Business Strategy Report: Das Black Forest Hotel, Germany Operations

This report provides a comprehensive business strategy analysis for the Das Black Forest Hotel, a hospitality venture planning to establish itself in Germany's Black Forest region. The report delves into the company's business definition, outlining its mission to provide quality and affordable services. It establishes the hotel's vision, mission, goals, and objectives, laying the groundwork for its operational strategies. A detailed SWOT analysis identifies the hotel's strengths, weaknesses, opportunities, and threats, providing insights into its competitive position. The report also examines key stakeholders, including employees and potential customers, and discusses the generic corporate strategies the hotel might adopt. Furthermore, it addresses potential risks and issues, such as funding challenges and market competition. Overall, the report aims to provide a strategic roadmap for the hotel's successful entry and operation in the German market, with a focus on attracting tourists and achieving long-term profitability.

Business Strategy
for
Hospitality Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Executive Summary ............................................................................................................3
Business Definition................................................................................................................4
Vision, Mission, Goals, Objectives........................................................................................4
SWOT Analysis......................................................................................................................6
Stakeholders...........................................................................................................................7
Generic Corporate Strategy....................................................................................................9
Risks and key issues to be addressed...................................................................................10
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................12

INTRODUCTION
Business strategy is defining as a combination of competitive actions as well as moves
which a company adopt in order to attract customers, conduct work, enhance performance, attain
goal and so on (Wang, 2014). It is generally considering as which must be carried by a firm in
order to attain its desire outcome. Every business need to develop business environment so that
they conduct their functions in effective manner which help them in attainment of objective.
Organization taken in this report is Das Black Forest Hotel, which is going to start their business
in Germany for which they develop proper business strategy that help them in conducting and
operating their business. Topics which are covered in this report are business introduction, their
vision, mission, goal, objective and they also conduct SWOT analysis to know their marketplace.
Along with this respective report include information about stakeholder, generic corporate
strategy and risk which are incurred in the process.
MAIN BODY
Executive Summary
Business strategy is essential for every organization who is expanding their business or
introducing their business. Das Black Forest Hotel is going to introduce their business in
Germany at Black Forest location for which they develop business strategy plan. That will
include all the necessary information related to opening business or hotel. For this respective
hotel first develop their vision, mission, goal and objective which help them in developing
guideline what they have to conduct and in what manner so that they conduct their activities in
proper manner. Along with this when respective company start operating at particular market
they need to offer products and services according and for that they need to know their
capabilities and ability, that can be identified through SWOT analysis. This is so because it will
help in identifying strength and weakness through which they can grab opportunities and avoid
threat by improving weakness. While this company faced one major issues i.e. related to funding
and for this company's management need to identify and convince stakeholders. There is various
type of stakeholders which aid firm in attaining goal such as employees, investors, owner,
customers and so on (Chon and Yu, 2012). The respective company need to conduct analysis of
their corporate generic strategy for which they can adopt porter's generic model. That will help
them in identifying competitive issues and through this firm's manager. Moreover during

conducting their business Das Black Forest Hotel face various risk and issues which may impact
on their business operating and function, so it is necessary for them to develop strategies and
plans accordingly and in effective manner.
Business Definition
Business is defining as a company at which employees or peoples work together in order
to attain there as well as company's goal. At respective place peoples develop strategies and plan
in order to sales products as well as services of a company so that they can earn huge
profitability ratio and market shares (Brotherton, 2012). The meaning of word business is doing
thing or activities and it is coming from word busy. Main purpose of a company for conducting a
business is to serve their customers and generate profit so that they can sustain in marketplace for
a long time duration. Das Black Forest Hotel is going to introduce their business in Germany.
They are going to offer variety of products and services which attract customers and encourage
them to visit their hotel. The respective hotel is situated at one of the famous and tourist place of
Germany i.e. black forest which is mountain region at south-west Germany. It is an evergreen
forests as well as picturesque village which attract visitors and encourage them to spend time at
this place. Das Black Forest Hotel are going to offer quality services at reasonable price like they
offer quality and clean rooms, they also offer free welcome drink, free breakfast and Wi – Fi.
Along with this the decoration of hotel is also attractive and them base according to location. The
respective hotel also going to provide other services such rooftop restaurant, transportation,
boating, site scene at Triberg waterfall and some other location.
Vision, Mission, Goals, Objectives
It is essential for a company or an individual to develop goal, objective, mission and
vision when they are planning to expand their business or introduce their business. This is so
because through it they able to design as well as develop proper strategies which help them in
conducting work in effective manner (Sloan, Legrand and Simons, 2014). Along with this by
proper setting of goal, objective, mission and vision company able to attain their target in
effective way as well as it also leads to generation of huge profitability ratio. The goal, objective,
mission and vision develop by Das Black Forest Hotel are given below: -
 Mission: As per the view point of Rizwan Khurram, 2019, It is describing as a short
statement which describe about why respective company is existing and what is their
overall goal (Vision and mission, 2019). Moreover, it will also include operations that

