Hospitality Business Strategy: Impact of Macro Environment, Internal Capabilities, and Porter's Five Forces

This report explores the impact of macro environment, evaluates the internal capabilities of Accor Hotels, and analyzes the competitive forces in the hospitality industry using frameworks like PESTEL analysis, SWOT analysis, VRIO model, and Porter's Five Forces. It provides insights into the strategic planning and future growth of the organization.

Hospitality Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Using different frameworks examine the impact of macro environment..........................3
TASK 2............................................................................................................................................5
P2 Evaluate internal environment and capabilities of enterprises..........................................5
TASK 3............................................................................................................................................7
P3 Use Porter Five force model in relevance with organisation............................................7
TASK 4............................................................................................................................................9
P4 Apply concept/ frameworks for strategic planning in relevance with organisation..........9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
In today's business world, hospitality industry is considered as one of the crucial sector
that make are both positive and negative impact over economy of a nation. Every single Hotel
chain is looking forward to develop an effective strategic plan in order to gain competitive
advantages and also to sustain in the market for a longer period of time. In present context, it has
become vital for them to develop and effective strategic plan which portrays what required to be
accomplished for accomplishing objective and goal, which likewise helps director to take
compelling choice corresponding to selecting the befitting approaches for business (Akindayomi,
Amin and Hassan, 2020). This report is conveyed upon Accor Hotels, images of famous French
multinational Hotel chain that manage, owns and franchise a n number of hotels in all over the
world. On the other hand, report will be considering PESTEL analysis for evaluating outside
condition which implements direct impact on execution of association. Including this, VRIO
along with SWOT have also been performed for recognizing inner abilities of firm. Also, Porter
five forces model is also implemented on the organisation in order to analyse the competition at
market place. Finally, Ansoff Matrix is embraced for vital bearing for future development of
association in a compelling way.
TASK 1
P1 Using different frameworks examine the impact of macro environment
There are arrange of frameworks that are available in today's business would in order to
analyse the external environment. In present context, PESTLE Analysis is embraced for
surveying outer condition which forces direct effect on efficiency just as productivity of Accor
Hotels that is referenced beneath:
PESTEL Analysis
Political factor: Primal factor which stays enclosed with ample number of elements like
government guideline, laws and some more. Because of increment in fear based oppressor
assault just as military complaints that interfere with air travel globally this forces negative effect
on progress and development of association (Altin and et. al., 2018). Since, Accor hotels is
already dealing at international level where it has followed approximately all the guidelines
given by different governments of various Nations therefore, they don't have to change in any
arrangements which are valuable for organization in future timeframe.

Economical Factor: It incorporates loan fee, financing cost, expansion rate just as emptying
rate, etc. Because of hindering the financial development in china and monetary strife happens in
Europe. This forces antagonistic effect on financial exchange and diminishes salary of distinct
individual. Then again, the association offers top notch types of assistance to its client that
expands deals and benefit in future timeframe.
Social Factor: This factor consists of various elements like living standards, trends, and
fashion along with the style just as market patterns which upholds direct effect in development of
organization. Because of progress needing client, Accor Hotels around fulfilling their changing
prerequisites that builds experience level of client at commercial centre. Though, at some point
the adjustment needing client as often as possible, so it isn't feasible for association to change
arrangements according to their need so it diminishes deals and disintegrate benefit (Bratton and
Watson, 2018).
Technological Factor: Over the years, technology assumes a significant job in progress
and development of business in cordiality division. It is important to execute cutting edge
innovation for offering creative types of assistance to its client and supplanting it's by
conventional administrations in a successful way. On the other hand, the execution of most
recent innovation consists of huge cost implementation; it adds additional expense to the
administrations gave by organization forces unfavourable effect on execution level of Accor
Hotels.
Environmental Factor: This specifically includes climate/weather condition which
implements both good and antagonistic effect on development of association. Because of
increment in fuel costs, it improves the expense of movement, subsequently it diminishes interest
for remaining in lodging which abatement benefit of Accor in hospitality division. Then again,
they give eco-accommodating administrations to its client which increment overall living
standards of individuals of society (González-Rodríguez and et. al., 2018).
Legal Factor: Legitimate factor includes purchaser security law, enactment and some
more. Because of increment in labour cost, it adds extra cost to the administrations gave by firm
which dissolves deals just as benefit level in future timeframe. Om the other hand, due to follow
lawful structure by Accor, it builds brand worth and notoriety of organization before client at
commercial centre. Along these lines, it supports deals and benefit in future timeframe.

