Hospitality Business Strategy

This report discusses the internal and external factors of the hospitality organization, Beaverbrook hotel, using SWOT and PESTLE analysis. It also covers the McKinsey 7s model for analyzing internal capabilities, competitive forces, and strategies to enhance competitive edge and market position.

HOSPITALITY BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
influence of macro environment factors over organization.........................................................3
Analysis of macro environment for strategic management decisions.........................................5
Stakeholder analysis....................................................................................................................5
Analysis of internal environment capabilities utilizing McKinsey’s 7s model...........................5
Critically evaluation.....................................................................................................................7
competitive forces in the context of chosen organization...........................................................7
Strategy to enhance competitive edge and market position.........................................................8
PART B...........................................................................................................................................8
Evaluation of strategic decisions for organization.......................................................................8
Justification of growth platform and strategy by relevant framework........................................9
Applying range of theories, models and concepts and devise strategic plan for Beaverbrook. 10
Strategic management plan having tangible and tactical strategic priorities.............................11
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy refers to the process whereby organization gain maximum amount of profits
and get easy access to accomplish its desired goals. There are bunch of competitive moves and
actions that business can use to gain attention from customers as well as strengthening its overall
performance. In this study the chosen hospitality organization is Beaverbrook hotel, it is famous
for its overall luxury service facilities and experience to its customers.
In this current report it would be discussing about internal and external factors of
organization by using SWOT and PESTLE analysis. On the other hand, McKinsey 7s model will
be used to describe capabilities, porter’s five forces for competitive analysis of organization.
furthermore, it will cover fundamental aspects related to strategic plan. In this it will cover
strategies, Ansoff growth matrix, various range of model and theories explaining strategic
planning process of organization.
PART A
influence of macro environment factors over organization
Business strategy of Beaverbrook hotel
The business strategy of Beaverbrook hotel is aligned with catering best services for customer
segment as making their staycation with quality experience.
PESTLE analysis
Political factor -
Financial support and some other initiatives by government are efficacious and it can
play major role in promoting hospitality industry (Ardani and Harianto, 2021). Taxation policies,
business regulation, preservation of historic and cultural monuments are some essential
influencing factors from which government can influence.
Economic factor -
Native economies benefits in direct terms from industry in case when domestic as well as
international tourist make their expense in hotel, restaurants, and entertainment spot. Also,
financial crisis negatively impacts over business practices if unemployment remains in higher
extent and wages are stagnant.
Social factor -
The change in customer taste and preference is growing rapidly, the culture of fast food
has reach out towards developed nations and favoured several opportunities for quick service

restaurants. In context of Beaverbrook hotel, social impacts are in higher extent due to negative
perceptions of individual about inadequate employment opportunities which creates high
turnover ratio for organization.
Technological factor -
Technology is one of the most fundamental aspect which benefit organization as
customer has accessibility to book their hotel online. Whereas information technology influence
in this way to favour customer with luxury experience. Data and security management might be
challenging for organizations to deal with it effectively.
Legal factor
The legal environment of country plays vital role towards growth of organization. there
are discrimination laws in places which benefits industry. Government also serves tax deductions
in order to boost economy.
Environmental factor
Organization requires massive demand for light, water and other resources which puts
higher amount of pressure over environment. Hotel is getting under lot of pressure by
governments and environmental activities to ensure reduced carbon footprint. They can shift
towards biodegradable items to hostage climate crisis.
SWOT analysis
Strengths -
The brand recognition is influencing factor for Beaverbrook hotel which introduced
positive perception about them to the customers.
Weakness -
Unfavourable tax rates could be major weakness for Beaverbrook hotel, and seasonality
changes and dependence makes industry vulnerable.
Opportunity -
Relationship management can serve better opportunity for business as it aids in
developing better relations with customers and organization has chance to collaborate more
effectively with their audience and modernize in alignment to wants.
Threat -

