Unit 41 - Hospitality Business Strategy

Hospitality Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
P1 Using different frameworks examine the impact of macro environment..........................3
P2 Evaluate internal environment and capabilities of enterprises..........................................4
P3 Use Porter Five force model in relevance with organisation............................................7
PART 2............................................................................................................................................8
P4 Apply concept/ frameworks for strategic planning in relevance with organisation..........8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
REFERENCES..............................................................................................................................11
BOOKS & JOURNAL.........................................................................................................11

INTRODUCTION
A business strategy is described as a process in which integration of taking effective
decision and actions by organisation for achieving goal in order to achieve competitive position
at marketplace. It describes what required to be done for achieving goal and objective, which
also assists manager to take effective decision in relation to recruiting as well as assigning
resources. This report is carried upon Marriott. It is the American international diversified
hospitality organisation which provides wide variety of services to its customer in order to satisfy
them. This company was founded by Bill Marriott in the year of 1927. In this report, the
PESTEL is used for assessing external environment which enforces direct influence on
performance of organisation. In addition to this, VRIO and SWOT are adopted for identifying
internal capabilities of firm. And Porter five force models is used for achieving competitive
advantage over rival firm in the market. At last, Ansoff is adopted for strategic direction for
future growth of organisation in an effective manner (Ahmad, Bakar and Ahmad, 2018). A
business strategy provides direction to organisation for performing different activities and
functions in an appropriate way.
Overview of company: Marriott is the American international diversified hospitality
organisation which provides wide variety of services to its customer in order to satisfy them.
This company was founded by Bill Marriott in the year of 1927.
Vision: The vision of Marriott is to expand their business across world.
Mission: The mission of organisation is to offer superior quality services to its customer in
order to satisfy them. It increases profit and sales in future period of time.
Objective: The organisation focuses on increasing sales by 20% in upcoming 6 months.
PART 1
P1 Using different frameworks examine the impact of macro environment
It is necessary to build effective strategy for increasing success and growth of business
organisation in future period of time. In addition to this, PESTEL Analysis is adopted for
assessing external environment which imposes direct impact on productivity as well as
profitability of business organisation that is mentioned below:
PESTEL Analysis

Political factor: Political factor involves government regulation, terrorism, laws and
many more. Due to increase in terrorist attack as well as military grievances that interrupt air
travel internationally this imposes negative impact on success and growth of organisation. On the
other hand, due to follow government regulation by Marriott hotel, they do not need to change in
any policies which are beneficial for company in future period of time (Prud’homme and
Raymond, 2016).
Economical Factor: It includes interest rate, interest rate, inflation rate as well as deflation
rate and so on. Due to slowing down the economic growth in china and economic turmoil occurs
in Europe. This imposes negative impact on stock market and decreases income of individual
person. On the other hand, the organisation provides high quality services to its customer that
increases sales and profit in future period of time (Alegre and Berbegal-Mirabent, 2016).
Social Factor: It involves age, lifestyle, and fashion as well as market trends which
enforces direct impact in growth of company. Due to change in need of customer, Marriott
focuses on satisfying their changing requirements that increases experience level of customer at
marketplace. Whereas, sometime the change in need of customer very frequently, so it is not
possible for organisation to change policies as per their need so it decreases sales and erode
profit.
Technological Factor: Technology plays an important role in success and growth of
business in hospitality sector. It is necessary to implement advanced technology for providing
innovative services to its customer and replacing it’s by traditional services in an effective
manner. And, the execution of latest technology is very costly; it adds extra cost to the services
provided by company imposes adverse impact on performance level of company.
Environmental Factor: It involves climatic and weather condition which enforces both
favourable and adverse impact on growth of organisation. Due to increase in fuel prices, it
enhances the cost of travel, thus it reduces demand for staying in hotel which decrease profit of
Marriott in hospitality sector. On the other hand, they provide eco- friendly services to its
customer which increase standard of living of people of society.
Legal Factor: Legal factor involves consumer protection law, legislation and many
more. Due to increase in labour cost, it adds addition cost to the services provided by firm which
erodes sales as well as profitability level in future period of time. And, due to follow legal