Hospitality Business Strategy

Unit 41 - Hospitality
Business Strategy

Table of Contents
INTRODUCTION.....................................................................................................................................3
PART A...................................................................................................................................................3
P1 Use appropriate frameworks and examine the impact of macro environment............................3
P2 Analyse the internal environment of organisation.......................................................................5
P3By applying Porter Five Forces Model, examine the various forces in relevance with chosen
enterprise..........................................................................................................................................7
PART B...................................................................................................................................................9
P4 Apply range of theories, concepts and models and prepare strategic planning ..........................9
CONCLUSION.......................................................................................................................................11
REFERENCES.........................................................................................................................................12
Books & Journal:..............................................................................................................................12

INTRODUCTION
Business is a wider and broader concept in which where is the office of functions
operations and activities are involved. Competition is rising at rapid level and it is necessary
to deal with the rivals and competitors in proper manner. Business strategy is defined as set
of tactics or planning how the resources and other things can be used in the business. Thus,
today competitive advantages organisation uses the business strategy. Shangri-La hotels and
resorts which is a multinational chain of hotels headquartered in Hong Kong. The hotel is
located worldwide provide ample number of facilities as well as services to the customers.
This report includes PESTEL Analysis, Porter 5 forces models, SWOT analysis and various
theories and concepts. It is not possible for any business to survive in the market without the
use of business strategy has it helps them to forecast and determine the enterprise position as
well as performance analysis.
PART A
P1 Use appropriate frameworks and examine the impact of macro environment
In business environment plays vital role and have a different background for
productivity as well as performance of company. There are very sectors environment which
affect the business and slow down growth and overall development of business. In relation
with Shangri-La hotels to determine the environmental factors which are also known as
macro environment the organisation uses the PESTEL analysis. Manager of the hotel at
assures that appropriate tools are used in the management through which strategies and
tactics are implemented properly and accordingly (Strategy, 2019
PESTEL Analysis
It is a tool which is used by many organisations to determine impact of external or
macro environment on this business. In relevance with Shangri-La hotels it is important to
examine such factors because this will help enterprise to take decision effectively. To
implement this tool proper market research is required which is a time consuming process but
assists taking competitive advantage within the business sector. Also reliable information is

required so that positive result is achieved when going with this framework. So various types
of factors involved in this tool are being discussed below-
Political factors- In this factor, it involves Labour law, government law and many
more. In relation with Shangri-La hotels, they have been also affected by this effective as
Hindi HK labour tax r higher and which increases the cost of production at higher level.
Also, political stability in Hong Kong is dynamic which makes it difficult for business sector
to run their activities in proper manner (Ardley, 2019).
Economic factors- This includes wages rate tariff and non-tariff rates etc. With the
differences between 2 major countries and their economics which is U.S as well as Britain
have affected the global interest rates various industrial sector. In context to chosen hotel
they have been also affected by this as because the global rates are becoming unfavourable
and expenditure as well as other costs is increasing at larger scale. Economic factors slow
down the growth of business as because involvement of government is more in this element.
With focusing on this factor they are able to maintain a positive relationship with government
and national authorities which is beneficial for their firm (Lanzolla, 2020).
Social- Social factors also play important role in the business environment as because
they include religion, culture, income etc. In relation with Shangri-La hotels, they focus on
social factors in proper way such as they provide customers a world class service and
environment like their home so that customer feels good and they feel like they are in their
own house. Through this total satisfaction is achieved by the customer and also which
increases the goodwill of the enterprise (Cao, 2019). As they are located globally, they
provide services acforidng to region, culture and income so that customers are easliy
accesible to their hotel services.
Technological- In this, it includes using of advanced technology artificial intelligence
hardware and software and many more. Technology has become necessity for enterprises
because it simplifies human work and help in achieving goals as well as objective within a
period of time. In context to Shangri-La hotels they also use technology in an appropriate
manner such as they use social networking platforms and various e-commerce website for
their business and accessing customer at global level. Also they use digital seconds as well as
kiosk.
Environmental- Then, further comes the environmental factor in which it comprises
of pollution waste management weather and many more. It also business activities as they are