Higher competitive forces and pandemic are major threat factors for organization (Aladag
and et.al., 2020). The change in perspective of people is moving in different manner through
which business deal with multiple challenges.
Analysis of macro environment for strategic management decisions
From the above analysis of macro environment of organization, it aids organization for
adaptability of several strategies in order to mitigate impact of several forces impacting
organization and its functioning. By getting in touch with such macro factors adequate measures
can be formed aligning with innovative concerns and taking into consideration all other factors
as per taste and preference of customers for influencing several factors of the organization.
furthermore, it negatively impacts over business operations taking all decisions as per impact
having on Beaverbrook hotel.
Stakeholder analysis
There are various stakeholders associated with company and they have great influence over
various fundamental activities of organization. entity should take sort of decision making as
taking into consideration about key stakeholders. In the context of Beaverbrook hotel
stakeholders are employees, board of directors, management, customers and trade union.
Stakeholder analysis can be further divided into two major types internal and external. Internal
stakeholders are the one having part within company and interest as well. External ones are
termed as who does not have part but has significant power and interest in Beaverbrook.
Analysis of internal environment capabilities utilizing McKinsey’s 7s model
It is important for the Beaverbrook and its management to identify and analyse the
internal capabilities and environment of venture, that help them to take right decision. For
purpose of conducting this practice or activity, a strategic framework implementation is required.
In the context of chosen hotel, McKinsey’s 7 s model is applied, which encompasses seven
different terms that highlight the capability and environment of venture. Each term is mentioned
below;
Strategy-
Beaverbrook is capable to form the best strategies and plans, which it can utilize to
achieve aim and objectives as well as gain desire outcomes (McKinsey 7-S Framework, 2022).
As a key resource and capability, company utilize its strategies for different reasons. Thus, it
allows hotel to build and maintain venture image in the market, appropriately.

Structure-
Another internal capability that chosen hotel have is current one, which means it is able
to well structure its resources such as advanced digital technologies, resources and other assets. It
also utilizes each technology and resource in appropriate manner, which management divided
into teams, according to their requirement, which is essential for them.
Systems-
In the recent time, it is quite important for the management to monitor the daily activities
conduct by their employees (Chmielewska and et.al., 2022). This thing is possible to have in the
chosen hotel, where management can conduct practice of monitoring daily procedures and
activities that enable firm to succeed, further in the hospitality sector.
Styles-
In the Beaverbrook, administration have good leadership styles, which leaders utilized to
boost the morale of candidates and improve their performance, better than last few years or
months. It can put positive impact of venture success and unpredictable growth, in the world of
business, where competition level is high, because of competitive practices conducted by other
hotels.
Staff-
With skilled and talented employees, organization is growing productively and
competitively in the market. It enables hotel to gain unpredictable benefits, more than last few
years or months. Skilled employees are the key resource of hotel, that it can utilize to enhance
customer satisfaction level, than its rivals.
Skills-
As internal environment, management attempt to create friendly atmosphere, where
employees take initiative to develop and improve their skills, better than now. It helps firm to
build strong team of players, among which each candidate is able to achieve business goals and
objectives. With current resource, management can enhance their capability to grow venture.
Shared values-
They develop good understanding among individuals, in form of sharing vision and
mission with employees, either existing or new, for purpose of driving their attention toward aim
achievement. It can lead to increase organizational productivity and performance, than other
hotel brands.

Critically evaluation
It can be critically evaluated that Beaverbrook have number of strengths in term of
capabilities that it can utilize to gain competitive advantages. Along with that firm also have
some weaknesses, that lead to decrease the effectiveness of its legal and business structure,
which is not suitable to hotel rapid growth.
competitive forces in the context of chosen organization
Porters five forces
Threat of new entrance -
The threat of new entrance in the context of Beaverbrook hotel can be explained in following
terms. Threat in this case would be in lower extent as it offers luxurious hotels, pools and better
options to its customers to make their staycations in their favour. New entrant who is open for
business require higher amount of capital to build infrastructure (Elkhwesky, 2022). Also, in
such luxurious hotels major part of sales is covered from permanent customers as it will create
difficulty for new force to develop strong customer base.
Threat of substitute -
In this case threat is in higher extent as people have started work from home that has
served loss in business specially for five star hotels. The concept of Airbnb has become a
substitute and gathering large market share in relevant sector. Customer can form their decisions
on the basis of better facility and price factors. On the other hand, organization still preferred
through its regular customers who like quality services by them without searching for any new
hotel in places.
Bargaining power of supplier -
The power in this phase is in lower terms and suppliers of organization involves raw
materials, infrastructure, maintenance etc. Beaverbrook has better relations with its suppliers and
maintains long term relations with them. By excellent brand value, there are multiple options for
appliances and it minimises bargaining power of supplier of Beaverbrook hotel.
Bargaining power of customers -
The power is moderate in this particular phase as customer base of Beaverbrook is
divided into two components. Firstly, it covers all customers who travel to place in luxury hotel
for staycations, having bargaining power in lower extent. They are advantageous for sales ratio
of hotel and switching cost is higher as there is no chance to experiment with other hotel through

