International Hospitality Management: SWOT and PEST Analysis of Crown Plaza Hotel

This report analyzes the SWOT and PEST factors impacting Crown Plaza Hotel in the international hospitality industry. It also discusses the hotel's strategies for growth and development.

International
Hospitality
Management
·

Table of Contents
INTRODUCTION......................................................................................................................3
SWOT analysis...........................................................................................................................3
SWOT analysis of Crown Plaza Hotel...................................................................................3
PEST Crown Plaza Hotel...........................................................................................................5
Hotel strategy to be adopt and to be implemented.....................................................................6
Ansoffs Matrix .......................................................................................................................6
Porter Generic Strategy Model-..............................................................................................7
Nykiel’s 14 growth strategies ................................................................................................8
Justification................................................................................................................................8
CONCLUSION .........................................................................................................................9
REFERENCES .......................................................................................................................10
Books and journals ..............................................................................................................10

·INTRODUCTION
Tourism is transfer of visitors form there living place to other for exploring new
things and places for satisfaction of their wants and enjoys life. International Hotel Industry
is that part of truism industry which is related to accommodation of visitors for tourist place.
Hotel industry play an important role in firm tourism business as it provides infrastructure
facility to business and play as major part of tourism industry (Kozak and Kozak, 2016).
Crown Plaza Hotel in Royal Victoria Dock is a hotel chain with headquarter in London, UK.
It is a chain of hotels which is operating more than 100 nations with more than 3000 hotels
and 118000 beads. This hotel is listed in star category with market share is a more than 10%
in whole tourism industry. The main objective of hotel is to provide world class service to its
customers and provide maximum satisfaction from the side of hotel. In this report, This hotel
will be consider as the base where the SWOT and pest will be analyse for knowing impact of
internal and external factors respectively. Here the strategic modals will also include in
which decision making and strategies will be analysis. Porters Generic Strategies, Ansoffs
matrix and Nykiel’s 14 growth strategies will be used to help hotel in growth and
development (Grobelna and Marciszewska, 2016.
Overview of company
Crown Plaza Hotel in Royal Victoria Dock is a hotel chain with headquarter in
London, UK. It is a chain of hotels which is operating more than 100 nations with more than
3000 hotels and 118000 beads. This hotel is listed in star category with market share is a
more than 10% in whole tourism industry. The main objective of hotel is to provide world
class service to its customers and provide maximum satisfaction from the side of hotel.
·SWOT analysis
SWOT analysis is that framework which is used by firm for scanning it internal
factors which can impact on firm performance. In this framework strengths, weakness,
opportunity and threats of firm will be evaluated for development of function and use them
for formulation of strategy according to this.
l壱SWOT analysis of Crown Plaza Hotel


壱Strength WeaknessGlobal presence is major strength of Crown Plaza Hotel as it
help hotel in getting is operations at global level , it increase the chances of profit as

customer will get hotel services in every country where there is large number of
services and can visit the tourism destination which it want to visit.

壱Employees also act as the strength of this hotel because of recruitment and selection
process. hotel follow a strict process for recruitment of employee from different
sources this will also help firm in getting qualified employees and also lead in
achievement of firms objective on time with increase performance.

壱Major strength of hotel is that it focuses on building relationship with customer
which will help firm in relating customer and will also leads in increase market share
of firm. This also aid customer in full satisfaction. Week information and technology
system acted as the weakness of firm this is because there is lack of updating in this
field by management. This can be improved by firm with the help of technical
assistance and upgrade.


壱Lack of feedback reporting is also a major issue in hotel as there is delay in
responding queries and complaints of customer, this is because there are number of
customer and staff is not according to this so some time hotel have to suffer from this
problem and it act as there weakness. Opportunities Threats Hotel have the chance to
increase its marketing operation more as there is continues development in tourism
industry. This will help hotel in establish its branches where there is more visitors.
This will aid it in increasing its market share and increase infrastructure for more
profitability and development.

壱Bring technological changes in firm is also an opportunity for Crown Plaza Hotel as
it can use online booking manager and can list itself on various platform like Trivago
and many more. This will help hotel in increasing the satisfaction of customer and
minimising burden from employees with booking rooms online. This will also help in
management of work (Buhalis and Leung, 2018).Large number of competitor can act
as threat of firm this is because large number of competitors will decrease the profit
ability of firm, and in hotel industry there is big range if hotels which are selling same
type of product also it all depend upon the brand value of hotel (Chang and Busser,
2017).

