Business Strategy Report: Analysis of Vantage Hospitality Operations

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This report provides a comprehensive analysis of Vantage Hospitality's business strategy. It begins with an introduction to the hospitality industry and the company's background. The report then delves into the macro-environment analysis using the PESTEL framework, examining political, economic, social, technological, environmental, and legal factors influencing the business. Following this, the report explores the micro-environment through SWOT analysis, evaluating the company's strengths, weaknesses, opportunities, and threats. The report further examines the internal environment analysis, including VRIO analysis, to assess the value, rarity, imitability, and organization of the company's resources. The report also incorporates Porter's Five Forces model to analyze the competitive landscape. Finally, the report discusses various strategic planning theories and concepts relevant to Vantage Hospitality, concluding with a summary of the findings and recommendations for future strategic development.
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Hospitality Business
Strategy
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Contents
INTRODUCTION.......................................................................................................................................2
LO 1............................................................................................................................................................3
P1 Suitable framework and evaluation of impact & influence of macro environment.............................3
LO 2............................................................................................................................................................5
Internal environment analysis of industry................................................................................................5
LO 3............................................................................................................................................................7
Porter’s five forces model........................................................................................................................7
LO 4............................................................................................................................................................8
Range of theories and the concept which can apply in making up the strategic planning........................8
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9
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INTRODUCTION
Hospitality business are that organizations which gives the convenience offices and
administrations to the individuals who voyaged. What's more, these organizations utilize
numerous methodologies with the goal that they can accomplish the objectives and destinations
which they have set for themselves. The business utilize different vital system to know assess
about the inside and outside condition. Interior condition are the components which can gain
power by the association. While outer components are the variables which doesn't get in
constrained by the association by they put sway upon the working and activities of an
association. This report has taken a case of a cordiality organization, Vantage Hospitality.
Vantage hospitality is a hotel company which operates majorly in US and also international
countries. The company was founded into the year 1999 and has its headquarters in florida, US.
This report discuss about the evaluation of macro and micro environment done by this
hospitality company so that they can make or frame their policies likely. For analyzing the macro
environment the company can use the Pestel analyses and for micro analyses the company can
go for SWOT analyses and Vrio analyses. The report also includes the porter’s five force model
of Vantage hospitality.
LO 1
P1 Suitable framework and evaluation of impact & influence of macro environment
The association utilizes the Pestel examinations technique to investigate these outside
components with the goal that they can distinction the approaches and methodologies in like
manner (Baum, 1995). Pestle analysis is a vital instrument of the executives which is utilized by
business administrators to settle on better choices identified with operational exercises in the
wake of assessing effect about the elements which range outside the association & impact its
activities, for example, political factors, charge rates, floats in usage etcetera. It is one of the
most pivotal key instruments which enables the organization in early distinctive proof of risks or
openings and detail to better system for future with respect to full scale condition of business.
The Pestel analyses of vantage hospitality is as follows:
Political factors: The political factor portray the degree towards which the administration has
the control upon ventures. Some of the factors which includes in political factors are political
stability or instability, policies related to trade, fiscal and taxation etc. Vantage hospitality works
in numerous nations everywhere throughout the world and the ongoing increment in
psychological oppression exercises in certain pieces of the world has confined the travel industry
in those nations which is a significant worry for the administration of Vantage hospitality (Bonn
and Forbringer, 1992). Political hazard impact the choice of guests and the administration of
Vantage hospitality should increment and extend its tasks in nations which are politically steady
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and give a sheltered situation to the sightseers. Business improvement in these nations can assist
the organization with having a tremendous development prospect in future.
Economical factors: The economic factor describes about the economic condition and situation
of a country. The economic factor includes employment rates, income to dispose, trade policies,
growth rate and the so on . Over the span of ongoing years, an imperative and consistent rising in
the level of pay has added to an exponential advancement in the movement business. The
movement business has gotten one of the significantly contributing enterprises for any country
and backing from government is an open entryway for the organization of Vantage
accommodation to develop and separate its exercises. With the ascent in extra cash of
individuals, individuals are currently ready to spend a lot of part on close to home way of life
which has introduced a tremendous open door for the supervisors of Vantage hospitality to frame
arrangement and make procedure which can help the organization in focusing on this extra range
of clients and catch a colossal piece of the overall industry (Hayes and Ninemeier, 2009).
