Hospitality Business Strategy: External and Internal Analysis, Porter's Five Forces, and Strategic Planning

This document discusses the importance of business strategy in the hospitality industry, focusing on external and internal analysis, Porter's Five Forces model, and strategic planning. It uses the case of Crowne Plaza Hotel to illustrate these concepts and their application in the industry. The document also provides recommendations for the organization's strategic management plan.

Hospitality
Business strategy

Table of Contents
Introduction:’...................................................................................................................................1
PART A:..........................................................................................................................................1
External and internal analysis of the company :....................................................................1
Examine the competitive environment with the porter five forces model:.........................1
PART B:..........................................................................................................................................1
Use different types of the strategic direction using the different model in the organisation to
the make the strategic planning “...........................................................................................1
Conclusion:......................................................................................................................................1
References :......................................................................................................................................1

Introduction:
With the help of the strategies the organisation are able to achieve their desire results in the most
profitable manner in the market places. in the hospitality industry the , business strategy is used
as the tools and technique in making the effective plan for the organisation so that task can be
completed within the set time and in the efficient ways. in the other words, it is concerned as
the process which helps the company to obtain the desire level of the outcomes by applying the
plan which includes the courses of the action which needs to be followed to have desire profits.
Under this report, the Crowne plaza hotel which is known for its best services in the
hospitality sector. There will be discussion on the external as well as internal environment
which can influence the organisation objectives and evaluate the porter five forces in the context
of the organisation and then develop the strategic management plan for the company
PART A:
External and internal analysis of the company :
At the market places where the organisation perform its activity needs to understand the examine
the external environment which have influence on the performance of the organisation and have
impact on the profits in the targeted market places. in the relation with the Crowne plaza, the
manager uses the PESTLE analysis to understand the external things:
PESTEL analysis : it is tool which is applied by the organisation in their management level to
make the effective strategy which helps in expanding their business across the international
market places. it also helps the organisation to examine the factor that affects the productivity of
the organisation. (Van and Goonetilleke., 2015)
Political factors: here the factors such as political situation , various government policies and
foreign exchange rate and various Another factors are included . in the relation of the Crowne
plaza the these factor have huge impact on the performance of the organisation and affects the
profits margin . with the effect of the Brexit, the hospitality sector have to make the various
changes in their polices .
Economic factors: it involves the rates like a inflation , currency exchange rate, the foreign
rates which have direct or indirect impact on the productivity of the company in the market .
the Brexist have effected the economic in the negative ways which have harm the outcome of
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the company. If the inflation rate increase in the market then the buying power of the
consumer are affected to the large extand.
Social factors; here the customer belief system, their taste and preferences and their social
background have influence on the organisation action plan as the consumer are the final end
used who will reflect the profits of the company in the market places. in the relation with the
crowne plaza, the undertake the customer demand and their need before making the effective
strategies .
Technology factors: under this part, it involve the use of the advance technology, innovative
ideas and artificial intelligence and various other factors, with the references of the crowne plaza
., the manager uses the effective technology at their management level so that task can be
completed in the proper manners.
Environment factors; under this factors, the company uses the resource which are present in
the society to make revenue in the long run so it is duty of the organisation to maintain the
proper balance of the resource in the market so that next generation can use such resource and
carry out the activities. the government also apply the different policies on the organisation so
that resource can be recycled.
Legal factors: under this section , the government applied the different kinds of laws on the
organisation to perform their task in the effective ways . in the context of the Crowne plaza, the
organisation follow the guidance set by the government so that work can be completed in
proper mnners.
SWOT analysis : it is technique used to examine the internal factors of the company that have
impact on the performance and productivity of the organisation in the targeted market places .
it helps in examining the strength , weakness and opportunists , threads of the company in the
comparison of the market places in which they are executing the task . it also helps the
organisation to understand the competition in the targeted market so that they can take the
competitive advantages in the market places. in the relation of the crowne plaza, the swot
analysis are as follows:
Strength Weakness
 The crowne plaza is offering the
premium services to its customer at the
 In the hospitality sector , there is
tough competition which have impact
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global market which helps in creating
the brand image in the market places.
