Analysis of Macro Environment and Strategies in Hospitality Business

This report analyzes the influence of macro environment on a hospitality company and its strategies. It includes stakeholder analysis, PESTLE analysis, and application of Porter's five forces. The report also discusses internal capabilities and environment using frameworks like Ansoff Matrix, VRIO Analysis, and McKinsey's 7s.

Hospitality Business
strategy

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analysis of the influence and impact of macro environment on the company and its
strategies......................................................................................................................................3
Stakeholder analysis....................................................................................................................3
PESTLE analysis.........................................................................................................................4
TASK 2............................................................................................................................................5
P2 Analyzing internal capabilities and environment ofthe company using different framework. .5
TASK 3............................................................................................................................................8
P3 Application of Porter’s five forces to evaluate the competitive environment of company....8
TASK 4............................................................................................................................................9
P4 Application of concepts, models and theories to devise the strategic planning for the
company.......................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and Journals....................................................................................................................12

INTRODUCTION
Business strategy is a field which helps out to incorporate all the organisations to implement
the ideas through which the competitors can be framed out in regards of all the products and
the services that are being applicable (Maier,and Ohara, 2017). Hospitality sector has the
immense growth and competition is there are so many tourists who are being rapidly
increasing the revenues. To try to promote the maximum areas and growth through which the
business strategies can be implemented in all the areas. This report will cover Marriot
Hospitality group UK. It is a luxury hotel it frames out to maintain a comfort environment to
the customers. It will cover all the internal and external environmental factors by implicating
the theories by serving the models and all the strategic planning that are being needed in
organisational growth.
TASK 1
P1 Analysis of the influence and impact of macro environment on the company and its strategies.
Stakeholder analysis
In a project all the people connected internally to the project and work as a team who are
affected from the project are stakeholders of the organisation. Stakeholder analysis is the process
of identifying stakeholders from before the beginning of the project and grouping them
depending on their rank of participation (Obeidat, and et. al.,2017). The steps of analysing the
stakeholders include, initially identifying the appropriate stakeholders for the organisation. In
this case, some of the potential stakeholders are hotel owners, franchise owners, suppliers,
associates, organisations and many more. Next step is to prioritize these stakeholders by using
the power index grid. Last step is to finding out ways to communicate with them and win a buy-
in from each type of the stakeholder.
Name Role Power Interest Power interest
matrix
Stakeholder 1 Franchise owner High High Manage closely
Stakeholder 2 Supplier Low Low Monitor
Stakeholder 3 Customer High High Manage closely
Stakeholder 4 Employee Low High Keep informed
Stakeholder 5 Community organisations High Low Keep satisfied

PESTLE analysis
Political: Marriott hospitality group works on international level having its presence in
lots of countries in the world. It is even looking forward into acquiring different chains of hotels
to cut down operational costs for both but the Marriott group is still not sure that this decision
will help in increasing the company’s revenues (Bavik, 2020). The profits of the Marriott have
gone down because of some terror incidents. Any of such incidents on the hotel chains of
Marriott will have an impact on the reputation of the brand and will thus affect the customer base
of the Marriott. The existence of Marriott is in countries which work on high corruption level but
following the rules and regulation is a must. It makes the organisation to be difficult to work in
such political conditions. The uncertainty in the political landscape of the European union has
affected the business of this hospitality organisation.
Economic: The changes in the economies of the local countries in which Marriott
operates have an impact on the performance of the organisation. The changes in the currencies
and exchange rates have made the company very difficult to earn profits. The constant
fluctuations in the currency make it difficult for the organisation such as Marriott to estimate
their values and assets. The restrictions on spending limit and the cuts have impacted the
business of Marriott adversely. Fall out in the economy of the country will impact the profits of
the Marriot as they provide only luxury and premium services. On the other hand their services
from the select category which offers homely experience has helped the company flourish even
during the time when the economic graph was going down (Jawed, and et. al.,2021).
Social: This organisation has suffered a lot due to the terrorism activities. Even when the
air ticket is cheap and the oil prices are low, people still are do not trust the environment of the
place to go and enjoy their vacations. Customers spending on the hotels have decreased the in
large amount where it was expected to increase in the luxury segment.
Legal: This covers out all the laws and regulations which is being imposed by the
government on the tourism sectors. As married is dealing in all the international segments
globally and tries to implement all the laws and regulations that are being made by the

