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  • Subject Name : Management

Conceptual Framework in Strategic Management

Introduction to Sofitel and Intercontinental Hotel Analysis

The idea of a conceptual framework has achieved tremendous significance over the past few years. A conceptual framework is useful in developing a strategic plan, which in turn encourages people to understand the entire possibilities of adequate training (Kelley et al., 2016). Such a framework helps in strategic management for various factors such as hospitality, hotels, and many more. Numerous researchers have discussed the idea of Strategy management for a conceptual framework over the period. A strategy management for a conceptual framework is the essential principle of the present context that has succeeded in replacing typical management strategies such as accounting or training (Carter, 2013). Moreover, Mackay and Zundel (2016) studied the sense of the term strategy evolved in the military field and derive from the Greek term strategos, which means general. Its significance has changed over the period, being extended to other social practices and, specifically, marketing strategies. In contrast, Cattani, et al. (2017) stated that the knowledge of the competitive atmosphere and the observation of the impact of the contest in a market is one of the largest concerns for one‘s business strategists.

Moreover, Chandler (1962) recommends that strategic management is used to determine a long-term target, the aim of a business, and the selections of measures to follow. However, Farjoun (2002) describe the strategic management as the framework of the project goals, strategies, objectives, preferences, and measures to accomplish them. It has been discussed in such a way that people can identify which business the organization is or will be in.

The Sofitel hotel provides 609 bedrooms and suites with terraces with stunning views over the sunrise and sunset of Manila Bay (Demirciftci, & Kizilirmak, 2016). It has 312 elegant Malaysian bedrooms with stunning views over the city. Moreover, InterContinental Hotels Group (IHG) has been one of the best hotels in its sector (Deraman et al., 2017). It has far more bedrooms under its brand than any other chain of hotels like Sofitel. IHG has more than 650,000 bedrooms in more than 4,400 hotel chains all over 100 countries, with a total of more than 130 million guests staying at the hotel. It has 473 bedrooms in Malaysia, with a stunning balcony.

In this regard, the essay focuses on the concept of strategic management in Sofitel and InterContinental Hotel along with the challenges or threats to their business. To address the objective of the essay, the essay has covered the strategic position of Sofitel and InterContinental Hotel, their success, and challenges in the current scenario.

Thus, the thesis statement can be stated as, “Whether strategic management is better in Sofitel or InterContinental Hotel Group.”

Context

Strategic positioning represents an industry's decisions about the type of benefit it will establish and whether that benefit will be generated separately from competitors (Smyth, & Phillips, 2002). Sofitel Luxury Hotel is announcing its successful strategic plan to lead the company to the top of the global luxury hotel industry. The position of a hotel in a country is very significant in terms of accessibility. It is why Sofitel selects the most exceptional countries to be located in. In relation, Sofitel selects the areas that are highly accessible within Malaysia. They are planned in such a way that they encompass a point of convergence for variations like flexibility, comfort, uniqueness, cleanliness, and sparkle (Verboz, et al., 2013). Sofitel also makes a difference within the system for its clients through a service differentiation approach. In contrast, IHG's strategy is to be the preferred option for hotel guests and crews by designing the best management model based on broad areas and regions. They propose to unite many people by providing various brands.

Cheraghalizadeh & Tumer (2017) addressed a need to reflect both external as well as internal findings for business success. The external factors considered for success are:

  • The work environment involves external markets, business, and competitive factors with which the entity makes contact (Flavel & Williams, 1996). Environmental monitoring falls perfectly with the group's systematic strategy formulation.
  • Olsen, Tse, & West (1992) pointed out environmental scanning about the hospitality industry that allows groups to predict trends and undertake strategies that will allow their organizations to adapt to the external context.
  • The price proposal helps in encouraging a new appreciation of the target audience as in Sofitel.

The study of the external finding is inadequate to have a comparative benefit for an entity. The internal finding is an organisation, human, and physical resources. Hotels like Sofitel Chain charge a heavy cost for their services to target the exclusive market as compared with a different brand such as InterContinental Group.

IHG ensures commercial success by acquiring the strongest brands in the most profitable areas, and first-class ownership of property plan (Deraman et al., 2017). IHG establishes a range of strategic factors for success, like an expanded emphasis on luxury. Recently, IHG in Malaysia is generating enthusiasm across luxurious room strategies and eventually approved to acquire a 51% share in the group of Regent Hotels and Resorts. However, Sofitel in Malaysia offers its guests unlimited facilities in the health clubs, designed as per the preferences of its target audiences, a relaxing environment, and constant customer support. Recently, Sofitel promotes its social media platforms with a travel agent, Travel Spike, by offering increasing online customers with unique content and exclusive offers.

Employment security is a challenge for IHG in Malaysia due to bad management and also a concern from other rivals like Hyatt and Novotel. They are experiencing problems while approaching the Asian markets as they didn't comprehend the Asian market. However, Sofitel faces challenges like losing to online business, overemphasis on brands, and unbalanced global financial status.

Conclusion on Sofitel and Intercontinental Hotel Analysis

Effective strategies often enable a brand to identify the sector in which its unique strengths can achieve competitive benefits. The above study can encourage everyone to believe that the InterContinental Hotels Group in Malaysia is still on the rise due to its strategies for service management, room facilities, location, and pricing. Thus, the thesis statement can be restated as “the strategic management for InterContinental Hotels Group can be recommended more as compared to Sofitel.”

References for Sofitel and Intercontinental Hotel Analysis

Carter, C. (2013). The age of strategy: strategy, organizations and society. Business History, 55(7), 1047–1057. 10.1080/00076791.2013.838030

 Cattani, G., Porac, J. F., & Howard, T. (2017). Categories and competition. Strategic Management Journal, 38(1), 64–92. 10.1002/smj.2591

Cheraghalizadeh, R., & Tumer, M. (2017). The effect of applied resources on competitive advantage in hotels: Mediation and moderation analysis. Journal of Hospitality and Tourism Management, 31, 265–272. https://doi.org/10.1016/j.jhtm.2017.04.001

Demirciftci, T., & Kizilirmak, I. (2016). Strategic Branding in Hospitality: Case of Accor Hotels. Journal of Tourismology, 2, 1-15. 10.26650/jot.2016.2.1.0004.

Deraman, F., Ismail, N., Arifin, A. I. M., & Mostafa, M. I. A. (2017). Green practices in hotel industry: Factors influencing the implementation. Journal of Tourism, Hospitality & Culinary Arts, 9(2), 305-316.

Flavel, R., & Williams, J. (1996). Strategic Management: A practical approach, Prentice Hall Australia Pty Ltd., Sydney.

Kelley, T. R., & Knowles, J.G. (2016). A conceptual framework for integrated STEM education. International Journal of STEM Education, 3(1). https://doi.org/10.1186/s40594-016-0046-z

Mackay, D., & Zundel, M. (2016). Recovering the divide: a review of strategy and tactics in business and management. International Journal of Management Reviews, 19(2), 175–194. https://doi.org/10.1111/IJMR.12091

Olsen, M, Tse, E., and West, J. (1992). Strategic Management in Hospitality Industry, London.

Smyth, S. J., & Phillips, P. (2002). Product Differentiation Alternatives: Identity Preservation, Segregation, and Traceability. The Journal of Agrobiotechnology Management & Economics, 5(2), 30-42.

Verboz, S., Bucak, Dr. T., & Atay, Dr. L. (2013). Product differentiation in international accommodation establishments: the case of Accor hotels. International Journal of Education and Research, 1(7). https://www.thefreelibrary.com/Product+differentiation+in+international+accommodation...-a0345460483

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