Hospitality Business Strategy

This report analyzes the impact of macro environment on London Marriott Hotel using PESTLE and SWOT analysis. It also discusses the internal environment and capabilities of the organization using McKinsey’s 7s Framework and determines the competitive analysis of the hotel using Porter’s five forces model.

Hospitality Business Strategy
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Contents
INTRODUCTION......................................................................................................................3
PART A......................................................................................................................................3
Analyse the impact & influence of the macro environment by using Pestle & SWOT
analysis...................................................................................................................................3
Inform strategic management decisions.................................................................................5
Internal environment & capabilities of organisation by using McKinsey’s 7s Framework.. 5
Determine the competitive analysis of the London Marriott hotel by using Porter’s five
forces Model...........................................................................................................................6
PART B......................................................................................................................................7
Porter’s Generic Strategies.....................................................................................................7
Justified & recommendation of growth platform, strategies through Ansoff’s product
Matrix.....................................................................................................................................7
Considering the range of theories, models & concepts in strategic planning........................9
Strategic management plan..................................................................................................10
Environment & competitive analysis...................................................................................10
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12
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INTRODUCTION
Business strategy is based on the set of actions, focused on the important decisions
which assists the manager of London Marriott hotel in order to achieve desirable goals &
objective. It is defined as set of strategic moves and behave certain actions that enterprises
uses to attract the potential consumers. It outlines the selection of hospitality business such as
London Marriott hotel, which carried out to reach the specific destination. It will exploit the
opportunity for enterprise to minimise the level of threats or risks in proper manner. The
report will discuss external & internal analysis of London Marriott hotel, identify its strategic
approaches. On the other hand, it will consider different theories, models and concepts to
enhance the overall capability of enterprise. At last, it will be achieved the strategic direction
and helpful for hospitality enterprise.
PART A
Analyse the impact & influence of the macro environment by using Pestle & SWOT analysis.
In order to focus on the macro environment of London Marriott hotel, identify that
external as well as internal environment factors impact on the business performance or
efficiency in the competitive marketplace.
Pestle Analysis
Political factor- In the context of Marriott hotel, the political factor that could
affect the hotel due to the danger of international actions, danger of terrorism and
political climate change. These kind of threats are developing a situation of
conflicts among international authority as well as hotel (Ardani and Harianto,
2021). Because of certain threats, it will be reduced the demand of room facilities
or services in the marketplace.
Economic Factor- this type of factor affect the London Marriott hotel and slow
down the economic growth. This can be possible due to debt crisis across the
Europe, china. It have greatly minimised the buying power of people. This is the
biggest effect of this develop a complex situation. On the other hand, the long-
term economic threat is related to the income based inequality and it directly
impact on the people, minimised the ability to travel or stay in hotels.
Social factor- This kind of factor make future look very good way for London
Marriott hotel because there are large number of people that focuses on the
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planned to travel across the global world. In this way, it can be increased the rate
13% to 15% in 2014. In some cases, the cultural changes that could directly
impact on the Hotel business. It could be increased the demand of certain kinds of
travel experiences.
Technological factor- this kind of factor impact on the huge London Marriott hotel
in the form of hotel services. In order to identify the potential threat of London
Marriott hotel, it can be avoided the expenses such as regulations, taxes (Canhoto
and Wei, 2021). It enables host to easily cutting the price of hotel rooms in the
marketplace.
Legal factor- The major impact of legal factor on the London Marriott hotel and
diversify the business. In some cases, the hotel is facing the issue of increased
minimum wages- as high 15 dollar in various proposals. It could be increased the
price of labour or reduced services.
Environmental factor- A potential long term environment impact on the Marriott
hotel that could be increased the prices or costs of electricity. In some cases, it
also increased the emission of greenhouse gases by limiting the coal of burning.
SWOT Analysis
Strength
Global presence- The London Marriott has been increased the revenue and build a
strong brand position in the competitive marketplace.
Customer loyalty- it is the biggest strength of Marriott hotel to maintain & control
loyal consumers by using loyalty programs.
Weakness
Poor positioning- The London Marriott hotel should be consider the structure on the
basis of family focused (Chepkwei, 2021). So, it is difficult to maintain a position in
marketplace. it convert into poor positioning situation.
Negative publicity- the service can be provided by the London Marriott hotel and it
has been minimised the decision to rescue only its consumers.
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Threat
Global pandemic- The London Marriott hotel have already lost 90% of its profitable
rate. It also declined the potential consumers because of the global pandemic.
