Hospitality Business Strategy

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

TASK 1.................................................................................................................................................3
P1 Use appropriate frameworks and examine the impact of macro environment..............................3
TASK 2.................................................................................................................................................5
P2 Analyse the internal environment of organisation........................................................................5
TASK 3.................................................................................................................................................6
P3By applying Porter Five Forces Model, examine the various forces in relevance with chosen
enterprise...........................................................................................................................................6
TASK 4.................................................................................................................................................8
P4 Apply range of theories, concepts and models and prepare strategic planning.............................8
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11
Books & Journal:.............................................................................................................................11

INTRODUCTION
Business is a wider and broader concept in which where is the office of functions
operations and activities are involved. Competition is rising at rapid level and it is necessary
to deal with the rivals and competitors in proper manner. Business strategy is defined as set
of tactics or planning how the resources and other things can be used in the business. Thus,
today competitive advantages organisation uses the business strategy. Shangri-La hotels and
resorts which is a multinational chain of hotels headquartered in Hong Kong. The hotel is
located worldwide provide ample number of facilities as well as services to the customers.
This report includes PESTEL Analysis, Porter 5 forces models, SWOT analysis and various
theories and concepts. It is not possible for any business to survive in the market without the
use of business strategy has it helps them to forecast and determine the enterprise position as
well as performance analysis.
TASK 1
P1 Use appropriate frameworks and examine the impact of macro environment
In business environment plays vital role and have a different background for
productivity as well as performance of company. There are very sectors environment which
affect the business and slow down the growth and overall development of business. In
relation with Shangri-La hotels to determine the environmental factors which are also known
as macro environment the organisation uses the PESTEL analysis. Manager of the hotel at
assures that appropriate tools are used in the management through which strategies and
tactics are implemented properly and accordingly (Strategy, 2019
PESTEL Analysis
It is a tool which is used by many organisations to determine the impact of external or
macro environment on this business. In relevance with Shangri-La hotels it is important to
examine such factors because this will help enterprise to take decision effectively. To
implement this tool proper market research is required which is a time consuming process but
assists taking competitive advantage within the business sector. Also reliable information is
required so that positive result is achieved when going with this framework. So various types
of factors involved in this tool are being discussed below-
Political factors- In this factor, it includes Labour law, government law and many
more. In relation with Shangri-La hotels, they have been also affected by this effective as
Hindi HK labour tax r higher and which increases the cost of production at higher level.
Also, political stability in Hong Kong is dynamic which makes it difficult for business sector
to run their activities in proper manner (Ardley, 2019).

Economic factors- This includes inflation and deflation rate, wages rate tariff and
non-tariff rates etc. With the differences between 2 major countries and their economics
which is U.S as well as Britain have affected the global interest rates various industrial
sector. In context to chosen hotel they have been also affected by this as because the global
rates are becoming unfavourable and expenditure as well as other costs is increasing at larger
scale. Economic factors slow down the growth of business as because involvement of
government is more in this element. With focusing on this factor they are able to maintain a
positive relationship with government and national authorities which is beneficial for their
firm (Lanzolla, 2020).
Social- Social factors also play important role in the business environment as because
they include religion, culture, income etc. In relation with Shangri-La hotels, they focus on
social factors in proper way such as they provide customers a world class service and
environment like their home so that customer feels good and they feel like they are in their
own house. Through this total satisfaction is achieved by the customer and also which
increases the goodwill of the enterprise (Cao, 2019).
Technological- In this, it includes using of advanced technology artificial intelligence
hardware and software and many more. Technology has become necessity for enterprises
because it simplifies the human work and help in achieving the goals as well as objective
within a period of time. In context to Shangri-La hotels they also use technology in an
appropriate manner such as they use social networking platforms and various e-commerce
website for their business and accessing customer at global level. Also they use digital
seconds as well as kiosk.
Environmental- Then, further comes the environmental factor in which it includes
pollution waste management weather and many more. It also business activities as they are
related with society and citizen. In context to chosen entity, they also focus on these factors
as bye developing and implementing more sustainable development programs and
establishing campaigns. Many enterprises keep this factor at priority level because it have a
positive impact on their brand and product goodwill.
Legal- It includes rules and regulations, laws and many more. Legal factors are
essential for the business because activities and functions are being carried out under the
consideration of government legislation. In relevance with Shangri-La hotels legal team of
their department make ensure that all the activities as well as operations are being carried out
in appropriate manner. Legal team of selected entity is well aware about government rules
and regulation as well as policies and accordingly they make their decisions in the market and
management. This helps them to eliminate the risk ok and other problems.