Hospitality Business Strategy

This document discusses the implementation of appropriate frameworks to analyze the impact of macro environment, evaluate organizational capabilities, and understand competitive forces in the hospitality industry. It covers topics such as stakeholder analysis, PESTLE analysis, Ansoff's growth matrix, SWOT framework, and Porter's five force model.

Hospitality Business Strategy

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Implement of appropriate frameworks to analyse the impact and influence of macro
environment............................................................................................................................3
TASK 2............................................................................................................................................8
P2 Evaluation of organisational capabilities by implementing appropriate framework........8
TASK 3............................................................................................................................................9
P3 Understand of Porter five force model and its implementation for evaluating competitive
force in the market sector of organisation..............................................................................9
TASK 4..........................................................................................................................................10
P4 Implement of different range of theories, model and concept that devise strategic planning
for organisation.....................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy explains as a management of an organisation that leads engaged
workforce to accomplish organisational goals and objectives. The main motive of business
strategy is to set business objectives, understand and acknowledge environment etc. to ensure
that management is able implement organisational strategy among all departments. Strategic
management also enforce and motivate a business administration to formulate an effective
strategy by undertaking opportunities and threats aspects that are present in business
environment (Wijesinghe, 2014). This report is composed from point view NH hotel group
which is a multi-national hotel organisation managing work and operations at global level. NH
hotel management start its business in the year 1978 and currently offer its luxury services
among different countries. Moreover, the report highlights on different frameworks to
understand the influence and impact of micro environment on organisation and its strategy.
Internal environment of organisation will also be acknowledged in this report. In the last,
Porter’s five force is focused to understand competitive force in hospitality industry.
TASK 1
P1 Implement of appropriate frameworks to analyse the impact and influence of macro
environment
Vision- The vision of NH group hotel is to enhance their market among all over the world
to increase customer base.
Mission- Mission of NH group is to offer better and effective service that satisfies need
and wants of visitor and tourist in an appropriate manner.
Strategy is defined as an effective tool which leads an organisation to formulate a effective set of
action that satisfies needs and wants of customers in an appropriate manner through completing
organisational work in an organised manner. In context of NH group hotel hospitality strategy
leads management to manage employees work towards organisational goals and objectives
(Phillips and Moutinho, 2014). In the present scenario, there are various operations such as
accommodation of visitor, restaurant management and maintenance of hotel etc. are performed
by NH group hotel. So to manage them all in an organised manner management development
effective strategy for completing all work at a similar time period.

Framework to understand macro environment
Stakeholder analysis
The term stakeholder analysis refers to an effective procedure which is used for
identifying those individuals that can impact on action and activities of NH group hotel. It also
provides benefits to organisation to understand interest level of stakeholders in organisation with
help of three steps that are mention as below:
 Step 1- To determine the number of stakeholders by collecting all information at a same
place for understanding impact of sales department, employees, resource supplier etc. on
organisation and its strategy.
 Step 2- By acknowledging the list of stakeholders management prioritize needs
according to the category of stakeholders which is based on two factors (Partington,
2016). First is interest level of participation and second is power hold by stakeholder.
Moreover, it is divided into various parts that are explained as below:
 High interest and power- In NH hotel group employees and customers are more
interested in organisational operations and functions. Moreover, they also hold the
power to take decisions of business.
 High power and low interest- Stakeholders of this category perform organisational
work and task in a right manner as they have high authority but less interest in
company projects. Example- suppliers are example of this category of stakeholder.
 Low power, high interest- According to this category stakeholders are low in power
but take more interest in organisational operations. The example of this stakeholder
are customers and sometimes it also generate challenge for organisation for
completion of work in effective manner.
 Low power and low interest- With aspect of this stakeholders management face not
any challenge to manage organisational work which leads to complete work as per
decided strategy.
 Step 3- With the analysis of this all stakeholders, now the authorities of NH Group hotel
transfer all essential information to stakeholders for completion of task with implement of
right strategy (O'Mahoney and Wood, 2015).
PESTLE Analysis