Accordingly, it has been dissected that it is vital to consider large scale natural factor so
as to expand deals in future timeframe. Furthermore, it additionally helps Accor in expanding
experience level of client in up and also it helps them in giving ample number of competitive
advantages as well.
TASK 2
P2 Evaluate internal environment and capabilities of enterprises
SWOT Analysis
STRENGTH WEAKNESS
Accor is considered to be only the largest
hotel chain within Europe, which is said to be
strength for the hotel. Luxurious experience is
given by Accor hotels to its clients which has
helped them in improvising customer loyalty
(Konovalova and et. al., 2018).
Due to increment in rivalry level, it
diminishes benefit of firm can be considered
as soft spot for firm. Another weakness of
Accor is that, they rely a lot upon European
market which diminishes deals of
organization in eventual fate of time.
OPPORTUNITIES THREAT
The significant preferred position for Accor is
to extending global travel which gives them
increasingly more income. Moreover, because
of improve Alibaba organization which helps
Accor in boosting their business in Chinese
and other Asian markets as well.
Because of hindering the financial
development in all over the world due to
Covid-19 (Novel Corona Virus) can be taken
into consideration as a significant danger so
as to dissolve productivity level at
commercial centre. Additionally, so as to
expanding level of rivalry from new
participants, it forces unfavourable impact on
development of organization.
So, it can clearly be said that with the help of SWOT analysis, Accor Hotels can easily
get the thorough data, style, changes just as patterns at commercial centre. This system helps
with surveying level of execution at more extensive level.
VRIO Model: This model is taken into consideration for evaluating different range of
opportunities or the befitting strategies that can be utilised by Accor in a powerful way (Li and

Singal, 2019). Therefore, VRIO gives far reaching picture which helps in taking powerful choice
for progress and development of organization in friendliness area that will be referenced beneath:
Valuable: Values are said to be the assets which offer some benefit to its client for
expanding achievement and development of business association like Accor Hotels. It implies, it
is important to utilize assets so as to amplify benefit. Therefore, it is imperative to focus on those
significant assets which helps in expanding experience level of client at commercial centre. And
furthermore, these important assets help with achieving objective just as goal in specified
timeframe.
Rare: This element incorporates those assets which is exceptional and explicit for
business association. The uncommon assets are those which are not duplicated by its serious firm
in simple way. It helps in extending business over the world inside accommodation part. In
setting of Accor, they underlined on their rich settlement administrations which is given to its
client so as to increase upper hand over opponent firm at commercial centre. It likewise helps in
accomplishing driving situation over the world (Metaxas, Chatzoglou and Koulouriotis, 2019).
Inimitable: In relation to Accor, the able staffs offer successful types of assistance to its
client according to their necessities which are not imitable by rivalry firm as considered as a
remarkable for association. They give successful instructional meeting to its representatives so as
to expand their insight with respect to administrations gave by association. And furthermore their
gracefully chain arrange is likewise not replicated by another firm which will be advantageous
for taking powerful choice in future timeframe.
Organised: It is vital for Accor to perform various exercises and capacities in better
manner. Moreover, the firm spotlights on embracing different structures, system in a compelling
way for executing business works in a suitable manner. In reference of Accor, their staffs keep
up great connection with its client so as to hold them for a more drawn out timeframe. Their
principle centre is to make positive relationship with its client for expanding brand worth and
notoriety of organization before client at commercial centre. And furthermore, it helps in
improving experience level of client for expanding benefit and deals in up and coming timeframe
(Njoroge, Anderson and Mbura, 2019).
With the help of above information both of the tools SWOT along with VRIO are
specifically being utilised by Accor for evaluating market patterns, design at commercial centre.
In this manner, it has been expressed that, it is important to consider interior ecological factor