will be adopted by a company in order to attain their goal and this will also describe
about product as well as services which are offered to customers. In respect of Das Black
Forest Hotel is to provide quality and affordable services to its potential customers so that
their requirement gets fulfil as well as they feel satisfied.
 Vision: According to the prespective of Britt Skrabanek, 2019, It is defined as a
statement which provide declaration of a company's objective and this will also provide
guidance in order to take internal decision making (Difference Between Vision and
Mission Statements, 2019). It is not always used or adopt by business organisation, it is
also adopting or develop by non-profit government bodies. It is also describing as a
statement which help in determining the future capabilities. In respect of Das Black
Forest Hotel their vision is to provide quality services to customers so that they feel
connected and satisfied from hotel and staffs (Xu and Gursoy, 2015). Along with this
they also want to expand their business in diverse location of Germany.
 Goal: According to definition given on business dictionary, 2019, Goal is defining as
those activities as well as standard which must performed or conduct by staffs so that
company able to attain their mission in effective manner (goal, 2019). Goal of a firm is
considering as more particular them their mission statements. This is so because it
includes specific level of accomplishment which can be determine or measured by
management. Along with this goal statement is develop for long term. In respect of Das
Black Forest Hotel their goal is to expand their business in three more popular destination
of Germany in upcoming 2 years i.e. Neuschwanstein, Rhine Valley and Wetter Stein
Mountain Range.
 Objective: As per the article given at Market Business News, 2019, It is describing as a
company's aim which they want to attain which help them in fulfil their goal (What is an
objective? Definition and meaning, 2019). This is considering as strategy which
developed by a company in order to attain their goal. It is generally considering as short
term goal which help them in accomplishing long term objective in particular time
duration (Bowie and Buttle, 2013). Along with this it is basically consider as a time
frame as well as list of resources which are required by a firm in order to attain their goal.
The objective of Das Black Forest Hotel is that they want to effectively establish their
business at Black Forest so that they expand business at another location of Germany.

By developing or designing vision, mission, goal and object Das Black Forest Hotel able
to conduct their activities systematically which leads to attainment of target in proper manner.
SWOT Analysis
SWOT Analysis is describing as a method or technique which can be used by a company
or an individual in order to identify strength, weakness, opportunities and threat that must be
related to competition of business and planning of project (Bharwani and Butt, 2012). Through
this a firm able to know about their weakness which they can improve so that they can attain
their objective in effective manner by completing work properly. In respect of Das Black Forest
Hotel they conduct their SWOT analysis in order to identify their effectiveness and weakness,
which is mentioned below: -
Strength Weaknesses
 Location: The respective hotel is going
to operate their business at one of the
most attractive location of Germany
which attract more and more
customers. This will lead to hotel
business and profit. According to graph
Germany is ranked third in world's top
tourism spenders.
 Investors and Funds: It is major
weakness of Das Black Forest Hotel
because they are new in respective area
so it is difficult for them to attract
investors for gaining funds. Along with
this at initial stage they also not able to
generate huge profitability ratio as
comparison to other hotel.
 Brand awareness: The respective
company is new due to which there are
very less people who know about them
that may impact on their business and
profit shares (Chon, 2012).
Illustration 1: Tourism spending
(Source: Tourism spending. 2019)

