Hospitality Business Strategy: Analysis and Recommendations for The Tower Hotel

Hospitality Business
Strategy

Table of Contents
Introduction....................................................................................................................................................3
Main body......................................................................................................................................................3
Part A.............................................................................................................................................................3
Impact of macro environment on the Tower Hotel....................................................................................3
Critically analyses the hospitality macro environment to determine strategic management decisions.....5
Analyse the internal environment by using the VRIO Framework...........................................................5
Critically evaluate the internal environment to assess strengths and weaknesses of an organization.......5
Evaluate the competitive forces by using Porter’s Five Forces model......................................................5
Devise appropriate strategies to improve competitive edge and market position.....................................6
Part B.............................................................................................................................................................7
Evaluate the different types of strategic directions available to the organization by using Porter’s
Generic Strategies......................................................................................................................................7
Justify and recommend the most appropriate growth platform and strategies through Ansoff’s Growth
Matrix.........................................................................................................................................................8
Theories, concepts and models of strategic planning for hospitality organization....................................8
Produce a strategic management plan that has tangible and tactical strategic priorities and objectives...9
Critique and interpret information and data applying environmental and competitive analysis.............10
Conclusion...................................................................................................................................................10
References....................................................................................................................................................11

Introduction
Business strategy reference to plan of action that is required by the organization in achieving the
goals of business in particular manner. The hospitality industry provides various services for
leisure to the customers by providing them good accommodation and other services. It is
important for a business concern to make business strategies so that it can create vision for the
organsaition(Uhlig, and Remané, 2022). This provides insight to the group of people to achieve
the mission of the business. It enables the decision makers to determine the trend and
opportunities the growth in future. In this report, The Tower Hotel has been taken into account
which is a well-known hotel in London, England. The report will cover the analysis of the macro
environment and also demonstrate the internal analysis. Further, it will depict competition
prevailing in the market through the porter framework. It will also discuss the strategies that is
required for the organization and explain the concept, theories and model of strategic planning.
Main body
Part A
Impact of macro environment on the Tower Hotel
PESTLE analysis
This is an analysis which is used by the marketers in order to determine the impact of the
external factors on the business and profitability of a business concern(Golitsyna, 2021). It
provides opportunities to the company for future growth with the help of this analysis. In relation
to The Tower Hotel, the pestle analysis has been described as under:
 Political: This refers to the involvement of government which may impact the business
of an organization. This may include the tax policies, trade restrictions, reforms, tariffs,
political stability and so on. With reference to The Tower Hotel, it attract the
international tourism but it can be impacted by the norms of the government as it charges
the great amount of tax on the luxury hotel.
 Economical: This factors includes the interest rates, tax rates, inflation, and wages rate
and so on which may impact the economic growth of the business(Hosseini, 2021). As
regard with The Tower Hotel, the hotel can be affected with this factor because it

capitalize the travelers from the worldwide which provide huge money to the hotel,
especially from the luxurious hotel.
 Social: This refers to the preferences and behavior of the people which profoundly
impact the organization. In relation to The Tower Hotel, it provides varieties of the
products such as single room, twin bed room etc. to its customers so that they can provide
their best services which people share with each other by using social media platform.
 Technological: It refers to the innovation, research and development that may impact the
operation of the business. The Tower Hotel has adopted technology by placing cameras
in order to provide security and other facility to make guest’s stay more comfortable.
They also use software to meet the needs of the customers and provide Wi-Fi facility.
 Environmental: This factors affect the profitability of The Tower Hotel so it follows the
environmental laws and liabilities to save the environment(Bima, and Aprianingsih,
2022). Therefore, the hotel contributes in saving the environment by ensuring minimal
carbon footprints and reducing the wastage of leftover food.
 Legal: The Tower Hotel follows the employment legislation and customers laws in order
to protect the interest of the customers and the employees as well.
SWOT analysis
The Tower Hotel has made its swot analysis in order to know the strength, weaknesses,
opportunity and threats which are as under:
Strengths Weaknesses
Brand image: The Tower Hotel is a well-
known brand in London which attract more
tourist that assist the hotel in making more
profits(Espinós, and et.al., 2021).
Services: The Tower Hotel has 801 rooms
and 19 meetings rooms that have a capacity of
600 people. It provides facility of restaurant,
gym, coffee bar and so on.
High price of the products: The Tower
Hotel provides varieties of the products but
they are very costly that are only affordable
by the rich people. Thus is a luxury hotel
which provides its services and products at
higher rates.
Opportunities Threats
Market share: The Tower Hotel can increase Competitors: There are various competitors