Hospitality Business Strategy: Analysis of Macro and Internal Environment of Corinthia Hotel in London

This report analyses the macro and internal environment of Corinthia Hotel in London using PESTEL and SWOT analysis. It also includes a stakeholder analysis and evaluation of strategic capabilities using VRIO analysis. The report suggests strategies to gain a competitive edge in the market by addressing the impact of Brexit, changing social trends, and reducing costs while keeping sustainability in mind.

HOSPITALITY BUSINESS
STRATEGY

Table of Content.
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Macro-environment analysis of the organisation.........................................................................3
PESTEL Analysis........................................................................................................................5
Analytic thinking of hospitality macro-environment in order to inform the strategic decision
making in relation to Corinthia Hotel in London.........................................................................6
Analyse the strategic capabilities of Corinthia Hotel..................................................................7
Analytic thinking of internal environment of Corinthia Hotel inorder to assess organisational
capabilities, strengths and weaknesses .......................................................................................8
Strategies to assist the firm in order to gain competitive edge in the market............................10
Appropriate strategic directions evaluation for Corinthia Hotel................................................10
Suitable plan of action recommendation for Corinthia Hotel...................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Due to modification in the movement habits of the user every year, the hospitality
industry faces various continuous changes. It is crucial for any business firms in the cordial
reception industry to build plan hospitality business administration plan. As it is help in the
establishment of immediate action to attain business subjective as well as increase success in the
industry on the foundation of both the extrinsic as well as intrinsic capabilities of the
organisation. The project report aim is to prepare strategic hospitality management plan for
business development. The project study utilises the suitable models to analyse the macro-
environment of the organisation. It also analyse the internal environment as well as external
environment capabilities of the establishment with suitable theories. The report also give brief
about the porter's five forces model which is used to analyse the competitive forces which affect
the establishment. The project report give knowledge about the internal, external as well as the
competitive environment of the organisation which is used to ascertain strategic direction of the
firm with the use of appropriate explanation along with their model.
MAIN BODY
PART A
Macro-environment analysis of the organisation
The establishment business scheme is defined as the course of action or a series of
decision which the businessperson to attain the peculiar business objectives. As the business
firm strategy is the part of long term planning establishment. The business strategy includes the
leading principles about the conclusion making as well as resource share in order to attain the
business objectives. It plays an essential role in achievement of business enterprise objectives
which facilitates as an surroundings where every business decision and their act is taken to
further achievement (Serfontein and Govender, 2020).
The strategic aim is describe as the compulsive plan which help the business firm to
attain business subjective. It take contrasting path on the basis of their content. The strategic
itinerary which favour in visual modality mission as well as their objectives is taken by the
organization.
The vision, operation and the objectives of the hospitality organisation are mention below:
Operation statement: To provide the good happening to the people
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Vision statement: The main vision is to become the stellar name in the hospitality
organisation.
Business objectives: To increase gain of the organisation.
To increase the belongings of the organisation.
Stake holder's analysis
Stake holder's analysis of Corinthia Hotel London
INTE
REST LEVEL
POWER LEVEL
HIGH LOW
HIGH Employer Government
LOW Consumers Provider
In the Corinthia Hotel London, the stake holder's analytic thinking is useful to analyse the
extrinsic environment. This analysis is used to provide the information about the various
influence as well as the power of each stakeholder along with their interest (Szymańska, 2018).
The stakeholders list of Corinthia Hotel are mentioned:
Employer: The Corinthia Hotel of London has enlistee the employer in various
department to provide impressive services. The employer play an important part in providing
impressive services to their customer and help in pull off the regular business utility. So, the
employees of the Hotel have high power on the establishment. An activity of the employee direct
affect the services offered by the Hotel. Employee have high power because they provide the
services directly to the consumers. They also have high interest in the establishment as the firm
provided the growth as well as career early opportunities.
Consumers: The individuals who use the service cater by the Corinthia Hotel such as
accommodation, hosting as well as dining experience are stakeholder of the organisation. It is
represented that the consumers of the establishment have less power and high interests.
Consumers have less power as well as do not involve directly in decision making in the Corinthia
Hotel but the consumer purchasing behaviour and purchasing power may impacts and form the
directions of the Corinthia Hotel (Yfanti and et.al., 2022).
