Strategic Analysis of the Hospitality Business: Holiday Inn Report

This report provides a comprehensive analysis of Holiday Inn's business strategies within the hospitality industry. It begins with an introduction to the hospitality sector and the importance of strategic planning, focusing on Holiday Inn as a case study. The report delves into the impact of the macro-environment on the organization, utilizing the PESTEL analysis to assess political, economic, social, technological, environmental, and legal factors. It also examines stakeholder analysis to understand key influences. Furthermore, the report evaluates the organization's internal environment and capabilities using frameworks such as McKinsey's 7S model and VRIO analysis to identify strengths and weaknesses. Porter's Five Forces are applied to assess competitive forces in the marketplace. Finally, various models, concepts, and theories are discussed to interpret the strategic planning of the organization, culminating in a conclusion summarizing the key findings.

Hospitality Business
Strategies

Contents
Introduction.................................................................................................................................................3
P1 to analyse the impact and influence of the Macro environment on the chosen organisation and its
strategies..................................................................................................................................................3
Macro environment frameworks..........................................................................................................4
P2 what are the capabilities and internal environment of the organisation by using different framework
.................................................................................................................................................................5
P3 apply five forces of porter's and evaluate competitive forces in the Marketplace...............................8
P4 what are the different models, concepts and theories to interpret strategic planning of the
organisation.............................................................................................................................................9
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

Introduction
Hospitality industry is the broad category of fields which includes the service industry
such as lodging, food and drink services, event planning, theme parks, travel and tourism. It
includes hotels, tourism agencies, restaurants and bars. It is important for every business
organisation to develop a master plan which can be used by the managers to attain their common
goal of the organisation in an effective manner (Araújo, 2017). There are several types of
strategies which can be adopted by the company in order to survive for a longer period of time.
The report is being discussed about the hospitality business strategy based upon Holiday Inn
hotel. The hotel was founded in the year of 1952 by Kemmons Wilson. Headquarter is located in
Denham, Buckinghamshire, United Kingdom. The report discussed the impacts of the macro
environment on the business strategy and also determined the external environment which affects
the functions of a business. The internal factors are also evaluated with the help of Porter's five
forces and many other models, theories and concepts are discussed in strategic directions.
Main body
P1 to analyse the impact and influence of the Macro environment on the chosen
organisation and its strategies
PESTEL analysis model
It is the Framework which can be adopted by the organisation in order to determine the
external affairs which has an impact on the working of the organisation. Holiday Inn has a
PESTEL analysis model is discussed below:
 Political factors: the government of the United Kingdom has a strong hold over the hotel
industry. If the political party is in power then they can set a travel ban in any of the
places which could hurt the duration and hotel industry immediately (Ardolino and et. al.,
2018). This resulted in the new amount of loss to the company. The government also
controls tax reforms. Luxury and high grade hotels Food Court that saves towards
building more accommodations for the guest which helps them to provide better services
to their customers.
 Economical factors: hospitality is one of the biggest investment sectors for global
investors especially within the United Kingdom. Holiday Inn is also a very famous brand

in the competitive market which attracts the customers to take more services from the
organisation. In the current scenario due to this pandemic situation because of covid-19
the tours and travels sector has majorly affected which resulted in the loss to the hotels.
 Social factors: there is a biggest competition in the competitive market as the travelers
have many options in order to select the services from a particular place so it is very
difficult for them to choose to attract and hold the customers for a longer period of time.
Holiday Inn often runs out of the rooms during the peak season and when they don't they
check up the room prices in order to earn more profitability from the competitive market.
 Technological factors: it is very important for an organisation to adopt technologies in
order to provide better services to the targeted customers. The organisation can also use
social media platforms in order to promote their goods and services into the competitive
market which helps the customers to become aware about the offered services by the
organisation.
 Environmental factors: it is very important for the organisation to provide their services
with respect to the local climatic condition in the respective place. When vacations are
going on, customers want to stay somewhere warm and relaxing so that they can enjoy
their vacation. This isn't something hotel owners can control but they have to understand
seasonal differences before pricing their room and adjust accordingly.
 Legal factors: as it was already known that Holiday Inn used to provide their services
around the globe. The crime rates on the total profit as everyone wants to stay somewhere
safe. The high crime rates will result in trouble to survive in the place and the customers
want to stay at such locations. It is important for the chosen organisation to ensure the
Welfare and safety of their guests in their property while following every rule and
regulation with respect to the country.
Macro environment frameworks
Stakeholder Analysis
Stakeholder analysis refers to the procedure of finding those persons which can have an
impact or get impacted by the working of the organisation into the competitive market. It is very
important for the chosen organisation to analyse with respect to the interest of the customers and
the company can know about the level of competition which is present in the competitive market
so that they can determine several strategies in order to overcome the competition (Del Vecchio