The term PESTLE analysis work as a strategic tool and this is used by management for
analyse and understand those aspects which are beyond the control of organisation. Along with
this NH group also implement pestle to formulate right strategy that helps to understand
influence and impact of macro environment on organisation.
 Political factor- This is important for an organisation to follow all rules and regulations
that are developed by ruling government of a country. It results this is easy for
management to perform all task and operations in an appropriate manner because UK
government is open for tourist and visitor and implement flexible policy (Manning,
2018). So it influences the business of NH group hotel in a positive manner.
 Economical factor- The GDP and income level of UK based individuals is high but to
Brexit there are numerous changes implemented in country policy. This all impacts on
organisation and individuals work methods due to which the business of NH Hotel Group
is also impacted which creates challenges for individuals to perform work in an effective
manner.
 Social factor- UK is a well-developed country and large number of individuals visit its
different countries for different purpose such as business meetings, entertainment purpose
and many more. Along with this UK is a country which is open to invite various
individuals culture that make country premises more social. It works as a positive aspect
for NH Hotel group which is increasing demand of visitor bookings.
 Technological factor- UK is a developed country and many years ago hospitality
organisation are performing their work according to traditional media. But in the present
scenario, it is important for management of NH hotel group to adopt new techniques for
completion of their work in an effective manner (Jones, Hillier and Comfort, 2016).
Moreover, technology aspect impacts on operations of NH hotel group through
completing all work in minimum time period. With technology work also influence work
in positive manner through generating positive review on social site about organisational
work and operations.
 Environmental factor- Hotel guest or visitor stay and buy accommodation and other
services at different time periods and seasons. So the environment aspect also impact on
the organisation such as at time of vacation individual visit some warm and relax place.

The weather of UK is favourable towards hospitality industry and its impact on
organisational work such as in peak season price of hotel rooms is high.
 Legal factor- This is most important for organisation to complete work according to legal
laws and legislations. Overall hospitality industry is depend on services so menu law is
an important factor for organisation that leads to complete all work in an appropriate
manner. With this aspect management is also able for enhance results according to truth-
in-laws that boost to work as per nutritional ingredients to implement in hospitality
industry.
Ansoff’s growth matrix
By adopting and implementing Ansoff’s growth matrix in a business it is easy for
organisation to gain better results and utilisation of resources (Hubbard and Wilkinson, 2015).
This result it is for management to make potential strategy. From perspective of NH hotel group
growth matrix is mention as below:
 Market penetration- According to market penetration strategy organisation sale existing
products into existing market. It is a simple and effective way for hospitality industry to
earn. NH Hotel group implement discount and additional offerings to complete all work
according to decided strategy. Moreover, there is intense competition among hospitality
industry so market penetration strategy helps to hold local market area which also
maintains goodwill for organisation by generating local customer base.
 Market development- The term market development strategy leads to promote existing
products into new rural or urban market. One of the primary strategy that is used by
hospitality organisation such as NH hotel group implement market development strategy.
In the context of NH Hotel group geographical expansion is implemented by
management through help of market development strategy that helps to perform
operation into new area.
 Product development- This is important for organisation to launch new services or
products in the existing market to complete all task as per product development (Healey,
2014). In context of hospitality organisation such as NH Hotel Group offer room with
various facilities such as unique meals, air condition facilities and affordable package to
tourist for ensuing better position in market.

 Diversification- Diversification strategy for promoting of organisational services into
new market. This is also used by organisation to generate better integration through
planting or formulating new strategy for complete of project into new areas with creative
and innovating services.
With the analysis of Ansoff’s matrix for organisation it is identified by management of NH Hotel
group to implement market development strategy (Harrington and et. al., 2014). This strategy
states that all task performed by management must build a strong base of customers in order to
gain top position in market. Moreover, with strong base of visitors it is also easy for management
to earn better revenues that satisfies needs and wants in an appropriate manner to earn more
profits.
SWOT Framework
The term SWOT works as an effective tool that assist management to complete all work and
operations by analysing their strength and weakness in an organised manner. SWOT analysis in
context of NH Hotel Group is mention as below:
Strength
 NH Hotel provides accommodation
services that offer safe and home like
environment. So it works as a major
strength for organisation.
 NH hotel provide support to economy
of country in which management
operate business. So it also work as a
major strength for organisation.
Weakness
 The operating cost or rates of hotel
industry are high which create
challenge for organisation and work as
a weak point in context of NH hotel.
 There are various chain managed by
business at international level and some
of them charge high tax rate. So it work
as a weak point for organisation.
Opportunities
 Developing country is also offering
high market area so the market of NH
hotel group determines better
opportunity to increase customer base.
 In the present scenario, international
number of tourist and visitor is also
increasing which offer new opportunity
Threats
 Due to change in the rules of foreign
countries it is also complex to work
with international rules.
 Interest rate, Brexit decisions and
recession period impacts on economy
of country which create challenge for
organisation to work properly.

