Analyzing the Macro Environment and Internal Capabilities of Wyndham Hotels & Resorts

This report analyzes the impacts of the macro environment on Wyndham Hotels & Resorts and evaluates its internal capabilities. It also applies Porter's five forces model to assess the competitive force in the market sector. The report further discusses the development of strategic planning for the company.

Hospitality Business
Strategy

Table of Content
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Applying appropriate frameworks, analyse the impacts and influence of the macro
environment on Wyndham Hotels & Resorts and its strategies.............................................3
TASK 2............................................................................................................................................7
P2. Analyse the internal environment and capabilities of Wyndham Hotels & Resorts using
appropriate frameworks..........................................................................................................7
TASK 3..........................................................................................................................................11
P3. Apply Porter’s five forces model, evaluate the competitive force of given market sector
for Wyndham Hotels & Resorts...........................................................................................11
TASK 4..........................................................................................................................................15
P4. Apply range of theories, concepts and models, interpret and device strategic planning for
Wyndham Hotels & Resorts.................................................................................................15
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business strategy is determined as avital approach for any organisation seeking to grow
and expand its business in a strategic manner. In context of hospitality business strategy remains
the same but the actions and activities conducted by the organisations related with the expansion
of their hospitality service providing operations and offerings (Pappas and Brown, 2020). For the
present report a chosen organisation is Wyndham Hotels & Resorts Hotel company based in New
Jersey United States founded in 1981 and headquartered in the United States. The company is
determined as the largest hotel franchisor in the world with having its presence in around 9,280
locations of the world. The present report of business strategy will be determined in several
aspects beginning with identifying the Macro environment of the resorts and studying the
internal capabilities. Moving along competitive environment is also examined of Wyndham
Hotels & Resorts and appropriate growth and expansion strategy is developed at the end.
TASK 1
P1. Applying appropriate frameworks, analyse the impacts and influence of the macro
environment on Wyndham Hotels & Resorts and its strategies.
DEFINITION AND MEANING OF STRATEGY AND ROLE OF STRATEGY TO
ACHIEVE BUSINESS OBJECTIVES AND GOALS
Definition and meaning of strategy:
Strategy is defined as a plan of action that is developed by the management of an
organisation for achieving a long-term agenda to attain the overall objectives of the company.
Strategy is also determined as a art of planning and directing the overall operations of a entity
towards a respective movement as per the given situation. Strategy development plays a very
important role in a competitive and rapidly growing environment for businesses to take well
planned and systematic steps towards their success and attainment of different goals(Baynova,
2020).
INTRODUCTION TO COMPANY

Figure 1: Wyndham Hotels & Resorts, 2020
Missions of Wyndham Hotels & Resorts:
The mission of Wyndham Hotels & Resorts is to be available for their customers
everywhere. The company states that “We make hotel travel possible for everyone, whenever
people go we will be available to welcome them.
Visions of Wyndham Hotels & Resorts:
The vision statement of Wyndham Hotels & Resorts States about their unmatchable
portfolio of iconic Hotel brands delivering the best experiences to everyday travellers wherever
they go in any part of the world.
Objectives of Wyndham Hotels & Resorts:
 To be accessible to everyone and everywhere in the world.
 To become capture the attention of all segments of customers with different expectations
and budgets.
 To everyone under one brand name of Wyndham Hotels & Resorts.
ANALYTICAL FRAMEWORKS OF THE MACRO ENVIRONMENT
Stakeholders Analysis:
Stakeholders of an organisation are considered as key aspirants holding enough power
and interest in the business. Wyndham Hotels & Resorts is a huge brand with various

stakeholders affecting the decisions of the company. The stakeholder analysis is conducted with
the help of power interest grid which is as follows:
Figure 2: Stakeholder Analysis, 2021
● High power, High interest- These are those holding high interest in decision making of
the company with huge power over influencing them. The customers of Wyndham Hotels
& Resorts exist in this quadrant of the grid as they have enough power to influence the
decisions of company and also interest in those decisions (Ņikadimovs and Ivanchenko,
2020).
● High power, Low interest- The stakeholders of Wyndham Hotels & Resorts stating in
this quadrant are the government to whom the company do not need to keep informed but
plays a very important role in decision making and strategic movements of the entity.
● Low power, High interest- Employees of Wyndham Hotels & Resorts are placed in this
quadrant who have very less power over the strategic decision making of the brand but
holds very high interest.

