Hospitality Business Strategy

Hospitality Business
Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART A...........................................................................................................................................3
Applying different frameworks for analyse the impact and influence of the macro environment
on Hilton Hotel and its strategies.................................................................................................3
Examining the internal environment and capabilities of a Hilton Hotel with the help of SWOT
and VRIO Model.........................................................................................................................5
Applying Porter’s Five Forces model for evaluating the competitive forces of a the respective
market sector of Hilton Hotel......................................................................................................7
PART B............................................................................................................................................8
Applying Ansoff Matrix for interpret and devise strategic planning for Hilton Hotel,...............8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Business strategy is referred to a course of action and decisions made in favour of a
respective aim or the ultimate objective to fulfil. Business strategy basically guides the
entrepreneurs or business owners for completing particular tasks attaining what is needed to be
acquired. 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 provides accommodation and food&beverages services to
customers that are two major sectors of hospitality industry along with travel&tourism and
recreation. The company is a global organisation serving in worldwide locations but it locate in
Virginia, United States. The report covers a thorough macro factor analysis where PESTLE
models is used along with internal environment and capabilities of company are examined as
well with the help of SWOT and VRIO models. Moreover, company is competitive forces are
also evaluated for suggesting one specific strategy with the help of Ansoff Matrix and a strategic
management plan is provided at the end.
PART A
Applying different frameworks for analyse the impact and influence of the macro environment
on Hilton Hotel 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 (Presenza and Petruzzelli, 2019). 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
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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
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 (Guzzo, Abbott and Madera, 2020).
 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
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