and et. al., 2018). For this, the company can go to the following three steps which are discussed
below:
 Firstly, the company has to determine the list of individuals which can be the
stakeholders for the Enterprise. Holiday Inn works on the potential individuals where the
employees are working with respect to the sales department, Marketing department,
government authorities, suppliers, stakeholders, staff for executive department and many
others.
 Secondly, after analysing the important stakeholders managers of the chosen organisation
are required to prioritize them accordingly with respect to the several categories which
are defined below:
o High power and high interest: in this the organisation can give priority to all those
companies which are performing their business actions in a better manner.
o High power and low interest: the stakeholders of the chosen organisation can
influence the working of the company when they do not have a high interest in the
functions of the organisation.
o Low power and high interest: Holiday Inn has to tell their stakeholders about their
business so that there will be no no issues faced by the stakeholders in order to
achieve their common goal in an effective manner.
o Low power and low interest: and just the states order or neither interested in the
functions nor do they have the power to impact on the working functions of an
organisation.
 Lastly, holiday managers will communicate with reference to their stakeholders about
their priority so that they can support the different stakeholders in order to fulfill the
project without facing any issues within a specified period of time. For example: the
stakeholders of Holiday Inn have high power because of their investment in the company
and this resulted in more interest.
P2 what are the capabilities and internal environment of the organisation by using
different framework
Strategic capabilities and their key elements

Strategic capabilities refers to the ability of business to harmness with all the skills
capabilities and resources which is possessed by the organisation so that they can gain
competitive advantage from the Marketplace. They have 6 main components for the key goals,
action of plan vision, value. The elements are beneficial for the chosen Organisation in order to
achieve their common goal in an effective manner.
McKinsey's 7 S model
McKinsey Framework is the tool which can be used by the organisation in order to
design the company and identify the seven key internal components. This helps the organisation
to determine it into an effective manner due to which the chosen organisation can also work in an
effective manner so that they can achieve their set targets within a specified period of time.
Those are mentioned below:
o Strategy: it is the idea which can be used by the company in order to provide their goods
and services and defeat the competitors in the Marketplace (Garrigos-Simon, Galdon and
Sanz-Blas, 2017). Which is an organisation also used to work while determining the
strategies which lead to earn profitability from the competitive market while providing
better services to their customers.
o Structure: it is very important for the company to analyse their structure as this helps
them to easily share the information within the organisation. is Holiday Inn does not use
a good is structure then it will be difficult for the Holiday Inn does not use a good is
structure then it will be difficult for the employees to fill the gap of communication
within the company. This will leads to the loss of effectiveness and resulted in a negative
brand image in the market.
o System: which is an organisation take all the measures in order to help conduct day to
day business activities into an effective manner. As it is more beneficial for the managers
in order to deal and resolve the issues so that the company can attain their short-term
goals.
o Skills: it is very important for the employees of the chosen organisation as the
knowledgeable workforce will be beneficial for the organisation as well as for the
customers. The self them to determine the marketing techniques communication
techniques and other problem solving skills while addressing to their customers.

o Style: this means team manager in which the managers of the organisation use to
command from the top level to the bottom level. This is also helpful in order to motivate
the customers as it is a participative style.
o Staff: this factor is discussed about the type and number of employees which can be hired
by the organisation in order to provide their services to the targeted audience (Sun and et.
al., 2020). This is an organisation used to employee Employees with a good quality and
knowledge so that they can provide better services to their customers.
o Shared value: it is the most factor of this model as it talks about the standards and norms
which can be used by the employees in order to determine the behaviour of the
organisation and guide them in order to overcome with the issues faced by the company.
VIRO's framework
It is the tool which can be adopted by the organisation in order to determine the resources
which are available for the organisation and the internal capabilities. With reference to the
holiday inn VIRO analysis is discussed below:
o Valuable: the managers of the chosen organisation plays an important role in order to
properly utilise the resources so that they can provide better services to their targeted
audience. The valuable asset of the firm is help out the company to stand at a different
position in the market. The major Assets of the organisation is their workforce who are
working in order to attain the common goal of the firm.
o Rareness: if the companies providing such services to their audience which cannot be
easily availed by the other competitors in the present market. This factor includes the rare
things which cannot be copied by the other forms as it helps them to attend the high range
of profits from the market. This resulted in increasing the sale of products and services.
The organisation can also innovate some of the different products in their services in
order to fulfill the desires of their customers.
o Imitable: The Chosen organisation use two of a different kinds of services to their
customers which cannot be copied by the fellow competitors in the market place
(Rexhepi and et. al., 2017). The company is also not providing low prices
accommodation services to their audience as it always used to maintain the quality of
their services.

