Strategic Management Analysis of Banyan Tree Holdings Limited

Running head: STRATEGIC MANAGEMENT ANALYSIS
STRATEGIC MANAGEMENT ANALYSIS
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT ANALYSIS
Table of Contents
Introduction....................................................................................................................2
PESTEL analysis............................................................................................................2
Impacts of PESTEL analysis on the organization..........................................................4
PORTER’s Five Forces analysis....................................................................................5
Impacts of PORTER’s Five Forces analysis..................................................................6
Strategic recommendations............................................................................................7
Conclusion......................................................................................................................8
References......................................................................................................................9

2STRATEGIC MANAGEMENT ANALYSIS
Introduction
Banyan Tree Holdings Limited is a hospitality based organization that has its
operations on a global basis in different parts of the world. The brand manages the operations
of different spas, hotels and resorts in America, Africa, Asia and the Middle East. The brand
had been established in the year 1994 with the roots in Singapore. Banyan Tree operates more
than 30 resorts and hotels in the year 2014. The organization further plans to increase its
operations in China and Morocco. At present, there are 77 retail based galleries, 70 spas and
3 golf championship courses in 28 countries of the world (Banyantree.com., 2019).
The first resort of the organization was opened in Phuket. The organization has been
able to expand its business model in order to offer three different types of resort based
experiences to the customers, like, Angsana Hotels & Resorts, Cassis and soon to be opened
Dhawa. Banyan Tree is mainly known in the industry for providing offering places based on
locally infused sanctuaries that are able to rejuvenate the mind. The needs of individual
customers or a group of customers are analysed and fulfilled by the organization with the
help of different services that are offered by the brand of Banyan Tree (Banyantree.com.,
2019).
PESTEL analysis
a) Political factors – The political factors of PESTLE framework are based on
different issues including, employment based laws, stability of the government, education
levels and the taxation policy. The favourable climate that has been developed in the South
East Asian based region is a major factor related to development of a proper tourist
destination. The terrorist bombing based activities have also affected the tourism based
activities of the region in an adverse manner (Lee, 2016).

3STRATEGIC MANAGEMENT ANALYSIS
b) Economic factors – The economic factors include different issues like, inflation,
business cycle, disposable income based levels, GDP of the countries, levels of
unemployment and the interest rates. The fluctuations that are experienced in the currency
based rates have been able to affect the international corporations in a huge manner. South
East Asian region is considered to be an emerging region based on the lower rates of GDP
that have been developed in comparison to the first-world based countries (Madera et al.,
2017).
c) Social factors – The social influences that are able to affect the operations of an
organization are based on consumerism, changes in the lifestyle, demographics of the
population and globalization. The social attitude that has been depicted towards the leisure
and work is able to affect the hotel industry or the luxury based industry in general. Other
major social aspects that have been considered for hospitality industry are related to changes
in the family based patterns (Mandal & Vong, 2016).
d) Technological factors – The proper evolution of technology related to the past few
decades had a major impact on luxury industry or the hotel industry. Levels of efficient
research, comparisons are able to ensure high levels of transparency in the market. The hotels
are able to manage the resources and different platforms in a competent way with the help of
proper control and management (Melissen et al., 2016).
e) Environmental factors – The changes that have taken place in the norms related to
the environment have been able to affect the proper development of products or services. The
services in the hospitality industry are developed in such a manner that is able to take the
changes in environmental standards into consideration. The awareness levels of the
consumers have also increased in the last few years which is based on changes in operations
(Mohammed, Guillet & Law, 2015).