Strategy in Action of Alex Hotel for Continuous Improvements

Organization Selected : Alex hotel


Strategy refers to long- term planning in context top develop tactical plan. Strategy in action combines both provide structure and adapt behaviour in context to attain the continuous improvements. Strategic action is a methods to assure vision of company is made concrete. This present report is based on Alex hotel and it is largest fast food chain. Under this mention report will be discuss about the growth strategy and the core competencies to attain the continuous growth (Bowen, Baker and Powell, 2015). Cooperative strategy, mergers and acquisitions and international, strategy will be mention in given report. There will be discussion about designing balance scorecard to examine performance of firm.


Growth strategy and leverage

Growth strategy refers to strategy that aim is to winning the large market share in short period of time. The firm has a plan to develop its business as well as enhance its sales and profit. Under this, growth of this hotel is based on the value in which it provide its services to consumers. The main growth strategy of Alex hotel is Product development. It refers to develop the products or services with different ore new characteristics which provide the additional advantages to consumers. It consists changes in existing products or develop new goods which can satisfy needs and demand of consumers at market place. The main aim of this hotel is to make different types of fast food item which can attract the consumers more. Its planning is to prepare the fast foods on the tastes and preferences of consumers and they will be of high quality or hygienic. It will help to Alex hotel to compete with its strong competitors at market place and enhance its growth at competitive market (Daines, Clark and Lenton, 2014).

In an organisation, core competencies means strength, giving foundation from which business will be develop, seize on the new opportunities and also provide the valuable products to consumers. The core competencies by which Alex hotel can enhance its growth is to provide the valuable services and fast food to customers so that their need can be satisfied in a better manner and they can attract toward company. On the other hand, this hotel wants to provide its fast food items under the one roof. These are effective core competencies and valuable to the company.

Correct level and type of diversification

Strategy is scope and direction of company in changing business environment by configuration of its competencies and resources with view to meet with expectation of stakeholders. Corporate level strategies refers to plan to hit particular target required to attain the business objectives. It is executes by while organisational structure. In addition to corporate strategy, it consists careful analysis of business selection so that firm can compete with rivals in a successful manner. It impact on whole for and also regards top delicate in process of strategic planning. In addition to this, corporate-level strategy is when business makes decision that impacts on whole firm. It also impacts on management, finance and human resources of company. Its main aim of Alex Hotel is to enhance profit level as well as maintain financial success in future (Grant, 2016).

Under this, Diversification is a main Corporate level strategy. It uses to enter in to the new market or sector under which business does not operate currently, while developing new goods for the new market. Diversification is helpful in expand in new market as well as manage risk. It looks at services and products of an organisation and then create strategies for successful sales and marketing. This strategy adopts by Alex hotel in order to develop its business. Generally, company apply this strategy when growth has reached at the peak point and there is not any opportunities for the further development of business (Moatti and et. al., 2015). Diversification is helpful in enhance growth of company thereby it lead towards the wealth maximization.

There are different kinds of diversification mention below:

Concentric diversification- It is also known as related diversification. It consists diversification of an organisation in to concerned industry. It is useful for Hotel Alex in the leadership position as company attempts to secure the strategic fit in new sector. Under this, entities introduce the new goods with a motive to utilize potential of prevailing the marketing system as well as technologies.

Conglomerate Diversification Strategy- Under this kind of diversification, entity launch the new services and products which have no relation with the existing products as well as distribution channels. Alex hotel can be adopt this kind of strategy to appeal to new group of consumers. Companies use this type of diversification for earn profit through acquiring other company and selling or breaking its parts in piecemeal.

Different reasons of Diversification are mention below:

  • The main reason of diversification is to reduce the risk of loss in company through splitting various categories of goods in the different markets.
  • With the help of diversification, Hotel Alex can introduce the more option or variety of fast- food items in order to capture new market.
  • It will help in minimize the risk through allocating the investments between different financial industries and instruments.
  • Through diversification, Hotel Alex can gain the more technological capability because the new technology will be helpful in bring new services and products at market place. With the help of this, firm can gain the technological capabilities for business (Kowalkowski and et. al., 2015).

Mergers and acquisitions, international strategy, and cooperative strategy

Corporate level strategy is set of the strategic alternatives that firm selects from as it manages operations and company across many markets or industries. It is helpful for management to balance the resources with the market opportunities in evert area of business. It is a responsibility of top management to develop corporate level strategy.

Mergers and Acquisitions- It refers to consolidation of firms by different kinds of financial transaction. Under this, relationship among two firms are differ Merger occur when the two organisations join forces. It will happen among two businesses about same size and determine benefits other offers in context to enhance capabilities, sales and efficiencies. On the other hand, acquisition occurs when one firm purchases other and fold in to operations. Basically, acquired firm is smaller than company that buy it.

The main reason behind merger & acquisition is that the two separate forms create the more value together compared to being an individual stand. With an aim of wealth maximization, firm can keep examining various opportunities by merger and acquisition (Nad, Gu and Asmussen, 2015).

Cooperative strategy- It refers to planning strategy under which two or more than the two companies work together in context to attain the common objectives. The main reason behind using this strategy is to enhance its profit by cooperation's with the other firms which are not competitors. It provide access to wider and new market to firms and possibility of the learning by cooperation. It is helpful in provide the significant benefit for organisations which are lacking in specific resources, competencies and knowledge. This strategy enable them to secure these by link with the other form possessing the complementary assets or skills. The cooperative strategy provide the easier access to the new markets and also give the opportunities for learning and synergy. These are proving to necessary in facilitate the international expansion of business.

International strategy- An international cooperative strategy means plan that guide the commercial transactions which are taken plan among the entities in various countries. In addition to this, international strategy provides subsidiaries independence to plan as well as implement competitive moves (Orizaola, Dahl and Laurila, 2014).

