Case Study on Planning Hid Hotel

Department of Agribusiness Management and Entrepreneurship[pic 1][pic 2]

College of Economics and Management

University of the Philippines Los Baños

College, Laguna

Case Study on Planning

H.I.D

Submitted to:

Prof. Dia Noelle F. Velasco

In partial fulfillment of the requirements for

MGT 201

GROUP # 4

Alfiler, Janine

Divina, Felen II

Mojar, Alyssa Kaye

Rivadeneira, Rose Ann

.

September 23, 2016

Mojar,  

I.                 Point of View

The point of view of Keith Houck as the company’s consultant will be used for this case, since he will be the one to analyze the situation and render the appropriate plans.

II.               Synopsis

        H.I.D. is a hotel company which owns 21 properties. Its mission statement, “H.I.D. strives to exceed the expectations of our guests by providing excellent value in well-run hotels located off the beaten track. In this way, we will meet our profit, quality, and growth goals,” provides an idea on the location strategy of the company, which is to set up their establishments in routes not commonly travelled resulting to less competition.

Bill Collins, incumbent president of the company is looking to expand the business to bigger states. However, his managers (namely human resources director Karen Setz, marketing head Tony Briggs, hotel operations chief Dave King, and accountant Art Johnson) wish that the president would reconsider, given that they are currently understaffed and that their income are depending on medium-priced hotels in smaller towns. To aide with the strategic planning of the management team of the company and to align the goals of top management, Bill Collins hired consultant Keith Houck. Now, Keith must assist the management team in modifying their strategic plans using his expertise, taking into consideration the company’s mission statement, its current properties, and more importantly, the new goal of increasing profit.

III.              Problem Statement

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The problem of the case is rooted with the goal of H.I.D. president, Bill Collins to significantly increase the company’s profit. Seeing no reason to disagree with this goal, the top management was asked to think of how they want to see the improvements in the next 10 years. Comparing the goals of President Bill with that of the top management (Human Resources Director Karen Setz, Marketing Head Tony Briggs, Hotel Operations Chief Dave King, and Accountant Art Johnson), the difference is very much significant.

President Bill wants a significant, dramatic change in the course of the company. Meanwhile, the four managers aim to increase the profit with great consideration of their current assets and resources. This is where the problem of hired Consultant Keith Houck arises. He needs to guide H.I.D. top management to a path where all their objectives and goals will be aligned and consistent, without taking their eye off their main goal of increasing profit.

He must therefore find the right method to advice the top management on how they will modify their current strategic plan (and mission statement) with respect to their goal of increasing company’s profit.

Problem Statement: How will Keith Houck guide H.I.D. top management in modifying their current strategic plans?

IV.              Analysis of Relevant Case Facts^[a][b]

• Mr. Collins hired a consultant,  Keith Houck to help the hotel company’s management team with their strategic planning.
• Keith knows that even if the company was profitable, President Bill wasn’t satisfied.
• H.I.D. has a 10-year-old mission that states “H.I.D. striving to exceed the expectations of our guests by providing excellent value in well-run hotels located off the beaten track. In this way, we will meet our profit, quality, and growth goals.”
• H.I.D. currently owns 21 properties: the original 10 Holiday Inns and 2 Quality Inns in Georgia, 8 hotels in Canada, and a property in the Caribbean.
• President Collins advocated a goal of adding 27 properties in five years and a long-term goal of 50 hotels in 10 years.
• The managers expressed that the company, with its current staffing and the income they generate, would not be able to achieve and maintain the goal that the President aspires.
• President Collins proposed an expansion of the business to even bigger towns than Jacksonville and Atlanta, like California and New Jersey.

V.              Formulation and Evaluation of Alternative Solutions to the Identified Problem

Alternative 1. Classic 4-Step Approach to Strategic Planning

One option of Keith Houck is to to introduce the Classic 4-Step Approach to Strategic Planning and guide H.I.D. top management in coming up with a strategic plan using this approach.

The Classic 4-Step Approach was developed during the 1980s by a group of accountants carrying the name Price Waterhouse. The structured planning approach was devised as a strategic planning tool as well as a change in management planning tool.

        The first of the four steps in this approach is the “Where are we now?” or the situation analysis step. On this step, the current position of the H.I.D. will be determined. This should be an honest assessment of the company’s position with respect to the industry it is currently playing at. A good SWOT analysis may be performed to finish this step. The SWOT analysis will list the strengths and weaknesses of the company, as well as the the threats and opportunities in the environment. Through this, H.I.D. will be able to determine if it will be able to grab the opportunities using its weaknesses, or if the threats can break the company apart.