Analysis Of Organizational Structure, Management Approaches, And Industry Strategy Of Travelodge In The Wake Of Brexit

Task 1: Identification of Hotel Industry and Travelodge’s History

The foremost determination of this paper is to focus on the relationship between the functional management, business environment and strategic objectives. Internal analysis will be conducted on the selected organization. Paul Harvey is the managing director of Travelodge who handles the developmental team of the organization, construction team, IT team and the facilities team (Bratton 2015). His role is very much essential for the efficient management practices. Management skill of Paul Harvey is very much important for the growth and development of the organization. There are different other types of managers which deal around different location are also very much important for this business (Lee, Kozlenkova and Palmatier, 2015). There are different project managers at each level of this organization such as the outsourced project managers and the Travelodge project manager.

The paper will be focussing on a private hotel and hospitality industry known as Travelodge. Located in UK, it is the second largest hotel and the third biggest hotel chain in UK. There are different challenges faced by the business organizations such as over booking in a specific season, negative advertisements and false accusations (Shafritz, Ott and Jang, 2015). This corporation have a very long history of changing the board.

Established in the year 1980, this hotel was primarily known as Forte hotels. The first hotel of this hotel was opened in the year 1985 near Lichfield, Staffordshire. In the year 1995 the organization was bought by Granada, in the year 2006 the hotel was bought by Dubai International Capital. Financial restructuring was done in the year 2012 (Stokes et al. 2016). By the end of the year 2010 there were around 32600 bedrooms of this organization all over the world.

The rooms of this hotel can also be customized according to the needs and requirement of the clients. The current parent body of this business organization is Endell Group Holdings Limited. This business organization growth has shown tremendous over the years.

It is defined as the type of structure in a system where the different types of activities are managed. These kinds of activities include the rules, responsibilities and responsibilities (Ashkenas et al. 2015).

Examples of organizational structure

There are different types of organizational structures such as the matrix structure, flat structure, tall structure, divisional structure, administrative structure.

The organizational structure of this organization is the matrix organizational structure where each of the department of this organization such as the project team are linked with the managers such as the executive manager and functional manager (Pettinger 2013). Structural change is one of the main aspect of this organization. This hospitality and hotel organization has undergone several changes from its time of establishment.

Task 2: Exploring Travelodge’s Organizational Structure

The organizational structure which can be proposed to this hotel is the functional organizational structure. According to this structure the different levels of management can be categorized with the help of their experience knowledge and skills (Molina-Azorín et al. 2015). There will be no supervisors, the concerned employees should only be reporting to the functional managers. This kind of organizational structure will be helping to improve the communication between the stakeholders of the organization. The roles and responsibilities are always fixed, hence there is a huge security for the employees.

Advantages and disadvantages of matrix organizational structure 

• The prime advantage of this organizational structure is the efficiency of the resource is maintained.
• Balanced flow of information throughout the life cycle of the project.
• High morale can be maintained within the employees, as the possibilities of conflicts can be minimized.
• The disadvantages include the slowing down of the management reaction to a complex situation.
• Collapse in the structure of the organization is the other limitations of this category.
• Increased overhead costs are the other drawbacks of matrix organizational structure.

It is defined as the type of approach which states about the effectiveness of the management decisions in an organization. The management approaches depend upon the management theories and they are applied to the working environment. The behaviours of the stakeholders of the organization can be managed with the use of the different types of management approaches.

There are different types of modern management approaches such as the followings:

• System approaches.
• Situational approach.
• Chaos approach.

The management approach followed in Travelodge is the contingency approach as the entire business module is not dependent on any single individual but there is a group of managers who are managing this organization from the upper level, different business situations can be managed with the help of this approach in Travelodge (Pettinger 2012). This type of management practice is very much applicable for the having any kinds of changes within the organization. The upgradation of the new rooms and other facilities are better managed with the help of this management approach. Different ways of managing can be done with the help of this category of management approach.

Advantage	Disadvantage
The main advantage of this approach is the flexibility which is huge advantages for this hotel industry.	The limitations associated with this type of approach is that it’s a little bit time consuming.
The growth of the employees is the other advantage of this approach.	There are few complexities associated with this approach such as the decision making approaches of the functional managers. Effectiveness of this approach cannot be always determined.

Table 1: Advantage and disadvantage of contingency approach

(Source: Created by the author)

Strategy is defining as the plan of action of any organization which helps the organization to achieve their organizational target, overall aims and objectives of the organization can be achieved with the help of the strategy (King et al. 2012).

The formulation and the implementation of the strategy is done with the help of a process known as the strategic management (Worley and Doolen, 2015). The utilization of the resources can be done in a more professional way with the help of the strategic management.

The position of the organization among the other similar organization can be understood with the help of this macro-environmental external industry analysis. The five forces will be helpful to understand the power of the different stakeholders associated with this organization.

Forces	Analysis
Competitive rivalry	The cost of the products and services offered by the rival organizations is a huge concern for this organization.
Bargaining power of suppliers	This hotel have a very low threat from the bargaining power of the suppliers.
Bargaining power of customers	This organization faces a considerable high threat from the bargain power of the consumers as there are different other stakeholders associated with this organization such as the tour operators.
Threat of new entrants	The organization needs to be very cautious about the new entrants as they provides same quality of services with a minimal cost which is exactly the thing the consumers want.
Threat of substitute products or services	This hotel faces low threat from the substitute products considering the cost of the services.

Task 3: Suggestion of Modern Management Approach

Table 2: Industry analysis of Travelodge

(Source: Created by the author)

This global hotel industry has a very professional innovative strategic objective which is helping the organization to grow all over Europe. The owners of this hotel have more than 40000 bed rooms with comfy king sized beds in more than 500 hotels in UK, 11 hotels in Ireland and 5 hotels in Spain (Wagner et al. 2014). The current operating income of this organization is around £153.5M and have around 11000 employees. All the hotels are there in convenient location all around Europe. There are more than 170 licensed bars of this hotels, the hotel provides free internet connection only for the first 30 minutes of the check-in.

Conclusion

The paper helps in concluding the nature of this organization which is one of the most leading hotel industry in Europe. The organizational structure of this organization is the matrix organizational structure which states that each of the departments are linked with the functional managers. The modern project management approach followed in this hotel is the contingency approach which states that the entirely management of this organization depends upon a group of managers rather than a single individual. The strategic management of this organization is very much professional and useful as they use the available resources in the best possible way. The industry analysis helped in concluding the power of the different stakeholders of this organization such as the buyers and sellers. The threats coming from the rival organization and the substitute products can also be obtained in a better way with the help of the industry analysis. The impact of the forces which this organization faces towards the growth and development is stated in the paper.

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