Hospitality Business Strategy

This report discusses the impact of macro environment on a hospitality organization, analyzes the internal environment and capabilities, and evaluates competitive forces using Porter's Five Forces model. The chosen organization is Marriott International, a global hospitality company. The report also includes a strategic marketing plan for the organization.

Hospitality Business
Strategy

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
PART 1.......................................................................................................................................3
Applying appropriate frameworks, analyse the impact and influence of the macro
environment on a given hospitality organisation and its strategies........................................3
Analyse the internal environment and capabilities of a given hospitality organisation using
appropriate frameworks.........................................................................................................5
Applying Porter’s Five Forces model, evaluate the competitive forces of a given market
sector for a hospitality organisation.......................................................................................7
PART2........................................................................................................................................9
Strategic marketing plan by using different theories and frameworks..................................9
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................13
Books and Journals..............................................................................................................13

INTRODUCTION
There is Development within tourism and travel industry Because of continuous
increasing trend of traveling. This also impacted on the business of hospitality industry in a
positive manner as they are also earning lot of opportunities because of increased markets
(Sowanber, Ramkissoon and Mavondo, 2018).
In this report, chosen organisation is Marriott International. Is operating within the
hospitality business and performing its operations at global level Marriott International is an
American multinational company which it Services within the hospitality industry in different
countries. Company have more than 7000 properties in 131 countries and territories around
the world which provide more than 5 lakh rooms. It is also listed in 100 best companies to
work for in fortunes list. In current times, Marriott hotel is providing 1400693 rooms on 2104
destination. Companies headquartered in in Bethesda Maryland in Washington DC.
In this report, there is discussion about application of different frameworks to identify
macro and micro environment. There is also discussion on porter's five Force model as well
as ANSOFF Matrix to identify the business Strategies and formulate the proper business plan
which can be followed by organisation to develop its objectives as well as reach at the plinth
of market. This report is also discussing the strategic marketing plan related to the
organisation. The strategic marketing plan consists of mission objectives vision of the
organisation. In relation to Formulation of strategic plan organisation will use the frameworks
ANSOFF matrix and porter's generic strategies.
MAIN BODY
PART 1
Applying appropriate frameworks, analyse the impact and influence of the macro
environment on a given hospitality organisation and its strategies
PESTEL ANALYSIS
PESTEL analysis is the framework which is used for analysing external
environmental factor which enforces direct impact on productivity as well as profitability of
organization in future period of time. In context of Marriott International, the PESTEL
analysis is going to be mentioned below:

Political factor: Political factor include government regulations, trade, tariff political,
stability as well as many more which imposes direct impact on success as well as growth of
the company in future period of time. Due to stability in political condition of country it
affect positively on growth of the company. The organization does not want to change their
policies procedures because of political instability occur in the country. On the other hand,
due to increase in tax rate, it decreases the profit of the company in future period of time and
also it demotivates them to perform their services in the better manner (SALEHIPUR, 2018).
Economical factor: Economic factor involves inflation and deflation, exchange rate
interest rate as well as so on which is necessary to consider for success and growth of
organization in future period of time. Due to increase in unemployment rate it decreases the
income level of individual person and individual spend less amount of money on taking the
services which is provided by the company. In context of Marriott International, they offer
high quality Services to its customer as per their needs and wants in order to satisfy them. It
helps them in increasing profitability as well as sales in future period of time. There is
different kind of services such as gym. Spa as well as bar facility to its customer for
increasing brand image and reputation of company in front of customer at marketplace.
Social factor: Social factor involves culture, values fashion trends, as well as
preferences of customer. Due to frequently change in the taste and preferences of consumer it
is not possible for Marriott International to change their policies in order to satisfy their
changing need in an effective manner. It imposes negative impact on profitability of
organization in future period of time. On the other hand they provide innovative and unique
services to its customer that help in increasing profitability in upcoming time period. It
increases brand image and reputation of hotel in front of customer at marketplace (Reilly,
2018).
Technological factor: Technology plays an important role for growth and
development of organization in upcoming period of time. It is essential for Marriott
international to implement latest technology for providing innovative and unique services to
its user Therefore; they implement advanced technology for satisfying changing need and
wants of consumer at marketplace. On the other hand, the execution of latest technology adds
extra cost for organization which negatively affects profitability of organization in future
period of time. It helps in boosting brand image and reputation of Marriott international in
front of buyer in the market.

