Hospitality Business Strategies

Hospitality Business Strategies

INTRODUCTION
Management planning plays a significant function for the company in meeting its goals and
priorities in a set timeline. In other words, it is the management plan that assists in enhancing
performance level of business organisation. It signifies the method of accomplishing objectives
and without making effective strategy it is not possible for entity to compete with its rival firm at
market. Report is based on Rosewood hotel. It is the multinational luxurious hotel which
operates their business in 16 countries and approx 28 hotels. This hotel was founded by Caroline
Rose Hunt in the year of 1979. In this assignment, the PESTLE is used for identifying macro
environment factor that is necessary to take for future success and growth of company. And
SWOT as well as VRIO is adopted for analysing internal capability and resources of organisation
in a proper way. Furthermore, Porter uses five strength designs to gain competitive edge and
Ansoff is incorporated as a tactical area for future hotel development within the hospitality
industry (Erickson and Rothberg, 2017).
Business strategy is the process through which company can achieve their profit along
with revenue for next time frame. This is crucial for companies to consider changes in entire
phase of finance, human resources as well as in marketing in order to implement strategy as per
need of entity. Strategies helps organisation in bring innovative ideas, beliefs and thoughts for
enhancing activities and function in an appropriate manner. There is different external
environmental factor which enforces strategy of business which is going to be discussed below:
PESTEL Analysis:
PEASTEL research is the analysis that is implemented to analyse multiple practices and
roles that specifically impact competitiveness and organizational profitability. Therefore, in
context of Rosewood hotel, they adopted this framework for assessing macro environmental
factor which is going to be mentioned below:
Political factors: It consist tax framework, political stability environment regulation,
trade, tariff, government policy and many more. This is crucial for business firm to take these
aspects while making effective strategy for organisation. Due to involvement of government, it
affects business firm in adverse manner. It is not possible for firm to change their policy as per

frequently change in rules and regulation of government which impose negative impact on
performance as well as productivity of hotel within hospitality sector. On the other hand, due to
political stability, the company operates their business in better way without any interruption
which is beneficial for organisation in future time period. Therefore, it is being considered as
positive sign for Rosewood hotel (Sciukauske, 2020).
Economical factor: It includes variables such as income, exchange rates, inflation and
average wages and so on that strong effect on company culture is imposed. Due to increase in
inflation, the individual person less spent their money on staying in hotel, thus it decreases sales
as well as profitability level of Rosewood hotel which is negative affect growth of company in
future time period. So although, in order to fulfil them, they continue providing lavish hospitality
service as per client need at affordable price, it helps to increase customer expertise on the global
market. And it also improves corporation trust and loyalty of customer. It thus improves the
revenue as well as the degree of productivity in the coming years.
Social factor: The social factor includes ethnicity, community, health education as well
as consumer tastes which directly influence hotel overall performance. Because of constant shifts
in client's preferences and tastes; it is not feasible for the business to adjust its practices to
accommodate them, lowering revenue as well as eroding income. And they give their consumers
creative technologies that enable them achieve comparative edge over competing businesses on
the sector. They provide luxurious room facilities in order to beat with its competitors in an
effective manner.
Technological factor: It is very crucial for success of hotel within hospitality sector. In
context of Rosewood hotel, they implement new technology in order to cope up with changes
environment at marketplace. As per the have to increase revenue and benefit in the coming time,
they give their customers. It introduces additional costs for the client owing to the introduction of
new technologies, thereby adversely impacting hotel competitiveness and efficiency.
Environmental factor: It include factor such as seasonal and climatic condition which
imposes direct impact on growth of hotel within hospitality sector. It is necessary to increase
awareness regarding these factors in order to increase performance of organisation in a proper
way. And it unexpectedly puts adverse effects on hotel profitability and development due to
shifts in environmental conditions. Apart from this, Rosewood hotel offer services which is eco-
friendly that increases standard o living of individual person of society. And also, it enhances