Applying Analytical Frameworks for Hospitality Business Strategy

Unit - 41

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
PART A...........................................................................................................................................1
Applying appropriate model or framework to analyse macro environment impact on strategies
of particular hospitality business.................................................................................................1
Analysing internal environment addition to capabilities of the hospitality firm by using
frameworks..................................................................................................................................3
Appling framework of Porter’s Five Force Analysis for evaluating competitive forces of
market sector for the company....................................................................................................6
PART B...........................................................................................................................................7
Applying theory or model and devising strategic planning for the hospitality business.............7
CONCLUSION AND RECOMMENDATIONS............................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy is combination of decisions along with actions attempted by an
organisation with the aim to accomplish objectives and uphold competitive position (Agnihotri,
2016). In hospitality sector, devising business strategy is among important activities which are
performed by management of companies. It creates vision addition to direction for entire
enterprise. To gain information related to hospitality business strategy, Mandarin Oriental Hotel
Group is selected. It is well popular large global entity in hospitality sector. It has its roots in the
industry since 1963 and with passage of time, the company has bloomed into global hospitality
conglomerate in 27 countries with 41 hotels.
The present report is all about environmental analysis along with strategic growth
management plan on the basis of recognised or appropriate analytical frameworks to analyse
macro and internal business environment. It also includes evaluation of competitive forces by
applying Porter’s Five Force Model. At last, various strategic directions available to the
company are analysed and strategic planning is prepared for the hospitality concern.
MAIN BODY
PART A
Applying appropriate model or framework to analyse macro environment impact on strategies of
particular hospitality business
Overview of hospitality organisation: Mandarin Oriental Hotel Group is among luxury
hotels, residences segment as well as resorts in Americas, Asia along with Asia. The group
enjoys global presence with its headquarters located at London, Hong Kong, Atlanta and
Washington D.C (Mandarin Oriental Hotel Group, 2020.). The mission of Mandarin Oriental
Hotel Group is to delight and meet satisfaction of guest in complete manner. The vision of the
hospitality company is to be recognised as best luxury hotel group across the globe. The values
of the entity are related to integrity, leadership, hospitality, teamwork and ownership.
Macro environment: The environment which is not bound by geographies and results in
direct bearing on business operations is described to macro environment. It engrosses set of
external elements or factors which influences development efforts, strategies, tactics and
practices of company positively or negatively (Altinay, Paraskevas and Jang, 2015). Factors that
1

are part of macro environment are analysed by strategic managers of Mandarin Oriental Hotel
Group through PESTLE Analysis framework.
PESTLE Analysis: It is an analytical tool which mostly all companies use for tracking
environment in which they are current operating or are planning to expand. It includes six factors
that directly impacts operational strategies of businesses. In relevance to Mandarin Oriental
Hotel Group, the factors that impacts on business and strategies are as analysed:
Political: Cornerstone of any hospitality policy is needed for political stability as to
provide safety to hoteliers and tourists at global level. UK enjoys reputation of stable political
system wherein government provides welfare services to hotel groups as well as gives discount
access to their products, equipment and services as per new trends which impacts positively on
strategies adopted by Mandarin Oriental Hotel Group to operate in the nation. In contrary, the
policies and decision taken by the political system for COVID – 19 for the pandemic satiations in
order to shut down the organisational premises for temporary duration impacts negatively on its
strategies to generate earnings.
Economic: It concern direction along with nature of economy wherein business operate
such as disposable income, interest rate, business cycle and etc (Andraos, 2016). For example, in
UK, number of travellers for business purposes has reduced influences strategies of Mandarin
Oriental Hotel Group negatively on its occupancy. At same time, by increasing some discounts
and making attractive promotions, the hotel is able to make profits above the break event and
meet satisfaction of customers for leisure events. It is also analysed that varying exchange rate
impacts on profits as revenues generated on day one generally become different sum at the time
transported to domestic nation of the entity.
Social: Social environment comprises of broad societal trends that impact hotel enterprise
and its devised strategies (Aronoff and Ward, 2016). One of most profound social change in UK
in recent years is entry of women in large number into labor market. It is analysed that women
are making more money and travel more that impacts positively on Mandarin Oriental Hotel
Group as it greatly expands demand of the offerings such as spa treatments, weddings, fitting
rooms and so on which increase revenue level of the entity by selling diverse product range.
Technological: UK’s government is making emphasis on technological efforts for
accelerating technology innovation along with adoption in hospitality industry. It impacts
positively on Mandarin Oriental Hotel Group as technological program organised by the
2