Volume 4, Number 3, March 2023 e-ISSN: 2797-6068 and p-ISSN: 2777-0915
Ivan
Godang Wardiman, Syafrizal
Universitas Andalas,
Padang, Indonesia
Email:
[email protected],
[email protected]
KEYWORDS strategic architecture, IE Matrix, Hotel,
internal and external analysis, strategic management |
ABSTRACT The impact of this pandemic is most felt by the hotel
and tourism indus-try. Almost all hotels in
Indonesia have experienced a decline in revenue due to this pandemic. Hotel
is a type of necessity for everyone who travels or travels. Hotel is a
company managed by hotel management by providing services such as rooms,
food, drinks for people who travel and are able to pay a reasonable amount
according to the services provided without any special agreement in advance. The
purpose of this study is to develop alternative strategies and priority
strategies for ABC hotels, this study uses a mix method approach with
quantitative and qualitative approaches. The result obtained is that there
are 10 strategies formulated to be implemented in the next 5 years. This strategy
is divided into 3 stages, namely the competency strengthening stage, the
growth stage, and the performance improvement stage which is compiled in a
strategic architecture. The conclusion is that the current external
conditions are less favorable for ABC Hotels due to the COVID-19 pandemic. So it is necessary to design another strategy to face
conditions like now |
INTRODUCTION
The Covid-19 pandemic is the
first and foremost health crisis in the world. Many countries decided to close
schools, colleges, offices, shopping and other places.� A total of 13 countries including China,
Italy and Japan have closed schools across the country in a bid to stop the
spread of the flu-like virus.� It affects
nearly 290 million students, UNESCO said.�
Most of the students are from China, where the outbreak originated.
Across the country, including the special administrative regions of Hong Kong
and Macau, more than 233 million students are out of school due to the virus (Purwanto 2020)
The
impact of this pandemic is most felt by the hotel and tourism industry. Almost
all hotels in Indonesia have experienced a decline in revenue due to this
pandemic. Hotel is a type of necessity for everyone who travels or travels (Tarmoezi 2000). Hotel is a company managed by hotel
management by providing services such as rooms, food, drinks for people who
travel and are able to pay a reasonable amount according to the services
provided without any special agreement in advance (Sulastiyono
2011).
ABC
Hotel is one of the Accor chains in Jakarta that always refers to high and
maximum service quality, reliable team management and good commitment.� By prioritizing the facilities available with
meeting facilities or meeting rooms and the location of the hotel that is very
close to the Jakarta Design Center, for that only a 5-minute trip from the
business / commercial center, the hotel will be more able to attract visitors
from both business class� and travel
agents because it is close to� tourist
attractions that offer goods both local and international and also close to
Soekarno-Hatta airport.
This hotel is also affected by
this pandemic, therefore, the author wants to analyze the internal and external
conditions of the company and then wants to compile a strategic architecture
for the future of the company. According to Hamel and Prahalad (2000), this
concept talks about business development based on the internal strengths of the
organization (core competencies), and rebuilding the boundaries of the industry
that will be entered in the future (industry foresight).� Strategic architecture can be said to be an
update to the concept of strategizing, because it prioritizes the strategic
stretch aspect over strategic fit.� That
is, we are more concerned with building up internal forces to win the
competition than formulating strategies that are appropriate or expected to be
in line with market developments.�
According to Primadewi et al. (2022) hotel
architecture is a very strong factor in shaping tourists' perceptions and
expectations of a place.� Another study
from Kurnia and Anita (2022), strategizes hotel
redesigns both names and layouts to lure consumers who are in the city center.
From the above background, the
objectives of this study include: (1) Analyzing the external and internal conditions
of ABC Hotel, (2) Formulating industry foresight of ABC Hotel. (3) Analyze the
challenges faced by Hotel ABC, (4) Develop the strategic architecture of Hotel
ABC.
RESEARCH METHOD
This study used data sourced from primary data and secondary data. Primary
data was obtained from in-depth interviews with hotel internals. The
interviewees were hotel managers, housekeeping executives, and hotel accounts.
