Strategic Analysis Report: Bluebell Lodge Hospitality Business

This report offers a comprehensive strategic analysis of Bluebell Lodge, a UK-based resort, examining its business strategies within the hospitality industry. The report begins with a stakeholder analysis, identifying internal and external influences on the organization. It then employs a PESTLE analysis to assess the external factors impacting the resort's strategies, followed by an internal analysis using SWOT and McKinsey's 7s framework to evaluate its strengths, weaknesses, opportunities, and threats, as well as its internal capabilities. Furthermore, the report evaluates competitive forces using Porter's Five Forces model. The second part of the report focuses on strategic directions, recommending growth platforms and strategies through the application of Ansoff's Product/Market Growth Matrix. It concludes with an interpretation and development of strategic planning for Bluebell Lodge, explaining the strategic planning process and outlining corporate, business, and tactical strategic priorities and objectives.

Unit 41- Hospitality Business Strategy
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Table of Contents
Introduction......................................................................................................................................3
Part A:..............................................................................................................................................4
A Stakeholders’ analysis of the group of people or organizations who might have an influence
on, or be influenced by, the activities of your chosen organisation................................................4
A PESTLE analysis of the external factors that influence the strategies of your chosen
organisation......................................................................................................................................6
Analysis of the internal environment and capabilities of your chosen organisation using the
SWOT analysis, the VRIO Framework or McKinsey’s 7s Framework..........................................8
Evaluation of the competitive forces of a given market sector for your chosen organisation using
Porter’s Five Forces model............................................................................................................10
Part B:............................................................................................................................................11
Evaluate the different types of strategic directions available to the organisation. The evaluation
may include using any one of the following:.................................................................................11
Recommend the most appropriate growth platform and strategies through the application of
Ansoff’s Product/Market Growth Matrix......................................................................................12
Applying a range of theories, concepts and models, interpret and devise strategic planning for a
given hospitality organisation. This will involve an explanation of the strategic planning process
in your chosen organisation, and an explanation of the corporate, business and tactical strategic
priorities and objectives.................................................................................................................14
Conclusions:..................................................................................................................................16
References......................................................................................................................................17
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Introduction
Hospitality and Tourist industries is the service industry, which provides accommodation service
to the people. Different hospitality and tourist Industry Company provide different services along
with accommodation so that it is very popular in the world. Hospitality and tourist industries are
restaurant, hotel resort etc. which main work to provide service with a view to earning profit.
Bluebell Lodge is a resort company in United Kingdom. Which is a small medium industry. It
provides accommodation and food services to the people. The company’s main target audience
are family because the resort is formulated according to the preference of the family. In order to
generate it leads and profit the company will take many business strategies. This report will
cover all the business strategy of the company which includes Ansoff’s matrix growth, PESTLE
analysis, making strategies to introduce indoor games, stakeholder’s influence etc.
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Part A:
A Stakeholders’ analysis of the group of people or organizations
who might have an influence on, or be influenced by, the activities of
your chosen organisation.
Bluebell Lodge is a Resort in UK. It is a small medium company. Many stakeholders are
associated with this company. Stakeholder have great influence over the company’s activities.
Basically different organization, group pf people, individual or employees who have interest on
company that means they will have some benefits from the company is called stake holders
(Andriotis, 2017). Organization has to take any sort of decision considering about the
stakeholders. Stakeholders are employees, management, board of directors, government, trade
union and customers etc. Bluebell Lodge Company’ stakeholder have some extent of interest and
power according to their position in the organization.
Stakeholder analysis: Stakeholder can be divided in to two types one is internal stakeholder and
another is external stakeholders. Internal stakeholders are those who are the members of the
organization and have interest in the organization. External stakeholders are those who are not
the members of the organization but have the power and interest in Bluebell Lodge (Jain and
Bowman, 2016). Stakeholder can be
Figure: Stakeholders matrix
Source: (Andriotis, 2017)
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Categorized in four ways which are Key Players, Subject, Crowd and Content setters. These four
types of stakeholders will be discussed in the below:
Key Player: management body, board of directors etc. are the key player of the organization
because they have huge power over any organization’s business. They basically decided about
the company’s budget decision, project selection and etc. and these are the people who will be
benefited the most from the company so their interest on the company is also high. MCNAIR
will take the command from this group of people before any other groups of people (KIM and
MAUBORGNE, 2015).
