Marketing Assignment Writing Sample
Question 1:
Undertake a PESTLE analysis of the drivers for change at the Spanish company, Hotels Viva, during the period 2019 to 2021. [https://www.hotelsviva.com/en/about-viva/]
I. Give an introduction which shows what type of company it is, how big it is, the sector in which it operates, its business classification and type of ownership. (max 150 words).
II. Provide a detailed PESTLE table showing each element with a series of detailed bullet points identifying issues specifically relevant to Hotels Viva and the business context in which it operates.
III. Select what you consider have been the two most important drivers for change in the period 2019 to 2021. Write approx. 250 words (125 on each driver) explaining why you consider these to be significant. You should try to underpin your written discussion with reference to academic theory, both about the PESTLE model and about its importance in understanding change.
Choose ONE of the following academic models for organisational change
I. McKinsey’s 7S process for change (Peters and Waterman, 1982)
II. Kotter’s 8-Step Model for Accelerating Change (2014).
You should not describe the model but can provide diagrams or images showing how it works.
(Any images or diagrams use must cite the original source of the image). You must include a range of academic opinions from other academic authors on the advantages, disadvantages and appropriateness of each model in different types of circumstance and Identifying the implications for managers and HR staff whilst implementing change using this model.
You should write approximately 800 words.
Solution
Question 1
Introduction
Hotels Viva is a family-run hotel business that was founded in the year 1998 and has been running for more than 20 years in the hospitality industry (Hotels Viva, 2023). It is a chain consisting of various hotels offering services to families, sports enthusiasts and general public, thus belongs to the tertiary sector. University Assignment Help, Another part of this hotel chain comprises of Hotels VIVA Adulsts Only for offering exclusively Adults Only service. Viva philosophy focuses on transmitting human value in their services by respecting both guests and employees. The hotel group provides various activities including relaxation and wellbeing centers and sporting activities (Hotels Viva, 2023). The different hotels operating under this group have been offering the latest and best facilities of playing sports through cycling station, massage centers and swimming pool. These hotels are Viva Cala Mesquida Resort & Spa, Viva Blue & Spa, Viva Sunrise, Viva Eden Lago, Viva Golf Adults Only 18+ and Viva Suites & Spa Adults Only 16+.
PESTLE of Hotels Viva
This is a strategic framework that analyses the external environment of Hotels Viva operating in Spain. It focuses on different factors like political, economic, environmental, technological, social and legal (Ho, 2014).
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Thus, from the above table, it can be said that the economic and social factors persisting in the country can widely affect the hospitality industry and Hotels Viva.
Two Drivers for Change
The two most important drivers for change during the period 2019 to 2021 that can impact the operations of Hotels Viva Spain are economic downturns and changing consumer behaviors.
Economic Downturns- The hotel industry is one of the most vulnerable to the economic downturns of a country. This is because it goes through different stages of the economic cycles, where its growth depends on various factors including unemployment rates, job growth, disposable income and others. With the economic downturns in Spain, managers of Hotels Viva struggle to manage declining demand and increased pressures for reducing rates. During the past two years, the hotel industry has been facing various external and internal threats, which include recession, rising taxes, currency fluctuation, increasing costs, falling revenues and unprofitability (Gehrels & Blanar, 2013). Here, the decreasing occupancy, average daily rates and reduced revenue per room have also been the consequences of economic downturns in Spain. Here, the effects of crisis have been further evident in the declining hotel revenues and decreasing demand with the pandemic outbreak amidst the economic downturns.
Changing consumer behavior- It has been observed that travelers and tourists are now seeking lost-cost accommodation for gaining value against their expenditure and longing for direct interactions with local communities (Lu & Tabari, 2019). Furthermore, the rising poverty and decreasing disposable income have been leaving customers in Spain with lesser money to spend on accommodation. This has increased their preference towards lower prices and low budget hotels. Besides, consumers are now demanding high quality services and more value for their money in the hotel industry. This is because they now have increased opportunities of comparing hotel prices over the internet and choose the best suitable ones for them (Lu & Tabari, 2019). Moreover, their tastes and preferences have also been changing with the market trends, thereby making it essential for hotels to keep up with them.
