Strategic management hotels

Strategic Management
Case Study question
Thanos Hotels is a privately owned company with a reputation for operating the best hotels in
Cyprus, including the most successful luxury resort in the Mediterranean. The company was
founded 40 years ago by the late Alecos Michaelides, who built the group’s first hotel in
Famagusta. Thanos Hotels has proven that the exceptional quality of its properties is the main
driver of its operations. By offering an outstanding service experience and creating long lasting
memories for our guests, we achieve a high repeat guest ratio. Thanos Hotels has extensive
experience in repositioning existing properties quickly and cost- effectively and also at managing
new build projects. The Company has now decided to expand its operations beyond its own hotels,
looking for opportunities that fit with its philosophy.
Thanos Hotels offers hotel owners and developers the chance to position their hotel in the luxury
segment without sacrificing its individual identity. We have a proven ability and expertise to
reposition existing properties in a timely and cost-effective manner. As a team, we are nevertheless
creative and design-led. Ours is a young and dynamic management structure with a hands-on
approach that encourages fluid communication between head office and the hotel’s management.
We work on complete projects from concept to implementation – from design to development, to
operational policies and standards, to sales, marketing and financial returns. We never forget the
need for profit and profit growth – our focus on product quality as our main driver results in high
accommodation rates, evenue per room and always with respect to the environment.
A. Explain the importance of forming a PESTLE analysis for the organisations.
B. Based on the concept of Thanos Hotels above form a PESTLE analysis for the company taking
into consideration the latest developments with the coronavirus and the war in Ukraine.
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Answer
Part A
To get started, environmental analysis refers to the way in which strategists observe
environmental variables in order to spot potential opportunities for the company as well as
potential risks that may negatively impact the company. It includes gathering data, analyzing and
summarizing the information in order to seek out opportunities and risks.
As we moving forward, PESTEL analysis includes the detection of environmental effects
on the company as well as their relationship between them. Is a powerful tool which is utilized for
obtaining a macroscopic insight into the environment of an organization as well as to assess the
threats related to the market growth or downfall and hence, the place, capabilities and orientation
of a company. Also, it enables a business to gain an overview of the potential factors that may
affect a new firm or industry and can be used as a benchmark to support the strategic management
as well as the futuristic planning.
Moreover, the PESTEL analysis acronyms stand for the words Political, Economic, Social,
Technological, Environmental and Legal factors which all of them play a vital role for the progress
of the organization because is not only the internal ones that matters. For the political factors we
have the corruption and the government control or even the impact that it has over the economy
and industry. For the economic factors we have the wealth of a country, the employment and the
unemployment rate, the taxation as well as the interest, inflation and foreign exchange rates. In
addition, for the social factors, we have the wealth distribution, the media, the lifestyle and health
changes, the demographics, the religion and culture as well as the education and attitudes. For the
technological ones, we have the rate of transfer, the communication, the changes and the influences
on the lifestyle as well as the technological awareness and development. Last but not least, for the
environmental factors, we have the recycling, the weather, the laws for the environmental
protection and safety as well as the renewable energy sources and the global climate change.
Finally, for the legal ones, we have the employment and foreign trade laws, the consumer
protection and regulatory bodies as well as the justice perception and the legal system.
Furthermore, it’s important for an organization to form the PESTEL analysis as it permits
a systematic and strategic assessment of the perspectives, threats and possibilities of a company in
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a changed environment and it focuses on the firm’s needs in order to establish their external factors
that could probably affect their profitability and their decision-making. Also, it assists managers
to understand more clearly the challenges and risks they face. Some of its advantages that can
support more the reason why companies are using the PESTEL analysis is that it has a simple
context and it’s easy to implement as well as it’s easier to have a deeper and wider understanding
of company’s environment. Also, it inspires the company to adopt strategic and external mindset
as well as to enable them to identify a chance and seize on it. In addition, it allows a company to
predict potential threats as well as to reduce or even to eliminate their impact.
Concluding, as we can see from the abovementioned, for an organization who wants to
keep growing and go further, it’s essential to form a PESTEL analysis in order to rise their revenue
and even to avoid certain external situations that can be harmful for the organization.
Part B
Based on the abovementioned definition of Thanos Hotels, we are going to develop the
PESTEL analysis considering the Covid-19 situation as well as the war in Ukraine as it has
changed a lot of things in our lives especially in the economic and geographical area.
Firstly, for the Political factors Thanos Hotels they must have good knowledge of the
government policies about the Covid-19 situation and they must follow-up with the protective
measures and procedures that they have to do in case of a positive case or even to protect their
tourists. However, they can support Ukraine for the unfair war that was outbreak as they can have
some political benefits but, in this case, it could be a bit risky as they can lose tourists and local
people that they are supporting Russian or people who do not to take a side on this war.
Secondly, for the Economical factors, Thanos Hotels will experience also the inflation,
prices are rising constantly, so they have to put their prices above the equilibrium. It will probably
be supply chain shortage of products that they necessary need or in a better scenario to be late to
arrive, so they have to find alternative solutions. However, by rising the prices, some people might
not be able to booked a room in their hotels to stay or they are going to think about it twice. They
can lower their staff per shift in order to comply with the government measures against coronavirus
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outbreak. A lot of Russian people that was picking Thanos Hotels, now they will not be able to
reach Cyprus due to the penalties that they agree to put Russian.
Thirdly, for the Social factors, Thanks Hotels as well as Cyprus, have similar culture with
Russians people, so in case they support either Russian or Ukraine they might be losing people
from this. However, Ukraine people will think twice in any case as the Russians are already a big
part of the tourists in our country.
In addition, for the Technological factors, they can improve their QR code menus as well
as to order via tablets or inside the hotel in order for the order to reach the tourist on the specific
spot they will choose.
Moreover, for the Environmental factors, they must comply with EU environmental
guidelines, they can boost they green places with more places that are friendly for children, they
can plant more trees and even to promote the corporate social responsibility and sustainability.
Finally, for the Legal factors, they must meet the standards for good hygiene that set by the
Cypriot Food Authority.
4/4
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