Business Strategy: Vision, Mission, Objectives, Stakeholder Analysis

This document discusses the business strategy of Savoy Hotel, including its vision, mission, and objectives. It also analyzes the stakeholder matrix and applies PEST analysis to identify the impact of external factors. The document further interprets the VRIO model, executes SWOT and McKinsey's 7S model, and evaluates Porter's Five Forces model. Subject: Business, Course Code: N/A, Course Name: N/A, College/University: N/A

Business
Strategy

Table of Contents
INTRODUCTION......................................................................................................................3
PART – A...................................................................................................................................3
TASK – 1...................................................................................................................................3
P1. Determine the vision, mission and objectives of selected organisation with stakeholder
analysis...................................................................................................................................3
M1. Apply PEST analysis for identifying the impact of external factors over business........4
TASK – 2...................................................................................................................................5
P2. Interpret VRIO model to examine the internal strategies................................................5
M2. Execute SWOT and Mckinsey’s 7S model for exploring intrinsic capabilities.............6
TASK – 3...................................................................................................................................8
P3. Evaluate Porter’s Five Forces model...............................................................................8
M3. Pertain Ansoff’s Growth Vector Matrix.........................................................................9
PART – B.................................................................................................................................10
TASK – 4.................................................................................................................................10
P4. Discuss Porter’s Generic and Bowman’s Strategy Clock..............................................10
M4. Design Strategic Management Plan for selected organisation with its tactics..............12
CONCLUSIONS......................................................................................................................13
REFERENCES.........................................................................................................................14

INTRODUCTION
The business strategy refers as ability of managers to develop creative thinking skills
for developing plan to compete with rivalries with their differentiated tactics for being stable
at global market. In this project, Savoy Hotel is selected for being luxury hospitality industry
that is situated in City of Westminster at Central London, England. This project determines
the vision, mission and objectives with the stakeholder analysis for organisation (Arusada,
Putri and Alamsyah, 2017). It further implements PEST analysis, VRIO model, Mckinsey’s
7S model, benchmarking indicators, Porter’s generic and five force strategy for identifying
the internal and external capabilities of company. Additionally, it explains Balance scorecard,
Ansoff Growth Vector Matrix, Bowman strategy clock with the management plan for
competing with rivalries through its aggressive tactics.
PART – A
TASK – 1
P1. Determine the vision, mission and objectives of selected organisation with
stakeholder analysis
Business Strategy:- The procedure which empower business associates to develop
strategy and tactics for increasing their aggressive power that leads to challenge with
opposition companies. Managers of Savoy emphasize on their business strategy by providing
good atmosphere for workers to perform task and clients to survive their luxurious life.
Introduction of Organisation:- The Savoy is most popularly known for its luxury
hotel that is located in City of Westminster at Central London, England. This hospitality
industry was launched on 6th August, 1889 as being the first lavish hotel in Britain with
electric lights and lifts throughout the building, bathrooms attached in rooms, continuous
supply of hot and cold water, etc. It is highly famous for its blending Art Deco and
Edwardian architecture that provides elegant hospitality for its luxury-loving visitors. The
Savoy Hotel is owned by two companies in equal partnership that are Kingdom Holding
Company and FRHI Hotels and Resorts (Benyayer and Kupp, 2017).
 Vision:- The vision of Savoy Hotel is to play an iconic role for being the first five star
hospitality industry in London to separate and recycle its wasted food.
 Mission:- The Savoy Hotel’s mission is to maximise its qualitative service for
providing high comfort to its customers by meeting their needs and wants at high
level of satisfaction.
 Objectives:- The main purpose for managers of Savoy Hotel is to first build exclusive
hotel with offering new standards for luxury, comfort and service to its clients.