to work into new areas.
TASK 2
P2 Evaluation of organisational capabilities by implementing appropriate framework
Internal environment work as an important aspect that lead management for completion of
work by developing new strategy. Moreover, it is also essential to understand internal
environment for formulation right and appropriate strategy. It leads NH Hotel group to work in
an effective manner (Du Plessis, Douangphichit and Dodd, 2015). Further, some framework that
is used to acknowledge internal environment are mention as follow:
Resource based view strategy- According to the analysis of NHS resource based
organisational strategy or framework is used by organisation for making better strategic
decisions. It is also used by management of NH hotel group to gain sustainability in market.
Hospitality industry consists of services so respective organisation focus that all of its amenities
satisfies needs and wants of customers properly. Further, services are intangible in nature so
resource based strategy support to deliver better and effective services.
VRIO Framework
VRIO is an abbreviation that stands for Valuable, rare, Inimitable and organised and it
recognise as a strategic tool. NH Hotel group utilise VRIO model to understand internal
resources and it is mention as follow:
 Valuable resource- This aspect undertakes those resources which create sustainable
advantage by offering high value among organisation services. Employees and research
department are the valuable resources for NH Hotel group that satisfied needs of
customers properly.
 Rare resources- From perspective of rare resources it is used by management to use them
as an asset in organisation. Research development team work as a rare aspect for NH
Hotel group that is leading management to complete all work and operations with
creative and innovation techniques (Buhalis and Sinarta, 2019).
 Imitate resources- Almost all organisations in the hospitality industry provide similar
type of services so it is mandatory to offer same services in a creative manner. In context
of NH hotel group management consider that its services are provided with fast and high

quality manner. So high cost is required by competitive for imitate services of NH hotel
group.
 Organised- All intangible as well as tangible products and services which are offered by
NH Hotel group must be managed in an organised and systematic manner. This satisfies
needs and wants of customers properly and leads management to use full potential of
available resources.
With the analysis of all above internal aspects for an organisation, VRIO model helps
organisation to gain better results by formulating right and effective strategy for organisation
(Buhalis and Leung, 2018). It is also analyse by management that brand value of NH Hotel
Group work as an important aspect that satisfies needs and wants of customers in proper manner.
SWOT and VRIO framework is used by management to complete all tasks that also undertake
brand value for organisation in making right and effective decisions.
TASK 3
P3 Understand of Porter five force model and its implementation for evaluating competitive
force in the market sector of organisation
According to the Porter’s five force model an organisation understand and monitor those
forces that exist in market for complete of work and impacts on organisational operations. NH
Hotel Group utilise Porter five force model to understand competitive force which is mention as
below:
 Competition in the hospitality industry- The power of competitive force in hospitality
industry is too high so it is a complex point for NH Hotel Group (Bharwani and
Mathews, 2016). So the switching cost is low for customers therefore, it creates
challenges for management to perform work in organised manner.
 Potential of new entrants- Hotel or organisation that are performing business in
hospitality industry face intense competition because the cost of product must be make
difference in organisation as compare to other rival business. Therefore, the force of new
entrants is also high. NH Hotel group overcome from this by reducing operational cost
 Power of supplier- From the perspective of supplier power it is relatively low for
organisation. Most of the hotels are not subjected towards supplier because major

operations relates with power of labour and personnel. So it work as a positive point that
leads management to fulfil customer demand in positive manner.
 Power of buyers- Buyers or customers are the most important asset for organisation.
Moreover, the main aim of hospitality business is to satisfy needs and wants of customers
in proper manner. In context of buyer bargaining power it is high because international as
well as local organisations both are competing with each other. So to deal with buyer
power NH Hotel focused to develop their brand in unique way.
 Threat of substitute products- The threat of substitute products in low in the hotel
industry but in the case of recession individual are focused towards cheap
accommodation and demand for cheap space is fulfilled by hostels, relatives or motels
(Brotherton, 2015). Further, NH Hotel Group deals with recession period by focusing on
clients that are present in form of large groups.
TASK 4
P4 Implement of different range of theories, model and concept that devise strategic planning for
organisation
Porter generic strategy
With the implement of Porter generic strategy an organisation is able to obtain various
benefits that assist management to gain competitive edge in market. Some strategy in context of
NH Group hotel is mention as below: Cost leadership- The cost leadership strategy is used by NH Hotel group for completion
of organisational work at low operational cost. So it helps management to gain
competitive edge in market through providing various benefits such as to attract price
conscious customers. Differentiation- According to differentiation strategy management makes difference in
products or service to stand their organisation unique as compare to compete firms. In
context of NH Hotel management make its services fast that add more value in
organisational services. Focus strategy- According to focus strategy an organisation focus on a specific and
narrow segment that helps management to gain competitive advantage. In context of
focus strategy NH Hotel group target middle level segment for generating better review