Social factors: Social factors include the taste and preferences of the targeted market. By
knowing such the company can get an idea about the perception of targeted group with regard of
any topic. Critical changes in the way of life of the buyer and a longing to have various
encounters and undertakings has absolutely raised the interest of the travel industry exercises. It
has been one of the noteworthy clarifications of an exponential advancement in the business. The
movement business also offers work to a huge number of people wherever all through the world.
With buyers having a tendency to acknowledge select desire for living and visit different bits of
the world, the organization of vantage friendliness gets an opportunity to detail plans and the
movement business packs which seems, by all accounts, to be engaging this new customer
segment which is moreover esteem delicate and requirements to have another experience. It can
assist the organization with maximizing its income and piece of the overall industry utilizing
different apparatuses of deals advancement.
Technological factors: Technological factor includes the technological advancements and
awareness among the country or company. It is been said that progressively advance the
innovation utilized by the nation, increasingly created it would be. The UK is a created nation as
it utilizes the trend setting innovations into their economy (Brotherton, 2012). As for the
situation with vantage hospitality, the organization utilizes the administration data framework in
which they store, offer and spare the data about the organization exercises and tasks. These
information or data helps the association in settling on the right and right choice for the
organization. The housing uses the CCTV camera in their premises with the objective that they
can raise the security into their hotel. The motel furthermore has the web booking workplaces
through which the customer or the guest can book the hotel book at whatever point he needs, this
activity reduces the work or the motel and the customers besides.
Environmental factor: It includes the factors like climates, weather, environmental issues or
change, any sort of pressure from NGO and etc. Expanding natural concern and activism has
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impacted the elements identified with natural insurance and biological awkwardness to come
forthright in the previous scarcely any years which has put the onus on organizations and
associations like vantage hospitality to decrease the measure of carbon impression and outflow
of ozone harming substances. The travel industry has gotten analysis by virtue of adding to a
significant ascent in the natural debasement and environmental change. The directors of vantage
hospitality has just found a way to follow the rules for relief of unfriendly effects on condition
and has a dream to improve its supportability standing (Jauhari, 2006). This presents an immense
open door for the organization to plan approach for ecological assurance and take an early lead
which will likewise assist the organization with improving its market picture and altruism.
Legal factor: Legal factors include the laws and rules which is been set up by legislation and it
is mandatory for the business to follow it if they want to run their businesses. As an association
which gives and incorporates different administrations identified with the travel industry,
vantage hospitality is dependent upon consistence under numerous rules and arrangements gave
by government. In addition, the tasks of the organization are stretched out to various nations
everywhere throughout the world and every nation has its own arrangement of rules and
guidelines which further builds the danger for the organization. Thus, the administration of the
organization should shape a group of individuals answerable for filtering the lawful skyline and
giving assurance against any legitimate danger or difficulty in future.
LO 2
Internal environment analysis of industry
To break down the inner condition is a lot of fundamental as a result of this the
association can see where it is and where they need to be. The inside condition is the variables
which are in charge of association and association can performs numerous methodologies to
shape the exhibitions of these elements. A portion of the inner components incorporate clients,
workers, suppliers, firm structure, framework, strategic, values and so forth the internal analyses
of an organization should be possible through SWOT analyses.
Strengths: It alludes to the characteristics which is been gangs by the organization which makes
the organization diverse structure all the others. These variables are taken as a quality for any
association. The Hotel Vantage cordiality has a decent generosity among the commercial center,
the administrations which is been given by the organization is magnificent and special which
makes their visitors glad and fulfilled. The company also have professional work force which
acts as an icing to the cake because it is the staff only who first encounters with the guests that’s
why a professional and good etiquettes workers are necessary to employee.
Weakness: It alludes to the zone where an organization needs behind or is feeble. They are
where organization needs to improve their exhibitions. Vantage neighborliness has not had the
choice to supervise satisfactorily the test and contention by the new firms and associations in the
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business which has lead to lost bit of the general business. Low and limited enthusiasm for
imaginative work is also one of the critical weakness which should be ousted by the organization
of the association. Because of a low exactness in anticipating of interest, the stock has been high
which has expanded the operational expenses somewhat. There likewise exists a hole between
the client desire and what is being given which is additionally an extensive shortcoming.
