Hospitality Business Strategy

HOSPITALITY BUSINESS
STARTEGY
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Table of Contents
INTRODUCTION...........................................................................................................................2
PART A...........................................................................................................................................2
Pestle and SWOT analysis of chosen hotel and an analysis of its capabilities.........2
Competitive environment analysis by using Porter’s five forces model......................6
PART B...........................................................................................................................................8
Different kinds of strategic directions accessible to hotel..............................................8
Strategic management plan with objectives, tactics and methods............................10
Suggestions and justification of the most suitable growth strategies and platform.12
CONCLUSION.............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
A business tactic refers to decisions and actions that an organization and its
management take to reach their set objectives and aims and to be competitive in
specific sector. It defines what a venture needs to do to achieve goals, which can aid
guide decision making procedure for resource allocation and recruiting. The strategy of
business is especially developed in order to gain competitive benefits within target
market place while managing functions and operations effectively. Within hospitality
industry, organizations create and develop the best business strategies which are quite
beneficial and helpful for them in context of increasing productivity and profit margin.
The current assignment will base on London Hilton on Park Lane, which falls under list
of leading and one of the biggest hotels in London. This study will explain external and
internal environment analysis by utilizing SWOT and PESTEL framework. Furthermore,
this report will evaluate varied types of strategic directions, justify and suggest the best
growth platforms & tactics and at last clarify strategic management plan.
PART A
Pestle and SWOT analysis of chosen hotel and an analysis of its capabilities
PESTLE analysis-
It is a strategic management framework especially utilized to determine, analyse,
monitor and manage key external factors that can have a major affect on current
business strategies and London Hilton on Park lane capabilities in negative or may be
positive manner.
Political factor-
It relates to how government intervenes in UK economy, specially political
elements have areas including trade restrictions, tax policy, political stability and traffic.
Tax policy is one of the factors that affect on London Hilton on Park Lane capabilities in
positive manner, because government reform taxation policy in which hotel owner pay
lower taxes, it allow hotel to work effectively and improve their business activities as a
whole (Leutwiler-Lee, 2018). High grade and Luxury hotels in London like Hilton can put
saved towards providing more accommodations services for visitors. With positive
impact of factor, organization can perform much than its capability.
Economic factor-
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It is set of fundamental data that impact a company or an investment value. Key
economic components include interest rate, unemployment rate, changes in labour
market, income rate and economic growth. It can be said that unemployment rate in one
of the economic factors that put positive impact on capabilities and abilities of London
Hilton on park lane in term of increasing productivity level even better (Zhang, 2018).
For instance, government put a lot of pressure on hospitality industry companies to hire
local people; it gives HRM the best chance to select the most talent and skilled
applicants who can enhance abilities of business by performing much harder.
Social factor-
It represents another essential set of influences on guest behaviour. Especially,
these are the influences of groups and people influencing one another through
subculture and culture, reference groups, consumer’s preferences, family and social
class. London Hilton on Park Lane is famous for food and accommodation services,
F&B department are able to provide tasty food items to customers. Due to lifestyle
changes, in recent time visitors like to stay in hotel where food products cooked by
using organic things, it may affect organization capability in negative manner because
food and beverage section feel pressure to purchase and prepare meal in urgent
requirements which is not possible some time.
Technological factor-
Advancement of technologies and development of digital marketing platforms put
influence on hotel abilities positively as it strengthen brand image in marketplace or all
over the world. With digital marketing tools, marketing department in hotel can promote
business services, interior and inclusive culture at global level that help to gain attention
of new guest towards visiting hotel and enjoy holidays with family members and friends.
They can advertise services and accommodations via using Facebook, Twitter,
YouTube, etc. Hubspot, Yoast and other tools are accessible in the business world
including above that marketing manager can use for commercial purpose.
Legal factor-
Changes in United Kingdom regulations and rules related to health & safety
affect business capabilities of London Hilton on park lane in positive manner. It drives
hotel management, leaders and managers to improve their existing health and safety
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