The number of internal parties interviewed was 3 people. Then secondary data
were obtained from the hotel's annual report and literature study.
This research uses a mix method with quantitative and qualitative analysis.
Qualitative analysis by identifying internal and external factors to formulate
alternative strategies of ABC Hotel. The quantitative approach is used by
strategizing and being weighted and assessed.
Hotel ABC's vision is mutual success and is expressed in three inseparable
things namely: Providing the best service for customers, Being the best place
to work for employees. Provide a good "return on investment" for
shareholders.
Develop a quality company and employees to create long-term relationships
while being a partner for customers.
According to Wheelen
and Hunger (2010), the external environment consists of variables that are
outside the organization and do not specifically exist in the short-term
control of top management. The external environment consists of two parts,
namely the industrial environment and the macro environment.
According to Porter (1998), there
are five factors of business competition (Porter five forces) that can determine
the ability to compete. Porter five forces are the five competing forces that
can develop a competitive strategy by influencing or changing these forces in
order to provide a favorable situation for the company. The scope of the five
competing forces is the threat of new entrants, competition among existing
competitors, the bargaining power of suppliers, the bargaining power of buyers
and the threat of substitute products.
Wheelen et al. (2018) say that in conducting environmental scans, strategic managers
must first realize that there are many variables in the natural, social, and
task environment of the company. The natural environment includes physical
resources, wildlife, and climate that are an inherent part of the earth's
existence. These factors form an ecological system of life that includes
general forces that do not directly touch the short-term activity of the
organization, but that can influence its long-term decisions. According to Rachmarwi (2016) this analysis is carried out to determine
the macroenvironment or policies that occur in an industry. Here are some of
the external factors influencing the industry:
a.
Economic power that
includes the exchange of materials, money, energy, and information.
b.
A political-legal
force that allocates power and provides constraints and protects laws and
regulations.
c.
The power of
technology that produces a deterrent that can solve problems.
d.
Socio-cultural links
that govern the values, customs, and customs of the people.
At this stage will be analyzed
the external environmental factors of the ABC Hotel. The following analysis is
described in Table 1.
Table 1 Analysis of PEST and Porter's Five Forces
Fact |
Impact |
Likelihood |
Emergency |
Urgency |
Opportunities/threats |
Politics |
|
|
|
|
|
� Free visa access |
Increase the frequency of tourists entering Indonesia
and will indirectly affect the hotel occupancy rate |
Keep |
Low |
>3 years |
Chance |
Economics |
|
|
|
|
|
� Weakening people's purchasing power due to the COVID-19
pandemic. |
Reduced community activity came out so that the hotel
became deserted. |
Tall |
Tall |
<1 year |
Threat |
� Global economic crisis |
Hotels become deserted because people are more
concerned with meeting their daily needs |
Tall |
Tall |
<1 year |
Threat |
Social |
|
|
|
|
|
� Changes in the lifestyle of people who prefer budget
hotels |
It will be an opportunity if the price offered is still
a slight difference. It will be a threat if the price is far above other
budget hotels |
Tall |
Tall |
<1 year |
Chance/ threat |
� The number of MICE activities held at the hotel |
Receive additional income if you can book a lot |
Tall |
Tall |
<1 year |
Chance |
� Increasing public awareness of the importance of
hygiene and health protocols |
It is an opportunity if the hotel can anticipate this. So the threat if the hotel is indifferent to it. |
Tall |
Tall |
<1 year |
Chance/ threat |
Technology |
|
|
|
|
|
� Big Data, IOT, AI that are starting to be used by many
industries |
Make a significant impact in the long run |
Tall |
Low |
>3 years |
Chance |
Newcomers |
|
|
|
|
|
� The emergence of low-priced hotels |
Creating increasingly fierce competition |
Tall |
Keep |
1-3 years |
Threat |
Industry Competition |
|
|
|
|
|
� There is a tariff war between star-rated hotels |
Creating increasingly fierce competition |
Tall |
Keep |
1-3 years |
Threat |
Threat of Replacement Goods |
|
|
|
|
|
� Apartments that can be rented daily |
Reducing hotel market share |
Keep |
Keep |
1-3 years |
Threat |
The Power of Buyers |
|
|
|
|
|
� Staying guests are dominated by flight passengers |
Providing potential customers as it is close to the
airport |
Tall |
keep |
1-3 years |
Chance |
Supplier strength |
|
|
|
|
|
� ABC Hotel� has many suppliers ranging from
travel agents, laundry vendors etc. |
Gives the hotel the power to search for suitable and
profitable suppliers |
Keep |
Keep |
1-3 years |
Chance |
Source: Data Processed
�����������
This second phase, based on
research (Ngaliyan 2017), the author will analyze the
external environment of the ABC Hotel according to the conditions of the year.
