Hospitality Business Strategy

This report focuses on the strategic direction and analysis of a hospitality business, specifically Mandarin Oriental International Limited. It includes a PESTLE and SWOT analysis of the organization, analysis of the competitive environment using Porter's five forces model, and recommendations for growth strategies. The report also discusses the importance of strategic planning in the hospitality industry.

Hospitality Business
Strategy

Contents
INTRODUCTION.......................................................................................................................................3
PART A.......................................................................................................................................................3
PESTLE and SWOT Analysis of the organisation and organisation capabilities.....................................3
Analysis the competitive environment using Porter’s five forces model.................................................8
PART B.......................................................................................................................................................9
Strategic direction for the selected organization......................................................................................9
Justify and recommended the most appropriate growth platform and strategies......................................9
Produce a strategic management plan with strategies, objective and tactics..........................................11
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................14

INTRODUCTION
A Corporation strategy can be described as a mixture of all of the decisions made and
behavior taken by the company to achieve its objectives and to protect a competitive advantage
in the market. In fact, the corporate plan determines what requires to be implemented to achieve
company targets, that also ensures that it helps executives make good decisions about recruiting
(and trying to fire) and allocating resources. It's the core of the company as it's the route map that
ultimately leads to better objectives (Jung and Yoon, 2018). Production of a corporate strategy in
the hospitality sector is one of the main organizational processes of hospitality sector. A hotel
management apply business method will reinforce its achievement and failing to implement the
goals of the enterprise. This report based on the Mandarin Oriental International limited which is
a Singapore based international hotel investment and management organisation. It is a part of the
hospitality industry and provides various services in resorts, luxury hotel and residences. In this
report consist of impact of macro environment, internal environment and capabilities of business.
Moreover, apply the Porters five forces model in the context of selected organisation.
Additionally, develop a strategic planning for the selected hospitality business.
PART A
PESTLE and SWOT Analysis of the organisation and organisation capabilities
Macro Environment: An external environment is the situation that occurs in the country
overall, instead of in one industry or market in general. The macro environment typically
encompasses developments in gross domestic product (GDP), inflation, wages and expenditure,
economic and financial policies. In contrast to a based on the performance business community,
the microeconomic-environment is considered equivalent economic cycle.
PESTLE Analysis: The PESTEL analysis is a tool designed by Harvard Professor
Francis Aguilar to perform a comprehensive environmental assessment of any industrial sector
for which knowledge is collected. This is a significant step in essentially creating a plan that can
manage the market efficiently to improve the probability of survival and performance of a
business. PESTEL is an amalgamation of initials of various factors that affect not only but the

overall company as whole political, economic, social, technological, environmental and legal
factors in particular.
Political: These are the powers of Mandarin Oriental Hotel Group A which appear to be
altered to base connections by government interference. The political factors might include
environmental rules, worker rights, duties, tax policies, trade controls, political stability and
legislative reforms. It is worth mentioning that nonprofits would be consisted where a
government is not inclined to include food and products. Singapore government also will provide
social welfare services to the hospitality sector by setting up the Singapore Hotel affiliation in
order to give its members voucher direct exposure to all equipment and systems, notified of
emerging innovations.
Economical: Mandarin Oriental International Ld can apply the economic aspect of the
nation including such rate of growth, leading forecasts of economic growth & business sector
including such annual growth of Hospitality industry, consumer expenditure, etc. to anticipate
the overall growth not only about the hospitality industry but also about the institution.
Incorporating those other variables, performance in manufacturing will last larger and
unavoidable (Cooke and et.al, 2018).
Social: These days, individual's opinions and expectations are evolving week by week
where businesses can sell products and services appropriately so that all operations can be
conducted and profitability is improved. The atmosphere and way of doing business in the world
affects an organizational performance in a setting. Mutually shared values and perceptions play a
major role in how advertisers at Mandarin Oriental International Ld can perceive a specific
economy's clients and how they should plan the marketing strategy for buyers in the Hospitality
industry.
Technological: Through the Tourism Technology Fund, which would be the help sustain
mostly by Singapore Tourism Board, the Singapore government focuses on operational efforts
aimed at accelerating technology usage and adoption in the business sector by providing social
assistance to technologies and services that would increase tourist satisfaction or improving
service productivity. The hospitality company has taken notice of developments in technology to
prevent obsolescence by technical predictions and expenditure. A company should not only carry

