Hospitality Business Strategy

Hospitality Business
Strategy

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Analysis of the influence and impact of macro environment on the company and its strategies.........3
TASK 2..........................................................................................................................................................6
P2 Analyzing internal capabilities and environment of the company using different framework...........6
TASK 3..........................................................................................................................................................8
P3 Application of Porter’s five forces to evaluate the competitive environment of company..................8
TASK 4..........................................................................................................................................................9
P4 Application of concepts, models and theories to devise the strategic planning for the company........9
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13

INTRODUCTION
The business strategy is an important aspect for the companies and corporations when
wants to grow and development in the competitive environment. It is a set of long term plan
which is adopted by the businesses in order to compete with the competitors who offer similar
range of products and services. The hospitality sector is the vast growing industry which has a
very strong competition. It is essential for the companies in this industry to plan such business
strategy which can help it to take the competitive edge over the others (Konovalova and et. al.,
2018). The organization chosen for this report is Hotel Hilton, a global group of hotels and
resorts which has approximately 600 hotels all across the world. London Hilton is chosen
specifically for this report which is situated in London. This report shall cover the analysis of
external and internal environments, concepts, models and theories for strategic planning and
Porter’s five forces.
TASK 1
P1 Analysis of the influence and impact of macro environment on the company and its strategies.
The external environment is the condition wherein the whole economy exists. It has a
strong influence on the working of the business and its decision making. For analyzing the
impact and influence of the external environment, there are different models being used which
are discussed below-
PESTLE Analysis
It is a model that is used for analyzing the macro environmental factors that affect the
functioning of the corporation. In context to the Hotel Hilton, PESTLE analysis is narrated
below-
 Political- It is concerned with the political environment of the state wherein the
corporation operates. In context to Hotel London Hilton, the hotel operates in many states
so it is exposed to many political risks which affect its revenue generation. For instance,
recently UK left EU which resulted in reduction of number of visitors that affected its
profitability (Sawagvudcharee and Limpabandhu, 2019).

 Economic- It emphasizes on the economic factors which directly affect the working and
operations of the company. In relation to the Hotel London Hilton, it has chain of hotels
that are luxurious so it targets the high income people. due to the impact of Covid-19
pandemic, the banks are offering loans at low interest rate so it can take advantage of it
and plan to expand its operations.
 Social- It involves many socio- cultural factors such as demand, purchasing power,
purchasing behavior, supply etc. that fluctuate the sales of the company. In context to
Hotel London Hilton, as people have now improved their spending habit which helps the
hotel to attract more customers, thereby increasing its revenue.
 Legal- It is concerned with the compliance of laws so that the company do not face and
hardship for the non- compliance of legislations. Hotel London Hilton closes monitors
the laws of each country wherein it operates and whenever there is any change in law, it
immediately adopts it in order to prevent legal consequences.
 Technological- It involves the technological advancement and up-gradation that supports
the working of the corporation. Hotel London Hilton continuous deploy new
technological advancement in its working which enhances the customer experience such
as digital payments, digital check ins and outs, etc.
 Environmental- It is concerned with the activities of business which affect the ecology
and environment. Hotel London Hilton is continuously taking initiatives to reduce the
environmental impact and bringing such practices which promote sustainability (Peters
and Kallmuenzer, 2018).
Stakeholders analysis
The companies and corporations are made of many personnel which directly and
indirectly affect the operations of the business. The power- interest grid is being used for the
analyzing the stakeholders wherein it categorizes the personnel into four categories which are
(Frederick and Parappagoudar, 2021) discussed below in relation to Hotel Hilton-
 High power- High interest- It includes those stakeholders who are required to be
provided with all the information and has to be closely monitored due to the fact that they