Stakeholder Matrix:- The managers of Savoy implement this analysis as to identify
the necessary actions from workforce that creates opportunity for an organisation to achieve
its ambition.
The managers of Savoy Hotel emphasize on this matrix for mapping the stakeholder
to perform their task with the motive to achieve personal and organisational goals.
 Power versus Interest Grid:- The managers analyse external stakeholders for
identifying their powers and interest towards company in order to improve their
capabilities for meeting their requirements.
 Influence – Impact Grid:- Savoy Hotel managers aims to analyse the power of
stakeholders for their credit and loans as they aims to gain interest over it without
developing interest for knowing the process to generate it (Cavaleri and Shabana,
2018).
 Power – Influence Grid:- This describes that employees within an organisation have
low interest and power towards decision-making procedure but perform their task for
company to attain success.
 Importance – Influence Grid:- This grid for managers of Savoy majorly focus on
supplier, internal users, developers to develop their high interest towards hospitality
industry with low power to achieve specific target.
M1. Apply PEST analysis for identifying the impact of external factors over business
PEST Analysis for Savoy Hotel:- The managers of this hospitality industry identify
the external factors of macro business environment which affect the steadiness of company
either auspiciously or critically.
External Factors Positive Impact Negative Impact
Political The positive impact of political
aspect is to government of
The negative impact of political
aspect is trade restrictions

United Kingdom mostly remains
stable at long time. This restricts
changes in planning of
entrepreneurs and managers
(Chen and et.al., 2018).
create problems for company
through export and import
which increase the cost of
products and result in decrease
of sales.
Economical The economic factor favourably
affects through creating job
opportunities for unemployed
people that result in appointing
skilled candidate which increase
efficacy in goal accomplishment.
The economic factor
unfavourably affects business
managers through creating
boundation for company to pay
minimum wages for motionless
workers.
Social The positive impact of social
factor is people are highly
satisfied by specialised superior
services at which they are
prepared to disburse high
amounts for its quality.
The negative impact of social
factor is society members
expect least charge for stay as
being difficult for company to
manage their bargaining power.
Technological The technological factor
favourably affects as the
adoption of new technology
leads company to improve its
efficiency in accomplishment of
victory. It improves
effectiveness with quality
management that results in
constancy of existing customers.
The technological factor
unfavourably affects as
acceptance of new equipment
within the organisation charge
high cost as being obsolete in
future.
TASK – 2
P2. Interpret VRIO model to examine the internal strategies
VRIO model:- It is described as the process through which managers of company
focus on analysing their scarce resources that have to be utilised effectively in order to
develop its position at international marketplace.
Resources Valuable Rareness Imitable Organized
Infrastructure Yes No No No
Technology Yes Yes No No
Amenities Yes Yes Yes No
Preference of
customers
Yes Yes Yes Yes
The managers of Savoy Hotel focus on these resources of VRIO model for analysing
its capabilities that has to be improved more for restricting weak spots that might create
instability for organisation (Child and et.al., 2019).

 Valuable:- The managers of Savoy Hotel develops value through designing their
effective infrastructure with electronic system and good interior creation that attracts
customers to stay and spend luxury life.
 Rareness:- Managers of Savoy Hotel aims to adopt various technologies and
equipments for improving their business activities in order to increase their quality
and time management.
 Imitable:- The managers of Savoy Hotel are highly imitable by providing various
amenities which are difficult for its competitors to copy and imply easily that result in
increasing satisfaction level of customers.
 Organised:- The Savoy Hotel managers aim to organise their business structure as
per the requirements of customers for making them to feel good and comfortable with
proper management of human resource.
Cost-Benefit Analysis:- This analysis describes that managers of Savoy Hotel
emphasize on properly managing their cost which result in less expenditure with effective
waste management skills (Cotterill, 2019). It increases the ability of managers to provide
effective services at least-cost effective price which expand customers with maximisation of
profitability ratios.
Benchmarking Indicators:- This gauge describes that an organisation usually
compares its strategies, business operations, products, etc., in order to analyse the strength
and weakness of company for being stable.
M2. Execute SWOT and Mckinsey’s 7S model for exploring intrinsic capabilities
SWOT Analysis:- The managers of Savoy Hotel implement this matrix for
identifying their internal and external capabilities that are able to diminish risks. It is most
important for company to use it for recognising the actual capacity of company to lead in
global market.
 Strength:- The managers of Savoy Hotel aims to develop their potential power by
building good employee relations for restricting errors and weak spot for maintaining
its position.