● Low power, Low interest- The external parties like different suppliers of raw material
required in the hotel lies in the quadrant having very low power and interest in strategic
decisions of the company and need not to be informed every time.
PESTLE Analysis:
Figure 3: PESTLE - Macro Environmental Analysis, 2020
● Political- The current BREXIT took place in the United Kingdom is a huge political
barrier for Wyndham Hotels & Resorts to run their operations in Britain as efficiently and
effectively because of regular fluctuations taking place in the laws and policies.
● Economical- The current COVID-19 pandemic have resulted to be a huge economical
setback for every industry in the world and specifically for the hospitality sector as
people are not seeking to travel from their homes to other places in concern with their
safety and security.
● Social- The social aspects are also imposing unfavourable impacts over hospitality sector
as now a days people are not moving from their homes and travelling from one place to

another can bring a huge risk for them over their lives. Therefore social factors are also
not in favour of the hotel industry which includes Wyndham Hotels & Resorts (Lin and
Ottenbacher, 2020).
● Technological- The technological aspect and development over the past decade have
brought a huge positive impact over the hospitality industry. Wyndham Hotels & Resorts
made use of different technological resources to stay in touch with their customers in
current pandemic in order to to provide a personalized approach to them and to make
them feel safe.
● Legal- The regular changes and modification taking place in different legal policies such
as taxes and new legal guidelines being introduced every now and then due to the
pandemic have caused a huge Chaos and effect several decisions of hotels and hospitality
sector.
● Environmental- This factor has a positive impact over the brand as it enables them to to
gain higher Goodwill in the market by using appropriate CSR and environmental friendly
activities which attract more and more customers with value and loyalty.
TASK 2
P2. Analyse the internal environment and capabilities of Wyndham Hotels & Resorts using
appropriate frameworks.
ORGANISATIONAL INTERNAL ENVIRONMENT
VRIO Analysis:
This is an analytical and brilliant technique for Wyndham Hotels & Resorts in order to
evaluate company’s resources and identify the competitive advantage.

Figure 4: VRIO: From Firm Resources to Competitive Advantage, 2021
VRIO is an acronym stands for valuable, rare, inimitable and organised. The VRIO
analysis of Wyndham Hotels & Resorts is as follows:
RESOURCES VALUABLE RARE INIMITABLE ORGANISED
Customer base Customer base * * *
Innovative
packages
Innovative
packages
Innovative
packages
* *
Infrastructure Infrastructure Infrastructure *
Human resource Human resource Human resource Human resource Human resource
● Valuable- These are those resources which bring a unique value towards the entity.
o Customer Base- The consumers of Wyndham Hotels & Resorts loyal to the brand
providing them regular revenues by using the services provided to them.
o Innovative packages- These packages enables a brand to keep their popularity in
market maintained and also help in retaining the customer base.