Subject: Subject are the customers, trade union etc. customers and trade union have the power to
control the company’s activity. Company has to operate the business by satisfying the company
so if customers change their mind frim the company then the organization has to face huge loss
on the other hand every organization has trade union, trade union refers a group of people in the
organization who work together to accomplish the same goals and objectives. So these group
people also have huge power if they decided not work properly then Bluebell cannot achieve its
goals and objectives. But both customers and trade union don’t have huge interest for the
company. They both just act as a subject for the organization despite have so much power
(Radut, 2015).
Crowd: Government, financial institutions are called crowd. They both have low interest and
low power in the organization like crowd. In the cricket field crowd just cheers for their tams this
is all they can do only but their favorite team’s win and loss depends on the players performance
of that team like the crowd There is no intervention of government, financial institution over the
company’s decision regarding any project or budget or anything (Radut, 2015) .
Context Setters: Company’s employees and potential are the context setters of the organization.
There are associated with organization in various task. Organization’ goals and objects will
achieve because of their collective efforts. Since they are directly involved with Blue Lodge’s
any project or decision that’s reason they have huge interest on company but they have less
power over the organization. Their opinion or decision have less impact on the MCNAIR’s
decision (Narayan, 2017).
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A PESTLE analysis of the external factors that influence the
strategies of your chosen organisation.
PESTLE analyses is the tool that is used to understand macro environmental factors for the
company. Organization analyses PETLE to operate its business smoothly. PESTLE stands P for
Political, E for environmental, T for Technology, L for Legal and E for Environmental how these
factors are affected the strategy of the MCNAIR that will be given below:
Political factors: when organization make some strategies for the company political factors
influence a lot because every country’s political condition is not same. First world country’s
political condition is stable so companies don’t need to be tensed about the stability on the other
hand there are some countries which political condition is not stable for that business
organization has to take decision according to that country’s political situation (Bharwani, and
Mathews, 2015). Bluebell Lodge is the resort company in UK which politics stability is good so
in that case Blubell takes strategies according to the situation but if the company operates its
business in South Asia which political condition is not like UK in that case company has to take
different strategies inorder to operate business.
Economic Factors: Economic factors which includes labor cost, international exchange rates,
industry growth, growth rate, GDP, GNP and etc. these factors have influenced over the
company to make any strategies (ROTHAERMEL, 2014). United kingdom’ GDP is quite higher
and it is a develop country so its people purchasing power is higher than the south Asian
countries people so the strategy which will take by the Bluebell for the UK’s customers will be
different from the strategy if it will operates its business in south Asia .
Social Factors: distribution, demographics, cultural attitude, life styles, age etc. are called social
factors. One thing is sure that society is changing. People taste and choice both are changing.
Social media these days play an important role in people’s life. People spend a good amount of
time in social media and nowadays people love to do shopping or buying anything from digital
market than physically so company has to things these factor to make strategies. Since UK’s
people are very much involved in digital platform than many others people in the world so
Bluebell will more focuses to the digital platform to sell the customers of UK (JOHNSON,
2017).
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Technology: day by day people are depending on the technologies. Technology is anything that
is used to minimize human’s effort. Bluebell Lodge is Resort Company and provide several of
services for the customers (ROTHAERMEL, 2014). These services are often accomplish by the
use of different machineries for example cleaning the rooms with vacuum cleaner. Once upon a
time there were also a Resort company in the world but that time employees of the resort used to
clean the rooms by hands but it changed now different technology came and that minimize the
effort and time to provide services. During the time of making strategies technological factors
are also very important.
Legal factors: Legal factors are different kinds of law that business have to follow in order
operates the business. Legal factors includes employee’s law, health and safety law, customers
law, company law etc. all these factors affect the business of Bluebell Lodge. There is a
minimum wage rate company has to pay to the employees in United Kingdom but this rule is not
applicable in case of other underdeveloped countries (ROTHAERMEL, 2014). So company has
to pay a minimum wages to its UK’s employees but this rule is not applicable if the company has
another branch in underdeveloped country.
