Organization’s general manager resolves emergent initiatives for the organization’s owners involving resource utilization to enhance performance of the firm. This involves developing policies specifically designed to achieve these goals.
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Global organizations like Lilypad need to employ a structured tactical model to encompass views of its stakeholders. The decision by Lilypad Hotel’s management to market as individual brands or corporate brand depends on environmental opportunities and threats analysis, the firm’s internal weaknesses and strengths, the organization’s goals and strategy formulation.
The opportunities that the hotel can capitalize on if it operates as a corporate brand are many. First, the firm has in its possession iconic properties in strategic places. These could give them a great advantage since they will not have to relocate the already existing hotels.
Cross-property usage rates, which are 10% to 15% in corporate branded hotels like the Four Seasons, provide a perfect opportunity to increase their use, which is 5%. Thirdly, operating as a corporate body could allow the use of pooled funds to upgrade hotels that are not well furnished but are located in good places like La Plaza.
Lastly, operating as a brand will help reduce cost of operation such as advertisement. On the other hand, there are substantial threats to the corporate marketing idea. The loyal customers may rebel the radical changes in the hotel’s management resulting in losses. The managers who are not willing to relinquish their posts may also sabotage the program. Less furnished properties such as La plaza could also taint the reputation of the furnished ones like the Marine.
There are internal weaknesses that can affect Lilypad Hotel’s decision to market as corporate brand. One is the inflexible organizational structure. It could be hard to make the general managers give up their positions to take up new roles, which could be less prestigious as the ones they hold currently.
Secondly, the firm’s owners had the final say on all important company decisions. Worst still, they were against change. Another weakness is advertisement approach used which is on low profile products such as hangers hence attracting little attention.
Despite the weaknesses, the firm has a vast pool of strengths that can propel it to operate perfectly as a corporate brand. First, it enjoys the leadership of a CEO, Andre, who is flexible and ready to change. Unlike many traditional managers who are rigid to change, Andre considers the corporate idea floated by Ross and presents the idea to company owners.
Secondly, the hotels had perfect rooms that were well designed and maintained to satisfy their clients every need. Thirdly, the firm had a considerable number of clients, 115000 visitors annually, with good retention rates.
The firm’s managers have provided various strategic formulas that can help the firm control its threats and capitalize on its strengths hence ensuring success as a corporate brand.
The strategy will involve pulling funds together and using them to upgrade less developed hotels, leaving regional managers with considerable powers to make their own decisions on regional markets, all phones to change answering to address the corporation, advertisement to change from toiletries to magazines and brochures, and training organized for managers and employees to embrace the Lilypad’s new way.
The full operation of the firm as a brand corporation will boost the credibility of the company, increase its market share and ensure continuity and should be adopted.