Porter's Five Forces Analysis in Business
Added on 2020-06-03
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Business Organisation andEnvironment in GlobalContext
INTRODUCTIONBusiness environment refers to external and internal forces that influences operationsand decision making process of an organisation. In current scenario, every company wants tospread its business in global market for the purpose of expansion and profitability. Nationaland international environment affects the enterprise in running business in globalmarketplace. This report is about Holiday Inn which is hotel chain and subsidiary ofIntercontinental Hotels Group. It wants to expand business in Poland. In this study, businessenvironment of Poland will be discussed and how it could affect the expansion process of thiscompany. Information of Holiday InnFigure 1 Holiday inn, 2017Holiday Inn is a hotel brand of Intercontinental Hotels Group (IHG) which is one ofleading hotel chain in world. This is founded in 1991. Their main focus is to offer specifiedservices at fair and reasonable price. This hotel chain has approx. 24,69 hotels with around240,000 rooms all over the world. It is known as express by Holiday Inn in Europe and it’sfirst location was Scotland. Their marketing strategies are very strong as they have a adcampaign names as ‘Stay smart’ which shows ordinary people having superior feats.Properties of this group are built according to corporate architectural prototypes whichincludes 60-80 rooms along with suites and high standard rooms (Bromley, and Powell,2012).Their strategy is focussed towards strengthening diverse portfolio by expanding inkey markets and building lifetime relationships with their customers in order to generate
more profits with low costs and direct channels of service providing. They are takingdisciplined approaches to allocate their capital for the purpose of future development. Thishelps them in having sustainable growth in profitability and providing high returns toshareholders in long term. Top level executives are responsible for ensuring leadership withreviewing all its hotel’s activities in effective manner (Bryson, 2011). Board sets strategicdirections and goals that are focussed towards building long term value for customers andshareholders. . According to them their culture is responsible for their success. It has an environment inwhich staff, customers and other parties seeks confirmation that company is following theirvalues, and this brand is maintained with a responsible business culture. They have attainedsuccess through effective leadership and governance that encourages sensible attitudes andbehaviours in business. They ensure that their employees are getting important legal andreputational issues. This hotel chain is also ensuring the safety and security of staff andvisitors (Henson, and Humphrey, 2010). They are having effective risk management andcontrol in internal environment. They are committed towards making high standards for corporate governance. As it is listedin London Stock Exchange and New York Stock Exchange it complies with principles ofgovernment and they have adopted concept of corporate governance. Board heads thestrategic directions and long term objectives for growth of this hotel. Their aim is to monitorthe performance of its staff in order to manage the risks. Various key decisions are taken byboard itself. Such decisions are related with expansion plan, investment proposals andmanaging its operations and financial performance (O’Brien, 2012). Large scale delivers huge advantages in hotel industry due to which they arespreading at the global, national and local levels. They are concentrating on attractive marketplaces and countries from where they can get benefits of economies of scale, higher profitmargins and strong operating leverage. Recently, they have announced to grow their presence in Poland by spreadingHoliday Inn brand in this country. In Europe they have around 291 Holiday Inn hotels. Now,they are moving towards Warsaw West Station by building another hotel there. This newhotel will be hallmark of this brand. There will be open lobby where guests can enjoy incombined restaurant, lounge area and bar along with some area for entertainment zone. It will
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