Hospitality Business Strategy

Hospitality Business
Strategy

INTRODUCTION...............................................................................................................................3
PART A................................................................................................................................................3
PESTLE and SWOT analysis of the organization and an analysis of its capabilities.........................3
Analysis of the competitive environment using Porter’s Five Forces model.....................................7
PART B................................................................................................................................................7
Different types of strategic directions available to the organization..................................................7
Justify and recommend the most appropriate growth platform and strategies....................................8
Strategic Management Plan...............................................................................................................9
CONCLUSION..................................................................................................................................11
REFERENCES..................................................................................................................................12

INTRODUCTION
Business strategy is important part of an organisation because it provide assistance in
accomplishing goals and objectives. Although, business strategy is defined as working plan
which assist in enhancing financial position of company. In simple term it can be said that
business strategy act as an backbone of business firm because it help in making effective
decision related to management (Roma, Panniello and Nigro, 2019). In addition to this, there
are several steps which involved in making effective business strategy such as determining
vision, mission, goals and objectives.
For this report chosen organisation is Rosewood which is part of hospitality industry
founded in 1979 and founder was Caroline Rose Hunt. They are serving at worldwide level
and headquartered at New World Tower 1, 18 Queen’s Road, Hong Kong. Respective report
will going to analyse the impact of macro environment on working of hospitality company
along with there internal environment as well as capabilities. Moreover, by using Porter’s
Five Force model company will analyse competitive environment. Moreover, strategic
management plan will design along with strategies, objectives and tactics.
PART A
PESTLE and SWOT analysis of the organization and an analysis of its capabilities
PESTEL analysis is framework which provide assistance in influencing several macro
environmental factors in relation of business firm. It is an tool which generally used by
company for analyzing impact of external factors on their working within effective manner.
Here, PESTEL stands for political, economic, social, technology, environmental and legal.
Explanation of these in relation of Rosewood Hotel are as follows :-
 Political Factors – The United Kingdom runs under the influence of a parliamentary
system and is considered to be a politically stable country (Walsh and Dodds, 2017).
Thus, political factor don’t have any negative impact on working of Rosewood Hotel
in UK.
 Economic Factors – The UK is economically strong country in comparison of others
as compared to other countries and has a high GDP as well as large population
allowing even small businesses to be successful.

 Social Factors – There are several social factors which result in negative impact on
working of Rosewood Hotel such as increasing dependency ratio, education costs and
many more.
 Technological Factors – Technology advancement is taking place day by day which
provide assistance to Rosewood Hotel in conducting their activities through latest
technology in effective manner for gaining better outcomes.
 Legal Factors – It is important for business firm to follow legal factors in proper
manner so they will be able to conduct operations in proper manner (Aithal and
Aithal, 2016). Such as companies who are operating in the UK are expected to follow
the Employment Act 2010 and several other legislations.
 Environmental Factors – There are several environmental factors such as pollution
and many other issues which come along and result in negative impact on working of
company.
SWOT analysis
It is an strategic tool which an business firm use for identifying their strength,
weakness, opportunities and threats. SWOT include both internal and external factors such as
strength and weakness are internal whereas, opportunity and threat are external factor. SWOT
analysis of Rosewood Hotel are as follows :-
Strength Weakness
 Rosewood is luxury hotel as well as
have 15 hotels at global level.
 Respective Hotel won the restaurant
prize of Hotel Cateys 2018: Hotel
Restaurant Team of the year –
Holborn Dining Room, Rosewood
London.
 Central reservation system is also
strength of Rosewood Hotel because
with the assistance of this it can
connect to the global Rosewood
Group hotel to known about there
hotel guest preferences previously.
 On eof the major weakness is that
Rosewood London have low brand
awareness within competitive luxury
hotel industry.
 Hotel is not focusing on advertising
as well as they are also focusing on
individual brand strategy.
 In comparison of same level
competitors respective company
have low cross-property usage.