For the external environment will be presented in Table 2 below.
Table 2 External Factor Evaluation (EFE) Matrix
No |
External Factors |
Weight |
Rating |
Weighted Score |
Chance |
||||
1 |
Potential to get business opportunities from airline
companies |
0.07 |
4.00 |
0.28 |
2 |
Big Data, IoT, and AI that are starting to be used by
industry |
0.05 |
3.00 |
0.15 |
3 |
Potential to get MICE business opportunities from the
Jakarta Convention Center activities. |
0.05 |
3.50 |
0.175 |
4 |
Increasing public awareness of the importance of
hygiene and health protocols |
0.10 |
3.10 |
0.31 |
5 |
ABC Hotel� has many suppliers ranging from
travel agents, laundry vendors etc. |
0.08 |
2.90 |
0.232 |
|
Threat |
|
|
|
1 |
There is a price tariff war conducted by star-rated
hotels |
0.10 |
2.80 |
0.28 |
2 |
Changes in people's trends in choosing economical
hotels |
0.15 |
2.20 |
0.33 |
3 |
The most competitors faced are four-star hotels. |
0.05 |
2.00 pm |
0.10 |
4 |
The proliferation of budget hotels that offer the same
facilities at lower prices |
0.15 |
2.10 |
0.315 |
5 |
The ongoing Covid 19 pandemic in Indonesia |
0.20 |
1.50 |
0.30 |
|
Total |
1.00 |
|
2.472 |
Source: Data Processed
����������� Table 4
shows that the score obtained by ABC Hotel� for its total is 2,472. The analysis
was carried out by including 10 strategic factors consisting of 5 opportunity
factors and 5 threat factors. The calculation results show that this hotel can
take advantage of opportunities and face existing threats, even though with the
current conditions of the Covid-19 Pandemic, it is enough to make all hotel
industries experience difficulties in achieving company targets. The weighted
results put ABC Hotels into the� average category.
According to Wheelen
and Hunger (2010), the internal environment consists of variables (structure,
culture, organizational resources) that exist within the organization but are
usually not in the short-term control of top management.
Internal conditions of the company,
often used as the basis for the formation of the company's strengths and
weaknesses. Further analysis of this condition will provide how much resources
the company has, which can provide sustained advantage, which is temporary
advantage and which is actually a disadvantage
The analysis tool to find out
these conditions is VRIO (Valuable, Rare, Imitate to Cost and Organized).
Barney (2012) mentions that VRIO can be used to see a comparative comparison of
the strengths and weaknesses of the company's internal conditions.
The next stage is to analyze VRIO
based on the resources owned by ABC Hotel. The results will be shown in Table
3.
Table 3 Analysis of VRIO Hotel ABC
Capabilities/competencies |
V |
R |
I |
O |
Result |
Three-star hotel with four-star facilities. |
� |
� |
- |
� |
Temporary competitive advantage |
Conveniently located near Soetta
airport and business area |
� |
� |
� |
� |
Sustainable competitive advantage |
International hotel chains in Indonesia |
� |
� |
� |
� |
Sustainable competitive advantage |
Good service and complete facilities |
� |
� |
- |
� |
Temporary competitive advantage |
Hotel member loyalty |
� |
� |
- |
� |
Temporary competitive advantage |
Source: Data Processed
Core competencies according to
Hamel and Prahalad (2000) are defined as a collection of skills and
technologies that allow a company to provide certain benefits to
customers.� According to Marneros et al. (2021) there are 6 aspects of core
competences, namely: leadership and critical thinking, information technology
and financial analysis, human relations � communication, interpersonal
communication � cultural diversity, and human resource management and
professional image � operational knowledge.
