Hospitality Business Strategy for Ritz Carlton UK Hotel

UNIT 18 GLOBAL
BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Analysing impact and influence of macro environmental factors on RitzCarlton UK hotel. 3
M1, D1 Critically analysing hospitality macro environment......................................................5
P2 Analysing internal environment and capabilities of a RitzUK using appropriate
frameworks..................................................................................................................................6
SWOT ANALYSIS.....................................................................................................................9
P3 Applying porter five forces for hospitality organization.....................................................10
M3 Devising proper strategies to improve competitive edge and market position of Ritz
Carlton.......................................................................................................................................12
P4 Applying range of theories for strategic planning in Ritz Carlton-UK...............................13
M4 Producing strategic management plan that has priorities and objectives...........................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Hospitality sector is broad category that includes all kinds of services such as food,
lodging, drink services and much more that are provided by various business firms. Also, present
report is based on Ritz is very well-known for providing premium class of services to all its
guests in UK and other parts of the world. Moreover, the study will identify impact of various
macro environmental factors on the operations of Ritz business along with influence of these
factors in taking various strategic business decisions in the future.
Also, the report will identify the impact of internal environment through applying various
models and concepts. Thus, through application of these models the firm will be able to identify
the weakness and find out ways to overcome it on timely manner. Furthermore, porter five
forces model will also be applied so that competitive advantage to Ritz could be derived. Lastly,
range of models and concepts for better future strategic planning and success will also be
covered under this report in detail.
MAIN BODY.
P1 Analysing impact and influence of macro environmental factors on Ritz UK
It is very important for nay organization to closely analyse the impact of external
environment so that better policies and strategies might be developed in the future. Also, external
environment of any company is affected by many factors which can be explained through
applying the PESTLE model that is as follows:
Political factors: There are the factors that affects the business operations on large scale.
Also, there are various factors such as political instability, trade barriers, certain restrictions that
are imposed by the country due to the involvement of political party in the country (Aladag and
et.al., 2020). Moreover, in Ritz it can be said that it is very important for company to consider
all the political matter while expanding into new regions so that chances of restrictions might be
minimized. Thus, it needs to consider all the political factors such as changing policies, various
taxes, corruptions, and existence of various pressure groups among the target markets while
making any strategic planning for the business.
Economic factors: Factors such as exchange rate, interest rates, inflation, market
conditions also impact the working of the firm. Moreover, well-developed infrastructure
facilities in smooth business operations and increase the growth of the firm (Roma, Panniello and

Nigro, 2019). Also, after pandemic it can be said that there is high unemployment within the
country that might turn out to be positive factor for the firm as it would allow in hiring more
muber of workers within the UK at lower wage rates thus saving cost of the company.
However, if labour market conditions are not good in any country than there are chances that the
firm would not be able to operate smoothly in the target market.
Social factors: Culture in any country is made up of various culture, traditions, customs,
beliefs etc. and hence it is very essential for Ritzto choose and target the right market segment so
that greater revenues are generated for the future. Moreover, it is very important for the quoted
firm to understand the people attitude towards various services so that certain changes could be
than made accordingly. Also, to align the current market practices with overall business goals
Ritz need to change current market strategies so that better roles and responsibilities might be
assigned to all members that will further help in ensuring efficiency of the firm. Also, adopting
this type of method would help the firm to create goodwill of the firm and increase brand loyalty
of its customers.
Technological factors: With continuous improvement in upcoming technologies, it is
crucial for Ritzhotel to make certain changes in its working so that it might sustain in the market
for longer duration and maintain competitive advantage (Cerchione and Bansal, 2020).
Moreover, use of social media platforms by Ritzto promote various products and services is very
essential so that more people are attracted towards the hotel services than in comparison to
others. Furthermore, through discovering new suppliers, technology and creativity at the
workplace Ritz UK would be able create positive impact and thus would be able to introduce
new growth strategies in smooth manner. However, using older and outdated technologies would
create negative impact in form of losses and wastage of resources for the quoted firm.
Legal factors: These factors have major impact on the firm as it is necessary for any firm
to follow and comply with all legal rules so that there is no interference of the third party in the
future. Also, Ritz UK hotel is very well-known for all its services that are offered at its hotels.
Therefore, it is very important that all legal laws followed in any particular country are strictly
abided by firm at workplace and among its employees. Also, this factor would be positive only
when all the new undertakings by the firm are taken in coordination and support of government
of the country otherwise it might create problem for the firm to undertake certain activities for
growth of the company.