High competition- It has been rapidly increasing the high level of competition. It is
directly affects on the London Marriott hotel.
Opportunities
Emerging the economies- It is demanding thing to increase the level of the London
Marriott hotel.
Diversify offerings- it always satisfying the potential consumers with the help of
digital technology.
Inform strategic management decisions
The London Marriott hotel is operating the business across the global world. It
focuses on the competitive environment. Based on the pestle analysis, it has been discussed
the different factors such as political, economic, social, technological, legal and environment.
It has been developed opportunity for enterprise to find the best possible solutions
(Ebersberger, Herstad and Nordli, 2021). Different kind of external factors are affecting the
London Marriott hotel and implementing a strategies approach that is able to generate better
results or outcomes. On the other hand, it has been performed SWOT analysis to focus on the
internal performance of the London Marriott hotel and understanding strength, weakness,
threat & opportunities.
Internal environment & capabilities of organisation by using McKinsey’s 7s Framework.
In this section, it is focused on the internal environment and capabilities of the
London Marriott hotel, understanding the demand of business to achieve desired objectives.
McKinsey’s 7s Framework- it is based on the strategic tool or platform that helps
enterprises and manager assess their overall performance. This kind of framework can be
used by the London Marriott hotel to align with the successful change in the business process.
Strategy- In the context of the London Marriott hotel, it needs to be established a
strong coordination between cost saving and also protecting its core competitive edge
(Elche, Martínez-Pérez and García-Villaverde, 2021). The perception of the potential
consumers are attracting the Marriott hotel and deliver the value for money.
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Structure- during covid-19, the Marriott hotel has been followed the structure and
supply chain management of enterprise. In this way, hotel can be diversified the
suppliers on the basis of geographical manner. Sometimes, it is related to the climate
and disruptions, do not impact on the long term business success. The Marriott hotel
needs to use find tune in terms of structure. It also enabling team to make an
important decision on the basis of real time.
System- In case of the London Marriott hotel, it needs to focus on the area- improving
the internal process of hotel. It includes CRM, data visualisation and risk
management. On the other hand, it also focused on improving the level of
productivity but also reduce the data security or privacy.
Staff- the Marriott hotel can be considered the different steps that helps to improve the
Human resources. For example- improving the process of recruitment during covid-
19, it make an effective environment which has become inclusive for new staff
members. It build system for handling the level of business hierarchy (Horng and
et.al., 2021). So, every staff members have performed the different tasks in proper
manner.
Skills- In the context of the London Marriott hotel, it also required to build a structure
of training & development program. The owner of Marriott is focused on the talented
people, who are having an enough skills, knowledge of hospitality industry.
Style/leadership style- It is the most common approach where hotel manager can
adapt the transformation leadership style. In order to improve the procedure of
workflow and build a strong coordination with staff members in the London Marriott
hotel.
Shared Values- the London Marriott hotel has been successful used the business
model, consider as core values, mission or vision. It does not require to change as
much but in the shared values. The investor of the Marriott hotel will be putting a lot
of stress on the governance, societal or environment.
Determine the competitive analysis of the London Marriott hotel by using Porter’s five forces
Model.
As per analysis the McKinsey 7’s framework, the London Marriott hotel can be
focused on the competitive analysis, considering the internal sources of power. It supports the
enterprise to setup a particular strategic mission, vision. In future, it is able to achieve desired
goals or objectives.
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With the help of framework, analysing the strategic vision for targeting groups or
communities. It should include enterprise units, teams or groups, identifying the strategy or
system, skills or shared value of the London Marriott hotel. It is the best way to find the high
level of internal performance (Redjeki, Narimawati and Priadana, 2021). By considering the
Mckinsey 7s framework, it also examined the hierarchical structure of The Marriott hotel. At
last, ultimately efficient way to find the working style or flexibility of enterprise.
PART B
Porter’s Generic Strategies
The porter’s generic strategies are defined the conceptual termed and understanding
that how its impact on the London Marriott hotel. It has been considered the important
strategies such as differentiation and cost leadership.
Differentiation Strategy- In London Marriott hotel, it uses the differentiation strategy
as uniquely categorise the products as well as services. Not only are the potential client, fulfil
all essential requirements (Siti-Nabiha, Nordin and Poh, 2021). The company offers the best
value and perceived a superior than potential competitors. It is also focused on the adding
more values by enterprise and allows for implementing the concept of premium prices or
costs factor. It enables the enterprise and always maintain price by suppliers.
