Business Strategy: Analysis of Macro Environment Factors and Internal Capabilities

Business Strategy
(Unit- 41)

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1/M1 Analysis of influence and impact of the macro environment factors on the firm and its
strategies..................................................................................................................................................3
TASK 2..........................................................................................................................................................6
P2/M2 Analyzation of the internal capabilities and environment of the organization using various
frameworks..............................................................................................................................................6
TASK 3........................................................................................................................................................10
P3 Applying Porter’s Five Forces model, evaluate the competitive forces of a given market sector for a
hospitality organization.........................................................................................................................10
M3 Provide appropriate strategy to improve the competitive edge and the market position based on
outcomes................................................................................................................................................11
TASK 4........................................................................................................................................................11
P4 Apply concepts, models and theories to devise strategic planning for the venture...........................11
M4 Strategic management plan.............................................................................................................13
CONCLUSION.........................................................................................................................................16
REFERENCES..........................................................................................................................................17

INTRODUCTION
Business strategy is an essential aspect for the businesses as it helps them to grow and
develop in the competitive market. Hospitality industry has been the largest growing sector in the
whole economy where there is a strong competition so it is very important for the businesses in
this sector to plan their strategies in such a manner that they can take the competitive advantage
in the market. Business strategy can be defined as the set of long term plan that is mainly
adopted by the companies so that it can compete with competitors that offer same range of goods
and services. It covers different aspects such as offering of the business, the target customers,
market which is required to be served and many others (Wright, 2020). The organization in this
report is Hilton Hotel. It is a global group of resorts and hotels that has around 600 hotels in the
whole world. it was established in the year 1919. This report will cover internal analysis of the
organization by using various models, internal capabilities and environment analysis by using
different frameworks, competitive analysis and strategic management plan.
TASK 1
P1/M1 Analysis of influence and impact of the macro environment factors on the firm and its
strategies.
The external environment can be referred to as a condition in which the economy exists
as a whole. There is a strong influence of this on the functioning of businesses and every
organization is required to analyze its impact before making any decision. There are various
framework being used to analyze the macro environmental impact on the Hilton Hotel that are
discussed below
PESTLE Analysis
It is a framework that is mainly used in order to analyze the macro environmental factors
which may affect the decision making and functioning of the organization (Mondragón-
Ixtlahuac, Cortés-Martínez and Delgado-Hernández, 2017). In relation to hotel Hilton, PESTLE
analysis is discussed thereunder-

 Political- It involves the political environment of the country where the business
operates. With the political stability in UK, hotel Hilton gets many advantages that help it
to flourish its business but the Brexit may affect the working off the hotel as there will be
decreased number of visitors which may affect its profitability.
 Economic- It includes the factors such as foreign exchange currency rate, inflation rate
etc. as hotel Hilton is a chain of various hotels that is luxury in nature so it targets the
wealthy customers. The COVID-19 has affected the whole economy so the banks are
offering loans at a very low rate which can help Hilton Hotel to take advantage of it and
expand its operation but due to restrictions on traveling, there will be less tourist that may
affect its business.
 Social- It includes the socio-cultural factors like purchasing power, supply, demand, etc.
as there has been increased in the spending habits of the people. This may help hotel
Hilton to attract more of the customers. But there has been a trend change where people
prefer affordable rented apartments and hostels in place of hotels when traveling to gain
better travel experience which may affect the business of Hilton Hotel.
 Technological- It is concerned where technological advancement that helps the working
of organization. As hotel Hilton has deployed new technologies in its working so that the
customers are given enhanced experience but at the same time this has also affected its
profitability as there has been high cost in deploying it.
 Legal- It includes the laws which are required to be complied by the organizations. Hotel
Hilton monitors every law of every country where it operates so that there is no hardship
faced by it and any change in law is immediately adopted by it so that they do not face
any legal consequences.
 Environmental- It includes those activities of business which affect the environment.
Hotel Hilton takes initiatives in a continuous manner to reduce its impact on the
environment by promoting such activities that brings sustainability (Antipov and et. al.,
2019).
Stakeholder analysis
The corporations and organizations are built by the personnel that indirectly and directly
affect the business. The power interest grid is used for analyzing the personnel where it