which forces direct impacts on progress and development of association. Likewise, Accor
receives the two instruments VRIO along with the SWOT for evaluating their development over
the world.
TASK 3
P3 Use Porter Five force model in relevance with organisation
Most of the business organisations take into consideration of porter's five forces model
because it specifically helps in analysing the competitive advantages in the same way, Accor
hotels is also looking forward to utilise this model for accomplishing upper hand over adversary
firm at commercial centre (Okumus and et. al., 2019). It additionally embraced to survey the
opposition level which is defied by organization inside competitive business area and it forces
direct effect on development and advancement of association. In relation to Accor hotels, porter's
five forces model is presented below:
Buying power of customers: In present context, power of customers within hospitality
industry is specifically moderate in nature. In setting of Accor, they accomplish solid brand
position in the market that helps in drawing in huge number of client at commercial centre. They
offer imaginative types of assistance to its purchaser according to their necessities, in this
manner it help with expanding brand worth and notoriety of organization before client at
commercial centre. In causes them in expanding upper hand over opponent firm at commercial
centre. Likewise, they centre on receiving imaginative styles so as to give unrivalled quality
offices like spas, bars so as to pull in adequate of client in the market. In this manner, it has been
expressed that it is difficult for firm to take passage in business hospitality industry at
international level. Also, the primary motivation behind Accor is to hold client for longer
timeframe (Papaioannou and et. al., 2018).
Power of the suppliers: Supplier’s power within hospitality industry is also moderate as
it relies on various circumstances and conditions. Hence, the Accor hotels around actualizing
cutting edge innovation for holding client for longer timeframe. They offer imaginative offices to
its client such exercise centre, spa just as bar offices according to their prerequisites with the goal
that client don't switch for extra administrations gave by its serious firm. And furthermore, it
expands deals just as benefit level in future timeframe so as to build experience level of client at
commercial centre. Their principle reason for existing is to fulfil client by their compelling

administrations gave during the timeframe for accomplishing objective and goal in specified
timeframe. Furthermore, it additionally help with increasing upper hand over adversary firm at
commercial centre (Peters and Kallmuenzer, 2018).
Threat of New Entrants: Because of increment in development of hotel service industry,
there are different firms who take entrance in this area. There are different open doors in this
industry identified with the travel industry just as movement which draw in firm to take entrance
in the different sectors of hospitality industry. Away with this, there are various financial
downturns occurred in this area yet at the same time it is kept developing during the timeframe.
Consequently, it has been expressed that, because of dispatch their business in friendliness part,
it is crucial for association to have huge measure of capital so as to work exercises and elements
of association in a powerful way. Along these lines, the danger of new participants is low within
the hospitality segment. For executing their activities in this industry, the new passageway need
enormous measure of reserve for expanding accomplishment just as development of organization
in future timeframe. The Accor maintain their business at worldwide level which is the quality
for association.
Threat of Substitute products: Marriott, Ibis, Hilton along with Hyatt and a lot more are
said to be some of the crucial rivals of Accor Hotels who offer comparative types of assistance to
its client. Along these lines, it expands plausibility of exchanging by client for administrations of
its serious firm. Be that as it may, the Accor work their business at worldwide level so there is
the less odds of exchanging their administrations by buyers (Revathi and Aithal, 2018). They
offer top notch administrations at moderate expense so as to increase upper hand over opponent
firm at commercial centre.
Competitive rivalry: Competitive rivalry for Accor Hotels in International hospitality
market is specifically high because of the business organisations like Marriott, image and many
more have also grabbed a good position within the market. There are different organizations in
this industry that is considered as huge marked chain of travel and tourism industry. In this
manner, the association focuses around offering types of accommodation related services
according to their need and needs so as to increase upper hand over adversary firm at commercial
centre.

