Strategic management

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Introduction ď‚— Starwood is international firm because it engages in

activities outside the borders of its home country. ď‚— Strategic and non-strategic decisions taken by management in different situations have been explored for the purpose of grasping business and market opportunities in a significant manner


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Background and Case study of firm ď‚— The UK based enterprise has global portfolio of luxury

hotels and resorts in 80 countries. It shows that it has worldwide presence. ď‚— The major challenges for firm is to grasp advantage from merger and acquisition activity with Hyatt through reducing human resource management related challenge. This decision can be considered as non-strategic decision taken.


STRATEGIC DECISIONS  According to Hunger and Wheelen (2011) strategic decision deals with the

long-run future of the entire firm and rare, directive and consequential are the three major characteristics of decision making (Hunger and Wheelen, 2011).  Michael, Duane and Robert (2004) described strategic term definition in term of decisions which are concerned with the whole environment in which firm operates can be defined as strategic decision (Michael, Duane and Robert, 2004).  Jones (2009) defined that strategic decision in the context of providing opportunity to company to build mission and objectives.


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Example of strategic decision At financial perspective with help of taking merger example between Hyatt Hotels and Starwood, implementation of non-strategic decision taken by top management of Starwood can be understood in a significant manner.


NON- STRATEGIC DECISIONS ď‚— Blumentritt (2006) defined that administrative and operational decisions

which are taken by management to facilitate strategic decision can be referred as non-strategic decisions. ď‚— Richard and Brian (2001) explored that non-strategic decisions are normally

short term decisions related to working of employees in an organization. ď‚— As per the present case scenario, management of firm was taken marketing

as non-strategic decisions to overcome current issues faced by enterprise at the workplace.


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Example of non-strategic decision HR related decisions Strategic decision taken by firm regarding to conduct performance reviews and configurable user assistance integrated with the user interface, success of non-strategic decisions helpful for organization (Commonwealth Secretariat, 2003).


SWOT Analysis


PESTL analysis


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STRATEGIC DECISIONS  At financial perspective with help of taking merger example between Hyatt

Hotels and Starwood, implementation of non-strategic decision taken by top

management of Starwood can be understood in a significant manner.  Hyatt Hotels acquiring Starwood in cash and stock deal and in this regard,

management of firm has taken initiative to sell its assets.  With help of this merger activity, management of Hyatt group was able to

enhance its offering in both managed hotels and owned hotels (Debrah, 2013).


CONTD.  When this decision analysis on financial aspects then it is found that cash

balance of Starwood by end of Q2 was less than $1 billion and debt around $2 billion.  On the other side, overall market capitalization of Starwood is $13 billion

and Hyatt’s is around $7 billion. Hence, it can be said that Starwood is falling in financial aspect and failed to take more advantages as compare to

Hyatt in form of a cash and stock deal.


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PESTL Analysis  Political environment and legislative related issues  Social and cultural factors  Myriad of security and compliance requirements related technology issues


Conclusion ď‚— hrough identifying risks and taking appropriate strategies risks to overcome

those challenges, management of firm can be able to solve environmental issues, human resource management and financial challenges faced by organization at workplace.


References  Sustainability

Programs

&

Initiatives.

2015.

[Online].

Available

through

<http://www.starwoodhotels.com/corporate/about/citizenship/sustainability/programs.htm l?language=en_US> [Accessed on 29th Oct 2015].  Team, T., 2015. Why It Makes Sense For A Hyatt-Starwood Merger?. [Online]. Available

through:

<http://www.forbes.com/sites/greatspeculations/2015/10/30/why-it-makes-

sense-for-a-hyatt-starwood-merger/>. [Accessed on 2nd November 2015].  Sophie, H., and Olivier, H., 2013. HRM practices and low occupational status older

workers. ,Employee Relations. 35 (3). PP.339 – 355.  Steiss,W.R.,2005.

Strategic Facilities Planning: Capital Budgeting and Debt

Administration. Lexington Books.


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