Four Seasons Hotel Case Study Essay

A ac callers strategy passel be identified by figuring break through what business sector approaches and actions the company undertakes. Thompson et al. (2009) outline the key elements to look for in the operation of understanding a companys strategy. quadruple Seasons differentiation ground wayed strategy is evident from the organisations strategic actions. shrills decisiveness to build on high-end sumptuosity and modern conveniences so as to outdo the old grand hotels (p.3, para.3) is an example of efforts to practise mod opportunities or defend against threats as well as actions to outcompete rivals, which provides footing for differentiation.By focusing on medium-sized hotels of exceptional character with exceptional service levels (p.3, para.3), quatern Seasons defines the business scale and differentiates itself from competitors through providing superior quality and service. This is cardinal of the moves to build a competitive expediency then outcompeting rivals. The action to go public to raise funds (p.3, para.4) is a response to changing outer circumstances, which supports the business growth and paves the way for Four Seasons to be the merchandise leader. In order to serve diverse need of the guests, Four Seasons extends into the fields of luxury resorts (p.4, para.1) and residential properties (p.4, para.4).With such action to diversify, it enables Four Seasons to serve a market time out. An example of actions to merge or acquire rival companies is the willpower erudition of Regent (p.4, para.2), and a strategic alliance is formed via selling spike to Prince Alwaleed (p.4, para.4). By doing so, Four Seasons improves its competitive bunk as the market leader. The carrier bag of focus from ownership to trouble services (p.4, para.3) reflects Four Seasons efforts to pursue raw(a) opportunities or defend against threats and its responses to changing external conditions. The business model of Four Seasons is defined by t his strategic shift.The regional focal point structure (p.5, para.4), the finalization process of budget plan (p.6, para.2), the human resource management (p.8, para.3), and the enlisting policy (p.8, para.5) are examples of how functional activities are managed in Four Seasons. By optimising functional activities, it enables improved quality and customer service provided. Four Seasons actions to variegate geographic insurance coverage lie in its international expansion curriculum (p.7, para.3), which enables business growth by reaching new markets and new customers.The metier ofproperties that reflects the local culture (p.8, para.1) is another example of actions to diversify, which leads to differentiation. The actions to strengthen resources and capabilities that support quality and customer service improvement include the training and development programs (p.9, para.1) and the new initiatives to offer added convenience to guests (p.10, para.2). By linking the actions with the strategy, it can be summarised that a companys strategic actions are driven by the strategy it employs (Thompson et al., 2009).strategic Fit with External Environment strategicalally relevant influences from the external surroundings can have a significant tinge on the companys strategy. Therefore, the strategy that the company employs must be responsive to the external environment (Thompson et al., 2009). The external environment outside Four Seasons affects its strategy in many aspects.PoliticalThe events such as the Iraq war, the September 11th snipe and terrorism impact the hotel industry significantly, which lead to decreased profitability. As a response to the circumstances, Four Seasons dedicates to international expansion. Through wider geographic presence, it allows Four Seasons to bedevil more(prenominal) profits in the areas that are less impacted hence enhancing the overall profitability. Amidst these challenges, Four Seasons manages to maintain its position as the market leader, which owes to its globalization strategy.EconomicAs one of the largest factors that shape the strategy of Four Seasons, the economic recession pulls down the luxury hotels business and poses crisis for Four Seasons. It is no longstanding profitable to build and own hotels. As a result, Four Seasons shifts its focus from hotel ownership to hotel management services so that the monetary risk is in the first place borne by the hotel owners. Through management trading operations, Four Seasons is able to make the dress hat use of its expertness and provide exceptional quality and service to the customers, thus gaining a competitive advantage over rivals.SocialThe trend of change magnitude international travel both in business and unfilled markets creates more opportunities for the hotel industry. In order to better serve the travel needs of its quick customers and attract new international travellers, Four Seasons continues to expand its geographic coverage b y adding five to seven hotels per year to key destinations, thus capitalising on the emerging opportunities. In response to the changing lifestyle of the global travellers who wish personalised service, Four Seasons constantly innovates new ways to make business travel more efficient and leisure travel more enjoyable. By doing so, the differentiation strategy through superior customer service is enhanced. technicalIn support of the rapid development of information technology, Four Seasons enhances its management services via operating a central reservations system, recommending information technology systems and development certain database applications. It enables Four Seasons to be more profitable through optimised management services.LegalThe nature of the leasehold agreement with three properties makes it difficult to sell the ownership and shift to management services, which results in adding losses to Four Seasons accounting. It reinforces Four Seasons decision to concentrat e on management operations. In order to reduce the impact of these properties, Four Seasons continues to seek ways to improve the operating profitability.EnvironmentalTo hail the major trend of being environmental friendly, Four Seasons initiates recycling programs for glass, write up and other biodegradable garbage, in support of its uncompromised customer service. Such approaches champion Four Seasons maintain its leadership position in luxury hotels.Strategic Fit with Internal EnvironmentA comprehensive evaluation of a companys resources and capabilities reveals the strengths and weaknesses in the present strategy so that adjustments and improvements can be made (Thompson et al., 2009). Four Seasons strategy facilitates the decision making on its internal activities in different ways.Four Seasons focuses on the market niche of luxury hotels. In order to better serve the diverse needs of the focused customers, Four Seasons extends into the fields of resorts and residential prop erties so that the customers who use the hotels can enjoy the same quality in resorts and residence clubs. By retaining the customer base and competing in different segments, Four Seasons is able to maintain its position as market leader. i of the strengths of Four Seasons is the attractive locations of its properties. With business and leisure travellers as the target customers, Four Seasons locates its hotels centrally in the commercial and financial districts of the worlds leading cities, while resorts and residential properties in foremost leisure destinations. It allows Four Seasons to attract more potential customers with its location advantage that are unmatched by rivals, thus gaining a competitive advantage.One major distinctive competency of Four Seasons is the exceptional customer service, which is delivered by its valuable human assets. The human resource management at Four Seasons makes sure that its employees treat the guests as they would wish to be treated. With hig h rung morale and high employee satisfaction, Four Seasons customers can expect the best achievable customer service. Through the training and development programs, Four Seasons equips its employees with advanced skills and expertise.As a result, the employees are able to deliver services above in demand(p) standards while carrying out innovative solutions to solve customers concerns. With these highly trained and maestro staffs, Four Seasons stresses ways to differentiate itself from rivals through superior customer service.The expertise in hotel management is another competitive capability of Four Seasons. In order to make the best use of its expertise, Four Seasonsconcentrates on hotel management operations. To improve the operating profitability, Four Seasons engages in every aspect of the hotel operations on behalf of the owners, even before the hotel is built.