Analysis of Macro Environment and Internal Capabilities for NH Hotels

Business Strategy

Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1. Appropriate frameworks for the analysis of influences and impacts of macro environment on
selected enterprise and its strategies..................................................................................................3
M1 Critically analyse the hospitality macro environment to determine and inform strategic
management decisions.......................................................................................................................5
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.......................................................................................................................................5
TASK 2.................................................................................................................................................5
P2 Analyse the internal environment and capabilities of a given hospitality organisation using
appropriate frameworks.....................................................................................................................5
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set.................................................................7
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.................................................................................................................................................9
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning for a
given hospitality organisation............................................................................................................9
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives.........................................................................................................................................11
CONCLUSION...................................................................................................................................11
REFERENCES..................................................................................................................................12

INTRODUCTION
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 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.
TASK 1
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.