Impact of Macro Environment on Hospitality Business: Radisson Blu

This report provides a comprehensive analysis of the business strategy of Radisson Blu Hotels. It begins by examining the impact of the macro-environment using the PESTEL framework, considering political, economic, social, technological, environmental, and legal factors affecting the hospitality industry. The report then delves into the internal environment of Radisson Blu, utilizing SWOT and VRIO analyses to assess its strengths, weaknesses, opportunities, threats, and internal capabilities. Further analysis includes an evaluation of competitive forces using Porter's Five Forces Model, followed by the application of strategic management planning theories, concepts, and models. The report aims to provide a detailed understanding of Radisson Blu's strategic positioning and decision-making processes within the competitive hospitality landscape.

Hospitality Business
Strategy

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Applying appropriate frameworks, analyze the impact and influence of the macro environment
on a given hospitality organization and its strategies..................................................................3
TASK 2............................................................................................................................................5
P2 Using frameworks to analyse the internal environment and capability of a hospitality
business organisation...................................................................................................................5
TASK 3............................................................................................................................................7
P3 Evaluation of the competitive forces of market for the hospitality organisation with the
application of Porter’s Five Forces Model...................................................................................7
TASK 4............................................................................................................................................8
P4 Application of a range of theory, concept and models to interpret and devise strategic
management planning for a hospitality business organisation.....................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Forming strategies is very much vital for any business. Strategies are formed after obtaining
the missions and vision of the organization. The organization forms the strategies in such a way
that they help into the attainment of organizational goal and objectives. The strategies are formed
after evaluating the internal and external environmental factor which does affect the activities
and operations of a business. The internal environment includes the employees, cultures, values,
structure, system, mission and objectives and etc. These internal factors can get under control by
an organization. Whereas external factors are the factors which cannot get into the control of an
organization but does affect the operations and working of it. Such factors include political,
economical, technological, social, environmental and legal. This report has taken an example if a
hospitality business name Radisson Blu Hotels. Radisson Blu is an international company which
has its hotel chains at around 380 locations. The company was founded in the year 1909 by
Federico J. Gonzalez Tejera.
This report discusses about the macro environment which affects the working of an organizations
strategic decisions. Proper evaluation of internal working of an organization is also included into
this report. Apart from this, this report also includes the Porter’s five force model and theories
which helps in forming the strategic planning.
TASK 1
Applying appropriate frameworks, analyze the impact and influence of the macro environment
on a given hospitality organization and its strategies
Macro environment are the factors which are not in control of any organization as they
independently in the environment. A business cannot eliminate this risk fully but can form the
policies in such a way that its effect can get reduce onto the business operations. To analyze
these macro environment which puts impact upon organization working can be evaluated
through Pestel analysis. Pestel analysis is a framework which the organization can analyze these
external environment. This enables the company in recognizing the early risks which a company
might can face. The Pestel analysis of Radisson Blu Hotel is as follows:
Political factor of Radisson Blu:
The political factor includes the degree towards which the government can exercise
control upon the industries. The rules and regulation which is formed by the ruling party of that
country come in the part of political factor. Foreign trade policies, taxation policies, stability or
instability of government, fiscal policies and etc are all come under political factor (Altinay,
Paraskevas and Jang, 2015). The political government of the UK is very much stable which
benefits the organizations or the companies which operate in UK, as their business operations
can be stable and so does Radisson Blu Hotel. But the Hotel did face many issues in the year

