Hospitality Business Strategy

Hospitality Business Strategy
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INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART A...........................................................................................................................................3
1. PESTEL or SWOT analysis of the organization.....................................................................3
2. Applying competitive environment by using Porter’s Five Forces model..............................7
PART B...........................................................................................................................................9
1. Applying a range of theories, concepts and models, interpret and devise strategic planning
for a selected hospitality organisation.........................................................................................9
2. Recommendations..................................................................................................................10
3. Strategic management plan....................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
The Hospitality Business Strategy is defined as the practice taken by management to build
the vision and purpose of an organization that helps in providing competitive (Acuña-Carvajal
And et.al., 2019). It is of the utmost importance for the managers of an organization to employ
and select potential candidates with specialized skills to improve the efficiency of their
workforce in order to complete the target within a specific duration. For the better understanding,
Hilton Hotel & Resort selected which is popularly known as Hilton Hotel.
This research analyzes the effect of macro-environmental influences on hospitality industry
operations. It also explores the internal climate and its operational capacities by applying correct
frameworks. In addition, it covers the competitive forces which affect the organization or
evaluate the range of theories and concepts and develop strategic plan in context of selected
hospitality organization.
MAIN BODY
PART A
1. PESTEL or SWOT analysis of the organization
PESTEL analysis:
PESTEL model includes the gathering and gathering of data on external influences that
have or could have an effect on business. This analysis used by the organisation top identifies
external factors such as political, cultural, social and technical variables that may influence its
effectiveness and activities. Hilton Hotel implements this strategy to evaluate external factors
and make operational strategies accordingly.
Political: In this factor, political stability is essential to have in whatever the industry they
relate, it is a basic requirement for performance. In the hotel sector in particular, the number of
guests, including tourists and business passengers, can be affected by international
considerations in both various ways (Hwang and Kim, 2019). Dangers or threats of acts of crime
are more likely to decrease the number of tourists in London and the United Kingdom with
adverse impacts on Hilton’s success in this specific region. Hilton Hotel is regularly involved in
campaigning in required to be able to control the government forces on the company to a certain
degree. As seen in the chart below, over USD 1.5 million has also been invested by the
organization on lobbying activities in the last four years.
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Economic: The domestic and international circumstance, variables and events impacting
the situation are key factors affecting the business of Hilton Hotels & Resorts. In the United
Kingdom across the 2012 Olympic season, virtually all accommodations were packed and
occupied completely during the entire duration. Even so the situation was wholly separate after
the Olympic Games were over. The Hilton Hotel Group reported revenue of around $9.45 billion
in 2019, up from the previous year's $8.91 billion 2018. The currency rate of the UK against the
other world currencies and rate of inflation in the UK are essential factors that could affect the
achievement of Hilton in the region.
Social: In the UK market, it contains a range of globally established names and chains.
Hilton Hotel is one of the strong brand which has advantages of attracting customers and of
cooperating with other firms and charitable organisations. The short-term market can attract the
aging population of the United Kingdom as well as a growing amount of older person
households. It means, company need to target young generation to maximise their sales but also
encourage the facilities they offer for older population.
Technological: Digital marketing is one of the trending mode of promotion and it is also
beneficial for customers to book rooms and hospitality organizations offers all types of
information regarding Hilton hotels (Hwang and Lee, 2019). It also including recommendations
created by previous clients which are beneficial for potential customers. Social networking
introduces a great way for Hilton hotel to connect with its visitors. Users share their hospitality
experience on internet platforms such as TripAdvisor, facebook and twitter. Unless the Hilton
hotel is active and ready through all these popular websites, it could not only create brand
awareness but it also brings new clients.
Environmental: Change in the climate is one of the major factors which affect the
hospitality organization. In context of Hilton Hotel, because of Iceland's volcanic ash, most of
the flights are delayed and airports are closed. Hotel industries are immediately affected by the
situation. This factor affects the Hilton hotel in terms of profit margin, so managers need to
formulate such strategies which make organization able to face such situations. Due to COVID-
19 situation, entire hotels or resorts of country is locked which cause the huge loss for hospitality
industry.
Legal: It is appropriate for hotels to comply with environmental regulations and legislation
and to reduce the potential impact on the environment of hospitality industry. In addition, in the
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