Unit 41 - Hospitality Business Strategy

Unit 41 - Hospitality
Business Strategy
Table of Contents
INTRODUCTION.................................................................................................................................3

TASK 1.................................................................................................................................................3
P1 Impact of micro environment and its strategies on organization.................................................3
TASK 2.................................................................................................................................................4
P2 Evaluation of internal environment of given organisation............................................................4
TASK 3.................................................................................................................................................6
P3 Use Porter Five force model in relevance with given organisation...............................................6
TASK 4.................................................................................................................................................7
P4 Use frameworks for strategic planning with enterprise...............................................................7
CONCLUSION.....................................................................................................................................9
REFERENCES....................................................................................................................................10
Books & Journal:..............................................................................................................................10

INTRODUCTION
Business strategy is crucial for organisation as it helps them to achieve goals and
objectives in proper manner. It is wider and broader concept which is used by firms in most
suitable manner. Fairmont Hotel and Resorts which is luxurious 5 star hotel which is
headquartered in Canada. They provide quality of services and hospitality to their guest and
consumers. This report includes SWOT and PESTEL Analysis, Porter Five Force Model,
concepts and theories. To survive in market, they use the business strategy in most effective
manner so that everything is done in proper way.
TASK 1
P1 Impact of micro environment and its strategies on organization
Business organizations are run within the environment they are directly affected with environment as
they are building up of environment factors. Business environment can be defined as the combination
and agreement of all the events, conditions and influences which surround and directly affect business
organization. Blake’s is one of the most popular 5 Star hotel of London and it is famous for its interior
design luxury services and providing royal series to their customers. This organization is also directly
affect by its micro environment effects of micro environment can be explain by using PESTLE
strategy.
PESTLE analysis
It is a tool of strategic management policies which is used by manages for their environment
scanning procedure. Management department of Blake’s hotel use this technique for identify the
impact of their micron environment factors.
Political factors: it includes those factors which are related and affect by the political
policies, environment law, and labour law rules and regulation made for foreign trade. It
consists of those elements which related with the management of public affairs. Fairmont
hotel and resorts is situated within the London, organization directly affect with BREXIT
agreement as their most of labours belong from European Union countries thus their business
activity affect from this agreement. (Wulandari, 2019).
Economic factors: These factors include those elements which are directly related
with the means of production and distribution of wealth they are directly influence on
demand and supply of firm. Due to the BREXIT agreement the interest rate get higher and
their profitably rate goes down because before the agreement tourist can easily came in
London but now due to heavy tax duties the customers rate decrease. But government of
England provides loan at lower return. (Johnson, 2016).

Social factors: These factors consists those elements relationship of human beings culture of
organization, age, demographic factors. They directly influence the hospitably industries as many
tourist came room different regions to stay in hols they get satisfies when department of hotel and
their employees provide them full facilities and behave in earlier manner. It is important to focus on
social factors so that all decision making and correct measures are taken in the process.
Technological- These environment include elements of software as well as hardware. They
are used by hospitably sector organization to solve their problems and for securities and also for
promotion of their organization. Fairmont hotel and resorts use social media advanced software for
promotion of their hotel facilities to attract customers. But advance technology device is also the
cause of increase of cyber-crime in the hospitality industry.
Environmental: These includes elements which is related with the nature, geographical,
ecological factors, whether, climate conditions port faculties, air, water pollutions problems. Different
environment conditional need to change the marketing strategies thus it is environment factors affect
the business organization. It is essential for Fairmont Hotel and Resorts that they made policies which
is in favour of environment and do not use any irrelative chemise or material which dangers for
natural environment.
Legal- Every country follow their own constitutional law. Thus, ever organization needs to
follow rules and regulation foliage environment. It includes laws regarding wages, health and stay
measure prices and opportunities. In hospitably sector they have direct impact on the
productivity .Regarding with the Fairmont hotels, their manger department makes strategies within
which they follow all the rules and lag regulation. They also contract with their workforce in large
manner.
After a brief analysis of above matter, it is seen, that PESTEL Analysis is essential for
business so that all factors which have impact on firm progress and performance are
examined properly. Moreover, this also assists identifying the other problems related to
business (Holmes, 2018).
TASK 2
P2 Evaluation of internal environment of given organisation
Internal environment can be defined as the part of business environment which is
related with the elements exists within the business firm. They are controllable factors.
Internal environment also defines as micro environment. To evaluate the impact of internal
environment business organizations use SWOT analysis technique. SWOT is a part of
environment scanning technique through which business manager easily recognises their
strength, weakness of business organization. Following are the SWOT analysis of chosen
hotel (Ardley, 2019).