government with following the customs. It focus on the development of the organisation in a
better way to provide the best facilities for the customers in their attending areas (Ye, and et. al.,
2019).
Technological: This is mainly all the innovative and the advancement that are being given
by the company for the development and also the digitalisation and the performance through
which it can radically change the areas. Marriot international group helps out to maintain the
online platforms through which all the digital transformation and the upgradation can be framed
out. The digital payments kills the serving facilities in all the managers can be served for the
customers.
Environmental: it is mainly the sustainable development and all the environmental
condition that are being raised in all the areas and segments by the companies. Marriot deals with
an effective campaigns in the method through which they used to protect the global environment
and provide the circumstances through which all such activities can be framed out in a better way
so as to impact the areas of company And it’s of south to give a positive impact to all the
customers.
TASK 2
P2 Analyzing internal capabilities and environment ofthe company using different framework
Ansoff Matrix
For all the internal factors the environmental approach are being made to analyse the objectives
and the capabilities through which the business strategies can be improvised and modified. All
such approaches in the market area can be raised through the competition and various targeting
areas of customer base (Burke.and Hughes, 2018). Marriot hospitality group covers out
following environmental analysis like it helps out to know the challenges with proper growth in
the planning that is being required in the business practises and activities. It covers out all the
strategies that are being made in order to expand the organisation and to maintain its growth in
the future advancement. Marriot hospitality group used to make strategies through which we try
to develop all the skills and the working sectors which are like:
 Product development: The strategy helps out to develop a new product that can be
introduced on the existing market segments. Through which all the customers can be

gained and the attention of the forgoing customers can be taken. Marriot hospitality group
can implement out the strategy by applying new services in their region
(MUHAMMAD,andLambu, 2018).
 Market penetration: It is mainly the expansion of market in all the existing areas so as to
promote and produce various goods and services and increase the segment of sales.
Marriot hospitality group can maintain their customer enhancement by increasing all the
approaches in the market segments and developing a proper services for the customers.
 Market development: This mainly source out a method through which all the existing
goods and services can be given to the customers by entering in a new market areas.
Marriot hospitality group can thereby maintain new areas in expansion for their hotel
groups so that customers can be attracted and they can get a loyal customer base in the
company for a betterment and revenue generation.
 Diversification: This mainly frames out all the strategies that has been taken and a new
market segment with a new products. Marriot hospitality group can implement out the
customers by providing the adequate amount of facilities and you improvise techniques
through which the business can be enhanced and it can expand their hotel industry in
various segment in the eyes of customers.
Resource based view: This frames out all the organisational areas and utilised process
through which the optimum exploitation of the resources can be made and sustainable
advantages in all the resources competitive variant can be framed out. It implicate the
advancement for the customer in all the sectors. There are mainly two important kinds of
resource based view there like tangible which have all the things embedded in at like land,
machinery and intangible that covers the intellectual properties.
VRIO Analysis
It is mainly the resources that are being made for all the competitive advancement and
edge in order to maintain the growth of the company as married hospitality group covers the
following process:
 Valuable: It frames out all the functional areas in the companies through which the
proper resources can be valued in a better way as married hospitality group try to

implement their financial structures by managing all the investment in a proper way
so that the profit can be attained and maximum opportunities for the customers can be
gained out. They try to invest and make new projects in segments for the customers
(Zhou, and et. al., 2021).
 Rare: It covers the resources that are being important for the business practises as
married hospitality group employees so skilled staff through which date usually get a
proper management system in a best optimum quality to be served to their customers.
The implement the training sessions and all the various programmes for the growth.
 Inmitable: This maintain the financial resources through which the profit for the
competition in the market H can be maintain married hospitality group covers out the
new changes that are being needed in the market areas and also the competition with
the advancement in investing the technological aspect so that customers can be
reached by fulfilling their maximum demands.
 Organised: All the resources for the business can be organised by the company by
allocating on all the suppliers and stakeholders help. Marriot hospitality group invest
in all the large segment of market through their stakeholders in suppliers as they have
a larger group of network zone in order to cover the advancement and approaches
made by the customers in all the sources.
McKinsey’s 7s
This is mainly the model which provides the elements through which all the strategic
approach is in the business environment can be maintained. As for Marriot hospitality group
it is being mentioned below:
 Strategy: This provides the organisational implementations through which the
advancement in the competition edge can be maintained through proper positioning
and also to serve out the optimum qualities. Marriot hospitality group provides the
services and innovative approach to their customers.
 Structure: it covers the corporation through which all the important segment It helps
out to maintain the structural approach. Marriot hospitality group frames to motivate
all the employees by providing training sessions and various increments and
promotions.