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Government regime: The government authorities may have low interest on various
business operations but have high power as well as influences over the decision making of the
Hotel. The Corinthia Hotel make their decision on the foundation of government legislations
which includes The Wellness and Safety at Work Act 1974 and The Data Protection Act 201.
The Hotel comply with the different government legislations, which bend the power of
government authorities.
Provider: The Corinthia Hotel supplier should include quality products for supply and
quality of interiors, they provide to their customers. Further, accommodation, dining as well as
event hosting services should be of optimum quality. Scarcity of suppliers of Hotel itinerary that
are responsible for quality, reduces consumer power over decision making process
(Uwizeyimana, 2020).
PESTEL Analysis
Political factor: The brexit implementation affect the business of Corinthia Hotel. It
creates the cognitive factor in employment of workers from EU nation by the individual Hotel.
On macro-economic level, the Berixt impacts investment funds stipulation has a positive impact
on the UK currency.
Optimistic Impact: Brexits has positive impact on economical downturn in Britain, which is
important for the profitableness of the establishment.
Pessimistic Impact: Brexit affects created employee deficit of EU workers in gaining skilled
employer at every position of the firm (Sihombing and et.al., 2022).
Economic Factor: The principal economic factor which affecting the establishment is
the economical downturn in Uk. It affect the profitableness at the respective luxury Hotel.
Optimistic Impact: The Corinthia Hotel establishment has the possibility to focus on foreign
travellers as well as consumers in order to keep profitability during the economic downturn.
Pessimistic Impact: As domestic sales decreases, it affect the Corinthia Hotel negatively.
Cultural Factor: The cultural factor which affecting the individual establishment is the
changing buying behaviour of immature travellers along with the consumers towards rent based
settlement services that supply the gym services as well as home environment. This changing
outlook can affect the sales of Hotel (Yfanti and et.al., 2022)
Optimistic Impact: The Hotel can draw the new consumer by adding Gym work as a result of
this factor.
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Pessimistic Impact: The cultural factor shifts the consumer towards luxuriousness hotel which
affect the profitableness of Corinthia Hotel (Borres, 2020).
Technical Factor: The utilization of virtual view to give a client an cognitive content of
various services. The on-site environment is a improving valuable technology in the cordial
reception organisation and can affect the marketing activities of Corinthia Hotel.
Optimistic Impact: The positive impact is that the Corinthia Hotel can use this virtual reality
technology for marketing the Hotel experience to the consumers all over the worldwide by
giving a VR tours (Serfontein and Govender, 2020).
Negative Impact: The virtual reality technology requires the constant financial investment in
order to furnish the VR experience with dynamic climate and travel seasons. The VR technology
require investment in different services such as event hosting to various client like business as
well as family clients which promote burdens the establishment. This affects the organisation
negatively during an economical slowdown in Britain.
Impact of Environment: There is concern rises over the sustainability, as it require the
Corinthis Hotel to spend in environment friendly internal products and energy. As it affects the
trade name image and profitability of the establishment.
Optimistic Impact: The main optimistic impact of investment made by the Corinthia Hotel to
enhance the keep up as well as the brand image and also attract the environment friendly
consumers.
Pessimistic Impact: The pessimistic impact of this is that it require high financial investment
funds which leads to decreases the profit amount of the establishment due to increased the cost
on sustainability (Alshmrani, 2021).
Legitimate Impact: The Hotel establishment has to abide by with several legislations.
As it affect the regular business operations of the hotel.
Optimistic Impact: The positive impact is that the establishment is capable to do their daily
business operations in a lawful manner by adhering to various legislations.
Pessimistic Impact: The negative impact is that the comply with various legislations may be
delays which affect the daily business operations (Rouby, 2019).
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Analytic thinking of hospitality macro-environment in order to inform the strategic decision
making in relation to Corinthia Hotel in London
The impressive strategic management plan is essential to analyse the external business
environment. So, there are variables which affecting the attainment of strategic management plan
and that can be known along with the factors which assist in accomplishment of the strategic
objectives. The Hotels needs to build a business plan of action which attract the various
stakeholders. The stake holders with broad power and high involvement are the employee.
