Macro Environment & Competitive Forces in Hospitality Business Strategy

Hospitality Business
Strategy

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1 ................................................................................................................................................3
P1 Apply appropriate frameworks & examine impact/ influence of macro environment on a
given hospitality organisation and its strategies..............................................................................3
TASK 2.................................................................................................................................................5
P2 Analyse internal environment/ capabilities of hospitality corporation using appropriate
frameworks......................................................................................................................................5
TASK 3.................................................................................................................................................7
P3 Apply Porter’s Five Forces model, evaluate competitive forces of a given market sector........7
TASK 4.................................................................................................................................................8
P4 Apply a range of theories, concepts and models, interpret & implement strategic planning.....8
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13
Books & Journal:...........................................................................................................................13

INTRODUCTION
Hospitality industry is is evolving with changing period of time & is developing at rapid
scale. This industry provides services such as food & drink, lodging, event planning etc. In
business sector, it is essential to use strategies so that objectives are achieved (González-Rodríguez,
2018). Best Western Hotels & Resorts, a largest hotel chain headquartered in U.S. The hotel chain
has various types of brands such as Sure Hotel, Sure Hotel Plus, Best Western Premier etc. In this
report, brand of Best Western Hotel which have been taken is Sure Hotel which is located in U.K.
This report comprises of impact of macro environment on enterprise, internal environment
capabilities, Porter Five Forces model and range of theories, concepts & models with strategic
planning.
TASK 1
P1 Apply appropriate frameworks & examine impact/ influence of macro environment on a given
hospitality organisation and its strategies
Business environment is essential to be focused as it impacts upon overall organisational
structure. In hospitality industry, it is crucial for enterprise to implement a proper scanning of
environment so that resources are used efficiently. Also, these impact upon strategies of entity at
wider scale. Macro environment refers to factors which impact upon entity externally & are non-
controllable (Lopes, 2016). It is essential to identify these determinants so that everything within
entity is done appropriately. It is necessary to be aware about these factors so that decision for
business improvement are taken appropriately. So, to determine the impacts of Sure Hotel,
PESTEL analysis is being explained below-
PESTEL Analysis-
It is a framework is utilized by entity to examine or analyse external factors affecting
enterprise functions or operations. It comprises of several components which are discussed below-
Political Factors-
It is a factor in which it depicts at what level government interfere within a economy. This
includes element such as political stability, government policy, political stability or instability etc.
In relation with Sure Hotels, there is proper stability of political & government activities which
makes it easy for them to operate their functions in proper manner.
Economic factor-
It is another factor of PESTEL analysis which it comprises of inflation & deflation rate,

interest rates, unemployment rates etc. These type of factors has direct effect on long term impact
on economy. In relevance with chosen entity, due to stability of economy of U.K they are Sure
Hotel is able to expand their business & level of activities in appropriate way.
Social factor-
In this it includes elements such as religion, culture, norms, values etc. It is essential to
focus on these social factors so that products or services are provided to customers after considering
these variables. In reference with Sure Hotel, they carry out business activities with properly
focusing on social norms & guidelines. It improves their goodwill in market at wider level. It also
have impact on organisational strategy as they implement their marketing strategies according while
considering these social factors (Ren, 2018).
Technological factor-
In this digital era, use of internet has widen and which enhances use of technology within
business sector. It comprises of element such as use of artificial intelligence, advance use of
software & tools. In reference with selected enterprise, they use technology within their
management such as they use secure software & encrypted systems through they protect details of
every users.
Environmental-
In this element, it focuses on pollution, weather climate, green agenda environment
protection & many more. These have direct impact on goodwill of entity as well as strategy. It is
essential for hospitality industry to focus on these elements so that strategies are carried out. In
viewpoint of chosen entity, they maintain CSR which is corporate social responsibility & is
maintained by them effectively (Islam, 2017).
Legal-
In this, it is factor which involves elements such as engagements, contracts, employment
laws, antitrust laws & many more. In viewpoint of chosen corporation, HR & legal department of
firm maker ensure that every activities is being done with proper considerations of these
legislations.
Macro environment impacts upon organisational strategy of entity as they have environment
comprises of economy & changes are meant to occur. Thus, in relevance with selected enterprise
they have to keep track these changes to follow market trends appropriately. It affects the strategy
of entity in both positive and negative way. Therefore, it is also stated that macro environment has
deep impact on entity's overall structure & makes difficult for company to use their strategies