TLH 314 International Hospitality Management Assessment

This report provides insights into the International Hospitality Management industry and the IHG group of hotels. It includes a SWOT analysis, PESTLE analysis, and strategies for growth in the market. The report also analyzes the impact of political, economic, social, technical, legal, and environmental factors on the operations of the IHG group of hotels in the UK.

TLH 314 International
Hospitality
Management
Assessment

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background of hospitality industry and tourism .........................................................................3
Background of IHG......................................................................................................................4
A. SWOT Analysis......................................................................................................................4
B. PESTLE Analysis....................................................................................................................8
C. Analysing porter generic, Ansoff matrix and nykiels strategies for selecting best suitable
strategy operations for attaining growth in market....................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
International hospitality is mainly defining about the process which covers the wide
standards for operating and managing the business as by handling the growth of the company in
the international market while expanding the business. Tourism and hospitality industry is
mainly established for providing services mainly including restaurants, accommodation and
other. The IHG group of hotel and resorts is mainly recognized as the large multinational
hospitality sector which is serving wide range of services to the large number of consumer for
acquiring best accommodation and travelling experiences. This report provide details about the
IHG company with explaining the background of the IHG. Also, the SWOT analysis. Explaining
the background of emerging market. Further, Describing the macro factors by PESTLE analysis.
Lastly using the porter generic strategies, Ansoff matrix and Nykiel's fourteen strategic growth
options, examining the best option for the company for entering and pursing the emerging
market for maintaining long term growth.
MAIN BODY
Background of hospitality industry and tourism
Hospitality and tourism sectors is mainly recognized for serving wide range of services as
to provide leisure and accommodation with travelling from one country to another. This sector is
mainly recognized for contributing as by creating job for the unemployed individual by
establishing various industries for serving the consumers in the dynamic market. This industry is
the largest employers for attaining the growth in the economy as it helps in creating jobs by
providing direct employment to various individuals. As the hospitality mainly aims in including
various services as of food and beverage, logging, travel and tourism, planning for events and
restaurants and bars. This industry is mainly established for fulfilling the needs as of
transporting, accommodating with food, entertainment as established with the recreational
purpose. Further more the tourism industries are mainly established as for providing the products
and service by facilitating the businesses as for acquiring the pleasure with conducting leisure
activities (Bharwani and Mathews, 2021). The main importance of this industry as it helps in
boasting revenues n the economy by creating the jobs and develops the infrastructures which
helps in generating income and boost foreign Exchange earnings.

Background of IHG
The IHG group of hotels is mainly established at the multinational level as for providing
wide range of service to the consumers while operating in the dynamic market. The company is
mainly offering those services to all the families and the couples wit great destinations as for
taking leisure services with luxury. The diverse portfolio of the company mainly accounts for
providing services with offering right hotel to the guest as for satisfying and ascertaining their
needs. The business is mainly operating and adopting the ways as for serving with establishing
the sustainable practices as for operating with using best practices by reducing the consumption
of energy up to 25%. The company is mainly operating the business with the great responsibility
by collecting funding for responding to various disasters for supporting the local communities
with the financial help (de Haast, Busquet and Cescau, 2021). By establishing the wide range of
hotels in the global environment for achieving economic growth this increases the trend of
domestic and travelling in the global surrounding.
A. SWOT Analysis
The IHG is the multinational group which is mainly operating for serving wide range of
hospitality services to travel globally. With using the swot analysis tool helps in evaluating the
company internal factors impacting the business and its operations. The IHG groups is mainly
involving its ownership and managing the business at the wide economic level. With diverse
operating the business operations in the dynamic market various strengths, weakness,
opportunities and threats impact the business and its decision-making capacity this results in
impacting the business performance.
Strengths
 The company operating with strong
global recognition for serving
consumers with wide range of
services. The brands of the hotels
mainly including crowne plaza,
holiday inn etc. the company strong
presence mainly helps in targetting
and retaining the loyal consumers
market.
Weakness
 Operating with weak IT security
mainly aids in impacting the
company data with the malware and
the security issues.
 The company is concentrated into
geophysical locations as it is not
diversified its operations countries.
This impacts in earning revenues and
attaining profits of the firm.

