Hospitality Business Strategy

Hospitality business
strategy

Table of Contents
Introduction:.....................................................................................................................................1
PART A:..........................................................................................................................................1
Analyse the impact and influence which the macro environment has on a hospitality
organisation and its business strategies..................................................................................1
Assess a hospitality organisation internal environment and capabilities.............................2
Evaluate and apply the outcomes of the analysis using the porter ‘s five forces model........5
PART B:...........................................................................................................................................7
Apply the models, theories and concepts to assist with the understanding and interpretation of
the strategic direction.............................................................................................................7
Conclusion:....................................................................................................................................10
References:.....................................................................................................................................10

Introduction:
The business strategy plan of the organisation refers to the course of action which helps the
company to achieve their goals and objective in the most effective and profitable manners. The
strategy is one of the important essential tools and technique which are used by the organisation
to complete the task in the most efficient manners. In the other words, it can be stated that
hospitality business strategy is a process where organisation make effective strategies plan to
achieve their mission and vision of the organisation in the long run. Under this report, the
Radisson hotel is a international hospitality organisation working across the countries and
offering premium services to the target customer and having headquarter in the UK market
places and offering its services at the global market places. Further the impact of the internal and
external environment on the hospitality organisation will be discussed and examine the porter’s
five forces on the organisation so that they are able to take competitive edge in the hospitality
industry. Apply different models and concepts for making effective strategic management plan
(Arun, and Sudha, 2017)
PART A:
Analyse the impact and influence which the macro environment has on a hospitality
organisation and its business strategies.
In the difficult and competitive scenario, the organisation need to examine the different external
factors which have impact on the productivity of the organisation and also affects the profits
margin in the market places. To examine the external factors, PESTLE analysis is used by the
Radisson organisation before making strategies for the growth plan.
PESTEL analysis: it is framework used by the organisation to making effective marketing
principle and strategies expansion plan for the company. This analysis helps the organisation
to examine the work environment in which it will perform its operational activities.
The purpose of the PESTEL analysis is to examine the various external factors which can
influence the performance of the organisation and make the effective business strategies which
helps them to achieve the profits in market places.
Political factors: under this factor, it includes the political condition , government rules and
regulation and various another foreign trade ant etc . with the references of the Radisson
organisation, this factor have huge impact on the functioning of the business activities. Due the
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Brexit condition in the economy ,it has made large changes in the government polices which
affects the hospitality organisation to large extend.( Song. and Yoo., 2016)
Economic factors: here different types of rates are included such as inflation rate, exchange
rates and currency rate which affects the performances of the organisation . the Brexit affect the
economics of the organisation in negative manners. The increase in the inflation rate will
decrease the purchasing power of customer which affects the profits of the organization.
Social factors: under this factors, the customer taste and preferences, their assumption and
belief system are taken into consideration be for making the sound business strategies. In the
context of the Radisson organisation, they focus on customer demand and offers good quality
of service so that more customer are attract towards the organisation in the long run and increase
the profits margin of the company.
Technology factors: here it involves the advance technology, innovative and artificial
intelligence and research factors . in the context of the Radisson hotel , they are focus on
offering the good services to its target customer so they need to use the advance technology to
improve their activities and servers the large number of customer.
Environment factors: the organisation uses the society resources to make goods and service
from which they make profits . so they are accountable towards the customer for using their raw
material by fulfilling the social responsibility . it also includes various environment laws which
are set of the government and are to be followed by the organisation. The hospitality industry
have to follow these laws to run their business effectively.( Arun,. and Sudha, 2017)
Legal factors: here the government apply the different laws and legislation which every
organisation have to follow to run their business activities in the smooth ways. In the relation
with the Radisson hotel, they using different guideline where all the function of the organisation
can be performed in better ways and overcome the complexities of the government laws at the
work place. It also help the organisation to achieve the desire level of the outcomes in the most
profitable manners.
Assess a hospitality organisation internal environment and capabilities.
SOWT analysis:
To examine and understand the internal factors of the organisation which have influence and
impact on the productivity of the organisation is evaluated by using SWOT analysis: it is tool
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