Hospitality Business Strategy

This report focuses on the four key strategies in the hospitality business and covers the macro environment impact on The Landmark London. It analyses the internal environment factors to identify the organization's internal capabilities, strengths, and weaknesses. The competitive force of the market is evaluated, and appropriate strategies for improving the market position and competitive edge are developed. The report also covers the different types of strategic directions available for the business and the most appropriate growth platform and strategies through the application of the Ansoff growth matrix.

Hospitality Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Analysis of the macro environment factors influence on The Landmark London......................3
Determination of the decision-making strategy...........................................................................5
Analysis of the internal capabilities and the environment of the organization............................5
Evaluation of the strengths and the weaknesses of the internal environment..............................6
Evaluation of the company's competitive advantage through Porter's five force model.............6
Developing the appropriate strategies for improving the market position and competitive edge
......................................................................................................................................................7
PART 2............................................................................................................................................7
The different types of strategic directions available to organisation...........................................7
The most appropriate growth platform and strategies through the application of ansoff growth
matrix ..........................................................................................................................................9
Applying a range of theories, concepts and models, interpret and devise strategic planning . .11
Critical evaluation of the strategic management plan................................................................12
Producing of the valid strategic direction through interpreting the competitive analysis and
applying of data environmental.................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
In the operations of the business the managers and the owners of the business has to focus
on the four key strategies in the hospitality business. Increasing the value of customer, excellence
operational achieving, brand and franchise building and a good corporate citizen being are the
four strategies.
The first part of the report will cover the macro environment impact on The Landmark
London. The report will determine the decision of strategic management. Further, the report will
analyse the internal environment factors to identify the organization internal capabilities
strengths and weaknesses. The competitive force of the market will be evaluated. The second
part of the report will cover the different types of strategic directions available for the business.
Further, the report will include the growth strategies recommendation. The report will provide
the strategic management plan. The competitive and the environment analysis will be interpreted
in the report.
PART 1
Analysis of the macro environment factors influence on The Landmark London
There are several factors which influence to the Landmark London which will be
analysed through the PESTLE and the SWOT analysis. The analysis are:
PESTLE analysis
 Political Factors- Trade control, corruption level, regulations and the tariffs are the types
of political factor which impact the hotel business. The important factor for the
hospitality industry is the political stability. Political stability may impact the profitability
of the business. There is different tax policy of the UK which should be followed by the
companies for the smooth business processing (George, 2021).
 Economic Factors- Increase in the rate of inflation may impact the profit of the business.
The landmark hotels can decrease the rate of employment by providing the employment
to the people for managing of the hotel. There will be an increase in the stock market of
the company through promoting to public (Nayak and Kayarkatte, 2020).
 Social Factors- The factors includes the education level, lifestyles, health consciousness,
lifestyles, behaviour and attitude of the public. Due to the pandemic most of the people
avoid eating from the hotels. People change there lifestyle after the pandemic. There is
the more requirement of better and quality service of the product.

 Technological Factors- Adapting of the change in technology may help the Landmark
London in attracting more potential customers. Customers will attract the business
through providing the better level of infrastructure. To the research and the development
of the needs of the customer it requires more spending (George, 2021).
 Legal Factors- The factors such as the employees wage rate, consumer protection law,
discrimination law and the intellectual property law were included in the legal factors.
Business should provide the knowledge to the employees for protecting of the data. In the
hospitality business the protection of the consumers is the important factor which should
be considered by every business. Environmental Factors- There will be the impact in the business due to the change in
the climate or weather (Nayak and Kayarkatte, 2020). Landmark London should follow
the regulations such as environment pollution so the uncertainty of the weather does not
impact the customer and the business.
SWOT analysis
 Strength- Strength of the company defines the characteristics of the business and how
the competitors get the advantage of position in the competitive market. The strength of
the Landmark Hotel is that it provides the comfort and the safe atmosphere to the
customers (Madsen and Stenheim, 2022).
 Weaknesses- The weakness of the company can be defined by analysing the
disadvantages from its competitors. There is the weakness for the business as it is
dependent on the international tourism. Keeping the high price of the product and the
service may lead the business in losing the potential customers.
 Opportunity- This analysis defines the available opportunities by the business to expand
its business in future to increase the profit by implementing of strategies. Business has
the opportunity to feed the international and the local market. Personalized products and
service can be developed by the business.
 Threat- The profitability of the business can be impact through the external environment
impacts. Due to the uncertainty of the business it impacts the performance and the profit
such as the impact of pandemic which effects every company (Madsen and Stenheim,
2022). There is the strong competition to the business as there are number of competitor
hotels were available with good pricing.

