International Hospitality Management

This report covers the background of the hospitality industry and tourism, SWOT analysis of IHG hotels, emerging marketplaces like India and Nigeria, and strategic models like Ansoff and Porter's growth strategy for IHG group of hotels.

International
hospitality
management

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4
Background of hospitality industry and tourism.........................................................................4
Background to IHG.....................................................................................................................4
SWOT.........................................................................................................................................5
Emerging Marketplace(India)- Country economy, COVID-19 impact......................................6
Oil turkey political unstable........................................................................................................7
PESTLE(Nigeria)........................................................................................................................8
Strategic models Ansoff and Porter's growth strategy and justification...................................10
Porter's growth strategy For IHG group of hotels.....................................................................10
Practical application of the strategy..........................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The international management of hospitality is a major task and duty of a business to
survive in the marketplace (Bowen and Morosan, 2018). This requires huge efforts by the
business to survive at the marketplace with major competitive edge. In the era of stiff
competition between different companies it is essential for a company to develop effective
approach at the marketplace for better operations. This report includes the description of
background related to tourism industry is mentioned along with precise SWOT analysis. The
below mentioned report includes the PESTLE analysis of IHG group of hotels in order to
perform analysis of its internal environment. This project includes, analysis of strategic growth
model in order to develop precise strategy which is beneficial for the company to lead the
marketplace. In this project all the necessary aspects and dimensions of hospitality industry are
covered in a precise manner.

MAIN BODY
Background of hospitality industry and tourism
Since 1960s, the tourism and hospitality industry is arising with a major boom in the
whole world. Earlier in 1800s, the hospitality industry was limited to only local country
dimensions and now it has spread at faster pace. After the revolution created by globalisation, the
hospitality evolution gained a major hike and led to development of many organisations. In the
whole world due to the spread of globalisation, the hospitality industry is gaining intense growth.
The globalisation is considered as a major revolution which brought movement of goods
between different countries (Chon and Zoltan, 2019). This also created an opportunity for the
business organisations of hospitality sector to grow in marketplace by fulfilment of needs and
demands of different customers.
Background to IHG
Inter Continental Hotels Group plc, marketed as IHG Hotels & Resorts, is a British
multinational hospitality company headquartered in Denham, Buckinghamshire, England. It
provides major services related to food, beverages and accommodation services to world wide
tourists. The IHG group of hotels has received many awards and frames for giving exceptional
services to the hospitality sector. The hotel's headquarters are based in Denham, United Kingdom
and this hotel is having 35000 employees and revenue of over 239 Crore US Dollar. The chief
executive officer of this chain of hotels is KEITH BARR. The hotel also provides, resort related
services to different people and with world class quantity standards.

SWOT
In the functioning of a business, it is essential for a business to conduct SWOT analysis
for brief analysis of internal and external environment. The SWOT analysis helps a business to
grow at the marketplace in a systematic manner (Deale, 2018). SWOT analysis of IHG hotels is
mentioned below:
 Strengths- The strengths of a company, makes it more competent at the marketplace and
also helps in business growth. Front office management is the major strength of IHG
hotels which helps in developing customer satisfaction. The strength of customer
relationship management also help the hotel to increase customer satisfaction.
 Weakness- Major weakness of IHG group of hotels is, financial management which
records and maintains all the financial transactions of the business. Effective leadership
operations is another weakness of IHG hotels which makes the organisation less
productive.
 Opportunities- Expansion in the global market is another big opportunity available to
the IHG hotel. In order to develop major objectives, the development of business by
investing in major countries like Russia and China will be beneficial for IHG hotels.
 Threats- Competitors and their policies are major threat for IHG group of hotels which
makes the business less productive (Dimanche and Andrades, 2018). The competitors
can also led to minimise revenue for the business and can lead to reduce profitability of
company.

