Hospitality Business Strategy: Analysing Macro and Internal Environment, Competitive Forces, and Growth Strategies

This report analyses the impact of macro environment on The Landmark London, evaluates internal environment, and devises appropriate strategies to improve competitive edge. It also recommends the most appropriate growth platform using Ansoff matrix.

Hospitality Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
PART-A...........................................................................................................................................3
Impact and influence of the macro environment on business......................................................3
Critically analysing the hospitality macro environment..............................................................5
Analysing the internal environment and capabilities...................................................................5
Critically evaluating the internal environment of business..........................................................6
Evaluating competitive forces of business through model..........................................................7
Devising appropriate strategies to improve competitive edge....................................................8
PART-B...........................................................................................................................................8
Recommending most appropriate growth platform through Ansoff matrix................................9
Applying range of theories, concepts and models, interpret and devise strategic planning......10
Producing strategic management plan.......................................................................................11
Interpreting information and data applying environmental and competitive analysis...............11
CONCLUSION .............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Hospitality sector is a part of service industry, it comprises of various services like food
and drink, event management, travel and tourism, etc. Business strategy is defined as the set of
plans that a business formulates and implements for competition with the other firms that
operates in the same industry. In central London’s northern side there is a five-star hotel named
The Landmark London. The current report will be divided into two parts. The influence of macro
business environment over The Landmark London will be analysed in the report by application
of pestle and swot analytical models.
This report will critically analyse internal environment using VRIO framework. Further
the report will be using Porter’s five forces model and outline the strategies for improvising the
competitive edge of the company. In the part b of the current report the strategic directions of the
company will be evaluated based on Bowman’s Strategy Clock. The report will recommend and
justify the strategy for the firm using Ansoff’s product development Matrix. Lastly a strategic
management plan will be formulated in this report.
PART-A
Impact and influence of the macro environment on business
There are various factors that impact the business in long run and both these internal and
external factors needs to be analysed in well-defined manner so that minimum negative impact is
created on the business in long run. Also, these might be done through conducting the following
analysis that are as follows:
PESTLE analysis:
Particulars The Landmark hotel London
Political Hospitality industry is highly affected by the
external environment and if there is political
instability in the country than it would impact
the business negatively in form of travel bans
and not allowing people to stay in hotels
Economical Factors like import export restriction would
not allow the firm to have the materials that are
required for successful operation of the hotel.

Thus, would result in negative impact on the
sales of business (Kong and et.al., 2020). Also,
higher inflation rate would also increase the
prices and cots of living in hotel for the visitors
Social Currently visitors are more concern towards
staying in those hotels that are less expensive
and offers quality services. Hence, it creates
pressure on the hotels like landmark to cut
down the prices to provide quality services that
are best from the competitors.
Technological Through upcoming of various social media
platforms it has become much easier for hotels
to review the customer ratings and manage the
website to attract more customer towards the
business.
Legal Big hotels like landmark need to follow the
certain laws so that working of the business is
good. Furthermore, laws like in keeper laws,
trust in menu laws etc. need to be followed so
that customer loyalty is maintained and there is
less government intervention in the business in
long run.
Environmental People are nowadays very much concern in
protecting the environment and its various
resources for its future use (Liu and Kong,
2021). Also, to create positive impact
landmark need to focus on suing environment
friendly and sustainable products so that sales
of the business are not impacted negatively.

