Hospitality Business Strategy

This report covers the includes of macro environmental elements, internal environment capabilities and evaluation of competitive forces for Rosewood London. It also includes application of the Ansoff's matrix, explanation of the strategies planning procedure and more.

Hospitality Business
Strategy

Contents
INTRODUCTION.............................................................................................................................3
Influence of the macro environment on chosen organization by applying PESTLE a nd SWOT
analysis...........................................................................................................................................3
Critically analyse hospitality macro environment to ascertain and inform strategic management
decisions (Merit Criterion).............................................................................................................5
Analyse internal environment and capabilities of chosen hospitality organisation by using
appropriate frameworks.................................................................................................................5
Critically evaluate internal environment to assess the strengths and weaknesses of
organization's internal capabilities, structure and skill set. (Merit Criterion)................................6
Applying the Porter’s Five Forces model, evaluate competitive forces of chosen market
industry for the hospitality organization........................................................................................7
Devise the appropriate strategies to improve the competitive edge and market position on the
basis of outcomes. (Merit Criterion)..............................................................................................8
Justify and recommend most appropriate growth platform and strategies through application of
Ansoff’s Product/Market Growth Matrix......................................................................................9
Applying a range of the theories, concepts and models, interpret and devise strategic planning
for a given hospitality organisation.Explanation of the business, corporate, and tactical strategic
priorities and objectives...............................................................................................................10
Produce strategic management plan which has tangible and tactical strategic priorities and
objectives (Merit criterion)..........................................................................................................10
Critique and interpret information and data applying environmental and competitive analysis to
produce a set of the valid strategic directions, objectives and tactical actions for the hospitality
organisation (Distinction criterion)..............................................................................................11
CONCLUSION................................................................................................................................11
REFERENCES................................................................................................................................13

INTRODUCTION
Success of a business is determined by the strategy's effectiveness followed by an
organization. Strategies is all about how a business plan to compete within market and how it
intend to grow the business profitability. Business across the globe sells goods or services within
competitive market which require them to enhance a value for the owner and other shareholder
with the purpose to secure their future existence. It calls for a plan which aid the managers guide
their decision and utilize the resources in more effective way to attain the key objectives or goals.
This plan is knows as business strategy (Abdullah, Carr and Lee, 2022). In this report and
Rosewood London ( hospitality organization) is selected. Based on respective organization, this
report will cover the includes of macro environmental elements, internal environment capabilities
and evaluation of competitive forces. There will be a discussion also the strategic direction
available an organization including porter's generic strategies. Along with this this report will also
include application of the Ansoff's matrix, explanation of the strategies planning procedure and so
on.
Influence of the macro environment on chosen organization by applying PESTLE a nd SWOT
analysis
This framework is used by the business to analyse key factors impacting the organisations
from outside. It is a useful tool to understand big picture of environment in which business is
operation. In relation to the Rosewood London, these elements are discussed below:
 Political factors- It include potential and current influence from the political pressure. It
cover bureaucracy, regulations, trade control, tax policy and many more. According to the
Chekitan S. Dev, democratic institutions should be strengthened further so that
organisation like Rosewood London can thrive within an open, stable and transparent
political environment.
 Economic factors- It refer to local, national and world economic influence on business
organization. It include exchange rate, growth rate, unemployment trend and many more.
Rosewood London should consider the fact that at a deficit level of nation in emerging
economy may lead to a rampant inflation and other serious risk related to the currency
depreciation.

 Social- It define the ways in which the changes within society impact the business. It
cover attitude towards product quality, heal consciousness, lifestyle and many more.
Rosewood London need to analyze both- what is power structure in society and how it
influence the demand within economy (Elbanna and et. al., 2022). Respective organization
also need to analyze attitude towards the authority before introducing any marketing
campaign for company's product or services.
 Technological factors- It state that how emerging and new technological an organization.
This element include rate of the technological changes, basis infrastructure level and many
more.. Rosewood London has figure out level of the technology acceptance in society
before introducing its new product. By investing in the technology development it can
build a self sustaining ecosystem which drive the innovation.
 Legal factors- It define that how national, local and global legislation impact an
organization. This element include discrimination law, employment law, anti trust law and
other etc. It is responsibility of Rosewood London that it assess the protection level which
intellectual property rights get under the country's legal system.
 Environmental factors- Role of the environment standard enforcement agencies is very
critical in the safeguarding norms (Xu and et. al., 2022).But frequently in emerging nations
such agencies delay the procedure as a tactics to extract the bribes. In relation to Rosewood
London, it should be alert of presence of these kind of activity in nations.
SWOT Analysis
Strength Weakness
 Rosewood London has a good reputed
image as it is an iconic luxury hotel
which has its location at an attractive
place
 Majority of brand under Rosewood
London have a great index that means it
generate more profit..
 It has a flexibility to capture the various
local culture, that makes it is unique.
 Customer are less aware about this hotel
due to muted and unmentioned in the
advertising.
 It emphasis on its individual brand
strategy which customer can not found a
connection among the Rosewood
properties.
 When customer seek a Rosewood
property experience or product, then