Environmental factor: The environmental factor involves climatic as well as weather
condition that directly affects the firm in both positive and negative manner. Due to change in
climatic condition, it is difficult for Marriott international to manage services provided to its
customer in an effective manner. Therefore, it is vital for company to consider environmental
factor while making effective strategy for success and growth in upcoming period of time. On
the other hand, they provide eco-friendly services to its customer in order to increase standard
of living of individual person in society. They also contribute towards welfare of person
living in society which enforces positive impact on success as well as growth in future period
of time. It increases sales as well as profitability level in upcoming time period (Orantes-
Jiménez, Vázquez-Álvarez and Tejeida-Padilla, 2016).
Legal factor: Legal factor involves laws, rules, regulations as well as legislations
which enforces direct influences on success as well as growth of organization in future period
of time. The lawful act changed very frequently, therefore, it is not possible for Marriott
international to alter their policies which imposes negative impact on profitability of
organization during the period of time. Whereas, in context of Marriott international, they
follow all legal policies in order to operate business activities and functions in an effective
manner. It helps them in performing their work in better way for increasing performance
level of employees in future period of time (Madera, Dawson and Neal, 2017).
Therefore, from the above mentioned analysis, it has been assessed that it is necessary
for Marriott international to consider external environmental factor which impose both
positive and negative impact on growth as well as development of organization. In addition to
this, they also consider macro environment while making effective strategy, policies and
procedures for taking decision which will be beneficial in future period of time. Apart from
this, it also helps in boosting reputation as well as goodwill of Marriott international during
the period of time.
Analyse the internal environment and capabilities of a given hospitality organisation using
appropriate frameworks
It is important for every organisation to clearly identify and analyse its internal environment
for gaining the advantage with competitive world (Katou, 2016). There are various sectors
within the internal environment which are directly related to performance of hospitality in
context of Marriott international, it is performing its function globally where it is important
for an organisation to clearly identify its internal and micro environment where it easily deal

with different challenges. For this Marriott international use SWOT analysis, This analysis is
mentioned below:
SWOT analysis of Marriott international
SWOT analysis is a Framework which is used by Marriott international to identify its
internal factors. It includes identification of strengths weaknesses opportunities and threats of
the organisation. This all will facilitate organisation in making a proper action plan and
decision power stronger for future goals and objectives of organisation.
Strength
Global brand: Marriott international is operating at global level this also facilitate
organisation in making itself a global brand which attract large number of customers as well
as retain them for longer period of time as compared to its competitors.
Wide range of hotels: the next strength of Marriott international is that it is operating
at global level where it provides wide range of hotel rooms to its customer. Company have
different varieties of suite which help customers in choosing these sweets according to their
budget and requirements (Kaliappen and Hilman, 2017).
Train staff: hotel Marriott international always use proper training methods within the
organisation which facilitate it properly trade staff which can work effectively and increase
the productivity within the organisation. This also leads in reducing the wastage of efforts
and increase chances of success.
Weakness
Excessive expansion: the major weakness of Marriott international is that it mainly
focus on expansion this in a high cost of investment on different type of tourism destinations
as well as other cities which acting negatively on the revenue of the organisation because of
decline market share. Increasing infrastructure and market is not only think which required
for increasing revenue within the organisation.
High cost: Marriott international is suffering from high cost of production as well as
Service management this is because company is focusing on increasing the infrastructure as
well as facilities to customers. This increases of cost of company as well as decreases revenue
because of extra expenditure on improving the services then required (Ginesta, 2017).

Opportunities
Shift consumer behaviour: is a golden opportunity for hotel Marriott international
because it is operating within the tourism industry and there is continuous changes within the
consumer behaviour in this industry because they are not shifting towards luxury hotels.
Marriott international can develop hotel for this type of customer where it can also increase
its revenue.
Increment in global travel: due to changes in technological and global environment
there is continuous development in travel and tourism industry which also in favour of
Marriott hotel as it can increase its operation where it can I try different customers toward it's
hotels and infrastructures.
Threat:
Increase competition: Marriott hotel is trading in global market where there is
continuous improvement in competition. Disconnected insert for organisation because there
are various other organisation which are performing at global level as well as with better
infrastructure and investment in their hotels (Cheon and Cheon, 2016).
Economic recession: due to continuous changes within the policies of different
governments as well as endemic of covid-19 acted negatively on Marriott international
because it have to formally different policies .is also bring the economic recession within
economy because of long lasting lockdown and failure in operation of hotel industry.
From the above we can identify the internal environment have direct impact on
functions of Marriott hotels which must be clearly identified for formulating an effective
strategy.
Applying Porter’s Five Forces model, evaluate the competitive forces of a given market
sector for a hospitality organisation
It is important for every organisation to formulate effective strategy as well as identify
the different rules and forces within the markets which can help company in making its
decision stronger as well as planning for the future where it can easily identify different
stakeholders and act according to them. Marriott international used porter's five forces model
within it for identifying this factors as well as acting upon them in an efficient manner for
increasing its profitability and productivity.

