Strategic Issues Facing Killashee Hotel and Possible Solutions

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Introduction

In this fierce competition, companies are implementing cutting-edge strategies to compete in the market. The business plan describes advanced techniques and arrangements that boost the success of the organisation. Killashee Hotel is the company under consideration in this study to examine the strategic management issues (Barros, 2021). The hospitality industry is human-oriented, and the general performance of the trade relies entirely on the interaction between the customers and the workers. Employees at Killashee are taught to promote the tradition of serving customers (Pogodina, Muzhzhavleva and Udaltsova, 2020). This studys fundamental purpose is to discuss the aspects of the strategic issues faced by Killashee and propose potential solutions.

Company Overview

The Killashee Hotel is located in Naas, in a remote suburb. Local icons, such as Russborough House and Kildare Shopping Village, and tourists seeking to shop, will want to visit Whitewater Shopping Centre in County Kildare (Killashee Hotel, 2021). There are 2 bars, a full-service salon, and an indoor swimming pool at this smoke-free hotel. A free complete meal, unpaid wireless internet service in public locations, and unrestrained self-parking are also available (Lai and Wong, 2020). The TVs come with satellite channels, and visitors can even find espresso machines and hairdryers (Killashee Hotel, 2021). Killashees President and CEO contend that staff treats customers with zeal and affection, even beyond the institutions physical facilities.

Evaluation and Review of Concerns

External Environment-Pestel

The PESTEL model is a methodology that examines the external market climate that has a significant effect on the companys results. This analytical system lets the company reach new markets through the development or introduction of new goods.

*Figure 1: PESTEL factors (Jhaiyanuntana and Nomnian, 2020).*

The facets of the macro-environment examined by PESTEL are explored in conjunction with the Killashee Hotel in the following section:

Political Factors: The countrys political climate has a significant effect on the organizational dynamics of the sector. The level of funding for new industries, the easing of international investment, and other regulatory issues in Ireland have an important role (Matovic, 2020). Irelands leadership ranking in the 2020 Economic Freedom Index was the sixth highest globally (Matovic, 2020). Consequently, the state offers the Killashee Hotel a secure and progressive atmosphere for the growth of the company (Killashee Hotel, 2021).
Economic Concerns: The nationwide financial condition influences the organizations growth. The development of Killashee Hotel will keep escalating economic development in Ireland (Webster, 2019). For example, in any world championship, Killashee Hotel is fully booked and makes a good profit. The higher the net income of Irish citizens, the greater the disposable revenue and the better quality of life (Bronskaia, 2018).
Social Factors: A wide range of social standards has an impact on the business of Killashee in Ireland. Killashee is a well-known hospitality brand, and visitors worldwide come to Ireland for stress relief and corporate reasons (Pierscieniak and Grzebyk, 2020). The changing patterns of consumer behaviour, demographic features, and regional customs have a tremendous impact on Killashees business in the state.
Technological Issues: Ireland is a technologically developed country that encourages scientific competence. The Killashee Hotel integrates innovative types of technology into its structure. The company also implemented an online reservation method, feedback process, and facilities management in its branches.
Environmental Matters: Country, state, and federal government agencies in Ireland collectively enact and track environmental conservation initiatives. Killashee Hotel must comply with environmental requirements to ensure that its systems run smoothly throughout the country (Jhaiyanuntana and Nomnian, 2020).
Legal Issues: The Irish government has imposed a vast amount of company registrations and prohibitions. Goods and utility levy, Tax file Number, Ireland Company number are some of the countrys limitations (Bronskaia, 2018). The Irish Government has also imposed visa limits. This restriction negatively impacted Killashee Hotel service as visitors came from all over the planet.

Porters Five Forces-Industrial Environment

Porters Five Forces Precursor is a technique that analyses the market situation within the same sector. This approach aims to evaluate the attributes within the business that affect the efficiency ratio of the company (Osterrieder, Budde and Friedli, 2020).

