The presentation identifies that Four Seasons value chain was composed of two main activities, i.e. the inbound and outbound. Inbound activities are normally based from the primary activities of the hotel which is about enhancement of hotel’s sales and marketing, providing excellent services from the hotel staff, excellent execution of business operation thus providing excellent food and beverage and accommodation. In the outbound activities, Four Seasons are handling tasks related in Human resource management, procurement and enhancement of service delivery system and hotel amenities. Aside from this, the outbound activities were also playing part in business operation. From the linkages between the related boxes, it shows that almost all activities are related to one another. From this value chain, Four Seasons capabilities were identified:
Ø Capability to offer excellent training and procurement processes
Ø Capability to manage its HR
Ø Capability to provide excellent hotel services
Ø Capability to have a good reputation in handling employees
Ø Capability to have a good reputation in handling customers
Ø Capability to handle excellent hotel staff
Ø Capability to lead the hotel service sector in giving luxury hotel services
As seen, the HRM of the company was related to the procurement, service and firm infrastructure. This means that the company was able to gain some benefits if proper and excellent practices are done in HRM. In simple words, excellent HRM could also mean excellent service, firm infrastructure and procurement strategy. And having excellent service means excellent business operation that adds to the reputation of the hotel and helps in their sales and marketing. As revealed in the presentation, the Four Seasons core competency lies in their company culture and HRM that provides excellent staff services that comes from their heart.
Generic Competitive Strategy: Differentiation
In Four Seasons, the generic competitive strategy was their practices towards differentiation. It is a well known fact that human resource professionals play a crucial role towards differentiation and a potent source of competitiveness for Four Seasons. Therefore, Four Season must constantly invest in human resource development even during periods of recession. However, the determination of the extent to which an organization can invest in terms of human resource development depends on the financial capabilities of the company or organization. Finances should be carefully considered in determining the target for training and development, because it should jive with the basic policies of an organization’s human resource development strategy.
Four Seasons’ Core Competencies in the French Market
Four Seasons’ competitive advantage in the Hotel industry of USA is mainly their admirable portfolio of references. With their years of experience and dominance in the market in providing accommodation and hospitality service, they have gained a long list of loyal clients who have impressive business backgrounds by themselves. This promotes the corporate image of Four Seasons to potential customers as one of trustworthiness and quality. If such companies in Four Seasons’ references were deeply satisfied with the products and services that Four Seasons provides, larger chances of attracting possible additional clients in their already long list are sizeable. This portfolio of clients could be Four Seasons’ most effective marketing tool yet. On a more general context, the competitive advantage of Four Seasons could be pointed at their good record in being able to keep clients satisfied, which is an attribute that not all rivals in the business can boast of. Another competitive advantage of the organization is their ability to extend market leadership in France even after the entrance of other companies in the same line of business with better technologies and more market scope than Four Seasons.
Another Four Seasons aspect which can be considered as a core competency is their strategic business planning. Their planning is about setting a direction for the business, a direction to which everybody, executives and employees become committed. It ensures that every part of the company is in harmony, moving towards a clear business purpose that will give Four Seasons further competitive advantage and improve its performance even more. With the planning of Four Seasons’ business come actions or decisions with high impact, or those decisions that affect the company strategically, rather than those that merely concern its normal operating routine. Most of those decisions concern for instance, changing the business model, focusing on new market sectors, fundamental improvements in customer service, making critical investment decisions or obtaining a better return on research and development expenditure. Such action or decisions affect Four Seasons’ long-term performance and enable it to achieve its competitive advantage.
As Four Seasons venture in France and tying up with France Top six Luxury Hotel—F.S. George V, the following PEST analysis was formulated.