Hospitality Business Strategy: Impact of Macro Environment, Internal Capabilities, and Porter's Five Forces on InterContinental Hotel Group

Hospitality business
strategy

Contents
INTRODUCTION...........................................................................................................................1
PART A ..........................................................................................................................................1
P1 Impact and influence of macro environment.....................................................................1
P2 Internal environment and capabilities of given hospitality organisation..........................4
P3 Application of porter's five force model ..........................................................................6
Part 2................................................................................................................................................7
P4: Application of a range of theories, models and concepts on the InterContinental hotel
group Plc : ..............................................................................................................................7
CONCLUSION................................................................................................................................9
References:.....................................................................................................................................10

INTRODUCTION
The term strategy is concerned with the appropriate plan that is made inside a business
organisation in order to achieve different objectives so that a common goal can be achieved
effectively and efficiently by the firm (Yuan and et.al., 2020). Hospitality industry is concerned
with service sector industry that deals in various sectors such as lodging, planning of events,
services related to food and drinks, tourism departments et. In order ton improve status and
profitability of an organisation making a strategic plan plays an important role for the firm and
are made by professionals of the firm with high concentration and creativity in order to survive
in a high competitive market. For a better understanding of the report a firm InterContinental
Hotels and resorts is taken under consideration which is a British luxury hotel brand founded in
1946 by Juan Trippe. The respective firm consists of a wide range of brand coverage all over the
world with 210 InterContinental hotels with more that 71,000 rooms. This report will be a brief
discussion on internal and external environment of a business which will be analysed through
appropriate models such as SWOT and PESTLE will be used. Also in this report, internal
capabilities of the business and factors affecting the business's existence will be discussed with
appropriate models and theories.
PART A
P1 Impact and influence of macro environment
Terms macro-environment is concerned with the factors and conditions that exists in a
particular economy's link with the business cycle in an individual business area. Impact of macro
environment in context to InterContinental Hotel is determined as:-
PESTEL Analysis
PESTLE analysis is a strategic framework that is utilised by managers of different organisations
to analyse different internal environments and its impact on business organisations (Matovic,
2020). Herein InterContinental Hotel, PESTEL analysis of respective firm is given below as:-
 Political factor- Political factors are the factors in external environment of a business
that covers political influence on business operations of a firm (Madsen and Grønseth,
2022). In reference with InterContinental Hotel, factors such as change in leadership of a
nation, corporate taxation, trade dispute policies are the some of the political factors that
affects the firm's working.
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 Economic factor- These factors are concerned with the factors that affects a business's
operations economically such as interest rates, inflation etc. In context to InterContinental
Hotel, factors that affects business's presence economically are nation's GDP, interest
rates, employment rates, inflation in an economy, foreign exchange rates etc.
 Social factor- These are the sociological factors of a particular sector in an economy that
enhances or affects the profitability of a business. In reference with InterContinental
Hotel factors such as buying power of its targeted customer base, lifestyle trends,
consumer beliefs, conditions in a demography affects the working of the organisation.
 Technological factor- Technological are the technical related issues or external factors
that affects a business's working and their productivity. Factors that affects a working og
InterContinental Hotel are automation technology, technological innovation in industy or
market, digital use in operation.
 Environmental factor- These are the factors that considers environmental factors such
as climatic change pollution in ecosystem etc. that affects the working of an organisation.
In reference with InterContinental Hotel, the environmental factors such as population
rate, use of plastic and climatic changes are the factors that highly affects the business's
profitability.
 Legal factor- Legal factors relates to the rules and regulations in industry and a nation
that are related to a firms activities. Factors that affects InterContinental Hotel's
operations are taxation policies, industry regulation policies, employment and consumer
rights.
SWOT Analysis
It is a framework used by managers or professionals of different companies in order to
analyse internal environment that can be used by them in order to to gain competitive advantage
and enhance better profitability by organisational operations (Benzaghta and et. al., 2021). In
reference with InterContinental Hotel, SWOT analysis is shown as:-
 Strength- Strengths are the factors in internal environment of a business that signifies
business powers or plus points that they have over other rivalry firms (Teoli, Sanvictores
and, 2019). In context to InterContinental Hotel , strengths of the firm can be identified
as:-
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