o Organisation: the primary objective of the organisation is to optimise the resources which
are present in the market and if the organisation is failed in doing so then this will be
leads to high cost of production and decrease the margin of profit.
P3 apply five forces of porter's and evaluate competitive forces in the Marketplace
Porter's has given five forces which can be used by the organisation in order to plan the
strategies for the future. There are five forces that can be used by the chosen organisation which
is mentioned below:
 Threat of new entrance: Holiday Inn is the company which is operating by the customers
at the global level. The company has a less threat of new competitors as your organisation
is already develop their positive brand image into the market so it is very less possibility
for the other competitors to take the market share of the firm.
 Bargaining power of suppliers: the large-scale organisation has a large chain of supplying
of their products. With respect to the bargaining power of the supplier are high as there
are many suppliers in the hospitality industry which are providing their goods and
services to the customers.
 Bargaining power of buyers: buyers means the customers as in the retail sector industry
of hospitality there are several companies which are providing same products and
services to the the customers in the competitive market (Goodsir, 2018). The customers
have wide variety of companies which are providing same services but it is necessary for
the choose an organisation to provide better quality of services in order to satisfy their
customers.
 Threats of substitute: the company always have to provide better products and services so
that the customers cannot move to the substitute.
 Rivalry among existing competitors: in every kind of business there are many other forms
who are in the competition (Hyun and Perdue, 2017). As it is very important for the
chosen organisation to defeat the The Other competitors while providing better services
to their customers.
Ansoff's matrix
It is the tool which can be adopted by the Jews and Organisation in order to determine the
strategies with respect to planning by the manager so that they can provide better functioning in

order to achieve the common goal of the organisation. With context to Holiday Inn, the Ansoff's
matrix model is discussed below:
 Product development: this is the strategy which can be adopted by the organisation in
order to introduce a new product into the competitive market so that the customers can
buy the high quality of goods from the existing market (Hwang and Kim, 2019). This will
be helpful for the company to increase their sales while developing innovative products
in the market.
 Market development: it is a strategy in which the organisation used to produce a new
product and leads to enhancement of sale and profit.
 Market penetration: in this the organisation uses to increase their market share with the
existing products into the existing market (Jang and Park, 2019). In this type the holiday
in organisation used to reduce their price of their services so that the customers can
attract towards the organisation in order to avail such services.
 Diversification: it is the most risky strategy as in this the company is to innovate and new
product and Launch It into the new competitive market. If the organisation has failed in
order to attract the new customers then it will be very difficult for the organisation to
overcome the losses.
P4 what are the different models, concepts and theories to interpret strategic planning of
the organisation
Porter's generic strategies
Generic strategy helps the organisation in order to determine the growth. There are three
categories which can be used by the company as discussed below:
 Cost leading: This is used by the company in order to target their customers easily
(Kovaltchuk, Blinova and Miloradov, 2017). Holiday Inn use to provide discounted price
and other attractive offers so that they can attract their customers. This helps the company
to enhance their sale by providing high quality of goods and services which resulted in
higher profitability.
 Differentiation: this type of strategy can be used by the company in order to determine
the competitors which are present in the market so that they can in over their products
into an effective manner which can be used by the company in order to defeat the
competitors in the existing market.

 Focus: these types of strategies have two factors on which the organisation has to focus
that is the cost and the differentiation. The Chosen organisation has and strategy in which
they used to provide less prices for their product so that the customers can easily avail
such products from the competitive market (Liu, Suolang and Lu, 2020). Differentiation
of organisation as White products like giving new options with respect to the points
which are going on in the market so that the customers can avail at which is beneficial for
the organisation.
Bowman's Strategic clock
This model can be used by the organisation in order to explore their business at large
places so that they can develop the effective strategies in order to use their techniques so that
they can defeat the competitors. The Chosen organisation also use the same thing as they have
adopted several techniques which helps them to provide better services to their targeted
customers.
Bowman's strategic clock model is discussed below:
 Low price and low value added: this is not a competitive position for organisation as it is
also known as bargain basement strategy. In this type of strategy the organisation used to
keep the prices cheap so that the competitors cannot undercut their price.
 Low price: when the organisation has become the low cost leader in the market then it
will be difficult for the other competitors to minimize their profitability margin in order
to defeat the organisation.
 Hybrid: this type of strategy can be used by the organisation in order to provide goods at
the lesser price (Manhas, 2019). The main objective while adopting this strategy is to
motivate the consumers to buy such product as it is offered at reasonable cost.
 Differentiation: The Chosen organisation used to serve their product at highest level of
perceived value which is added by the organisation in order to satisfy the customers
which helps in increasing the sale and revenue of the firm (Milwood, 2020).
 Focus on differentiation: it is important for the organisation to adopt this strategy in order
to acquire a highest level of clients so that they can buy their products at higher value of
received. This can be done by the luxury brands only.
 Risky high margin: there is case doomed to failure (Miragaia, Ferreira and Ratten, 2017).
As it is the highest level in which the clients use to buy the product set the high value.

 Monopoly pricing: it means when a company is in the only one enterprise who are
providing the Exclusive products in the market so it is the only choice left with the
customers to satisfy their needs and wants as there is no alternative products present in
the competitive market (Pijls and et. al., 2017).
 Loss of market share: this is a strategy which is the disaster in the market where the
competition is held out high value of the same price on the competitors price.
Conclusion
From the above report it can be concluded that every and Organisation plays an important
role in order to adopt the business strategy as it helps them to provide better goods and services
to the targeted audience. This can be achieved by the organisation while analysing the external
and internal factors in a deep manner so that they can develop their strategy according to their
requirements. In order to implement the right strategy the organisation can also implement the
Bowman's strategy porter's generic strategy to do plan. This helps the company to achieve their
set goals in the competitive market.

References
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