Disclaimer: This is an example of a student written essay.
Click here for sample essays written by our professional writers.

Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com.

External Factors Affecting Hyatt Regency

Paper Type: Free Essay Subject: Commerce
Wordcount: 5276 words Published: 15th May 2017

Reference this

Strategic planning determines where an organization is going over the next year or more and how its going to get there. Typically, the process is organization-wide, or focused on a major function such as a division, department or other major function. “Simply put, strategic planning is clarifying the overall purpose and desired results of an organization, and how those results will be achieved.”(Mc Namara, September 30, 2010)

Strategic Planning in any organization clearly define its strategy or direction by using its available resources, making decisions for achieving its strategy including its investment and the manpower. Many organizations can use SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) in strategic planning process. It helps an organization to find out the future roadmaps, where to go.

It deals with:

Where are we now……………………………Current situation.

Where we want to be…………………………..Objectives

How to go there…………………………………..Strategy

Which is the best possible means………………..Tactics

Who is going to do what………………………….Activities

How do we ensure safety arrival?………………………Control Measures

This is all about the Strategic planning process. If an organization is clear about its mission and vision; than it can achieve its common goals by using its available resources and by using different strategy. Strategy planning is most essential in any type of firm.

Ac1.1 Explain the importance of external factors affecting on Hyatt Regency:

External factors are also called the macro factors. Market environment consist of all factors that in one way or another that affects or getting affected by an organization decision. The macro factors which may affects indirectly in an organization are-







These all the external factors that may affects in the internal environment of an organization. The interior factors like 5 M’s are






The political disorder of any country may affects in the decision making process in an organization. Similarly the unstable government may be the other factor which may affects to provide the regular service to the customers. Similarly Social factors may include life styles of the people, age, sex, income of the people, etc. The legal factors, by which legislation in society may affect the business, e.g.: changes in the working hour of the manpower, etc. The term economic affect the business in the term of Taxation of the government, demand and supply policy, interest rates, exchange rates, etc.

Besides these, the technological issues may affect in the business like how rapid pace of change in production processes and production of the business. The ethical issues may include the moral lesson like what is right and what is wrong for an organization to do. It may be culture of the society, norms and values, etc.

Thus, we can say that the external factors will indirectly affects in the business. In order to get success in the competitive market, an organization has to think ahead and act according to the situation of the environment.

AC1.2 Analyses the needs and expectations of stakeholders of Hyatt Regency:

“Stakeholders are an integral part of a project. They are the end-users or clients, the people from whom requirements will be drawn, the people who will influence the design and, ultimately, the people who will reap the benefits of your completed project.” (Nick Jenkins 2011)

Thus, Stakeholders can be a person, customers, group of people who have direct or indirect shares in the organization. In the Hyatt Regency, there are different types of stakeholders in the Hyatt regency, who play an important role in up grating profits for an organization. Some of the stakeholder’s are-


Board of Directors






Needs and Expectations


-good customer service

– Quality product at reasonable price

-Good, warm and peace, environment

Board of Directors(BOD)

-high profit margin


-expansion of Business

-High Turnover



-Security deposit

-Community Support(CSR)

-Creating job opportunities.


-Secured job

-High pay rate


-Annual pay leave

-Intensive and benefits



-Bonus shares

-right shares

-Loan at low interest



-Regular supplies

-Money on time.

Thus different stakeholders have the different expectations and different needs, they want from an organization and thus, they are investing their money within it. So, an organization has to look after each member’s expectation and make them unified in order to achieve target goals.

Ac1.3 Analyses the major changes taking place in the external environment that will affect strategy of Hyatt Regency:

PESTLE Analysis: This is the macro environment of the company which deals with all the environments which affects the company policy. PESTLE stand for Political, Economic, Socio-Cultural, Technological, Legal and Environmental. These all are same of PEST Analysis or PESTLE Analysis. (Andrew Whalley, 2010)

Political/ Legal:

Environmental regulation and protection


international trade Regulation

These all are about political and legal issues. Government may change policies, making rules and regulation may directly affect the business. So the Hyatt Regency (a food service industry) should develop its marketing strategy according to government policy.