Therefore, the firm establishment needs to consider the benefits of employer in decision making
process of business plan of action. There are various factors such as political, economical,
environmental, social as well as technological can impact the organisation. The establishment
need to address the effect of Brexit on the firm. As it creates the deficit of skilled labour and also
find the ways to deal with the economical downturn in Britian. In addition the firm needs to take
opportunity offering by changing the social trends in immature travels to find the rented
accommodation to travel as well as using the UV technology in cordial reception marketing. The
firm also needs to focus on reducing the costs while keep the sustainability in order to survive
during the economical downturn in UK (Özbük and Coşkun, 2020).
Analyse the strategic capabilities of Corinthia Hotel
VRIO Analysis
Valuable Rare Imitable Organised
Financial
Resources
Yes yes Yes Yes
British Heritage Yes Yes Yes Yes
Human Resources Yes No Yes Yes
Quality product
offering
Yes Yes Yes Yes
Valuable: The Corinthia Hotel London, financial resources are blue-chip for the firm. As
it enables the establishment to acquisition the high quality material, technology along with hiring
the staff. This helps in providing the luxury hospitality experience to their guest of the
establishment.
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The British heritage related with the hotel's building as it is valuable and it attract the
consumer who wish to experience authentic British travelling cognitive content. The employee
employed for the Corinthia London are skilled, they help the firm in providing the first-class
services to the consumer from all over the world which make the establishment more valuable as
well as improve the brand image. The high quality services along with the products given by the
material company are valuable. As it helps the company in creating the good quality name in
their repective field (Malik, Ngo,and Kingshott, 2018).
Scarce: The British heritage which related with the company's building, as most heritage
hotels in UK are not existing in the city. The human resources of the company are scarce as it
need huge investment to fill every vacancy at the company in order to gain the high skilled
workers. The quality products offer by the company are scarce as other heritage hotel are not
able to provide the high quality services such as broad dining range as well as event hosting
work.
Imitable: The human resources of the establishment cannot resemble by the other
company as it need time and investment funds to build a loyal along with dedicated workforce.
In gain of sustainability and high quality products, the quality products offering by the company
cannot be resemble . As it is the sum of British Heritage brand name image, human resources,
financial capabilities as well as communication with the providers.
Organised: The Corinthia offering the high quality products is organised and also help
the company in order to secure the beneficial orientation in the hospitality market. This is
because the resemblance of this capability by cooperation between the intrinsic and extrinsic
parties such as employees and suppliers, optimal usage of financial resources and maintenance of
British heritage brand (Ferreira, Cardim, and Coelho, 2021).
Analytic thinking of internal environment of Corinthia Hotel inorder to assess organisational
capabilities, strengths and weaknesses
SWOT Analysis
Strengths Weaknesses
 The British Heritage is related with the
Corinthia Hotel.
 The advanced quality services along
 Due to lack of advanced technology,
the services provided to consumer are
not efficient.
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with the products are provided by the
establishment.
 Cost is increased due to sustainability
initiatives.
Opportunities Threats
 In order to attract the customers, need
to update the technological
infrastructure by providing the VR tour
and robot serving staff.
 With the help of digital technology, the
company has the possibility to reach
the global travellers.
 Changing behaviour of young travellers
consumer move away from Hotel
accommodation (Costantino, 2019).
 Low economic activity in UK.
Analysis of Porter's five forces
The porter's five forces is an impressive tool, it is used to interpret the competitive
environment of the company. The porter's five forces analysis of Corinthia Hotel is mentioned
below:
Buyers bargaining power: This part is concentration on the ability of buyers to either
control or increase the price of the raw material in order to addition profits from the firm. The
buying power of the suppliers is low in Corinthia Hotel. It is because of the suppliers scarcity of
the high quality raw materials to prepare the services of interior products. This empower the
company to gain the high quality products at reasonable prices (Maffie, 2022).
Consumers bargaining power: This part of the model focuses on individuality of
consumer bargaining power and their sensitivity in change brand. The consumer bargaining
power is high in case of Corinthia Hotel. As they have broad variety of options to select their
accommodation services in case of high prices.
New entrants threat: In luxury hotel industry, the new entrants threat may be low. As
high investment is needed to set up a small hotel and in order to contend with the Hotel huge
investment to build luxury hotel as needed.