On the other hand, the London Marriott hotel uses the differentiation strategy in order
to develop the best products & services. These are uniquely satisfies the needs of the potential
consumers. This kind of approach is providing the best lodging options for guests in the
hotel. It automatically increased the reputation for The London Marriott hotel because of
innovation & quality of accommodation services. That’s why, it is important to consider
differentiation strategy in business level and achieve desired goals or objectives.
Cost leadership strategy- this kind of strategy will be used by the London Marriott
hotel and gain more preferences, offering brand that are focused towards concept of price
sensitivity. On the other hand, an enterprise is efficient way to handle the cost production and
enable to charge as low costs as compared with other competitors. It is still making to setup a
reasonable profitability. In some situation, The London Marriott hotel has been able to
minimise the operating process through supply chains, reduction of waste and building or
implementing green concepts.
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Justified & recommendation of growth platform, strategies through Ansoff’s product Matrix
By using Ansoff’s Matrix, it has been justified and recommendations to the suitable
strategies in order to improve the performance of The London Marriott hotel.
The Ansoff’s Matrix- It is based on the strategic tool or platform that is developed to
provide the guidance business in terms of decision-making. It offers the best strategic options
to the Marriott hotel such as market development, product development, penetration and
diversification. The London Marriott hotel is focused on the select or choose growth Matrix
and targeting the large number of audience.
The London Marriott hotel has been successful implementing the strategic concept of
growth matrix and identifying the specific need or requirement of enterprise. Most
importantly, the growth decision and direction have been carried for different regions,
analysing internal as well as external factors (Xess, Bhargave and Kumar, 2021). At last, the
company has successful way to made and use of Ansoff’s matrix. It is always supports to be
leading beverage giants at international level.
Market Penetration- This kind of strategy is used by the Marriott hotel that seeks growth or
development of existing services in markets. It depends on the quality of accommodation
services which was handled by enterprise.
Increased the level of production capacity- it allows hotel manager to increase the
capacity of production and reach to the potential client within same marketplace. On the other
hand, The London Marriott hotel also lead to enhance the efficiency, especially for managing
& controlling the prices or costs. While increasing the attractiveness, competitive pricing
concept that are supporting the Marriott hotel to increase sales rate and consumption of
markets.
Increased the level of investment in marketing- The Marriott is always focused on
increasing the investment and performed the activities of promotion. In this way, it engaged
with large population and relevant to its different market groups. With considering a high
marketing investment, The London Marriott hotel is able to increase the market penetration
with existing services.
Enhanced the process of distribution- The London Marriott hotel focuses on exploring
a new & innovation which means that supports to explore a new distribution channels. In this
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way, it has become easily enhancing the strategies that allows the business to find a new
potential client. Therefore, it provide the right direction to business growth opportunity.
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Market development- With considering the market development strategies, The London
Marriott hotel can focus on enhancing the growth of business and support the hotel to
introduce an existing services in the new marketplace.
Research & Development- it is one of the best opportunity to the London Marriott
hotel and investing in research & development. It is the best possible way to find the new
markets and also segmenting the client on the basis service demand (Zhu and Zhang, 2021).
The Research & development should be consider the different kind of market cultures, trends
and behaviour of client. It helps to find the behaviour of client patterns.
International Expansion- the London Marriott hotel will try to expand their business
across the global world. The main aim is to consider the demand of consumers, groups or
teams. It helps to increase the overall share of pie. So, it is an essential aspect to conduct a
proper analysis, and then performed the comparison between strategies and planned to
business expansion.
On the basis of discussion, Ansoff’s Matrix provide the best useful framework for
analysing appropriate strategic options in the hotel. When applied to the Marriott hotel, it has
been shown that market penetration & development would help to increase the level of
market share, profits.
Considering the range of theories, models & concepts in strategic planning
According to the strategy map, it should be consider the visual tool or platform that
helps to design a clear communication in terms of strategic plan. This kind of strategy map
concept can be used by the London Marriott hotel to achieve high level of business goals.
Whenever it uses strategy mapping as consider the important part of balanced scorecard,
offers an excellent way to build a communication and sharing all relevant information or
data.
The London Marriott hotel uses strategy mapping approach in their business:-
It provide the best simple way to clean, visual representation that is easily referred in
proper manner.
It also unified all kind of goals or objectives, which are applied into single based
strategy.
It support every staff members to share a common goals while accomplishing hotel
based tasks, measures in step by step manner.