 They also offers the various tourist
places package program to its customer
which helps in expanding their
operational activities at the
international market places.
on the profits margin of the
organisation and also affect their
growth plans.
 The organisation need to have huge
investment in the form of capital ,
labour and raw material which have
influence of the outcomes of the
organisation.
Opportunities Threads:
 With the increases in travel and
tourism sector, the organisation are
having the growth opportunities where
they can expand their business at the
worldwide market places.
 As the market of the hospitality
sector follow the lasted trends in the
market so organisation have to
modified and improve their goods and
service to capture the market places.
 Here the organisation have to face
various issues and problem which can
affects the growth of the company in
the targeted market places.
 The market conditions are unstable
which affects the organisation profits in
the long run in the market places.
VRIO analysis : it is method which are used by the organisation to identify the internal abilities
and strength which helps the organisation to earn the desire level of the outcomes in the set time
frame. In the relation to the Crowne plaza, the manager make use of this tool to evaluate the
internal factors of the company . it has four things in it such as value, inimitability and rarity .
Resources Valuable Rare Inimitable Organisable
Brand value Yes No No No aggressive
complexity
Official skill Yes No No Yes uncultivated
similarity
financial Yes Yes Yes No Competitive
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funds convenient
Human
contribute
Yes Yes Yes Yes Provisional
correspondence
Valuable : the organisation are able make the brand value in the market places which helps
them to take the competitive advantage in the targeted segment . the organisation are trying to
add the effective value to its services which make the proper functioning in the management
level in the relation to the crowne plaza, the financial aspect is the essential part of the company
and helps them to achieve the desire results in effective manners.
Rare”: the official performance in the organisation is not rare and using the various technique
which helps them to serve the best services to its customer in the targeted market places. here
the financial factor are stable which helps the company to expand their business at the
international market places. (Taylor., Al Yousuf. and Taylor, 2015.)
Inimitable : here the organisation have problems in the handling the financial statement and
understanding their aspect at the management level but the organisation are able to use the
technology in the most profitable manners which helps in achieving the outcomes.
Organisable : in the relation to the Crowne plaza, the human management is affected which
helps them to complete the task in the profit manners. the organisation also provide effective
programs which helps them to achieve the goals and objective.
Examine the competitive environment with the porter five forces model:
Porter’s five forces : as per this model, the crownze plaza are able to evaluate the
competition present in the targeted so that effected strategic can be formed which leads to take
the competitive advantage in the long run and can expand their operational activities at the
global market places. these forces have various impact on the performance and productivity of
the organisation and helps in making the growth plan of the hotel and helps in focusing on the
objective of the organisation; . (Wang, Cai. and Qu,, 2015)
Threats of the new entrants : under this force, the organisation faces the threats for the new
company trying to enter into the market place and capturing the market in the long run. the
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organisation are required to have the huge effective resource to enter into existing market and
have competitive edge in the market . and the company aims to offer the good and service to
have more customer.
Bargaining power of the supplier: here the market include the more supplier and less buyer in
the market which have less power in the hands of the supplier . in the relation to the crowne
plaza, the organisation faces the issues in the market places and offer the good quality of the
services to the customer and develop the effective strategies for the expanding to the
organisation.;
Bargaining power of the buyers : here the number of the seller in the market are less and the
buyer are larger in the number which make the purchaser more powerful in the target market
places. in the relation of the Crowne plaza , the organisation have provide various service which
helps them to grow their operational activities and have more customer in the present and in
the long run. the organisation are also able to make the goodwill image in the market which
helps in attaching more customer towards the organisation services .