Economy growth (overall; by industry sector)

monetary policy (interest rates)

government spending (overall level, Specific spending priorities)

These all about the economic issues, the increasing in the purchasing capacity of the people, Government policy towards unemployment benefits and government taxation will directly affects in the Hyatt Regency strategy.


Income Distribution (change in distribution of disposable income)

Demographics (age structure of the population; gender; family size and composition; changing nature of the occupations)

Labor / Social mobility

These points are all about the Social aspect. The changing in the life style of the people will directly affect on our business, similarly the education will play a major role in the marketing strategic policy.


Government spending on research.

Government and industry focus on technological effort

New discoveries and development

These factors are all about the changing in technology. In this modern age, technology are changing rapidly, like internet, new discoveries, research, etc will directly affects on the marketing strategy of the Hyatt Hotel. So the hotel has to develop its plan by the above mentioned factors.

Benefits of PESTLE in an organization:

– By knowing the current environment and the external factors, it will better placed an organization for the future than the competitors.

– It is the useful tools for understanding the risks associated with the market.

– It will helps an organization to understand ‘Meso’-economic and the macro- economic environments in which they operate. (The Meso-economic environment is the one in which we operate and have limited influence or impact, the macro-environment includes all factors that influence an organisation but are out of its direct control)

Ac2.1 Use appropriate tools to analyses the effects of current business plans of Hyatt Regency:

There are different marketing tools which can be used in an organization in order to lead the business in the path of success and prosperity. Some of the marketing tools are as follow:

. BCG Matrix: This is called Boston Consulting Group Analysis. This is about chat which has been created by Bruce Henderson for the Boston Consulting Group in 1968. The main purpose of this BCG-matrix is to help the organization business units or product lines. It will help an organization to use the available resources and its brand marketing by using strategic management and the portfolio analysis.

BCG-Matrix is very important for the manager and it’s a great tool because for studying it has two aspects. One is for relative marketing share and another one is marketing growth. Relative marketing is about the competitor around business.

BCG Growth Share Matrix

Relative Position (market share)

Fig1.: The BCG Matrix

Strategic marketing, page 58

BCG Matrix is divided into four areas. They are:

Stars: Stars are high growth of businesses and the profitability is very high in compare to competitors. More often they need the very high investment in order to sustain. Frequently their business will be slow down and they have to maintain the market.

Cash cows: Cash cows are the low growth business with the relative high market share. This is the successful period and maintain continue profit with less investment. So they continue gives strong cash flow to became star in the business.

Question Marks: This is about the low market shares which operate in high market shares. They will have potentiality but in order to sustain they may invest in the business in order to struggle with competitors. The managers will have ideas about which one area should focus and which area should shrink. This is about question marks what to do and what to think.

Dogs: The dogs refer in business which has low relative shares in uninterestingly.

In this period the growth of market will be low. This period may generate enough cash flow to break-even but it is rare.

Effects of this model in the organization:

There are different stages in the business and the manager should evaluate their business in order to move a straight away with range of investment. The matrix ranks is about market shares, about the industry growth and its profitability. In the dogs’ period, may be business flowing continuously and may not require cash investment. The second things is that it’s all about business growth and the estimate or guesswork for the future. In the period of question mark, if the leader is smart and enthusiastic, he may invest lots of cash in order to maintain continuous profit. He should have an idea about time and situation and ability the capacity to grab it. Thus it is all about present situation of the organization and estimate for the future, how to go, where to go and what to achieve.

B. Product life cycle: It has been assumption that every product has its life period, it will introduce in the market, it grows, and at the last point it may die. There are four stages on it. They are-

1. Market introduction stage

2. Growth stage

3. Maturity stage

4. Saturation and decline stage.

1. Market Introduction stage: This is the first stage of product life cycle. In this stage an organization has to spend lots of money on advertisement, demand has to be created, no profit margin , no competition at all, and in facts no sales volume.

Growth Stage: This is the second stage of product life cycle. Here, profit will begins to rise, customers will aware about product, sales volume will increase, will increase competitions, etc. Cost and expenses will reduced and start to have more profits.

Maturity stage: This is the third stage of product life cycle, here, in this stage, cost of an organization will minimum because of huge production, sales volume will reach on the peaks, brand differentiation and features diversification, and the industrial profits go down.

