Hospitality Business Strategy Unit 41

Hospitality Business
Strategy

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
P1. Application of appropriate framework, analysation of impact and influence of macro
environment on a hospitality organisation and its strategies.......................................................1
M1. Critical analysation of hospitality of macro environment to determine and inform strategic
management decisions.................................................................................................................4
D1 Critique and interpret information and data applying environmental and competitive
analysis to produce a set of valid strategic directions, objectives and tactical actions for a
hospitality organisation................................................................................................................5
P2. Analyse internal environment and capability of hospitality organisation using appropriate
framework....................................................................................................................................5
M2. Critical evaluation of internal environment to assess strategy and weakness of internal
structure, skills set and capability of organisation.......................................................................8
P3. Application of Porter’s five forces model, evaluation of competitive forces of market
sector of hospitality organisation.................................................................................................9
M3. Devise appropriate strategy to improve competitive edge and market position based on
outcomes....................................................................................................................................11
P4. Application of range of theories, concept and model that interpret and devise strategies
planning for a hospitality organisation......................................................................................11
M4. Produce strategic management plan that has tangible as well as tactical strategic priorities
and objectives............................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy can be defined as clear set of plan, goals and action that assist business to
understand different ways in which they can compete in specific market and also helps to serve
specific products and service (Ahmad, Bakar and Ahmad, 2018). Marriott is one of biggest hotel
chain which has numbers of hotel in different areas of business. It has different band under their
brand name like Ritz-carlton, Westin Hotel, Sheraton and others. This project report includes
study of Sheraton that is a hospitality organisation providing effective customers service to their
customer. This project report includes analysation of impact and influence of macron
environment factors in hospitality business. It asses internal environment and capability of
company. It evaluates and apply outcome through using porter’s five forces model in market
sector. Moreover, it applies theories, models and concepts that assist for understanding strategic
direction.
MAIN BODY
P1. Application of appropriate framework, analysation of impact and influence of macro
environment on a hospitality organisation and its strategies
PESTEL analysis:
It is a strategic framework that is used for purpose of evaluation of external environment
of business that create opportunity as well as threat for business. It consists different components
like political, legal, technological, social, environmental and other things. This framework is
used by managers of Sheraton that assist them for purpose of corporate planning and also for
finding out pros and cons of business safety. Sheraton is an organisation which is operating at
international level where they can face various challenges. In order to identify factors that cete
impact of business of Sheraton, managers can use PESTEL analysis which is mentioned below:
Political factor: It is a factors that includes rules and regulation of government that create
impact over business. It also includes action as well as policy of government that intervene
economy that create negative impact over operation of business. It includes different things like
tariffs, trade restrictions, bureaucracy and tax policy (Anning-Dorson and Nyamekye, 2020).
Sheraton is one of hotel which is providing their services at international level and due to which
they need to consider political factors as tit can create impact over business. For instance, due to
covid-19 government of many countries has put restriction over hospitality business that create
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problems for managers of Sheraton. Government also put restriction over travelling activities
that create huge loss for company. There is also a political change occur in UK that is also
creating impact for business as government has made changes in their rules and regulation.
Economic Factor: It is a factor that includes different aspects related to economy and different
areas that is creating impact over business. These economic areas are measured through central
bank as well as other agencies of government. It includes interest rate, inflation rate, economic
growth rate, unemployment rate, exchange rate and other things (Bratton and Watson, 2018).
Due to situation of covid-19, economy of many countries is facing recession that is creating
impact over business. As with recession, business is facing loss and firing their employees. It
increases unemployment rate in many countries that is creating threat for business of Sheraton. It
also results in decrease in purchasing power of people that do not allows people to spend money
on hospitality service. There is fluctuation in currency that is also creating impact over business
of tourism s value of one currency is different in another currency which create impact over
profit of company.
Social Factor: Social factors are another factor that is related to demographic, culture, norms
and belief of people of society. These social norms as well as other factors assist business for
understanding behaviour of consumer. It includes different factors like growth rate, culture
aspects, norms, perception, health consciousness, career attitude and other things. These factors
are considered by Sheraton in order to develop effective marketing message for consumer,
developing marketing strategies that create influence over customers (Cabral and Jabbour, 2020).
These factors assist managers of Sheraton for purpose of targeting consumers and also for
increasing appeal of products of potential buyers. Due to covid-19, there is changes occur in
consumer trends which is also consider by managers of Sheraton as there is increasing health
awareness among people due to which hotel needs to adopt all precautions and needs to maintain
extra cleanliness. It increases cost of company that results in reduction in profitability of
company.
Technological Factor: Technological factors are those factors that includes advancement
in technology that provide innovation in overall economy of a country. It is essential for business
to be update with latest trends in an industry that provide them opportunity for business. Detailed
analysis of technological environment is essential for business like Sheraton as it assist them to
adopt different trends related to technology in business and provide them opportunity for
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