2005 because of terrorism act into the country. Due to such terrorist attack the visitor rate or
percentage did fall down to some level, which also affects the performance of Radisson Blu also.
Economic factor of Radisson Blu:
The economic factor includes the factor which contributes to the growth of economy. These
factors include the employment rates, the GDP rates, economic growth and the like. The
economic growth of the country UK is very much prosperous and good. Also the country has the
employment rate of about 75% which said to be a good thing about any nation. As in the case
with Radisson Blu, its performance gets impacted through National macroeconomics
environment. In the year 2012, the Olympics held into the country due to which all the hotels
into the country got booked. This becomes a huge profit for the company. Although the company
did face many issues at the time of Brexit (Bharadwaj and et. al.,2013). Due to Brexit the Hotel
booking get reduced as the visitors to the country get reduced, affecting the performance of the
hotel.
Social factor of Radisson Blu:
The social factor includes the attitude, perceptions, behavior, lifestyle and etc of the targeted.
From this the perception of the people would get to know about a particular topic. Over the past
numerous years, changes in patterns of utilization and requests of buyer has impacted the tasks in
each industry. Rising family unit salaries have asked the craving of individuals to have
excursions prompting an exponential development in the travel industry. Be that as it may, there
has been a lessening in family pay of individuals in UK and a noteworthy extent of individuals
can't manage the cost of a nice get-away which has introduced a danger for radisson Blu Hotel. It
has made the administration of the gathering take estimates which can improve its local
execution yet in addition presents an open door for the organization to take influence of the
worldwide activities and amplify the income from the global markets.
Technological Factor of Radisson Blu:
Intense changes and improvement in innovation have formed the shopper elements and tasks in
each industry. In-room innovation of hotel rooms has changes considerably with viewpoints, for
example, programmed key cards, wi-fi etcetera. Besides, the administration of the organization
needs to detail methodology for the extension of online deals stage and exhibiting the
administrations being offered by the organization to an a lot more extensive crowd and potential
clients utilizing web based life devices and procedures encouraged by the advancement in
innovation (Bowie and et. al.,2016).
Environmental Fator:
Expanding the travel industry exercises everywhere throughout the world has likewise added to a
critical ascent in the measure of carbon impressions and arrival of ozone harming substances

causing ozone exhaustion. Natural concerns and issues have increased an enormous mindfulness
in the previous hardly any years which makes it basic for the administration of Radisson Blue
Hotels to improve their supportability remaining by receiving eco-accommodating approaches.
Efficient power vitality utilization and waste administration has been actualized at Radisson Blue
Hotels and the administration has a chance to take an early lead and increment its generosity and
serious situation in the business.
Legal factor of Radisson Blu:
Lawful components present a test for the administration of Radisson Blu Hotel since the tasks of
the organization are stretched out to in excess of 40 nations in four distinct mainlands and rules
and guideline relations to the travel industry contrasts in every nation which makes it hard for the
administration to get the lawful difficulties right.
TASK 2
P2 Using frameworks to analyse the internal environment and capability of a hospitality business
organisation.
SWOT Analysis
SWOT Analysis can be characterized as the examination led by an association to decide
its inside strengths and weakness and because of it, opportunities and threats. Here is an
examination of the SWOT analysis of Radisson Blu Hotels:
Strengths: Radisson Blu Hotel has an away from of worker fulfillment and expanding
fulfillment levels of clients with the assistance of information got through sources.
Representative maintenance is one of the greatest strengths of the organization. A solid client
relationship the board is likewise a significant quality (Brotherton, 2012). Because of the long
understanding of numerous years, the brand picture of radisson Blu Hotel is likewise a quality.
Radisson Blu Hotel is the main gathering of hotels in UK which makes an immense preferred
position for the organization.
Weakness: Money related limitations and restricted budgetary assets is one of the greatest
shortcoming of Radisson Blu Hotels and the gainfulness of the organization has decreased to an
underneath industry normal in the previous not many years. Hotel has a picture of extravagance
and premium rooms which is making a snag for the organization as for diminishing costs by the
contenders to take into account the extra requests and needs of buyer thinking about the world
monetary emergency. Be that as it may, lessening costs will affect the picture of the Radisson
Blu Hotels which is one of the greatest shortcoming of the organization.