壱Legal requirements are changing continually and verify from nation to nation which
firm have to use to change its policies. This is so fast that firm have to which it
continually but some time is lag blind this al will stuck between legal liabilities.

壱Changing exchange rates will also impact on firm as it have to cope with them and can
cause huge loss to it. Swot will help Crown Plaza Hotel in getting access to its number of
function which are related to strengths and weakness which can coordinated for formulate
business strategies.
·PEST Crown Plaza Hotel
It is that analysis which is used to identify the external forces which can impact on
Crown Plaza Hotel. This includes the analysis of political, economic, social and technical
factors which can impact hotel performance from outside. These all will be identified in
terms of Crown Plaza Hotel (Yoon, Jang and Lee, 2016).
Political factors: It includes those factors which are related to government and
polices related to business in nation where frim is operating. This has direct impact on firm
decision and strategy formulation. For example in UK there is political unrest in form of
BREXIT which have direct impact on firm as after it there will be huge changes in
government policies which can also impact on firms policies and procedures so this have to
be analysis by Crown Plaza Hotel to get regular updates regarding this and formulate polices
according to it (Min, Park and Kim, 2016).
Economic factors: in this, those factors are included which are related to economic
environment of nation here firm is operating. It consist of exchange rates, GDP growth, etc.
which are directly related to firm profitability and smooth flow of actions. In context of
Crown Plaza Hotel, there are various factors which can impact on firm profitability like good
economic growth will also help hotel in grow faster and help in increasing number of
customers which will also leads in increase profits and productivity.
Social factors: these are those which are lying in society or arise because of society
where business is operating. These are also an important part of firm and will influence
working of firm. It includes number of factors like trends, beliefs and culture which is going
in society. This have no direct impact on Crown Plaza Hotel but it impact indirectly as social
trends decide tourism in nation or the area where firm is working and Crown Plaza Hotel is
dependent on tourism because its major customers are those who came to visit particular site.
The society of UK is rich and wealthy so it attract more and more customers in UK which
help Crown Plaza Hotel in getting benefit of this so social factors have good impact on this
hotel.

Technical factors: these are those which include the technological updates in
business environment of hotel industry. There are not many technological updating in this
industry but infrastructure development id related to technological development in hotels for
example there are number of hotels which are using sound and light facility in there hotels
and guest houses . They are also using cashless facilities, essay check in and check out
function with all functions which are related to customer satisfaction. Crown Plaza Hotel
should also use these things which can help it in growing its business and bring improvement
in firms business (Baker and Magnini, 2016).
·Hotel strategy to be adopt and to be implemented
·Ansoffs Matrix
The Ansoff matrix is a strategic planning system that offers a structure which helps
the manager in increasing the growth and development of business organisation in future
time period. There are four strategies which is used for boosting growth and identify risk
related with each strategy. In context of Crown Plaza hotel, the manager make effective
strategy, policies and procedures for accelerating the success and growth in future period of
time. Therefore, there are four strategies which are adopted by Crown Plaza Hotel which is
going to be mentioned below:
Market Penetration: Hereby, the business firm focuses on increasing sales by
offering available products in existing market. There are different services which is provided
by the staff member of Crown Plaza Hotel such as wake up call, parking facilities as well as
healthy food services to its customer in order to increase the revenue and profit in future
period of time. They offer high quality services to its customer in order to satisfy their need
and wants. It helps in boosting the brand image and goodwill of hotel in front of customer. It
helps them in retaining the customer for a longer period of time (Park and Park, 2017).
Product Development: In this strategy, the firm want to develop a new product in
the existing market in order to expand the category of product within marketplace. In
addition to this, the manager has a knowledge regarding present tactics of market and they
bring the new ideas in order to satisfy the current need and requirement of customer. In
context of Crown Plaza Hotel, the manager focuses on offering innovative services to its
customer which includes Free Wi-Fi, Laundry, dry cleaning facilities in order to increase the
revenue and profit of the company.

