Unit 41 - Hospitality Business Strategy

Hospitality Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Applying appropriate frameworks, analyse the impact and influence of the macro
environment on a given hospitality organisation and its strategies........................................3
TASK 2............................................................................................................................................7
P2 Analyse the internal environment and capabilities of a given hospitality organisation using
appropriate frameworks..........................................................................................................7
TASK 3............................................................................................................................................8
P3 Applying Porter’s Five Forces model, evaluate the competitive forces of a given market
sector for a hospitality organisation.......................................................................................8
TASK 4............................................................................................................................................9
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given hospitality organisation........................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality Business strategy is defined as the plan in which effective plan of action are
made which is helpful for the hospitality business in achieving objectives aimed towards set of
decisions. Hospitality Business strategy includes plan in which top position is obtained by the
management in order to formulate effective plan of action by undertaking external and internal
factors. This report is prepared to understand all these concepts of hospitality industry with the
background of Fairmont. The hotel was founded in the year 2001 and headquartered in Toronto,
Canada. These chains of hotel are renowned for their luxury hotel services and they are having
their presence at global level. Furthermore this report highlights effect of macro and micro
environment over the business and its overall strategies. Within this report several concepts,
theories and models are used in order to understand numerous concepts (Leonidou and et. al.,
2017).
TASK 1
P1 Applying appropriate frameworks, analyse the impact and influence of the macro
environment on a given hospitality organisation and its strategies
Vision- Major Vision of Fairmont is to provide authentic local experience to their
customer by offering luxury experiences so as to make their presence in hotel and resort sector.
Mission- The major mission of Fairmont is to turning stay moments into memories for their
guest in order to provide remarkable stay to their guests.
Objectives- In context of Fairmont the major objective of Fairmont is to provide warm and
remarkable experience to their client so as to anticipate needs of their guests and become
ambassador of hotel and resort sector.
Hospitality strategy is defined as the effective plan which is undertaken by manager,
supervisor and other authorities on top. The entire efforts of employees are directed for the
accomplishment of business objectives by managing operation in such a way that high advantage
can be received over rivals within marketplace in sales and profits.

Different techniques of strategic planning
 Benchmarking- This is defined as comparing and obtaining metrics within competitor
and whole industry so as to recognise standard of the hospitality business in that
comparison. In this context Fairmont recognises their market position by comparing their
business operation with market leader of hospital industry (Leischnig, Woelfl and Ivens,
2016).
 Business analysis- With the help of appropriate analysis of business operational and
functional efficiency can be attained by business. In case of Fairmont they are analysing
their strength and weaknesses so as to achieve desired outcomes.
Framework to understand macro environment
PESTLE Analysis
PESTLE analysis is the strategic tool which is used by businesses in order to recognise
external factors those are having high implication on business in effective manner. In the context
of Fairmont PESTLE analysis is enumerated as under:
Political factor- This factor is associated with tariff rates, regulation and rules of
government. In the context of UK the country is having high implication on its business of
Brexit. Due to this political condition is not stable over there. In the context of Fairmont they are
having high impact of political factors as in hospitality business at the time of political
movement. So for this management of Fairmont is making robust strategies in order to obtain
positive benefits from those factors (Perera, 2017).
Economical factor: This factor is associated with interest rate, buying power of
individual, currency rate and many more. In the context of UK purchasing power of the
individual is high but at the same time due to Brexit income of every individual is having
negative implications. In the background of Fairmont their financial and fiscal policy is affected
due to this factor and economic condition of the hotel is having negative implications.
Social factor: These factors are associated with attitude, beliefs, taste and preferences of
customers. In the context of UK they are having open minded society and for this businesses are
required to use advanced and modern products in order to get prominent market position. In the