 Weakness:- Managers of Savoy Hotel face limitation for not being able to utilise
scarce resource effectively that builds great challenge for company to compete with
rivalries.
 Opportunities:- The Savoy Hotel managers are highly capable in developing good
infrastructure, adoption of technology, providing amenities for generating customer
satisfaction that result in increasing aggressive strategies (Ehret and Wirtz, 2017).
 Threats:- Managers of Savoy Hotel face coercion with external factors through
uncontrollable risk for change in political leaders that drive policies and procedure
which is difficult for company to sustain at international marketplace.
From the above mentioned SWOT analysis managers of Savoy Hotel mainly aims to
increase their interior and exterior capabilities which includes potential power and prospect to
minimise fault and coercion.
7S Mckinsey’s Model:- This model is usually executed by companies for identifying
the seven elements which can create strategy for organisation to achieve its target efficiently.
Managers of Savoy Hotel aim to use this for accomplishing strategic vision and mission that
has been forecasted by managers to remain stable in competitive market.
 Strategy:- Managers of Savoy Hotel aims to focus on their strategy through
developing innovative ideas for manufacturing specialised production that increase
possibility for company stability.
 System:- The managers of Savoy Hotel aims to develop get-togetherness among its
workforce for completing their specific target at certain time period that enhance in
growth and development of company.
 Structure:- Savoy Hotel managers emphasize on building good infrastructure
through effective utilisation of scarce resources that attracts large number of
customers to enjoy their luxurious life in well-maintained hotels (Hang, Geyer‐
Klingeberg and Rathgeber, 2019).
 Staffs:- Savoy Hotel managers aims to manage their workers by develop good Human
nature through respecting each and everyone. It further motivates employees for
attaining personal and organisational objectives to increase their potential power.

 Skills:- It is most important for managers of Savoy Hotel to provide training and
development projects for its workers that enforce growth in their skills and
capabilities to complete task with perfection by omitting errors.
 Style:- The managers and leaders of Savoy Hotel focus on adopting various
management and leadership styles to encourage workers for performing their task
with specialization in order to restrict errors and delay in goal achievement.
 Shared Values:- The managers of Savoy Hotel focus on sharing values, beliefs,
customers, norms, etc., With each other to share their emotions, views and
information. This builds team morale of workers for pertain their actions in good
atmosphere with the motive to achieve individual goals through giving high efforts.
From the prescribed Mckinsey’s model, managers of Savoy Hotel focus on their
staffs shared values which lead to collaborate with one another for completing the goals on
particular date.
TASK – 3
P3. Evaluate Porter’s Five Forces model
The Porter’s Five Force Model:- The managers of Savoy Hotel executive this
strategy in their organisation for analysing the various factors that challenge it's stability in
global market.
 Competitive rivalry:- Managers of Savoy Hotel examine the available rivalries in
competitive marketplace that adopts various tactics to create threats for company. The
directors further develops plan to minimise weak spots and correction through
increasing their potential power by developing good customers relationship for
supplying best services. The Savoy Hotel competes with Ritz, Hilton and Marriott
International Hotels for being constant on its position (Hazen and et.al., 2018).
 Suppliers Power:- The managers of Savoy Hotel analyse the change in pricing
strategy of various suppliers in perfect competition market and pertains cost
leadership services for increasing their sales with delivering qualitative services.
 Customers Power:- Managers of Savoy Hotel focus on the needs and wants of
customers that has to be fulfilled with unique features and at low cost for which they
are ready to pay high premium to attain maximum satisfaction level.
 Threats of entrants:- It is essential for managers of Savoy Hotel to be aware of new
tapping industries for identifying their strategies that has to restricted efficiently and
must take protective measures for minimising uncontrollable risk.

