DB FPX 8415 Assessment 3 Company Analysis Framework DB-FPX 8415 Strategic Decision Making

Introduction 

The onset of the COVID-19 pandemic in 2020 significantly impacted industries globally, compelling many businesses to rethink their operational strategies to sustain themselves in today’s environment. The Leisure and Hospitality industry was notably the hardest hit at the pandemic’s onset. The economic and global disruption resulting from the COVID-19 pandemic will shape the recovery of the hospitality industry. Post-COVID operations will demand unprecedented adaptability from hotels as they develop, implement, and manage safety measures to restore customer confidence and generate renewed demand. Early in the recovery period may be an opportune time for investors to make strategic investments in the industry.

Seyitoğlu and Ivanov (2020) present a conceptual framework for service delivery design in the hospitality industry post-COVID. They identify three service delivery systems: robotics, human-based, and mixed. Traditionally, the hotel industry has relied on human labor for all front-of-house and back-of-house operations. Over recent decades, technology-mediated services, such as online reservations, have become commonplace. The COVID-19 pandemic severely disrupted the hospitality industry, leading hotels that depended heavily on international labor to face labor shortages as these workers returned to their home countries.

DB FPX 8415 Assessment 3 Company Analysis Framework 

Labor shortages have also driven workers to other fields with more lucrative cash flow. Consequently, hotels are rethinking their operations to create a safer and more welcoming environment for customers. While robotics have replaced several tasks formerly performed by humans, this approach is not universally appealing. Some customers prefer face-to-face interactions, making fully robotic services less attractive. As a result, some hotels are adopting a mixed approach of humans and robotics. Each of the three service delivery systems proposed by Seyitoğlu and Ivanov (2020) has its advantages and disadvantages.

The framework by Seyitoğlu and Ivanov (2020) consists of six sections related to service delivery system design (SDSD), with “demand” being the most relevant to acquisitions. Customer safety and security expectations will shape the acquisition approach and are the first facets of the acquisition framework. Understanding customer perceptions and considering demand are essential for a hospitality firm’s positioning strategy (Seyitoğlu & Ivanov, 2020). Customers now place a higher emphasis on health and safety, requiring post-COVID hotel operations to exhibit unprecedented versatility.

DB FPX 8415 Assessment 3 Company Analysis Framework 

Social distancing, hygiene, and cleanliness throughout the customer journey are critical to restoring confidence and generating renewed demand. Industry 5.0 can benefit the hospitality industry by enhancing personalized service, supply chain efficiency, agility, smart work environments, big data use for customer preference information, and providing highly customized services at lower costs. These factors can significantly impact customer satisfaction, loyalty, and perceived service quality (Gopalakrishna et al., 2021). Hotel owners must reimagine existing spaces and streamline services in response to the new normal, balancing guest experience and profit optimization.

Hotel location plays a crucial role in attracting tourists and influencing their decisions. It affects occupancy rates, revenue per room, and profitability. Establishments in populous and economically active areas typically show high potential demand and attract both domestic and international travelers. In 2022, the Southeast had the highest share of industry establishments at 28.5%, followed by the West at 16.3%, the Southwest at 14.7%, the Mid-Atlantic at 10.6%, and the Great Lakes at 11.6% (Ristoff, 2022).

DB FPX 8415 Assessment 3 Company Analysis Framework 

Morgan-Eskola Hospitality Partners (ME-HP) LLC plans to open a European-style boutique hotel and spa in San Francisco, Los Angeles, New York, Chicago, and Boston. The financial-slack-driven risk preparedness of hospitality businesses varies by location (Wieczorek-Kosmala, 2021). Building on Seyitoğlu and Ivanov’s (2020) framework, location is critical for successful acquisitions and future profitability. The cities of interest for ME-HP are major metropolitan areas with established infrastructure and available healthcare, making them suitable choices warranting further investigation.

The third facet of the acquisition framework is people. The pandemic forced hotels to shut down, leading to staff layoffs to cover fixed costs. Many hospitality teams felt undervalued, as management easily let go of crucial staff