Threats from the substitutes goods: in the market place, the organisation can able to provide the
different services to its customers so the this force are less powerful in the targeted market
places. in the hospitality sector have low pressure from this force as the company are offering the
services to the customer and serve the purpose of the organisation. (Roma, Panniello. and
Nigro,., 2019. )
Rivalry among the existing competitors : in this industry , the organisation have to face the
competition in the market place as there are various hotel in the market which are offering the
some kind of the service to the customer so it become difficult of the organisation as they are
have or faced the competition in the market places.
With the references of the Crowme plaza, the organisation cam make the proper strategies
which helps in growing their business at the international market places and build their
goodwill across the market levels.
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PART B:
Use different types of the strategic direction using the different model in the organisation to the
make the strategic planning.
The organisation works in the market places where various another organisation are also
performing their task and activities so it is important for the company to make the effective and
systematic strategies which helps the organisation to expand their business to the next level in
the targeted market places. in the relation to the Crowne plaza, the manage make the strategic
plan for the organisation to grow in the another market places. (Lordkipanidze, 2018).
Ansoff matrix: it is used and applied as the tools in the organisation so that they are able to
understand the market in which they perform their task and activities. this matrix is helps in
making the growth plans for the organisation and achieve the desire results . in the relation to
the crowne plaza, the organisation apply the following matrix to expand their buinsess.
Market penetration : here the organisation focus on providing the existing goods and services
to the customer at the existing market places which helps them to expand and grow their market
share in the targeted marketed . in the references of the crowne plaza, the company tries to give
the premiums servicer in the market which helps in having more customer in the existing market
and capture the market .
Product development : here the organisation focuses on providing the new product and
services in the existing market so that they have already market for their service and they can
have more consumer if they offers the new services which are demanded by the customer in the
market . this also helps in improving the services of the organisation in the market places and
can make the brand name in the targeted market places.
Market development : under this phase, the organisation focus on entering into completely
new marker with their existing product and service so that they can grow in their another market
as well in the long run. here the company tries to capture the new market and consumer by
offering their existing services in the market. this part helps the organization to have more
number of the customer.
Diversification: under this part of the matrix, the organisation are able to enter into the new
and advance market places with their new goods and services to that customer are aware about
the goods and tries to use them and fulfil the need of the consumer from time to time . this is
little risk phase as the organisation are trying to enter into new market which not shows who
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their goods and services will be examined and used by the consumer in the market places. in the
context of the crowne plaza, the organisation focus on having more clients in the new market so
that they can serve their service in the targeted segments.
Recommendation for the organisation :
In the context of the Crowne plaza, the organisation need to evaluated their internal as well as
external factors which helps them to make the proper strategies plan which helps them to grow
their operational activities at the international market places. here the organisation also study the
porter forces to examine and understand the competition present in the various part of the market
places. and the organisation need to make effective plan which helps them to support their
business in the long run.
Strategic management plan: it is defined as the document which shows the strategy the
organisation need to apply in their management level so that they can grow their task across the
international market places. the organisation set the aims and objective which are to be
achieved within the set time period that will lead to capturing the various tarring market places .
Strategies : it is management plan which are formed by the senior manager of the organisation
which states the purpose of the company and which are to be achieved in time that will enhance
the market share at the international places. (Rosalin,, Poulston, J. and Goodsir, 2016)
STP: here the organisation focus on making the proper plan where they can place their service
and finds out the effective market where they can place their service so that customer can use
them and organisation can earn the desire profits.
Segmentation: here the organisation divide the whole targeted market into small segment
according to the need of the consumer so that they are served better in the management level.
The segment are made on the base of their disposable income, their taste and preferences and
their culture ,age and their assumption. This segmentation helps the organisation to identify their
customer in the market and provide them good accordingly .
Targeting : after making the segment the organisation focus in their targeted customer in the
various segment so that they can expand their business by targeting the market in the proper
manners and places their service across the nation.