Emerging Marketplace(India)- Country economy, COVID-19 impact
In the corporate international world, it is compulsory for a business in hospitality sector
to identify emerging market. In order to expansion of the business, emerging marketplace create
a distinct value in the business. The explanation of India as a emerging market along with its
economic conditions is mentioned below:
The availability of cheap labour in the market is a major advantage for IHG hotel to
expand operations in India. Also the Make in India policy of India government provides, good
opportunities to every multinational company that wants to expand operations in the
marketplace. The economic conditions of India are favourable for every business as it includes
relaxing monetary policy of the Indian government which is suitable for the business. The Indian
government also has vaccinated over 100 Crore people which states the COVID-19 conditions of
the country are good. Indian government is also introducing subsidies to multinational
companies which will help the companies to invest more in the marketplace. In Indian
marketplace, raw materials are also cheap and they increase the chances of a business to gain
desired success at the marketplace (Farmaki, 2018). The corporate and cyber laws of India are
also very relaxing and easy to follow for long term success of the business entity in Indian
marketplace.

Oil turkey political unstable
The business is impacted in several manners by the application of oil prices which play a
crucial role in functioning of a business. In the recent times due to political instability in Turkey,
the Oil prices are growing at a rapid speed. In the year 2016, the oil prices were stable which
increased the profitability and revenue of global companies (Gupta, 2019). This is creating a
major challenge for companies in the hospitality sector to develop pricing strategy. The oil prices
impact on a business in following manner:
 Transportation- The transportation is majorly affected by the rise in oil prices which
makes the goods and raw materials costly. After the year 2020, there is a tremendous
increase in oil prices which created a major hike in prices of goods and services.
 Increased cargo cost- In order to carry goods and services worldwide, there is a crucial
role played by ship transport. The international movement of goods is impacted by cargo
services, as they transfer goods from one country to another. Oil prices in Turkey
increases the cargo cost which indirectly increases the price of shipment and makes the
goods costly.
 Inflation- The increase in prices of oil in turkey brings economic inflation in whole
economy and increases cost of product. In different developed and developing countries
the oil pricing strategy used by gulf countries play a crucial role. The inflation also brings
a major change in the company by developing systematic revenue distribution. In the
recent times, the importance of effective inflation in the economy has increased which
has created costly operations (Hassi, 2019). It is essential and compulsory for IHG to
develop a precise strategy which helps the company to overcome different consequences
of inflation.

PESTLE(Nigeria)
The PESTLE analysis is an important tool used by different companies to analyse
external in a systematic manner. Nigeria is a country which has great business opportunities and
the country will offer expansion opportunity to IHG hotels to conduct business operations in the
marketplace. The PESTLE analysis will also help the business of IHG hotels to increase revenue
in a specific period of time (King, 2017) . In order to gain desired success at the marketplace, it
is mandatory for a company to analyse the internal and external environment by using PESTLE
analysis. The PESTLE analysis of Nigeria is mentioned below:
 Political factors- The political factors are related to the rules and regulations which are
formulated by government. The stability of government of Nigeria is good which can be
a major opportunity for IHG group of hotels. Also the government provides subsidy and
effective corporate laws which are useful in providing competitive advantage. Nigerian
government, is also supportive for multinational companies and the government provides
all the desired support to countries.
 Economic factors- Economic factors are the major factors which are related to economic
policies and steps taken by government. The economic factors include the monetary
policy which is formulated by government of Nigeria. Gross domestic product and
national income, are major economic factors that impact on the framing of the company.
Also the inflation rate of Nigeria is also low which helps a company to invest and earn
more in a specific manner (Manoharan and Singal, 2017) . The economic factors should
be considered by the strategic management in a precise manner for long term
development of the business.
 Social factors- In the functioning of a business, social factors play a very crucial role.
The social factors include mixture of culture and beliefs of the employees which
determines the internal environment of the company. In the functioning of a company at
the marketplace, social factors are major factors that lead to develop social practices
which are beneficial for the employees (Plews and Zizka, 2020). The business should
regularly focus on developing and analysing social practices of Nigeria to prepare an
effective strategy.
 Technological factors- These are the most important factors that impact on all the
operations that are performed by the company. The use of information and technology in

