Hospitality Business Strategy

Hospitality Business
Strategy

INTRODUCTION
Every industry focuses on their business strategy which can help you to gain more profit
advantage and improve their market situation effectively. Hospitality industry is connected with
service industry and performing their regular operations very effectively. Hospitality industry is
more concerned about their customer because the considered that customer is their goodwill. In
hospitality industry there are various type of sectors such as accommodation sector, hotels,
restaurants, fast food chains, takeaways, Leisure & outdoor catering, retail & food store and
business & industrial catering. To maintain all the factors affect early it is necessary for the
hospitality industry to prepare a specific business strategy which can help full to obtain more
profitability. For this report InterContinental hotel is considered which is most famous luxury
hotel that found in 1946 and it's headquarter situated in Denham , UK. The main motive of this
report is analyzing the micro environmental factors in term of this hotel. There is variance
models are apply tuna lies these factors such as stakeholder analysis, PESTLE analysis. This
report also identify internal environmental factor, utilize porter's five force model and other
model which are beneficial in the development of the organizational performance(Aderounmu
and Adepoju, 2019).
MAIN BODY
P1 Apply appropriate frameworks to analyze the macro environment for a given organization-
PESRLE Analysis
This analysis is helpful to identify the impact of external environmental factor on the
business. Intercontinental hotel conduct PESTLE analysis to analyze effect of external business
environment factor on the working of their hotel.
 Political Factors - This factor involve political stability or instability, taxation policies,
trade regulation, trade restrictions and many more factors which influence the
performance of inter continent hotel. Hotel can be concerned about dynamic business
activities so that it is necessary to maintain political stability(Ashton and et.al., 2017).
 Economical Factor - This factor is concerned about the economic development and
growth, employment rate, interest rate, inflation and recession. Intercontinental hotel is a

most famous in UK and provide their best contribution in the economy of the country by
generate more foreign currencies (Burke and et.al., 2018).
Figure 1, Scanning the Environment: PESTEL Analysis, 2016
 Social Factors - social factor contain specific cross cultural activities, purchasing power
of the customer, buying behavior of the customer, and taste and preference of the
customers. Intercontinental hotel is more focused on their customers and their
requirements so that they can fulfill all the expectations of their customers and clients. Technological Factors - This factor maintain changes and modifications in the
technologies. Intercontinental hotel adopt advanced level of technologies which can help
to improve the market growth. Artificial intelligence, automation is considered as the
specific techniques which hotel adopt (Dickerson and et.al., 2018). Legal Factors - Legal factors contain specific legal consideration, laws, policies and
procedures which is necessary to follow. Intercontinental hotel adopt all type of legal
regulations and consideration so that they can operate their business activities in an
effective way.