All core competencies are
capabilities but conversely, not all capabilities are core competencies. Only
capabilities that have certain criteria can be included as core competencies
1.
Valuable
Capabilities. Capabilities that enable companies to take advantage of opportunities
and minimize the threats faced.
2.
Rare Capabilities.
The capabilities possessed by very few competitors.
3.
Imperfectly Imitable
Capabilities. Capabilities that are not easy to develop by competitors.
4.
Non Substitutable Capabilities. Non-substitutionable capabilities.
The core competence of ABC� Hotels is based
on the results of VRIO's analysis, which is to offer three-star hotels with
facilities equivalent to four stars and is one of the international hotel
chains in Indonesia. This competence must be carried out and continue to be
well organized so that it remains a hallmark and an attractive experience for
consumers staying in Jakarta. The new competencies that are expected to emerge
in the future related to this technology development are hotels based on high
technology. These other competencies can be created and improved by making the
latest innovations in the hospitality industry.
����������� After
knowing the competence of the ABC Hotel from the� company's resources processed from
research data (Ngaliyan 2017), it will then be
entered into the IFE matrix according to current conditions, for details it
will be described in Table 4 below.
Table 4 Internal Factor Evaluation (IFE) Matrix
No |
Internal Factors |
Weight |
Rating |
Weighted Score |
Strength |
||||
1 |
Located in a strategic area |
0.12 |
3.64 |
0.4368 |
2 |
Close to soekarno-hatta
airport and business area. |
0.10 |
3.55 |
0.355 |
3 |
Three-star hotel with four-star facilities. |
0.11 |
3.73 |
0.4103 |
4 |
Renovated room with minimalist type. |
0.09 |
3.27 |
0.2943 |
5 |
International hotel chains in Indonesia |
0.20 |
3.50 |
0.7 |
|
Debilitation |
|
|
|
1 |
Limited meeting rooms and parking lots |
0.09 |
1.50 |
0.135 |
2 |
Small room size |
0.10 |
1.91 |
0.191 |
3 |
Area jammed for a certain amount of time |
0.09 |
2.25 |
0.2025 |
4 |
There are four pillars in the meeting room that limit
the area of the room |
0.10 |
1.70 |
0.170 |
5 |
Meeting room equipment with old strandar |
0.10 |
2.34 |
0.234 |
|
Total |
1.00 |
|
3.1289 |
Source: Data Processed
From the results of the IFE
matrix above, it can be seen that the weighted score obtained is 3.1289 This is
based on an analysis of 10 internal factors consisting of 5 strength factors
and 5 weakness factors. This score indicates that ABC Hotel� is in a strong internal position, so
it can still overcome the existing weaknesses.
According to Rangkuti
(2001) The parameters used in this matrix include the parameters of the
company's internal strengths and the external influences faced. The purpose of
using this model is to obtain a more detailed business strategy at the
corporate level. The company can identify 9 cells of corporate strategy, but in
principle the nine cells can be grouped into three main strategies, namely:
1.
Recommendations for
divisions that fall into cells I, II, or IV can be described as growing and
developing. Intensive (market penetration, market development, and product
development) or integrative (backward integration, forward integration, and
horizontal integration) strategies can be most appropriate for this division of
the division.
2.
The divisions
included in cells III, V, and VII can be managed in the best possible way with
a guard and maintain strategy.
3.
A common
recommendation given for divisions included in cells VI, VIII, and IX is
reaping or divestment.
Furthermore, after the analysis
of IFE and EFE, the next stage is to enter into the IE Matrix to find out which
position the ABC� Hotel
is in which cell. The following IE matrix is shown in Figure 2 below.