Market Development: Herein, the business organisation take entrance in new
marketplace with their prevailing products. In reference of Crown Plaza Hotel, the manager
offer existing services in order to attract the ample of customer in new marketplace. In
addition to this, then main purpose is to increasing revenue by providing prevailing services
to its user. Apart from this, they expand the functioning of their business at global level. It
helps them in increasing the sales and profitability level in future period of time.
Diversification: In this strategy, the firm take entrance in the new market with
innovative products. In context of Crown Plaza hotel, the manager provide the innovative
services such as Bar, swimming pool as well as fitness centre facilities to its customer. They
bring new ideas in order to attract large number of customer. It helps them in expanding the
revenue and profit in future period of time.
From the above mentioned strategies, it has been analysed that after 5 10 year the
manager of Crown Plaza hotel provide the innovative services according to the need and
wants of consumer. It helps them in expanding their business at both national as well as
international level.
l壱Porter Generic Strategy Model-
In today’s world, competition is rising at rapid level and new entrepreneurs are
entering into the market with innovative ideas as well as thoughts. In relevance with Crown
Plaza Hotel, marketing team of the firm always remain active and aware about trending and
changing activities of market which help to implement effective strategies from time to time.
They are able to implement tactics as well as strategies with help of Porter Generic Model
which is tool used by organisation to take competitive advantage by using tactics (Gursoy,
2019). According to this framework, enterprise mostly use four types of strategies which are
discussed below-


壱Cost Leadership- The first one is cost leadership which depicts that every entity
wishes to become producer of most effective cost in market. This results in acquiring
of customers at broader and wider level. In context to Crown Plaza, prices of rooms
in four star or say three star is lower as compared to The Ritz London in which cost
of room are expensive and not affordable by everyone. This strategy is used by
Crown Plaza so that lower, middle, and upper level of customers are attracted towards
the business and their services are deliver to every prospect.

壱Cost Focus- Further comes the cost focus strategy in which products are services
are distributed at lower cost but within a small or particular segment so that sales

revenue does not get affected. In relation with Crown Plaza, luggage services are free
and in some areas they charge some fees but with low cost. This strategy affects the
goodwill of firm at wider level.

壱Differentiation Focus- In this, firm try to differentiate itself from competitors and
rivals. Every business should have USP, so that goals and objectives are achieved in
proper manner. Crown Plaza Hotel, ha also has proven themselves different from
other competitors by making customers their first priority and giving them
personalized service from check in to check out process. This increases goodwill of
firm and also leads to positive word of mouth.
Differentiation Leadership- In this, large market is targeted by entity with motive to
achieve competitive advantage by offering product with premium prices. This strategy is
riskier if not done in proper manner. In context to Crown Plaza, they adopt this
differentiation leadership strategy by conducting appropriate market research and advertising
as well as promotional tools. This is because when selling high cost of products, customers
only focus on quality of service on that product and are ready to pay the price. So, hotel
deliver quality of goods and services and which help them in generating profit through
premium prices (Chan and Hsu, 2016).
After brief analysis of above model, it is stated that using Porter Generic Strategy tool
help business in expanding their both functional as well as operational activities at national
and international level. In future scenario say about after five to ten years this strategy will
assists hotel to become the premium and luxurious hospitality industry.
l壱Nykiel’s 14 growth strategies
The crown Plaza hotel adopts Nykiel’s 14 growth strategies which is going to be
mentioned below:
Strategy one: Horizontal expansion: The manager of crown plaza hotel focuses on
expanding their products as well as services to other line of hospitality such as changes from
hotel to restaurants.
Strategy two: Geographic expansion: Herein, the main purpose of organisation is to
expand their business to a bigger geographical areas which will helpful in boosting their
business at wider level.
Strategy three: Product Hybridization: It helps in boosting range of products
around a wider range of goods and services which helps company in performing different

