Impact of Macro Environment on Savoy Hotel's Business Strategy

Hospitality Business
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
Discuss and analyse the impact of macro environment on the Savoy Hotel and its business
strategy.............................................................................................................................................1
Mission...................................................................................................................................1
Objectives and goals...............................................................................................................1
Define strategy........................................................................................................................2
Pestle analysis.........................................................................................................................2
SWOT analysis.......................................................................................................................3
Discuss and analyse the internal environment and capabilities of the Savoy hotel.........................5
McKinsey 7s Model...............................................................................................................5
VRIO Model...........................................................................................................................6
Discuss the competitive analysis using the Porter’s five force model.............................................8
Porter’s five force model........................................................................................................8
Ansoff Matrix.......................................................................................................................10
Discuss and apply the Bowman's theory to understand and interpret the strategic direction
available to the Savoy Hotel..........................................................................................................12
Bowman’s strategy clock.....................................................................................................12
CONCLUSION..............................................................................................................................14
References:.....................................................................................................................................15
Books and Journals...............................................................................................................15

INTRODUCTION
Business strategies and their analysis is very important in the current dynamic business
environment within which organisations of different industries operates because it help the
organisation bye by providing them different concepts of business strategy and their practical
implementation by which businesses can gain sustainable and potential position in the
marketplace (Moktadir and et. al., 2020) Hospitality sector there the main focus of the
organisation is to attract the guest and provide them with the best experience for which business
strategy helps them in gaining the business intelligence which provides them with competitive
advantage. Implementing good and effective business strategy for the organisation helps them to
make larger profit and to make the business sustainable for the long run. The present report is the
study of Savoy hotel a 5 Star luxury hotel based in London which comes under the UK
hospitality industry. The hotel is considered as the first luxury hotel of the Britain. The report
will discuss about the influence of macro environment on the hospitality industry using the
various analytical frameworks. Further in the report the internal environment analysis and the
strategic capabilities of the organisation are discussed. The report applies the porter's five force
model to analyse the competitive environment as well as the Ansoff matrix to understand the
strategies that are beneficial for the hotel. At last to understand the strategic direction available to
the hospitality organisation bowman strategy clock theory is applied within the report.
Discuss and analyse the impact of macro environment on the Savoy Hotel and
its business strategy
Mission
The mission of Savoy hotel is to become one of the largest premium luxury Hotel of the world
and lifetime treasure experience to their guest.
Objectives and goals
The objective of the Savoy hotel is to increase the sales of their restaurant by 20 % at the end of
this year.
The goal of the Savoy hotel is to convert all of their operations and services ecological and
environment friendly to reduce the carbon emission.
1

Define strategy
Strategy is an imperative part of the organisation in order to attain the desired goals and
objectives and pursue the consumers with the products and services offered by the organisation.
The strategy like product development will help the organisation to increase their restaurant sales
with new product (Khalifa, 2020).
Pestle analysis
Pestle Analysis in context of Savoy hotel to analyse the factors of macro environment and their
impact on hotels business operations is discussed below:
Figure 1: What is PESTLE Analysis, 2021
(Source: What is PESTLE Analysis, 2021)
P- Political The UK has stable political conditions and also there is the reduction in
the Tourism VAT which provides the opportunity to Savoy to increase
their sales and profitability with emergence of more consumers (Frederick
2