 Shared values: these are mainly the positive approach is with the ethical aspects and
moral conduct that are being implemented by all the organisations India working
areas. All the ethics in the models are being important as married hospitality group try
to frame the positive approach regarding their working areas and providing best
optimum quality and services to their customers (McLeod, 2020).
 Skill: Marriot hospitality group covers the best staff and also skill them regarding
their goals and objectives and targets through which they try to maintain their
customers demand and also take their valuable feedback in order to improvise the
services.
 Staff: It implents out the work force through which the company used to maintain the
employees who are being functioning for them in the organisational Marriot
hospitality group has the maximum employees who used to work with a well trained
professional manner.
 System: All the growth in various areas through which the business can be attracted
and maintain is being needed. The proper qualities and all the technical advancement
in the performance can be maintained by the company. Marriot hospitality group tries
to serve a proper function.
 Style: Marriot hospitality group covers Lassiez fair style of leadership through which
the try to maintain the implementing decisions by the head and managers.
TASK 3
P3 Application of Porter’s five forces to evaluate the competitive environment of company.
Porters five forces provides the analysis through which the industrial approach and the
strength of the companies with proper implementation can be framed out it helps out to know the
advancement and the need to be change in the organisation. As for married hospitality group it is
being given as follows:
 Competitive rivalry: As for the new competitors used to approach in the market with the
same tactics in lower values it create a threat to the company. As for Marriot hospitality
group that it is moderate as they have a brand image and also the loyalty of customers in
that segment.
 Threat of new entrants: This mainly arise when new company used to come with same
powers in allocations and when the company try to enter in a new market segment the

threat for married hospitality group is moderate as a try to maintain high investment on
the loyalty of customers and by providing adequate facilities (McLeod, 2020).
 Bargaining power of customers: Marriot hospitality group have the low force of
bargaining power in the customer base as they used to have proper strategies and the
pricing policies as a try to cover the luxurious environment and provide the facilities in
adequate medium.
 Bargaining power of suppliers: it provides all the abilities that are being maintained for
the price values in the supplier range. Married hospitality group implements out to have
various suppliers and they also have the production of the resources in a maximum
manner so the power force is quite low.
 Threat of substitutes: It maintains out all the substituting change in the market factors in
all the availability. Married hospitality group covers out all the image and all the ranges
of product that are being available for the loyalty and retention.
TASK 4
P4 Application of concepts, models and theories to devise the strategic planning for the
company.
Strategic planning provides the implementation of important theories and models in order to
maintain the strategies for the business practices and functions. Marriot hospitality group have
the following planning and approaches they are like:
 Cost leadership: It is mainly a low-cost procedure through which the delivery in the
market segments can be reduced the price and also maintain the revenue stability for the
customers. Marriot hospitality group ranges out to maintain stability by providing the
optimum services and revenue centration for the company(Horng, and et. al.,2018).
 Differentiation: This is mainly the techniques in which all the innovative ideas and
approaches can be made and the value for the customers can be redeemed. The essential
segments for the business practices and demands to be fulfilled for the customers can be
framed out. Marriot hospitality group can try to innovate the approaches for getting the
loyalty base of customers.
 Focus: all the services in various cost and quality areas with the differentiation segments
can be maintained through the quality of framework. Married hospitality group tries to