Opportunities: It alludes to the territories where an association can investigate more for its
development and benefits. This can be as far as extension, broadening or such a merger. Easy
commerce approach received by administration of various nations has likewise given a chance to
the chiefs of Vantage hospitality to grow to various nations and enhance its business tasks.
Extending environmental concern is furthermore a huge open entryway for the association to
construct its positivity since it has recently figured out how to improve practicality in its
exercises. Online arrangements stage has also been a huge open entryway for the association to
expand its salary and advantages.
Threat: It refers to the risk which is associated with the business while performing their
activities and operations. One of the significant risks for the organization of Vantage hospitality
is the expanding degree and level of rivalry in the travel industry because of its high engaging
quality. A current hole in the item situation by the organization may likewise end up being a
huge danger since it permits different firms and contenders to fill that hole and acquire a piece of
the overall industry. An absence of consistent advancement and improvement in the items is
additionally one of the most huge risk which needs quick consideration and activity of the
administration of Vantage hospitality.
Vrio analysis of Vantage Hospitality:
Interior examinations in like manner can be gotten to from VRIO investigations. These
examinations help the affiliation or the housing to know whether they are using their advantages
a right way or not. VRIO analyses of vantage Hotel are as follows:
Value: The facilities which is been given by the Hotel is a lot of significant. The hotels attempts
its full best to fulfill the clients and to satisfy them. The representatives which is been employed
by the organization conveys a lot of significant worth to the association as they are a lot of expert
and great into their activity (Krakover, 2000). In inn ventures the staffs are the individuals who
experiences first with the visitors then it is compulsory for the association to employ the gifted
work power which can take a decent consideration of the clients. In spite of the fact that the
money related administration of the organization was not all that suitable which results into
numerous misfortunes. Dealing with the accounts of the organization is a lot of vital as funds
make an organization solid in the market.
Rarity: Enormous pool of money related assets which is held by the organization is an
uncommon asset. Different firms and rivals in the travel industry once in a while have such solid
monetary assets. Workers of the organization are additionally profoundly prepared and gifted
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which gives the bit of leeway to the organization regarding high caliber of client assistance.
Nonetheless, every organization nowadays in putting into innovation which makes the
mechanical assets held by the organization a typical asset.
Intimidate: They are those components which different organizations can threaten from vantage
hospitality. The innovation utilized by the organization can get effectively threaten by some
other organizations. Various associations can similarly enroll the master and skilled workforce
which would help them in making their customer satisfied and peppy. The effortlessly chain
which is been used by the vantage neighborliness can be viably alarm by some other association.
Organization: It is the organization system and structure of the affiliation. The organization
structure is been properly followed by the association. The structure which is been gotten by the
association is Functional structure, where the affiliation is been isolated into divisions as
demonstrated by the work they are performing (Kusluvan and et. al. 2010). The divisions may
incorporate showcasing office, money office, human asset office, creation office, coordinations
office and the so on. The association additionally gives the preparation and advancement
programs for the representatives with the goal that they can create more aptitudes and
information in them as per the prerequisites to outer condition.
LO 3
Porter’s five forces model
Porter's five powers model is the model which gives the structure to an affiliation. In this
structure there are five techniques which need to consider to make an association to increment
upper hand. It is a structure which is been used to dismember the resistance into the business.
The maker of this framework insinuates these as a miniature domain powers which impacts the
assignments and activities of any business. These are the segments which can be obliged by the
association. This model moreover empowers the relationship in making the inside frameworks
with the objective that the association to can achieve its destinations and targets. The porter's five
force model of the association is according to the accompanying:
Threat of new entry: The threat of entry here refers to the degree of barriers to enter into an
industry. The barriers of entering into this industry if very less that any business can easily make
an entry and an exit from this industry. This has given the rise of competition faced by Vantage
hotel (Kwon, Bae and Blum, 2013). As there is no barrier to entry many companies are entering
into this business.
Bargaining power of Buyers: It refers to the degree the customer can bargain with the prices of
hotel. As the level of competition is very much high into this industry, the customer has various
choices among which they can make a choice. This has forced the total to set the prices
according to the competition or set their service quality such that their customer do not get shift
to any other hotel company.
