Hospitality Business Strategy

Hospitality Business Strategy
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Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
P1 Analysis of the influence and impact of macro business environment on a hospitality
organisation and its decision-making with the help of application of appropriate frameworks..3
P2 Using frameworks to analyse the internal environment and capability of a hospitality
business organisation...................................................................................................................5
P3 Evaluation of the competitive forces of market for the hospitality organisation with the
application of Porter’s Five Forces Model..................................................................................7
PART B...........................................................................................................................................9
P4 Application of a range of theory, concept and models to interpret and devise strategic
management planning for a hospitality business organisation....................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Business strategy can be defined as the concept which involves the blend of various
practices and approaches utilized by the management of an organisation to achieve the
organisational objectives and vision of the company (Teece, 2010). Melia Hotels International,
S.A. is one of the leading chain of premium and luxury hotel rooms in Spain which was
established in the year 1956. It is also the 17th largest company in the hotel industry all over the
globe. Melia Hotels International have more than 370 hotels in 40 different countries
(Branquinho, 2018). The report deals with analysing the influence of external environment of an
organisation on the decision-making process and also aims to evaluate the internal strength and
capability using various models and frameworks. At last, the report aims to prepare a strategic
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management plan for future growth after determining the competitive position of the
organisation in the industry.
PART A
P1 Analysis of the influence and impact of macro business environment on a hospitality
organisation and its decision-making with the help of application of appropriate
frameworks.
PESTLE Analysis of Melia Hotels International:
PESTLE Analysis is one of the most vital tools of strategic change management which is
being used by the managers of business organisation to identify any early threat or opportunity as
a result of changes in factors of macro environment of a business organisation which are not
within the control of management but have a significant influence on their decision-making
(Policy, 2016). Factors such as political stability or instability and trends of consumption
influence the functioning of an organisation. The management of Melia Hotels International
undertakes market analysis to improve the effectiveness of the decision-making process. Here is
an analysis of the key macro environment factors which influence the decisions of business
managers of Melia Hotels International:
Political Factors: Political factors refers to extent of stability in a country with respect to
policies made by government and external regulation. All such factors have a major influence on
the functioning of any organisation and affects the decision-making process of the business
managers. In the context of Melia Hotels International, management of the company have
strategically formulated policy in accordance with the political influence of Spain’s government
and their policies promoting economical and social development of the country. It has been an
opportunity for the company to expand their operations in the country and promote tourism
industry (Resende, 2017). Liberalisation policies being adopted worldwide has also influenced
the strategic decision of the business managers of the company to expand over 40 countries in
the past many years.
Economic Factors: Global rise in the production and economic activities have influenced
the various elements of economic factors affecting decision-making such as disposable income
of people, taxes, import-export duties etcetera. Over 10% of the GDP of Spain is attributable to
the tourism industry in the country which also accounts for more than 11% of the country’s
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