Impact of Macro Environment on Hospitality Business Strategies

This report analyzes the impact and influence of the macro environment on a hospitality organization and its business strategies. It also assesses the organization's internal environment and capabilities, evaluates Porter's Five Forces model, and applies different models, theories, and concepts to interpret strategic planning. The report focuses on the Burlington hotel, its mission and vision, objectives, and analytical frameworks such as PESTEL analysis and stakeholder analysis.

Hospitality Business
Strategy

Contents
INTRODUCTION.................................................................................................................................3
Main body.............................................................................................................................................3
LO1-Analyses the impact and influence which the macro environment has on a hospitality
organization and its business strategies.........................................................................................3
LO2-Assess of organization’s internal environment and capabilities..........................................6
LO3- Evaluating and implementing Porter’s Five Forces model.................................................9
LO4- Applying different models, theories and concepts to interpret strategic planning.........10
Conclusion...........................................................................................................................................11
References...........................................................................................................................................12

INTRODUCTION
The earlier history of the hospitality happening in 15000 BCE in France for obliging
the members. The hospitality industry is an extensive notion includes the hotels and motels,
restaurants and bars, casinos hotels. Hospitality industry is associated through amenity
industry and carrying out their consistent operations selfsame efficiently. To preserve all the
features, affect primary it is essential for the hospitality industry to formulate a detailed
business strategy which can benefit complete to attain further profitability (Ansari and et.al.,
2017). The report is based on the Burlington hotel established in 1972 recognized by the
nickname ‘the Burlo’. The hotel is chain of clayton hotel situated in Dublin, Ireland. The
hotel was developed by the Bernard McNamara. The hotel well-known for its fashionable bar
and restaurant by accommodating weeding’s, private functions, cocktail events with a
marvelous choice of fresh seasonal dishes, seafood etc. The foremost object of this report is
examining the micro environmental aspects in relation to this hotel. There is a modification
models applied towards these factors such as stakeholder analysis, PESTLE analysis. This
report also recognizes internal environmental factor, apply porter's five force model and other
model which are valuable in the expansion of the hospitality performance.
Main body
LO1-Analyses the impact and influence which the macro environment has on a
hospitality organization and its business strategies
Mission and vision- The mission statement of the Burlington hotel is to offer honest earnest
hospitality, that drive engrave an exclusive understanding in the emotion and mind of every
single visitor. The vision statement is to provide first choice to the customers by targeting to
generate everlasting memories through a consummate modified service. It considers the
values of moral principles through trust and integrity by creating a helpful working
environment.
Objectives- The purpose of the Burlington hotel was to offer customer services so that
visitors can get in touch with the hospitality industry to fulfill their needs. The other objective
is to offer quality products. The objective of hotel was to take huge progress in international
platform of marketplace and produce supplementary revenue over sales. In respects to client
it objective is to make faithful and pleased customers by defining their requirements and

perception. The Burlington hotel can accomplish its aims and goals by employment of
capable and expert individual in association at right time (Ardolino and et.al.,2018).
A strategy is denoting to the action plan that is executed inside the administrative
context for achieving the established of goals within a precise time period. It is an overall
supervision which is tracked by hospitality industry so that great performance can be
accomplished in forthcoming. By generating operative business strategy, a hotel is bright to
adopt what they have to complete so that high benefit entrants can be attained in relation of
incomes.
Strategic planning discusses to a procedure of association which recognizes the
customary of events, significances, resources, operations etc. to safeguard that the persons in
the organization work in the direction of mutual objectives. It is a controller instrument which
directs in policy employment and estimates the consequence of implemented strategy in
rapports of long-term goals. It includes several tactic methods such as bench marking,
business analysis, budget planning, and capability analysis and business models (Aureli and
et.al.,2017).
Analytical frameworks of the macro environment-
PESTEL Analysis- It is a strategic outline of handling instrument castoff for environmental
scanning features linked to the outside environment. Burlington hotel demeanor PESTLE
analysis to examine consequence of outside business environment issue on the working of
their hotel.
 Political factor- The hotel is affected by the government regulations, terrorist attacks
which declines the consumers. The Burlington hotel appeals global tourism having an
effect on hotel as government charge high tax for luxury categories. The other factors
include political stability and instability, trade regulations and restrictions persuading
the performance of hotel.
 Economic factor- The hotel is affected due to the change in economic conditions of
recession, inflation, interest rate and economic growth. The other factor is foreign
exchange rate which distresses the overseas tourist’s ability. The Burlington hotel
produces additional foreign currencies and also influenced by the economic cycle
comprising of economic growth (Chua and et.al.,2017).