such hefty amount. In addition to this switching cost is in lower terms for customer who is new
and start visiting hotel. The second type of customers are business owners who send its staff for
fundamental deals of business as having tie up with hotels on day to day basis.
Competitive forces -
It is most significant factor as competitors are in higher extent. The competition is based on
switching towards more and more business catering effective offers and discounts for customers.
It is business strategy as most of the customer seek attention towards better price and amenities.
Whereas having many options and data available to customers enable them to pick alternate
location according to their budget.
Strategy to enhance competitive edge and market position
It can be said that organization may adopt with dynamic, changes varying on seasonal
aspects. Also, mapping customer journey play vital role as it enables to understand in depth
about the marketing strategy and customer preferences through which organization can serve
quality of output.
PART B
Evaluation of strategic decisions for organization
Vertical/horizontal integration strategies -
Vertical integration is the process which disclose expansion strategy in which entity
assess majority of control for one or more phase in production or distribution sources. Horizontal
integration refers to business expansion strategy in which business adopt such aspect for
attainment of another firm within similar business line. Overall both strategies allow business to
be more competitive in their places.
In the context of Beaverbrook hotel, horizontal integration would be favourable in terms
to growth by acquisition of multiple competitors which function with similar industry
(Konovalova and et.al., 2018). There are some desired goals which consist of maximizing size,
market power, and product and service differentiation. This will allow them with cut down
practices over cost through sharing marketing efforts, technologies and R&D. on the other hand,
vertical integration can favour organization with moving backward or forward in these two
effective measures. Backward integration takes place when corporate decide to buy other
business which form input product for acquiring company product. Whereas forward integration
appears when organization decide for taking control for post-production process. Basically,

owners in this way own various other companies whereby some of them are at similar level and
others at differentiation. Integration strategies are significant tool in formation of competitive
business. For organization like Beaverbrook horizontal integration will be suitable to enhance
their valuable service in existing market unlike vertical integration, horizontal integration serves
them with gaining control over other business which assist them with similar fruitful product and
services. By following this process, they can make their business expansion strategy more stable
in new area.
Justification of growth platform and strategy by relevant framework
The main aim of this matrix is to reveal organization position in terms of target markets
offered to them. By using this model Beaverbrook can easily access over existing market
situations and it helps managers to gauge combination of four various growth strategies to
expand business operations.
Market penetration -
This plan can be used by company for their business growth and expansion with the help
of existing service in existing marketplaces and gaining higher amount of profit (Canhoto and
Wei, 2021). There are numerous of growth plan in this stage which might be formed by hotel
such as decreasing cost of staycations for their hotel rooms.
Product development -
It is further growth plan which aligns with product development as Beaverbrook can
utilize this strategy to expand business growth by introduction to the latest technological
concerns into existing marketplaces. On the other hand, this strategy can be used by hotel to
serve clients with spa facilities as most of their customers belong to Alit class who usually prefer
luxurious and leisure service first.
Market development -
It is one of the most prominent phase among all four developmental strategies as
company can use this to accomplish leading position in competitive places. Also, they can
enhance their market size as introducing existing services into new marketplaces.
Diversification -
It is riskiest phase in growth strategy as implementing this plan enable organization to
procure fresh items at completely new places to accomplish new market customers (Tajeddini,

Martin and Ali, 2020). Thus, strategies are totally based on introducing overall new services
within new marketplaces.
In the case of Beaverbrook hotel market penetration and market development strategies in
order to promote their business activities to the audience.by following this strategy company will
make effective use of marketing their facilities through appropriate channels which helps to gain
attention from audience. During the time period of decline sales in market they can implement
lower rates and some offers to make better work efficiency in their operations. In market
development the prime method will be favourable for hotel to introduce other branches at new
locations which might be in similar city or new nation. By marketing them in convenient ways
organization can put over some chances to grow their sales level and it allows industry to create
various new segments in existing marketplaces and growth in further revenue as well.
Applying range of theories, models and concepts and devise strategic plan for Beaverbrook
Balance score card is significant term to identify strategic planning, it is generally used for
evaluating performance of management as it assists in implementation of internal and external
outputs (Zanjani and et.al., 2020). By help of this model organization can accomplish strategic
aspects such as objectives, vision and mission. The strategic management plan of Beaverbrook
has ability to get vision as to increase their profit ratio by 30% in overall as objective of the firm
is to develop expansion strategy suitably in various places. For accomplishment of such activities
balance score card aids in getting to such effective methods while getting variations to get
strategic objectives. By gauging target objectives as utilizing score cards introduce to financial
level with cost effective methods and favours to enhance better customer satisfaction. The
assessment can be done in Beaverbrook can be reviewed over terms such as ADR, and OCC to
map desired objectives to enhance profitability with identification of overall business growth.
Although, various directions can be set in places through some process which will serve
organization with chance to seek over working measures of staff and it is competent for tracking
several records safeguarding customer satisfaction. In addition to this all such process can be
done effectively by concerning to financial perspective of maximizing sales profitability by 30%.
Balance score card helps in developing better functionality and growth and learning perspectives
of firm seeking to internal and external factors (Khajezadeh and et.al., 2019). Thus, mapping and
compiling all operations can be done in systematic order concerning to objectives which would
further assist to get in touch with set target as well as tactical concerns.