 Substitute threats:- Managers of Savoy Hotel aims to develop distinctive strategies
as compared to its substitutes by providing various features to its clients at least cost
that enhance market share and create opportunity for being stable in global market.
Balance Scorecard:- It is a performance management technique implied by managers
of Savoy Hotel for building their internal process effectively to meet the desires of customers.
 Internal processes:- The managers of Savoy Hotel analyse the business performance
through monitoring and controlling the activities of workers for completing their job
roles efficiently.
 Financial:- Managers of Savoy Hotel aims to manage their production and service
within accurate budget by estimating the total expenditure for supplying facilities at
least cost to gain profits.
 Learning and growth:- Savoy Hotel managers develops the skills of its workers
through proper guidance and improvement in their skills and capabilities by
describing the importance of their roles towards company (Mohanty and Vyas, 2018).
 Customer:- The managers of Savoy Hotels are highly proficient in satisfying the
needs and wants of end-users through providing them luxurious and comfortable
lifestyle to survive.
M3. Pertain Ansoff’s Growth Vector Matrix
Ansoff’s Growth Vector Matrix:- This concept is mostly implied by managers of
Savoy Hotel for analysing the need of developing new products and expanding business in
order to increase sales and profits.

 Market Penetration:- The managers of Savoy Hotel focus on executing extra
features and speciality in their hotels for promoting it in existing target markets to
increase sales by maintaining low price.
 Market Development:- The process through which managers of Savoy Hotel aims to
promote their products and services by expanding business for attracting new
customers.
 Product Development:- Savoy Hotel managers are highly concern for implementing
new services and providing high luxurious life through proper management of
employees to improve their efficiency in accomplishment of victory.
 Diversification:- The managers of Savoy Hotel focus on supplying distinct services
by expanding their target market for generating high profit-margin to compete with
rivalries (Samara and et.al., 2018).
From the above discussed matrix, managers of Savoy Hotel adopts market
penetration strategy as to minimise the price of products by selling them with high quality
production with the motive to attain futuristic benefits.
PART – B
TASK – 4
P4. Discuss Porter’s Generic and Bowman’s Strategy Clock
The Porter’s Generic Strategy:- It is essential for managers of Savoy Hotel to
implement this generic strategy for maintaining their cost at low price that encourage
customers to purchase more of their products and services.

 Cost leadership:- The managers of Savoy Hotel aims to reduce their cost through
proper management of raw materials and effective utilisation of scarce resources
which leads to minimise their pricing strategy.
 Differentiation:- Managers of Savoy Hotel focus on supplying their services at
distinctive level that enhance customers to attain maximised comfort for staying in
five star hotels in achievement of high relaxation (Singh, Saufi and Hassan, 2017).
 Cost Focus:- The main motive for managers of Savoy Hotel is segregate their target
market and fulfil their specialised demand with best services at low prices for
providing them high satisfaction level at which they claim for high prices.
 Differentiation Focus:- Savoy Hotel managers discriminate target market by
selecting group of individuals that desires to achieve high satisfaction and does not
matter about pricing strategy. The managers further provide various services to those
high income level and charge high prices for gaining profit-margins.
From the prescribed generic strategy, managers of Savoy Hotel adopts cost
leadership strategy for minimising their price of services for clients convenience to pay little
amount.
Bowman’s Strategy Clock:- This marketing strategy is introduced by two great
philosophers that are Cliff Bowman and David Faulkner (Van Zijl, Wöstmann and Maroun,
2017). It is most important for managers of Savoy Hotel for analysing their current position at
international marketplace as compared to its rivalries.

