Each individual student will write a 1,500 word report on one critical strategic management issue for an organisation of their choice in the Tourism and Hospitality industry.
Students are encouraged to engage with a Tourism and Hospitality business identified in the course or draw upon their own industry experience to uncover a key strategic management issue for a business in the Tourism and Hospitality industry.
Some key areas of strategic management in the Tourism and Hospitality industry that may be of interest could include the following; competition, resources, competitive advantage, business level strategy, corporate level strategy, organisation structure and controls, globalisation, entrepreneurship, leadership and sustainability.
This assessment seeks to develop the critical thinking skills and abilities of students through the identification of a relevant strategic management problem for a Tourism and Hospitality business and the development of a viable strategic solution for that problem.
This Assessment is individual and contributes 30% to the final mark for the course.
The word count limit is 1,500 words (plus or minus 10%), excluding Appendices.
HOS801: Strategic Management in Tourism and Hospitality
Title: The Need for CSR in Hyatt Regency Sydney
CSR activities are the special responsibility of the organisation that helps the organisation as well as the government for developing the operating community or workplace. In this detailed study the discussion has been made on the Hyatt Regency Hotel Sydney, one of the largest luxury hotels in Australia. The discussion has been made to conclude as well as justify how and why CSR activities are needed by Hyatt. It has been justified that CSR activities might be helpful for Hyatt to get positive attraction from the government of Australia that might be further helpful to get more opportunities to raise funds from the market.
Hyatt Regency Sydney is one of the reputed hospitality organisations in the Australian market having 892 rooms with all kinds of luxurious facilities. The hotel has Sailmaker, Lobby Lounge and Rooftop Bar for the guest so that they can enjoy their leisure period inflexible way. The hotel is also providing 3,700 sq ft sleek meeting space for the event holders to perform or to organise any business meetings or special occasions. The organisation has more about 500 employees with specific skills and qualifications (Hyatt, 2019). In this report the discussion would be made on the need for CSR activities by Hyatt Regency Sydney for developing as well as improvising their business performance in the market.
3.1 Stakeholders’ Accountability
As per the CSR activities, an organisation has to keep focusing on the need of the external environment with the aim to develop the society that is helpful for increasing the market value of the organisation. Font & Lynes, (2018) commented that stakeholders are the responsibility of the organisation and CSR activities helps any hospitality organisation to satisfy the needs of their stakeholders. The statement has concluded that Hyatt Regency Sydney has enough market reputation in the Australian market, but still they have to keep focus on their CSR activities so that the organisation can keep their stakeholders satisfied in the market.
3.2 Shareholders’ Interest
Shareholders are the source of funding for an organisation, and hence the role of the organisation is to keep focus on their interest. Hughes & Scheyvens, (2016) commented that more social activities done by the organisations are helping them to attract numbers of investors from the market. The statement has deduced that the CSR activities are focused on the relationship with the community or public in the targeted market and hence more activities related to the CSR activities will help Hyatt Regency Sydney to sustain their shareholders in the market. The statement has even concluded that support of shareholders will help the organisation to raise as many funds to perform CSR activities.
3.3 Management and organisational Culture
CSR activities are embedded with the social activities that create an argument in the internal environment of the organisation. Palacios-Florencio et al., (2018) stated that as per the perspective of the aim of the organisation, the organisation has to earn income from the market by producing and selling the products and services and CSR is not the part of the business. The statement has deduced that CSR activities can reflect the organisational culture of the organisation. In the context to the chosen organisation Hyatt Regency Sydney, it can be concluded that the organisation is also needed to build the structure including CSR department, of which all the chosen member will focus on the CSR activities.
4.0 Recommendation4.1 Improving perspective of stakeholders:
It is the responsibility of the organisation that it should focus on the demand of the stakeholders in the targeted market. It has been noticed that the chosen organisation Hyatt Regency Hotel Sydney has the highest rate of customers in the market. Thus, it can be worked positively for Hyatt to develop its future market. In addition, it is being suggested that the Hyatt might focus on the current trends and the living standard of the customers by using various mobile applications. It will help the organisation to add more services to their list for satisfying their customers.
4.2 Improving the financial position of the organisation:
Financial position is an important factor for an organisation when it comes to the development of the organisation. As the development of the organisation is depending on the financial condition of the organisation hence, the organisation Hyatt Regency Sydney is needed to keep focus on the interest of shareholders in the market who are the sources for generating funds. It might be helpful for Hyatt to collect miscellaneous amount for the development of the business in the targeted market. In addition, it might be also helpful for Hyatt Regency Sydney to extend the market in the national as well as international market.
4.3 Improving the internal environment of the organisation:
The internal environment of an organisation is the strength of the organisation. Hyatt Regency Sydney has about 500 staff in the hotel that is enough for a large sector hotel like Hyatt for managing the tasks. Hence, it has been suggested that the organisation Hyatt is needed to more focus on the training and development program for developing the personal as well as professional skills of the employees that would be helpful to improve the overall performance of the hotel in the hospitality sector of Australia. In addition, an excellent working culture will be helpful for Hyatt to get more loyal customers from the targeted market.
5.0 Finding and discussions
From the above discussion, it has been found that CSR activities are part of the development cycle of an organisation. The CSR activities are an important part of the organisation that helps the organisation to gain the positive attention of the stakeholders that includes government, banks and customers present in the market. From the above discussion, it has been concluded that CSR activities are done by the organisation for satisfying the internal environment of the organisation, stakeholders of the organisation and shareholders of the organisation.
Tourism is defined as that world’s largest industry and makes a huge contribution to the economies of developed and emerging countries. At the same time, the tourism company are facing with an individual set of crucial challenges they have to describe with in order to ensure the growth that is long term (Xiao, Yoonjoung Heo & Lee, 2017). Particularly, CSR management can be considered as one of the most vital challenges for the tourism organisations and the significance of the challenges is developing with ever-increasing the expectations of the customers.
Furthermore, the importance of quality in relation with the long term business growth in the hospitality company is widely analysed by the researchers and practitioners of the industry, managing the quality is proved to be intangible, but significant area of the interest to the travel service providers. Zientara, Kujawski & Bohdanowicz-Godfrey, (2015) stated that this is the reason as it is one of the most crucial bases for generating the competitive edge of the marketplace.
A huge level of dedications to some approach has allows a number of tourisms company to develop the sizes and revenues to the significant expansions. Leaders need to make sure that the Exodus is provided with the opportunity to tip without any kind of pressure or embarrassment to achieve CSR goals and objectives (Serra-Cantallops et al., 2018). Exodus also desires the leaders to think with what could go wrong in advance to the tours. Some of the challenges occurring in the tourism industry are linked with the nature of the service industry specifically.
Nowadays it has been found that there are some challenges which are linked with the nature of the services industries in a random way. The similar factor CSR has been discussed in the above section in the context of the accommodation sector. The discussion has been made on how the hospitality sector or hotel industry is focusing on the corporate responsibilities for satisfying the different external stakeholders of the organisation.
It has been stated that the tourism industry is effective to a broad range of some external shocks including the economic crisis as well as the threats linked with the different illness and various viruses. It has also been noticed that the tourism sector is highly dependable on the hotel industry because hotel industry is supporting the tourism sector for encouraging visitors to visit the destinations. Hence, it can be assumed that hotel industry and tourism sector are interconnected to each other. In addition the discussion can also reveal that the hotel sector or the hotels should also be needed to contribute to the CSR activities by launching waste management program in the market. According to this, the customers who waste their food can pack their foods for next consumption and of they are not interested to pack their foods than the management can share those foods with poor families. This is how a hotel can contribute to the social activities to procure food starvation issue.