Strategic Analysis of Best Western Sure Hotel: Hospitality Report

This report provides a comprehensive analysis of the business strategy employed by Sure Hotel, a hospitality business. The analysis begins with an examination of the macro-environment using the PESTEL framework, assessing the impact of political, economic, social, technological, environmental, and legal factors on the organization. The internal environment is then evaluated through the McKinsey 7-S framework and SWOT analysis, identifying strengths, weaknesses, opportunities, and threats. The report further applies Porter's Five Forces model to assess the competitive forces within the market sector. Finally, the report explores the application of various theories, concepts, and models for strategic planning, providing a holistic view of Sure Hotel's strategic approach.

Hospitality Business
Strategy

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1 ................................................................................................................................................3
P1 Apply appropriate frameworks & examine impact/ influence of macro environment on a
given hospitality organisation and its strategies..............................................................................3
TASK 2.................................................................................................................................................5
P2 Analyse internal environment/ capabilities of hospitality corporation using appropriate
frameworks......................................................................................................................................5
TASK 3.................................................................................................................................................7
P3 Apply Porter’s Five Forces model, evaluate competitive forces of a given market sector........7
TASK 4.................................................................................................................................................8
P4 Apply a range of theories, concepts and models, interpret & implement strategic planning.....8
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13
Books & Journal:...........................................................................................................................13

INTRODUCTION
Hospitality industry is is evolving with changing period of time & is developing at rapid
scale. This industry provides services such as food & drink, lodging, event planning etc. In
business sector, it is essential to use strategies so that objectives are achieved (González-Rodríguez,
2018). Best Western Hotels & Resorts, a largest hotel chain headquartered in U.S. The hotel chain
has various types of brands such as Sure Hotel, Sure Hotel Plus, Best Western Premier etc. In this
report, brand of Best Western Hotel which have been taken is Sure Hotel which is located in U.K.
This report comprises of impact of macro environment on enterprise, internal environment
capabilities, Porter Five Forces model and range of theories, concepts & models with strategic
planning.
TASK 1
P1 Apply appropriate frameworks & examine impact/ influence of macro environment on a given
hospitality organisation and its strategies
Business environment is essential to be focused as it impacts upon overall organisational
structure. In hospitality industry, it is crucial for enterprise to implement a proper scanning of
environment so that resources are used efficiently. Also, these impact upon strategies of entity at
wider scale. Macro environment refers to factors which impact upon entity externally & are non-
controllable (Lopes, 2016). It is essential to identify these determinants so that everything within
entity is done appropriately. It is necessary to be aware about these factors so that decision for
business improvement are taken appropriately. So, to determine the impacts of Sure Hotel,
PESTEL analysis is being explained below-
PESTEL Analysis-
It is a framework is utilized by entity to examine or analyse external factors affecting
enterprise functions or operations. It comprises of several components which are discussed below-
Political Factors-
It is a factor in which it depicts at what level government interfere within a economy. This
includes element such as political stability, government policy, political stability or instability etc.
In relation with Sure Hotels, there is proper stability of political & government activities which
makes it easy for them to operate their functions in proper manner.
Economic factor-
It is another factor of PESTEL analysis which it comprises of inflation & deflation rate,

