Building Capabilities at the Westward Hilton

Linh Nhat LeDaniel Jarosz

Strategic ManagementProf. Nicolas J. Hadgis

Before Westward’s was Purchased by Hiller.

Poor financial records, poor management, and poor maintenance of quality and building.

Introduction

After Westward was purchased by Hiller. Mr. Green, a seasoned hospitality professional, was

in charge of running the business. Excellent management (referencing Golden of

profitability)

The broad environment The industry analysis Strategic issues facing the

industry

Environmental Analysis

Social factors Increase in millennial travelers Growth of international market Popularity-gaining of group travel Gourmet-preferred trend Younger workforce Social media & online interaction Sustainability tourism

Broad environment

Economic factors Economic recovery Competition in airline

industry Emphasis on health and

wellness Increase in direct booking

Broad environment

Technological factors Demand for high-tech Focus on individualism &

automated devices Free Wi-Fi is associated with

luxury service Portable office

Broad environment

Political factors

Increased minimum wage Arrival of migrant workers

Broad environment

Customer Group travelers require price

discount Uniqueness is a must Service quality over price Request for reasonable price

components

Industry analysis

Industry analysis

Supplier Basing on the level of

importance & usage frequency

Basing on the differentiation

Competitor Slow growth in Phoenix market Oversaturated area 12 top-notch hotels

Industry analysis

The Boulders (5-star) Arizona Biltmore Resort and Spa (5-star) JW Marriott Desert Ridge Resort and Spa (5-star) Sheraton Wild Horse Pass Resort and Spa (5-star) Ritz Carlton Phoenix (5-star) Arizona Grand Resort (5-star) Hotel Palomar Phoenix (5-star) Wigwan Resort (5-star) Royal Palms Hotel and Spa (5-star) Sheraton Phoenix Downtown Hotel (4-star) Tempe Mission Palms hotel and Conference Center

(4-star) Pointe Hilton Tapatio Cliffs Resort (4-star)

Substitutes Economy or midscale hotels. (Over 150 in

Phoenix) Resorts

Industry analysis

Potential entrants Large economies of scale Great capital investment High switching costs Position in distribution channels Level of differentiation

Industry analysis

Requirement for survival Serve sufficient number of

customers Provide acceptable level of service

quality & products quantity Balance between expense &

revenue Maintain a moderate management

skills & team work

Strategic issues

Key success factors Provide exceptional, sustainable,

& consistent service Be aware of current trends and

issues Focus on human capital Execute cooperating leadership

style

Strategic issues

Strategic direction Analysis of internal

environment Analysis of resources and

capabilities Performance evaluation

Organizational Resource Analysis

Mission Employees’ lives are made better by treating

them with dignity, rewarding and recognizing their contribution to our success, and providing a safe, secure, flexible, and fun working environment.

Customers’ lives are made better by providing safe environment, excellent service, friendliness, and that extra thoughtfulness that makes visiting Westward like visiting a friend.

Owners’ lives better ensuring that the hotel is a leader on return on investment.

Strategic direction

Vision

Strategic direction

place

Values Dignity Values Focus Achievement Balance

Strategic direction

Owner Major investor – Karen Connor –

share the organization’s culture and values

Parent company – Hiller Enterprises – provide a strong financial support

Internal environment

Management Executive vice president of operations: Peter Green Has 20 years in the industry Believe in the future of Westward Communicate & model values and belief Care for the employees Enhance contact with the customers Be reluctant to delegate responsibilities

Internal environment

Employee Treatment with dignity and respect Employment basing on matching values On-job training with coworkers Enhancement of cross-level

communication Wage & reward system relying on hotel’s

overall performance Performance appraisal is separated from

reward system

Internal environment

Customer Service built on relationship

between customers & employees Listening is the key to customers’

satisfaction Unique feedback system Feedback sharing with employees

Internal environment

Culture Respect the value of team work Create an environment where

employees can be themselves Establish family-oriented

atmosphere

Internal environment

Have a unique value in the market Be hard to substitute Have a culture that value such

resources and capabilities Have been successfully using them

Resources & capabilities

Strengths Weaknesses

Excellent leadershipTop leaders are unwilling to delegate

Motivated and productive

employees

Yield management is skewed

Well-established reputationNo future successor’s followed by Green

SWOT analysis

Opportunities Threats

The increase in international market

Oversaturated market

The increase in Millenial customers who target luxury segment

increase in minimum wage

 

The growth of group travelEconomic recovery

Migrant immigrant influx

 Technology boom

 

Corporate-level Hiller Enterprises – diversification strategy in

unrelated industries Hiller Hotels – diversification strategy in

related industries

Business-level Westward Hilton – best-valued strategy

Performance evaluation

Future’s strategic direction Business strategy Evaluation of opportunities

and recommendations Implementation and control

Developing a Strategic Plan

MissionEmployees Provide training regarding skill set Emphasize organizational commitment Represent a creative and high-tech enterprise

Strategic direction

Customers Provide a high-quality service Tie quality with a reasonable price Respect the cultural differences Owners Take advantage of emerging opportunities Expand the property’s profit

Strategic direction

Vision Emphasis on the loyalty in the relationship

with customers by providing more personalized service and forming a diversifying environment to serve the international sector.

Strategic direction

Values Diversity Fairness Creativity Ambition Interpersonal communication Loyalty and commitment

Strategic direction

Best-valued strategyÞ concentrate in the core business using its

unique culture and workforce spirit

Business strategy

Recommendation & Implementation

Strengths Weaknesses

Excellent leadershipTop leaders are unwilling to delegate

Motivated and productive

employees

Yield management is skewed

Well-established reputationNo future successor’s followed by Green

Opportunities ThreatsThe increase in international market

Oversaturated market

The increase in Millenial customers who target luxury segment

increase in minimum wage

 

The growth of group travelEconomic recoveryEconomic recovery

Migrant immigrant influx

 

Technology boom 

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