Analysis of External and Internal Environment for Strategic Planning in the Hospitality Business

Hospitality Business
Strategy

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Analysis of the influence and impact of external environment on the organization and its strategies.3
TASK 2..........................................................................................................................................................6
P2 Analyzing internal capabilities and environment of the company using different framework...........6
TASK 3..........................................................................................................................................................8
P3 Application of Porter’s five forces to evaluate the competitive environment of company..................8
TASK 4..........................................................................................................................................................9
P4 Application of concepts, models and theories to devise the strategic planning for the company........9
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13

INTRODUCTION
The business strategy is referred to as the long term plan that is adopted by the company
so that it battles the competition. It is an integral aspect of corporation when it wants to grow and
develop in a competitive environment. The hospital sector is one of the most growing industry
which consist of end number of competitors. It is important for corporations to plan their strategy
in such a manner that it can contribute in taking the competitive edge over others. It is aimed to
achieve the pre- determined objectives of the firm. It helps in making the decisions and in the
allocation of resources in order to achieve the business objectives (Yilmaz and Flouris, 2019).
The organization chosen for this report is Rosewood London which is the luxury five star Hotel
situated in London, England. It has approximately 262 rooms, 44 suites and 3 restaurants. This
report shall cover the external environment influence and analysis using different models,
internal environment and capabilities and the Porter’s five forces. Further it will include strategic
planning using different theories and framework.
TASK 1
P1 Analysis of the influence and impact of external environment on the organization and its
strategies.
The macro environment is referred to as the condition in which the economy exists.
There is a very strong influence of the macro environment on the decision making and working
of the business. In order to analyze the influence and impact of external environment, there are
various theories and models that can be used by Rosewood London. These are discussed below-
PESTLE Analysis
It is a tool which is used to identify the macro environmental factors that can affect the
functioning of the business (Raharja, 2017). In context to the Rosewood London, it is discussed
below-
 Political- It involves the political scenario of the economy where the business operates.
The Rosewood London operates in London UK which as a stable political background.

The pandemic of covid-19 has resulted in travel ban which affect the hotel’s revenue
generation.
 Economic- It involves the economic factors such as inflation rate, foreign exchange
currency, etc. In context to the Rosewood London, the hotel targets the wealthy
customers as it offers luxury services to the customers. It is a hotel which is only situated
in the London only so the hotel can take the opportunity of expansion as banks are
offering loans at low interest rates to uplift the economy due to covid-19 pandemic.
 Social- It is concerned with the socio-cultural factors such as demand, purchasing habits,
purchasing power, etc. In relation to The Rosewood London, the travelling industry has
changed the functioning and attracted people so the changing in spending habit of the
people can provide more business to the hotel.
 Environmental- It is concerned with the business functions that may affect the ecology
of the country. The Rosewood London provides the services to the customers, keeping in
mind the environment. It complies with every laws relating to environment so that there
is no legal consequences being faced by it.
 Legal- It involves complying with the legislations so that there is no hardship faced by
the company. The Rosewood London closely complies with every law and keeps an eye
on it so that of there is any amendment in the legislation; it can immediately comply with
it in order to prevent any legal consequences.
 Technological- It is concerned with technological up-gradation and advancement which
is deployed in the business. The Rosewood London has deployed technology in its
services so that the customers are served with enhanced level of service. It has services
such as digital check in and check out, digital payment, etc. (Agwu, 2018)
Ans off matrix
It is the model which comprise of four different strategies which can be used by the
business with an aim to grow and expand in the market. In context to Hotel Rosewood London, it
is discussed below-
 Product development- It is a strategy which focuses on introducing any new offering in
the market which is the existing market of the company so that it can serve the customers