Sofitel Metropole Hanoi PDF

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A. INTRODUCTION
COVID 19 is now taking place, and it has a significant impact on sectors in Vietnam,
particularly the hotel business. The Sofitel Metropole Hanoi is the country's most luxurious hotel,
yet it can't escape the devastating effects of COVID 19.
This study will be divided into three sections. PESTLE is used in the first part, and the
5-Forces model is used in the second half to highlight the difficulties and possibilities of the
external environment that influence Metropole Hanoi and its industry before and after COVID.
Finally, a SWOT analysis table will aid in the development of existing short-term plans by
examining the present situation's strengths, weaknesses, opportunities, and challenges in order
to assist stabilize Metropole Hanoi through this economic downturn.

B. MAJOR FINDINGS
I. PESTLE
A PESTLE analysis is a framework for analyzing the external factors that influence a
business. It provides people managers with information about the external factors affecting
their business (CIPD, 2020). Three key factors in PESTLE will be mentioned below to assess
the positive or negative impacts on Sofitel Metropole Hanoi and identify future opportunities
and threats to Metropole Hanoi and its industry.
1.Political
a, Government stability and related changes
Vietnam is a one-party state ruled by the Communist Party of Vietnam (CPV),
providing crucial guidance and deciding on all domestic and international affairs (Oversea
Business Risk – Vietnam, 2021). Furthermore, the CPV established a political system that
was governed by the Party.
According to Global Indexes of Vision of Humanity (2020), the index ranked Vietnam
51st in terms of social safety and domain security, which assesses a country's level of
harmony or conflict, mentioning low levels of criminality, negligible terrorist activity and violent
demonstrations, as well as a political stability scene.
Business activities of hotels are associated with human activities in terms of
accommodation, rest, entertainment and so on. Therefore, ensuring political security, social
safety for guests and business activities of the hotel plays a vital role. This requirement can
only be fulfilled under the conditions of a stable and healthy development of the politics of a
country. Therefore, political stability was ranked 3rd among the important factors in the
development of the tourism industry in Vietnam (Ha Long, Van Diep, Ngoc Minh, 2020).
Thus, in 2019, Hanoi's tourism was the most developed ever, welcoming nearly 29 million
visitors, including more than 7 million international visitors (up 17% compared to 2018) (Tong
Cuc Du Lich, 2019). Therefore, in 2019, both revenue and profit of Metropole Hanoi
increased to VND 1,085.2 billion and VND 295.8 billion, respectively (Vietnam News, 2019).
In conclusion, political stability is always a great strength of Vietnam compared to
other countries in the world as well as in the region in developing the tourism industry,
including hotels industry.

b, Government involvement in trade unions and agreements
International integration has always been a major and consistent policy of the Party
and State. Since the 11th National Congress, the Party has determined a comprehensive
integration policy (Department of Science and Technology, n.d.).
Vietnam's process of international economic integration has been accelerated and
taken to a higher level by joining regional and world economic and trade organizations,
signing multilateral economic cooperation agreements (Ministry of Industry and Trade, 2019).
In addition, Vietnam has established diplomatic relations with more than 160 countries and
70 territories, expanding trade relations, exporting goods to over 230 markets of countries
and territories, signing over 90 bilateral trade agreements (Ministry of Industry and Trade,
2019).
Governments have carried out many trade policy reforms towards becoming more
transparent and in line with international commitments and practices (Central Theoretical
Council, n.d.). Accompanying that is political stability in Vietnam, almost no conflicts and
terrorism. This can also be an advantage to increase reliability and peace of mind for
investors when pouring money into a country with great potential for development as well as
a stable political situation. Therefore, the promotion of international trade activities in Vietnam
has been increasingly growing. That has created a wave of investment in Vietnam more and
more from neighboring countries such as: Thailand, China, Japan, Korea and so on as well
as countries with extremely developed economies such as USA, UK, India (Department of
Science and Technology, n.d.). As a result, Vietnam has not only received a large amount of
investment money from partner countries but also increases the demand for accommodation
since foreign experts come to Vietnam to participate in research and investment.
Experts as well as senior staff from other countries will tend to reside at Metropole
Hanoi since in addition to the ancient French architecture and amenities of a 5-star hotel
belonging to the world's leading Accor group. The location of Metropole Hanoi is also
extremely convenient for business purposes because the hotel is very close to government
agencies, luxury buildings with many representatives of domestic and foreign corporate
offices, international banks and domestic banks. Therefore, this “golden” location will be a
plus point that makes Metropole always attract senior staff and project investment team
members in Vietnam, especially Hanoi.