o Infrastructure- The Wyndham Hotels & Resorts believes in offering a unique and
valuable experience to its customers and infrastructure of their hotels plays a very
important role in it.
o Human resource- The employees of a hospitality organisation is referred as a life
blood of the company and they are a valuable resource for Wyndham Hotels &
Resorts as well (Park and Wiegerink, 2020).
● Rare- The sources which are limited and share are determined here.
o Innovative packages- Wyndham Hotels & Resorts make sure to provide a
personalized experience to its customers by providing them personalised
innovative packages.
o Infrastructure- Through infrastructure the Wyndham Hotels & Resorts makes
their presence unique in the market for all becoming a huge competitor.
o Human resource- The people associated with Wyndham Hotels & Resorts brand
are highly rare as every individual is different providing unique value to their
organisations.
● Inimitable-
o Infrastructure- Wyndham Hotels & Resorts always brings uniqueness in their
infrastructure which makes it very difficult for competitors to imitate.
o Human resource- People of an organisation have certain skills which are
inimitable for other businesses making them unique with a unique value.
● Organised-
o Human Resource- The manpower of Wyndham Hotels & Resorts is organised and
works according to the plans and propaganda of the business.
McKinsey’s 7S Model:
This is a framework useful for businesses to identify and examine the likely effect of
future changes taking place within their operation and also to align different departments and
processes of the business.

Figure 5: McKinsey 7S Framework, 2018
● Hard Elements- These are those elements which can be easily identified and influenced
by the management of Wyndham Hotels & Resorts while developing a new business
strategy.
o Strategy- The Wyndham Hotels & Resorts needs to be highly available and
accessible by different customer segments in the world all different types of
services required by them. The fool the company adopts a strategy of huge
diversification in order to be accessible to all different types of customers and
gaining loyal customer base enabling them to be e competitive enough in the
market.

o Structure- The structure which is followed by Wyndham Hotels & Resorts is
divisional which device is the company over its geographical presence in the
world (TADESSE, 2020).
o Systems- The system followed by the people of Wyndham Hotels & Resorts for
completing day-to-day operation is systematic which is regulated by the managers
and leaders.
● Soft Elements-
o Shared value- The shared values of Wyndham Hotels & Resorts are
accountability, inclusiveness, caring, fun and integrity.
o Skills- The people and work force of Wyndham Hotels & Resorts showcases the
skillset of the brand.
o Styles- The leadership style adopted by the leaders of Wyndham Hotels & Resorts
developing dynamic workforce and leading the market with innovative and
creative ideas.
o Staff- Their was staff of 9000 people in Wyndham Hotels & Resorts in the year
2020.
TASK 3
P3. Apply Porter’s five forces model, evaluate the competitive force of given market sector for
Wyndham Hotels & Resorts.
ANALYTICAL TOOLS AND MODELS OF ANALYSIS
Porter’s Five Forces Model:
This is a framework and a model used by businesses in order to identify the competitive
environment in which they are conducting their operations and surviving with a competitive
edge. Basically the porter’s five forces model will enable Wyndham Hotels & Resorts to identify
their competitive power in order to develop an appropriate business strategy.

Figure 6: Porter’s five forces, 2019
● Existing rivals- This element refers to the existing competitors in the market which are
competing with the firm. Hospitality industry is a rapidly growing sector where
competition is high and aggressive. Wyndham Hotels & Resorts also has high existing
competitors which reduces their power in the industry (Hussain and et. al., 2020).
● Threat of Substitutes- The threat of substitutes refers to development of new and similar
offerings in the industry as of Wyndham Hotels & Resorts. The threat has low power
over the brand due to it’s huge and wide portfolio of brands among the world.
● Threat of New entrants- The threat of new entrants is also low for Wyndham Hotels &
Resorts as the company has its presence in the world with a popularity of the largest
franchisor. Any new business entering the hospitality industry will be needing several
years of experience to compete and become a thread for Wyndham Hotels & Resorts.

