Hospitality Business Strategy

Hospitality Business Strategy
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Contents
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
P1 Analyse influence of macro environment on organization.....................................................4
P2 Analyse capability of internal environment on oorganization...............................................6
P3 Discuss about the Porter’s Model and evaluating the competitive force of given sector for
IHR..............................................................................................................................................8
P4 Range of different theories, concept and model that integrate, devise strategic planning for
InterContinental Hotels group (IHR).........................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Business strategy is based on the set of competitive move and actions that mainly used by
organization to influence existing customers. In order to increase the overall business
productivity as well as profitability in global marketplace. The documentation is mainly focused
on the macro environment which will influence on the overall business capabilities. The report
will be selecting the Crowne Plaza” for analyzing the business by using Pestle analysis
framework. It provide the better idea about the organization whereas how macro environment
will impact on the organization capabilities. For business for competitive analysis, it will be
considerations of Porter’s five force model for determine the existing competition within
hospitality industry. At last, it will explain the different theories, concept and model that help for
providing the better strategic direction of “Crowne Plaza” in business expansion.
TASK
P1 Analyse influence of macro environment on “Crowne Plaza”
Every business is highly affected by its external factors. This is because they exist outside
business and are not controlled and managed by it. Also, business has to work within a specific
boundary (Ginindza, and Tichaawa, 2019). So, it is necessary to identify those external factors
which impact highly on organization. With that it becomes easy to develop strategies and
minimise impact. In order to do so there are several concept and model available. Similarly, as
IHG operate at global level there are various factors which can influence on it. Thus, pestle
analysis is done for it. It is a framework which is used to find out external factors that influence
on organization. This includes political, legal, social etc factors which are described as below
 Political- It is a factor which is related to political stability of a country. This highly
influence on business operations as any change in political condition results in change of
laws and regulations, trade policy, government etc. Thus, due to it business operations are
affected. As IHG operate in various countries they have to follow rule and regulation.
However, in many countries political condition is unstable. So, it is directly affecting on
growth of “Crowne Plaza”.
 Economic- the factors are related to economic growth of a nation. Any change in
economic growth highly affect on “Crowne Plaza” business operations. In this factor
included are GDP, income level, inflation rate etc thus, if there is any change in it then it
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directly affect on growth of Crowne Plaza”. IHG operate in many countries so they have
to depend on economic growth of that country. Besides that, in recent times, income level
of people has increased so it will be beneficial for hotel to expand in those nation whose
economic growth is rising. It will benefit in their expansion and operations will not be
affected as well (Lauer, 2019).
 Social- they are those factors that is related to change in taste and preference, needs,
lifestyle of people. If the needs changes then it directly influence on business operations.
However, as Crowne Plaza” operations are related to hotel they provide various types of
services. But now people needs has changed. This is because of rise in income level.
People require luxury services and have become health conscious. Thus, it will highly
affected on business operations. The hotel needs to maintain hygiene and cleanliness.
Furthermore, they need to provide various services to fulfill needs of people. (Tian, . and
Cao, 2019).
 Technological- As name depicts this factor is related to advancement in technology. In
every sector technology is highly been used. It has affected on “Crowne Plaza”
operations in positive way. Moreover, in hotel industry various advance technological
device are used such as robotics, AI, IOT etc So, with more use of technology it will
ease in doing of operations in IHG. Through that, hotel will be able to expand and
provide services to more people. Alongside, the quality of services will be maintained
and this will be useful in gaining their trust and satisfaction.
 Legal- they are those factors which is related to laws and legislation which is to be
followed by business. The rules differ in various countries and are formed by
government. They include health and safety, employment law, wages law etc. So any
change in these highly impact on business operations. Moreover, as IHG operate in
various countries so they have to follow laws of that country. However, many
government is focusing on changing law to provide more health and safety to staff in
hotel. Therefore, it will highly affect on “Crowne Plaza”. They will have to form new
policy and procedures and install different health and safety equipment. Hence, training
will be provided and staff has to work in different way, so it will affect on operations
(Tian, . and Cao, 2019).
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