Hospitality Business Strategies

Hospitality Business
Strategies

Contents
Introduction.................................................................................................................................................3
P1 to analyse the impact and influence of the Macro environment on the chosen organisation and its
strategies..................................................................................................................................................3
Macro environment frameworks..........................................................................................................4
P2 what are the capabilities and internal environment of the organisation by using different framework
.................................................................................................................................................................5
P3 apply five forces of porter's and evaluate competitive forces in the Marketplace...............................8
P4 what are the different models, concepts and theories to interpret strategic planning of the
organisation.............................................................................................................................................9
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

Introduction
Hospitality industry is the broad category of fields which includes the service industry
such as lodging, food and drink services, event planning, theme parks, travel and tourism. It
includes hotels, tourism agencies, restaurants and bars. It is important for every business
organisation to develop a master plan which can be used by the managers to attain their common
goal of the organisation in an effective manner (Araújo, 2017). There are several types of
strategies which can be adopted by the company in order to survive for a longer period of time.
The report is being discussed about the hospitality business strategy based upon Holiday Inn
hotel. The hotel was founded in the year of 1952 by Kemmons Wilson. Headquarter is located in
Denham, Buckinghamshire, United Kingdom. The report discussed the impacts of the macro
environment on the business strategy and also determined the external environment which affects
the functions of a business. The internal factors are also evaluated with the help of Porter's five
forces and many other models, theories and concepts are discussed in strategic directions.
Main body
P1 to analyse the impact and influence of the Macro environment on the chosen
organisation and its strategies
PESTEL analysis model
It is the Framework which can be adopted by the organisation in order to determine the
external affairs which has an impact on the working of the organisation. Holiday Inn has a
PESTEL analysis model is discussed below:
 Political factors: the government of the United Kingdom has a strong hold over the hotel
industry. If the political party is in power then they can set a travel ban in any of the
places which could hurt the duration and hotel industry immediately (Ardolino and et. al.,
2018). This resulted in the new amount of loss to the company. The government also
controls tax reforms. Luxury and high grade hotels Food Court that saves towards
building more accommodations for the guest which helps them to provide better services
to their customers.
 Economical factors: hospitality is one of the biggest investment sectors for global
investors especially within the United Kingdom. Holiday Inn is also a very famous brand

in the competitive market which attracts the customers to take more services from the
organisation. In the current scenario due to this pandemic situation because of covid-19
the tours and travels sector has majorly affected which resulted in the loss to the hotels.
 Social factors: there is a biggest competition in the competitive market as the travelers
have many options in order to select the services from a particular place so it is very
difficult for them to choose to attract and hold the customers for a longer period of time.
Holiday Inn often runs out of the rooms during the peak season and when they don't they
check up the room prices in order to earn more profitability from the competitive market.
 Technological factors: it is very important for an organisation to adopt technologies in
order to provide better services to the targeted customers. The organisation can also use
social media platforms in order to promote their goods and services into the competitive
market which helps the customers to become aware about the offered services by the
organisation.
 Environmental factors: it is very important for the organisation to provide their services
with respect to the local climatic condition in the respective place. When vacations are
going on, customers want to stay somewhere warm and relaxing so that they can enjoy
their vacation. This isn't something hotel owners can control but they have to understand
seasonal differences before pricing their room and adjust accordingly.
 Legal factors: as it was already known that Holiday Inn used to provide their services
around the globe. The crime rates on the total profit as everyone wants to stay somewhere
safe. The high crime rates will result in trouble to survive in the place and the customers
want to stay at such locations. It is important for the chosen organisation to ensure the
Welfare and safety of their guests in their property while following every rule and
regulation with respect to the country.
Macro environment frameworks
Stakeholder Analysis
Stakeholder analysis refers to the procedure of finding those persons which can have an
impact or get impacted by the working of the organisation into the competitive market. It is very
important for the chosen organisation to analyse with respect to the interest of the customers and
the company can know about the level of competition which is present in the competitive market
so that they can determine several strategies in order to overcome the competition (Del Vecchio