● Bargaining power of Suppliers- The competitive power of suppliers is moderate for
Wyndham Hotels & Resorts as the brand do not depend entirely on suppliers. The
company works independently rather than depending upon single suppliers they have
multiple suppliers spread in the world which keep their power moderate over the decision
making and power of the organisation.
● Bargaining power of Customers- The bargaining power of customers of Wyndham
Hotels & Resorts is high. This is because the the brand is a very large part of the
hospitality sector in the world and their responsibility is to provide services and keep
their customers happy. Along with it as per the stakeholder in a basis it is also determined
that customers have huge interest in decision making of Wyndham Hotels & Resorts as if
they are the ultimate user of those products and services offered by the brand and also
they have huge power over influencing those decisions by changing the market trends
and their requirements.
Ansoff Matrix:
The Ansoff matrix is a tool used by businesses to identify and appropriate growth and
expansion strategy for their business in regards to the current performance as well as the internal
and external environment in which they are dealing and operating their business. The analysis of
the framework in concern with Wyndham Hotels & Resorts is as follows:

Figure 7: The Ansoff Model, 2020
● Market Penetration- This is a strategy which determined that company should stay in
their existing business environment and put emphasis over their marketing techniques in
order to retain the existing customer base and to regain their attention. The risk involved
in this strategy is very low for Wyndham Hotels & Resorts (Kallmuenzer, Peters and
Buhalis, 2020).
● Product Development- This is an expansion strategy which states that the company
should innovate and invent new offerings for their existing customers. Wyndham Hotels

& Resorts can make use of this strategy in order to maintain the trust of its existing
customers in the brand during the current critical situation of hospitality industry and
suffering caused due to the pandemic in it.
● Market development- The strategy states that the company should expand into a new
marketplace with their existing offerings and capture new customers along with retaining
the existing one. This can be a appropriate strategy for Wyndham Hotels & Resorts as the
brand has its presence in several market it can easily move to another one for capturing a
new customer base.
● Diversification- This is an expansion strategy with huge risk as it suggests that the
company should move into a new marketplace with innovative and new product.
Wyndham Hotels & Resorts, being a hospitality brand this is an appropriate strategy for
the organisation but risk involved is also very huge.
From the above evaluation of internal and external environment in which Wyndham
Hotels & Resorts is operating and also so the competitive forces that exist in the market place it
is a very critical step for the hospitality organisation to expand into new market place with new
offerings. But diversification is a strong and valuable strategy which will be bringing huge
profits to Wyndham Hotels & Resorts as well as supporting its objectives of becoming a most
prominent brand for the people and especially travellers of all segments looking for a valuable
place for them to spend their vacations and gain a new experience.
TASK 4
P4. Apply range of theories, concepts and models, interpret and device strategic planning for
Wyndham Hotels & Resorts.
Bowman’s Strategic Clock
This is a a model that will enable the organisation to explore appropriate options for their
strategic positioning that is how a respective companies product should be positioned in the
market in order to provide it the most competitive position amongst other competitors in the
industry. There are 8 positions of the framework which are as follows:

Figure 8: What is Bowman's Strategy Clock, 2021
 Low price and Low value added- this is the least competitive area on the strategy clock
where price and value of the offering is lowest possible making it less competitive.
 Low price- The strategy as the name suggests is about becoming the lowest cost provider
for the buyers.
 Hybrid- This is a combination of low price and unique that is providing differentiated
products and services to customers with low cost (Bichler, Kallmuenzer and Peters,
2020).

 Differentiation- It refers to the business to be focused upon providing a unique product
to their customers which provide them a competitive advantage of the coming indifferent
from their competitors providing them higher value.
 Focused Differentiation- This of differentiation strategy suggest the entity to stay
focused upon one particular segment by providing them higher value of products with
high prices which will enable them to attain higher profits (Childs and et. al., 2021).
 Risky high margins- This strategy suggest that the brand should enter the market pricing
policies without any perceived added value in its products and services.
 Monopoly pricing- The strategy is applicable over those businesses and industries where
only single company is available in the market holding in the entire control over it.
 Loss of market share- This is the worst position in the entire strategic clock there the
company stays in their existing marketplace and also loses its customer base.
From the valuation and analysis conducted in the above segments of the report that is
through macro and micro environmental analysis as well as from identifying the competitive
surroundings of Wyndham Hotels & Resorts in the hospitality industry it is suggested that the
company should make use of diversification strategy where it focuses upon making its products
and services differentiated providing unique value to customers as per their expectations and
requirements.
Diversification:
The strategy signifies that Wyndham Hotels & Resorts should enter into to a new
marketplace that is the brand should expand into the area and the region of the world where they
do not have any potential presence and with a unique product or service offering which are not
been provided by other hospitality service providers in the region (Bounatirou and Lim, 2020).
Through looking over the competitive advantage of Wyndham Hotels & Resorts the
brand has a potential customer base and reputation in the industry with keeping their focus over
their offerings and core value of the organisation. It is suggested that brand should move into a
new market place to maintain their competitiveness in the current period of coronavirus
pandemic by using their competitive advantage of being an independent business organisation
with high customer base and market share in the hospitality industry around the world.

