Strategic Planning for Sheraton Hotels and Resorts

Hospitality Business
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Frameworks to analyse macro environment and strategies of organisation...........................3
Analyse internal environment and capabilities of organisation using appropriate frameworks
................................................................................................................................................5
Application of Porter’s Five Force Model to analyse competitive forces in market..............7
PART B............................................................................................................................................8
Interpret and devise strategic planning for organisation........................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In today’s world high demand of tourism and hospitality sector can be seen which is
increasing the business for hospitality organisations. This report is conducted on Sheraton hotels
and resort which is an international hotel chain owned by Marriot international. The following
organisation have more than 400 hotels and also on more than 1.5 lakhs room throughout the
world. They have their hotels in all over the world including North America, Asia, Central,
Africa and South America as well. It is headquartered in situated in White Plains, New York,
United States (Konovalova and et. al., 2018) . The following report consist of various impacts of
macro as well as micro environment on the organisation. Along with it all the internal factors
which are affecting the business including resources of an organisation are effectively explained
in this report. The following report also consist of various analysis done on Sheraton hotel and
resort including pestle analysis, swot analysis, porters five forces model as well as competitive
advantage analysis of the hospitality business. Through critical analysis of all the above-
mentioned components business confirm a strategy in order to achieve all their goals and
objectives effectively.
PART A
Frameworks to analyse macro environment and strategies of organisation
Sheraton hotels and resort are internationally recognized resorts who have to take sure
analysis of all the micro as well as macro environment of organisation. Macro environment
usually refers to the external environment of a company which affects the operations as well as
functions in a number of ways. It is often seen that in order to make sure that maximum benefit
from all the opportunities presented and external environment of an organisation the organisation
requires to study the environment carefully. In order to identify all the opportunities it is required
to conduct a PESTLE analysis on the external environment which is as followed:
PESTLE analysis refers to an analysis on the external environment of an organisation
which includes all the factors which directly or indirectly have an effect on functions and
activities of the company. It stands for political, economic, social, technological, environmental
and legal factors in the macro environment of an organisation which are affecting the working of
an organisation either positively or negatively. Below mentioned are all those factors which
affect the working of Sheraton hotels and resorts:

Political factors: It includes all those factors which are related to the rules and regulations
or the policy is formation by the ruling party of government in a particular country where the
organisation is setting up its business. When taking into context Sheraton hotels and resorts it is
seen that they have a number of hotels in various locations of world (Papaioannou and et. al.,
2018). Due to this they have to deal with a number of political policies in a number of nations. It
can be seen that Sheraton hotels and resort face positive impact as they get a chance to work with
government of a number of nations building good relationships with them. The negative effect of
political factors on Sheraton hotels can be that they need to make sure that they have the right
attitude for the country or nation so that the political parties are favoring them.
Economic factors: Economic factors related to all those factors which directly affect the
earnings of a company. This includes gross domestic product of a nation, employment ratio,
foreign direct exchanges, interest rates, spending by consumers and so on. When taking into
context Sheraton hotels and resorts the company is based in United States which is a developed
economy. The stability of economy is helping the business to grow. Also the spending level of
people is increasing as they are more impacted by luxurious services which are provided by
Sheraton hotels and resorts. There for economic factors are favoring the organisation.
Social factors: Social factors refer to all those values and beliefs of people who are
surrounding the environment in which a business is running. It also includes the changing trends
and preferences of customers for a business. When talking about tourism sector in United States
is it is increasing heavily. Due to this Sheraton hotels and resorts are facing demand from a
number of guests internationally. This is profitable for company. They need to make strategies in
order to provide efficient services to all their international guests.
Technological factors: Technological factors refer to all the new technologies and
innovations which are being invented day today. It is necessary for hotels to make sure that they
include all the new technologies while they serve their guest. Using these new technologies will
have positive impact and also increase the productivity of employs along with increasing the
credibility of organisation and its brand image. The negative factor related to technological
factors are that they are very costly. Huge investments are required by businesses to comply with
new technology into their business.
Environmental factors: Environmental factors usually includes the geographical location,
the climate pollution and the ways in which an organisation is affecting the environment and