Hospitality Business Strategy

Hospitality Business
Strategy

Table of Content
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Applying appropriate frameworks, analyse the impact and influence of the macro
environment on a given hospitality organisation and its strategies.............................................1
TASK 2............................................................................................................................................3
P2. Analyse the internal environment and capabilities of a given hospitality organisation using
appropriate frameworks...............................................................................................................3
TASK 3............................................................................................................................................5
P3. Applying Porter’s Five Forces model, evaluate the competitive forces of a given market
sector for a hospitality organisation.............................................................................................5
TASK 4............................................................................................................................................6
P4. Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given hospitality organisation.............................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality industry is a broad category of business and a largest field in the service industry
included several of services and businesses. Hospitality sector involves services like lodging,
accommodation, food and beverages, event planning, travel and tourism, theme parks etc.
(Gursoy, 2017). Along with it the business is involved in it are hotels, motels, restaurants, bars,
theme gardens etc. The report is acknowledging several aspects of hospitality and development
of business strategy for which Hilton hotels and resorts is selected. Hilton hotels is a global
brand providing full service hotels and resorts which was founded in 1919 by Conrad Nicholson
Hilton. The company is a global organisation serving in worldwide locations but it water in
Virginia, United States. The report covers a thorough macro factor analysis along with
identifying internal environment and capabilities of company with the help of SWOT and VRIO
models. Moreover, company is competitive forces are also evaluated and a strategic management
plan is provided at the end.
TASK 1
P1. Applying appropriate frameworks, analyse the impact and influence of the macro
environment on a given hospitality organisation and its strategies.
In general macro environment is basically referring to those factors and features that are
existing in the market and in the industry affecting the company externally either in positive or
negative manner. The Macro environment includes trends in the GDP, inflation, monetary and
fiscal policies, employment etc. In order to analyse the impact and influence of macro
environment and all the respective macro factors that belongs to the hospitality industry in the
united kingdoms and which affects Hilton hotels in either positive or negative ways a framework
is used that is PESTEL analysis. This is a strategic tool which helps the company to understand
and analyse the external factors and their potential effects on the long-term growth and success
of business in respective marketplace. The PESTLE analysis of Hilton Hotel for the UK market
in particular is as follows:
 Political factor refers to the stability and consistency of a political party and their policies
which are issued in relation for smooth and ethical functioning of the business in the
particular region and country (Aithal and Aithal, 2016). Currently the United Kingdom is
facing in flexibility and non-predictive behaviour of the political party due to two specific
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reasons that is recent initialisation of BREXIT and the outbreak of the deadliest disease
coronavirus. Both are the reasons behind an unstable political environment in the United
Kingdom which is negatively affecting not only the hospitality industry but all the
respective businesses and therefore political environment is not in favour of Hilton
Hotels.
 Economic factors and economic downturn leads to declining in overseas travel and
tourism of individuals along with National visitors as well that directly affects and
influences the turnover and profitability of a hospitality business and the hospitality
industry an adverse manners. The economic environment of the United Kingdom is also
not stable because the country is in lockdown from few months from keeping people save
from coronavirus. This is negatively impacting the whole economy and most importantly
the hospitality industry and Hilton hotels because of its long term impacts on the industry
as well as on the organisation (Roma, Panniello and Nigro, 2019).
 Social element of the Macro environment is refers and concerned with the population and
the social trends that are flourishing in the market and in the hospitality industry. The
United Kingdom is a market which incorporates a numerous International well known
and a highly influential brand which brings a advantage for Hilton Hotel as well because
of the strong and attractive goodwill and brand image of the organisation. Also the people
of UK are highly attracted towards luxury services and hospitality which also place a
positive path for the company. The negative impact of the social environment which is
going to affect Hilton hotel for the longer period is the after effects of coronavirus as now
people will ignore travelling from overseas or from National borders and which hinders
directly on the revenues and growth of company.
 Technological element refers to the regular update and advancement taking place in the
technological and digital sector. This is a positive macro factor that it is actually in favour
of the company because through digital platforms and other technological devices it
becomes easy for Hilton hotel to be connected with the world and more specifically with
their existing customers (Okumus and et. al., 2017). The digitalization offers company an
opportunity to make use of social platforms to conduct marketing activities in very less
investment and also in very small time period. Along with it also influences the revenue
of the company because now hospitality industry is making use of online platforms and
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