International Hospitality Management: SWOT Analysis, PESTEL Analysis, and Growth Strategies

International Hospitality
management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
A. SWOT analysis of Inter-Continental Hotels Group...............................................................3
B. Take one of the emerging market for the Inter-Continental Hotels and conduct its PESTEL
analysis which has direct or indirect relevance to hospitality industry.......................................5
C. Explain the Porters Generic, Ansoffs matrix and Nykiel's fourteen strategies use by Inter-
Continental Hotel group to identify the growth options in new market.....................................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
International hospitality management refers to the field that provides facility to students
to travel and work abroad in careers within the support of hospitality industry (Arora and
Rohmetra, 2010). International hospitality management is basically deals in attaining bachelor's
degree that concentrate in courses in both business and international hospitality. The organisation
taken for this topic is Intercontinental Hotel Group (IHG). IHG deals in hospitality industry,
established in year 2003 as a public company. The company is one of the leading hotel
companies worldwide with headquarters in Denham. The focus of company is to provide True
hospitality for everyone and specialities of this group is in the sector of hotels, resorts,
hospitality, and food & beverage. This report covers following topics that are SWOT analysis of
Intercontinental hotels Group, PESTEL analysis of emerging market with its effect on national
and international level and use of porters generic strategies, Ansoffs matrix and Nykiel's fourteen
in the growth of the company and how these strategies help the company in maintaining growth
and share position in the marketplace.
MAIN BODY
A. SWOT analysis of Inter-Continental Hotels Group
A SWOT analysis is a high level shrewd planning approach that helps organisations to
understand and identify different areas where they are performing well and where they need to
improve, both from internal and external perspective (Bojanic and Reid, 2017). Internal factors
refers to strength and weaknesses whereas external factors refers to opportunities and threats.
The use of this approach at the beginning or in-between the process helps in identifying and
analysing the needs and requirement in the strategy as SWOT analysis has a ability to look
across the business and offer insight into competitive environment and business landscape.
SWOT analysis is a systematic planning method that is used by Inter-Continental Hotel Group,
top management team to do a situational analysis of the organisation. ICH is one of the leading
organizations in hospitality industry, hence use SWOT analysis in analyzing and reviewing the
market conditions in order to maintain its prominent position in the marketplace.
Strengths
As ICH is leading company at global level, so has multiple strengths that enable it to
flourish in the market place which are as follows-
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 Workforce: The company has high skilled workforce as they invest huge resources in
training and development of its employees and also motivate them to achieve more.
 Regulation of activities: Continuous regulating of activities within the company helps in
maintaining the consistency in quality and also enabled them to scale up and scale down
the functioning of the departments according to the demand in marketplace.
 Customer satisfaction: The company has able to established its relation with customers
and has able to achieve customer satisfaction and also able to established brand equity
among the potential customers.
Weaknesses
Weaknesses are those areas where ICH group need to improve its performance by
applying SWOT analysis and focus on improving its competitive advantage and strategic
positioning (Brookes, 2011).
 New Technology: Company need to make more investment in new technologies in order
to make the functioning fast and to expand the business in other countries.
 Forecasting: Company need to focus on proper product demand forecast as improper
forecasting has lead to high rate loss of opportunities in comparison to its competitors.
 Financial Planning: Improper financial planning has lead to ineffective use of funds as
the current assets ratios suggests that company can use the cash more efficiently than the
current usage.
 Inventory management: Company's usage of day inventory is high in comparison to the
competitors which has impact the long term growth of the business.
Opportunities
Leaders and managers within the company looks toward the future and consider all the
big possibilities for the growth and development in the market (Chang, Gong and Shum, 2011).
 Competitive advantage: The development in market will focus on reducing the
competitor's advantage and enable ICH to increase its competitiveness in comparsion to
other business competitors.
 Transportation cost: The company has decrease the cost of transportation in order to
bring down the cost of company to provide opportunity either to boost its profitability or
provide benefits to the customers.
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