Hospitality Business Strategy: Analysis of Macro Environment and Competitive Forces for Hilton Hotels and Resorts

HOSPITALITY BUSINESS
STRATEGY

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART 1............................................................................................................................................3
Influence of macro environment factors over organization ........................................................3
Analysis of macro environment for strategic management decisions ........................................5
Stakeholder analysis.....................................................................................................................5
Analysis of internal environment capabilities utilizing McKinsey’s 7s model...........................5
Critical evaluation........................................................................................................................7
Competitive forces in the context of chosen organization...........................................................7
Strategy to enhance competitive edge and market position.........................................................8
PART B............................................................................................................................................8
Evaluation of the strategic directions...........................................................................................8
Justification of growth platform and strategy by relevant framework.........................................9
Applying range of theories, models and concepts and devise strategic plan for Hilton Hotels
and Resorts.................................................................................................................................10
Strategic management plan having tangible and tactical strategic priorities ............................10
Critique strategic directions, objectives and tactical actions for a hospitality organization......11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy is simply refers to the process which helps organizations to gain
maximum profit and get the easy way to accomplish such goals. There are having a bulk options
for the competitive actions and as well as the moves which are used by the businesses which
helps to gain more attraction from the customers and strengthening the performances as well
(Kano, Tsang and Yeung, 2020). In the current report the chosen hospitality industry is Hilton
Hotels and Resorts, it is a luxurious hotel and multinational hotel industry where it has very
expensive accommodations. The current report will explain the internal and external factors of
the hotel by using the tools which include the PESTLE and SWOT analysis. Along with the use
of McKinsey 7s Model it will also describe some capabilities. Also, the report will include the
porter's five forces model for the competitive advantage of the company. Lastly, it will include
the aspects which are related to such strategic plan, with the use of the Ansoff's growth matrix
and several models and theories which explains the strategic plan of the business.
MAIN BODY
PART 1
Influence of macro environment factors over organization
Analysis of the macro factors which is influencing organization with the use of the PESTLE.
PESTLE analysis
Political factor- hospitality is giving a major support to the government in the terms of
promoting such hospitality industry in which it helps to increase the growth of the country as
well. It may include the taxations, policies and the business regulations as well. This may creates
a positive impact on the Hilton Hotels and Resorts. It is basically shows up with the many
governments needs and wants which are basically influencing such needs.
Economic factor- it shows there is a direct term which is influencing such terms for the
industry to have an international as well as domestic market and that is making the hotel
expensive. Sometimes it may have a financial crisis which are negatively impacting over the
hospitality industry as after Covid-19 many things has changed the current financial term are also
changed as the hospitality industry are having in more loss (Valeri and Baggio, 2020).
Social factor- it shows that there are high demand for such changes related to the tastes
and preferences of them with changing in the current trend as well. In Hilton Hotels and Resorts
are creating an impact over the individual perception as well as the negative impact due to the

higher perspective as well. It involves the highest ratio for the employment which is creating the
positive impact also in the country.
Technological factor- this factor is significantly shown the correct option in which it
helps to know about the benefit of the organization through the online booking and the digital
platform which are having a proper customer preferences as well. It shows that the information
technologies are creating a way to have influences in the favour of the customer and shows the
luxurious experiences as well and such security and data management may create a challenge
sometimes which shows that the businesses are dealing with it.
Legal factor- this factor is playing the major role which are affecting the growth of the
places and this creates the benefits for the companies as well. It is basically the part of which it
has a positive impact over the companies as well.
Environmental factor- business requires many demands for the proper light and
sometimes it needs to have a proper resources in which it puts the higher impact over the
organization as well. It basically shows that the hotels are in a pressure with reducing the carbon
footprints which shows the better form of the influences as well.
SWOT analysis
Strengths- there are the brand recognition which are positively influencing the factor for
the Hilton Hotels and Resorts which are introducing the positive aspect for the customers as well
Weaknesses- there are many unfavourable policies and such taxations which is the major
weakness for the Hilton Hotels and Resorts, it shows the seasonably changes are often makes the
industry very vulnerable (Cescon, Costantini and Grassetti, 2019).
Opportunity- it specifically shows that the relationship managers are playing the
important role in the having a better development in which it shows the relationship with the
customers as well as the organizations which has a major chance in which it needs to have a
more collaborations with the fashion bloggers which increases the demand of the Hotel.
Threat- in today's market era there are too much competition which are basically creating
a impact form increasing the competition in which it is significantly rising up the threat for the
organization as well. It shows that the change is flexible as it is also moving forwards towards
their business deal in different manner as well.