Internal Analysis of Intercontinental Hotels Group

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Value Chain Model.................................................................................................................1
Intercontinental Hotels Group................................................................................................2
Internal Environment..............................................................................................................2
Reflection on Value Chain Model..........................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment can be referred to as the amalgamation of internal as well as
external factors of atmosphere within the confines of which a company carries out its corporate
operations (Waithanji and et. al., 2015). The aim of this essay is to present a reflective analysis
of the internal business environment of a company. The organisation considered for doing this
analysis is Intercontinental Hotel Group (IHG) which is a well renowned and established chain
of hotels functioning within hospitality industry. The report consists of overview of Value Chain
together with in depth analysis of internal environment of company. Also, it encompasses
reflection of its usefulness of Value Chain Model.
MAIN BODY
Value Chain Model
It can be referred to as the integration of a number of business activities which an
organisation undergoes in a bid to ensure effective product and service delivery at market place
(Jordan and Kapoor, 2016). Additionally, this framework is particularly fundamental so as to
suitably and viably make value inside the organization. The grounds on which the before
mentioned thing can be stated is that it straightforwardly illustrates the growth and development
of the firm. In this relation, it is ascertained that greater value upgrades the efficiency as well as
effectiveness of firm within the market place. Besides this, value chain also provides assistance
to an entity in attainment of strategic and competitive edge over the rival firms.
One of the most important contributions to business management was given by Michael
Porter when the idea of value chain was first coined. VCM devised by Porter is one of the most
prominent frameworks that assists an enterprise in presenting the internal analysis of firm. A
somewhat homogeneous presentation has been given inside this model of primary and secondary
activities which are quite usual within the confines of companies, irrespective of the industry
within which the enterprise operates. The accumulation of primary and secondary activities
together form the foundation upon which the goodwill as well as market standing of a company
is dependent. This results in effective accomplishment of corporate goals as well as objectives in
due course of time.
One of the greatest merits of VCM is the approach held by this model. Hereby, the
integration of business systems takes place that tends to have a significant influence on the cost
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