Hospitality and Tourism Management

The Co-alignment Strategy in the Hotel Sector

The co-alignment strategy is still a vital resource for the hotel sector. It assists in achieving financial success through its analysis. The hotels use this model and concentrate on four constructs: capital structure, business performance, environmental considerations, and corporate strategy. This article examines the use of such constructs and other strategic management issues at the Arena Utopia Hotel.

Environmental Events and Economic Factors

Environmental events concentrate on elements both inside and outside the hotel, such as societal, political, and technical trends. The case focuses on the performance of the global economy, including China and India, whose 6.5% growth rate was highlighted by Ms. Chong. There is also a mention of the local and national economy's growth that was 2.3% and 4.8% respectively. Other economic factors mentioned include inflation rates and average wages. Social factors such as unemployment in Metropolis population have been addressed.

Organisational Environment Analysis

The organisational environment was also analysed where Ms. Chong and other staff addressed internal matters facing the Arena Utopia Hotel. The check-in time was long and unacceptable, calling for the need to improve the process.

The Role of Corporate Strategy

The corporate strategy constructs have also been mentioned where the need to have the right cadre of employees and reorganisation of the Hotel to make it more efficient through actions such as the development of new divisions and abolishing others.

Corporate Performance and Financial Challenges

The corporate performance has been covered by the chief financial officer. The CFO noted that the Hotel's after-tax earnings had been in decline for the last three years. It was noted that though the revenues were growing, costs rose at a higher rate. The rooms' division manager also noted the need to increase their charges to fit the 5-star services that Arena Utopia Hotel was offering.