From the previously mentioned procedures, it has been investigated that Accor receive
serious system. Along with this, they centre on offering inventive types of assistance to its client
so as to increase serious advantages over opponent firm at commercial centre.
TASK 4
P4 Apply concept/ frameworks for strategic planning in relevance with organisation
Over the years, strategic planning is significant for development and advancement of
association at expansive level. Accordingly, so as to make successful procedures Accor embraces
Ansoff framework for giving key course to development in future timespan. There are four sorts
which is incorporated that is referenced underneath:
Market Penetration: This is considered to be one of the crucial strategy which helps an
association in centring on selling existing item in existing business sector. Thus, the Accor inn
centres on giving food, settlement, bars offices, gymnasium to its client. They offer their
administrations in imaginative way for expanding benefit and deals in future timeframe. Also,
their principle object is to make acceptable relationship with its client by satisfying their need
and needs in a compelling way (Roma, Panniello and Nigro, 2019).
Market development: Considering this strategy, the association centres around giving
existing items in new market. For this reason, they embrace different limited time procedures, for
example, commercial, exposure just as sponsorship so as to present their accessible items in
creative market. They need to extend their business at worldwide level for boosting benefit in
future timeframe.
Product development: At the time when an association sells their creative item in existing
business sector. Along these lines, for this reason, Accor hotels around offering imaginative
types of assistance, for example, spa, bar counters to its client so as to fulfil their desire. It
expands deals just as gainfulness level in future timeframe.
Diversification: This is considered to be the strategy where a company specifically offers
customers with new items in new market for drawing in huge number of client towards items and
administrations which is given by firm.
In present context, in order to expand business and to sustain in the market of hospitality industry
considering all the trends it will be required by Accor hotels to take into consideration of
diversification strategy. It will help organisation to grab the whole new market at international

level with the help of new services offered by them. However, it is risky but once an organisation
analysis the whole market it delivers high range of benefits to the company in much effective and
efficient manner.
Strategic management plan
The strategic management plan is basically a process or a procedure which is utilised by
organisations for communicating the goals and objectives to the parties associated with the entity
in order to attain these targets in the given time frame. In relation with Accor, the hospitality
company have adopted diversification strategy for providing innovative offerings and more
specifically services to the consumers in an entirely new market with the objective of attaining
competitive advantage over competitors.
Vision: The vision of Accor highlights the direction of the entity towards expansion on
an international level and on a very large scale.
Mission: The mission of organisation is focusing towards providing the topmost and
superior Quality services to the guests for utter most and curated experience of this day which
the hospitality provider and also to increase the earnings and profit in the foreseeable future.
Strategies: Diversification strategy is adopted by Accor, for rendering most creative
services to the guest and establishing their higher position in the competitive market along with
gaining a competitive edge (Sánchez-Franco, Navarro-García and Rondán-Cataluña, 2019).
Implementation: the diversification strategy is implemented by Accor, in the most
productive and proactively where the entity first conducted a thorough market research in order
to identify an entirely new product or a service which is needed by the people and which is
actually not present in the respective New Market where the hospitality provider is planning to
expand their operations.
Evaluation: The evaluation activity plays a vital role for Accor as to assess their actual
performances with their desired one for the foremost motive of taking appropriate decisions in
order to make any changes if required or to evolve for acquiring all the benefits for success in
growth in foreseeable future. The company can make use of KPI’S for assessing their current
performance with their performance indicators and bring an appropriate outcome.
CONCLUSION
From above information, it is summarised that it is important to make viable system for
progress and development of association. Away with this, the association centres around

surveying systems which is embraced by its adversary firm so as to increase number of
competitive advantages in order to sustain within the market for a longer period of time. Which
company has conducted market research where they have need use of PESTEL analysis for
understanding the impact of macro factors on the business. Along with it porter's five forces
model is also used for analysing and understanding the impact of competitive forces over the
performance of company. Once the market research is completed then and appropriate
competitive strategies adopted that are of diversification according to which the company is just
to move into an entirely new market there they offer a unique service to the customers which do
not exist in the marketplace. According to the strategy adopted a systematic strategic
management plan is developed highlighting the vision and mission statement of company
according to the strategy adopted and evaluation process is undertaken for identifying the
performance level.

REFERENCES
Books and Journals
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