Holiday Inn: Strategic Analysis of Internal and External Factors

This report provides a comprehensive analysis of Holiday Inn's business strategy, evaluating both its internal and external environments. The analysis begins with an examination of the macro-environment using PESTLE analysis, identifying political, economic, social, technological, legal, and environmental factors influencing the company. The report then delves into the internal capabilities of Holiday Inn, employing the Resource-Based View, VRIO analysis, and McKinsey's 7-S framework to assess its strengths and weaknesses. Porter's Five Forces model is applied to understand the competitive landscape of the hospitality industry. Finally, the report explores strategic planning using the Ansoff Matrix to recommend strategies for market penetration, product development, market development, and diversification. The report concludes with recommendations based on the findings and provides a detailed overview of Holiday Inn's strategic position and potential future directions.

Hospitality Business
Strategy

TABLE OF CONTENT
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Analysis of the influence and impact of macro environment on the company and its strategies.........3
TASK 2.......................................................................................................................................................6
P2 Analyzing internal capabilities and environment ofthe company using different framework............6
TASK 3.......................................................................................................................................................8
P3 Application of Porter’s five forces to evaluate the competitive environment of company..................8
TASK 4.......................................................................................................................................................9
P4 Application of concepts, models and theories to devise the strategic planning for the company........9
CONCLUSION.........................................................................................................................................11
REFERENCE............................................................................................................................................11

INTRODUCTION
Business strategy it’s a framework which used to cover all the important corporations and
organisations through which the development and the enhancement in the competitive
environment can be maintained. It helps out to adopt all the business practises through which the
competitive advancement in wide range of products and services can be implemented.
Hospitality sector is the rapidly growing area which has large number of competition in its zone
(Alqam, and Nair, 2018).As in order to implement proper business strategy it is important that a
plan with a competitive edge is being maintained. The organisation chosen in this report is
Holiday Inn It is an intercontinental hotels group which was founded in 1952 and headquartered
in UK. Holiday Inn London is being chosen in this report. There will be a brief discussion about
the internal and external factors and environmental concepts with various theories and models
regarding the strategic planning.
TASK 1
P1 Analysis of the influence and impact of macro environment on the company and its strategies.
The external factors are the macro environment in which economical aspects are being
covered. It provides influence in all the working areas of business implementing the decision
making end framing the working area. It helps how to create an impact with external
environment through various models that are been mentioned below:
PESTLE Analysis
It is an important model which helps out to gain the knowledge about the macro
environmental areas and through which the functioning of the organisation can be maintained as
for Holiday Inn PESTLE Analysis is given below:
 Political: It mainly covers the political environment through which all the companies
used to operate the state and its function (Andrade, and et. al.,2019). As for Holiday Inn
It is being maintained in so many states and used to cover various political risk in regard

to the generation of revenue. For example as there was a Brexit in UK that implemented
that the visitors in the country but reduced and also affected the profitability of the hotel.
 Economic: This mainly covers all the economic factors that operate the organisation with
its direct nature. As Holiday Inn has so many different chain of hotel and it provides
better facilities in a profitable range but at the time of COVID-19 the bank interest rate
offered is quite low through which the expansion of the operation was being affected.
 Social: This mainly covers all the socio-cultural factors that implicate all the supply
chain, purchasing area and various factors that helps out to maintain the sales in the
organisation (Mihardjo, and et. al., 2019). Holiday Inn use to have better facilities and
environment so that the customers are being increasing as by attracting with the habitat
that is being given to them.
 Technological: This mainly covers all the technical aspects with the advancement in
innovation and the up gradation in the corporation. Holiday Inn Used to increase all the
better experience and digitalisation in the technologies and factor so that the customers
are variably be increased and attracted towards it.
 Legal: This covers all the issues and the legislation that are being made in various city
and countries with their hardship non-compliance areas and laws. Holiday Inn try to
access in various countries and also maintain the changing laws integration by adopting
all the legal consequences that are being needed over there.
 Environmental: This covers out of the all the effects and the cultures that are being made
in the corporation regarding the ecology and also to words the biological environment.
Holiday Inn hotel used to serve various environmental issues and by practising the
sustainability and function to promote global environmental solutions (Christ, and et. al.,
2017).
Stakeholder analysis
All the organisations and companies used to implement operation of business functions
through their direct and indirect methods. As the power interest grid is being analysed in
order to maintain the stakeholders analysis and to keep a check on the growth of the company
it is being mentioned into four categories set of being discussed below:

 Highpower-High Interest: It used to cover all those stakeholders that used to
maintain the important information that can be accessed and monitored as they have
high interest on the business practice. That mainly implements the top level
management of Holiday Inn hotel as it helps to maintain your satisfaction in business
practice.
 Low power-High Intrest: Discover the stakeholders that are being informed about all
the functioning of the business as they have high interest over there such categories
are mainly been covered in the customers as Holiday Inn used to maintain a proper
categorisations and inform about the functioning of the hotel in a maintainable
way(Yang, and et. al.,2019)..
 High power-less Intrest: This mainly covers the high power but also the less interest
in the organisation as according to the personal level they are being required to
maintain the satisfaction. The cover the workforce that are being appointed in
Holiday Inn hotel and used to have all the very less interest in the power of the
company.
 Low power-Low Interest: It implicates the corporation that is being maintained and it
has less interest in power so thereby they are keeping informed in order to maintain
the revenues and products. The suppliers are being covered in this as Holiday Inn
used to maintain a proper monitoring station of their suppliers.
Ansoff Matrix
It is a tool which covers out important strategies which helps in the business practises in
order to maintain a proper planning and expansion for the future growth. This helps to know
the areas and strategies for the business. As in context of Holiday Inn it is mentioned below:
 Product development: It is mainly the strategy through which a new product is being
launched with a further offering in all the control in the system market areas for the
customer satisfaction it helps out to maintain the new ideas through which the
customers can be there by me attracted. Holiday Inn hotel used to maintain proper
strategies by applying new services for the customers and guest in their existing
market area (Burström, and et. al.,2021).

 Market penetration: it mainly helps out to enhance the volume of sale in the market
by applying the existing services in the existing marketing conditions as Holiday Inn
Used to focus on giving efficient services to the customers in a better and attracting
way.
 Market development: This mainly covers out to enter in a new market segment by the
existing services and the goods so that the customers and a new segment of areas can
be attracted. Holiday Inn Hotel used to cover important strategy is through which the
customers can be reached and attracted in various segments.
 Diversification: It is mainly the risky strategy which used to cover all the new areas
and offering for the customers. As Holiday Inn hotel Used to provide services to their
tourist and customer so that they can be attracted and it helps out to generate revenues
for the business practices and functions (Shokhnekh, and et. al., 2020).
TASK 2
P2 Analyzing internal capabilities and environment ofthe company using different framework.
In order to maintain a proper company within internal environmental factors and
capabilities that has been analysed a predetermined objectives through which all the strategy
areas and the enhancement with the proper business strategies can be implemented. As to
maintain severe competitive advantages characterised all the capabilities with an internal factors
are being framed for Holiday Inn hotel The internal environment factors are being mentioned
below:
Resource based view: it mainly covers out all the important route lies as that is being
maintained by the company and its resources. Sustainable advantages in the competitive act
factors are being framed. There has been made that all such resources and it is important working
in the competitive advantages areas have been framed through the potential. All the resources are
mainly of two kinds when is intangible that covers Saudi intellectual property rights in a tangible
used to cover all the equipment that are being embedded in land, machinery and many more.
VRIO Analysis