 Low price and low added value:- The mangers of Savoy Hotel aims to keep low
price for their less distinctive product and services as it's not being most competitive
position for company.
 Low price:- Managers of Savoy Hotel sell the bulk of services at low price for
providing less satisfaction level to its customers at which they consume little profit-
margin.
 Hybrid:- Savoy Hotel managers are highly effective while supplying their distinctive
services to its target market. This generates good value for company by keeping low
prices for their superior and specialised services.
 Differentiation:- The managers of Savoy Hotel focus on developing differentiated
services that has not been yet provided by its competitors. It increases the service
quality and high level branding which attracts customers for being reliable and to
retain loyal.
 Focused Differentiation:- Managers of Savoy Hotel aims to segregate their target
market by selecting a group of customers and to provide services for them in order to
maximize their satisfaction level at which they pay premium.
 Risky high margins:- Savoy Hotel managers focus on the value of money as
customers aims to gain high quality services at low prices and determine the best
suitable hotel to attain luxury and comfortable livelihood. It is risky for company as
customers mostly swings from one company to another in accordance with value of
money.
 Monopoly pricing:- The managers of Savoy Hotel aims to generate monopoly
pricing by identifying the most important requirements of customers and supplying it
at large level by competing with rivalry. This further have the opportunity to maintain
high price skimming until there is no competitor for gaining high profitability ratios.
 Loss of market share:- Managers of Savoy Hotel may face loss of market share as
not been able to fulfil the change in requirements of customers that might decrease
their sales and income (Wrona and Sinzig, 2018).
From the above mentioned Bowman’s strategy clock, managers of Savoy Hotel
emphasize on Hybrid Strategy as generates good value for company by keeping low prices
for their superior and specialised services.
M4. Design Strategic Management Plan for selected organisation with its tactics
Strategic Management Plan:- This table describes the futuristic strategy which is
planned by managers through their innovative ideas and creative thinking skills. The main
aim for managers of Savoy Hotel is to execute plan for identifying the various business
activities that has to be performed within premises for attaining goals and objectives.
S. No. Features Explanation
1. Attract and please customers It is most important for managers of Savoy
Hotel to target their customers by
increasing their brand awareness and
positioning with the motive to maximise
sales and profits.
2. Whether to hire new sales assistant The managers of Savoy Hotel further plans
to recruit or appoint new sales person in the
industry for developing their workforce
which results in increasing efficiency for
sustaining at global market.

3. Stake out a market position The Savoy Hotel managers aim to analyse
its market position with its internal
employee performance and the interaction
of clients towards goal achievement. Its
main motive is to build good customer
relations for analysing their changing
demands that has to be fulfilled efficiently.
4. Tactics to be implied The managers of Savoy Hotel develops
various tactics for being stable at
international market that are:-
 Facilitating hotel with gym, spas,
meditation, healthcare services, etc.
 It further give amenities of
swimming pool, music, etc.
5. Conduct operations The Savoy Hotel managers emphasize
leaders to execute plan that result in
maximising revenue, profits and market
share.
6. Complete successfully The managers of Savoy Hotel are highly
capable in achieving their desired target at
certain period by encouraging worker to
give their high level of efforts towards
company goals.
7. Achieve organisational objectives This results in achieving ambition and
intention of company for competing with
rivalries through their aggressive strategies.
CONCLUSIONS
From the above discussed project it have been concluded that adoption of business
strategy is highly important in an organisation for competing with rivalries to remain at its
position in global market. This project determines the vision, mission and objectives with the
stakeholder analysis for organisation. It further implements PEST analysis, VRIO model,
Mckinsey’s 7S model, benchmarking indicators, Porter’s generic and five force strategy for
identifying the internal and external capabilities of company. Apartly, it explains Balance
scorecard, Ansoff Growth Vector Matrix, Bowman strategy clock with the management plan
for competing with rivalries through its aggressive tactics.

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