I II III IV V VI VII VIII IX IFE
Weighted Score 4 3 2 1 3 2 1
Source: Data processed
Figure 2
External Internal Matrix (IE)
According to Hamel and Prahalad (2000),
in order for emotional energy to be properly directed, foresight is needed that
not only predicts the future but also imagines what kind of future a company
should create based on various existing trends, for example technological
tendencies, consumer behavior, the environment, and so on. The following
industry foresight from Hotel ABC is described in Table 5.
Table 5 Trend Change and Industry Foresight Hotel ABC
Information |
Trend Change |
Foresight |
Technology |
Technology that is increasingly advanced in the era of
industrial revolution 4.0 makes all things can be done easily, such as
checking hotel rooms, reservations, reviews and so on. |
Hotel ABC must be a unique hotel and have an attractive
design, with the latest technology and still prioritize health protocols. |
Lifestyle |
People have changed the way they travel or travel, now
they tend to choose budget hotels to stay. As a result of this pandemic, the
community will also be aware of cleanliness and safety while traveling or
traveling. |
|
Regulation |
There is a ban from the local government for ASN to
hold meetings in hotels and during the pandemic there is a ban on not
gathering in groups and must keep their distance. |
|
Demographics |
The emergence of millennials who will change the
mindset and attitudes of industry players. |
Source: processed data
According to Hamel and Prahalad
(2000), the formulation of the company's strategic challenges is obtained from
an analysis of the current condition of the company's resources with the
expected conditions in the future (gap analysis). In addition, in its formulation
it also pays attention to the tendency of the external environment through benchmarking� with
competing companies.
There are several challenges for
ABC Hotel in the future, these challenges include:
1.
Mearned the title "Cleanstay".
The Covid-19 pandemic
has had a huge impact on all industries in Indonesia, including the hotel and
tourism industry. The impact is so great that it lowers the occupancy� level of hotels in various regions.
Based on Haryanti (2020), conveyed by Coldwell
Banker, hotel occupancy in the first quarter of 2020 decreased. In Jakarta,
hotel occupancy fell 17.9 percent to 48.9 percent. then in Bogor, Depok, and
Bekasi the hotel occupancy rate fell 20.4 percent to 49.4 percent. lastly,
hotel occupancy in Tangerang was recorded to decrease by 16.7 percent to 47.6
percent. The hotel's current performance is the worst performance in the last
10 years.� coupled with government
policies related to PSBB and social distancing as well as room restriction� and
meeting, incentives, convention and exhibition (MICE) activities.
After this pandemic ends, enter a new normal where people are more
concerned about the cleanliness and safety of the places they want to visit. So
that every industry including ABC Hotels� must prepare hotels with good health
proto-k. based on the author's analysis of one of the online hotel booking
sites, in Singapore has implemented and marked "Cleanstay"
in several hotels that have met the qualifications of the local government, s
This is one of the assessments of consumers who will stay, with the "cleanstay" sign, it is hoped that consumers will be
more confident and want to stay safely. So this tantangan needs to be considered by the ABC Hotel.
2.
Returningconsumer trust for stay at
the hotel
Due to the pandemic,
of course, people are still afraid to travel, let alone travel long distances.
Most consumers are also afraid to stay in hotels because they may think hotels
are crowded public places so they are afraid of being infected with viruses, sothat ABC�
Hotels� must convince people who
want to vacation in the Jakarta area� to
still choose� ABC Hotels� as a place to stay agar Hote
l� ABC performance can rise and be normal
again.
3.
Recovery of financial
performance
Financial performance
will be easier to achieve if the two challenges above can be anticipated and
carried out by the hotel management. Hotel finances during the pandemic were
severely undermined and now hamoir is also entering
"survival mode". This means that if this condition continues many
hospitality industries will go bankrupt, sothat the
right strategy is needed to recover the hotel's money.
4.
Anticipate new
emerging competitors
The pandemic is not
the only threat facing hotels today. More and more new competitors are emerging
such as AirBnB, Reddorz,
OYO and others that offer lodging services at lower prices, even local
residents' homes can also be used as lodging places, sofar
this must be anticipated appropriately.
According to David (2011) The
SWOT matrix is a tool for matching interests that helps managers develop four
types of strategies: SO (strength-opportunity), WO (weakness-opportunity), ST
(strength-threat), and WT (weakness-threat). Matching key external and internal
factors is the most difficult part of developing a SWOT matrix.
