Influence of Macro Environment on Crown Plaza: A Strategic Analysis

Hospitality Business
Strategy

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Analyse the influence of macro environment over business firm...............................................1
Domination of the internal environment and capabilities of organisation..................................2
Evaluation of the competitive forces of company.......................................................................5
Application of different theories, models and concepts, interested frame strategic planning.....6
CONCLUSION................................................................................................................................8
REFERNCES...................................................................................................................................9

INTRODUCTION
A business strategy is an amalgamation of processes and competitive moves that company
usages for attracting target audiences, strengthening execution, accomplishing business firm’s
goals and objectives as well as contend appropriately. It can define as that plan of actions and
strategies which are formed by the administration of the firm for effective running and operating
business in specific business industry (Kandampully, Zhang and Jaakkola, 2018). It is master
plan which management use to secure competitive position in market, carrying operations and
attaining objectives of venture. This assignment is based on Crown Plaza which is a
multinational chain of full service, upscale hotels. The organisation was incorporated in 1983
and is headquartered in Denham, UK. The written report will discuss about impact of macro
environment, internal environment and capabilities of organisation. Further, will define Porter’s
five forces analysis to define the competitive forces and strategies to improve market position.
Different concepts, theories and models as well as strategic planning will also define for strategic
growth.
MAIN BODY
Analyse the influence of macro environment over business firm
PESTEL analysis
It is a strategic tool is implemented by companies to analyse the impact of external or macro
environment factors over the business of firm. The brief description of this analysis in context of
Crown Plaza is mentioned as below:
Political factor- It include different components such government intervention, taxation
policy, political stability or instability, foreign exchange, trade restrictions and many more. In
Crown Plaza, government policy is the main factor that influence the business of company Due
to COVID19 pandemic there are several kind of change in government polices and plan
regarding hospitality industry that affect the business of respective firm in unfavourably manner
(Revathi and Aithal, 2018).
Economical factor- It consider factors like interest rate, exchange rate, currency rate,
economic growth, employment or unemployment rate, inflation or deflation and economic
recession as well as cost of goods etc. Brexit is the main factor that highly affects the business of
Crown Plaza. Due to Brexit, inflation arises and suppliers make increment in their products
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services that affect the economic condition of firm. Causes of this, the management of respective
venture make change in its pricing strategies.
Social factor- This component of macro environment analysis consider different factors like
culture, beliefs, values, needs, demands , taste and preferences and demographic components.
Crown Plaza is focused on satisfaction of consumer’s needs but the business of this firm is
influenced by higher tax (Li and Singal, 2019). Because when tax increase, the administration
make maximisation in its prices of services which negatively affect the company as customer are
prices conscious and it is hard to maximise average achieved room rate.
Technological factor- This factor include several components like technological innovation,
advance technology, research and development, artificial intelligence and many more. In Crown
Plaza, the administration use multimedia technologies to develop productivity and develop
business growth options. The hotel also equipped with the latest information system with the
purpose of collecting information. Online reservation system also enhances advance bookings
from across the world which positively influences the business of respective firm.
Environmental factor- It considers different atmospheric and social responsibility factors. It
consists components like climate, weather, environmental laws and many more. In existing time,
customers are more vigilant and normally favour the organisations that care about environment.
This component include the strong prominence on CSR is one of the major core skills of Crown
Plaza. The organisation, holiday destinations are sold as opportunities to stay at some paradise
but their activities so more damage to the nature than preserve them. This has made the
customers conscious and they want ethical companies, green hotels and eco-friendly goods.
Legal factors- It includes diverse laws and legislations that are framed and developed by the
government for the effective operating of business company. It consists employment act, health
and safety law, consumer protection act and many more (Bratton and Watson, 2018). The
administration of the firm appropriately follows and considers equality, health and safety or
consumer protection act, the venture offer equal pay, better growth option, the company offer
security to employees and securing information of consumer offer provide to them.
Domination of the internal environment and capabilities of organisation
SWOT Analysis
It is considered as a strategic tool and technique that is utilised and implement by a
business company to monitor the internal environment of the organisation in form of analysing
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