Unit 41 - Hospitality Business Strategy

Hospitality Business
strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Using different frameworks examine the impact of macro environment .........................3
TASK 2............................................................................................................................................5
P2 Evaluate internal environment and capabilities of enterprises..........................................5
TASK 3............................................................................................................................................7
P3 Use Porter Five force model in relevance with organisation............................................7
TASK 4............................................................................................................................................9
P4 Apply concept/ frameworks for strategic planning in relevance with organisation .........9
CONCLUSION..............................................................................................................................10
.......................................................................................................................................................11
REFERENCES..............................................................................................................................12
BOOKS & JOURNAL.........................................................................................................12

INTRODUCTION
Business strategy is known as process for managing the strategies and plans of an organisation in
order to maintain competitive advantage within market. It is very important for an organisation
to analyse various factors before launching any new product or service within market. Several
decisions are made within companies for managing work and proper manner and analysing the
success of the company. The following report will provide information about business strategy
within hospitality industry. The organisation chosen for completing this report is Shangri-La
hotels and resorts. This is an Asian hospitality organisation which provides services across the
world. The headquarters of this hotel group is in Hong Kong. This hotel caters to the luxury
segment in Asia Pacific which provides services to customers by operating more than 90 hotels
across the world. This report will include various models of business that will help in managing
the strategic development of company. There is pestel analysis, SWOT analysis and Ansoff
matrix which will provide help in in understanding the business strategy effectively.
TASK 1
P1 Using different frameworks examine the impact of macro environment
Pestel analysis is defined as the strategic tool which is used for managing the success within
organisation by analysing the various factors that affect any organisation in attaining profitability
within market (Ahmad, Bakar, and Ahmad, 2018). There are various elements within the pestel
analysis that are used for determining the success of Shangri-La hotels and resorts within market.
Pestel analysis of this hotel chain is described below – Political factors - these are known as various rules and regulations given by Government
while operating organisation in any segment. there are various factors that affect
hospitality organisations to operate within market. It is important for management of
Shangri-La hotels and resorts to manage the work in proper manner and analyse that it is
essential for the management to work effectively and achieve organisational goals. the
various political factors that can affect Shangri-La hotels and resorts include terrorism,
political certainty, etc. Hospitality industry has to analyse the environment and
surrounding in which services are provided to customers. a case of small terror attack can

also influence hospitality organisation in negative manner. The ISIS has been increasing
nowadays and frequency of terror attacks across the world have been a threat to travellers
while they are enjoying at their destination countries (Alegre, and Berbegal-Mirabent,
2016). Another factor that affects a hospitality organisation like Shangri la hotel is
political certainty. This provides business of the region which has to be e stable for
increasing the demand of service. When the hotel is situated at a good locality and region
with stable climate in which more investors can invest your money will be a good choice
for the organisation. It is seen that customers are more prone for corporate meetings as
well as corporate travels file using five star hotel services provided by Shangri-La hotels
and resorts. The main reasons for hospitality industry to increase their profit is to provide
services where there is political certainty. US President Donald Trump provided trade
protectionist policy due to which it was very difficult for the hospitality organisations to
work at global level. Also, after this scenario of brexit, it was not easy e for the
companies to operate across the globe in in proper manner.in context of Shangri-La
hotels and resorts, there is political table situation in Asia Pacific region so there is no
problem for this organisation to flourish and increase the market share. Economic factors - these are concerned with economic elements of various countries in
which city hospitality organisation is providing services. It is essential for the
management of company to evaluate that it is operating in in growing economy as it will
contribute to organisation’s profit gradually. There are not foreign exchange gains
because of the depreciation within currency. Shangri la hotel operates in various
countries and apart from Japan and hongkong, the countries in which this hotel is
providing services, currency has been depreciated against US dollars. This negatively
impacted balance sheet of this organisation. While operating business, it is very important
to analyse the global interest rates. If there is an favourable global interest rates, that is
because of the increased protectionist policies then this effects business operations of
Shangri-La hotels and resorts. Social factors - these are the elements which are associated with needs and demands of
customers while providing them services. Social factors affect the hospitality
organisations in both manners positive and negative (Boella, and Goss-Turner, 2019).
There is reduction in overnight corporate stays as well as corporate meetings. This has