The SO strategy uses the
company's internal strengths to take advantage of external opportunities.
Organizations will generally execute WO, ST, and WT strategies in order to
achieve a situation where they can implement an SO strategy. When an enterprise
has major weaknesses, it will try to overcome them and make them strengths.
When an organization faces a major threat, it will try to avoid it in order to
concentrate on opportunities.
The WO strategy aims to correct
internal weaknesses by taking advantage of external opportunities. Sometimes
there are external opportunities but the company has internal weaknesses that
prevent it from exploiting those opportunities.
ST strategy uses the power of the
company to avoid or reduce the influence of external threats. This does not
mean that a strong organization should always face threats in its external
environment head-on. W-T strategy a defensive tactic geared towards reducing
internal weaknesses as well as avoiding external threats.
The next matching stage is the
SWOT matrix where the basic material of information used in this matrix comes
from the internal and external factors contained in the IFE and EFE matrices,
as well as looking at the company's current position in the IE matrix. This
data is used to formulate various alternative strategies by combining internal
and external factors so as to produce ten alternative strategies that can be
chosen to be carried out by the company. The resulting alternative strategies
for ABC� Hotels
are as follows:
1.
Utilizing a strategic
location to attract consumers from various walks of life.
2.
Collaborating with
government agencies and related institutions to obtain the title of "Cleanstay" in order to convince consumers to stay in
hotels and implement health protocols in the hotel environment.
3.
Create an attractive
website that contains information about hotel products and facilities, as well
as online booking to introduce and attract consumers in a wider market.
4.
Maximizing the
international status of the hotel chain as a force to promote hotels.
5.
Build good
cooperation with public relations managers to get maximum coverage of
activities in hotels that can attract domestic and international customers
6.
Create promos at
certain events on various travel agents, websites, and social networks.
7.
refurbishing meeting
room facilities and complementing the needs of overnight consumers
8.
Expanding market
segments in increasing the room occupancy rate of individual and corporate guests� by
providing� certain special rates.
9.
Maintain close ties
with airlines, tourism agencies, private clubs, in order to acquire new
business for hotels.
10.
Improving services
and utilizing IoT, Big Data, and Artificial Intelligent (AI) in hotel business
activities.
����������� After
going through the input stages, namely internal and external analysis of the
company, then continued with the matching stage with the IE matrix, continued
with industry foresight �and what challenges must be faced in
the future and associated with the current pandemic conditions, then matched
alternative strategies with SWOT analysis, the�
next stage is the decision stage using QSPM described in Table 6.
Table 6 QSPM Hotel ABC
No |
Alternative Strategies |
TAS Score |
Rank |
1 |
Utilizing a strategic location to attract consumers
from various walks of life. |
5.96 |
4 |
2 |
Collaborating with government agencies and related
institutions to obtain the title of "Cleanstay"
in order to convince consumers to stay in hotels and implement health
protocols in the hotel environment. |
6.55 |
1 |
3 |
Create an attractive website that contains information
about hotel products and facilities, as well as online booking to introduce
and attract consumers in a wider market. |
4.90 |
7 |
4 |
Maximizing the international status of the hotel chain
as a force to promote hotels. |
5.30 |
5 |
5 |
Build good cooperation with public relations managers� to get
maximum coverage of activities in hotels that can attract domestic and
international customers. |
4.95 |
6 |
6 |
Create promos at certain events on various travel
agents, websites, and social networks. |
4.80 |
9 |
7 |
Refurbishing meeting room facilities and complementing
the needs of overnight consumers. |
6.20 |
3 |
8 |
Expanding market segments in increasing the room
occupancy rate of individual and corporate guests� by providing� certain special rates. |
5.12 |
10 |
9 |
Maintain close ties with airlines, tourism agencies,
private clubs, in order to acquire new business for hotels. |
6.25 |
2 |
10 |
Improving services and utilizing IoT, Big Data, and
Artificial Intelligent (AI) in hotel business activities. |
4.85 |
8 |
Source: processed data
From the QSPM results above, it
was found that the largest TAS result was in the second strategy with a value
of 6.55 and the smallest TAS result was in the sixth strategy with a value of
4.80. The largest TAS value shows that the more important strategy chosen and
must be carried out by ABC�
Hotel is the second strategy, namely Working with government
agencies and related institutions to obtain the title of "Cleanstay" in order to convince consumers to stay in
hotels and implement health protocols in the hotel environment. This is very
important to do both during the pandemic and post-pandemic. Because while the
vaccine for the Covid 19 virus has not been found, people are still wary of
staying in hotels, especially since the hotel in question does not have any
health protocols at all.