interest rates, unemployment rates etc. These type of factors has direct effect on long term impact
on economy. In relevance with chosen entity, due to stability of economy of U.K they are Sure
Hotel is able to expand their business & level of activities in appropriate way.
Social factor-
In this it includes elements such as religion, culture, norms, values etc. It is essential to
focus on these social factors so that products or services are provided to customers after considering
these variables. In reference with Sure Hotel, they carry out business activities with properly
focusing on social norms & guidelines. It improves their goodwill in market at wider level. It also
have impact on organisational strategy as they implement their marketing strategies according while
considering these social factors (Ren, 2018).
Technological factor-
In this digital era, use of internet has widen and which enhances use of technology within
business sector. It comprises of element such as use of artificial intelligence, advance use of
software & tools. In reference with selected enterprise, they use technology within their
management such as they use secure software & encrypted systems through they protect details of
every users.
Environmental-
In this element, it focuses on pollution, weather climate, green agenda environment
protection & many more. These have direct impact on goodwill of entity as well as strategy. It is
essential for hospitality industry to focus on these elements so that strategies are carried out. In
viewpoint of chosen entity, they maintain CSR which is corporate social responsibility & is
maintained by them effectively (Islam, 2017).
Legal-
In this, it is factor which involves elements such as engagements, contracts, employment
laws, antitrust laws & many more. In viewpoint of chosen corporation, HR & legal department of
firm maker ensure that every activities is being done with proper considerations of these
legislations.
Macro environment impacts upon organisational strategy of entity as they have environment
comprises of economy & changes are meant to occur. Thus, in relevance with selected enterprise
they have to keep track these changes to follow market trends appropriately. It affects the strategy
of entity in both positive and negative way. Therefore, it is also stated that macro environment has
deep impact on entity's overall structure & makes difficult for company to use their strategies

effectively. Furthermore, PESTEL analysis has been adopted to examine or understand macro
environment. It too impact upon strategies of a firm at wider scale.
TASK 2
P2 Analyse internal environment/ capabilities of hospitality corporation using appropriate
frameworks
Internal environment refers to those environment which includes internal factors which
impacts upon enterprise structure internally. These are controllable & it is also easy to make
changes in these factors. So, to examine them Mc Kinsey & VRIO Chain Analysis is being used by
Sure Hotel & which is further explained below-
Mc Kinsey Framework
It is a framework which is used by entity in which it comprise of seven internal factors
which are used and interconnected through objectives are achieved. Through proper analysis of
these seven internal elements, it is easy to make decisions regarding growth & development of
enterprise. In relevance with chosen hotel, they also used this framework & is mentioned as follow-
Strategy- It is internal factor in which it reflects the tactics which is used to gain
competitive advantage in market. In relation with selected firm, they uses strategies when
competition is high or there is need to expand business. It is duty of HR manager to make ensure
that appropriate strategies are adopted so that positive outcomes are gained (Nekrasov, 2017).
Structure- It reflects the workflow of organisation & also depicts who report to whom. The
chosen firm has hierarchical structure in which employees have to work according to decisions
making of superiors & they have to report to team leaders of respective department.
System- In this, it shows procedures, process, routines of staff which depicts the way job
is needed to be done. Sure Hotel have stable system on basis of which it is easy to make decisions
within business. Hospitality corporation mostly have upgrade system to provide user experienced.
Shared values- This is also essential internal element in which it values are being focused
& it reflects the corporate culture of business. Thus, in viewpoint of selected hotel they work in
ethical way & use appropriate business practices (Gökdeniz, 2017).
Style- In this internal element, it depicts the pattern of groups & behaviour. Thus, selected
hotel has mangers, leaders, directors who have different pattern of behaviour.
Staff- This internal element shows subordinates, people capabilities which are responsible
for completion of work on time. So, selected hotel has skilled subordinates who complete their