 Social factor- The factors affecting the demand of product and services I the hospitality
industry it is essential for the hotels to provide the variability of facilities accordance’s
to the guest desire and needs. The aspects contain the modification in morals, principles,
alteration in outline of work and demographic changes. The major rivalry is Airbnb in
the business as the millennial relishes the lodgings accessible by Airbnb.
 Technological factors- The Burlington hotels are attractive technology responsive as
accepts the progressive technologies to upsurge the market progress. The hotel makes
the use of artificial intelligence and automation to increase the large customer base. The
Burlington hotel usages the CCTV camera to safeguard the client luggage, possessions
and offers the safety to visitor. The hotel delivers the online services and check in, check
out to the purchaser with the usage of technology. The facilities delivered are intercoms,
lifts, Wi-Fi services (Collings and et.al., 2017).
 Environmental factors- The factors are connected to the weather and climate
condition, population rate, pollution and other environmental activities affecting the
hospitality sector of hotels. The hotels are forced to reduce the carbon foot print owing
to the incapability of explorers as demand reductions. The factors comprise storms,
earthquake, flood, or heavy rain. The visitor needs the calming and sincere environment.
In the worst condition of the environment the taxes are pragmatic to advantage added
friendly and environment associated products. A lot of water, electricity and gas are
consumed by the hotels which leads to shortage in the resources.
 Legal factors- The factors involve discrimination laws, health and safety laws,
consumer rights having impact on Burlington hotel. It is essential for the Burlington
hotel to show the reality menu of food and beverages to the customers and must track
the innkeeper rules or wellbeing of the guests. The economy is boosted of the hospitality
sector by the tax deductions offered by the government (Cowan and et.al., 2018).
Stakeholder Analysis- Stakeholder analysis is measured as the combined portion of
shareholder administration outline which can benefit in identify the investor in terms of
business. The foremost aim to apply this analysis is to distinguish those shareholders who are
elaborate in the corporate directly and indirectly. The analysis is used by the managers of
Burlington hotel to recognize the participation of investors in their business in the aim if to
share issues and profits along with the activities with them. It comprises of two kinds of
stakeholder’s primary and secondary stakeholder. The direct contribution in the business
activities is considered to be primary stakeholder whereas having indirect involvement in the

activities of business are known as secondary stakeholders. Burlington hotel distinguish all
these shareholders in relation to power interest and their contribution has been explained
below-
 High power, highly interested people - This kind of stakeholders is highly energetic in
the corporate activities and grasp high power and interest. Burlington hotel contemplate
this kind of shareholders as a board of directors, top management and CEO (Hyun and
et.al.,2017).
 High power, less interested people - These sorts of shareholders have an authority to
rule the commercial but have less interest in their business activities. Burlington hotel
deliberate this form of stakeholders like investors, partnership & contractors.
 Low power, highly interested people - Individual’s stakeholders grasps little power in
operations with more interest level in the business activities. Burlington hotel consists
this sort of stakeholder in terms of employees, workers & leaders
 Low power, less interested people - These types of shareholders have little power and
little interest and their contribution in the business activities is identical negligible.
Burlington hotel contemplates this kind of investors as a labor and other outworker
(Kallmuenzer and et.al.,2018).
LO2-Assess of organization’s internal environment and capabilities
Internal analysis scrutinizes the strength and weakness of the hotels by defining the
resources, competencies and competitive advantage.
SWOT analysis- It denotes to methods of tactical planning cast-off for recognizing the
opportunities, weakness, strength and threats of the Burlington hotel to meet the rivalry.
Strength – The Burlington hotel receives high revenue margin as it wants gigantic wealth. It
takes an involvement in foreign economy as it appeals the customers by presuming many
facilities and amenities. The hotel also gets support from the hotel having strong brand image
and effective employee engagement.
Weakness- The huge rate of Burlington hotel decreases the client as they are not in position
to afford. The deficiency of deprived infrastructure and sluggish execution decreases the
productivity and growing as less clients are concerned which decline the worth. The
regulation of the poor information system is a weakness for hotel.