Strategic architecture is
different from strategic planning (Hamel and Prahalad 2000), in terms of
objectives, strategy architecture aims to redesign industrial boundaries and
create new areas of competition, As Lee et al said.� (2021) if a building that has been long or
has a long journey and has many stories should be preserved so that the value
contained is not lost in vain, one of which is by revitalizing.� While the goal of strategic planning is to increase
market share. In terms of process, strategic architecture is exploratory and
open, while strategic planning is formulations and routines and uses the
current industrial structure as a baseline.
After getting an overview of the
company's future industry with various core competencies needed and strategic
challenges that must be overcome, the next step is to design the company's
strategic architecture in the next 5 years.
2023 2024 2025 2026 2027 Challenges: 1.
Received the title of
"Cleanstay" in the midst of a
pandemic. 2.
Restore consumer
confidence. 3.
Restoring financial
performance 4.
Anticipate new
competitors Strategy 2 & 9 Strategy 7 Strategy 1, 4 & & 5 Strategy 3 & 10 Strategy 6 & 8 Providing
the best service for customers, being the best place to work for
employees, providing a good "return on investment" for
shareholders. Develop a
quality company and employees to create long-term relationships while
being a partner for customers. Vision Mission Become a
unique hotel and have an attractive design, with mutkhir
technology and still prioritize health protocols. New competence: High technology based
hotels in Indonesia Stage of
strengthening competence Growing
stage Performance improvement
stage
Source: processed
data
Figure 3 Strategic
Architecture of ABC Hotel
Based on the description of the
architecture above, the stages of formulating a strategic architecture begin
with the company's vision and mission, then continue with an external analysis
consisting of PESTEL analysis and five forces porters, after that continued
with internal analysis through VRIO analysis and core competencies, then only
thought about the future of the company (industry foresight) along with
strategic challenges in the future. after that� formulated strategies through SWOT
analysis and sorted which one is more priority using the Quantitaive
Strategic Planning Matrix (QSPM). The strategies formulated must be in line
with the vision and mission of the ABC Hotel,so
that the emergence of a strategic architectural picture.
According to Hamel and Prahalad
(2000), the company's strategic architecture prioritizes a strategy stretch
approach (target challenge) not strategy fit (harmony). For this reason, the
preparation of the ABC Hotel architectural design was prepared in 5 years and
divided into three stages in line with Faturohman's
research (2019) by considering strategic priorities, challenges faced and
estimated implementation time.
1.
Stage of
strengthening competence (Strenthening)
At this stage, the
estimated implementation time is 2 years, namely the first and second years.
The strategy at this stage is carried out aimed at strengthening this
competence of the company in order to answer future challenges related to
obtaining the title of "Cleanstay". The
strategy to deal with this is to work with government agencies and related
institutions to obtain the title of "Cleanstay"
in order to convince consumers to stay in hotels and implement health protocols
in the hotel environment. Then the second strategy to overcome these challenges
is to maintain close relationships with airlines, tourism agencies, private
clubs, in order to acquire new business for hotels. It is also intended that
consumers who usually come from flights, travel, or clubs stay and use the facilities
at this ABC Hotel� .
Of course, the hotel must ensure cleanliness and carry out health protocols in
the hotel such as disinfecting the equipment in the hotel. The next strategy is
to update the meeting room facilities and complete the needs of consumers who
stay. This is intended to strengthen the resources owned by the hotel so that
this competence can provide more benefits for customers.
2.