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According to the basic model, it behave as strategic planning model to deal with
establishing business goals, vision and mission. That’s why, the London Marriott hotel can be
used basic strategic model as planning concept to reach the destination. For example- the
owner of hotel is focused on progress which keep everyone on target, finding the issues as
they can increased.
If in case, The London Marriott hotel will be performed the strategic planning session.
It shows a strategy as needed and gather all relevant information or data. Some kind of few
resources are applied in the hotel and then finding the results of actions. It keep motivate or
inspire the employees to handle the complex business situation or condition.
Strategic management plan
Objective & Priorities
To improve the guests satisfaction by 5% at the London Marriott hotel.
To increase rate of sales by 10%
To attaining 5%-6% and focuses on the client share
Different kind of strategic management concepts are used in terms of business expansion.
it depends on the ability to handle complex strategic priorities and objectives that can easily
assure the level of The Marriott hotel. The company will focus on the differentiation strategy
to stay in the competitive marketplace. By considering the variation, it is an essential aspect
to implement a new approach that helps to assists the market segmentation in proper manner.
On the other hand, the London Marriott hotel is also needed to consider focus strategy
and consider alternative options. It can easily specify the way to find the specific services and
aligned with particular needs (Redjeki, Narimawati and Priadana, 2021). In order to handle
the different problems of price management, it is useful aspect to find the best option in the
market level. Whenever it should be consider the competitive market strategy to enhance the
capability of business.
Environment & competitive analysis
To concern about the strategic & tactical, different kind of data or information applied
in the competitive environment (Redjeki, Narimawati and Priadana, 2021). However, it can
be performed the analysis through pestle framework. It helps to gain relevant data or
information of competitive analysis.
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The UK government has been patronizing the actions of Marriott hotel in proper
manner. During crisis, there are several changes happens and occurred by the political
approach. In some cases, it is able to increase the level of turnover approximately 35-billion.
It is highest rate in the competitive market.
Apart from that, it is able to maintain a high level of relationship with different
parties. It is able to manage and control the efficiency of hotel, implementing legal sides to
gain more information or data.
CONCLUSION
From above discussion, it has concluded that business strategy is a kind of process in
order to support the London Marriott hotel in terms of growth & development. It has been
summarised the different theories, concept and models such as Ansoff’s Matrix, Pestle &
SWOT analysis, Porter generic model and Mckinsey 7s framework. Understanding the
importance of these concepts to examined the overall performance of hotel. On the other
hand, critically interpret information & data which are applying in the environmental level. It
helps to identify the level of competitive analysis to setup a valid strategic direction or path.
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REFERENCES
Book and Journals
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.
Chepkwei, A., 2021. STRATEGY IMPLEMENTATION IN HOSPITALITY INDUSTRY:
GLOBAL PERSPECTIVE. Journal of Strategic Management. 6(1). pp.33-45.
Ebersberger, B., Herstad, S.J. and Nordli, A., 2021. Hospitality innovation strategies:
Robustness analysis of paths to firm performance. Tourism Management. 85.
p.104310.
Elche, D., Martínez-Pérez, Á. and García-Villaverde, P.M., 2021. Pioneering orientation and
the threat of imitation in tourism and hospitality firms: the role of knowledge
strategy. Journal of Hospitality Marketing & Management. 30(8). pp.1005-1034.
Horng, J.S. and et.al., 2021. Entrepreneurial Orientation, Organizational Learning, and
Performance in Hospitality and Tourism Start-ups: The ESCAPE
Perspective. International Journal of Hospitality & Tourism Administration, pp.1-23.
Redjeki, F., Narimawati, U. and Priadana, S., 2021. Marketing Strategies Used by Hospitality
Businesses in Times of Crisis of the COVID-19 Pandemic: Case Study. ENDLESS:
International Journal of Future Studies. 4(1). pp.121-131.
Siti-Nabiha, A.K., Nordin, N. and Poh, B.K., 2021. Social media usage in business decision-
making: the case of Malaysian small hospitality organisations. Asia-Pacific Journal
of Business Administration.
Xess, A., Bhargave, H. and Kumar, P., 2021, August. A study on influence of eco-friendly
technologies in hospitality industry. In Journal of Physics: Conference Series (Vol.
1950, No. 1, p. 012024). IOP Publishing.
Zhu, R. and Zhang, J., 2021. Rebounding through the pandemic: towards the digitized and
digitalized small hospitality business in China. International Journal of
Contemporary Hospitality Management.
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