Final Swot & Ie Matrix

PowerPoint Presentation

Final SWOT & IE MATRIX HelpfulHarmfulInternalStrengthWeakness1. Pan India Presence2. Employee retention3. Constant Innovation4. Highest market capitalization5. Brand Name1. Limited world wide presence2. Declining revenues3. Low operating performance4. Limited financial leverage ExternalOpportunitiesThreats1. Economies of scope2. Growth of Hotel Industry3. Foreign tourist arrivals4. High domestic spendings5. Government Initiatives1. Growing Competition2. Lack of skilled Labours3. Growing Utility Costs4. High Tax structure5. Governments Red-tapismSWOT MATRIXPan India Presence

Operates in 63 locations108 Hotels in IndiaMore hotels in Major cities like Mumbai, Chennai, Bangalore etc.17 International Hotels includes Dubai, Singappore, US, UK etc.

http://www.tata.co.in/company/profile/Indian-Hotelshttp://en.wikipedia.org/wiki/Taj_Hotels_Resorts_and_Palaces#cite_note-The_Tata_Group-8

StrengthsEmployee Strength and HR PracticesOver 13,000 employees

Reward & recognition : Special Thanks and Recognition System (STARS) for customer delight . The Taj Group Wins Hermes International Hospitality Award in Paris for HR practices"STARS" programme voted as the "Best Innovation in Human Resources

Low Employee cost percentage compared to other Competitors

http://www.forbes.com/sites/kevinkruse/2012/10/08/employee-recognition/http://www.moneycontrol.com/stocks/marketinfo/emc/bse/hotels.htmltajstars.tajhotels.com/hermesaward.html

StrengthsConstant InnovationTaj pioneered some well known brands in Indian Hotel Industry.Some well known Ventures: - Taj SATS - largest airline catering service in South Asia, as a joint venture of IHCL and SATSTaj Yachts - has two three bedroom luxury yachtsTaj Air - Taj Air, an air charter companyhttp://www.tata.co.in/company/profile/Indian-Hotels

StrengthsMarket LeaderConsidered to be the most premium hotel brand in India. Highest in terms of Market Capitalization in INDIAHighest in terms of Total assets in INDIA

http://www.moneycontrol.com/stocks/marketinfo/emc/bse/hotels.html

Strengths

Brand Name : - Top of the mind brand recall in Hotel industryRanked among the Top 100 Hotels and Resorts in the World13 in the list of Gold Standard Hotels, in 2014Vivanta by Taj has been voted the 3rd Best Hotel Brand globally, at the Conde Nast Traveller's 16th Annual Business Travel AwardsRecipient of World Branding Awards 2014-2015WBA, a global non-profit organisation dedicated to advancing branding standards for the good of the branding community

http://www.moneylife.in/business-wire-news/state-bank-of-india-and-taj-hotels-resorts-palaces-winners-at-world-branding-awards/43186.htmlhttp://en.wikipedia.org/wiki/Taj_Hotels

StrengthsLimited world wide presence

Over dependence on Indian sub continentsHave Just 17 Hotels only Outside IndiaRatio of Rest of world to India is 1 : 6No Hotels in world Tourist destinations such as Rom, France etc.No focus on worlds commercial hubs like Dubai (Just One Hotel)

http://en.wikipedia.org/wiki/Taj_Hotels#Hotels_outside_Indiahttp://www.tata.co.in/company/profile/Indian-HotelsWeaknessLow operating performanceReduce investors confidence Negative impact on the company's growth prospectsThe company reported operating loss of US$62.3 million in FY2014.The ROE of -14.4% (2014) is less than 1% in 2013 http://www.moneycontrol.com/stocks/marketinfo/operatingprofit/bse/hotels.html

Weakness

Weakness

Limited financial leverage Weak solvency position of the company Impact the credit worthiness and buiness operation. debt-to-equity ratio of 1.3 at the end of FY2013 In 2013, 13.1% increase in debt to US$785.4 from US$694.6 million,

http://www.moneycontrol.com/stocks/marketinfo/netprofit/bse/hotels.html

WeaknessEconomies of Scope: One Luxurious brand for different sets of customersTaj group started organizing its hotels into different brands to suits different segmented customers (Luxury)More vareities : -Taj Exotica (Luxury resorts)Taj Safaris (Eco-tourism)Vivanta (Business and Vacation destination)The Gateway Hotels and Resorts ( Budget Hotels)Taj/Taj luxury (Heritage/Luxury Hotels)OpportunitiesPositive outlook of Hotel Industry

USD5.3 billion in 2011 and to be $23 billion 2015The hotel market is expected to double in size by 2018. (i.e. $46 Billion)$12 billion (Rs 59,442 crore) is likely to be invested in the next two years.

http://www.business-standard.com/article/management/kit-the-indian-hospitality-industry-109051200037_1.htmlhttp://www.ibef.org/industry/tourism-hospitality-india/showcase

OpportunitiesForeign tourist arrivalsForeign tourist arrivals increased at a CAGR of 7.2 per cent during 200514By 2024, foreign tourist arrivals are expected to increase to 13.42 million, India ranks 18th in business travel (World tourism and travel council)Expected to enhance the top line performance of the company

http://www.ibef.org/industry/indian-tourism-and-hospitality-industry-analysis-presentation

OpportunitiesHigh Domestic Spending on leisure : -53 % of Hotels revenue comes Domestically.Young population in Metro citiesBoom of IT (Online Booking) and business travels.


Opportunities

Government Initiatives100 per cent FDI was allowed through the automatic route Promotion by Government, India as a Tourist destination.Incredible India, Athithi Devo BhavaSanction of Tourist VISA to 180 countries as of Aug 2014.


OpportunitiesGrowing competitionHeavy Competition from Leela groups,EIH, ITC etc.International practices of Peer competitorsCompetition from Internationally.As of 2013 , More than 50 50 international budget hotel chains moved into India

http://www.indianmirror.com/indian-industries/hotel.htmlhttp://www.hospitalityindia.com/hospitality-industry-in-india.htm

ThreatsStarwood Hotels & Resortsannounced 65 operational properties by end of 2015 in India.Kempinski plans to operate 3 new hotels in India by 2020. InterGlobe Hotelsin Delhi with plans to have 19 ibis hotels by end of 2016Lemon Tree Hotel Company plans to invest around Rs 4,500 crore

http://www.ibef.org/industry/tourism-hospitality-india.aspxReferences:Media Reports, Ministry of Tourism, Press Releases, Department of Industrial Policy and Promotion (DIPP)

ThreatsShortage of Skilled Labour.Boom of IT, Banking leads hospitality unattractiveNo SOP followed by Indian Tour guides, Managers etc.Unattractive packages lead to employees volatility.Indias focus on white collar jobsPersonalized services are can not be automated.

http://www.naukrihub.com/india/hotels/overview/challenges/

ThreatsThreatsHigh Tax Structure10 % in 201o, 12% in 2013, 14% in 2015At least 12% tax on Luxury hotels.Various other levies also been Hotels with ACs, other cessations etc.http://www.tajhotels.com/Luxury/PDF/Factsheets/NewTariff.pdfhttp://www.goacomtax.gov.in/salestax_taxrate_disp.php?cid=4

Growing Utility Taxes: -Energy Cost, power supply varies from state to stateGrowing Land cost impede investmentshttp://www.moneycontrol.com/stocks/marketinfo/pfc/bse/hotels.htmlhttp://www.hotelnewsnow.com/article/9735

Threats

Governments Red tap: Any given hotel project requires 70 to 120 permitsAnomaly in obtaining licenses.Land clearances, Environmental clearancesPolitical unrestsThe occurrence of swine flu, SARS, flu epidemic has resulted in a decline in the number of tourist.

http://www.hotelnewsnow.com/article/9735

Threats HelpfulHarmfulInternalStrengthWeakness1. Pan India Presence2. Employee retention3. Constant Innovation4. Highest market capitalization5. Brand Name1. Limited world wide presence2. Declining revenues3. Low operating performance4. Limited financial leverage ExternalOpportunitiesThreats1. Economies of scope2. Growth of Hotel Industry3. Foreign tourist arrivals4. High domestic spendings5. Government Initiatives1. Growing Competition2. Lack of skilled Labours3. Growing Utility Costs4. High Tax structure5. Governments Red-tapismS.NoInternal factorsWeightageRatingScoreStrength1Pan India presence 2040.82Employee strength940.363Constant innovation1040.44Market Leader1030.35Brand Name830.24Weakness01Limited world wide presence1020.22Declining revenues 1420.283Low operating performance1030.34Limited financial leverage930.27Total3.15Internal facorsS. NoExternal factorsWeightageRatingScore Opportunities1Economies of scope1340.522Growth of Hotel industry1430.423Foreign tourist arrivals 640.244High domestic spending 1030.35Government initiatives 1030.3Threats01Growing Competition 1530.452Lack of skilled labour 530.153Growing utility Cost1020.24High Tax structure1010.15Government red tape730.21 Total2.89External factorsIE Matrix (IFE & EFE)

Documents

Final Swot & Ie Matrix