Strategic Management Plan for InterContinental London - The O2

Strategic
management plan

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Applying appropriate frameworks for analysing impacts that macro environment have on
particular hospitality company and its strategies.........................................................................1
TASK 2............................................................................................................................................3
P2. Analysing internal environment together with capabilities of Hospitality Company with
appropriate frameworks...............................................................................................................3
TASK 3............................................................................................................................................7
P3. Application of framework of Porter’s Five Force Theory for evaluating competitive force
of specific market sector for hospitality entity............................................................................7
TASK 4............................................................................................................................................9
P4. Applying models, concepts and devising strategic plan for the hospitality business............9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality is defined as a relationship among host to guest in which host reviews customers
with goodwill and entertainment (Ansoff and Et. Al., 2018). Hospitality business strategy is the
master plan that is set by companies providing accommodation, transportation and other facilities
to travellers with the hope of securing competitive position and achieving desired ends. It
involves various actions and moves through which the business is able to attract customers,
strengthens performances, generates revenue and optimises profits. To understand about
hospitality business strategy, InterContinental London - The O2 is selected. It is one of franchise
group which is owned by InterContinental Hotel Group. The hotel stands out at Greenwich
Peninsula, London, UK.
The report engrosses application of appropriate framework for analysing influences
creates by macro environment on organisational strategies. Further, it assesses internal
environment and capabilities using appropriate frameworks. It also evaluates analysis of
competitive forces by using Porter’s Five Force model. At last, certain models and concepts are
applied for assisting understanding and devising strategic plan for the company to attain future
goals.
TASK 1
P1. Applying appropriate frameworks for analysing impacts that macro environment have on
particular hospitality company and its strategies
About the company: InterContinental Hotels Group is large group that owns well popular
along with respectful brands including Crowne Plaza, InterContinental London – The O2,
Holiday Inn and so on. One of the brand of the hotel is InterContinental London - The O2 is one
of luxury hotel situated on Green Peninsula in London, UK (InterContinental London - The O2,
2018). It has around 453 luxury rooms, 24 hour reception, ballroom for nearby 3000, large
conference centre, beauty spa as well as club lounge. The vision of InterContinental London -
The O2 is to build strong system with hotel industry. The mission of the company is to perform
hospitality services for creating great experiences for hotel guests. The objectives of the
organisation are to achieve sustainable growth in flow of cash and profits, delivering high quality
services, winning markets along with establishing business units at global level.
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Macro environment: It is wider situation on economy as opposed with particular market
(Akter and et. al., 2016). It comprises of influences that affect entire decision making of business
and is least control by the managers. InterContinental London - The O2 performs activities in
micro environment and to analyse the impacts of it, managers uses several kinds of frameworks.
PESTLE Analysis: PESTLE Analysis is the appropriate model as it assists in
environmental scanning elements of strategic management. The factors that impacts efficiency,
productivity and strategies of InterContinental London - The O2 are as analysed:
Political: In UK, political system is generally stable and strong that opens various
opportunities for the organisations that work in its boundaries (Cavusgil and et. al., 2014). It is
also analysed that the country provides large number of opportunities for expansion in other
nations that impacts positively on strategies implemented by InterContinental London - The O2
for performing operations without any hurdles. However, advisory policies for COVID - 19 by
government restrictions on transportation and travel in UK impacts negatively on the strategies
and company as it has to temporarily suspend operations till further notice.
Economical: Economic performances of UK make it at fifth largest economy in entire
world. The growth rate and consumer spending in travel industry are some economic factors
which impacts positively on InterContinental London - The O2. For example, for employees in
different age groups, certain minimum wages are set by UK government that helps companies to
employ people for little timing and get work accomplished. the minimum wages for people of 25
years and older are £8.21 per hour, 21 to 24 years is £7.70 per hour and 18 to 20 years is £ 6.15
per hour (Employment wages in UK, 2020). When managers of InterContinental London - The
O2 employs people for part time then it impacts positively on its strategies as with this they gets
huge part of work accomplished to meet customer demand and gain better results.
Social: Travellers in UK are bit more demanding as they have huge preferences, attitudes
and choices to spend on entertainment and travelling. Along with this, they also spends huge
money in special packages which are offered by hospitality business (Cavusgil and et. al., 2014).
it is analysed that managers of InterContinental London - The O2 devises strategies and plans to
communicate its targeted audience and understand their preferences and choices that impacts
positively as this helps the entity in making few modifications in strategies that results in
meeting needs of all customer types and enhance its position in hospitality industry.
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