work on time. They can achieve objective of company through using knowledge & skills employees
in most effective way.
Skills- In this, it refers to inner capabilities & ability which are used in organisation core
competencies. It is seen that selected enterprise uses subordinate skills in such way that effective
results are obtained.
Therefore, after examining of above internal framework it is seen that it is easy to achieve
competitive benefits as well as organisational goals. It is duty of manager make assure these
interconnected with each other so that both long term & short term objectives are achieved.
Without accessing to internal capability, it is jot possible to improve performance of organisation &
make effective use of decision making.
Further after analysing above internal framework results of these is summarised below
through applying SWOT framework. It is framework which is utilized by entity to identify
strength, weakness, opportunity or threat.
Strength
 Main strength of Sure Hotel is that it
provides affordable services due to
which they have larger customer base.
 Further, is that they have wide variety of
services which reflects their size of
organisation (Pesce, 2018).
 The accommodation services are the best
of this hotel and it also review as five
star by various visitors.
 The policies they use such as smoking
area is on the corner of restaurant of the
hotel so that other guest will not face any
issue is the best thing of the hotel.
Weakness
 They pay less wages to employees & due
to which turnover rate is high.
 Another weakness is that they are
unable to hire more employees due to
COVID 19 situations (Faturrohman,
2018).
 They should increase the training of staff
members in a more advance way so that
employees will provide best services to
the customers. It is because from few
years customers are giving negative
feedback in terms of service provided by
the staff to the customers.
Opportunity
 Opportunity of Sure Hotel is that they
can merge up with other brands through
they can gain more profit.
 They should increase their facilities of
disabled people so that they will also
Threat
 Due to changing market trends, they can
incurred with loss of resources, structure
etc.
 Another threat is that with increased
expectation of customers, hotel might

enjoy their time in the hotel. loose their brand value in market.
So, above specified paragraph shows that by examining of internal capabilities it is easy to
use resources in most efficient way. So, two frameworks have been discussed briefly which are
SWOT & Mc Kinsey. By properly understanding of these frameworks it is easy to make decisions
about company.
TASK 3
P3 Apply Porter’s Five Forces model, evaluate competitive forces of a given market sector
Market is wider and broader which require high level of knowledge & expertise. With rise of
competition in market, it has become essential to focus on these competitive forces which assist in
achieve of objectives in appropriate way. To understand competitive forces of business & market,
Porter Five Forces model has been used to examine these forces.
Porter Five Forces Model-
It is model which is used by enterprise to examine forces which shape the business & assist
in identifying weakness & strength. It is an effective model which used for development of business
growth & development through using efficient resources. With help of this framework, it is easy to
make decision (Verboncu, 2016). The importance of porters five forces model states that it helps the
organisation to understand the factors affecting profitability in a specific industry, and can help to
inform decisions relating to: whether to enter a specific industry; whether to increase capacity in a
specific industry; and developing competitive strategies. But the framework also have few
limitations such as there has been lacking in the quantitative dimensions, complex organisations
cannot easily uses the framework, it is inapplicable for the non-profit organisation and it is too
general analytical framework. So, analysis on the basis of Porter Five Forces model for Sure hotel
has been listed below-
Bargaining power of suppliers- It is force which shape business as it depicts power of
suppliers within business. In reference with chosen hotel, bargaining power of supplier is low
because entity in market there are wide number of suppliers available. Vendors are being considered
as important part of enterprise because they are sources through which products are available top
customers. Without suppliers it is not possible to firm to distribute their products to customers.
Thus, it is crucial to choose most appropriate vendors (Bensecilas, 2016).
Bargaining power of buyers- This another competitive force in which power of customer

affects the business. In this, buyers power is high when customers are few in numbers. Buying also
depends upon buying quantity of customer if they are buying in bulk then they have a high power.
In reference with selected entity, buyers have low power because thy are large in number.
Competitive forces- In this force, it shows intensity of competition within same field or
business sector. It reflects how many competitors are there which can impact upon product &
structure. Competition is high when industry is growing & low when it is at break even analysis. In
viewpoint of chosen hotel, they too are affected by competitive forces such as they have many
competitors like Choice Hotels, Hilton etc.
Threat of new entrants- Business sector is expanding at larger scale & many new entities
are entering into a market. In hospitality industry, many new entrants are coming in market with
new services and prices. Threat of new entrants is high when there is less government involvement
in market. So, there are many small and medium hotels who have entered in market but it is difficult
for them to attract customers in this competitive world (González-Rodríguez, 2018).
Threat of substitutes- In market there are various types of products & services available
with varieties of options. A substitute is defined as replacement of product or service. Customers
easily switch to other products when they find satisfaction somewhere else. It is important to be
aware about substitutes products. In relation with selected hotel, threat of substitute is relatively
high because there are many other hotels which deliver same services.
After examining of above matter, it is seen that it is crucial to use appropriate frameworks
so that objectives are achieved within a period of time. Through understanding of this model, it is
easy to implement planning within a business. Moreover, it provide a detailed information about
market & changing trends according to which it is easier to carry out all business activities.
TASK 4
P4 Apply a range of theories, concepts and models, interpret & implement strategic planning
In an organisation, it is necessary to be aware about that strategies are necessary to be
properly analysed through which competitive advantage is easily gained. Without proper
implementation of tactics or strategies it is not possible to survive in this competitive market of
hospitality business. In relevance with selected hotel, they by carrying out appropriate market
analysis they are able to make decisions within a business sector properly (Lopes, 2016). It is time
consuming procedure as it requires a effort, skills, application of areas etc. Manager of a selected
hotel assures that strategies are adopted with proper considerations so hat problems or issues do not