*Figure 3: Porters Forces (Osterrieder, Budde and Friedli, 2020).*

Competition with the New Entrants: The entry barriers into the hospitality sector are low, which does not help the Killashee Hotel Company (Malmström, 2020). A huge range of hotels and restaurants are opening up in tourism locations in Ireland and around the country, making this brand an extreme competition.
Threat from the Existing Rivals: Killashee Hotel belongs to the first tier of resorts. The amount of rivalry in this kind of hospitality sector is strong. However, the company has diversified its profits to various areas of the sector and is maximizing its business.
Negotiating Power of Vendors: Killashee Hotel has launched a new initiative called the Supplier Diversity Program, which enables the company to buy from various suppliers, granting them individuality and pricing strategy (Lata, 2020). In the case of Killashee Hotel, the vendors negotiating power is flawed, as the organization buys its supplies from a wide range of vendors.
Bargaining Power of Buyers: Killashee Hotel is under immense strain owing to customer-end negotiations. Clients have a wide variety of hotels to pick from across a luxury range of resorts. Consumers, thus, possess substantial negotiating leverage in this regard.
Threat from Substitute Services: Replacement services are insignificant in the hospitality field, especially in Ireland. Customers do not have the choice of substituting a location other than spending at a relatives place. This proportion appears to be small, thus, Killashee Hotel does not encounter any problems in this market.

SWOT Analysis

SWOT analysis is a critical review of the vital components of the company itself. It provides an incentive to use their core competencies and develop in the fields where the business needs a foothold (Gürel and Tat, 2017). This tool is focused on the evidence, details, and actual data relevant to the companys executives.

Strength

Heavy returns on expenditures
Wide investor network
Down Heavy returns on costs
Excellent reviews from the customers
Qualified and educated workers
Solid distributor network
Excellent business credibility
Outstanding track record

Weakness

The dilemma of the business meets with the inclusion of the work culture in various areas.
The organizational liquid asset level shows that Killashee Hotel financial planning is unsuccessful.
Hotel Killashee does not spend on research and innovation sufficiently.
The attrition rate in the Killashee Hotel is immense. Employees often quit work at Killashee Hotel, impacting their morale and service efficiency.

Opportunity

Since consumers are inclined towards modern amenities and a comfortable lifestyle, Killashee Hotel will open new arenas.
Investments in building consumer web portal also opened the companys latest distribution line.
Due to the low rate of inflation in the region, the economy would be more stable. This allows the corporation to credit the consumers at a cheaper fee.

Threat

The smooth running of the Killashee Hotel is endangered by increased raw material prices.
New laws imposed by government agencies are a continuing type of threat.

Table 1: SWOT analysis: Killashee.

Evaluation of the Appropriate Method for Strategic Implementation

The Killashee Hotels strategic strengths detail certain events that take advantage of all available tools and expertise to gain a tactical advantage over rivals and float in the business sector. To achieve a sustainable edge, Killashee Hotel has taken three strategic steps. The business balanced its entry modes around cultural lines (Darvishmotevali, Altinay and Köseoglu, 2020). Next, Killashee Hotel plans to extend its business to developing market. The corporation established market prospects in a rural area and grew appropriately (Jhaiyanuntana and Nomnian, 2020). Killashee Hotel is not just the leading company; it is the business leader in creativity (Punt et al., 2016). The company has reached this role due to the successful application of its service separation policy, HR strategies, and CSR operations.

Recommendation

It is suggested that the Killashee Hotel should concentrate its next step on developing digital expertise. Therefore, they should offer digital education to their staff. In addition, the organization does not make full use of the ability of social networking platforms.

Professionals who have experience in social network campaigns must be hired (Punt et al., 2016). Moreover, the provision of training and expertise to staff on modern tools would enable the business to motivate individuals to succeed in contemporary times. Net revenues will improve if sufficient material is written using digital resources. Social networking marketing is the newest type of advertising tool that reaches billions of people worldwide, and the information may be shared within seconds. The recruitment of social networking professionals would also help to brand the business in any country corner.

