International Hospitality Management Assessment

INTERNATIONAL
HOSPITALITY
MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
Background of Hospitality Industry and tourism.........................................................................3
Background of IHG .....................................................................................................................3
SWOT analysis of IHG................................................................................................................4
Background of Emerging markets...............................................................................................5
PESTEL of selected emerging market: .......................................................................................5
Hotel strategy to be adopted and implemented by IHG using strategic model and frameworks
within the entering market...........................................................................................................7
Justification of strategy..............................................................................................................12
Practical application of strategy, 5 and 10 years ahead.............................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
Appendices ....................................................................................................................................15
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INTRODUCTION
The international hospitality management refers to the field that involves overseeing the
day to day administration and management, commercial and operational activities of
international businesses in tourism and hospitality industry (Gardini, Ottenbacher and Schuckert,
2020). Various management concepts and administrative skills are applied in the tourism and
hospitality management.
InterContinental hotels group (IHG) is one of the leading hotel companies in the world
with a purpose of providing true hospitality to everyone. The company have 16 brands including
luxury, premium, essential and suits collection as their heads.
In this report, the background of the company and markets will be analysed. An emerging
market for the company to tap and its PESTEL analysis will be conducted. The SWOT analysis
of the company and its strategic growth strategies using Porter's 5 forces model, Ansoff Matrix
and various growth options will be analysed. The chosen strategy's justification and practical
application will also be provided.
Background of Hospitality Industry and tourism
The history of hospitality rises from ancient times around 40 BC, according to the
experts. It was the idea of Greeks to conduct social and religious gathering and providing thermal
baths for relaxation. These baths are called Modern Spa days today. Then the Romans came up
with the ideas to provide accommodations for travellers on the budget of the rulers. Every
community have different contribution in bringing the idea of hospitality generation.
Background of IHG
In 1946, Juan Trippe established American InterContinental chains. In 1981, he sold the
company to Grand Metropolitan, who then sold it to Japanese based Saisan group. In 1998,
Saisan group sold the company to British brewery Bass who changed its name to Six Continents.
In 2003, the independent corporation of InterContinental Hotels Group (IHG) was created after
the Six continents (previous incorporation) split into two companies. IHG then focused on hotels
and soft-drinks. However, after some time it sold its interest of soft drinks by IPOs
(INTERCONTINENTAL HOTELS GROUP PLC, 2021).
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SWOT analysis of IHG
SWOT analysis is a strategic tool that is used by the organizations to analyse their
internal environments (Vlados, 2019). IHG can maintain its leading position in the market by
analysing its Strengths, Weaknesses, Opportunities and Threats.
Strengths: The leading company in its industry, IHG has a number of strengths that enables it to
maintain its leading position in the market. The company have highly skilled workforce through
their training programs. The company enjoys consistent quality by implementing automation in
activities. IHG's go to strategic are highly successful in the market. It has a great track records in
product innovation. The customers of the company and highly satisfied through its delicates
consumer relationship management. The expansion of company in new markets have creates
new streams of revenue generation and has diversified its economic cycle of risks in the markets
it operates in.
Weaknesses: There are some areas where the company needs improvements. The company is not
very good at forecasting the market demands of its customers. Financial planning and marketing
of the products is not efficient. Even tough the product have good sales in the market but the
positioning is not clearly defied which can be attacked by the competitors. The company needs to
put more investments in its product innovations given the size of expansion it is planning.
Opportunities: The company can use new technologies which can be used to practice
differentiated pricing strategies in new segments or new market. It will enable the company to
maintain its customer loyalty (Vlados, 2019). New trends in consumer behaviour provides the
company to build new revenue streams and new product categories. The stable cash flow
provides the company an opportunity to invest more in product segments. Market developments
can help the company in building a competitive advantage in the market. The company can also
diversify its online channels of sales such as social media platforms which can be used to
forecast the product demand easily.
Threats: IHG operates in a highly competitive industry. The storage of skilled workers and
rising pay scale of workers in a certain global market poses a threat to the company. The highly
profitable products are only seasonal and any event organized expect in the season will incur
huge losses to the company. Product imitation of IHG is easy which can impact the sale margin
of the company. Changing government regulations posses big threats to the company (Quezada
and et.al., 2019).
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