Porter's five forces model on Marriott international
Threats of new entrant: Marriott international hotels performing at global level where
it requires a huge investment for building hotels and other facilities within this hotels and
restaurants. It is impossible for a new entrant to invest that use amount which is invested by
this hotel. This is a competitive advantage for the organisation where it can use new and
innovative products and services as well as launch different type of other facilities to
customer which can attract them easily as well as maintain them for longer period of time.
Power of suppliers: in context of Marriott hotel international bargaining power of its
supply is moderate factor this is because as this organisation is operating at global level there
are large number of supplier to the products which are required by hotel for easily providing
its services. Organisation policies and procedures where it can maintain particular suppliers
in the market where it can easily bargain from them and reduced the cost of organisation by
managing effective supply chain (Boella and Goss-Turner, 2019)
Power of buyers: buyers are always important part of every organisation and they
play important role in porter's five force model also. This is because tourism and travel
industry is continuously increasing where there is large number of buyers within this industry
for the services offered by hotels like Marriott international. In context of Marriott
international, there is huge number of buyers within the market of the products and services
offered by this hotel make it moderate factor for the hotel because some of the buyers have
high powers. These are those buyers who belong from high class income. This can reduce
the powers of organisation. For this organisation perform different functions which will help
it in decreasing the power of buyers as an increasing power of organisation.
Threats of substitute: in hotel industry every organisation is selling same type of
product to its customers. All industries are providing same type of services to their customers
which satisfy their needs and wants for a limited time period. So there are large number of
substitute within the hospitality industry where Marriott international is trading. For this
organisation have to adopt the innovation and improvements strategy with its services where
it can provide highly qualified and effective services to its customer. Attract large number of
customer as well as provide better opportunities to organisation in growing and expanding its
business operation.

Rivalry in existing market: it is the last factor in porter's five forces where it include
the rivalry among the existing player in the industry. This factor is directly related to the
revenue of the organisation as high rivalry will impact on negative revenue and low rivalry
will increase the prices of services offered by the organisation and improve the revenue.in
context of Marriott hotel there are various number of competitors in the market but the hotel
is operating at larger level it is impossible for kids competition to make a perfect rivalry
within this market (Alegre. and Berbegal-Mirabent, 2016).
From the above analysis it can be identified that hotel Marriott international it can use
porters five force model to identify different factors and get the competitive advantage within
the market where it can increase its market share profitability and productivity within the
different department by implementing proper structure and using the proper strategies
according to these models.
PART2
Strategic marketing plan by using different theories and frameworks
Strategic planning
Strategic planning can be defined as a set of strategies and activities which have to be
done by the organisation to attain its goals and objective within the target market. Strategy is
also used by the organisation to increase their market share and profitability within the
business environment. Hotel Marriott international also uses different kind of strategies and
strategic planning for its different operations.
Aim: establish a global brand image of the hotel as well as infrastructure of hotel in
every tourism destination.
Vision: to provide best services to their customers for increasing the satisfaction as
well as providing good quality of services to them.
Objective:
 To increase market share by 30% within one year
 Build and start three new branches of total worldwide in next two year.
 To increase total revenue by 20% within the financial year of 2020-21

Marriott international always use ANSOFF matrix to formulate a proper strategy
which can use for a strategic planning as well as improving the position of the organisation
within the current market as well as for future perspective.
ANSOFF matrix
It is that Framework which can be used by the organisation to identify different strategies and
increase its market share with in the market by using four type of strategies which are
discussed below:
Market penetration: it is those strategies which include innovation within the existing
product of the organisation within existing market. This strategy is directly related to
increasing the sale of these products within the existing market where companies already
trading by the use of innovative methods. In context of Marriott hotel international, it is also
dealing in various markets in a global level. Organisation can develop its existing
infrastructure in existing markets, where it can provide quality services to its customers
(Akindayomi, Amin and Hassan, 2020).
Product development: in this strategy company introduced new product within the
existing market in context of Marriott hotel international Inn operating at big level where it is
impossible for organisation to introduce new products in the market because in hospitality
industry use cost to introduce new product. Improve its current products but it does not
impact on product development.
Market development: industrial company have its main focus on entering in the new
market with its existing product. in current time hotel Marriott is following the strategy
because it regularly expanding its operations to different cities of global world. This huge
cost of investment as well as resources of the organisation because it have to build a proper
infrastructure and developer facilities related to working within these industries.
Diversification: it is the most risky strategy which can be adopted by the organisation
where it has to launch a new product within a new market. This strategy is riskier because
company have to launch a new product in New market where the chances of failure are more.
it also use investment on your product which cannot be affordable to Marriott international.
After clearly exam in the matrix it can be concluded that Marriott hotel should use
market penetration strategy where it can reduce its cost as well as increase its market by