 The company listed in the London
stock exchange helps in capitalizing
the market shares while operating in
dynamic market.
 With using effective recruitment
strategies mainly helps in selecting
the potential employees for working
and serving the costumers with best
services.
 With diversifying and rising great
luxury helps in attracting the
consumers for taking leisure services.
 With adopting the consumer
relationship and the better customer
experiences software in the business
helps in enhancing the services and
experiences of the guest arriving at
IHG.
 With building the string community
holder company as by dealing the
company services for promoting and
it is mainly investing into training
employees for gaining maximum
benefits while serving and operating
in the dynamic market.
 With the autorotation of various
activities and implementing various
software helps in adapting the
changing market conditions.
 With providing wide range of luxury
services to the consumers aims in
 The financial crises of the company
while operating and serving the
consumers impacts its operations for
attaining growth in the market.
 While focusing on the single market
impact the company for earning
revenues and its performance for
attaining the competitiveness.
 With the lack of financial planning
hinders in facing challenges for the
new products segmenting and
diversifying operations.
 Due to uncertain Brexit and
pandemic environment impact the
company and its operations for
serving wide range of consumers in
the UK.


impacting the company and its
operations this helps in attaining good
brand equity which retaining the
potential consumers while operating
in the dynamic market.
 The major strength of the company it
is commanding the wide range of
portfolio with using the best
leadership and its market segment this
helps in attaining competitive edge
while operating in the dynamic
market.
Opportunities
 For diversifying its operations in the
emerging markets helps in growing
the company as with attaining more
profits, this helps in retaining more
international tourism market by
diversifying its operations.
 With introduction more food and
verges menus as with adding more
diversified options to the menu cards
helps in earning more revenues with
ever-increasing room services in the
IHG.
 With using the new technologies help
the company in attaining competitive
advantage this helps in maintaining
loyal consumers through establishing
the value oriented programmings.
 With adopting the new market trends
Threats
 Due to the global crises the company
is acquiring different issues as for
attaining the competitiveness for
operating and serving the consumers
with wide services.
 The uncertain market economy and
the large political factors impact the
company operations for serving and
attaining the competitive advantages
in the dynamic market.
 Due to high competitiveness while
operating in the dynamic market
impacts the profits and revenues
earning capacity while operating its
business at global level.
 The increased dependency on the
intermediaries and its subsidiaries
impacted in earning profits and

of the changing consumer behaviour
helps in diversifying the opportunities
which results in earning growth by
attaining more revenues.
 With adopting the social media as for
marketing and promoting the business
helps in ever-increasing revenue for
attaining competitive advantage and
growth in the business performance
(Inter Continental Hotels Group PLC
SWOT Analysis, 2022).
 With adopting new technologies for
booking the hotel and reserving
restaurant seats helps in grasping
various opportunities for the business
as to attain the competitive advantage
while operating in dynamic market.
 While entering into new emerging
markets as for expanding the business
operations for providing service with
targeting wide target market helps in
attaining profits and earning revenues
for the business.
attaining the growth while operating
in the changing market.
 With the shortage of skilled labour
personnels as for operating in the
dynamic market hinders attaining
growth in the uncertain market.
 The changing legal laws impact in
operating in the dynamic market for
this the company must company with
all the laws for operating its hotel and
resorts.
 The high level of market instability
impacts the business operations as
with changing demand of consumers
and the tastes trends for provide wide
range of hospitality services to
consumers impacts the business in
attaining profits.
Thus, with analysing the internal factors with using the SWOT analysis helps in
impacting the company and its operation. This impacts in achieving its competitiveness for
operating in the dynamic market with establishing it brand positioning in the developing
economy as whole.

B. PESTLE Analysis
With selecting UK for expanding the market as to attain long term growth in the business.
Analysing UK with pestle tool which helps in analysing the country economy and its impacts on
the operations while operating the company in the dynamic UK market.
Political factors
The different political factors influence the country economy and the infrastructure. It
mainly includes trade restriction, employment laws, stability in the political environment which
impacts the business operations in a country. But UK concerning With the stabilise political
environment in the government rule and regulations for operating the business in the UK
economy helps in operating and performing business in the positively which results in attain
growth in the business. With establishing the strong administrative system for operating the
business in the country helps in attaining competitiveness (Espinoza and et.al ., 2019). Also, the
country is mainly recognized as the best for the highest financial and the investment centres for
large number of investors including the positive human capital, providing wide range of
infrastructure facilities, builds reputation while operating and expanding the business in the UK.
Further more, the country is affected by the Brexit uncertainties this resulted in creating more
employment opportunities with gaining economic prosperity for expanding the business.
Economical factors
As for developing the business operations in the UK it is mainly specifying with the
diverse economy which provide wide range of opportunity for the businesses which helps in
attaining growth by producing the products and services with researching and adapting the ate
market trends and consumer preferences (Nassè, Nanéma and Carbonell, 2021). This results in
adding value ascertaining consumer demand while operating in the dynamic market. With
accounting as the 6 th position at the highest nominal GDP in the world in the whole economy
this helps in attaining growth while expanding the business. Further, with attracting high level of
investors with god FDI helps in growing the business. Also, the limited tax rate for operating the
business in UK results in attracting more investors for investing and expanding the business into
UK.
Social factors
Operating and expanding business in UK It accounts for large number of consumer
market with great population level. Also, the government of the country offering wide range of

