Intercontinental Hotels Group Strategic Management Plan Report

Strategic Hospitality
Management Plan
Report
Table of Contents

INTRODUCTION...........................................................................................................................2
PART A...........................................................................................................................................2
Analysis of the impact of macro-environment on Intercontinental Hotel Group........................2
SWOT Analysis.......................................................................................................................2
PESTEL Analysis....................................................................................................................4
Analysis of hospitality macro-environment to determine strategic management decisions........5
Analysis of Internal Environment and Capabilities of Intercontinental Hotels...........................5
McKinsey's 7s Framework......................................................................................................5
Evaluation of the internal environment to assess strengths and weaknesses of an organisation
internal capabilities......................................................................................................................7
Competitive analysis of Intercontinental Hotels..........................................................................7
Porter's 5 Forces competitive analysis.....................................................................................7
Strategies to improve competitive edge and market position......................................................8
PART B...........................................................................................................................................9
Strategic Planning........................................................................................................................9
Porter's Generic Strategies.......................................................................................................9
Ansoff Growth Matrix...........................................................................................................10
Interpretation of the Strategic planning.....................................................................................10
Strategic management Plan for Intercontinental Hotels............................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategy refers to the plan of actions designed to achieve the long-term goals and
objectives for the organisation. Strategic management can be defined as the planning,
monitoring, analysis and assessment of the essentials of an organisation so as to achieve the
desired goals and objectives. It includes the formulation and execution of goals and initiatives set
by an organisation (Höglund and Mårtensson, 2021). An effective strategy helps the business
managers in facilitating competitive advantage to their business in the respective industry. For
efficient strategic management, an organisation must use effective business frameworks to
analyse the internal as well as external environment to formulate the strategies accordingly. They
must prepare the strong strategic management plan so as to meet up the uncertainties in business.
This report is based on the strategic management plan of hospitality organisation i.e.
Intercontinental Hotels Group that is a public limited hotel chain located in Buckinghamshire,
England and operating globally. The report will cover the internal and external environmental
analysis with competitive analysis of the hotel by using various business frameworks like
SWOT, PESTEL, Porter's competitive analysis & pricing strategies etc. Further, it will also
provide a Strategic management plan for this hotel.
PART A
Analysis of the impact of macro-environment on Intercontinental Hotel Group
This analysis is a part of company's strategic management that facilitates to evaluate and
identify the opportunities and threats that can influence the business operations. With reference
to Intercontinental Hotels, it has been provided as under -
SWOT Analysis
It is a strategic planning tool or techniques that facilitates the organisation in identifying
its strengths, weaknesses, opportunities and threats (SWOT). It helps in analysing competition
and project planning (Karsiwi and Nurlena, 2021). In context with Intercontinental Hotel, the
SWOT analysis has been provided in following table -
Strengths
 Global Presence – This hotel operates
in 100 countries and has more than
Weaknesses
 Weak IT security – The hotel has weak
IT security as 1200 of IHG hotels had

885K rooms on a global basis. The
main brands of the hotel include
Holiday inn resorts, Crowne Plaza,
Candlewood Suites Hotels etc. that
ensure customer loyalty from a wide
customer base.
 Profits - The hotel group has reported
the revenues of approx US$2.9 billion
as of 2021 and an operating income of
US$494 million that showed that the
hotel is operating effectively.
 Highly skilled workforce – The hotel
has a skilled staff that has effective
communication skills in treating the
customers at its accommodation and
restaurants.
to face stealing malware and guest
information such as cardholder name,
internal verification code and card
number etc. were stolen due to its weak
IT security.
 Negative customer reviews – The
Loyalty programs of hotel such as
Holiday inn priority club, IGH rewards
club had to face negative customer
reviews as the customers claimed that
they were not given the promised
points and told the hotel that the points
get expired as they try to redeem them.
Opportunities
 New Geographical markets – The hotel
has an opportunity to expand its
business in India by partnering with
SAMHI group that will rebrand 2000
rooms to Holiday inn express hotels. It
is also planning for 300 hotels in China
till 2023.
 Wide products/services – The hotel has
an opportunity to introduce food and
beverage items in its restaurants menus
as almost 13% of the gross revenues of
this hotel come from food & beverages
(SWOT analysis of InterContinental
Hotels Group Plc, 2017).
Threats
 Competition – The hotel has to face the
competition with its major competitors
like Marriott, Windhom and Accor
Hotels group. It has to face an intense
competition with other hotels as well
like Hilton, Hyat and Choice groups as
these hotels also share the same
customers and the market share as well
due to their operations in the same
industry i.e. hospitality.
 Threat from Global Crisis – The hotel
had to face the lock down restrictions
due to covid19 that impacted its
operations and revenues as well. Due to