Hospitality Business Strategy

Hospitality
Business
Strategy

Contents
INTRODUCTION...........................................................................................................................................3
PART A.........................................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1: Macro-environment analysis.............................................................................................................3
TASK 2..........................................................................................................................................................5
P2: Internal Environment Analysis...........................................................................................................5
TASK 3..........................................................................................................................................................7
P3: Porter’s five forces model..................................................................................................................7
PART B.........................................................................................................................................................8
TASK 4..........................................................................................................................................................8
P4: Application of a range of theories, concepts and models..................................................................8
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRODUCTION
Hospitality is a service which is provided when a relation is created between a guest and
the service provider (Andringa, Poulston and Pernecky, 2016). Business strategy refers to
various competitive moves or actions which a business takes in order to attain strategic
advantage over the different competitors in the market in the future time period. These services
are in a high demand because of the facilities they provide to the customers and clients. For this
project, Four Seasons Hotels & Resorts chain is chosen which has hotels all over the world in
many countries. It is a global chain providing luxury services to its varied customers as well as
clients. Specific analysis will be made on impact of macro-environment, assessment of internal
environment and evaluation of Porter's five forces. Also, focus will be made on applying various
models, theories as well as concepts in the context of strategic planning of a hospitality
organization.
PART A
TASK 1
P1: Macro-environment analysis
There are different types of external factors which can create an influence on the macro-
environment of the organization (Barnes, Meyer and Kinard, 2016). Therefore, it becomes very
important for a firm. The analysis of these factors can be done through PESTEL analysis. This
analysis in the context of Four Seasons Hotels & Resorts is as follows-
Political factors- These are corruption, foreign trade policy and labor law. They have to
be considered from the point of view of Four Seasons Hotels & Resorts because they can
influence the profitability level of any firm.
 Positive impact- If the country where Four Seasons Hotels & Resorts is operating
business in is politically stable then it will lead towards increase in the revenues and will
therefore allows the firm to target higher profits in the future time period.
 Negative impact- If the tax policy is changed by the government then this can result in
increase in the overall expenses of the organization. Therefore, this will result in decrease
in the profits.
Economic factors- These are exchange rates, interest rates and inflation rates. They are
important from the point of view of organizations because by considering them they can make
sure that they deal with them in a highly effective manner. Thus Four Seasons Hotels & Resorts
chain is required to consider them.

 Positive impact- If the exchange rates are relatively stable in the country where Four
Seasons Hotel is operating in then this will positively boost up its business. Thus its
profits level can increase.
 Negative impact- If the inflation rate keeps on increasing in the economy then this will
result in decrease in footfall of customers and clients at the hotel and therefore its
revenues will decrease leading to a decrease in profits.
Social factors- These are safety emphasis, health consciousness and lifestyle attitudes
(Buhalis and Leung, 2018). They impact the business of hospitality organizations and
therefore the business of Four Seasons Hotels & Resorts also is affected due to their
influence.
 Positive impact- Due to change in lifestyle attitudes of the customers they now prefer to
spend extra money for staying in five-star hotels. This results in the boost-up of the
business of Four Seasons Hotels & Resorts.
 Negative impact- Due to cultural barriers there are many places where the business of
Four Seasons Hotels & Resorts is affected. This can reduce the overall profits of the
hotel.
Technological factors- These are R&D activity, technological change and technological
awareness (Erickson and Rothberg, 2017). They can impact the business of Four Seasons
Hotels & Resorts because the technological changes can take place very rapidly in a
dynamic business environment.
 Positive impact- Boost-Up to R&D activity can result in increase in the business of the
hotel as it will result in incorporation of certain changes which are required. In the
context of Four Seasons Hotels & Resorts this is necessary because this will help in
increasing the profits.
 Negative impact- If technological change is adopted slowly by the hotel then this will
result in creation of a negative impact on the profitability level.
Environmental factors- These are environmental policies, climate change and pressure
from NGOs. They can create an impact on the business of Four Seasons Hotels & Resorts
because people are now increasingly becoming eco-friendly and are now making the
same expectations from the businesses as well.