Impact of Macro Environment on Hospitality Organization and Strategies

Hospitality Business
Strategy

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY ............................................................................................................................3
Part A..........................................................................................................................................3
Applying appropriate frameworks, analyse the impact and influence of the macro
environment on a given hospitality organisation and its strategies........................................3
Identification of internal environment and capacities of organisation by the use of SWOT
and VRIO analysis..................................................................................................................5
Application of porter's five forces model to identify the competitive advantage within
market ....................................................................................................................................8
Part B..........................................................................................................................................9
Using ANSOFF matrix for proper strategic planning within hospitality industry.................9
CONCLUSION .......................................................................................................................11
REFERENCES ........................................................................................................................12
Books and journals ..............................................................................................................12

INTRODUCTION
Tourism Industry is developing continuously that become an important part of
hospitality organisations and industry. Because it provides different opportunities to
hospitality industry where they can use these customers for increasing their revenues as well
as operate at global level. Hospitality firm can be defined as that place where an individual
can stay by paying a rental amount for some period of time when he visits a place different
from its origin (Lipitakis and Phillips, 2016). In this report, The Chosen organisation will be
Meliá Hotel International. It is a Spanish Hotel chain which was founded by Gabriel Escarrer
Juliá in 1956. Hotel is operating with current account of 374 hotels in 40 countries and on
four continents. In the beginning of this report there will be description about the Macro
environment of the organisation by the use of pestle analysis and formation of a proper
strategy. There will also discussion about the internal environment by using the spot
framework and VRIO framework. In the middle of the report there is discussion about the
porters five Force model and the competitive forces which can be used by the organisation.
The end of the report is consisting of using a proper theory for strategic formation where
organisation can get maximum competitive advantage (Hua, 2016)
MAIN BODY
Part A
Applying appropriate frameworks, analyse the impact and influence of the macro
environment on a given hospitality organisation and its strategies
MELIÁ HOTEL INTERNATIONA is a huge Hotel chain within Global world which
makes it a different and important factor within the hospitality industry. There are various
kinds of external factors which have their great impact on hospitality. This hotel is also
trading within this industry it is important for the hotel to analyse its external environment
and reduce their negative impact on the performance of different business activities (eritelli
and Schegg, 2016). In context of MELIÁ HOTEL INTERNATIONA, it can use pestle
analysis which will help in identification of political social economical technical
environmental and legal factors which have direct impact on business activities for and
hospitality industry.
Pestle analysis of MELIÁ HOTEL INTERNATIONA

This analysis is that Framework which is used by this organisation to clearly identify
its external environment and make decisions related to that environment for getting maximum
advantage within competitive market.
Political: political factors are those which are related to rules and regulation formed
by the government of the nation where the organisation is currently working and performing
its different activities. In context of MELIÁ HOTEL INTERNATIONAL, it is performing its
operation at a global level. Current time terrorism is a major political issue within whole
globe where it has negative impacts on the business of Hotel (Bharwani and Mathews, 2016).
Because of terrorism various tourism destinations are getting destroyed as well as tourist have
also fear of unwanted attack by terrorist. This Acting negatively on the hotel as they have to
make more security arrangement which also in cost as well as interest of tourist is also losing
because of fear from terrorist.
Economic factors: economic factors include those factors which are related to
economy where the business is going to start its business are currently operating. this hotel is
operating its business at global level so it has to consider all the factors within the economy
of different nations. it have both positive and negative impact on the business because in
some Areas where there are developing economy the growth rate of these economy is are
higher which help business in growing as well as expanding their market. Impact of this
economic factor on this hotel is that, there is some developed economy like USA, Russia
where the economic growth is very low and it is impossible for business to operate because of
regular loss and decline in revenue (Bowie, Buttle, Brookes and Mariussen, 2016).
Social factor: include those factors directly associated with social thinking mentality
culture behaviour of individuals within the society and area where the organisation is
operating. In Current situation MELIÁ HOTEL INTERNATIONAL, it is operating at global
level and has to deal with all the social factors related to different economy. In the current
business environment there are continuous changes within the tourism and travel industry
where the current trend is focuses on increased tourism and travel activities. This is in favour
of hotel where it can increase its revenue as well as improve its infrastructure to attract large
number of customers and use social factor as a competitive advantage (Chan and Hsu, 2016).
Technological factor: it includes those factors which are related to technological
changes within the area and innovation within the area where the organisation is working
currently. In context of MELIÁ HOTEL INTERNATIONAL, petrol operating in the