Hospitality Business Strategy

Hospitality Business Strategy

Table of Contents
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
P1 Impact and influence of macroenvironment on hospitality industry......................................1
P2 Demonstrate the internal capabilities of a hospitality industry..............................................3
P3 Elaborate Porter’s five force model........................................................................................6
P4 Produce a strategic management plan and determine models and theories within hospitality
sector............................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Business strategy is defined as the set of action that provide assistance to the firm in
accomplishment of business objectives in an effective and efficient manner (Amran and et.al.,
2016). In other words, this help the manager to make an appropriate planning by deciding the
course of action so as to maintain proper hierarchy and coordination in a workplace. This report
is based on InterContinental Hotel Group that is headquartered in UK. It is most popular
hospitality industry that renders quality offerings among their customers around the globe. This
report comprises of PESTLE analysis which has great impact in business activities and also it
covers SWOT and VRIO analysis that determine the strategic capabilities of a firm. This report
also covers Porter’s model which assist the firm to gain significant position. At last, this report
includes strategic management plan that cover strategy, vision and mission of a firm which
enhance the growth in a market.
P1 Impact and influence of macroenvironment on hospitality industry
Macro environment is understood as the aggregates of whole economy that cover various
aspects such as GDP, national income, per capita income, demand and supply and many more as
it has greater impact on the economic conditions of the country (Ansoff and et.al., 2018). The
manager of InterContinental Hotel Group use PESTLE analysis to scan various external factors
which assist in forming a strategy and its implementation and determine the several
modifications that are taking place as it affects the business activities. It also provides assistance
in deciding alternative course of action so as to gain strong rivalry edge across the globe. In the
context of InterContinental Hotel Group, the same id presented as follows:
Political factor: This aspect includes various rules and regulation of government that
affect the business cycle of the country. UK has a multi-party system that consist of two parties
namely labour and conservative party and it has the stable political system in the world (Bratton
and Watson, 2018). The exit of Britain from European Union, namely Brexit has affected the
political condition and create a negative impact on businesses. Due to this, the sales operations
and productivity of the InterContinental Hotel Group declines and lead to delay in decisions over
a marketplace. But at the same time, the constant ruling party since a long time does not allow
the concerned firm to changes its policies and procedures in a quicker manner and there is lack
of interference of government.
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Economic factor: This includes the economic conditions, stability, employment, level of
competition and so on. UK is regarded as the fifth largest country in the world in terms of GDP
which is one of the beneficial aspects (Zhao and et.al., 2016). The promotion Foreign Direct
Investment allows the InterContinental Hotel Group to generate greater return on investment and
attract investment opportunities from different parts of the countries. This maximise the revenue
and improves the overall productivity. The vote of Brexit and Corona Virus has created chaos
and result in negative consequences that affect the hospitality industry. The sales and
profitability of concerned firm minimised and affect the overall operations of a company.
Social factor: These includes the emerging lifestyles and changes in fashions and
preferences of customers as in a modern era, they are conscious of quality merchandise and price
are considered as secondary. The population in UK are highly standardised and prefer high class
living as well as they are educated. By looking awareness towards these, the manager of
InterContinental Hotel Group provides greater quality of product and deliver fast services and
also, they maintain proper cleanliness and hygiene that fascinates the customers at an
international level.
Technological factor: Due to globalisation, there is fast changes in technology as it
includes various elements such as research and development, technical awareness and so on. UK
has advanced technology in the world which is considered as the developed country (Durán,
Córdova and Palominos, 2016). The manager of InterContinental Hotel Group adopts highly
sophisticated and advanced machines that aids in conducting fast recording of transactions that
ensure fairness aa well as transparency in a corporation. In a digital economy, it also uses online
platforms and its respective websites for promotions and render relevant information like
booking facilities, rooms and many more that provide greater ease of convenience among the
group of individuals from different locations.
Legal factor: This is another important element of PESTLE analysis which comprises
factors such as trademarks, patent, copyright and discrimination laws that has impact on
business. It is necessary to provide intellectual property to a business in order to develop trust
and goodwill of business. The manager of InterContinental Hotel Group cover abides all rules
and regulations and follows proper code of conduct to facilitate smooth flow of activities within
the confines of hospitality industry. The senior authority of respective firm implements health
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