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Threat of substitute products: As the competition in this hotel industry is keep on increasing
the threat for its substitute service is also high. The companies can easily copy the services or the
offers which the Vantage hotel came up with. Through this the customer would choose that
product or service which prices is low and satisfies their needs. Therefore creating a high threat
for substituting of products.
Bargaining power of suppliers: Concerning the circumstance with inn industry there are
various providers available with the associations, so the haggling force of supplier would be
normally less. So here the associations practice more command over providers instead of
providers rehearsing greater ability to the associations. The vantage cordiality can put their terms
and conditions before providers. Here the association can saves the cost and can increment upper
hand (Lewis and Shoemaker, 1997).
Rivalry among existing competitors: There is a substantial contention open into the market in
accommodation industry; there is gigantic number of associations running from little to
enormous which revels into this market. There is no limit into this industry anyway the
association needs to complete a fundamental obligatory lawful customs when to make an exit.
LO 4
Range of theories and the concept which can apply in making up the strategic planning
Porter’s generic of vantage hospitality is as follows:
Cost leadership: In this the organization focus upon cost reduction by selling the homogenous
products by targeting the large market.
Differentiation: Here differentiation refers to the organization in which the features which is
been provided by the organization is unique and it provides some unique product or services the
prices which is been charged by the organization is also high (Olsen and Roper, 1998). The
serves which is been provided by Vantage hospitality is unique for which it also prices high
prices to the people.
Cost focus and differentiation focus: Here the organization either centers upon minimal effort
or the organization center open acquiring separation its item through tenderizing new and
creative administrations and close by charges the significant expenses. As for the situation with
vantage hospitality, the organization significantly centers around separation center in which the
organization separates the administrations which it gives (Pavlatos and Paggios, 2009).
CONCLUSION
From the report presented above, the various strategic tools and framework has been
mentioned. The report includes the pestel analyses framework to analyze and evaluate the macro
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environment which affects the working of any organization. The report also includes the SWOT
and VRIO analyzes to evaluate the internal factors. Apart from this porter’s generic model is also
included into report in which it has been noticed that the organization, vantage hospitality focus
on differentiation strategy.
REFERENCES
Books and Journals
Baum, T., 1995. Managing human resources in the European tourism and hospitality industry: a
strategic approach. Chapman & Hall Ltd.
Bonn, M. A. and Forbringer, L. R., 1992. Reducing turnover in the hospitality industry: an
overview of recruitment, selection and retention. International Journal of Hospitality
Management. 11(1). pp.47-63.
Brotherton, B. ed., 2012. International hospitality industry. Routledge.
Hayes, D. K. and Ninemeier, J. D., 2009. Human resources management in the hospitality
industry. John Wiley & Sons.
Jauhari, V., 2006. Competencies for a career in the hospitality industry: An Indian
perspective. International Journal of Contemporary Hospitality Management.
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Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality
industry. International Journal of Contemporary Hospitality Management, 28(1),
pp.36-67.
Kandampully, J., Zhang, T.C. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management.
Krakover, S., 2000. Partitioning seasonal employment in the hospitality industry. Tourism
Management. 21(5). pp.461-471.
Kusluvan, S., and et. al. 2010. The human dimension: A review of human resources management
issues in the tourism and hospitality industry. Cornell Hospitality Quarterly. 51(2).
pp.171-214.
Kwon, J. M., Bae, J. I. S. and Blum, S. C., 2013. Mobile applications in the hospitality
industry. Journal of Hospitality and Tourism Technology.
Lewis, R. C. and Shoemaker, S., 1997. Price-sensitivity measurement: A tool for the hospitality
industry. Cornell Hotel and Restaurant Administration Quarterly. 38(2). pp.44-54.
Olsen, M. D. and Roper, A., 1998. Research in strategic management in the hospitality
industry. International Journal of Hospitality Management. 17(2). pp.111-124.
Pavlatos, O. and Paggios, I., 2009. Management accounting practices in the Greek hospitality
industry. Managerial Auditing Journal.
Weidenfeld, A., 2006. Religious needs in the hospitality industry. Tourism and Hospitality
research. 6(2). pp.143-159.
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