Determination of the decision-making strategy
The PESTLE analysis framework helps the business in analysing the environment
through the simple and the easy process. The Landmark London Hotel will benefit in reducing
the external environment threat and the impacts. Employment, fiscal policy, inflation are the
factors included in the macro environmental. Through identifying the business strengths,
weaknesses and the available opportunities helps the business in making the decision for
generating profit by developing the suitable strategies. There is the threat for the Landmark
London of the higher number of competitors such as the Premier Inn which impact the position
of the business.
Analysis of the internal capabilities and the environment of the organization
The internal environment effectiveness of the Landmark Hotel can identified with the
McKinsey’s 7s business model and the strategic capabilities through the VRIO framework:
McKinsey's 7s Model
 Strategy- To successfully compete in the market and to achieve the sustainable
advantage Landmark London Hotel has to develop a strategy.
 Structure- There should be successfully set up of the structure of the business. This
framework is easiest and visible for the business to change the elements.
 System- The decisions and the daily activities of the business should be in a systematic
manner. Business procedures and the processes are termed as systems (Capobianco and
et.al., 2021).
 Styles- The management style of the hotel is termed as the style of the organization. The
performance of the employees and the culture of organization were involved in the style.
 Staff- The requirement of the motivated, trained employees in the Landmark London
Hotel is included in the staff.
 Skills- The objectives of the company can be achieved through the recruitment of the
skilled employees in the organization.
 Shared Values- Business culture is referred to as the share values. The behaviour of the
employees are guide through the standards and the norms.
Opportunities of the business can be identified through the model which helps in
developing of strategies.
VRIO Framework

 Valuable- There is the improvement in the effectiveness and efficiency by implementing
of strategies which value the capabilities and the resource of the firm.
 Rare- To generate the perfect competition the rare valuable resource will be considered
till the firms resources is less than the number of firms (Lopes and et.al., 2018).
 Imitable- Due to the unique historical conditions, casual ambiguity and the social
complexity, the rare and the valuable resource are imperfect imitable.
 Organized- If there are no rare and valuable resources and strategic equivalent the
resource of the firm are specific to the organization.
The total of VRIO is considered as the competitive advantage of the firm.
Evaluation of the strengths and the weaknesses of the internal environment
Values of the management, resources, goals of the stakeholder, success strategy and the
corporate culture are the types of the internal environment. Through applying the McKinsey's 7s
framework it will help the business in identifying the need which needs to be updated.
Comparing with the competitors it will help the business in identifying their strengths and the
weaknesses. The new opportunities were also identified. The internal environment of the
business can be easily identified through the VRIO framework. Structure, strategy and the
system are the hard element of the McKinsey framework. The soft elements of the framwework
are the shared values, staff, skills and the styles.
Evaluation of the company's competitive advantage through Porter's five force model
The effective model for analysing the competitive environment of the Landmark Hotel
through the Porter's five force model:
 Substitute Product Threat- There are the chances when the customers of the business
can shift to its competitors due to better service or for low cost. The number of available
substitute product and service leads to create high threat of substitute product.
 Buyer's Bargaining Power- The buyers control over the Landmark hotel defines the
buyers power of bargaining. When there is no differentiation of product or service or if
their sensitivity of price by the buyers then there will be high bargaining power (Heimerl
and et.al., 2020).
 Suppliers Bargaining Power- Company's suppliers position strength defines the
suppliers bargaining power. The well organized suppliers leads the supplier in more

bargaining power. In the business when there are low number of employees for service
will lead in increase in the labour supply bargaining power.
 New Entrant Threat- When the business has not adequate capital for starting of the
business will lead to increase in the threat of new entry. Landmark London position can
be weak due to the entry of the new competitor in the market.
 Existing Competitors Rivalry- The capabilities and the number of competitors in the
market creates the intensity of the rivalry dependence. The high increase of the rivalry in
the industry occur because of shifting to the lower products by the customer. Business
has high number of exit barriers.
Developing the appropriate strategies for improving the market position and competitive edge
The two or more parties available for the common goal arise the level of competition. To
the business there are types of competitors such as the indirect competitors, secondary
competitors and the direct competitors. Business who targets same customer by providing
different category product referred to indirect competition. To identify the competitive
environment for the business the most appropriate theory is Porter's five force model. Using of
the promotional strategies, market channels and the pricing methods different business compete
in the market, this system is known as the competitive environment. The potential profit of the
Landmark London Hotel can be increased in the competitive market with the help of Porter five
forces.
PART 2
The different types of strategic directions available to organisation
Strategic direction means the plans that need to be implemented for an organization to
achieve success and growth towards its vision and fulfil its objectives as well as goals. With the
help of strategic direction, the management team and owners can communicate with each other
about the importance of employees work and their contribution towards work to achieve goals of
business.
Porter generic strategies
According to porter, it is very effective tool for company to determine the direction of
company. With the help of this model. The company can easily do management, achieve growth
and profitability of business to create a sustainable competitive advantages. Having a

competitive advantage over competitors is very important to business success. By having this
model, the company is able to contribute to higher profit margins. Using this model, the firm is
able to attract more clients which helps them achieve brand image and maintain its brand loyalty
(Islami, Mustafa and Topuzovska Latkovikj, 2020).
source: (Islami, Mustafa and Topuzovska Latkovikj, 2020)
 cost leadership
Being the leader in terms of cost in the particular industry or market is success mantra for
cost leadership strategy. To increase market share, the firm needs to become one amongst those
companies who produce low cost products. Offering the lowest possible price will help company
gain good market share.
 Differentiation strategy
It is very essential for company to become different from other competitors. The
company who use differentiation strategy they need to make their products or service different
from others. The company needs to be more attractive than those of competitors then only
customers will come and purchase from them. To make a success of a differentiation strategy,
the company needs to deliver high quality products using method like research and development
and innovation strategy. With the help of effective marketing method and sales, the firm can
easily able to offer differentiated offerings.
 Focus strategy