out technical analysis of the company as well as the velocity where the innovation interferes with
that business sector
Legal: As industry runs at various locations, there are indeed distinct laws and
regulations which need to obey that also promotes to efficiently finish the assignment and
manage the place. The Mandarin Oriental Hotel Group follow legal requirements include the
unique legislation and rules that could influence a company's operations. This also includes
previous and present regulations that normally impact the country in areas like marketing, wages,
and workplace safety. An organisation should recognize the effect of regional and foreign
legislation under which the organization’s business activities will originate.
Environmental: Environmental factors require all of those factors involved that have a
prolonged important influence and the proposal the more potential effects health concerns. These
considerations involve knowledge of the variation in environmental or changing climate or
geography. Environmental scanning such as internally and externally aspects is essential to
institution, as it affects an organizational effectiveness (Köşker, Unur and Gursoy, 2019).
SWOT Analysis: A SWOT analysis is intended to promote a practical, fact-based, data-
driven analysis at an enterprise, its strategies or company's strengths and limitations. The
company has to keep the assessment reliable by ignoring preconceptions creeds or mitigating
factors and concentrating on that rather than real-life contexts. It should be used as a reference by
businesses, and not inherently as a medication. Such as conduct Mandarin oriental Hotel SWOT
analysis:
Strength Weakness
 It describes the objectives and
circumstances of an institution that
also, when compared with its
competing companies, leads to efficient
and convenient.
 .It can be a talent, tool, picture, brand
reputation, relationship with specific
supplier or indeed any benefit
 Mandarin Oriental Hotel Group a
Weakness refers to situations where the
firm's organizational available
resources are smaller or insufficient
especially in comparison to other
organisation members.
 Different facets have a negative impact
on the organization’s overall

compared to its competitors that meets
consumer needs and wants.
productivity by trying to make it
tougher than its competing companies.
 The weakness may be leadership
expertise, services, financial capital,
business acumen and the poor brand
identity.
Opportunities Threats
 Mandarin Oriental Hotel opportunity is
an additional benefit and an
organization’s driving force. It is the
suitable time or scenario found in the
atmosphere and will assist the company
achieve its targets.
 Shift in needs and expectations of
people needing new hotel facilities.
Assessment to consumers is the
abilities necessary to operate the
company in staff members.
 It is an undesirable atmosphere
circumstance which makes it possible
for the business to accomplish its set
objectives.
 It is a condition that comes as a result
of changes that have happened in the
actual or distant climate, prohibiting the
enterprise from sustaining its presence
and dominance in the competitiveness
and is unfavorable for the enterprise.
VRIO model: The VRIO analysis is a strategic planning tool for analysis created to assist
institutions discover and defend the resources and competencies that help to improve the
performance over the lengthy period. When a vision statement is created, the template will be
brought into action and before the strategic management process. Such as Mandarin Oriental
Hotel apply this model to prepare strategic management plan.
Resources Valuable Rare Inimitable Organised
Technology Yes No No No
Brand image Yes Yes No No

Well design
infrastructure
Yes Yes Yes No
Customer
relationship
Yes Yes Yes Yes
Valuable: Materials are those requirements that are used to set up and manage the company that
also offers organizational economic benefit and holds a role. The advantages of Mandarin
Oriental Hotel are Technology, brand identity, well-designed facilities, and customer relationship
that utilize the company as appreciated for organization. Valuable technologies are difficult for
many hotels, targets consumers by delivering the highest quality and according to customer
preferences. Brand identity and renowned facilities are uses to build a decent perspective in the
minds of society who decide to select additionally (Lombarts, 2018).
Rare: Mandarin Oriental Hotel managers emphasize this component that develops a large brand
image that is seldom conceivable via their competing companies. Executives also analyze target
audience survey, ratings, etc. by creating effective user experience strategy that contributes to
analysis of evolving requirements and end-user requirements. To create a brand image by
providing unique products and services that influence customers, this is important for all
organizations. Selected hotel will take on economic benefit over the lengthy period as it
maintains the greater productivity by providing the highest quality of customer service.
Inimitable: This suggests that it is inimitable that can assist the corporation operate and boost
the higher revenue. Mandarin Oriental Hotel has well-designed architecture that is professionally
maintained by leadership and allows improve organizational efficiency by matching and
sustaining outstanding quality. The factor well designed structure is not considering as organized
manner.
Organized: Customer relationship is also another valuable resource and aspect to recognize even
when starting a restaurant and going to increase the effectiveness of the company. Mandarin
oriental Hotel is observed in different regions and destinations that can help to increase the
public image and acknowledgement for the organization to succeed. Strategic leaders considered