Environmental Factors: environmental factors are climate change, air pollution, weather and
availability of non-renewable goods. MCNAIR operates business in UK and UK has some laws
for business regarding climate such as how much a factory can release Carbon Dioxide, level of
air pollution, the use of non-renewable goods etc. companies have to strictly follow these rules
and company makes plan considering these environmental factors (ROTHAERMEL, 2014).
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Analysis of the internal environment and capabilities of your chosen
organisation using the SWOT analysis, the VRIO Framework or
McKinsey’s 7s Framework.
SWOT analyses is the analysis by which a company assess it strength, weakness, threat and
opportunity. By analyses the SWOT MCNAIR will come to know that which are its strength and
opportunity and where company needs to work to overcome its weakness. In the below the
SWOT analyses of Bluebell Lodge will be discussed
Strength:
 Bluebell Lodge main strength is its services. Customers have some fondness to its
services especially its president suits room.
 As it a UK based company so tourist have immense trust on it.
 Location is always an important factors. Bluebell location is its strength.
 Continuous changes in services is another strength of the company
Weakness:
 Its operation system is costly as a result the price of the service sometimes higher than the
competitors.
 Since it is small medium company so the wage rate of the employees are not as good like
the other company as a result employees are not motivated to give their best that as result
company has to face many problems.
Opportunity:
 Bluebell has some rooms in the resort which mainly made for families where family can
get all the facilities which are they seeking.
 Indoor sports has a fan base and company has the plan to make that plan happen for the
people.
Threat:
 Competitors of the Bluebell Lodge is a threat to operate its business because company
has to always alert what its competitors are offering to the customers.
 UK comes out from Europe union so the pricing would be different now so how the
company will set its price for European that is a threat for them.
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Mckinsey’s 7’s framework: organization make different strategies in different time for the
situational demand. To make those strategies company needs to know the company’s design and
Mckinsey’s 7’s framework model help the organization to know about the design and make the
strategies.
Figure: Mckinsey’s 7’s framework
Source: (JOHNSON, 2017)
Strategy: Bluebell Lodge has the plans to achieve its aims and objectives and a set of plan is
called the strategies. Strategies includes plan, how these plan will be achieved, and plan for
budget, plan for human resources etc. without strategies it will be very difficult for the
organization to sustain in the long run (JOHNSON, 2017).
Structure: Structure represents the design of the organization by which company operates its
business. Different business organization structure is different. Bluebell Lodge is Resort
Company so its structure definitely would be different than the food industry. Structure also help
the company to take decision (Radut, 2015).
Systems: systems are consisted with some factors which are inter-related with each other. If one
factors fails then the whole process will be failed. So this the process by which Blubell runs its
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business. Since Bluebell Lodge is Resort Company its system is similar to Resort industry
(Narayan, 2017).
Skills: to operate the business, company needs skills people because they are main resources of
the organization. Company recruits employees according to their needs and all employees skill
would not be same some are good at managing people some are good at it sectors etc. Bluebell
hires and distributes its employees in to different department (Radut, 2015).
Staff: the people who are working in the organization is called the staff. Staffs helps the
organization to gains its aims and objectives by working collectively. Different staff have
different responsibilities but all the staff work together to achieve same goals.
Style: every organization follows some styles in the running of the company. Bluebell Lodge
also have style by which it operates its business. Bluebell’s to manager set some goals to
employees and employees are working to achieve that’s goals (Bharwani, and Mathews, 2015).
Shared Value: all the employees and employers are sharing the same value of the organization.
They all have different responsibilities but all share the same value (Bharwani, and Mathews,
2015).
Evaluation of the competitive forces of a given market sector for
your chosen organisation using Porter’s Five Forces model.
Company find out its strength and weakness to gain competitive advantages over its competitors
and Porter’s five model help the Bluebell Lodge to shape its organization and gain competitive
advantages. Using porter’s five model the competitive forces will be discussed below:
Competition in the Industry: This model help the company to analyses the competitors
behavior. If the numbers of the competitor is higher in the market then it is very difficult for the
Bluebell Lodge to operate because that time Blubell has less power in the market and cannot set
up its service price by company’s choice (Bharwani, and Mathews, 2015).
