SWOT and PESTEL Analyses of IHG Hotel in International Hospitality Management

International
Hospitality
Management
Contents

INTRODUCTION...........................................................................................................................3
Background for Hotel industries..................................................................................................3
Background for IHG Hotel..........................................................................................................3
SWOT Analyses..........................................................................................................................4
Background to emerging markets................................................................................................6
PESTEL Analyses.......................................................................................................................6
Porters Generic Strategies, Ansoffs matrix and Nykiel’s fourteen..............................................9
Justification of strategy..............................................................................................................13
CONCLUSION..............................................................................................................................13
REFERNCES.................................................................................................................................14

INTRODUCTION
With the increase in globalisation and liberalisation, the movement of people across the
nations has increased. People travel because of various reasons these reasons may include
business meetings, pleasure, events, weddings and so on. In such cases as the craze or percentage
of travelling among the people has also increased the business of hospitality business and
services to a great extent. People who travelled need some place to stay, hotel services provide
the space to travel to stay their when they have travelled to some other place. There are different
types and variety of hotel services according to the needs and budgets of the guests. For
reference purpose this report has taken an example of a company, IHG. It is a British company
which was founded in the year 2013 by Patrick Cescau. It is a multinational company which is
engaged its business in providing the hotel services to the people. The company is spread around
100 countries.
This report discusses the SWOT analyses of the company, in which the strengths,
weakness, opportunities and threats of the company has been mentioned. The external analyses
has also been included. Apart from this the report also includes about the Porter's generic and
Ansoff Matrix of the company.
Background for Hotel industries
The businesses for hotels were initiated in Europe and North of America in some 17th
century. Later this concept takes a huge height and majority of evolution were seen in this field.
With the time several kinds of hospitality space were invented and created. With the increase and
convenience in travelling and tourism, the need for such spaces where in demand which resulted
in the major growth and profit in these areas. The hotel industry is still taking its evaluation
according to the contemporary needs and demand of customers or travellers and these hotels tries
their best to satisfy their customers.
Background for IHG Hotel
The company comes into the category of one of the leading companies when it comes to
hospitality business. Their slogan or motive for work is to provide great experience to their
guests by serving the best to them. Respecting and greeting the customers is another major
purpose of this hotel. This hotel is loved by majority of population because of the serves they

have offered to their guests. Now the company has planned to expand their business by
establishing them at various countries like China, Bali, Indonesia and etc.
SWOT Analyses
The SWOT analyses considers as an internal analyses in which the organisation internal
resources get evaluated and compared. The strengths and the weakness are considered as an
internal analyses whereas the opportunities and threats are the external analyses. SWOT stands
for strengths, weaknesses, opportunities and threat. It is considered as an important analyses for
evaluating the resources and forming the required strategies. It is one of the methods for micro
analyses. In SWOT analyses:
Strengths are the unique qualities which the organisation has. These qualities make the
organisation different from other companies.
Weaknesses are the weak points or the areas where the organisation lacks behind (Evans, S., and
et.al., 2017). At these points the organisation can work and convert them into strengths.
Opportunities are the area of field where the organisation can explore more for its growth and
survival purpose.
Threats are the risks which the organisation is prone to. Organisation can prone with these risk
and to reduce or eliminate such risks they can form the strategies accordingly.
The SWOT analyses of the IHG company is as follows:
Strength:
 The organisation has invested a huge amount in providing the professional training and
development program to its employees or staff members. Due to this the company has
very much skilled and professional workers which is considers as a biggest strength for
the company. The staff members are also very much motivated as their organisation
provides them with necessary development programs for themselves.
 The IHG group has adopted the system of automation of activities in which they
according to the demand scale up and scale down the labour force. With this system, they
are able to save much of their costs.
 The company with its strong expansion activity and strategies has build up the new
streams for its revenue (Maniora, 2018). Its expansion and diversification into the new
markets has enabled them in earning new profits and become a globally strong hospitality
company with excellent services.