Analysis of Macro Environment and Internal Capabilities for NH Hotels

Business Strategy

Contents
INTRODUCTION.....................................................................................................................................4
TASK 1....................................................................................................................................................4
P1. Appropriate frameworks for the analysis of influences and impacts of macro environment on
selected enterprise and its strategies................................................................................................4
M1 Critically analyse the hospitality macro environment to determine and inform strategic
management decisions......................................................................................................................6
D1 Critique and interpret information and data applying environmental and competitive analysis
to produce a set of valid strategic directions, objectives and tactical actions for a hospitality
organisation.......................................................................................................................................6
TASK 2....................................................................................................................................................6
P2 Analyse the internal environment and capabilities of a given hospitality organisation using
appropriate frameworks....................................................................................................................6
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set................................................................8
TASK 3....................................................................................................................................................8
P3 Applying Porter’s Five Forces model, evaluate the competitive forces of a given market sector
for a hospitality organisation.............................................................................................................8
M3 Devise appropriate strategies to improve competitive edge and market position based on the
outcomes...........................................................................................................................................9
TASK 4..................................................................................................................................................10
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for a
given hospitality organisation..........................................................................................................10
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives.........................................................................................................................................11
CONCLUSION.......................................................................................................................................12
REFERENCES.........................................................................................................................................13

INTRODUCTION
A business strategy can be defined as the combination of entire decisions taken as
well as actions performed by an organisation to attain business objectives and to secure a
competitive position within the market. Business strategy involves actions and decision made
by the entrepreneur so that organisational task can be achieved. With proper business strategy
the hotel can get a competitive position in the market so that they can appeal the interest of
internal and external stakeholder (Charter, 2017). For this report, NHS is a chosen
organisation that provides healthcare services to the patients. For a better understanding
NH Hotels which has it’s headquarter in Madrid, Spain is taken. The company
comprises of various hotel, restaurant and resorts to make pleasant trip of the
customer. This report cover topics like impact of macro or external environment within
hospitality business. Determine internal environment or capabilities of the hospitality
sector. Moreover, implement Porter’s five force model in order to examine competitive
forces and devise strategic planning for hospitality organization. This report dovided into
two parts that covers PESTLE and SWOT analysis and also cover Porter’s Five Forces
model.
PART
P1. Appropriate frameworks for the analysis of influences and impacts of macro environment
on selected enterprise and its strategies
The business major challenges is to take care of external environment, it affects the
business growth by a huge margin. The company is aware about it and they do complete
analysis of macro environment to overcome future challenges. In order to analyse the macro
environment and its impact on performance the manager of the company use various
framework are discussed.
PESTLE ANALYSIS
The company under this analysis try to determine key elements which can affect the
firm and make decision to counter the external factor which can affect the firm. It helps the
firm to have the knowledge about existing situation and what can be done to bring the
potential positive changes. It consists of six elements which are as follows:
Political factors: It plays a major role especially when it is about the economy of the
country. NH Hotel main motive is to attract the foreign tourism so that they can get more and

more revenue and at the same time expand globally. Taxation is levied heavily on hospitality
industry and NH Hotel is no exception, govt. gets lot of revenue out of it. Any political issues
may reduce tourism like terror thread to a country, so industry need to deal with such type of
factors also.
Economical factors: It includes many factors such as taxation, inflation, GDP,
population and many more. Economic change brings a significant change in the behaviour of
the firm (Feldman, Amit and Villalonga, 2016). The tourist coming for seminars, conferences
and corporate meeting ask for more amenities and also pay more the services they have asked
for. NH Hotel see this as an opportunity and they try to exploit it as much as possible.
Social factors: Demand of the companies services and products are affected with the
change in social factors. The company works on satisfying the customers by identifying their
needs and then fulfilling them. The company works on meeting the culture of the society and
try to satisfy the community in which they are working.
Technological factors: The hotel is well aware of the fact to sustain the competition it
is necessary to adopt updated technology. The use of updated technology may help the hotel
to get a competitive advantage over their rival firm. Even the guest of today has become
informed and advance, they also prefer hotels with updated technology and automation. They
feel like with the availability of latest technology they are more safe and secure. People
coming for business meeting look for WIFI and many hotels including NH Hotel provides
this technology to its customers.
Legal factors: legal factor have a close link with political factor. There are some rule
and regulation which the company need to follow in an economy, those are called legal
factors. It also includes safety and health law which is essential in a hotel industry. People
only get attracted to those hotels which are legal and well rated in terms of security.
Company need to take care of all legal element in an economy, if found guilty it may hamper
the goodwill of the company.
Environmental factors: weather change may impact the operation of the hotel and
sometimes can be the reason for the decline in the revenue of the business. Sustainable
development need to kept in focus as motive of the company should be doing development
while using eco friendly technique (Grant, 2016). It will gather the interest of more tourist as
they will also like to stay in environment friendly hotels. Various natural calamity like