 Skilled and trained employees: Das
Black Forest Hotel train their
employees so that they treat their
customers in effective manner. This
will also help in satisfy customers need
effectively and this will enhance their
goodwill at marketplace.
 Price: The respective company going
to offer wide variety of services as well
as products at reasonable price which
help them in convincing customers to
stay at their hotel.
Opportunities Threat
 Enhance brand Awareness: Through
this opportunity Das Black Forest hotel
able to enhance their awareness at
marketplace which help them in
gaining huge profits and this will also
increase their goodwill at market.
 Enhance in hospitality industry: It is
major opportunities for respective hotel
that hospitality industry is growing day
by day in Germany. So Das Black
Forest Hotel can run as well as expand
their business effectively.
 Competition: It is one of the major
threat face by Das Black Forest Hotel,
that there is various other hotel which
are operating their business at
respective place from so many years.
Such as Munnar Black Forest and many
more (Yoo and Bai, 2013).

 Budget Fluctuation: It is describing as
a threat because if there is fluctuation in
hotel budget they need to redesign
whole strategy which is very hectic for
Das Black Forest Hotel.
Stakeholders
Stakeholder is defined as a person or a group of person who can affect to get affected by
actions, policies, rules and objective of a company. There are several type of stakeholders in an
organization such as owner, government, customers, employees, suppliers, unions, directors,
creditors and many more. These stakeholders may have positive or negative interest in activities
of a firm. In respect of Das Black Forest Hotel, they have various stakeholder which help them in
conducting their work in effective manner, some major of them are explain below: -
 Employees: These stake holder's contribution is major because they conduct each and
every activity so that their company attain their goal and objective. In respective hotel
these stakeholders generally follow the guideline or instruction in order to conduct their
work in effective manner so that they can attain their objective. In order to done all
Illustration 2: Industry Trends
(Source: Industry Trends. 2019) Illustration 3: Number of hotels and similar
accommodation establishments in Germany in
2017, by degree of urbanization
(Source: Number of hotels and similar
accommodation establishments in Germany in
2017, by degree of urbanization. 2019)

activity these stakeholders required several things such as reward, salary, incentives and
many more.
 Potential Customers: It is essential stakeholder of a firm because it is existing for the
customers and these service users help them in keeping business going (Millar, Mayer
and Baloglu, 2012). For Das Black Forest Hotel, it is necessary that during develop
strategies they must consider respective stakeholders needs as well as requirements.
 Owner: The owner of a business is considering as one of the most important stakeholder
who contribute their capital as well as equity in order to run their business in effective
manner. The owner can be a few members which is consider as partnership. In respect of
respective hotel, it is owned by single person.
 Government: Every companies are directly linked with this stakeholder because when a
firm is conducting their business they need to consider each and every factor developed
by government. These can be national, central, state or local. In respect of respective
hotel, they are operating in hospitality industry so it is necessary for them to consider
policies and rules developed by this stakeholder.
 Press and media: It is describing as a stakeholder who can enhance the popularity of the
firm or decrease it badly (MokSparks and Kadampully, 2013). For every business it is
necessary to develop as well as maintain effective relationship with these stakeholders. In
respect of Das Black Forest Hotel by maintaining effective relationship with these
stakeholders they able to enhance their brand awareness at marketplace of Germany.
These stakeholders help as well as guide Das Black Forest Hotel in conducting their
business in effective manner so that they can earn huge profitability ratio along with market
shares.