Opportunities- The usage of technology in Burlington hotel such as artificial intelligence,
automation, robotics benefits in fascinating the consumers and comforts their effort. It has an
opportunity of increasing international tourist travel by developing marketing strategies
which helps in expansion of market share (Luthra and et.al.,2018).
Threats- The Burlington hotel face the threat of growing rivalry among the hotels and
fluctuating travel outline of customers and their likings. Instabilities in worldwide traveler,
unbalanced economy are likewise threat for hotel.
McKinsey 7 S Framework- It defines to the tool used for examining the business design and
displaying its effectiveness.
 Strategy- It is very beneficial in preparing detailed strategy for the Burlington hotel to
improve the overall effectiveness value in the marketplace. It provides high quality of
facilities and advance integration to differentiate from the competitors.
 Structure - This outline is supportive to establish each and every function in an
organized manner. Burlington hotel follow definite administrative structure to have
effective flow of information and communication development among the managers,
leaders and employees. It makes a use of hierarchical structure (Nicely and et.al.,2021).
 System- The Burlington hotel develops a methodical system to complete the task in
systematic way. It consists of extensive range of system like consumer reservations
system, superiority regulator system, employee staffing and selection system, employee
performance appraisal system.
 Shared value- The Burlington hotel shares the specific values that is consider to be
beneficial in ethics and moral consideration which improves the market in the economy
of the hotel.
 Style- This framework is around adopting the operative management and leadership
style to improve the brand equity and image of the Burlington hotel and alos benefits to
the employees in the competition of the task. The collaboration and cooperation between
the operations is supportive and inspiring organizational culture among employees,
systems and departments.
 Staff – The framework focus on the staff members of the Burlington hotel in order to
improve their performance level by following specific strategies effectively. The staff
members are provided training to make acquainted them with the hotel and values. It
acquires the high number of the staffs according to the requirement.

 Skills- The Burlington hotel provides a wide range of skills to the employees to enhance
the productivity such as employees’ skills with high talent and capacities. In Skill
management training are arranged to deliver opportunities for growth and development
to employees (Remington and et.al.,2018).
VRIO Analysis- This examination is measured the analytical systems that can prime the
capitals alignment agenda which is obligatory to distinguish the suitable data that is desirable
to gross the proper decision. Burlington hotel used this utmost to progress the effective
Competitive strategy so that hotel can increases added Competitive returns. It is functional in
tactical management which signify the privileged situation of the hotel.
 Valuable- These possessions comprise the worth of the precise capabilities so that
Burlington hotel can preserve the power opportunities that are obtainable by the outside
& inner environment. The hotel provides high eminence of facilities and lodging
amenities to their customers and clients which helps in maintaining complete hotel
value. To regulate extra value, hotel administration runs detailed training gatherings
which can preserve the valuable resources. Rare - In this, those resources are measured which are controlled by about
establishments that is confined as rare resources. The resources of rare and value
together stretch provisional benefit to the hotel. The capable and skilled staffs are rare
resources for Burlington hotel as other hotels can also train their workers. The patents
are not accessible simply by entrants which is rare for hotel (Ro and et.al.,2020). Inimitable – The resources are rigid to imitate if whole resources are luxurious for
alternative hotel to obtain them. The financial resources to imitate of Burlington hotel
are costly which is developed by consuming enough revenue. The associates of the
further hotels can be skilled and expert which centrals to high imitate cost and other
hotels employs the personnel from Burlington hotel by covering improved working
situations, reimbursement packages and development opportunities.
 Organized- Resources are well systematized and accommodating to apprehension the
definite value in dissimilar situations. The hotel Manager of Burlington supports to its
staff members and progression all the culture and structures actions. Resources are
valuable, rare & rigid to imitate & also planned that comprises the long-term worth so
that whole can successfully accomplish the competitive lead.