It is mainly competitive edge which helps out to maintain the resources for the
organisation so all the capable means and advanced actors. As for Holiday Inn hotel The VRIO
analysis is mentioned below:
 Valuable: It mainly covers all the resources that help in maintaining the company to
maintain their smooth functioning areas and proper allocation of resources. As for
Holiday Inn hotel the management and all the business practises are being made through
the investment with the external opportunities. All valuable is being acquired through the
prolonged profits that are being made in the hotel through their resources.
 Rare: This mainly covers the resources which are important for the business practice.
Holiday Inn hotel used to maintain their employees as resources as they are being highly
skilled and trained in the professional areas and also helps to retain maximum out of
customers by working in a very efficient manner in providing good facilities (Pingali, and
et. al., 2019).
 Inimitable: It is all the important financial allocation of resources that are being used by
Holiday Inn hotel as in order to maintain the profits in a prolonged manner and to
compete properly with all the new entrants of hotels by the proper targeting on the
financial resources and functioning.
 Organised: This mainly cover as for Holiday Inn hotel that implicates all the networking
areas that are being widely distributed so the customer can easily reach through the
services and also are aware about the advantages of that hotel. This helps to maintain the
competitive advantages and edge through network mediums.
McKinsey’s 7s
It is an important model that covers out seven internal elements through which all the
organisations are being entertained any proper successful manner. It used to cover the main
elements with all the important categorisation for Holiday Inn hotel is as follows:
Strategy: it is mainly the plan that is being made by the company in order to maintain a
competitive advantage and also to gain the adverse areas of competitive edge for the company.
Holiday Inn Hotel Used to maintain various services and optimised technology in order to
maintain a better experience for the customers and to gain the competitive areas of working

 System: It used to provide all the daily activities that are being needed for the procedure
is in the business practice. Holiday Inn Hotel used to provide larger control on all the
reservation, evaluation of performance and with that the quality system in their hotel on a
larger scale.
 Structure: It mainly covers the corporation that used to maintain areas of expansion.
Holiday Inn Hotel use to follow Hierarchical organisation as to which they used to
manage all the system by proper divisional areas and framework of working in the
franchisee and ownership.
 Style: Holiday Inn Hotel Use the lassiz-faire leadership style in order to maintain the
proper working of the managers and their implementation also serves the important
decision making areas.
 Shareholders: Holiday Inn Hotel tries to maintain proper daily activities in a procedural
form With that they try to maintain all the positive ethical approach for the shareholders
by giving the integrity and a proper working environment with a good hospitality region
to their customers in a teamwork and implemented actions (Maritan, and Lee, 2017).
 Staff: There is a large number of staff being working in the company as in Holiday Inn
Hotel about 1,13,000 All staff members are being employed in order to maintain the
functioning of the hotel.
 Skills: It is mainly the capabilities that implements a properly trained and skilled staff
and also provides proper training facilities so that the customers will always experience a
better and an advanced feature of working area.
TASK 3
P3 Application of Porter’s five forces to evaluate the competitive environment of company.
In order to make a smooth functioning of a business practice it is important for all the
companies and organisations to identify the important competitive forces that are being needed
in order to maintain the shape. As per the remaining all the strengths and weakness in the hotel
industry as for the context of Holiday Inn Hotel it is mentioned below:

 Threat of new entrants: All the new entries in the market segment is always a threat to
all the existing companies. As far Holiday Inn Hotel Is low as there is comparatively
loyalty of customers and a strong market image of the hotel in the customer base.
 Competitive rivalry: This cover all the competitors that are being made in the hotel and
hospitality sector. As Holiday Inn Hotel have a moderate power in this force as there is
various brand image and a goodwill of this hotel and it has a maintained trust of loyalty
in the hotel sector of the various customers.
 Bargaining power of customers: Holiday Inn Hotel Have low power force for customers
as they usually maintain our high income earning and they usually prefer the luxury and
the services that are being given by the hotel so they maintain the ability for a low
segments (Ciasullo, and et. al.,2020).
 Bargaining power of suppliers: As a supplier used to provide proper resources and the
allocations. The supplier have retaining power and this power force is moderately low for
the hotel at the suppliers there are numerous of suppliers that are being ready to serve and
they have a unique product and market image for customers.
 Threat of substitutes: It provides all the offering in the market. Holiday Inn Hotel have
moderate force of this industry as they have a customer base which deviously implicated
areas and the substitutes in the hotels are mainly not that moderate of hassles like motels,
hostels are the options that can be maintained by the customers but as for the luxurious
area and proper safer environment it is the main an important choice.
TASK 4
P4 Application of concepts, models and theories to devise the strategic planning for the
company.
Strategic planning implicates out the theories which had sought to maintain the effective
growth and planning in the organisation. Holiday Inn Hotel used to maintain a proper framework
that is been mentioned below:
 Differentiation: Through this strategy the innovation in the services and products can be
given to the customer. It had sought to focus on the customer’s requirements and
demands and with that to uniquely focus on the areas that are being needed to enhanced.

Holiday Inn Hotel always try to maintain a technical advancement and innovative
approach through which they can attract their customers and increase revenues on a
profitable margin.
 Cost leadership: It covers out all the business practices through which the low-cost
producers can be effectively covered out in at maintain the segments of market through
which the revenue generation and also the reach of increasing profitability can be
maintained. Holiday Inn Hotel tries to maintain a proper middle income for the customers
and also target on all customer so as to provide them various offers and profitability
sectors (Muduli, and et. al.,2020).
 Focus: It used to cover the differentiation of focus and with that the cost focus that helps
out to maintain the low-cost and also by providing higher services to all the customer
segments through which the innovative approach can made and maintain and attract the
customers of Holiday Inn Hotel.
Bowman’s strategic clock
It is mainly cover of a different strategies that helps out to maintain the correct positions of the
competitive areas in the market as in context to Holiday Inn Hotel It is being discussed below:
 Low price: This is mainly being applied for the companies to adapt the low-cost so that
the lesser price can be given to the customers. Holiday Inn Hotel can use it for serving in
low price to the customers.
 Low price and low value added: This used to focus on increasing the quantity of sale.
Try to maintain the low-cost and increasing values of services. Holiday Inn Hotel can try
to maintain the low pricing for the customers by providing values and services in a low
range.
 Differentiation: This used to maintain all the services that are being need in competitors
through the high-value market. Holiday Inn Hotel covers out all the innovative approach
that are being needed in order to attract the customers.
 Hybrid: This cover the combination in which low prices can be given with a competitive
advancement and add the values of the offering. Holiday Inn Hotel maintains the sales
volume with an increasing value of the offering.

 Monopoly pricing: This cover single business practice that used to control all the prices
in the market.
 Focused differentiation: It provides high-value offering to the customers on high pricing
by providing various strategies. Holiday Inn Hotel can in order to attain the high values
can provide services on a hidden by implementing some technology and innovation
(Dawson, and et. al., 2020).
 Loss of market share: It covers the strategy that used to implement the existing market
areas that has been shifted in the new market condition. Holiday Inn Hotel can try to
frame and adapt various forwarding marketed by applying the strategies in it.
 Risky high margin: It is discovered the understanding through which the implementation
of services in a high price can be given in a perceived value. Holiday Inn Hotel can
implement the existing services on a higher price to go and get more profit earning.
CONCLUSION
From this above report it is concluded that business strategy is an important plan through which
all the organisations can increase their sales and profitability in the market value. It helps out to
frame the identified areas and structure and to adapt the internal capabilities in the working
environment. The VRIO, PESTLE, Mckinskey Are being used in order to maintain the extra
environment factors. Ansoff matrix and stakeholder analysis helps out to evaluate all the
important areas that are being needed in the organisation. Furthermore it is also analysed that
strategy planning helps out to be maintained through Bowman’s strategy clock and there are
various strategies that help in outgoing the success and also in generating the benefits for the
company through Porter’s generic strategy.
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