ASSIGNMENT 3 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 32: Business Strategy (574)

Submission date 28/02/2023 Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Pham Tran Thu Tra Student ID GBD201515

Class GBD0907 Assessor name Le Xuan Nguyen

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understand that making a false declaration is a form of malpractice.

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TABLE OF CONTENTS
I. INTRODUCTION.............................................................................................................................. 5
II. SUMMARY OF THE SWOT AND STRATEGY SCENARIOS OF HYATT ................................................... 6
1. SWOT ....................................................................................................................................................... 6
2. The Scenario............................................................................................................................................. 7
2.1. Development Scenario (SO) .............................................................................................................................................7
2.2. Improved scenario (OW) ..................................................................................................................................................7
2.3. Defensive Scenario (ST)....................................................................................................................................................7
2.4. Loss scenario (TW) ...........................................................................................................................................................7

3. Object ...................................................................................................................................................... 7

III. STRATEGIC CHOICES ................................................................................................................... 8

1. Business strategy...................................................................................................................................... 8
2. Strategic direction .................................................................................................................................... 8
3. Strategic Method ..................................................................................................................................... 9

IV. EVALUATE ALTERNATIVE STRATEGIES – THE SAFE CRITERIA ........................................................ 9

1. Suitability ................................................................................................................................................. 9
2. Acceptability ............................................................................................................................................ 9
3. Feasibility ................................................................................................................................................. 9

V. CONCLUSION .............................................................................................................................. 9
REFERENCES ......................................................................................................................................... 9

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I. INTRODUCTION
The Hyatt Hotels Corporation, also known as Hyatt Hotels & Resorts, is a global hospitality
corporation headquartered in the Riverside Plaza neighborhood of Chicago. It manages and leases
upscale and corporate hotels, resorts, and leisure properties. In 1969, Hyatt started expanding
worldwide. Hyatt has grown through the creation of new properties and acquisitions, with the
purchase of AmeriSuites being the largest growth to date. Hyatt Hotels Corporation (NYSE: H)
expanded its brand presence into 11 more European areas following the acquisition of Apple
Leisure Group (ALG) (about.hyatt.com, 2022). More than 1,200 hotels and all-inclusive properties
were part of the company's inventory as of September 30, 2022, and they were spread across 72
nations on six continents (Hyatt, 2022).

For extensive organizational assessment analysis, including internal and external environmental
assessment studies. These analyzes will develop strategic recommendations for the organization's
future actions. Analysis and examination of the company's external and internal environment will
be reviewed and covered in the previous two reports. In this report, Hyatt will outline its strategic
options and evaluate their relevance, adaptability, and viability. At the same time, Hyatt will
provide a SWOT summary, corporate scenarios, future goal setting, and strategic options and
assessments.

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II. SUMMARY OF THE SWOT AND STRATEGY SCENARIOS OF HYATT
1. SWOT
OPPORTUNITIES STRENGTHS
O1: The opportunity to improve operating costs S1: Strong brand portfolio and high brand
and increase profit margins for businesses thanks regconition.
to the development of management technology. S2: Hyatt has a good financial capacity.
O2: Opportunities for businesses to develop and S3: Hyatt offers a wide range of excellent
expand international markets thanks to the solid services.
foundation of US foreign relations with other S4: Hyatt has a large pool of highly skilled
countries. employees who have years of expertise.
O3: Economic growth and increased customer
spending get an opportunity to restore revenue
and financial indicators in business operations.
THREATS WEAKNESS
T1: Having lots of competitors industry. W1: Hyatt does not place a high priority on or
T2: The rise of Inflation and Interest makes invest heavily in the Service segment.
company pay more interest. W2: Hyatt's market share is negligible, which
T3: Because of the dominance of two major parties prevents the company entry into a large
in American politics, there is little stability and market.
frequent policy changes. Affect the company's
long-term focus and development.

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2. The Scenario
2.1. Development Scenario (SO)
With strengths in brand (S1), finance (S2) and human resources (S4), Hyatt will accelerate resilience
(O3) and access to international expansion (O2).

2.2. Improved scenario (OW)

With the opportunity to reduce administrative costs and increase profit margins through the
application of technology (O1), along with the ability to quickly recover (O3) and easy access,
expand the international market (O2 ) , Hyatt may be improving its market share (W2).

2.3. Defensive Scenario (ST)

With financial strength (S2) can help overcome the formulas of interest rate and interest rate (T2).
Together with brand strength (S1) and excellent service portfolio (S3) can surpass the conditions
of competitors (T1).

2.4. Loss scenario (TW)

In the worst case scenario, Hyatt could lose market share if it doesn't invest heavily in services
(W1). Along with the high competition of competitors (T1), it will lead to the weakness of market
share (W2) becoming more negative.

3. Object
In order to achieve the development scenario, Hyatt will accelerate resilience (O3) and access to
international expansion (O2), thanks to its strengths in brand (S1), finance (S2) and human
resources (S4). Hyatt has set goal for the period from 2023 to 2028:

- Hyatt aims international expansion, estimated revenue of USD 6.5 billion per year. Hyatt builds 5
more intergrated resorts, 60 other buildings (including franchised hotels) in six continent (6 top
travel countries) within 5 years.

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III. STRATEGIC CHOICES
1. Business strategy
Cost-leadership: Cost leadership: Thanks to the development of management technology, Hyatt has
the opportunity to reduce operating costs and increase profit margins. Therefore, the company will
have a competitive advantage in price. This will help increase profits for the business. Hyatt will use it
to construct more resort complexes and other buildings (including franchise hotels), increasing
customer reach and driving revenue.

Differentation: Hyatt must offer higher-priced, higher-quality products and services to differentiate
products from the market to achieve revenue growth.

2. Strategic direction
Since Hyatt's goal is to achieve $6.5 billion per year in revenue, which is a 10% increase over the same
period in 2022, in addition to providing existing services, the business must develop new products and
services, and penetrate into new markets, to attract more customers. Therefore, New Products and
Services, Market Development and Conglomerate diversification are suitable strategic directions.
However, the capacity of Hyatt only allows businesses to deploy in the direction of the Conglomerate
diversification strategy, which is considered the most suitable.

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 3. Strategic Method

IV. EVALUATE ALTERNATIVE STRATEGIES – THE SAFE CRITERIA

1. Suitability
2. Acceptability
3. Feasibility

V. CONCLUSION
The study uses internal and external research to describe Hyatt's strengths and weaknesses. In
order to identify targets and create strategies for future scenarios along with the business's growth,
the organization also capitalizes on its strengths and competencies. Hyatt offers a Growth strategy
plan to maximize resources and capitalize on existing advantages and competencies. Using the
SAFe criteria, examine the strategy in three distinct ways.

REFERENCES
Hyatt, 2022. Our Company. [Online]
Available at: https://investors.hyatt.com/investor-relations/our-company/default.aspx
[Accessed 15 1 2023].