Opportunities: Expanding the travel industry in UK has been a significant open door for the
Radisson Blu Hotel to augment its income from the local markets and a few changes should be
finished by the supervisors in its valuing arrangement to build the range of potential clients.
Likewise, a current online nearness and quick mechanical advancements have been an open door
for the organization to advance the administrations which are being offered utilizing on the web
devices and increment deals from online stages (Evans, 2015).
Threats: Expanding rivalry and a constrained money related assets is perhaps the greatest
danger for Radisson Blu Hotel as it confines the ability of the organization to offer limits and
utilize more deals special instruments to battle the opposition. There is a pressing requirement
for the administration of the organization to improve its gainfulness which can help the
organization in keeping up its serious situation in the business.
Vrio analysis
VRIO Analysis is an apparatus or vital system which is applied to decide the capacity of inside
assets of an association to give long haul maintainable serious solidarity to the organization. It is
principally founded on the crucial that assets of an association can be utilized adequately to
acquire serious edge rather than statistical surveying. Here is an examination of inner ability of
Radisson Blu hotels with the utilization of VRIO system:
Valuable: Radisson Blu Hotels has a tremendous pool of numerous significant assets, for
example, solid brand picture, industry pioneer position in the local market of UK, high
incorporation of innovation, premium administrations and rooms, money related assets, steadfast
clients and a profoundly energetic and prepared workforce (Kim and et. al., 2012). These assets
are of most extreme significance for the organization and increase the value of the tasks of the
organization.
Rarity: It tends to be assessed that among the enormous pool of important assets, a few assets
held by Radisson Blu Hotels are additionally uncommon which are a superior wellspring of
inferring upper hand and edge. Assets, for example, profoundly prepared workforce, innovative
assets, solid brand picture, premium rooms and the modern chief position have a component of
irregularity. In any case, there exists numerous different brands which have money related assets
like Radisson Blu and faithful clients that are not uncommon and must be utilized by the
organization to determine upper hand for a brief period.
Imitable: It has been seen that mechanical assets held by radisson Blu Hotels are imitable with
the utilization and use of budgetary assets and each association nowadays is quick to coordinate
the most recent mechanical advancement henceforth these assets are effectively imitable. Albeit,
each association prepares and builds up its representatives however worker fulfillment has been a
procedure of radisson Blu Hotels for long which is a wellspring of inferring long haul upper hand
for the organization (Köseoglu and et. al.,2013). Alongside the HR, brand picture and premium

rooms are likewise exceptionally important and uncommon assets which are not imitable and can
be the potential wellspring of long haul upper hand.
Organization: All the assets held by Radisson Blu Hotels have been sorted out viably which
advances and encourages its most ideal use to infer serious edge for the business association.
Brand picture of the organization is in finished concordance with the top notch rooms and
exceptionally prepared workforce which guarantees offering great assistance to the clients for
additional improving the brand picture and keeping up the situation of industry pioneer in UK.
Based on above VRIO examination, it very well may be seen that radisson Blu Hotels have
numerous assets, for example, solid brand picture and a group of exceptionally prepared and
persuaded workforce which is fundamental in the cordiality business and can be the wellspring
of inferring long haul supported upper hand for the organization (Martínez, Pérez and Del
Bosque, 2014). Innovation and the business head position is additionally powerful for inferring a
momentary upper hand in the neighborliness business.
TASK 3
P3 Evaluation of the competitive forces of market for the hospitality organisation with the
application of Porter’s Five Forces Model.
The porter’s Five force model of Radisson Blu Hotels is as follows:
Bargaining power of buyers: Bargaining power of clients is an extremely solid power for the
Radisson Blu Hotels since there are countless firms and organizations which are occupied with
giving different sorts of the travel industry benefits in the accommodation business and the
exchanging costs are especially low for the buyers and thus, the board of the Radisson Blu
Hotels can't expand the cost of the administrations and are ruled by clients who are very value
delicate.
Threat of new entrant: Providers in the travel industry and neighborliness industry have a
feeble to direct bargaining power since the organizations are generally their own providers and
the greater part of the tasks are done inside (Sohn, Tang and Jang, 2013). Consequently, the
administration of Radisson Blu Hotels are in a solid situation to direct terms and get the best
nature of materials and different administrations from its providers at the best cost because of
low reliance and ease of exchanging.
Threats of substitute: Threat of substitutes is a power which is expanding for the Radisson Blu
Hotels since the organization has a picture of giving premium and extravagance experience to its
guests which often comes at a significant expense. Lodgings have increased wide ubiquity in the
previous not many years and pulls in more vacationer and solo voyagers who are on an exacting
spending plan. Subsequently, threat of substitutes is a solid power which subverts the serious
situation of radisson blu Hotels International.

