2.95B 279M/5.37B 672M/492B
Net Profit aft. = 7.65 % = 5.19 % = 1.37%
Tax / Sales x 100
Return on Equity 157M/1.21B 279M/7.03B 672M/-0.02
Net Profit aft. = 12.96 % = 36.59 % = 671.98%
Tax /
Stockholders
Equity
x 100
Return on Assets 157M/4.53B 279M/25.93B 672M/1386672
Net Profit aft. = 3.47 % = 10.76 % = 4.86%
Tax / Total
Assets x 100
Current Ratio 491M/462M 0.47 236589/1386672
Current Assets / = 1.06 = 0.17
Current
Liabilities
Quick Ratio 491M/462M 0.47 0.17
(Current Assets – = 1.06
Inventories) /
Current
Liabilities
Debt to Equity 3.32B/1.21B 24.35B/703M 0.87B /0.02
Total Liabilities / = 2.74% = 34.64% = 43.5%
Stockholder’s
Equity
Debt Ratio 3.32B/4538 24.35B/25.05B 4.94%
Total Liabilities / = 73.26% = 97.19%
Total Assets

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4.5 ADVANTAGES AND VULNERABILITIES

The competitive advantage for Hilton Hotel:

• It nearly 100 years since our establishment

• It known for having excellent locations and serving business and leisure
travelers.
• It recorded the second-highest income in the hotel business worldwide
• It launched online resource to help make hotel opening easier.
• It provides from economy to upscale hotel brands.

The vulnerabilities of Hilton Hotel:

• There are only 13 hotel properties.

• It needs to improve its eco-friendliness.
• The current ratio for Hilton Hotel is still less than 1.
• The competitive profile matrix shows that Hilton Hotel does not scored
high enough.
• The customer satisfaction for Hilton Hotel is lower than its competitors.

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5.0 STRATEGY DEVELOPMENT

In terms of business and functional strategy of Hilton Hotel and Resorts, the hotel is
focused on market development in its existing markets of operations in the country. Hilton has
adopted the functional strategy of ‘Plan to Win’ through offering exceptional guest experience
and consistent improvement of its operations. The business and functional strategy of the
business involves strategic approaches for consumer relation development and relationship
development with local suppliers. However, Hilton Hotel has the scopes of implementing
following recommendations for developing its overall functional and corporate strategy in
hospitality sector.

As part of its current strategy of market development, Hilton can adopt the strategy of
aggressive marketing and bringing change in physical image of the hotels for making these more
appealing to customers according to the market trends. With regard to its operational strategy,
Hilton will focus on providing a combination of quality accommodation, aesthetic experience
and exceptional guest service. With this regard, implementation of environment friendly
operational practices will be of specific advantage for Hilton as hospitality consume and also the
international customers have become highly environment conscious. However, this will be very
effective to move its marketing strategy from ‘Consumers Served’ to ‘Consumers Heard’.

5.1 DRIVING DEMAND BY ENCOURAGING LOYALTY

The core of Hilton's growth strategy has been its shift from a vertically-integrated
hospitality and property management company to a focus on hospitality. Hilton
Worldwide will see its revenue continue to grow as it adds new hotels to its system, or if
existing hotels improve their own sales through higher occupancy or nightly rates. The
two go hand in hand, because it's easier to add new hotels if existing hotels are doing
well.

5.2 A STRONG FINANCIAL MODEL

Hilton does not incur much incremental cost on new hotels coming online but
benefits directly from the franchise revenue, the company will actually see its
profitability rise as it grows bigger. Mariott has also employed this franchise model to
great success. This operating model makes growth extremely lucrative. As long as the
company can keep attracting travelers and hotel operators.

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6.0 IMPLEMENTATION PLAN

6.1 PRICING STRATEGY, PRICE ADJUSTMENTS

The value that the Hiltons attach to their services must match with the perception
of customers who need to feel that they receive what is worth their money. As the Hilton
Hotels look to retain their repo with the highest class and quality services, their marketing
researchers and strategists should formulate policies for best pricing to widen their
market share. In other words, the pricing strategy of the Hiltons should be accompanied
with necessary adjustments to ensure mutual exclusivity between them and their
customers. as their customers benefit, the Hotels also gain.