Resources based view strategy- Resources based view describes the administrative context
of the hotel which regulates the strategic resources for accomplishing the competitive benefit.
To grow an advantage over rivalry and threats the Burlington hotel emphases on the
resources and possible those are previously accessible which kinds relaxed for manipulating
innovative opportunities. The RBV model comprises possessions model which is
characterized into tangible and intangible assets. It includes product presence, goodwill,
intellectual property, and trademarks which offers extensive period competitive benefit and
cannot be simulated by the entrants.
LO3- Evaluating and implementing Porter’s Five Forces model
The Burlington hotel put on porters five force model and appraises the rivalry in the
marketplace by exploitation competitive study to increase market share and income.
Porter’s five force model- It is a business investigation model that regulates the rivalry in
the organization and the level of effectiveness and strength, weakness of the company.
 Threat of new entrant- The Burlington hotel faced high threat of competitor as
accommodation generates origination of doing things in innovative ways which
pressurize to lesser the charges. The peril was confronted if there is directive funding
and high speculation wealth to the novel entrant. The hotel can face low threat of new
entrant by having substantial capital and resource investment product difference offering
exclusive understanding to the clients (Sakdiyakorn and et.al.,2021).
The situation can be tackled by the hotel if innovative and differentiated products are
developed by expenditure on marketing for generating robust brand uniqueness.
 Bargaining Power of Suppliers- The control was low faced by the Burlington as
substituting cost is little, absence of additional product and product variation. The charges
were extremely complex consuming the acceptable market information. The power can be
high for Burlington if scarce dealers occur and demand contribution is high.
The hotel can tackle this condition if Supply chain proficiency is enhanced by
structure great client base done promotion exertions which makes brand trustworthiness.
 Bargaining Power of Buyers- The Burlington hotel faces high power because of high
focused customer base. The buyer powers were too high as switching cost was low and
availability of many sellers.

To tackle this Burlington hotel can aim new market sector by marketing and
advertising strategies which centrals to upsurge in faithfulness and purchaser knowledge
by rising switching cost.
 Threat of Substitute Products or Services- The high threat of substitute was faced by
Burlington hotel as clients have the substitute to usage the product. The threat upsurge
when low-priced substitute product is accessible by another industry contribution higher
superiority same as Burlington hotel and switching cost is small.
The hotel can tackle is by reducing and emphasizing on the better services obtainable
than the obtainable substitutes. High worth and involvement should be benefit to the
clients for influence and switching cost must be elevated by at work on loyalty.
 Rivalry among Existing Firms- The rivalry for Burlington hotel is low as there are
limited number of entrants and high growth rate in industry. The products are extremely
distinguished by directing dissimilar segments and consuming market leader. The rivalry
can be high for Burlington if consumers are not reliable with the brands or market players
are deliberately assorted aiming in same market.
To tackle this hotel must emphasis on the wants and prospects of the clients for
distributing improved customer satisfaction through distinction. The hotel must cooperate
with entrants for growing market share size instead rival for small market scope.
LO4- Applying different models, theories and concepts to interpret strategic planning
Porter’s generic strategy- The context of policy defines how businesses increases
competitive advantage by using correct strategy.
 Cost leadership strategy- The Burlington hotel usages this strategy for conserving the
market direction by applying value chain management efficiently.
 Differentiation strategy- Burlington hotel offers novel and groundbreaking products to
the clients so that they can be distinguished from further entrants’ trade in identical
sector. This strategy benefits in increasing the client base by providing exclusive
highlighted products (Sann and et.al.,2020).
 Focus strategy- Burlington hotel accepts this policy for contribution greatest worth and
cost reduction. The value focus strategy provides importance on taste, size, quantity,
design and quality of the product by defining the purchaser wants and likings.

Bowman’s strategy clock – It is a model which benefits a corporate association in
discovering suitable strategic position inside a market grounded in the directive of price and
supposed value.
 Low price and low value added- It is less viable for the hotel as customer remarks
fewer value uniform if the charges are small and the products are not distinguished.
 Low price- Burlington hotel can spot itself as little cost leaders in marketplace by
means of cost minimal technique which upsurges the turnover in hotel by consuming
high sale capacity and retaining of the clients with more desirability.
 Hybrid- It mentions to the mixture of price decrease and product distinction where
price is viable taking low seeming value. This aligning strategy is operative for the
Burlington hotel.
 Differentiation- It describes the strategy where Burlington hotel distinguishes its
facilities from entrants by gathering high alleged value.
 Focused differentiation- This strategy can be operative for Burlington hotel as its
impartial to deliver superiority products and services for high market share.
 Risky high margins- This strategy can be used by Burlington hotel as it cut the price
and attains objective of worth of money. The risk is taken by the hotel.
 Monopoly pricing- This strategy is less active for Burlington hotel as the hotels have
control on pricing and product.
 Loss of market shares- This condition arises when the hotel is not in situation to bid
the product or services bestowing to the customer wants and necessities.
Conclusion
It has been concluded that the hospitality describes the connection among the visitor
and hotel staff member. Each and every hospitality industry emphasis on their business
strategy which can benefit to increasing further revenue lead and expand their marketplace
condition successfully.

References
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