Potential of new entrants in to industry: UK is business friendly country it allows people,
group and company to start a business in the country. This easiness to enter into market
motivates lots of people or organization to enter into the resort industry. MCNAIR considers this
thing and make its strategies (Radut, 2015).
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Power of suppliers: If the suppliers are huge in number then the company has the power to
choose its own suppliers according to cost effectiveness but if the suppliers are less in number
then company do not have power to negotiate with the suppliers in that case Bluebell Lodge will
have to buy materials according to their offering price (Jain and Bowman, 2016).
Power of customers: customers are those people to whom company sell its product and
services. Since company’s profit and loss depends on the customers so customers have huge
power over company’s activities (ROTHAERMEL, 2014). Bluebell’s services create demand in
the market then customers will buy that services at high price the result will be vice versa when it
cannot create demand in the market.
Threat of substitutes: It refers the availability of products and services that customers could buy
or purchase from the outside. If customers get substitute services of Bluebell Lodge which
satisfy their needs and wants in their convenient choice then it will be a great threat from the
company. Company then evaluates that situation and changes its strategies to capture its old
customers (ROTHAERMEL, 2014).
Part B:
Evaluate the different types of strategic directions available to the
organisation. The evaluation may include using any one of the
following:
In order to do well in the business company has evaluated some strategies and act according to
that strategies. Basically these strategies are formulated to achieve goals. Bluebell Lodge also
evaluates different strategies for the business. Those are:
Porter’s generic strategy: porter’s strategy can be divided into some categorize. First is cost
leadership strategy in this strategy MCNAIR focuses on the cost. The main strategy of this
segment is to offer products at minimum profit to the customers than the competitors. It is the
way of be the leader of market by minimizing the cost. But this approach is not always
appropriate for the small medium industry. Bluebell Lodge is small medium industry its
customers are not huge in numbers to minimize the cost there is a chance company will reduce
the quality of the services as a result it will lose its customers. The other strategy is
differentiation strategy. This strategy allows the company to differentiate its services by adding
or giving some extra feature or opportunities. Bluebell can take strategy as well to compete with
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competitors. Last strategy is focus strategy, according to this strategy company Bluebell focuses
to a certain group of people for example targeting the rich people and evaluates their needs,
wants and provide services according to their choice (ROTHAERMEL, 2014).
Bowman’s strategy Clock: Bowman’s strategy helps the organization to make a position in the
market. Low price and low value add is the strategy which suggest the Bluebell to reduce the
cost of the services and also reduce the quality as well. According to this strategy if people pay
less for the services they assume that the quality would not be the best (KIM and
MAUBORGNE, 2015). There is another strategy according Bowman is low price this is same
like porters cost leadership strategy but the only difference is Bowman’s did not suggest to be the
leader in the market it suggest to reduce the cost at some extent. The last strategy is
differentiation, in this strategy company differentiate its services so that company can gain
competitive advantages. The differentiation could happen both in services, company’s system or
anything. Bluebell could change its service style compare to its competitors. The main theme of
this strategy is differentiate its one any feature or anything.
Vertical/Horizontal strategy: these two strategy suggest two different things to company.
According to Horizontal strategy it suggest Bluebell to merge with some other company. Where
both of the company share risk and return together. This strategy is taken by the company to
increase its services. Vertical strategy is the strategy by which Bluebell Lodge will own or
control its distributors, suppliers and retailer etc. (Bharwani, and Mathews, 2015).
Recommend the most appropriate growth platform and strategies
through the application of Ansoff’s Product/Market Growth Matrix.
Bluebell Lodge wants to grow its business so it follows Ansoff’s product/market Growth matrix.
Which help the company to grow. In the below Ansoff;s Product/Market matrix will be
discussed.
Market penetration: market penetration is a growth matrix according to this strategy company
needs to increase its sells in the existing market in order to gain maximum share and gain
competitor’s customers. Bluebell generates sales by providing more opportunities or reducing the
price of the service, also can increase its services all over the UK, start chain or franchise.
Market penetration has done by the company to generate new leads and attract competitor’s
customers to generate profit (KIM and MAUBORGNE, 2015).
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