Four Seasons Hotel Case Study Essay

A companys outline can be identified by figuring out what disdain approaches and actions the company undertakes. Thompson et al. (2009) outline the unwrap elements to timber for in the process of understanding a companys schema. quad Seasons differentiation based focused strategy is evident from the organisations strategic actions. Sharps stopping point to build on high-end high life and modern amenities so as to outdo the old proud hotels (p.3, para.3) is an example of efforts to pursue newfangled opportunities or defend against threats as rise up as actions to outcompete touch ons, which provides basis for differentiation.By focusing on medium-sized hotels of stupendous woodland with exceptional supporter levels (p.3, para.3), 4 Seasons defines the blood scale and differentiates itself from competitors through providing top-hole flavor and service. This is one of the moves to build a competitive advantage thus outcompeting rivals. The action to go public to rais e funds (p.3, para.4) is a chemical reaction to changing external circumstances, which supports the business growth and paves the way for quadruple Seasons to be the market leader. In auberge to parcel out diverse needs of the guests, quartet 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 en fittings quartette Seasons to serve well a market niche. An example of actions to merge or acquire rival companies is the ownership acquisition of Regent (p.4, para.2), and a strategic alliance is make via selling stake to Prince Alwaleed (p.4, para.4). By doing so, 4 Seasons improves its competitive position as the market leader. The shift of focus from ownership to counseling service (p.4, para.3) reflects four Seasons efforts to pursue new opportunities or defend against threats and its responses to changing external conditions. The business model of four Seasons is defined by this strategi c shift.The regional focusing structure (p.5, para.4), the finalisation process of budget plan (p.6, para.2), the human vision management (p.8, para.3), and the recruitment policy (p.8, para.5) are examples of how functional activities are managed in quad Seasons. By optimising functional activities, it en up to(p)s improved quality and node service provided. Four Seasons actions to alter geographical coverage lie in its outside(a) expansion program (p.7, para.3), which enables business growth by reaching new markets and new customers.The distinctiveness of properties that reflects the local culture (p.8, para.1) is another example of actions to diversify, which leads to differentiation. The actions to spike resources and capabilities that support quality and customer service improvement include the raising 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 b e summarised that a companys strategic actions are driven by the strategy it employs (Thompson et al., 2009).Strategic Fit with External EnvironmentStrategically applicable influences from the external environment can have a significant doctor 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 family line 11th attack and terrorism impact the hotel industry significantly, which lead to reduced profitability. As a response to the circumstances, Four Seasons dedicates to international expansion. Through wider geographic presence, it allows Four Seasons to make more profits in the areas that are less(prenominal) impacted thus enhancing the overall profitability. Amidst these challenges, Four Seasons manages to maintain its position as the market leader, which owe s to its globalisation 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 longer bankable to build and own hotels. As a result, Four Seasons shifts its focus from hotel ownership to hotel management services so that the financial risk is mainly borne by the hotel owners. Through management operations, Four Seasons is able to make the best use of its expertise and provide exceptional quality and service to the customers, thus gaining a competitive advantage over rivals. affableThe trend of increasing international activate both in business and leisure markets creates more opportunities for the hotel industry. In order to better serve the conk needs of its existing customers and attract new international travellers, Four Seasons continues to increase its geographic coverage by adding five to seven hotels per year to key destinations, thus c apitalising on the emerging opportunities. In response to the changing life-style of the global travellers who want personalised service, Four Seasons constantly innovates new slipway to make business travel more efficient and leisure travel more enjoyable. By doing so, the differentiation strategy through choice customer service is enhanced.TechnicalIn support of the rapid development of selective study technology, Four Seasons enhances its management services via operational a central reservations system, recommending information technology systems and developing 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 grueling to sell the ownership and shift to management services, which results in adding losses to Four Seasons accounting. It reinforces Four Seasons decision to concentrate on management operations. In order to reduce the impac t of these properties, Four Seasons continues to seek ways to improve the operating profitability.EnvironmentalTo follow the major trend of being environmental friendly, Four Seasons initiates recycling programs for glass, paper and other biodegradable garbage, in support of its uncompromised customer service. Such approaches help Four Seasons maintain its leadership position in luxury hotels.Strategic Fit with Internal EnvironmentA citywide 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 properties so that the customers who use the hotels can enjoy the same q uality in resorts and foyer clubs. By retaining the customer base and competing in different segments, Four Seasons is able to maintain its position as market leader.One of the strengths of Four Seasons is the showy 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 world-class leisure destinations. It allows Four Seasons to attract more authorisation 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 high staff morale and high employee satisfaction, Four Seasons custome rs can sojourn the best possible 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 desired standards while carrying out innovative solutions to solve customers concerns. With these extremely trained and professional staffs, Four Seasons stresses ways to differentiate itself from rivals through superior customer service.The expertise in hotel management is another competitive potential of Four Seasons. In order to make the best use of its expertise, Four Seasons concentrates on hotel management operations. To improve the operating profitability, Four Seasons engages in all aspect of the hotel operations on behalf of the owners, even before the hotel is built.