Hospitality Business Strategy

Hospitality Business
Strategy
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Table of Contents
Introduction......................................................................................................................................3
PART -A..........................................................................................................................................3
Pestle analysis:........................................................................................................................3
SWOT analysis:......................................................................................................................6
VRIO analysis:.......................................................................................................................7
Porter's five forces analysis:...................................................................................................9
PART B..........................................................................................................................................12
Ans off matrix:.....................................................................................................................12
Strategic marketing plan.......................................................................................................13
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
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Introduction
Strategic analysis is a tool that is used for the purpose of understanding different activities that
are part of external and internal management of organization so that there can be formation of
proper business strategies in order to survive for a longer duration of time period in the market.
In case of hospitality Industries with the changing dynamic environment it is very essential for
all the brands to consider the factors that are impacting them in both positive and negative
manner. Present report is based on Hyatt Hotel that is one of the biggest hotel chains having 750
Hotel that are part of this chain (Lasserre, 2017) . There is discussion of external analysis tools
such as Pestle analysis and understanding of internal factors with the help of SWOT analysis.
Then further there is use of porter's five forces model and then there is building up of a strategic
marketing plan that can help Organisation for achievement of certain laid down objective.
PART -A
Pestle analysis:
Pestle analysis is external market with that is applied for understanding of different factors that a
part of micro environment below mentioned is the pestle analysis of Hyatt Hotel:
Political: Political issues are affecting the hospitality industry in a very significant manner. In
case of Hyatt Hotel it is a worldwide luxury that is affected by the taxation policies that have to
be paid and this affects their overall profitability margins. This is a negative manner in which
Hyatt hotel gets impacted because of the political policies.
Economic: Economic issues related with the economy of a country in which a particular
organization is prevailing and running their operation. In case of hotels and corporations they
were impacted by the issues of brexit that was exiting the European union and this lead to
reduction of British tourism by 7% in the year 2017. In 2016 Hyatt Hotel open 59 hotels in
European Union and British region and tourism was very down in the time period of 2017 this
impacted their overall generation of revenue from this investment. The scenario had a negative
impact on the prevailing profitability structure of Hyatt hotels.
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Social: Social factors are related with the changing preferences and demands of people in the
society. Concept of factors like income distribution when there is proper distribution of the
disposable income to people than it leads to higher purchasing power and has a direct impact on
the sales and profitability of various hospitality organization (Schilling, and Shankar, 2019). In
UK there has been a shift in preferences of people towards health consciousness and population
growth rate have also declined these situations have lead to reduction in the amount of sales for
hospitality industry.
Technological:
There are Various technological factors that are prevailing across globe in the hospitality
industry. In the present scenario of globalization of Hyatt hotels, technology is one of the
essential factors that is leading to adoption of innovative Technologies. They are willing to move
towards use of digital media and social marketing sources with the advent of internet. This is a
scenario of adopting latest technology by Hyatt hotel for the purpose of increasing the sales by
organization.
Legal:
Legal factors are having relation with adoption of the entire legal Framework that is developed
by the regulatory and concerned authorities in a country. These have to be compulsorily adopted
by organization. In case of hospitality organizations government are altering policies and making
increase regulations that are having a straight impact and concern on the functioning of
organization. There is requirement of development of a selling scheme and harmonization of
authority policy by Hyatt Regency (Hyatt Hotels Corporation Fundamental Company Report
Including Financial, SWOT, Competitors and Industry Analysis, 2020).
Environment:
External environment is full of uncertainty and this has affected organizations in such a manner
that there is more focus on sustainable development. In Hyatt Hotel Regency there are efforts
made to reduce and minimize impact of all the plastic usage so that they are able to contribute
towards sustainable development of the environment.
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