Global hotel group meets the challenge of managing growth

Background

The company operating in Asia Pacific is the largest hospitality management group in Australia, New Zealand and New Caledonia, operating multiple brands across all star classifications. The company is a wholly owned subsidiary of a French organisiation that owns or manages over 2,500 properties worldwide.

Following an unprecedented period of growth through acquisition, the Chief Executive embarked on an ambitious program to:

  1. Consolidate and integrate the operations, and simultaneously
  2. Maintain its strong acquisitive posture, whilst
  3. Develop the strategic architecture

The Process

We were retained to work with the Executive team to develop the strategic architecture for the business. The Strategic Fit framework was adopted as it “created a common language and provided a simple conceptual model to develop our strategic agenda”.

The Strategic development process resulted in us undertaking a benchmark study of customer needs and expectations. On a strategic level, the study provided market segmentation insights, which informed subtle differences between the business and leisure segments. The study also revealed key opportunities for enhancing customer satisfaction, loyalty and organisational performance. This knowledge helped the company to focus on things that really matter to customers and to more effectively allocate effort and resources. The revelation of such subtle mismatches between segments has assisted managers to more precisely meet customers’ expectations in an intensely competitive environment.

As the corporate strategy evolved, the organisation was restructured to reflect the strategic intent. Branding initiatives were established, which continue to generate large scale improvements in thinking and operations.

Finally, the Human Resource Department has put 13 managers through the Strategic Fit Accreditation Program. This program provides practitioners with the knowledge and skill of the Strategic Fit process so that it can create unity of purpose and effort throughout the whole organisation.

The Outcomes

The company has managed the challenge of simultaneous growth and consolidation through:

  • developing a focused strategic agenda
  • understanding customers needs and expectations more clearly than its competitors
  • structuring the business to reflect its strategic approach
  • building the position and equity of its brands without huge media spends
  • undertaking initiatives that will create unity of purpose and effort

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