SWOT analysis:
This analysis will help in understanding the various internal factors that should be kept in
mind while conducting various business operations so that maximum efficiency is achieved and
there is no negative impact on the business
Strengths
 Well-trained and knowledgeable staff
that is specialized in various activities
 High profit margin of the business
 The Best quality services and
developed brand image in the various
markets.
Weakness
 Very high cost structure that affects
the operations of the company
 Stiff competition from the global
players in hotel industry that limits the
market share.
Opportunities
 Global expansion and entering into
new market will helps the business to
grow (Bai, Cordeiro and Sarkis, 2020)
 Introducing new food category will
give extra edge in improving company
performance.
Threats
 Rising prices of various goods thus
might lead to more increase in prices.
 Lot of small hotel group in the industry
might decrease the overall market share
of the company
Critically analysing the hospitality macro environment
Thus it can be said that through conducting best market analysis the landmark hotel
would be able to maximize the efficiency of its various products and services and would also be
able to attract more potential customers through taking the best strategic decisions. Furthermore,
macro environment will give the idea to the firm on how competitors are dealing with various
challenges so that similar strategy might be applied during the complex times.
Analysing the internal environment and capabilities
Though the landmark hotel is successful in conducting its operation's on global level but
it is very important that the business is focusing on utilizing its internal resources in best of
manner so that better productivity from all its members is ensured. Moreover, it might be best
understood through applying the McKinsey’s 7s Framework that is currently used in the hotel
which as follows:

Strategy: It is developed by firm using data that is collected from the market research so that
competitive advantage might be maintained in against certain competitors.
Structure: Hierarchy organization structure is been followed where all the duties are assigned
by the top management to make the working easier and clear to all level of employees.
Systems: Proper system is been followed in landmark hotel where based on that each hotel staff
had to carry out certain roles in well-defined manner without any kind of delay and misuse of
resources (CHA, HWANG and KIM, 2019)
Shared values: The core values of landmark hotels is serving the needs of the customer in the
best manner and aims at providing the best customer satisfaction in long run. Also, the firm
believes in creating the long-lasting relationships with society so that it is able to maintain
competitive advantage
Skills: Active listening skill, patience, empathy, leadership qualities, technological and
emotional etc. are some skills that are present and needed in every individual employee working
in this industry so that they are able to dress the customer queries in the best manner and able to
handle the tasks in most efficient manner.
Style: Participative leadership is adopted by the firm so that it is able to collect the employees
opinions regarding any change that is intended to be developed within workplace during the
specific time period. Also, through employee participation the firm is also able to make the
workplace more innovative and creative at the same time
Staff: The landmark hire only the highly qualified and experienced staff that are capable of
delivering the best of services to customers and are focused on providing quality services to large
number of people.
Thus, through this framework the cited firm is able to ensure that work is carried out in
best of manner and also it is able to maximize the internal capability of the firm in long run.
Critically evaluating the internal environment of business
For landmark hotel it can be said that internal working of employees are analysed on
regular basis so that if nay corrective actions required than it could be taken on time. Also,
having strong brand image as strength cited firm has capacity to hire and attract the best
customers towards the business that are ready to pay extra prices for the quality services (Sheng
and et.al., 2019.). However, the major demerit is that in times like the pandemic the firm has to

face difficulties in managing the daily operations due to limited revenues and had to face
challenge of managing the diverse employees and ensuing optimum utilizations of resources
Evaluating competitive forces of business through model
Using this type of analysis the firm would be able to identify how to maintain the
competitive advantage in UK and avail various opportunities in best of manner. Furthermore,
this might be well understood through porter five forces model that is as follows:
Competition in the industry: This factor is high in this industry as there are great number of
players that are entering into industry every day and are focused on sustaining in the market for
long period. Also, this has given more rise to the competition but for the landmark hotel
excessive competition is serious threat as it would force the business to cut down various cost
and find new ways of sustaining in the UK market
New entrants into the industry: It is medium to high as hospitality industry is one where any
business might easily enter and exist into the market without facing much restriction. However,
the new entrants would not be able to develop position in the market due to strong competition
from other big players in the industry. Hence, regarding this factor landmark hotel only need to
keep eye on new entrants and its services for better evaluation of company current position.
Power of suppliers: It is low for cited firm as it there is lot of suppliers that are available for the
cited company in UK and hence the company has the right to make the delivery of the goods and
services in timely manner. Furthermore, all the suppliers feel to be part of branded hotels to earn
more revenues in the future.
Power of customer: In this context it can be said it is high for landmark hotel as if customers are
given the supreme importance and hence if their opinion are not taken into consideration than it
would only lead to losses in the future. Furthermore, the customer preferences needed to be taken
care of otherwise they might switch to other options that are available in the market.
Threat of substitute products: This factor is currently low for hospitality industry because for
hotel like landmark that is operating on large scale chances of having similar products and
services are very low (Rogmans and Abaza, 2019). Furthermore, the company is focused each
time to have those products that have the distinct features and have unique attributes so that it is
able to maintain the competitiveness in long run.