free services to the consumers as for attaining high standard of living this helps in growing ad
expanding the business in the UK. With the country accounted for good health care systems and
with potentially skilled individual helps in attaining and operating the business with the skilled
personnels this results in attaining growth by performing and producing the products while
working in efficient manner (Inter Continental Hotels Group PLC pestle Analysis, 2022). Further
while operating in the diverse market, the individual residing in that country belong from diverse
culture, backgrounds helps in inspiring more innovation and creativeness for operating the IHG
in UK with introducing new product and services range of attracting more guest.
Technical factors
The benefits for expanding the operations in the country as it is mainly adopting the wide
range of the latest technical trends, also by setting up various leading research institutes helps in
satisfying consumer and efficiently operating with adopting new technical ways. As the county is
mainly recognized with offering the best solutions for advancing and adopting new ways for
operating more convenient in the dynamic markets helps in offering wide range of business
opportunities with serving with using different social media channels. This results in promoting
and attracting wide range of guest for taking leisure services from IHG. Thus, with latest
technical adaptation help in offering wide range of innovativeness for taking the best alternative
solutions for the business which results in attaining growth while operating in competitive
market for the IHG.
Legal factors
For operating business in UK, the company must comply of the various legal laws
including employment law, minimum wage law, maternity benefits, protecting rights of
employees, sick pay and equality act must be complied by the business as to attain success while
operating the business in UK. With complying all the legal laws help in attaining profits and
growth by serving with all the legal laws in the dynamic market.
Environmental factors
With diversifying the business operations, with developing various industries results in
ever-increasing pollution and gas emissions. But while operating and expanding the company
and its operations in the UK helps in taking benefits from the ways and the steps taken by the
government as for limiting the pollution for limiting the spread of pollution (Voegeli, 2021).
Further more, The charities, government mainly adopting steps for spreading and providing

information to wide range of business as to adopt the recycling, less plastic usage for reducing
the impact on environment. But while operating the business in UK, business are impacted by
the bad climatic conditions while operating in highly changing market.
C. Analysing porter generic, Ansoff matrix and nykiels strategies for selecting best suitable
strategy operations for attaining growth in market
Porters Generic strategies
The porter's generic strategy is the positioning strategy that helps the industry to
determine the organization's profitability. The company used to choose the best strategy
that makes them to have the better market and have the long term sustainable growth.
This includes the different factors which is described as below:
1. Cost leadership: In this strategy the company used to focus on the low cost
producer in the market. The cost advantage used to vary and basically depends on
the structure of the company. More over, By having the low cost helps the
hospitality industry to have more customers and to grow in the market
(ARUNACHALAM and FOUNTIS, 2021). If the company is doing well it can
adopt this strategy to attract the customers.
2. Differentiation: In this type of strategy the company used to provide the
differentiate products and services in the market. It used to select the one of the
best attributes that makes them to have different from the other hospitality in the
market.
3. Focused: In this strategy, the company or industry used to focus on the two things
that is cost focus or differentiation focus. In this the company used to focus on the
target market and differentiation. further more, The differences and cost
behaviour of the hospitality industry help the company to grow well in the market.
Ansoff matrix framework
The Ansoff matrix is the grid that helps the company or industry to have the management. This
helps the stakeholders to associate with the different growth strategies that makes the hospitality
industry to grow. The four strategies of Ansoff matrix is as described below:
Market penetration: In this strategy the company used to grow in the existing market by
having the existing products and services in the market (Kurniawan, Iswahyudin and Suciati,
2020). Further more, This strategy makes the company to increase the market share in the same