best all resources and improve the good value by implementing the economic benefit (Rather and
et.al, 2019).
Analysis the competitive environment using Porter’s five forces model
Porters five force model: Porter's five competitive forces that defines and analyzes
porter’s five forces model affecting any market and helping to identify the weaknesses and
strengths of a market. Study of the Five Powers is also used to describe the role of a market in
deciding corporate strategy. Porter's model has been applied to every sector of the economy in
attempt to comprehend the amount of competition in the market and to improve long-term value
of a firm. In the context of Mandarin hotel apply this model such as:
Competitive rivalry: Competitive rivalry between the firms allows finding the
profitability of a business sector in which companies compete tried to sustain their effect on the
business. The Mandarin Oriental Hotel Group A rivalry is also based on inclusiveness, industry
development, and market structure. Intense competition is company and market segmentation, its
advantages and disadvantages together with the methods, information about competitors
communicate.
Bargaining power of buyers: Buyers with tackle the bargaining power can strongly
impact the competitiveness of the distributors functioning on the marketplace through enforcing
conditions which are not very desirable in terms of price, quality or product for the vendors.
Hence the selection of customers often becomes essential for all the institutions to prevent the
issue of becoming heavily reliant on purchasers. They receive extra authority from of the amount
of enthusiasm and ability to concentrate of purchasers towards the item (Saner, Yiu and Filadoro,
2019).
Bargaining power of suppliers: Powerful manufacturers have the power to extract
substantial profit on their own by imposing premium prices while constraining the performance
and cost of the product or resources, or by passing costs to market participants. In particular,
many of the limitations placed by the distributors are including price increases even when
affecting the type and effectiveness.

Threat of substitutes: The Mandarin Oriental Hotel Group a replacement goods are a choice
offered at considerably good cost in the market. Some rather employers gain because
of technological advancements and innovativeness. Because the things manufactured by
businesses which always exist on the market and use the same innovation are substituted either
by product lines of the other corporation that really are considerably better in regard of cost and
quality and are generated from industries with substantial profits. Replacement products are
hazardous as the businesses are currently under pressure of being substituted.
Threat of new entrants: The development of obstacles for the new competitors to keep them
from joining an organization is in support of the businesses that remain on the market. The
institutions might be the significant to new or the firms trying to plan to broaden themselves in
the economy. The obstacles can be both civil and commercial (Gerdt, Wagner and Schewe,
2019). Besides that, the scale and the prestige of the firms currently present on the sector also
play a significant role. In addition, entry-related prices, availability of raw material, culture-
related obstacles and technological requirements often play an important role and can influence
the business choice of the new competitors.
PART B
Strategic direction for the selected organization
Strategic planning requires the programs and strategies that the company wants to
execute to move towards this vision of the world. The Vision Statement refers with what the
institution wishes to accomplish in the viable vision and noticeable to any outside country. It
really should be maintained with possible futures for change or developers for career
advancement. The Mission Statement is the actions selected which will encourage the company
to develop. It needs to be distinct from its rivals, and identify the market in which the company
wants to be. The objective of a company is specific legal types and the outcome which the
business is looking to develop. Mandarin Oriental hotel goal of the Hotel Group is 'to be known
as the greatest premium hotel company in the world' and its target is to 'increase to 10,000 rooms
the amount of bedrooms in service.' Their mission is to 'enjoy and fulfill their visitors entirely.
They dedicated to deliver a contribution every other day and improving regularly to keep them
being the greatest.