activities and functions in an appropriate manner. It also helps in increasing brand image and
reputation of Crown Plaza hotel in front of customer at marketplace.
Strategy four: Specialization: It is linked with upscale improvement in both pricing
as well as services provided and also in low budget that attract ample of customer towards
products and services provided by company.
Strategy five: Product Tiering: It helps the organisation in appropriately deal with
various economic and demographic changes that helps in improving complementary goods
with differ brand name in an appropriate way.
Strategy Six: Product Re: Branding: Sometime, it is neccessary for organisation to
re-brading its products in respect of qulaity, services as well as price that helps company in
bring inovation which will be neccessary for success of company.
Strategy 7: Non-franchising: Herein, the organisation put their own control over
goods, services, brand and also administration of its products in an appropriate manner. It
assists Crown Plaza to take decision which will be beneficial for them in future period of
time.
Strategy 8: Franchising: It is considered as a highly recognized growth strategy
which must be followed in hospitality sector. In reference of Crown Plaza hotel, the manager
of company use this strategy for brand as well as operations know-how is leased out to
specifically owner-operators.
Strategy 9 : Brand collection: Herein, the organisation focuses on taking advantage
or benefit of low stock or purchasing cost to buy branded chains that is considered as a
beneficial for Crown Plaza hotel.
Strategy: 10 Management Contracts: The organisation which specialize in
handling hotels for owners as well as for differnet institution like bank, pension funds as well
as many more that helps in managing various work of hotels in better way.
Strategy: 11: Vertical and Horizontal integration: The Crow plaza hotel operate
their business in different hospitality sector that helps in achieving competititive edge over
rivalries at marketplace. It helps organisation in perofrming their function and operations in
better way.
Strategy: 12: Singleness: There are various kinds of strategies adopted by
organisation in order to boost their business at international level. It helps in increasing brand
image and reputation of company in front of user at marketplace.

Strategy: 13: Value related products and services: In order to introduce innovative
products and services , it is neccessary for company to assess the need of customer and also
analyse which product is valuable for its user that helps ibn providing better services to its
user at marketplace.
Strategy: 14: Global positioning: It is neccessary to positioning products and
services in front of customer at global level that helps in performnig different functions in an
appropriate way.
There are various strategies adopted by Crown Plaza hotel which will be beneficial
for organisation.
·Justification
After a brief analysis of above strategy models it is stated that to survive in market it
is essential to make effective decision making while adopting strategies in business. Ansoff
and Nykiel’s 14 growth strategies has been used because they provide knowledge about
entities situation and assist them in to deal with competitors in proper manner. Further, Porter
Generic strategy tool has been adopted by Crown Plaza so that after five to ten years,
business remains stable for longer period of time and relationship between enterprise as well
as customers become strong and trustable. Thus, using these models will lead to survival of
business sin market and acquisition of customers.
·CONCLUSION
From above observation it can be concluded that swot analysis can help hotel in
getting favourable to its strength and weakness which can be used to form effective strategy
and management, this will also help firm in knowing opportunities and overcoming its
threats with help for strengths. Pestle will help firm in identifying external factors which can
impact on its productivity, profitability and long existence. Hotel can use porter generic
strategy for making good business strategy for doing business and et competitive advantage.
This all will help firm in effective management in firm and will increase the chances of better
performance of firms function.

·REFERENCES
·Books and journals
Baker, M.A. and Magnini, V.P., 2016. The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality
marketing. International Journal of Contemporary Hospitality Management.
Buhalis, D. and Leung, R., 2018. Smart hospitality—Interconnectivity and interoperability
towards an ecosystem. International Journal of Hospitality Management, 71, pp.41-
50.
Chan, E.S. and Hsu, C.H., 2016. Environmental management research in
hospitality. International Journal of Contemporary Hospitality Management.
Chang, W. and Busser, J.A., 2017. Hospitality employees promotional attitude: Findings
from graduates of a twelve-month management training program. International
Journal of Hospitality Management, 60, pp.48-57.
García-Lillo, F., Úbeda-García, M. and Marco-Lajara, B., 2016. The intellectual structure of
research in hospitality management: A literature review using bibliometric methods
of the journal International Journal of Hospitality Management. International
Journal of Hospitality Management, 52, pp.121-130.
Grobelna, A. and Marciszewska, B., 2016, April. Work motivation of tourism and hospitality
students: implications for human resource management. In Proceedings of the 8th
European conference on intellectual capital (pp. 95-103).
Gursoy, D., 2019. A critical review of determinants of information search behavior and
utilization of online reviews in decision making process (invited paper for
‘luminaries’ special issue of International Journal of Hospitality
Management). International Journal of Hospitality Management, 76, pp.53-60.
Kozak, M. and Kozak, N. eds., 2016. Tourist behaviour: an international perspective. CABI.
Min, H., Park, J. and Kim, H.J., 2016. Common method bias in hospitality research: A
critical review of literature and an empirical study. International Journal of
Hospitality Management, 56, pp.126-135.
Park, S.B. and Park, K., 2017. Thematic trends in event management research. International
Journal of Contemporary Hospitality Management.
Yoon, D., Jang, J. and Lee, J.J., 2016. Environmental management strategy and
organizational citizenship behaviors in the hotel industry. International Journal of
Contemporary Hospitality Management.