6.2 PROMOTION PUBLICITY, SALES PROMOTION

Promotion is a communication tool that informs the target audience of the

business products and services. Promotional strategies include advertising and publicity,
giving coupons, and constantly reminding through phones and emails to customers with
the aim of making the Hiltons outstanding in the crowd. Also, technology provides an
integrated marketing communication which the Hiltons can consider as a promotion tool.
Makes it easy to combine all marketing communication equipment and ensure they
transmit robust and convincing messages which will market Hilton hotels to the target
customers.

6.3 PLACE AND DISTRIBUTION: DISTRIBUTOR, COST

APPORTIONMENTS, BENEFIT DISTRIBUTION

Place depicts the point where customers get the services and products a business
offers whereas distribution is the means of spreading the services in the market for
customers to buy Hilton Hotels offer globally luxurious services to the delight,
experience and destination of the tourist. Hence their market researchers should
demonstrate in their marketing strategies how they want the services of Hilton to
manifest in the hotel industry and institute a cost-effective exchange with the clients. The
Hotel’s strategic location is also carefully selected to raise the customer’s experience, and
this increases their chances of getting as many customers as possible in the Malaysia.

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6.4 ANALYSIS OF THE MARKETING

The 4Ps of marketing, commonly known as marketing mix is the entirety of what
Hilton Hotels can provide for the satisfaction of their trusted customers and any other
potential client. Marketing mix, therefore, refers to the defined variables that businesses
utilize in pursuing their anticipated level of sales in a particular market It brings together
available business tools for achieving the response that a company desires from the target
market about its operational objectives. It blends all marketing efforts and summarizes
them into four key ingredients (price, product, promotion, and place).

6.5 SWOT ANALYSIS

A SWOT (strengths, weaknesses, opportunities and threats) analysis is an

appropriate marketing tool for the Hiltons going by the constant changes in the hotel
business. The changes result from increasing travel uncertainties, high hotel chain
operational costs and copious shifts in travel booking as the current web tools
significantly outpace the old-style travel agencies. A look at the SWOT analysis of Hilton
Hotels reveals the following:

6.5.1 STRENGTHS

Hilton Hotels enjoy a vast experience and coverage of the hotel business
due to its long history of services and numerous worldwide branches operating
under sturdy and management. The hotels have well-established customer and
employee retention schedules, highly recognized brands and real technological
integration hence an improved service customization levels making the Hiltons a
pioneer for other hotel chains in embracing technology.

6.5.2 WEAKNESSES

Despite the milestone strengths, the Hiltons rely heavily on the American
markets and have poor flexibility due to their vast size leading to management
problems. Also, various government policies across the globe are a hindrance to
the hotels. The Hiltons have highly recognized brands, yet their share of the
global market is very limited.

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6.5.2 OPPORTUNITIES

Moreover, the Hiltons can focus on further research and development to

better their performance and services in the global markets. Also, they still have
more potential in the globally emerging markets for hotel businesses.
Furthermore, enhanced the use of technology and digitalization as well as
innovating their customer services can go a long way pushing them to higher
operational standards.

6.5.3 THREATS

The threats facing the Hiltons include acts of terrorism, political

turbulences in some countries and stiff competition from other well-established
hotels like the Marriott. Also, loss of core competencies and workforce coupled
with unfavorable economic shifts are a threat to the growth of the Hiltons.

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7.0 CONCLUSION

To conclude, business-level managers are responsible for setting strategic direction for
the firm, conducting continuing business analysis, selecting a generic strategy and posture, and
procuring and managing resources. Producing products and services at the lowest affordable cost
is what cost leadership entails. Differentiation refers to the process of striving to distinguish
products or services to increase their value to customers. Low-cost and differentiation aspects
combined in best-value strategies. Pursuit a narrowly focused market segment through cost
leadership, differentiation, or best value are all examples of focus strategies. Understanding the
life cycle aids companies in forecasting demand and developing strategies. Defined
organizational dynamics as the moves and counter moves of competitors. Competitive dynamics
are defined as aggressive competition, seeking a first-mover advantage, collaborative agreements
with stakeholders, threats of retaliation, seeking government intervention, barriers to imitation,
remaining flexible enough to move in and out of markets quickly, and avoiding direct
competition. Companies can foresee competition and build planning by understanding the
market's life cycle. The movements and counter-movements of competitors are organizational
dynamics. Other strategies that represent competitive dynamics are aggressive competition,
seeking a first-mover advantage, collaborative agreements with stakeholders, threats of
retaliation, requesting government intervention, imitation barriers, and keeping flexible enough
to move quickly to or from markets.

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