Saturation and decline stage: This is the last stage of the product life cycle. Here, in this stage, sales volume decline, prices, profits diminish; profit will be more challenges on production volume, etc.


Fig: Product life cycle

The effects of product life cycle use in the Hyatt Regency:

An organization can introduced new products in the market with fix separate budget.

It will help an organization to lead their product globally and in competitive market.

It will give general ideas about skills and resources required to launch new product in the market.

Company can focus on the different stages for profit margin.

Thus the use of marketing tools use by an organization will help them to come ahead in this competitive world with right products on the right place on the right time.

2.2 review the position of an organization in its current market.

In order to find an organization position, a company can focus on the different criteria, which are as follow:

Existing market shares: An organization should find out how much shares they have and how much percentage covered the market.

The current product and services offer: The product which is supplied in the market, are up to customer target and these meet the customer expectation or not.

Their competitive strength: The Company needs to find their strength and their possible criteria in the market.

Their current size and location of the market: A company needs to understand the market size and their product consume customers, they can calculate to find out their position in the market.

Their current planning strategy: In order to cover some marketing shares, planning plays an important role and their strategies for the future.

Thus to find out company shares and their spreading products in the market, an organization can do more homework on its own for more quality product, applying reasonable pricing strategy (like different skim), etc. By doing so, a company will boost up with new and new ideas and cover more market shares.

2.3 evaluate the competitive strengths and weaknesses of an organization’s current business strategies.

In any organization, there are some strength and weaknesses on its own. The organization has to find out its strength and its weaknesses on its own. When finding out weaknesses and strength, they can convert the strength in to opportunities and can alert from the potential threats. Some of the strength are as follow:


Loyal customers: Customers are Loyal on the brand of the company. Being international chain hotel, it has its own customers who always loyal and believe on the brands.

High quality Products: Hyatt regency produce the high quality products by which guest are satisfy form it.

High Skilled workforce: In the Hyatt regency there are lots of skilled members by which company is getting more popular among others.

Locations: Hyatt Regency is opened in the heart of centre city Kathmandu, Nepal which is the strong points on its own.


Insufficient Resources: There are some less resources like Refrigerator, chilling freezer, big utensils for the party, etc.

Outdated Technologies: The machines and electronics item use in Hyatt regency are old and not working properly.

Lack of Planning: In the kitchen department, there is improper planning during party time and the busy time. Everyone are getting puzzle because of not clarity of job among them.

Thus, if the company can rectify its weakness on its own, this company will lead successfully in the number one position in this competitive market.

Ac 3.1 Use modeling tools to develop strategic options for Hyatt Regency:

Strategic options are creative alternative action-oriented responses to the external situation that an organization (or group of organizations) faces. Strategic options take advantage of facts and actors, trends, opportunities and threat of the outside world. Strategic options can be identified after an institutional assessment, keeping in mind the aspirations (basic question) of an organization. The tool ‘Strategic options’ helps to identify and make a preliminary viewing of substitute strategic options or perspectives.

There are different types of strategic options use in an organization. such options are- Ansoff strategies, vertical, backwards and forwards integration, horizontal integration, differentiation, cost leadership, Mintzberg’s strategies emergent, leadership and differentiation, strategic alliance, merger, acquisition, competitive strategies, value-based strategy, contingency strategy, etc. Some of them are describe below:

Mintzberg’s strategies: There are five definitions of strategies are-






Plan: In this strategy, the actions are made in advance to which is to apply and this actions are developed consciously and purposefully.

Ploy: As plan, a strategy can be a ploy too; really just a specific man oeuvre intended to take in a challenger or competitor.

Pattern: A pattern in a stream of actions. Strategy is regularity in behavior, whether or not intended. The definitions of strategy as plan and pattern can be quite independent of one another: plans may go unrealized, while patterns may appear without preconception.

Position: Position means of locating an organization in an “environment”. By this definition strategy becomes the mediating force, or “match”, between organization and environment, that is, between the internal and the external context.

Perspective: Perspective shared by members of an organization, through their intentions and / or by their actions. In effect, when we talk of strategy in this context, we are entering the realm of the communal mind – persons united by common thinking and / or actions.

