The Developmental Strategy Study Of Jihua Hotel

Hotel industry in China experienced rapid development since the policy of "reform and opening to the outside world" being put forward. However, since 1990's, especially after China's entry to WTO, the business environment has changed substantially and the changes are expediting and mainly demonstrated in economic internationalization, market globalization, rapid technological innovation, and harsher competitions. There are also profound and quickening changes in culture, system and market. In the meantime, there are more and more specific classifications in hotel industry. Business hotels and economical hotels are coming in a stream and attracting specific group of customers with distinctive business patterns. Jihua Hotel, as the reception hotel controlled by government sector, is challenged by unprecedentedly harsh competition and tremendous pressure. In the meantime, the rapid development of the correlated industrial clusters such as tourism, exhibitions and catering, also brings Jihua Hotel golden opportunity.How to conform to the historical trend and fully tap its advantages, How to identify a suitable way for its self-development, have always been the issues concerned by Jihua Hotel.The reform policy requires subsidiary institutions separated from the government sector. Jihua Hotel, as the state-owned four-star hotel, must realize the situation and actively face the issues of management instability, a shortage of talents and low level of network and many other problems. It should take the initiative measures to comply with the requirements of the market and seize the development opportunity, particularly favorable opportunity in 2009 when the National Games will be held in Jinan, to improve its operational level.This paper conducts an objective evaluation to the industrial development environment of Jihua Hotel, identifies the market environment with both opportunities and challenges by using SWOT analysis, On this basis, propose the development strategy of Jihua Hotel, make the choice of business strategy, and we will implement the secure measure from the organic construction,human resource,marketing and brand, assure the operation of the developing strategy of Jihua Hotel. This paper is divided into six chapters:Chapter 1 proposes the background and significance of the study, as well as the purpose, research objectives and scope of the study, research ideas and research methods, and the paper's contents and structure.Chapter 2 recalls the strategic management theory and prepares for the study, mainly illustrates the concept, role and characteristics of strategic management, tools of strategic analysis and Literature Review, And raises the significance of this paper.Chapter 3, adopting the SWOT analysis, based on the background and development setting of Jihua Hotel, analyzes its internal resources and the current capacity, identifies its advantages and disadvantages. This chapter finally gives Jihua Hotel clear guidance to its advance and retreat business choice by taking BCG matrix analysis.Chapter 4 describes the development of domestic and international hotel industry, as well as the status quo of the government reception hotels. By using Porter model analysis, this chapter gives in-depth analysis to the external environment of Jihua Hotel, as well as the detail analysis to the external opportunities and challenges, thus integrates the SWOT analysis to Jihua Hotel.Chapter 5 proposes the outline of development strategy of Jihua Hotel, that is to uphold the focus of development strategy, choose the decentralization strategy at the operational level, do a good job in the high-Star hotel rooms business, at the same time, enter the Economic hotels and rely on the further expansion of business operations,in order to make Jihua Hotel become one of the best four-star hotel in Shandong Province.Chapter 6 gives recommendations on the formation of an effective organizational structure, strengthening enterprise information construction and brand awareness, improving human resources management and marketing efforts, and enhancing effective leadership and other aspects, to ensure realization of the strategic objectives.