Rivalry among competitors: Cordiality industry faces a vicious rivalry and there are numerous
organizations and organizations which are working at an exceptionally enormous scope and give
firm rivalry to the Radisson Blu Hotels. Occasion motel is among the key contenders of the
organization in UK and a great deal of different firms, for example, Marriott International and
TUI Group likewise rival Radisson blu hotels in the global markets (Tzortzaki and Mihiotis,
2012). Henceforth, the administration of radisson Blu needs to shape procedure and take
measures to keep up its serious edge in the business.
Based on above examination of Porter's five powers for Radisson Blu Hotels, it very well may be
dissected that the organization has a solid serious position particularly in the local market of UK
however with the expanding number of substitutes, new entrants, competition from large firms
and bartering intensity of clients, the administration is under a commitment to plan approaches
and procedure for future development and activities of the organization to keep up and determine
a supported serious edge in the drawn out mechanical condition.
TASK 4
P4 Application of a range of theory, concept and models to interpret and devise strategic
management planning for a hospitality business organisation.
Ansoff Growth Matrix:
Ansoff Growth Matrix is one of the basic structure and model of vital organization and the
executives which offers headings to the business directors which can be used for expanding the
business tasks and its turn of events and it also looks at the hazard related with each course of
key future growth for the association (Úbeda-García and et. al.,2014). It gives four particular
headings of vital future growth which are;
Market penetration: which suggests using instruments of deals advancement for expanding the
offer of existing items and administrations in existing markets,
Market development: which suggests offering existing items and administrations in new markets,
Product improvement or development: which implies moving new items and administrations in
the present markets for business advancement and
Diversification: which implies propelling new things and administrations in new markets for
future business advancement and expansion. The hazard related with each key growth heading
increments as we move further in the system.
Based on above examination of outer condition and inside quality of radisson Blu hotels market
penetration is the methodology which is being prescribed to the administration of the
organization and with powerful usage of different procedure for market penetration, Radisson

Blu Hotels can improve the benefit and income in the current markets (Wang and et. al.,2015).
Market penetration for the organization includes client closeness and utilization of online
nearness to make a marketing effort along the prerequisites and requirements of the organization
which includes a broad utilization of deals limited time instruments to battle the household just
as worldwide rivalry. Item improvement is likewise another system which can be of imperative
significance for the organization and it includes propelling items and administrations which are
focused for the explorers who can't manage the cost of the present premium and extravagance
section administrations offered by the organization. With the assistance of Market Penetration
and Product improvement, Radisson Blu Hotels can devise a key arrangement for future
development and advancement of the business activities and keep up a solid situation in the
cordiality business.
Strategic Management Plan:
The hotel Radisson Blu needs to develop strong cost effective strategies where they can
provide the unique services to the customers or guests at a price which is liked by everybody
(Webster, 2014). The services adopted by the Hotel should be Vogue and unique which enables
the customers to differentiate the hotel form all the other competitors. The strategies which is
been formwed by the company should promote sustainable tourism and development as this
concept is too much in boom into the market. Apart from this the hotel can work upon his R&D
department to bring up the new and innovative ideas. Market research can also help to analyze
and come up with creative ideas for updating the services provided. The company would be
witness a huge success and growth when it will adopt the differentiation in its operations.
CONCLUSION
From the report discuss above, the pestel analyzes has been performed to evaluate the
external factors for the business which put impacts upon the working of the organization. These
external factor are the political, social, economical, technological and so on. The internal
evaluation is also done in this report through SWOT and VRIO analysis. According to SWOT
the company has the major quality of the quality of services provided by the company and a
greater threat is the competition which it receives from the competitions. Apart from this the
porter’s five forces model and strategic plan is also included.

REFERENCES
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