Justify and recommended the most appropriate growth platform and strategies
There are different models and principles suggested in industry for deciding market
objectives and priorities by designing the strategic strategy to cope with competition.
Ansoff Growth Matrix: It is also recognized as Product-Market Matrix, this
method is formulated by Igor Ansoff. It is also the matrix that supervisors use to analyze and
schedule the development of the global price sustainable development. This sequence is
implemented by Mandarin Oriental Hotel Group and Resorts supervisors to recognize the
independent and dependent threat that will need to be efficiently evaluated and quantified to
transform this into capital appreciation in long term.
Market Penetration: Mandarin Oriental Hotel uses this technique by offering its
new hotel facilities in the same market, which helps to improve the profitability of the company.
To sell its product, it needs to set low service costs that can help increase business performance
and deliver competitive advantages (Mehrez, 2019).
Product development: In order to choose the right alternative, this preparation is
needed by bringing new goods into established market. This can be done by Mandarin Oriental
Hotel by developing new hotel services that will help improve operational efficiency that can
sustain maximum employment.
Market development: It's the process by which managers concentrate on starting
operations to multiple places to build brand awareness and placement. Mandarin Oriental hotel
managers section their targeted audience into a select minority according to their culture,
demographic conditions and so on. These outcomes are satisfying customers’ needs by offering
them with recreational institutions to fulfill their wishes with a greater satisfaction.
Diversification: This is the mechanism through which executives seek to gain
customer base by launching new goods into emerging businesses. This is the smartest choice
implemented both for products and business advancement by an institution's board members.
Mandarin Oriental hotel managers could use this strategic plan to bring a few other
transformations by starting a new business to their specialized tools that improve competitor
sustainability initiatives on the international economy (Kwilinski, 2018).

From the above, Mandarin Oriental Hotel uses market penetration strategy to reap
the benefits of the comparative edge. This is a suitable, pertinent and acceptable method even
though individuals would like superior selection of low-cost providers that can give them greater
benefits and ultimately boost the performance of the company. Mandarin Oriental Hotel, which
sells their restaurant service providers and fresh produce products at a lower price, is out of them
that help to manage the business and achieve current profit margins.
Produce a strategic management plan with strategies, objective and tactics
Strategic management plan: A Strategic Management Plan (SMP) is a
memorandum used for communicating the organizational vision, assigning responsibilities,
focusing electricity, configuring funds, strengthening operations, ensuring that people in the
organization operate towards shared goals, agreeing on the expected results (Lee and Lee, 2016).
Procedures Description
Vision The Vision Statement refers to the company wants to do in
the viable vision and apparent to the outside environment. It
should be maintained with available pathways for
enhancement or software developers for performance
management.
Mission The Mission Statement is the tasks selected which will
encourage the company to develop. It has to be different
from other companies, and identify the company in which the
manager expects to be. Their mission is to 'enjoy and fulfil
their visitors entirely. They dedicated themselves to creating
a contribution each morning and improving constantly to
make themselves the best.'
Objective The objective of the business is different output styles and
the outcome which the business is trying to achieve.
Mandarin Oriental The goal of the hotel group is to 'be
known as the best luxury hotel company in the world' and its
aim is to 'increase the amount of hotels in service to 10,000

rooms (Özduran and Tanova, 2017).
Strategy Mandarin Oriental Hotel, by business operations
successfully, is a hotel that wishes to expand its organisation
effectiveness and purpose. This institution management team
follows various approaches that improve profits and
revenues.
Tactics This strategies is utilizes to operate the company by attacking
particular areas and consumers.
• Segmentation – The selected company is concentrating on
demographical differentiation where it provides applications
to various generations of clients according to their needs that
also aim to enhance amount of clients.
• Targeting – The target level is for citizens between 20 and
60 years of age who just want quality hotel facilities.
• Positioning – Maintains strong market viewpoint
Evaluation and implementation All actions and productivity will be evaluated using KPI and
performance metrics tool which can better decide the
productivity of the staff and maintain the overall quality
(Cranmer, 2017). Mandarin Oriental hotel operators utilize
their process and improve profit margins by trying to
compare with those that can assist to make the correct
decision.
To apply all of the Mandarin Oriental hotel methodologies
and tactics, conduct data analysis and use strategies that can
help to boost business performance. These techniques will
help perform the vacancy up in a particular period which
achieves the corporate objectives.

CONCLUSION
As per the above report it has been concluded that business plan for a company is very
critical because it helps to accomplish particular aims and targets. This is one kind of strategic
approach that helps to improve a company's effectiveness. It demonstrates the path to accomplish
targets and it's very hard to accomplish with other rivals on the marketplace without that kind of.
In this report to analysis the internal as well as external analysis of business apply the PESTEL
and SWOT analysis. To analysis the competition apply the Porters five forces and at the end
produce strategic development plan.

REFERENCES
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