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Positioning: under this part, the organisation tries to place their goods at the effective market area
where all the customer can reach out the organisation goods and services .. the company tries to
make its customer know that such service are available in the market places. (Kim, Lee, K. and
Fairhurst, 2017)
Objective : the crowne plaza organisation make use of the smart objective while making the
management plan which leads to achieve their goals and objectives in the proper time period.
Tactics : here the organisation make the tactics to dissolve the issues which comes up while
making the marketing and position strategies for the organisation. in the references of the
crowne plaza, the organisation make proper plan which helps them to capture the another market
as well in the long run.
Conclusion:
As per the above discussion, it can be stated that organisation need to understand their external
as well as internal environment factors that affects the organisation in the market place. it also
helps the company to develop the plan which will show the path to grow at the global level.
With the help of the Ansoff matrix, the company are able to form the plan where they can grow
their operational task across the nation.
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References :
Books and journals:
Van der Wagen, L. and Goonetilleke, A., 2015. Hospitality management, strategy and
operations. Pearson Higher Education AU.
Taylor, E., Al Yousuf, M. and Taylor, J., 2015. Developing a government strategy to meet
international standards of food safety across the hospitality industry. Worldwide Hospitality and
Tourism Themes.
Wang, Y.C., Cai, R., Yang, C.E. and Qu, H., 2015. Coping strategy in hospitality internships: A
mixed method approach. Journal of Hospitality & Tourism Education, 27(1), pp.10-19.
Roma, P., Panniello, U. and Nigro, G.L., 2019. Sharing economy and incumbents' pricing
strategy: The impact of Airbnb on the hospitality industry. International Journal of Production
Economics, 214, pp.17-29.
Lopes, M., 2016. The hospitality industry (Doctoral dissertation).
Oduori, F.N. and Herbst, F.J., 2015. New service development: strategy and process in the
hospitality sector in Kenya (Doctoral dissertation).
Papaioannou, A., Kriemadis, T., Kapetaniou, P., Yfantidou, G. and Kourtesopoulou, A., 2018.
Customer oriented strategy and business performance in tourism and hospitality industry.
In Innovative Approaches to Tourism and Leisure (pp. 417-432). Springer, Cham.
Evans, N., 2015. Strategic management for tourism, hospitality and events. Routledge.
Kandampully, J., Zhang, T.C. and Jaakkola, E., 2018. Customer experience management in
hospitality. International Journal of Contemporary Hospitality Management.
Yoon, D., Jang, J. and Lee, J.J., 2016. Environmental management strategy and organizational
citizenship behaviors in the hotel industry. International journal of Contemporary hospitality
Management.
Lordkipanidze, R., 2018. The Strongest Key to Global Hospitality.
Martínez-Martínez, A., Navarro, J.G.C., García-Pérez, A. and Moreno-Ponce, A., 2019.
Environmental knowledge strategy: driving success of the hospitality industry. Management
Research Review.
Yen, C.L., Singal, M. and Murrmann, S.K., 2016. Cultural context orientation and recruitment
message strategy: Evidence from hospitality students in the United States and Taiwan. Journal of
Human Resources in Hospitality & Tourism, 15(3), pp.325-345.
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Rosalin, G., Poulston, J. and Goodsir, W., 2016. Strategy communication in family-owned
restaurants: Ad Hoc and Ad-Lib. International Journal of Hospitality & Tourism
Administration, 17(2), pp.101-122.
González-Rodríguez, M.R., Jiménez-Caballero, J.L., Martín-Samper, R.C., Köseoglu, M.A. and
Okumus, F., 2018. Revisiting the link between business strategy and performance: Evidence
from hotels. International Journal of Hospitality Management, 72, pp.21-31.
Singal, M. and Rhou, Y., 2017. Corporate social responsibility in the hospitality sector. Boston
hospitality review, 5(1), pp.1-16.
Kim, S.H., Lee, K. and Fairhurst, A., 2017. The review of “green” research in hospitality, 2000-
2014. International Journal of Contemporary Hospitality Management.
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