Under this, Hotel Alex should use the cooperative strategy that helps in make coordination among the two business firms and through this they can perform in a better manner. The cooperative strategy will help company to diversify because if two firm will work together then they can make innovation and also will focus towards developing new or unique products in a better manner. The focus of both firms will be common and by sharing their capabilities as well as resources they can develop the competitive advantages.

Balanced scorecard to evaluate your organisation’s performance

Balance score card refers to performance metric that used in the strategic management to determine as well as improve different internal functions of business and also resulting the external outcomes. Generally, this is used to examine as well as give the feedback to firms. It is used to analyse effectiveness and efficiency of activities against strategic plan of firm. The Hotel Alex use Balance Scorecard at the time of strategic planning to assure the efforts of firm is aligned with the overall vision and strategy (Sonnenschein and Mundaca, 2016).









Enhance Margins

Enhance in Pounds' Profit

25% Revenue

Minimum Interest rate and enhance lending


Reduction in interest loan rates

Small percentage

Reduce by 2%

Reduce the advertised Interest Rate

Internal Business Process

Enhance lending

Quantity of Money being loaned


Reduce Interest Rates


Gain competitive advantage.

Increase sales and profit.

Enhance profit

Increase employees.

With the help of using the Balance score card, Hotel Alex can measure its performance level. Most of the business firm struggle with the performance management because their systems includes of more than form employers use to conduct the evaluations of employees on annual basis. In addition to this, balance scorecard set the measures which gives valuable information.

Concept Map and Reflection

Concept map is a kind of graphic organiser and it is used to help the people to organise as well as represent the knowledge of subject. It is cluster diagram that examined how to abstract the related ideas. These are developed to help people to organise thinking, determine new methods to connect the concepts as well as share information. Concept map is helpful for me top reach at the cognitive performance in a better and effective manner. Under this, it start with main idea and then break the main ideas in to the particular concepts. In order to represent the idea, I used the picture form. I used the concept map to communicate as well as organise the related information in visual manner so that every one can understand about the specific subject area. Maps are helpful in represent information in a personal and creative manner.

Through create the concept map, my skill of generating the new ideas is develop and it am able to search the new concepts as well as proposition in a better manner. With the help of concept map, I can gain the more knowledge related to any topic along with evaluation of information or data. But at the time of creating the concept map I face some difficulties such as more time taken because it is more lengthy and also complex to make. It was complex for me to interpret the relationship on a map. It is in a concise form and I was not able to fill the complete information. On the other hand, in creating concept map, my colleagues and other staff members are included. I have less time to complete the concept map but from the help of all employees I was able to finish this. In addition to this, I encouraged the learning with the visual aids but it discourage the critical thinking. On the other hand, concept map is helpful in enhance the brainstorming because it is helpful for me to think about the new ideas as well as concept concerned with the specific topic in a significant manner. In this, at the time of making this concept map, I learned to integrate the new concepts with the old which help me in the better understanding. Through this, I can able to communicate the new ideas, information and thoughts with the other people in an organisation.

Implications of business strategy choices on functional strategies including marketing, human resources, operations and finance management

Strategy in action is considered as the global strategy which are helpful organisation in finding their own pattern in order to enhance profitability. In the present report growth strategy is used that is helpful in cover larger market in less period of time. In growth strategy Hotel Alex product development in which staff members are focusing formulating some new services in hotel. This will be helpful in developing additional services within already listing packages customers will get high level of satisfaction (Vickers and Lyon, 2014). This hotel conducted special training session to staff which was helpful in gathering taking valuable feedback from customers. Staff members of Hotel Alex have also gone through the external analysis in order to identify actual opportunity of fast food in external market. This was also helpful in finding feasible threats for fresh business proposal of fast food implementation at market place. Cooperative strategy has been chosen for managing all operational activities of the company. Along with this, low pricing strategy has been used which was helpful in grabbing attention of customer. It has been planned to avail quality food products to its customer which is successful in retaining them for longer duration of time. Top management team of the hotel have also planned to opt some marketing strategies such as social media, low price with high quality, low calorie food items for health conscious people, free sample of food, opening fast food chain of Alex hotel etc.

In order to implement above mentioned strategies many functions strategies of Alex hotel will be influenced. Main function which are influenced are human resource, operations, marketing and finance management. And these are described below with their implication.

Marketing: In order to implement effective fast food chain of Alex hotel, it is important to opt effective marketing strategy. These strategy will generate extra requirement of marketing strategies so that it can be effectively executed at market place and grab attention of its targeted customer’s. Mainly the company should now focus on using sales promotion, free sample product .

Human resources: It is one of the most important part of an organisation. The main duty of this department is to help in managing and maintaining all business operations and functions in proper manner. For promoting new products, company appoint skilled and talented human resource person who are capable for create awareness among their commodity in the large market place (Xue, Choi and Ma, 2016).

Operation: It is play an important role in managing and controlling procedure of developing goods and services. This involves planning, organising, controlling, coordinating all resources required to produce firm products and facilities. The company analysing customers needs and want and on the basis of their requirement, operation department produced their choices commodity for them.

Finance management: This division of an organisation assist in managing their money. The main business function of finance department involves accounting, budgeting, maintaining and managing company finances. Along with this, finance division usually develop and produces the firm financial statements effectively. The company analyse whole market and examine production cost of each product before execution as per this they are set company's budget.


It has been concluded that strategy helps for business in the long term planning and it is helpful for company to achieve the target with in given period of time. Under mention report studied about the diversification that is a corporate level strategy. To evaluate performance, Hotel Alex use the balance scorecard has been discussed in this assignment.

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