expanding its current product to the market where I can offer its regular services for
satisfying the needs of consumers.
Porter generic strategy
It can be described as a strategy which is adopted by the organisation to achieve the
competitive advantage in the market where organisation can use for free type of strategies
which are lower cost differentiation in product and focus. This can be used by marriott hotel
to achieve the competitive advantage in the market where it can use during the cost than its
competitors or by adopting differentiate ltd product so that it can easily value the consumer
demand at higher prices. Focus strategy is related to choosing one of either lower cost for
differentiation within the firm so that it can offer the product across various segments for
achieving objectives. For the discussion on the strategy relation to Marriott is discussed
below:
Cost efficiency: it is a basic strategy within the porter's generic strategies which can
be used by the organisation. Include minimising the cost of production as well as other costs
within the form so that it can achieve advantage of low prices of the product in relation to its
competitors. In context of hotel Marriott, operating in in hospitality industry where
management of cost is important for the firm to achieve as within the market. For improving
the cost of the organisation without impacting on the quality of the production services within
Marriott, hotel can use effective management techniques which help in utilising the resources
in more efficient way as well as using it services at larger level for bringing the overall cost at
marginal level.
Differentiation: strategy of differentiation organisation can use manufacture and
provide a unique product mix to its customers which are completely different from the
product mix of competitors. In relation to hotel Marriott, news different kind of
differentiation techniques likes development the existing infrastructure of different hotel and
their branches.
Focus: focus strategies are related to focusing on a particular strategy related to
efficiency product differentiation. Another strategy organisation use a particular strategy so
that it can achieve goals and objectives in an appropriate way.

CONCLUSION
From the above mentioned report, it has been analysed that it is necessary for business
organization to make effective strategy in order to achieve goal as well as objective in future
period of time. In addition to this, in this assignment, the PESTEL is used for assessing
external environmental factor which imposes direct influences on productivity as well as
performance level of organization during the period of time. Apart from this, they used
SWOT and VRIO analysis for identifying internal environmental factor which is necessary
for success as well as growth of company. And also show Porter five force models for
assessing competition in order to gain competitive advantage over rival firm at marketplace.
At last the organization focuses on ANSOFF matrix for taking a strategic decision in future
period of time and also make strategic management plan for implementation of business
strategy in an effective manner. They also discuss regarding vision, mission, and objectives
as well as values followed by organization in order to take effective decision in future period
of time.

REFERENCES
Books and Journals
Akindayomi, A., Amin, M.R. and Hassan, N., 2020. Business Strategy and CEO
Compensation: Evidence From the Hospitality and Tourism Industry. Available at
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Alegre, I. and Berbegal-Mirabent, J., 2016. Social innovation success factors: hospitality and
tourism social enterprises. International Journal of Contemporary Hospitality
Management.
Boella, M.J. and Goss-Turner, S., 2019. Human resource management in the hospitality
industry: A guide to best practice. Routledge.
Cheon, G. and Cheon, Y., 2016. A Study of the Relationships among Hospitality, Corporate
Social Responsibility, Quality & Price Value, and Customer Satisfaction: Focused
on the Five Star Hotel. International Journal of u-and e-Service, Science and
Technology, 9(10), pp.209-222.
Ginesta, X., 2017. The business of stadia: Maximizing the use of Spanish football
venues. Tourism and Hospitality Research, 17(4), pp.411-423.
Kaliappen, N. and Hilman, H., 2017. Competitive strategies, market orientation types and
innovation strategies: finding the strategic fit. World Journal of Entrepreneurship,
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Katou, A.A., 2016. Human resource management and performance in the hospitality industry:
methodological issues. In Project Management: Concepts, Methodologies, Tools,
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Madera, J.M., Dawson, M. and Neal, J.A., 2017. Managers’ psychological diversity climate
and fairness: The utility and importance of diversity management in the hospitality
industry. Journal of Human Resources in Hospitality & Tourism, 16(3), pp.288-307.
Orantes-Jiménez, S.D., Vázquez-Álvarez, G. and Tejeida-Padilla, R., 2016, January.
Customer relationship management and hospitality industry. In IMSCI 2016-10th
International Multi-Conference on Society, Cybernetics and Informatics,
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Reilly, P., 2018. Building customer centricity in the hospitality sector: the role of talent
management. Worldwide Hospitality and Tourism Themes.
SALEHIPUR, M., 2018. BUSINESS STRATEGY FORMULATION OF HOSPITALITY
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CHAIN HOTELS.
Sowanber, V., Ramkissoon, H. and Mavondo, F., 2018. Impact of sustainability practices on
hospitality consumers' behaviors and attitudes: the case of LUX* Resorts & Hotels.
In The Routledge Handbook of Hospitality Marketing (pp. 384-396). Routledge.