more and more customer identifying
other string hotel brand.
Opportunities Threats
 Adopting a frequent stay program is a
big opportunities for respective hotel to
increase repeat business.
 It has great potential to enhance its cross
property usage.
 Corporate branding approach let the
customer to know a connection among
every property of Rosewood London.
 Other internal famous or reputed hotel
create a stiff competition for Rosewood
London.
 There is a risk of implementation of new
branding strategies that could eliminate
uniqueness of respective hotel.
Critically analyse hospitality macro environment to ascertain and inform strategic management
decisions (Merit Criterion)
Macro-environment analysis is considered as a part of the strategic management in various
organisations and it involve identification and analysation of potential opportunities or risk which
arise in macro environment (Farrell, 2022). Main purpose of the macro-environment is to provide
management with an accurate information to assist them in making operational decision. Analysis
of macro environment and related work is typically performed by the business analysts then they
make recommendation based on identified research into the environmental forces.
Analyse internal environment and capabilities of chosen hospitality organisation by using
appropriate frameworks
McKinsey’s 7s Framework.
 Strategy- It is a plan developed by organisation to attain a sustained competitive benefits
and successfully compete within market. Rosewood London should formulate flexible

strategies that enable them to address the changing conditions in market and customer
needs.
 Structure- It is mainly concerned that how an organisation is structured (Liu-Lastres,
2022). In allow the Rosewood London to make the changes when needs in structure. It
include things like total number of the employees, management structure, several divisions
and locations.
 System- This analysis help the Rosewood London to understand that what system are in
place for managing the output, project or performance. It determine whether a company's
existing system or process are working expeditiously or creating problems.
 Staff- It is concerned with what kind and how many workers an organisation need. In
context of Rosewood London, company is concerned with how employees ill be recruited,
trained, encouraged and rewarded.
 Skills- It form the competencies and capabilities of a business which deals their workers to
attain the goals. In this, Rosewood London deal with how its employees perform their
respective job role and how they might be trained to do their task effectively.
 Style- It refers to the organizational management style. It is an impact over everything
within organization. In relation to Rosewood London, it has adopted the democratic
leadership style to manage its employees.
 Shared values- Standard and norms have been revised by Rosewood London to include
the values like innovation, integrity, client centricity, discipline and compliance that laid
down its foundation.
Critically evaluate internal environment to assess the strengths and weaknesses of organization's
internal capabilities, structure and skill set. (Merit Criterion)
By the SWOT analysis framework, it is analyzed that Rosewood London is a well reputed
hotel but people are less aware about it. It has an opportunity to expand it market in more nations.
Respective hotel have idea to make its hotel unique from other that help it to differentiate it from
others. When it comes about the internal capabilities, then it is identified that Rosewood London
has adopted the democratic leadership style in which its employees are free to take the decision for
their own work. It make enable the organization to attain their goals efficiently (Mejia and et. al.,
2022).

