Intercontinental Hotels Group
Intercontinental group of hotels is one of the leading hotels in the world with over 672,000 rooms in more than 4500 hotels in about 100 countries all over the world. Their brands include Americas, Holiday Inn, Crowne Plaza, Holiday Inn Express, Candlewood Suites, Hotel Indigo, Staybridge Suites, HUALUXE™ Hotels and Resorts, Priority Club, EVEN™ Hotels and InterContinental.
Impact of globalization and technology changes
Intercontinental group of hotels relies heavily on tourism. Globalization continues to make the world one global village and this has created a very conducive environment for the growth of tourism all over the world. People travel to other countries all over the world to experience their diverse cultures and also to create social and economic ties that could prove beneficial to their home countries. Gradually, tourism has become one of the leading income earners of many countries especially in Africa. It has not only benefitted individual stakeholders but also the economies of the respective tourism countries. Intercontinental group of hotels has strategically situated itself through many of its brands in most of the tourist hotspots and this enables it to take full advantage of the tourism industries of the respective countries.
Intercontinental group of hotels has also used technological advancements to its advantage. Intercontinental Hotels invest wisely in state of the art equipment. These are very expensive, making it hard for many other hotels to measure up. This has made it possible for them to offer a wide range of products and services for their clients, and this makes them very attractive especially to tourists. Intercontinental hotels managements understand the needs of their clients and focus on surpassing their expectations. The quality of services provided ensures that they attract the crème de la crème of society, and this has been very good for their image internationally. This has made them one of the most highly ranked hotels in the world.
Industrial Organization Model of Above-Average Returns
According to this model, the external environment in which an organization operates has a dominant influence on the strategic plans and actions of that firm. The industry in which the organization chooses to operate influences its performance to a greater degree than the choices of the managers within the organization. This is true for the Intercontinental Hotels group. Due to the nature of services offered, Intercontinental Group of Hotels is largely affected by the state of the tourism industry in the country within which it is in operation. What this means is that whenever the tourism industry in a given country suffers, the branches of the Intercontinental Group of Hotels present in that region are also likely to suffer. This shows the direct effect of the industry on the organization.
Intercontinental group can avoid losses during the low tourism seasons by employing some temporary staff members during the high season with the understanding that their services are only required for a brief and specified period of time. This can help reduce losses whenever the tourism period is not in its peak season. They can also offer a limited range of services during the low season so as to avoid any unnecessary losses. During this time, they should invest heavily in their other products in other countries where tourism is at its peak.
Resource-Based Model
According to this model, an organization’s unique qualities, capabilities and resources are the main foundation on which its strategies ought to be built. These include its products and services, brand names, employee skills and managerial skills. It is therefore necessary for the organization to put in place the right mechanisms to exploit these qualities and present them in the best possible manner.
Intercontinental does this by investing in a number of things. First, it invests in training its staff. Training its staff is an important way to ensure that they continue to provide high quality services to their clients all over the world. Although training them is quite expensive, the returns in the long run are very high. Intercontinental hotels provide very high quality services and very few other hotels have been able to measure up. They also provide state of the art equipment which is quite expensive and difficult for other organizations offering similar products to imitate. Intercontinental Group also hires the best managers and other members of the administrative team from all over the world. This ensures that they have the world’s best handling their finances and making decisions for the organization.
Vision Statement and Mission Statement
Intercontinental Hotels Group’s mission statement is: ‘to become the greatest company in the world through creating great hotels guests love’. Their vision statement is very simple: “Our guests want to return.” The Intercontinental group has put in place several strategies to ensure the fulfillment of these goals. First, they work hard at doing what is right by their clients at all times. They ensure that the quality of products and services offered at all times are of the highest possible standards and that the clients get their money’s worth. Second, they are sensitive and strive to understand the needs of their clients better than all other companies offering similar services. They are keen on details and are quick to listen to their clients, and this gives the impression that they care. They also offer a wide variety of products and services to choose from and this diversity ensures that they have something for everybody. This ensures that they are the leading company in their industry. They have also put in place the strongest corporate team which works on the implementation of their projects and strategies. They work hard at fulfilling their vision and mission and this ensures that they continue to excel in their industry.
Role of shareholders
Intercontinental Hotels Group has a number of shareholders and investors who play an important role in the organization. These include Astor Chocolate Corp, Deep Blue Wireless, Merchant Link, Ecolab, Access Point Financial Inc, Unique Refinishers, Inc., Serta International, Brilliant Hotel Software, and Eagle Consulting among others. These shareholders and members play an important role in running the organization. Not only do they invest their money in the organization, they also provide their products and services to the organization at subsidized rates. The members and partners also give their expert opinions on matters pertaining to their areas of expertise. This helps to ensure that the quality of products and services provided is always above par. They also help in making crucial decisions from time to time.
Conclusion
The strategy adopted by the Intercontinental group of hotels has been very successful in ensuring that it remains ahead of its competition. It has invested wisely in technology and on the provision of quality services. It has ensured a steady growth of the company to the international organization it is today . It has wisely invested in the provision of quality, and this has in turn attracted the right clientele, leading to much higher profit margins. This has made it one of the leading organizations offering hotel and resort services all over the world.
References
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Robert E. Hoskisson, M. A. (2008). Competing for Advantage. Cengage Learning.
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