provide the segments of market in the customer humour areas in all the innovative
methods for the service and segments (KUMAR, 2018).
Bowman’s strategic clock
There are mainly have all the corporation and the positions through which the strategical
areas can be frame it provides eight strategies through which the edge in the market and the
competitive framework can we cover out. Marriot hospitality group covered following strategies:
 Focused differentiation: This provide all the high-value of offerings through which the
implementation in various programmes and customer segments can be given. Marriot
hospitality group can implement it for the profit and all the long processes.
 Hybrid: It provides the combination in order of which the pricing areas can become
covered out and also competitive areas of offering can be added up. Marriot hospitality
group provides the volumes through increasing the sales.
 Monopoly pricing: It cover the single strategy of business through which all the market
areas can be controlled in the pricing segment.
 Low price: This provides that a company can try to maintain lower pricing for all the
customer base so that they can attract more customers towards their industry. Married
hospitality group can implement such strategies through which customers can be retained
in maximum volume.
 Differentiation: It provides the edge in the competitive areas and services that provide
the high serving values. Marriot hospitality group approach to the customers for the
loyalty base and also retained the services in the optimum market segments.
 Low price and low value added: This is mainly the offering through which all the low-
cost value in the quantities in the sale area can be offered and framed. Married hospitality
group provides segment through which the customers can be attracted and the framework
of market can be calculated.
 High-risk margin: All the high facility of risk and perceived areas of values can be
implemented. Marriot hospitality group can try to generate all the profit in the medium.
 Loss in market value: It covers the good position through which all the existing market
and the shifting can be framed for the market areas (Bortoluzzi and et. al.,2020). Marriot
hospitality group can try to overcome the difficulties and follow the change in the market.

CONCLUSION
It is concluded from this report that business strategy implements out the motivation in the
functions through which a proper implementation of growth in the market can be framed. It helps
out to identify the abilities and the skills in all the environmental sectors. McKinsey, Ansoff,
Bowman’s helps out to analyse the features in external areas. Porters five forces provides the
competition in all the analysis of industrial segment further more it is also analysed that proper
strategies can be implemented for the organisational growth.

REFERENCES
Books and Journals
Bavik, A., 2020. A systematic review of the servant leadership literature in management and
hospitality. International Journal of Contemporary Hospitality Management.
Bortoluzziand et. al.,2020. Effect of online hotel reviews on the relationship between defender
and prospector strategies and management controls. International Journal of
Contemporary Hospitality Management.
Burke, R.J. and Hughes, J.C. eds., 2018. Handbook of Human Resource Management in the
Tourism and Hospitality Industries. Edward Elgar Publishing.
Horng, and et. al.,2018. Developing a sustainable service innovation framework for the
hospitality industry. International journal of contemporary hospitality management.
Jawed, and et. al.,2021. Crisis, firm characteristics and stock performance: evidence from
Hospitality and Tourism sector. Tourism Recreation Research, pp.1-18.
KUMAR, S., 2018. CHALLENGES FACED BY AN ENTREPRENEUR IN RECRUITMENT
AND SELECTION PROCESS IN HOSPITALITY INDUSTRY OF RAJASTHAN: A
STUDY OF 3 STAR CATEGORY AND RESIDENCIES HOTELS, UDAIPUR.
Maier, T.A. and Ohara, F., 2017. Distribution of hospitality products. In The Routledge
Handbook of Hospitality Marketing (pp. 116-131). Routledge.
McLeod, M., 2020. Understanding knowledge flows within a tourism destination
network. Journal of Hospitality and Tourism Insights.
MUHAMMAD, A.S.A. and Lambu, I.B., 2018. AN ANALYSIS OF TOURISM AND
HOSPITALITY POTENTIAL ON EMPLOYMENT GENERATION IN
METROPOLITANT KANO STATE, NIGERIA. FUDMA JOURNAL OF SCIENCES-
ISSN: 2616-1370, 2(2), pp.212-222.
Obeidat, and et. al.,2017. Factors affecting strategy implementation: A case study of
pharmaceutical companies in the Middle East. Review of International Business and
Strategy.
Ye, and et. al., 2019. Enhancing customer trust in peer-to-peer accommodation: A “soft” strategy
via social presence. International Journal of Hospitality Management, 79, pp.1-10.
Zhou, and et. al., 2021. Understanding online travel communities: a literature review and future
research directions in hospitality and tourism. Journal of Travel & Tourism
Marketing, 38(2), pp.194-212.