Devising appropriate strategies to improve competitive edge
This would be done through conducting the detailed market research and collecting
regular feedback from the customers so based on that changes than might be made. Furthermore,
to maintain the market position the cited firm would analyse the competitor market area and
customer satisfaction level. Thus, based on that it would than take various strategic decisions and
conduct detailed planning for ensuring successful operations of the business.
PART-B
Bowman Strategy Clock
Bowman Strategy Clock is a model that is used by businesses to
earn profits by positioning the products or services it offers to the market based on the price and
value that is perceived by the consumers. As per this model there eight positions a firm can
position its products or services. These positions are: Low Price and Low Value Added: Following this strategy the focus of the firm is to sell
in high quantities (Echchakoui, 2018). And for this purpose of selling in bulk the company
keeps the price of the products low by adding low value to its raw materials. Being goods
available at lower prices is what that attracts the consumers. Low Price: Under this strategy firm make its products the cheapest products available in
the market. Doing so by the firm may result in poor sales if efficiency is not enhanced. The
focus of the frim is over being the efficient in processes and reduce the costs. Hybrid: This position is combination of two positions that comes before and after this
position in the strategy clock. The company makes sure that its price is competitive by
keeping it low and offers the products that are different from what the competitors offer to the
buyers in the market. Differentiation: Under this position of Bowman’s strategy the company sells the
products or services that are different from the competitors. High value to product or services
is added by the company to make their offerings preferred choice of the buyers (Introduction
to Bowman’s Strategy Clock, 2022). The Landmark London positions its services and
products at this stage to compete with its competitors.

 Focused Differentiation: In this the company focus on certain features of the services
and products being offered by its competitors for making its products different from those to
earn profits by satisfying the consumer needs through different offerings. Risky High Margins: Companies constantly offering the products at higher price without
making any enhancements in the products are considered to be positioning their products at
this stage. Monopoly Pricing: Monopoly pricing position is used by companies that are the sole
market player (Lu and Bowman, 2021). This exists when there are no firms in the market for
competing. The firm keep close eye over the external factors to maintain such positioning.
 Loss of Market Share: A company positions it products at this stage only in the situation
when it wants to discontinue or shut down its operations. This is considered as the worst
position out of all the positions that lies on the Bowman’s strategy Clock (Helmold, 2020). A
company generally enters this position at the time of shutting down its operations in the
current product line or industry and setup new product line or enter into new sector or
industry.
Recommending most appropriate growth platform through Ansoff matrix
It is type of matrix that helps cited company stakeholders in identifying the level of risk
that is associated with different growth strategies. Also, this matrix consists of various elements
that are briefly explained as follows:
Market Penetration: It is the strategy where the company is focused on increasing the sales of
the existing products in existing market (Ansoff Matrix, 2022). Also, the major concern of this
strategy is to increase the sales of the business through either decreasing the prices of goods or
through increasing the marketing efforts so that more customer are attracted towards business
and it services
Market Development: This is type of strategy where the existing product would be sold in the
completely new markets and thus for the cited company it can be said that it might be adopted by
analysing the completely new market segment that is interested in the company products.
Moreover, it can also be through entering into the foreign market where completely new area and
the new business might be started that will help in the revenue generation
Product Development: It is method where new products are introduced in existing markets and
it can be said that this might be riskier strategy as detailed market analysis need to be conducted