Question 2
Kotter’s Change Model
Business organizations can adopt Kotter’s change management model for responding to the economic downturns and changing consumer behavior (Salman & Broten, 2017). It consists of eight steps that need to be followed in the organization, which have been presented in the figure below.
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Fig: Kotter’s Change Management Model
(Source: Sittrop & Crosthwaite, 2021)
Advantages
This change management model can be undertaken in firms by providing employees and managers with the opportunity of doing something else to address the two drivers. Here, the leaders can convince organizational members about the change by creating a sense of urgency amongst them and taking them through each of the five steps provided in the above diagram (Kang, et al., 2022). It is beneficial in addressing concerns of the employees regarding the changed system, processes or structure, which can further reduce their fear or insecurity in the process. Kotter’s change management model can also be helpful in providing justification or reasoning for implementing the changes in the organizations (Tang & Tang, 2019). It is effective in involving all organizational participants in the change process, thus, making it more fruitful at the end (Kang, et al., 2022). Kotter’s change model can be efficient in making improvements gradually for addressing the two concerns of economic downturns and changing consumer behavior. Firms can apply this model as it is simple and easy to use consisting of a clear description and guidance of the entire change process (Pollack & Pollack, 2015). It provides more emphasis on the participation and acceptability of the employees for ensuring the success of the change process. It also encourages employee buy-in and effective communication (Salman & Broten, 2017). In addition, the model also focuses extensively on preparing and building acceptability of organizational members for change rather than the actual change process (Pollack & Pollack, 2015). Thus, this helps in making the change process more effective in the organization.
Disadvantages
Despite the various advantages of Kotter’s change model, it has also received criticisms. The model focuses on changing people’s behavior rather than the strategy, systems, processes or culture in the organization, which can create problems for the hotel group in addressing the two drivers (Pawar & Charak, 2017). In this model, skipping a single step might become troublesome for undertaking the change process further as it is a linear model. This linearity has been further looked down upon because it lacks flexibility that is required for catering to the vast problems or issues experienced during a change process (Salman & Broten, 2017). Furthermore, undertaking each of the eight steps of the model can become time consuming for the hotel group. Besides, it has also been criticized for considering a top-down approach to initiate change (Rajan & Ganesan, 2017). This might further discourage any scope of involvement of co-creation from the organizational members or employees. Moreover, the model can also build frustration and dissatisfaction amongst the employees if their individual requirements or concerns remain unfulfilled for long-term. Kotter’s work also ignores how democratic this organizational change can be (Pollack & Pollack, 2015). The consideration of one sequence of movement throughout the entire change process can also make it difficult to revisit the earlier stages.
Application and Implications for Managers
Kotter’s change model has become widely popular for undertaking change. Both leaders and managers should undertake some ways for better implementation of the Kotter’s change model. Communication channels must be established for displaying small progresses or success of the change (Harrison, et al., 2021). Furthermore, managers should further provide recognition and acknowledgement for individual jobs performed by the employees, members and participants for keeping them motivated. Besides, companies should further ensure to include revised elements in the on-boarding programs involving new hires for supporting the changed vision and program (Galli, 2019). In this regard, the new leaders should also be communicated and convinced about the changed processes and vision. Moreover, HR managers are extensively important for implementing change in the organizations (Smith, et al., 2014). They should focus on understanding the concerns or fears of the employees and use effective communication to assure them about their job security despite changes occurring at the workplace. Here, other departmental managers are also responsible for initiating changes in the organization by taking accountability and leading the changes. These managers can also face resistance to such changes from the organizational members (Barratt?Pugh, et al., 2013). Thus, they should emphasize on making them understand about the urgency and need for undergoing the change.
References
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