Conclusion

According to the above details and secondary research, it can be inferred that Killashee Hotel has succeeded in this aggressive market for ten years due to its striking tactics, customer-focused offerings, and sophisticated technology solutions. Killashee Hotel has given the greatest priority to Porters five forces strategys common principles, which shows that customer service is of the greatest priority to this company. The PESTEL study illustrated that Irelands political and economic circumstances are stable for the expansion of Killashee. Nevertheless, Killashee Hotel must conform to environmental requirements and legal requirements.

Threats from potential competitors and consumers purchasing power are essential for the Killaschee Hotel. However, the negotiating power of the vendors and the competition from providers are low. Killashee Hotel has an extensive network of suppliers, an outstanding record of success, and exemplary service efficiency as its advantages. It does not, however, blend with the diverse cultures of Ireland. The customer satisfaction record of the company is their central competent jurisdiction. Product distinction and digitization initiatives have rendered Killaschee the industry leader. The company is alienated from the majority of these two aspects. However, the hotel chain is increasing because of its successful capacity to accommodate clients.

References List

Barros, H.M. (2021) Neither at the cutting edge nor in a patent-friendly environment: appropriating the returns from innovation in a less developed economy, Research Policy, 50(1). Web.

Bronskaia, T.A. (2018) Marketing environment analysis as the key component of the companys competitiveness evaluation, Journal of the Belarusian State University. Economics, 1, pp. 93101.

Darvishmotevali, M., Altinay, L. and Köseoglu, M.A. (2020) The link between environmental uncertainty, organizational agility, and organizational creativity in the hotel industry, International Journal of Hospitality Management, 4(87). Web.

Gürel, E. and Tat, M. (2017) SWOT analysis: a theoretical review, Journal of International Social Research, 10(51), pp. 994-1006.

Jhaiyanuntana, A. and Nomnian, S. (2020) Intercultural communication challenges and strategies for the Thai undergraduate hotel interns, Journal of Language Teaching and Learning in Thailand, 7(59), pp. 204-235.

Killashee Hotel (2021). Web.

Lai, I.K.W. and Wong, J.W.C. (2020) Comparing crisis management practices in the hotel industry between initial and pandemic stages of COVID-19, International Journal of Contemporary Hospitality Management, 3(1), pp. 7-16.

Lata, L. N. (2020) Negotiating gatekeepers and positionality in building trust for accessing the urban poor in the Global South, Qualitative Research Journal, 1(4), pp. 19-26.

Malmström, S. (2020) Competition and competitive actions in the hotel industry in Finland, Jyvaskyla University School of Business and Economics, 1(1), pp. 89-97.

Matovic, I. M. (2020) PESTEL Analysis of external environment as a success factor of startup business, ConScienS, 1(4), pp. 96-100.

Osterrieder, P., Budde, L. and Friedli, T. (2020) The smart factory as a key construct of industry 4.0: a systematic literature review, International Journal of Production Economics, 221(9), 107476. Web.

Pierscieniak, A. and Grzebyk, M. (2020) Searching key macro-factors for cooperation in cross-border tourism: institutional matrix vs PEST concept, European Research Studies Journal, 23(3), pp. 249-259.

Pogodina, T.V., Muzhzhavleva, T.V. and Udaltsova, N.L. (2020) Strategic management of the competitiveness of industrial companies in an unstable economy, Entrepreneurship and Sustainability Issues, 7(3), pp. 1555-1564.

Punt, A.E., et al. (2016) Management strategy evaluation: best practices, Fish and Fisheries, 17(2), pp. 303-334.

Webster, B. (2019) Ireland national ploughing championships: industry, The Dairy Mail, 26(12), pp. 26-27.

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