using this strategy means companies are focusing on particular niche markets. By
understanding the dynamics of that market and the unique requirements and needs of customers
the company is able to develop uniquely low cost. With the help of cost focus and differentiation
focus strategy, the firm tend to build strong brand loyalty by providing unique products amongst
their customers. The firm needs to keep in mind that whether they are using cost focus or
differentiation focus, the key to making a success of generic focus strategy is to ensure that
company is adding something extraordinary to attract customers (Islami, Mustafa and
Topuzovska Latkovikj, 2020).
Choosing the right kind of generic strategy will help company achieve competitive edge
in the business environment. From the above discussion it has been evaluated that, differentiation
focus strategy will be suitable strategy for The landmark London hotel.
The most appropriate growth platform and strategies through the application of ansoff growth
matrix
Ansoff growth matrix model is helpful for the company from which they can know about
the best option available in order to grow its competitive market. This tool is generally used by
management teams of the firm to evaluate growth initiatives and plan about growth (Zanjani and
et.al., 2020).

source: (Zanjani and et.al., 2020)
Market penetration- basically, it is a concept of increasing sales of existing products or
services into an existing market. Among all penetration strategy is one of the most effective
strategy.
Product development- this strategy is also best for company, here company used to sell
the new products in the existing market. Basically, expanding the business product features will
help company attract more customers (Khajezadeh and et.al., 2019).
Market development- under this strategy, company focuses on introducing existing
products to new markets. This strategy does not require significant investment in research and
development. With the help of this strategy, the company's management team can take them to a
different marketplace.
Diversification- this is one of the most the riskiest strategy among all because the
company tries to enter a new market with new products.
From the above strategy, The landmark London hotel can use market development
strategy as it helps them attract more customers. The firm needs to do proper research in the new

market before entering it, this not only help company achieve good market share buy also gain
profitability and productivity. Giving the best services will help company achieve success,
revenue and growth in the new market. Adding up something extra to products will help them
attract more customer as per their needs and demands (Chintalapati, 2020).
Applying a range of theories, concepts and models, interpret and devise strategic planning
Strategic planning tools and models is especially designed for the purpose of developing
the action plan for organization to achieve their goals. There are various types of strategic
planning models and theories available which can be used by company.
Balance scorecard- this one is most popular tool of strategy management which can be
used by company to achieve success. With the help of this model, the company is able to monitor
and measure performance if necessary. This tool ensures that strategic goals of the company are
properly met. With the help of this model. Company is able to improve their internal operations

so that they can help their external outcomes. Using balance scorecard the company is able to
measure past performance data and give feedback on how to make better decisions in the future
which helps them achieve success. This approach helps company design KPIs for their various
strategic objectives and also provide insight to assist in decision-making process (Syahdan,
Munawaroh and Akbar, 2018).
The strategy management plan of the firm is established for achieving the vision to
increase the revenues with 15%, the another strategic objective of the firm is to attract customers
satisfaction level by 20% end of this year. Using balance scorecard will help company achieve
objectives by establishing the financial level with the cost-effectiveness. Using this will help
company keep track and record about the customer satisfaction level. Financial, customer,
learning and growth perspective can be achieved which helps in analysing the quality service and
employee satisfaction, customer relationships. By using this tool, company will be able to align
all the set objectives which helps in gaining tactical goals.
Another strategy which can be used by the company is blue ocean strategy as it is a
strategic planning model which says that company must create uncontested market space rather
than focusing on competition. Using this model, the hotel will be able to create a blue ocean just
by making the competition irrelevant, it can mean a massive value boost for the employees and
firm both in the business world (Carton, 2020).
Critical evaluation of the strategic management plan
Applying of the blue ocean strategy it helps the business in boosting up the performance
in the competitive world. Adapting the proper strategy help the business in increasing the share
market and increase in the profitability. Company can survive for the long term with the
objectives and the tactical plans.
Producing of the valid strategic direction through interpreting the competitive analysis and
applying of data environmental
To grow the business the need of expansion is important for the company. Business will
able to generate higher profit in future with the help of applying appropriate model. The
competitiveness of the business will reduce and will help in increasing the performance and
attract the customer through focusing on the tactical plans and the objectives.

CONCLUSION
It has been concluded from the above report that in the hospitality business the owner and
the manager needs to focus on the operation through four strategies. The report analysed the
PESTLE and SWOT for identifying the macro environmental factors impact. Moreover, the
strategic capabilities and the effectiveness of environmental of the business were measured
through VRIO and McKinsey's 7s frameworks. Further, the report evaluated the competitive
advantage of the Landmark London through Porter's five force model. Through the porter
generic strategy the directions of the organizations were evaluated. The report provided the
strategic planning for the business through applying of the strategies. The report applied the
Ansoff's Matrix for justifying the growth strategies and platforms.

REFERENCES
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