International Hospitality Management: Background, SWOT Analysis, Emerging Markets, Strategic Models and Framework

International
hospitality
management

Contents
INTRODUCTION...........................................................................................................................3
Background on Hospitality Industry............................................................................................3
Background to IHG......................................................................................................................3
SWOT analysis of IHG................................................................................................................4
Background to Emerging markets...............................................................................................5
PESTEL of selected emerging market.........................................................................................6
Strategic models and framework.................................................................................................8
Justification of strategy..............................................................................................................11
Practical application of strategy.................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality is the internationally recognised industry that is growing continuously at very fast
rate. International hospitality management is referred as the high-level programme that includes
various activities such as examine the international hospitality operations as well as managerial
capacity that facilitates to handle the growing needs and requirement of international managers
in the hospitality industry (Ahn and Back, 2018). Hospitality management is defined as the
significant study of hospitality industry. The report includes background of Intercontinental
hotels group and swot analysis of respective hotel in being conducted. Background of hospitality
and tourism industry is discussed. In this report the background of emerging market is defined
and pestle analysis of organisation in developing emerging market is mentioned. Apart from that
various growth options and strategies like Porter’s generic model, Ansoff matrix and Nykiel
fourteen are covered in this report.
Background on Hospitality Industry
Hotel and tourism industry are world’s major service industries that provides varies such as
lodging, food attraction as well as travel and cultural industry. The industry has stable growth
and tourism industry revenue is increased from 528 million in 2005 to 1.19 billion in 2015.
Hospitality industry is the most vibrant industry sector that is changing continuously dur to
various internal and external factors and it becoming competitive regularly. In this hospitality
industry some businesses are doing well on the other hand, some facing challenges and difficulty
due to competition at local as well as international level (Bani-Melhem, Zeffane and Albaity
2018). Travelling sector also growing in the hospitality industry and globalisation bring various
changes in hospitality and tourism industry. As the respective industry become popular sector for
business.
Background to IHG
The hotel organisation is taken in consideration n this report is Intercontinental Hotels
Group plc that is known as the IHG Hotels and Resorts. It is the British multinational hospitality
organisation founded in 15 April 2003 and headquarter is located in Denham, Buckinghamshire,
England, UK. The hotel is listed in London Stock Exchange and constituent of FTSE 100 index
as well. It offers hotel and resort services through opening hotels at 5,964 locations and having
886,036 rooms. Patrick Cescau is the chair person and Keith Barr is the CEO on IHG hotel.

350,000 employees are working with organisation and it generates 2.394 billion US$. It is the
one of the largest hotels at international level that contains range of hotel properties in different
countries and provides high quality services to their guests.
SWOT analysis of IHG
Swot analysis is defined as the framework that enables the organisation to assess and
evaluate various internal factors like strengths and weakness as well as external strategic factors
like opportunities and threats. The understanding of these factors facilitates the manager of IHG
hotel to develop strategies to ensure growth and development of organisation and overcome the
negative factors as well. The factors are mentioned below:
Strengths Weaknesses
The main function of SWOT analysis is
to identify the internal capabilities of
organisation facilitates the hotel to exploit
different external opportunities and threats. As
one of the leading firms in hospitality industry,
IHG hotel has range of strengths that help it to
enhance market share and customer base.
Organisational strengths are:
 IHG hotel has highly skilled workforce,
as the hotel invest high amount in
providing training to develop their
skills, so employees are not only skilled
but highly motivated to attain defined
objectives (Zhu, Lam and Lai, 2019).
 Hotel use various technological factors
and automation that helps to produce
better quality products that enhance
brand image in respective market place.
 IHG focuses on maintaining the
effective customer relationship that
satisfies customer and brings higher
Weakness are the areas of IHG hotel that
required improvement and affect the
functioning and activities of organisation as
well. Respective organisation analyses the
factors and develop various strategies to
improve weak areas to gain competitive
advantages. Some weaknesses are defined
below:
 To adopt the latest technologies and
automation, IHG hotel requires higher
investment and organisation do not
contains effective demand forecasting
techniques that impacts on attaining
opportunities level.
 The profitability of IHG hotel is below
average that impacts on overall
functionality and performance.
 Financial planning procedure of
respective hotel is not effective.
Organisational current assets as well as
liquid ratio states that cash can be used