so that new products is launched into the market. Moreover, this strategy might be adopted
through creating new offering so that more people might be associated with the brand.
Diversification: It is one where new products are launched in completely newer markets and this
strategy is good when the company had already established good brand image and is having best
of resources so that there is no negative impact in the future. Also, the firm might go either for
related or unrelated diversification based on future goals and objectives.
Furthermore, the one that is best suited for the firm would be market development
where the landmark hotel would find new areas where the services would be sold in target
market. Also, it would allow the firm to analysis new areas and increase the market share without
bringing many changes in existing working of the firm.
Applying range of theories, concepts and models, interpret and devise strategic planning
Strategic planning is one where leaders of the organization define vision for the future so
that certain objectives are achieved in timely manner. Moreover, in the landmark hotel following
process is been sued to devise certain strategic plans where firstly strategic position is ben
determine, objectives are been prioritized, strategic plan is developed and executed plan is
review and revised in the end (Shayb and Muşetescu, 2020). Also, for better understanding of
strategic planning VRIO and blue oceans strategy and models will be used that is as follows:
VRIO model;
This is model that is used within business so that best of company resources might be
evaluated in long run. Also, all the strategic tools helps in identification of the long term
competitive advantage. Moreover, certain elements of this model are as follows:
Valuable: In this factor it can be said that cited firm has certain responsibilities that need to be
fulfilled to make the business run more transparent. Also, all the stakeholders are engaged in the
business activities to achieve broader business goals.
Rare: The company has the global presence that is not available for all the hotel firms in UK and
it has gained the financial strength that is lacking in small business firms
Inimitable: Quality product offering could be rarely intimated by other hotel firms as it is
completely unique. Also, the company is offering competitive pricing and using integrated
technology so that it is not easily used by the small business.
Organization: All the resources that are used by company cannot be used by other business and
also through identifying the financial strength the business company is able to evaluate potential

mergers and acquisitions that might be done for the future growth and expansions. Moreover, the
company is involved in continuous research and development that is not possible for other small
hotels that are emerging in the market.
Blue ocean strategy:
It is type of strategy that would be used by the firm for the strategic planning where the
major focus of the company would be to pursuit differentiations and low cost so that new
demand and market might be created within the UK and adjoining regions. Here the company
would focus on creating the demand through introducing those services that they have never
been seen before or experienced by customers (Cubas‐Díaz and Martinez Sedano, 2018).
Furthermore, blue ocean is powerful, deep and vast in terms of increasing the profits and
ensuring growth of the business
Producing strategic management plan
It would be done through clearly identifying the mission and vision statement. Also, the
comprehensive assessment and forecast would be done. Furthermore, through the strategic plan
the organizational direction is also provided to the business and thereafter strategy mapping is
than done by the firm. Hence, through following the proper steps it ensures that work by
employees is carried out efficiently without facing many problems. Also, employees are ready to
take certain strategic initiatives and the also responsible for aligning organizational activities to
achieve the overall gaols of the firm.
Interpreting information and data applying environmental and competitive analysis
Thus through the above analysis that had been conducted it can be said that landmark
hotel had been progressing due to its excellence in services and variety of services been offered.
Furthermore, competitive analysis will provide the new edge in conducting the business at
various levels. Moreover, through setting short and long term objectives it is able to handle
organization operations in most effective manner.
CONCLUSION
From the above report it can be concluded that efficient business strategy had helped
landmark hotel to solve and process complex task in most efficient manner. Furthermore, the
present report had provided the detailed impact of various macro and micro factors through
conducting SWOT and PESTLE analysis. Moreover, McKinsey’s 7s Framework had been
applied to identify the internal environment and capabilities within the business. Furthermore,

use of Porter’s Five Forces model to gain competitive advantage in long run had also been
explained. Also, Bowman’s Strategy Clock had been applied to devise the best strategy for the
firm. Lastly, significance of Ansoff matrix and blue ocean strategy in strategic planning had also
been explained in this study so that better understanding of the future activities might be
identified in most efficient manner.

REFERENCES
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Online
Ansoff Matrix. 2022. [Online]. Available
through:<https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-
matrix/>.
Introduction to Bowman’s Strategy Clock. 2022. [Online]. Available through: <
https://getlucidity.com/strategy-resources/introduction-to-bowmans-strategy-clock/ >
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