Hospitality Business Strategy

Hospitality Business
Strategy

Table of Content
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Applying appropriate frameworks, analyse the impact and influence of the macro
environment on a given hospitality organisation and its strategies.............................................1
TASK 2............................................................................................................................................4
P2. Analyse the internal environment and capabilities of a given hospitality organisation using
appropriate frameworks...............................................................................................................4
TASK 3............................................................................................................................................6
P3. Applying Porter’s Five Forces model, evaluate the competitive forces of a given market
sector for a hospitality organisation.............................................................................................6
TASK 4............................................................................................................................................8
P4. Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given hospitality organisation.............................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy is defined and understood as the set of actions and decisions made by the
entrepreneurs and management of businesses for achieving specific strategic objectives. Business
strategy is considered as a master plan that the management and higher authorities of the
organisation develops and implements in order to secure a competitive position in the
marketplace by carrying out their operations and keeps the customer attracted for achieving their
desired goals (González-Rodríguez and et. al., 2018). The current report is developed on Choice
Hotels International hospitality provider and franchisor based in Maryland, United States
founded in 1939. Current report acknowledges and focuses over the macro and micro
environmental elements which exist and affects the business strategy of Choice Hotels
International. Moving further, porter's five forces model is implemented for understanding the
competitive position of organisation in the industry and specifically in United Kingdom. At the
end of the report a business strategy is adopted and a strategic plan is developed highlighting the
goals of the organisation.
TASK 1
P1. Applying appropriate frameworks, analyse the impact and influence of the macro
environment on a given hospitality organisation and its strategies.
Choice hotels International is 1 is the largest Hotel chain in the world owning seven Hotel brands
ranging from different segments starting from upscale to the economy. The companies serves its
hospitality Services and offerings to worldwide customers by providing them the most
memorable and curated hospitality experience. This factor exposes the business to several
environment according to the separate geographical locations and scenarios. Therefore, in order
to analyse the Macro environment of Choice Hotels International PESTEL framework is utilised.
This is a macro environmental analysis tool allowing businesses to understand the external
environment in which they are operating (Cheon and Cheon, 2016). For this report external
environment of Choice Hotels International is evaluated specifically for United Kingdom market.
A thorough analysis and evaluation is as follows:
 Political
The political factor plays a significant role in identifying those elements which are
influential on decision making of Choice Hotels International on their long-term
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profitability in particular country or region or market. The company is operating in
lodging services and hold operation in more than dozen of countries which exposes it to
several different political environment and system risk. The United Kingdom is facing
issues in flexibility and stability in political environment which is one of the most
important features of lodging sector in the country’s economy.
 Economic
The Macro environmental factors such as saving rate, inflation rate, interest rate,
exchange rate and economic cycle identify the aggregate demand and investment in an
economy (Lopes, 2016). These are few economic elements which can be used by choice
hotels International for their growth and success in the particular market. The United
Kingdom is severely being affected by the execution of BREXIT deal that recently took
place. due to its execution several businesses and industries are negatively affected
because of the unbalance and unstabilized economic conditions. New two laws and other
macro environmental factors are introduced by the government which are not at all
flexible causing distress for several businesses and mostly for international organisations
like Choice Hotels International.
 Social
Society culture and separate ways they adopt for doing things and making their purchase
Decision impacts the culture of an organisation in the particular environment. Basically
social trends that are currently being flowing in the particular region and marketplace are
the factors that are needed to be considered in social element of macro environment. The
social trends of United Kingdom are in favour of choice hotels International because of
one factor that the people identify themselves as in loyal customers and this still are more
attracted towards quality and royalty of services rather than focusing over other factors
such as financial related to pricing. Therefore the Goodwill of choice Hotel International
in United Kingdom is high serving as a benefit for the organisation as people and Royal
towards it and existing customer base is still maintained (Turner and et. al., 2017).
 Technological
Technology is evolving and with a very fast pace drinking huge opportunities and threats
for several organisations belonging to separate industries and sectors. Technological
advancement and updated devices are taking please in every business playing a vital role.
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