Sustainable Practices in the Hotel Industry

REPORT

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Hotel industry is one of the fastest growing sectors across world. As the cost of living and
mode of income is increasing, more people wish to have some time leisure activities. These
activities have given opportunities to small hotels like The Ritz to expand business in the UK and
all over the world. But it must also be ensured that for expansion, an organisation must consider
different factors like socio economic, culture, political, customer behaviour, technological and
environmental so that they can make effective planning for sustaining and growth of their
business in the competitive market (Wei, 2013). Apart from making planning in external sector,
the organisation must also include internal factors also to core competence in competitive
market. Enlisting and analysing these factor will help in examining the growth and expansion
policy easily.
TASK 1
Ritz London is a renowned hotel in the UK in current scenario. It is one of the prestigious
hotels in world. The hotel is a small scale business organisation for a very long time but effective
planning in recent trends has helped the organisation to work effectively in competitive market.
The growth of the organisation is to effective planning of external market by using different
analytical tools which helped them to analysis exert aspect of the external market (Assaf, 2011) .
Ritz London for covering every aspect in market structure their planning includes three
important factors like:
 PESTLE analysis
 Cross culture dimension
 Viable marketing strategies
PESTLE Analysis
PESTLE is an analytical tool which helps in studying the external factors of
organisation. Ritz London has effectively analysed different external factors which influence the
expansion policy of hotel. The factors which are analysed in external factors are political, social,
technological, legal and environmental. These factors help the hotel to use environmental
resources in effective way.

Illustration 1: PESTEL ANALYSIS
 Political factor- Politics play a dramatic role in the expansion of business and
understanding its impact is necessary to sustain in competitive market. A stable
government helps organisation to make planning for longer term in that country but
change in existing government and their policies will affect business of the hotel. In the
current scenario, Brexit is one of the areas of concern in business as many of the
organisations do not have any idea how the market will perform in the future. Like other
hotels, it is one of the areas of concern for organisation. So, the hotel have planned to
expand their business in other markets like they have spread their grass routes in New
York, New Delhi and Paris where the existing government tends to support FDI (Foreign
Direct Investments). This turn out to be a profitable venture for the organisation as they
are making huge profit from these markets (Shairullizan KamalulAriffin, 2012). The
organisation wishes to expand their business African and South- Asian where there is
political stability and FDI is welcomed there.
 Economical - This is the other factor the hotel has considered while investing in mew
market. The organisation first made sure that they have adequate amount and funding
which will help them to sustain in market as well as they must also understand the
economic condition of people (Teng, 2012). Hotel has made sure that they reach out to
larger section of people, and their pricing strategy must match to the cost of living of
people so that more and more people can afford the prices. The hotel have effectively
analysed the market, customers demand and trading practices which helps them to make
effective plan and approach in doing business that area (Segarra-Oñ , 2012). The Ritz
London have effectively understood that the trading practice in UK is different form