a business also impacts on major operations of the business. Technological factors like
use of advanced computer systems and software mainly impact on the operations of a
company in significant manner. If the technological factors of Nigeria are analysed, then
they play an effective role in development of business. In Nigeria, technological
development is advanced and there is availability of IT professionals at cheap rates which
will play an important role in business development. The technological factors comprises
of business conduct with the use of information and technology to perform all the
business functions in a crucial and smooth manner.
 Environment factors- In the working of a company, there are various environment
related factors that play a significant role in developing internal business environment
(Sonnenschein and Markowska, 2020). The environment related policy designed by
Nigerian government is a good approach which keeps the environment safe and
sustainable. It is also important for a business in Nigeria to follow the environment
related policy, to conduct ethical business. The companies, should follow all techniques
to remove waste that is decomposed in the environment.
 Legal factors- In the working of a company, legal factors are mainly related to rules and
regulations that are developed by local authorities. In the functioning of a business, it is
important to consider major legal factors for performing business activities in a legit
manner. The legal factors contains organisational policy and corporate laws developed by
the government and local bodies of Nigeria. Legal factors are effective in overall
development of the company as well as play a major role in developing competitive edge.
By following legal factors which are formulated by local government helps a business to
lead the marketplace in a major sense. In Nigeria, the legal factors are flexible and
transparent which brings stable operations of the company.

Strategic models Ansoff and Porter's growth strategy and justification
Ans off Matrix is strategic tool which helps companies in order to plan an effective
strategy for their growth (Tung and Au, 2018). This model has be defined four strategies in
order to help companies for growing their business by developing or improving their product
and services. In context of IHG group of hotels Ans off matrix's four strategies has been
discussed below:-
Market Penetration- According to this strategy companies have to focus on those factors
which help them in order to increase their sales in the present market with their exiting products
and services. Market penetration help IHG groups of hotels to increase its growth by making
focused on those factors which help them to grow in a present market with their existing
services.
Product Development- In this strategies companies has to focus on developing new product
and services in the present market which help them to increase its sales and grow in the market.
With the help of this strategy IHG group of hotels can improve its growth by developing their
services in order to attract customer that are available in the present market.
Market Development- This makes companies to improve its growth by selling their existing
product and services in the new market in order to attract more and more customer towards their
existing offerings. In accordance with this marketing strategy it is important for IHG group of
hotels to introduce their services in the new market which makes them to grow more in new
countries.
Diversification- In this marketing strategy companies has to focus on introducing new offerings
in new market for increasing their sales which make them to develop their growth. This
marketing strategy is most risky because the product and services and market both are new for
company in order to become increase its sale and improve its growth (Tung and Law, 2017) .
With the help of Diversification strategy IHG group oh hotel introduce new services for
facilities in market or country which helps them to develop their growth in all over the country.
Porter's growth strategy For IHG group of hotels
Porter's growth strategy help companies to analyse various factors in order to run their
business in competitive environment. In this strategy companies determine its position by testing
its profitability according to the industry average. Porter's generic strategy develop three strategy

which help companies to improve their average performance are cost leadership, differentiation
and focus. In respect of IHG group of hotels these strategies are discussed below:-
 Cost Leadership- According to this strategy companies has produce its goods and
service in low cost in order to achieve its competitive advantage. This advantage is
different can be changed in different type of industry because their technology, raw
material, no. of employees and other factors are different in many industry. IHG group of
hotels also become the low cost producer in order to improve their growth in the
competitive environment (Wang, 2019). They should provide facilities or services to
their customer in low price so they can able to afford them and help them to increase their
growth in the market.
 Differentiation- According to this strategy a company should be unique or different
from other in order to attract more and more customer which makes their competitive
advantage. Company has to analyse , select or focus on those factors which make them
different from their competitors. They can good advantage of it by selling their offering
in premium amount to the customers. IHG groups of hotels had also develop or improve
their strategy in order to focus on those factors which make their services or facilities
different and unique from other for attraction more and more customers all over the
world.
 Focus- According to this strategy it create choice for the company in order to choose to
focus on cost or on differentiation in order to help to improve their growth and can
achieve its competitive advantage. This Focus strategy of porter's generic strategy has
two variables in order to make companies make their focus are cost focus or
differentiation focus. In context of IHG group of hotels has been discussed below:-
 In cost focus it help them to make their focus in order to achieve cost advantage in its
competitive market.
 Whereas in differentiation focus companies focus on those factors which make them
different from their competitors in order to become strong in competitive market.