CONCLUSION
From the above information and analysis it can be summarised that hospitality business
strategy plays a very important role in taking strategic and analytical steps by the company.
Strategy development requires appropriate analysis and examination of external and internal
environment of the willing to expand and grow. Through examination of several aspects of the
hospitality organisation it was determined that the company should diversify with their strong
brand name and presence in the international market as well as a valuable and loyal customer
base. The entity should move into a new geographic allocation with the focus of providing better
services and hospitality offerings to the people and enabling them to experience, new and better
hospitality services.

REFERENCES
Books and Journals
Baynova, Y., 2020. Coronavirus: The Impact on Hospitality Industry and How to Plan Ahead.
Bichler, B. F., Kallmuenzer, A. and Peters, M., 2020. Entrepreneurial ecosystems in hospitality:
The relevance of entrepreneurs’ quality of life. Journal of Hospitality and Tourism
Management, 44, pp.152-161.
Bounatirou, M. and Lim, A., 2020. A Case Study on the Impact of Artificial Intelligence on a
Hospitality Company. In Sustainable Hospitality Management. Emerald Publishing
Limited.
Childs, M. and et. al., 2021. The growing business of slowing down: Understanding the Slow
Movement in retail, hospitality and tourism. Journal of Brand Strategy, 9(4), pp.432-
445.
Hussain, I. and et. al., 2020. Effects of sustainable brand equity and marketing innovation on
market performance in hospitality industry: mediating effects of sustainable competitive
advantage. Sustainability, 12(7), p.2939.
Kallmuenzer, A., Peters, M. and Buhalis, D., 2020. The role of family firm image perception in
host-guest value co-creation of hospitality firms. Current Issues in Tourism, 23(19),
pp.2410-2427.
Lin, N. and Ottenbacher, M. C., 2020. PAST AND PRESENT RESEARCH STREAMS IN
INTERNATIONAL HOSPITALITY MANAGEMENT. The Routledge Companion to
International Hospitality Management, p.9.
Ņikadimovs, O. and Ivanchenko, T., 2020. Soft skills gap and improving business
competitiveness by managing talent in the hospitality industry. Economics &
Education, 5(1), pp.36-48.
Pappas, N. and Brown, A. E., 2020. Entrepreneurial decisions in tourism and hospitality during
crisis. Management Decision.
Park, Y. and Wiegerink, K., 2020. Smart Resident–Driven City Hospitality: An Explorative
Study About How Smart Principles Can Create Long-term Value for the Communities
of the City Centre. In Sustainable Hospitality Management. Emerald Publishing
Limited.
TADESSE, B., 2020. THE EFFECT OF SERVICE QUALITY ON HOSPITALITY BUSINESS
PERFORMANCE: A CASE STUDY ON FOUR STAR HOTELS OF ADDIS
ABABA (Doctoral dissertation, ST. MARY’S UNIVERSITY).
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Wyndham Hotels & Resorts, 2021. [Online] Available Through: <
https://corporate.wyndhamhotels.com/ />
Wyndham Hotels & Resorts: Number of Employees 2016-2021, 2021. [Online] Available
Through: <https://www.macrotrends.net/stocks/charts/WH/wyndham-hotels-resorts/
number-of-employees/>