Generic Corporate Strategy
It is defining as a technique or tool which is develop by a company in order to analysis
their competitive advancement at a marketplace (Wearne and Morrison, 2013). Through this they
able to determine that they are offering proper products and services according to customer’s
requirement or not. This will also help in developing decision in effectively which help in
gaining advancement at a potential marketplace. For this Das Black Forest Hotel adopt Porter's
Generic competitive strategy which help in determining competitive advancement, explanation
of this is given below: -
 Cost Leadership: It is describing as a technique which is adopted by a company in order
to set low price of their products and services at their potential marketplace which is at
wide level. For this an organisation need to conduct several things such as reduce of
production and other cost, reduce cost of supply chain, remove unessential stage or
activities and so on. In respect of respective company if they adopt this strategy they need
to reduce their cost and for this they need to minimise their cost of supply chain, reduce
in cost of product, adopt resources which is low in price and so on.
 Differentiation: It is defining as a technique in which a company will offer new and
unique products and services to their customers. Through which they able to attract more
and more customers who will encourage to purchase their products and services. It is
generally use for covering wide market area and gaining huge competitive advancement
Illustration 4: Porter's Generic Strategies
(Source: Porter's Generic Strategies, 2019)

(Sigala, Christou and Gretzel, 2012). In respect of Das Black Forest Hotel, according to
this strategy they will provide unique and innovative services as well as products to their
potential customers. Through which they able to attract them and encourage to stay at
their hotel.
 Focus: It is defining as a strategy which is adopted by a firm when they are dealing in
narrow market. At this level a company develop each and every strategy or products and
services for customers of small marketplace. In respect of respective company when they
will adopt this strategy they will develop product and services for small market. By
adopting cost focus, they will offer products as well as services at low price so that
customers can easily adopt it effectively. On the other hand, if respective hotel adopt
differentiation focus they will develop unique and creative product but for narrow
marketplace.
In respect of Das Black Forest Hotel they can adopt differentiation strategy and according
to this they must offer products and services which are unique as well as attractive from their
competitors.
Risks and key issues to be addressed
It refers to problems as well as issues which are face by a company while conducting
their business or expanding their business and it is essential for a firm to consider these risk
while expanding their business (Mattsson and Orfila, 2014). There are various risk and key
issues which are face by a company such as financial risk, competition, lack of resources, lack of
customer’s awareness and many more. This issues will directly as well as indirectly impact on
functions of a firm. Some of the major risk and issues by which Das Black Forest Hotel go
through are mentioned below: -
Risk face by Das Black Forest Hotel:
There are several risk which are face by respective hotel when they are opening their
hotel at Germany, some major of them are explain below: -
 Property risk: It refers to risk that is face by respective hotel while they purchase land
and start constructing hotel (Kasemsap, 2016). They may face several risks which is
unexpected like cause of sudden fire due to fault outlet and this cause damage of
furniture, inventories, decorative items, electronics, equipments and so on.

 Legal risk: It is one of the major risk which is face by a company when they start
running business. This is so because respective company need to consider various legal
practices, rules and regulation while starting operating business at hospitality industry. So
it is necessary for them to follow legal practices as well as conduct insurance so it will
save their money.
Key issues face by Das Black Forest Hotel:
While respective company introducing their business at Germany they face several issues
which impact their function, several of them are mentioned below: -
 Lack of funds: It is defining as issues which may face by respective hotel while
developing their business at Germany. It is defining as situation when this firm have less
funds as well as investors. Moreover, they are also new in market due to which no one
will easily convinced to provide them fund.
 Poor market research: This issue will occur when respective company didn't conduct
market research in proper manner due to which they not able to understand need and
requirement of customers (Millar and Park, 2013). That will impact on their profit and
develop as a risk.
It is essential for Das Black Forest Hotel to conduct proper analysis so that they can
easily resolve or overcome issues as well as risk in proper as well as effective manner.
CONCLUSION
By evaluating above mentioned points it can be evaluate and summarised that for every
company it is essential to develop business strategy. This is so because it will provide them
guidelines which help them in expanding business and opening business at new location. For this
they need to conduct various things as well as analysis by using diverse methods or strategies
such as SWOT analysis which help in analysing market as well as it will also help in
understanding capabilities and strengths. Along with this it is also essential to develop vision,
mission, goal and objective of a business so that they they design strategies and plans
accordingly which help in attaining objective effectively. During this company also need to
identify risk and issues that may occur while conducting activities. This is so because through it
management able to develop strategies and policies in effective manner. In addition to this in a
company there are various stakeholders which help them in conducting work in effective way
such as customers, suppliers, government, investors and many more. While operating business at