Practical application of the strategy
By adopting Ansoff Matrix and porter's generic strategy in IHG group of hotels help
them in order to improve their future growth in their competitive environment. With the help of
this IHG group of hotels can analyse various factors which help them in take decision related to
their future in order to improve their growth in future.
By using Ansoff matrix in the business help them in order to improve their future growth
in various manner. In respect of this, by adopting market penetration in their marketing strategy
they can develop their brand equity, makes plan for growth as well as become more competitive
for the future. By the use of diversification strategy in their hotels can attract many customers of
different customer by providing new servicing facilities, this will help them to improve their
future growth as well as develop their brand.
According to Porter's generic strategy IHG group of hotels can develop their strategy
which help them in order to take competitive advantages in future and improve their future
growth. By using low cost strategy in their hotels can have various benefits for the future such as
more customer attraction by providing inexpensive rooms. Become more competitive in the
market and so on (Webb and Legg, 2021).. Using differentiation strategy in their hotels makes
them different and unique from their competitors which help them to attract more and more
customer in their hotels and also help them to improve their growth in future.

CONCLUSION
From the above stated report it can be concluded that, business management plays a vital
role in development of whole business entity for the organisation. This project concludes that it
is major responsibility of top level and strategic management to develop a precise plan for the
business entity that is helpful in achievement of direct success. It is major duty of management to
analyse whole macro and internal environment in order to develop precise strategy for the
business. This project concludes that it is compulsory and essential for a business entity to
develop application of a suitable growth strategy for the achievement of aims and objectives.
This project also concludes that in the long run, application of porter's generic growth strategy
plays a major role. This report also concludes that it is major function of a business entity to gain
desired success with the application of universally adopted management theories.

REFERENCES
Books and Journals
Bowen, J. and Morosan, C., 2018. Beware hospitality industry: the robots are
coming. Worldwide Hospitality and Tourism Themes.
Chon, K.K.S. and Zoltan, J., 2019. Role of servant leadership in contemporary
hospitality. International Journal of Contemporary Hospitality Management.
Deale, PhD, C.S., 2018. Students don’t have to pack their bags: A case study of an international
hospitality and tourism classroom experience without leaving home. Journal of
Hospitality & Tourism Education, 30(1), pp.65-70.
Dimanche, F. and Andrades, L., 2018. Methodological issues in cross-cultural tourism and
hospitality research. In Handbook of research methods for tourism and Hospitality
management. Edward Elgar Publishing.
Farmaki, A., 2018. Tourism and hospitality internships: A prologue to career intentions?. Journal
of Hospitality, Leisure, Sport & Tourism Education, 23, pp.50-58.
Gupta, V., 2019. Talent management dimensions and their relationship with retention of
Generation-Y employees in the hospitality industry. International Journal of
Contemporary Hospitality Management.
Hassi, A., 2019. Empowering leadership and management innovation in the hospitality industry
context: The mediating role of climate for creativity. International Journal of
Contemporary Hospitality Management.
King, C., 2017. Brand management–standing out from the crowd: A review and research agenda
for hospitality management. International Journal of Contemporary Hospitality
Management.
Manoharan, A. and Singal, M., 2017. A systematic literature review of research on diversity and
diversity management in the hospitality literature. International Journal of Hospitality
Management, 66, pp.77-91.
Plews, R.C. and Zizka, L., 2020. Hospitality faculty member perceptions of the role of faculty
development for their teaching. Journal of Hospitality & Tourism Education, 32(1),
pp.55-61.
Sonnenschein, K. and Markowska, M., 2020. Acculturation and career adaptability of
international Chinese hospitality students. In NEON Conference, 17-19 November,
2020.
Tung, V.W.S. and Au, N., 2018. Exploring customer experiences with robotics in
hospitality. International Journal of Contemporary Hospitality Management.
Tung, V.W.S. and Law, R., 2017. The potential for tourism and hospitality experience research
in human-robot interactions. International Journal of Contemporary Hospitality
Management.
Wang, C.J., 2019. From emotional labor to customer loyalty in hospitality: A three-level
investigation with the JD-R model and COR theory. International Journal of
Contemporary Hospitality Management.
Webb, T. and Legg, M., 2021. The Emerging Need for Hospitality Students with Analytical
Skills. Journal of Hospitality & Tourism Research, 45(5), pp.892-894.