Hospitality Business Strategy

Hospitality
Business
Strategy

Contents
INTRODUCTION...........................................................................................................................................3
Part A...........................................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1: Macro-environment factors...............................................................................................................3
TASK 2..........................................................................................................................................................5
P2: Internal environment.........................................................................................................................5
TASK 3..........................................................................................................................................................7
P3: Porter’s five forces.............................................................................................................................7
Part B...........................................................................................................................................................8
P4: Application of a range of theories, concepts and models..................................................................8
CONCLUSION.............................................................................................................................................10
REFERENCES..............................................................................................................................................12

INTRODUCTION
The relationship which is shared between the guest and the service provider is known as
hospitality in which the guest pays a specific amount to be able to avail the service (Ahmad,
Bakar and Ahmad, 2018). Business Strategy is framed by organizations so that they are able to
frame methods to get ahead of their various competitors who are operating within the market.
This is much required by the hospitality organizations nowadays because they need a specific
strategy for getting a competitive edge within the market. For this report, Rosewood Hotels &
Resorts has been chosen which is a large hospitality chain having hotels all around the world. In
this assignment, specific focus will be made on analysis of impact of macro-environment,
assessment of a hospitality organization’s internal environment, evaluation of outcomes with the
use of Porter’s Generic Strategies. Also, application of models, theories and concepts will be
made as part of this project.
Part A
TASK 1
P1: Macro-environment “factors”
Macro-environment factors refer to various types of external factors which can create an
impact on the business of any organization. They can be analysed using PESTEL analysis. The
PESTEL analysis in the context of Rosewood Hotels & Resorts is as follows-
Political factors- Political factors are those situations which create an impact on the
profitability of the organization as they are dynamic and can change anytime (Aithal and Aithal,
2016). These factors impact the business of Rosewood Hotels & Resorts because they can either
increase or decrease its level of profits.
 Opportunity- If government policy is lenient towards businesses then it creates an
opportunity for businesses like Rosewood Hotels & Resorts because it can lead towards
increase in their profits.
 Threat- If there is an increase in tax rates by the government then it can lead towards a
decrease in the level of profits of Rosewood Hotels & Resorts.
Economic factors- Different types of economic situations can prevail in the market
creating an impact on the profitability of the firm. These factors can impact the business of
Rosewood Hotels & Resorts because they are directly linked with the economy of country.

 Opportunity- If the economic growth of the country is increasing then it will naturally
have a positive impact on the business of Rosewood Hotel & Resorts because it will help
the hotel a lot by increasing its revenues and subsequently the level of profits in the
future.
 Threat- If the disposable income of the customers falls due to economic slowdown then
they will not prefer to stay in a luxury hotel like Rosewood Hotel & Resorts which will
therefore become a threat as it as it can result in decrease in the overall level of profits.
Social factors- In a society, there are certain factors which can create an influence on the
operations of the organizations (Atrash, 2018). They can create an impact on the business
of Rosewood Hotels & Resorts because this will lead towards an increase or decrease in
its profitability.
 Opportunity- Change in lifestyle attitudes of customers has led towards them increasing
their spending by preferring to stay in luxury hotels like Rosewood Hotels & Resorts.
Therefore this offers an opportunity to increase the level of profits.
 Threat- Cultural barriers in certain sections of society stop certain people from staying in
luxury hotels like Rosewood Hotels & Resorts. Thus this creates a threat for them as their
level of profits can reduce.
Technological factors- In the business environment there can be frequent changes which
can be witnessed and thus there is a requirement that an organization makes the desired
adjustments with them (Chen and et.al., 2016). These factors create an impact on the
business of Rosewood Hotels & Resorts because they create a direct or indirect impact on
the level of profits.
 Opportunity- Technology incentives offer an opportunity to Rosewood Hotels & Resorts
because by developing their technology they can easily meet the needs and requirements
of a dynamic environment.
 Threat- If Rosewood Hotels & Resorts is not able to innovate according to the changing
needs and demands of the market then it will naturally lead to a decrease in its revenues
and level of profits.
Environmental factors- The rising consciousness of the customers towards the
environment is a factor which should be considered by the organizations. These factors
can impact the performance of the organization both in the short-run and long-run