about organisational services in the market (Bergene, Boluk and Buckley, 2015).
Moreover, focus strategy is more beneficial because it help management to add more
value in overall services of NH Hotel group.
Strategic management plan
Vision- Vision of organisation is to obtain top position in the market of developing
countries to increase customer base and revenue for organisation.
Mission- To provide high quality services and add more value in organisational services
is the mission of NH Hotel group.
Tactics- Direct interaction with customers and stakeholders of organisation are the
efforts that are made by management in the form of tactics. Moreover, NH Hotel group also
develop marketing mix process for completion of organisational work in proper manner.
Product The organisation provides better services that lead management for
obtaining better opportunities that exists in market of developing
countries and it leads to gain market development.
Price NH Hotel group provides more value through developing organisation
as a brand. This also helps management to implement premium price
policy in organisation.
Place The main emphasis to establish hotel is in central market so it is easy
to visit various destination places. Moreover, it is also beneficial for
visitor as transport services are easily available in market.
Promotion Social and digital media strategy is used by organisation for promoting
all products and services in an appropriate manner and it also aids NH
Hotel group to promote services at large level at low cost.
Financial budget
Particular Amount
Start-up capital 10,000
Investment 5,000
Marketing 3,000
Human resources 4,000
Total 22,000

Implementation- Financial aspects play a vital role in organisation for completion of
organisational work with using all potential resources. Along with this finance budget is also
leading management to complete organisational price with an estimated price. KPI and Balance
scorecard are two techniques which is adopted by NH Hotel group for controlling organisational
work and to complete project according to decided strategy.
CONCLUSION
In the last, by understand of all above information and report it is concluded that strategy
plays an important role in organisation for achieving desired goals and objectives. The main role
of business strategy is to gain organisational goals and objectives by utilising full potential of
resources. It also helps management to achieve objectives in minimum time period. Porter five
forces, VRIO, SWOT and PESTLE are different models that help to understand internal and
external environment. In the last, specific and desired results are gained by management through
implement of an effective business strategy by acknowledging micro and macro environment.

REFERENCES
Books and Journal
Bergene, A.C., Boluk, K. and Buckley, E., 2015. Examining the opportunities and challenges of
union organisation within the hospitality industry. In A Hospitable World? Organising
Work and Workers in Hotels and Tourist Resorts (pp. 195-212). Routledge London,
England.
Bharwani, S. and Mathews, D., 2016. Customer service innovations in the Indian hospitality
industry. Worldwide Hospitality and Tourism Themes.
Brotherton, B., 2015. Researching hospitality and tourism. Sage.
Buhalis, D. and Leung, R., 2018. Smart hospitality—Interconnectivity and interoperability
towards an ecosystem. International Journal of Hospitality Management, 71, pp.41-50.
Buhalis, D. and Sinarta, Y., 2019. Real-time co-creation and nowness service: lessons from
tourism and hospitality. Journal of Travel & Tourism Marketing, 36(5), pp.563-582.
Du Plessis, A., Douangphichit, N. and Dodd, P., 2015. HRM in relation to employee motivation
and job performance in the hospitality industry. International Business Conference
(IBC).
Harrington, R.J and et. al., 2014. Strategic management research in hospitality and tourism: past,
present and future. International Journal of Contemporary Hospitality Management.
Healey, R.L., 2014. Gratitude and hospitality: Tamil refugee employment in London and the
conditional nature of integration. Environment and Planning A, 46(3), pp.614-628.
Hubbard, P. and Wilkinson, E., 2015. Welcoming the world? Hospitality, homonationalism, and
the London 2012 Olympics. Antipode, 47(3), pp.598-615.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality
industry. International Journal of Contemporary Hospitality Management, 28(1), pp.36-
67.
Manning, L., 2018. The value of food safety culture to the hospitality industry. Worldwide
Hospitality and Tourism Themes.
O'Mahoney, B. and Wood, R., 2015. ‘Folk’understandings of quality in UK higher hospitality
education. Quality Assurance in Education.
Partington, S.N., 2016. Hospitality employment. The routledge handbook of hospitality studies,
p.207.
Phillips, P. and Moutinho, L., 2014. Critical review of strategic planning research in hospitality
and tourism. Annals of Tourism Research, 48, pp.96-120.
Wijesinghe, G., 2014. Reimagining the application of sustainability to the hospitality industry
through a virtue ethics framework. Journal of Sustainable Tourism, 22(1), pp.31-49.