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Strategic Management Hilton Hotel

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This revolutionary approach to managing the organization and activities of staff is a unique innovation in the hotel industry and is expected to provide higher levels of customer loyalty (return customer ratios) and securing a more positive brand image for the Hilton group. Because Hilton is rapidly losing market share in regards to client loyalty, the business cannot afford to miss this opportunity to ensure 100% guest satisfaction. From a budget perspective, this new access to staff organization can further minimize the needs for redundant employee volumes, thus saving costs in the long-term.Understanding the client, based on their unique needs and values, is always key to hotel industry success.

From a brand-building perspective, Pence (2008) offers a unique model for understanding the different target markets which are most likely to frequent Hilton Hotels in their travel ventures, known as the VALS 2 marketing model. Figure 1 illustrates the model.As described in VALS 2, there are eight specific segments, each with unique consumer traits, such as the adventure seeker or the striver group, with each segment identified by their unique financial resources and customer preferences. In order to improve customer service, I recommended that junior and senior managers become familiarized, through formalized training seminars, about what the VALS 2 model represents and offer suggestions on how best to change internal operational philosophy to best suit the needs of each likely target group in a wide variety of different hotel environments. For instance, under VALS 2, at one of Hilton’s more budget-conscious facilities, the believer's group tends to trust authority and is conservative by nature (Pence). Hence, at budget-minded Hilton Hotels, leadership through conservative philosophy would likely draw better customer service and higher levels of return customer patronage. This training seminar should be constructed immediately and delivered to all managers responsible for global personnel training and improvement.

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