Applying the Porter’s Five Forces model, evaluate competitive forces of chosen market industry
for the hospitality organization.
This model work by looking at strength of the five significant forces that impact
competition. In relation to Rosewood London, these five forces are mentioned below:
 Threat of the new entrants- It is dependent on ability of a new business for entering the
industry. In case of the Rosewood London, threat of such force is low as to establish a
business in respective industry is not so easy as it require much amount to offer such
services. Rosewood London is a well known hotel so it is difficult for new entrant to
compete with it.
 Rivalry among the existing competitors- It refer to an intensity of the competition
among all the existing competitors within market. In context of Rosewood London, threat
of this force moderate as respective hotel is enough able to compete with competition.
Rosewood London is an old and well know organization that make it very powerful.
 Bargaining power of suppliers- It refers to relative strength of organizational supplier's
position. In context of Rosewood London, it has diverse suppliers due to which power of
supplier is low because of lack of the uniqueness of its product and services supplied.
 Bargaining power of buyers- It refer to how much control the customers have to drive
down the product price. In relation to Rosewood London, bargaining power of customers
is analyzed as high because there are several hospitality organization that offer same
services at less price. As customer has option to shift there in case if respective hotel
charge high price (Mogaji and et. al., 2022).
 Threat of the substituted products- It means that how easily a company's customer can
switch to the others product or service of its competitors. In context of Rosewood London,
threat of the substitute product is high as mostly hotel are able to offer similar services. So
Rosewood London need to bring uniqueness in its services in order to eliminate this threat.

Devise the appropriate strategies to improve the competitive edge and market position on the basis
of outcomes. (Merit Criterion)
 Innovative strategy- Organisation may move ahead of competition by doing the things in
different and innovative way. Rosewood London can create few innovative way in order to
to attain the competitive edge by adding a value proposition in its services.
 Operational efficiency strategy- When organization do what they do well, they gain the
competitive benefits over those doing it the slower and longer ways. It help Rosewood
London to jumped into overnight by doing well. It create an excellent market position of
the organization.
 Technological bases strategy- By investing in technological department Rosewood
London can improve its services. It its workers embrace latest technology then it will
increase the competitive edge over those who resist the new methods (Mun, Park and
Woo, 2022).
Porters generic strategy
Organisation adopt these strategy ion order to gain the competitive benefits. These
strategies are related to an extent to which scope of a business activities are broad or narrows
extent to which a business seek to differentiate its product. In relation to Rosewood London, these
three strategies are discussed below:
 Cost leadership strategy- This term is used when an organization projects itself as a
cheapest provider or manufacturer of a specific services or product within industry. In
relation to Rosewood London, respective company can adopt this strategy with the
purpose to become a lowest cost producer as compared to its competitors. But this strategy
may impact the Rosewood London as respective hotel is a well branded organization of it
will adopt this strategy then it can lost it value.
 Differentiation- This approach is adopt by the companies to provide the customers with
something different, unique and distinct from product their competitors may offer within

market. In relation to Rosewood London, if it adopt differentiation strategy provide the
services which are unique from other rivals then it can generate maximum revenue and
their product get specialisation in the industry. They can attract consumers towards their
product, which will increase their loyal customer base.
 Focus strategies- In this specific niche market are concentrated (Piramanayagam and Seal,
2022). For this Rosewood London need to better understand the dynamics of market that
tend to build a strong brand loyalty among its customers fro contributing to minimizing the
cost and enhancing differentiation.
Justify and recommend most appropriate growth platform and strategies through application of
Ansoff’s Product/Market Growth Matrix.
This strategic planning framework helps the organisation in developing and deciding the
strategies for the business growth. In relation to Rosewood London, these growth strategies are
mentioned below:
 Market development- It focuses on entering into new market with the existing product. In
relation to Rosewood London, it can develop it market by expanding its business at more
location. It can offer rooms with additional services tan the standard rooms to gain benefit
of this strategy (Presbury and Ho, 2022).
 Product development- This strategy mainly focuses on launching or introducing a new
product and services to existing market. In context of Rosewood London, new product or
service can be in the form of new room layout, new services, addition of the luxury and
low cost room. This strategy will increase customer base of respective company.
 Market penetration- It focus on increasing the sale of company's existing produce or
services to existing market (Ramaano, 2022). In this Rosewood London can offer discount
during specific time of year such as Christmas and New year to boost their sales.
 Diversification- In this, it focuses on entering into new market with a new product and
service. In context of Rosewood London, in this strategy, respective hotel can offer the
transport services. It can also diversify into the further related industries including lodges,
theme parks, resort and many more. But it may be highly risky as company has less
experience working new market with new product.