Growth stage
In the growth stage
the approximate time of its implementation is in the third year. In this stage
the strategy is carried out to increase the market growth of the services
provided by the company. The strategy at this stage is to address the
challenges of restoring consumer confidence and restoring the hotel's financial
performance. For the first strategy, it is to take advantage of a strategic
location to attract consumers from various circles. Currently, the airport has
begun to reopen, especially for people on official trips, important officials,
health workers, logistics, and so on. So that hotel management must take
advantage of this opportunity to restore consumer confidence to want to stay in
hotels, so that with this the hotel's financial performance can grow again. The
second strategy is to maximize the international status of the hotel chain as a
force to promote hotels. This strategy is very helpful for customers or
consumers in finding a hotel according to their wishes. Because the
international chain means that this hotel already has a globally connected
management and has spread outside Indonesia, this indicates that the quality is
already good. So that hotel marketing can use this power as a promotional
medium to attract consumer interest which will later have positive implications
for the company's revenue. The next strategy is to build good cooperation with
public relations managers�
to get maximum coverage of activities in hotels that can attract
domestic and international customers. In order for consumers to better
understand what Hotel ABC is like, it is necessary to report specifically so
that it can be aired and the public can see the inside and out of this hotel.
3.
Performance
improvement stage (Excellence)
This stage requires
an estimated implementation time in the fourth and fifth years. At this stage
the challenge that must be faced is about the emergence of new competitors. The
first strategy is to create an attractive website that contains information
about hotel products and facilities, this is in line with the research of Yogaswara et al. (2022) that websites and mobile
applications can increase the excellence and value of a hotel. Furthermore,
online booking to introduce and attract consumers in a wider market. The
website has a function as a marketing media, information media, communication
media advertising media, so this will certainly save marketing costs and can
beat competitors (Galih 2017). The second strategy is
to improve services and utilize IoT, Big Data, and Artificial Intelligent (AI)
in hotel business activities. Because now it has entered the era of the digital
revolution, of course a company must make good use of this moment, including
ABC Hotel. The use of digital technology, causes the boundaries of traditional
organizations to become increasingly unclear. The market environment is
increasingly competitive and intelligent. So companies
must adjust their business operating models to be able to survive and grow in
an increasingly competitive global economy. Digital transformation encourages
companies to quickly adapt to these changes, because companies only have 2
choices of "disrupting" or "disrupting (perishing)" (Raza,
2020).
In the fifth year,
the first strategy was to make promos at certain events on various travel
agents, websites, and social networks. Promos are carried out to attract
consumers. Based on the results of Baunsele's
research (2018), promotion affects the decision to stay in a hotel. So promotion is very important to do because of the large
number of new competitors who offer lower prices. The last strategy is toexpand the market segment in increasing the room
occupancy rate of individual and corporate guests by providing certain special
rates. This is also related to marketing strategies in increasing hotel room
sales. This strategy can be done when the company's financial condition is back
to normal as a result of this pandemic.
These ten strategies aim to make hotels quality and provide long-term
relationships with employees and customers. In accordance with the Vision and
Mission of the company. And the competencies that are expected to be created in
the future are hotels based on high technology in Indonesia.
CONCLUSION
ABC hotel based on the results of
internal and external analysis is known that the company's internal conditions
are better than external conditions. External conditions at this time are less
favorable for ABC Hotels due to the COVID-19 pandemic. So
it is necessary to design a strategy again to face the conditions as it is now.
�� The
core competence of ABC Hotel today is its facilities that are equivalent to
four stars and are international hotel chains in Indonesia for that in the
future based on changing trends in technology, lifestyle, demographics, and
regulations compiled industry forsight of ABC Hotel,
namely ABC Hotel must be a unique hotel and have an attractive design,� with the
latest technology and still prioritizing health protocols.
�� For
this reason, a strategic architecture was compiled to illustrate how the
foresight industry can be achieved with all the challenges that exist. The
preparation of this architecture is divided into three stages, namely
strengthening competence, growth stage, and performance improvement stage.
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Copyright Holders:
Ivan Godang Wardiman, Syafrizal (2023)
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