Substitute products threat: In the Corinthia Hotel the substitute products threat is very
high. The rational motive of this huge threat is rise trend of dealing individuals property as
accommodation service. This is usual as many mutually exclusive to lavishness or average
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hotels. As the lavish properties can be rented in order to gain lavish stay in London in
comparisons to hotel stay.
Intensity of compitition: The respective Hotels face high competition from contrasting
brand which includes many luxury hotels such as The Marriott and The Lalit (Turunen, Eloranta
and Hakanen, 2018).
Strategies to assist the firm in order to gain competitive edge in the market
The business firm get help from BCG matrix in strategic planning by identifying
investment, end point as well as products improvement needs for product list of the company.
improvement The utilization of BCG matrix to Corinthia Hotel is mentioned below:
Project: projects are the services offered by the Corinthia Hotel, it has huge market share
but the growth of this services in the market is limited or declining. It includes the dining
services which are offered by the company as they are the reason for high quality and also helps
in gaining consumer to firm but have small scale growth potential. There is need to further
reduce the dinning services cost of firm, in order to maintain profitability along with securing the
investment for product development (Jarzabkowski and Bednarek, 2018)
The star: The start product is the one with advanced market share as well as product
growth potential of firm. This product is provided in the nuptials hosting services of the
company in Corinthia Hotel. The firm needs to focus on products development, as this product
has high market share along with high growth potential as well as this products is provided in
wedding facilities.
The Dogs: This products need to be discontinued as they are end of their life cycle. The
firm needs to get rid of the services which does not contribute to profitability and does not have
high expected growth as well as not beneficial for company.
Question Marks: At the start of the company journey this products is included. It is
require to decide the firm on product developments or cost diminution of such product in order to
change them into star or dogs. In order to gain the foreign consumers or enhancing global
marketing efforts the firm needs to centering on using VR technology at low price. But in case of
Corinthia hotel the VR tour technology is question marks, so firm require to focus on them
(Wang, Chen and Fang, 2018).
PART B
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Appropriate strategic directions evaluation for Corinthia Hotel
Strategies of Porter's generic
Expenditure leaders: In case of Corinthia Hotel, this strategy involve in cost reduction
of their services and gaining high profit margin by improving the measurability of services.
Distinction: The Hotel choose this strategy by providing quality services at reasonable
price.
Cost Focus: This plan of action is require in individual firm in order to reduce cost of
their work in specific market place.
Distinction focus: This strategy is require to adopt by the Hotel in order to developing
the different services for particular segment.
The distinction strategy is the most appropriate plan of action for the respective firm as it
facilitate the company to stand out from the competion as well as attract the consumers (Lim,
Zheng, and Chen, 2020).
Suitable plan of action recommendation for Corinthia Hotel
Ansoff Matrix
Market Perception: It is needs to addition sale of existing services to present target
consumer.
Product Improvement: It offer the new products to present consumer base of the
company. As the new products need to fulfill the consumer need and also solve their problems in
different manner. It includes contribution home environment as well as gym services.
Market development: The aim is to turn in new market with the present products. This
strategy is use by Corinthia Hotel in order to expand their Hotel in developing nations.
The Market development strategy is appropriate for Corinthia Hotel as it helps to face threat of
economic downturn in UK as well as increase the profitability (Elena, Milos and Eugene, 2021).
Preparation of Strategic Planning for Corinthia Hotel
Overview: In 1885, The Corinthia Hotel was established as the Metropoole Hotel and in 2011, it
was restored as luxury Hotel. It offer 283 forms of accommodation with mini bar and laptop-
compatible safe.
Mission statement: mission is to provide pleasure of experience to guest along with their
family values, it is possible because of staff dedication and sincerity to sustainability of Corinthia
Hotel.
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Visual modality: to become a leading brand name in the world-wide hospitality sector.
Objectives:
 To increasing profit
 To provide world class dining
Tactics:
 To offer home environment and gym services to consumers.
 To expand the firm in eastern developing countries.
 To reduces the various services cost (Sellberg and et.al., 2018).
CONCLUSION
From the above project reports it is concluded that the business firms require to construct
some business strategy in order to gain success. The macro as well as internal analysis plays an
essential role in strategic development of plan in order to develop the business firm. Side by side
the BCG matrix, Ansoff matrix as well as Poeter's generic strategy help the firm to identify the
strategic path of the company.
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