Hospitality Business Strategy

Hospitality Business
Strategy

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK1.......................................................................................................................................3
P1 application of pestle for identifying macro environment and strategy formation............3
TASK2.......................................................................................................................................5
P2 analysis of internal environment with the use of Swot and VRIO framework.................5
TASK3.......................................................................................................................................8
P3 application Porter’s Five Forces model in evaluation the competitive forces..................8
TASK4.......................................................................................................................................9
P4 Using the theories for strategic formation........................................................................9
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12
Books and journals...............................................................................................................12

INTRODUCTION
There is continuous development within the tourism and hospitality industry which
also impacted positively on the business of hospitality organisation. In this report The Chosen
organisation is choice Hotel International. It is a leading Hotel chain within the world where
its own number of Hotel brands ranging from upscale to economic classes. Hotel has 7000
properties in 41 countries worldwide with approximately 6 lakh rooms (Sheresheva and
Kopiski, 2016). Headquarter of this hospitality franchisor is in Rockville, Maryland, United
States. In the beginning of this report there is analysis of impact and influence of macro
environment on the given firm. The middle of the report is consist of internal environment
and capacity of the organisation by the use of SWOT analysis there will also identification of
porter's five forces model and the competitive advantage within the market to this firm. In the
end of this report, there will be application of different theories conception model for
interpreting and analysing the strategic planning within the organisation for achievement of
goals and objectives (Scott, 2016).
MAIN BODY
TASK1
P1 application of pestle for identifying macro environment and strategy formation
Choice hotel International is operating at global level where it is important for the
organisation to deal with its micro and macro environment. Micro or external environment
have direct impact on organization performance. It is important for the hotel to analyse its
macro environment for getting the maximum advantage as well as performing a good
strategy. For identifying the Macro environment organisation can use pestle analysis which
stated below.
Pestle analysis: pestle analysis can be defined as that type of analysis which is directly
involve analysing and planning for external factors which includes political social
economical environmental technical and legal factors. All of these are identified for framing a
proper policy within the organisation to cope up with negative impacts (harwani and
Mathews, 2017).
Pestle analysis of choice Hotel International
Political: political factors are those which include the rules and regulation and policy
formation by the government of the nation where organisation is working. In context of

choice Hotel International, is operating at a global level where it have to deal with number of
policies regarding different governments of different nations. This will impact both positively
and negatively on the organisation as it have to formulate number of policies and complies
with the attitude of different governments in different nation. Positive impact of this is that it
get chance to interact with different government policies where it can strong its structure and
gain the maximum competitive advantage because of that politically stable structure.
Economic: practices are those which include the GDP rate employment ratio interest
rates and many more things related to the economy of the nation where the organisation is
working. In reference to choice Hotel International, headquarter of Hotel is situated in United
States the developed economy. This also means that there is stability within the economy and
Organisation can easily Run its operation and fulfil its goals and objectives related to
economic development. GDP growth is also normal within United States. This impact
positively on choice Hotel International because it can perform easily its functions as well as
chances of growth will also increase (Rather and Sharma, 2016).
Social: social factors are important part of macro environment analysis for
organisation like choice Hotel International. This is because hotel is trading on a global level
which gives different opportunities to it as well as some challenges related to society. Current
times the trend toward tourism and travelling is continuously increasing which help hotel in
growing its function and impacted positively on the profitability because of increased
business opportunities (Petronella, Swart and Anne Taylor, 2018).
Technological: technological factors are those which are directly related to the
technology within the business environment. In reference to hotel choice International,
Technologies in important part of organisation because there are continuous changes within
the technological environment which helped hotel in improving its functions like self-
checkout and check in system, Online sale of room many more (Vlachos, 2016). This
increases the business of the organisation and impacted positively. Negative impact on the
organisation because it has to identify technology and ensure huge amount of Expenditure
within this for gaining it.
Environment: environment factors are those which include climate pollution
geographical location and many other things related to the organisation external environment
which have their direct impact on the performance and capability of the organisation. There
are some environmental factors like change in climate and pollution which have their direct