market. In this the company increases the sales in order to increase the production and have
better distribution and promotion in market.
Product development: In the product development the company used to create the new
products and services in the existing market. More over, This will help the hospitality to extends
it products and services in order to achieve growth in the market.
Market Development: The market development strategy helps the company to expand
its products and services in the new market. As the hospitality industry is so wide that helps them
to have development and expansion of their products in the new market (Abu-Rumman, 2021).
Further, With using this strategy it helps in attaining growth by Selling existing product with
entering into new market as to attain competitiveness.
Diversification: In this development strategy, it makes the company or industry to enter
or expand in the new market by having the new offerings. As By having the proper research and
development it will help the hospitality to enter the new market in order to sell the best services.
Its is of two type that is related and unrelated diversification. Further more, in this it is mainly
used for diversifying the operations as of products and services offered by the company to attain
competitiveness while operating in the dynamic market.
Nykiel's fourteen hotel growth strategies
Nykiel's fourteen hotel strategies, it mainly explains 14 strategic growth operations for
the business.
 In the horizontal expansion it is described expanding the hospitality in one line mainly in
products or in services.
 In the geographical expansion it mainly described about expanding the business in the
geographical regions.
 In the product hybridization expanding the products ranges across services.
 In the specialization it helps in upscaling the products in both the pricing and services
being offered.
 As in the Product tiring, developing the complementary products and services by the
business in the other brand name as for offering wide range of quality services.
 Further in the product rebranding it mainly comprises the focusing on the product
relabelling, in the level of quality, services and the location.

 In franchising leasing the bran and property as to attain growth in expanding operation in
market.
 In the non franchising growth stagy it mainly specifies about keeping control on the
products and services offered with managing its quality when no franchise are
established.
 The management contract mainly described about specializing in managing in insurance
companies, banks while managing the hotel operations.
 In the value related product and services, growing the business by launching the new
products and services as to satisfy the needs and wants of the consumers.
 In the singleness, developing products by just entering into segmenting the products with
managing control.
 In the global positioning, growing the business operations by targeting and growing at the
overseas location.
 Further more, in the vertical and horizontal integration, growing in the business by
involving in more than one segment as for growing more opportunities which results in
gaining competitive advantages as by owning shopping malls.
 In the brand collection, growing by investing franchising of the companies as by taking
advantage with buying relatively low prices for attaining growth.
The most suitable growth strategic options from the porter generic for the IHG hotel and
resorts is the differentiation strategy, it mainly helps in growing business into existing market as
by growing the range of products and services offered by the company as to attract wide range of
consumers. offering new services and products better than the competitors while operating in the
existing market UK helps in retaining loyal consumer market which results in attaining revenues.
Further more, As by using the NFC technology in the hotel helps in personalizing the
guest experiences and gain advantage which results in personalize guest experiences and with
adapting new trend of building smart rooms and keys different from the competitors (Vasić and
Čerović, 2018). Also in the Ansoff matrix using the product development growth stay as for
expanding the business into the existing market by offering new range of products and services
by using new technology as for expanding and growing the market share while operating on the
existing market. Further more, in the fourteen strategic model, the best and suitable strategy for
the company is the product's hybridization as by expanding the products and services in

coordination. With expanding and opening the new branch of hotel in UK as for offering new
services with establishing restaurants and wide dinning option in UK.
The practical adaptation of the selected strategy, As for expanding the company for
attaining growth by introducing the New products in the hotel as the restaurants while operating
in the existing market. Further more, With developing the live music restaurants in the IHG, UK
hotels helps in diversifying the range of services offered to the consumers in the hybrid manner
with expanding the new product in the existing market for growth the business and attracting
guest for visiting hotel.
CONCLUSION
From the above report it can be concluded that, expanding and entering the business into
new markets helps in attaining growth and achieving more profits for the business. With using
the SWOT analysis helps in understanding the internal factors impacting the business and its
operations for serving the large consumers market with providing various service. Also, with
using the PESTLE analysing help in identifying the macro factors of the impacting the company
while entering in the UK emerging market. Further more, With using the porter generic growth
model, Ansoff matrix and the nykiels growth options mainly helps in analysing the best options
for pursuing the selected market for entering and attaining growth by maintaining the standards
of the business.

REFERENCES
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Online
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group-plc.php>
Inter Continental Hotels Group PLC SWOT Analysis.2022.[Online]. Available through:
<https://howandwhat.net/swot-analysis-intercontinental-hotels-group-plc/>