B. Cost Leadership: This is concept developed by Michael Porter which is used in business strategy. The meaning of cost leadership is to operate a lowest cost of operation in an organization. The cost leadership strategy is depending upon organization efficiency, size, scale, and cumulative experiences. The main function of the cost leadership strategy is to find out the scale of production its scope and in other economies, producing highly standardized product and using of new technology. Cost leader companies do compete on price and are very effective at such a form of competition, having a low cost structure and management.

Ac 3.2: Create options to form the basis of future organizational strategy (p9):

Among all the strategic options I would like to recommend Vertical Integration in the Hyatt Regency.

Vertical Integration:

The word vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need. It is contrasted with horizontal integration. The concept and use of vertical integration is introduced by Andrew Carnegie. This led other business people to use the system to promote better financial growth and efficiency in their businesses.

Vertical integration is the point to which a firm owns its downstream suppliers and its upstream buyers. Contrary to horizontal integration, which is a consolidation of many firms that handle the same part of the production process, vertical integration is typified by one firm engaged in different parts of production (e.g. growing raw materials manufacturing, transporting, marketing, and/or retailing).

The Benefits of using vertical integration by Hyatt Regency:

Hyatt Regency is the chain international service industry. There are many hotels under the same management throughout the world, i.e. the same management policy. It has its own brand name products use in every hotels. For example, a company is using its own soaps, shampoos, towels, carpets, etc. Whenever we go, we will find out same quality and same brand name products, thus by being chain hotel, it has same system of servicing guest in each hotel. The same suppliers and manufacturer are engaged in producing guest supplementary product.

Thus the vertical integration, a strategic option is the best in this scenario.

Ac3.3 For your chosen organization purpose a suitable structure that would ensure participation of all stakeholders. (P10)

A person, group, organization, or systems that affect or can be affected by an organization’s actions are the stakeholders. The stakeholders may be directly or indirectly may involve in the organization decision process. The following chat would be suitable structure for the participation of all the stakeholders in the Hyatt Regency:



Way of communication



Research on the needs and expectation of the customers, involving customer service department.

Flip card, survey



Invent new products, Technicians, recruitment on research.

Meetings with managers, survey and feedback, presentation, spot training, job trainings

1 month


awareness about new products

Internal meetings,

1 month


BOD(board of director)

Launching new product which has to be environmentally friendly, not affecting by government policies.

Financial structure for the purposed plan, giving executive decision,

Invitation on seminars, presentation

Newspapers, meetings

15 days

Up to 1 month

Thus different stakeholders can participate in the organization decision process and launching of the new products according to their label.

AC4.1: Develop criteria for reviewing potential options for a strategy plan (P11)

There are different strategy plan for reviewing potential options are: attractiveness to stakeholders, balanced score card approach, stakeholder participation, feasibility studies, etc.

Balanced scorecard approach:

“The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals”. (2011 Balanced Scorecard Institute )


Adapted from Robert S. Kaplan and David P. Norton, “Using the Balanced Scorecard as a Strategic Management System,” Harvard Business Review (January-February 1996): 76.

The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. The balanced score card have four perspective in order to develop metrics, collect data and analysis it. These four perspectives are as follow:

The learning and growth perspectives: This is the growth phase of the organization. This includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. Here, employee skills are the most important factors than other else.

The business process perspective: These perspectives indicate internal business processes. Metrics based on this point of view allow the managers to know how well their business is running, and whether its products and services conform to customer requirements.

The customer perspective: These perspectives indicate how important customers are. Customers’ needs and expectations are the most important factors in this area. If the customers are not satisfy, they will choose the other options and our business will be on the decline stage. Thus we have to meet their needs and satisfy them.

The financial perspective: Timely and accurate funding data will always be a priority, and managers will do whatever necessary to provide it. It is more over related to financial status of the company.

Thus, balanced scorecard approach is the best approach to find out the plan and progress report of an organization.

Ac4.2 Construct an agreed strategy plan that include resource implication:

In order to launch the new product from the Hyatt Regency, we have to analysis, assessing and addressing issue. To analysis the current situation, SOSTAC is the best methods to evaluate.