Form the above analysis, it is recommended to Rosewood London that it should adopt the market
development growth strategy as it help the respective organization to choose gain a new customer
base, increased revenue and organizational growth. If company get success in the implementation
of this growth strategy then it will lead to competitive benefits for respective hotel.
Applying a range of the theories, concepts and models, interpret and devise strategic planning for
a given hospitality organisation.Explanation of the business, corporate, and tactical strategic
priorities and objectives.
There are various model that will be considered as helpful when it comes to interpret any strategic
planning for the organization. These models are mentioned below:
SWOT analysis
It is most helpful method to identify the company’s strength, weakness, opportunities
and threats. More the Rosewood London become more aware about their current position, more it
will be helpful in making the organization overcome from those issues or difficulties as well
(Salari and Murphy, 2022).
Porter’s five forces
It is considered as an impactful model that helps the company in evaluating the external
business environment of Rosewood London. It help in understanding the areas in which company
need to work on and aid in developing more effective strategic planning for organization to
overcome this condition s well (Sousa and et. al., 2022).
Produce strategic management plan which has tangible and tactical strategic priorities and
objectives (Merit criterion)
Company’s overview
Rosewood London is a luxury five start hotel within London. It has situated at 252 High
Holborn in Covent Garden neighbourhood of West End. T was designed by the C. Newman and
build during 1912 to 1919. It offer various services to its guest with the purpose to provide a great
customer satisfactions.

Mission statement- It is committed to the relationship hospitality a belief that the true hospitality
spring from nurturing and building of lasting and strong relationship with the fellow guest,
partners and other communities.
Vision statement- Its vision is to be an ultimate leader in the luxury lifestyle which create desire
and influence everyone’s lives.
Priority and objectives
 Increasing the customer satisfaction by 12%.
 Attaining near about 5% more customer share.
 Enhancing an amount of the sales by 30%
Monitoring- In Rosewood London, it uses the benchmarking in order to monitor their progress.
Respective organization undertakes this tool as it allow them not merely monitor their hotel’s own
performance bout also help them in understanding that how it compares to market (Vrondou,
2022).
Critique and interpret information and data applying environmental and competitive analysis to
produce a set of the valid strategic directions, objectives and tactical actions for the
hospitality organisation (Distinction criterion)
To make more effective tactical and strategic action, different kinds of the information and data
can be applied in environment and competitive analysis. Nevertheless, for Rosewood London,
environmental analysis can be done by using PESTEL analysis. To gain information about
competitive analysis, the porter five forces examination can be more effective for respective
company (Wong, Kim and Lee, 2022). Rosewood London is able to maintain a strong
relationship with social parties in system. They are enough enable to manage technological
understanding and organizational efficiency can be assured very easily.
CONCLUSION
From the above report it is concluded that hospitality industry is characterize by stiff
competition that is main cause responsible for the effective strategic direction or planning of
Rosewood London. PESTLE analysis has concluded that the environmental and technological

element are to be considered by organization as a pace of environment and technological
concerned are on rise. Considering opportunities to gain customer base and market share,
differentiation strategy is suitable for the organizations. When it come the growth strategy, then it
is suggested that market development is more appropriate strategy for respective organization as it
will make the people aware about its presence and enable the company to expand its business also
efficiently

REFERENCES
Books and Journals
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US restaurants: A consumer perspective in the quasi-post-pandemic context.
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Mun, S.G., Park, E.O. and Woo, L., 2022. Strategic target customers of food and beverage
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Piramanayagam, S. and Seal, P.P., 2022. The Language of Luxury: Decoding the Luxury Hotel
Brand's Marketing Communication. In The Emerald Handbook of Luxury Management
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Presbury, R. and Ho, W., 2022. Strike While the Iron Is Hot: A Case of Market Opportunity for
the Sydney Conference and Training Centre. In Case Based Research in Tourism,
Travel, Hospitality and Events (pp. 295-318). Springer, Singapore.
Ramaano, A.I., 2022. Musina Municipality tourism management and strategies: a sustainable-eco-
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Sousa, A. and et. al., 2022. Smart and Sustainable Tourism Destinations: A Bibliometric Analysis.
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Vrondou, O., 2022. Sport Venues Evolving to Tourism and Hospitality Giants? Proof of Dynamic
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Wong, A.K.F., Kim, S. and Lee, S., 2022. The evolution, progress, and the future of corporate
social responsibility: Comprehensive review of hospitality and tourism articles.
International Journal of Hospitality & Tourism Administration, 23(1), pp.1-33.
Xu, J. and et. al., 2022. Hospitality and Tourism Higher Education in the Post-COVID Era: Is It
Time to Change?. Journal of Hospitality & Tourism Education, pp.1-13.