Volume 4, Number 3, March 2023

e-ISSN: 2797-6068 and p-ISSN: 2777-0915

 

 


STRATEGIC ARCHITECTURE FORMULATION AT HOTEL ABC

 

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.

 

RESULT AND DISCUSSION

Vision

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.

Mission

Develop a quality company and employees to create long-term relationships while being a partner for customers.

External Environment Analysis

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.

Analysis of PEST and Porter's Five Forces

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.

 

Analysis of the internal environment

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.

VRIO Analysis

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 competence

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.

IE Matrix

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

Text Box: EFE Weighted Score
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Source: Data processed

Figure 2 External Internal Matrix (IE)

Industry Foresight

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

The Company's Future Challenges

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.

SWOT Analysis

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.

Quantitative Strategic Planning Matrix (QSPM)

����������� 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

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)

 

First publication right:

Devotion - Journal of Research and Community Service

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