S stands for Situation Analysis – which means where are we now?

O stands for Objectives which means where do we want to go?

S stands for Strategy which summaries how we are going to get there.

T stands for Tactics which are the details of strategy.

A is for Action or implementation – putting the plan to work.

C is for Control which means measurement, monitoring, reviewing, updating and modifying.

Situation analysis

In the situation analysis, we are ………in this position and we want to reach…….. in this position.


Increased no of customer by ……%, brand expansion


Launch new product within ….. Months.


Break down the strategy in to action, investment decision, new market shares, differentiation


Company tactics into action, planning about finishing ….within 1 month …will finish with in 2 month, survey on the effects, feedback…..cost, location, etc

Control Measures

Control measures through monitoring, new technology

Ac4.3: Compare core organizational values (ethical, cultural, environmental, social, and business) with the current business objectives of an organization. (P13)

A business objective is a detailed picture of a step you plan to take in order to achieve a stated aim. Objectives should be SMART in order for the business to know what progress it has made towards achieving the objective:

Specific – clear and easy to understand.

Measurable – i.e. able to be quantified.

Achievable – possible to be attained.

Realiable- Durable and

T stand for time bound.

In order to get the objectives of the company, the organization should focus on ethical, cultural, environmental social and business factors.

Ethical: In order to operate the business the company not only should look forward for the profit but should also look for norms and values of the society; i.e. either the product of the company accepts by the society either it match with the society standard or not, right to life, right freedom, and right to privacy, such things are lies under ethics.

Culture: Culture includes life style of the people, demand, age group, etc. The product what we launched in the market should focus on the people lifestyle and the demand of the people.

Environmental: The Company should bring such a product which should be environmentally friendly. The product should not harm the environment from inside the organization and outside the organization.

Social: The product should be community based like preservation of the wildlife, ecological friendly. In society there are various types of community and the product should focus on the societies norms and values

Business: Business makes things happen and affect every part of our society. Whatever you want to do, understanding business will help you achieve it.

Thus the Hyatt regency if launched a product in the market, the above mentioned points has to consider in the mind for the better product and public better life.

Ac5.1 Develop appropriate vision and mission statements the organization. (P14)


A mission report is the head and the heart of an organization and serves as the lens through which organizational programs and strategies are viewed. In this case a mission statement should be closer to the social need rather than the visionary social impact. A mission statement evolves as the social need evolves while also remaining anchored to the vision. In this context, a facilitator also has a role for helping an organization understand its mission as well as its vision.

The following illustration creates the linear process:

Social Need ==> Mission ==> Programs/Strategies ==> Vision of Social Impact.


Vision creates that force of growing expectation about the future, where change is embraced as a step closer to that very compelling picture of what’s coming next. The excitement about the future trumps any worry about the unsure change is recognized as the catalytic converter it is. Vision is being able to see where you’re going, to see what’s up the road ahead, in both literal and symbolic senses.

The link between Mission and the vision:

Mission and the vision are the statements from the organization that answer questions about which we are, what we value, and where we are going.

For mission, managing with greatness and untamed strength, improving everything daily.

For vision, leading with inspiration and courage, obsessed with future possibility, in a love affair with change.

Vision is our desired picture (realistic though) of the future. Mission is what you want to achieve by our actions, so that the desired future would be reached.

The vision is bigger picture and future oriented while the mission is more immediately focused on the present.

Thus, the vision that defines the end game and the mission is the road map that will take. It is much more important that your vision and mission be understood by company employees. Customer do not want to know about what is written on the paper but they care immensely about whether or not a company’s vision and mission are reflected in a fulfilled brand promise. So these both are interlinked and interrelated to each other.

AC5.2 Produce agreed future management objectives for an organization:

“An objective is a sub goal. It identifies a short-term, measurable step within a designated period of time that is moving toward achieving a long-term goal.”(SIL International 1999).

Objectives of the company should be SMART. Where

SMART stand for

SMART Objectives

SMART Meaning


Specific – Objectives should sp


Cite This Work

To export a reference to this article please select a referencing stye below:

Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.

Related Services

View all

DMCA / Removal Request

If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: