Banff Aspen Lodge: Evolving the Business Strategy Harvard Case Solution & Analysis

Assessing the fit of the strategic alternativeswith hotel’s environment

It is sign ificantly important that the proposed alternative strategically fits with the hotel senvironment to reduce future uncertainties/ challenges/ risk and shortfalls.

Since the company’s core competenciesare its experience, location, competitive prices, amenities, flexibility and diverse portfolio, so the decision of pursing complementary service offerings i.e. restaurant or cafe would increase the willingness of customers to pay high prices so the company can become competitive. Additionally, an increase in the positive customer feedback would lead to the larger customer base from all over Canada and other international target markets, which would ultimately increase the market share and profit margin.

In addition to this, the culture at Banff Aspen Lodge always empowers the employees or workforce. With a modern and fresh expression of its authentic and rich legacy, Banff always provides exceptional environment that create unforgettable experiences of its discerning travels. Not only has this, but also as a result of the innovation, leadership and commitment, Banff succeeded in pursuing the complementary service offerings. The culture of the Banff is guided by various principles which include provision of innovative services,investing in team members, environment protection, serving the community, provision of safer and healthy environment for the guest, customers and team members, consistent customer delight, strengthening loyalty of constituents of company and creation of proud culture allow the company and its employees to work collaboratively and actively to achieve the set goals. The corporate culture provides Banff an opportunity to utilize its available resources in an optimum way, while continuing the routine functioning of core business offerings.

Pros for Alternatives

  1. There is a growing opportunity as people choose to go out for dinning as an entertainment.
  2. Concurrently, people are getting busier and much more occupied and do not get enough time to go out for entertainment with their fellow partners and life partners. Cafe and restaurants provide them quick and fair priced services, which will be beneficial for them as they will get to go for outing in shorter time.
  3. Cafe and restaurants help to bring close ness in a community. They help to bring people together which offers the feel of connection between working lives and personal lives.

Cons for Alternatives:

  1. Cafe and restaurant industry is soaked with different geographical and demo graphical segments which is hard to have operations in, especially for newly opened businesses.
  2. Licensing requirement for cafe and restaurant requires huge startup cost, which ultimately increases ongoing expenses for Banff Aspen Lodge.
  3. It takes much time to launch cafe and restaurant business that requires proper analyzation of its targeted segments and number of services provided.


After taking into consideration the projection of the two alternatives, it is to recommend that Banff Aspen Lodge should purse with complementary service offerings i.e. Restaurant for the purpose of gaining competitive edge over the competitors, and to accelerate the growth and boost performance. In addition, the complementary service offerings would be aligned with the organization and culture, it would strengthen the brand and maximizes the profits. As such, Banff should pursue with restaurant as a complementary service offerings due to the feasibility and viability of the project in forthcoming years. It is note worthy that the net present value of Restaurant is $4554659 at the end of year 2016, whereas the net present value of Cafe is $4345792, which depicts that the restaurant would be profitable and is worth the investment....................


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