Strategic management plan having tangible and tactical strategic priorities
Strategic management plan provides major access to organization as it clearly states that
company aim to enhance its profitability concern by 30 percent in total. Suitable strategic
process is essential and it can be followed through balance score card methodology which further
assist entity with higher amount of profitability aspect in respective marketplaces (Kurniawan,
Iswahyudin and Suciati, 2020). Thus, having suitable tactics and objectives creates possibilities
for company to survive in long terms. Business expansion is most considerable aspect for
business as they can look for various opportunities in new market through analysing environment
which might pave the ways for organization to gain better competitiveness in marketplaces.
CONCLUSION
From the above report it has been summarized internal and external factors of corporate
by using relevant frameworks such as SWOT and PESTLE analysis. In addition to this report has
also discussed McKinsey 7s model which briefly described capabilities in the context of
organization. Porter’s five force is used for competitive analysis in which there are four stages of
growth strategies are discussed. Furthermore, it has been covered broad aspects aligned with
strategic management plan. Similarly, it has covered strategies like Ansoff growth matrix and
various range of model and theories related to strategic management planning for organization,
and it has been figured out about vision and objective of company.

REFERENCES
Books and Journals
Aladag, O.F. and et.al., 2020. Strategy implementation research in hospitality and tourism:
Current status and future potential. International Journal of Hospitality
Management, 88, p.102556.
Ardani, E.G. and Harianto, A., 2021. Surviving strategy of hospitality sector in pandemic
situation: case hospitality business in Jakarta. E-journal of Tourism, 8(1), pp.77-86.
Canhoto, A.I. and Wei, L., 2021. Stakeholders of the world, unite!: hospitality in the time of
COVID-19. International Journal of Hospitality Management, 95, p.102922.
Chmielewska, M and et.al., 2022. Evaluating Organizational Performance of Public Hospitals
using the McKinsey 7-S Framework. BMC health services research. 22(1). pp.1-12.
Elkhwesky, Z., 2022. A systematic and major review of proactive environmental strategies in
hospitality and tourism: Looking back for moving forward. Business Strategy and the
Environment.
Khajezadeh, M. and et.al., 2019. Application of neural network in portfolio product companies:
Integration of Boston Consulting Group matrix and Ansoff matrix. International Journal
of Economics and Management Engineering, 13(6), pp.821-825.
Konovalova, E.E. and et.al., 2018. Forming approaches to strategic management and
development of tourism and hospitality industry in the regions. Journal of
Environmental Management & Tourism, 9(2 (26)), pp.241-247.
Kurniawan, D., Iswahyudin, M.D. and Suciati, T.R., 2020. SWOT Analysis and Ansoff Matrix
in Creative Food Industry Business Development: A Study on Creative Food Business
“Komala”. Open Access Indonesia Journal of Social Sciences, 3(2), pp.128-136.
Tajeddini, K., Martin, E. and Ali, A., 2020. Enhancing hospitality business performance: The
role of entrepreneurial orientation and networking ties in a dynamic
environment. International Journal of Hospitality Management, 90, p.102605.
Zanjani, S. and et.al., 2020. Designing a Corporate Growth Strategy Based on Ansoff Matrix
Using Fuzzy Inference System. Innovation Management in Defense
Organizations, 3(2), pp.151-178.
Online

McKinsey 7-S Framework. 2022. [Online]. Available Through:
<https://www.mindtools.com/pages/article/newSTR_91.htm>

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