arise. So, Ansoff model has been discussed below-
In order to devise strategies in effective way, there are some tool that can used company. In
context of chosen firm they use Ansoff's matrix, which assist management team to design and
formulate the effective strategies for the growth of business. In which it includes four step which
are explained below in relevance to selected firm:
Market penetration: This is the growth strategies which mainly focus on provision of
existing services in existing market. This will offer a strategic edge to hotel Sure as this entity has
already a loyal base of customers within United Nation which are not willing to switch the services.
The market penetration will helps company in order to in creates productivity and profitability of
firm by garbing large number of people for their services.
Market expansion: The another term that is used for market expansion is market
development. In this growth strategies the company focuses on expanding their market with existing
services. The superlative asset of execution of market expansion is that it gives assistance to
enterprise for influencing and grabbing new consumers towards their services by gaining entry at
new marketplace. This will gives positive outcome in relation to increasing the sales and profit
margin of company.
Product expansion: In hospitality industry production expansion is considered as services
expansion. This is an another strategies of growth in which expansion of product can be done in
existing market. Expansion of product means launching new product in current market. This will
helps company in generating revenue by enhancing the sales as it assist management team in
meeting the demands and preferences of consumers in existing market. Sure hotel have opportunity
to formulates growth strategies by gaining access into indoor pool services as this will evince the
increment in consumers base for firm in UK (Ren, 2018).
Diversification: This growth strategy is considered as a risky as it emphasises on provision
of new product with new marketplace. In this the chances of failure is high connected with
execution of diversification because the new consumer will not easily accept any new services. This
strategy will acts as expensive strategy because the management team requires an expertises in
order to explore market for devising effective strategies as well as various marketing plan or
campaigns need to be conducted for promoting new services and providing awareness to consumer
for new services at new location (Islam, 2017).
After evaluation of all above mentioned developed strategies, it has been determined that
market penetration would be feasible strategy for hotel Sure in order to attain business growth at
marketplace. This is just because, the firm is already well known at marketplace and have well
established consumer base who are very loyal towards their services. Therefore, focussing on
existing services in current market is an excellent opportunity to Sure Hotel for increasing the sales

and profit margin of company. By doing this selected firm will be able to achieve its predetermined
goal within stipulated time.
Strategic implementation planning
It refers to developing a plan in strategical way to achieve organisational goals &
objectives. With help of implementing strategic plan, it is easy to increase sustainability period of
business for longer period of time. In reference with chosen hotel, they make assures that
implementation of planning strategy is done in such a way that competitive advantage is gained at
all aspects. So, strategic implementation planning is further mentioned below-
 Mission- Main mission of hotel is to provide total customer satisfaction.
 Vision- Vision of firm is to be the global leader of in hospitality sector.
 Objective-
 To provide high quality of service to customers so that high level of satisfaction is achieved.
 To access to market & resources and customers at wider scale.
 To increase brand goodwill in market & get recognized at both national & international
level.
SMART OBJECTIVES
Smart objectives are those which are used by enterprise with aim of achieving goals in
strategical way. It includes several types of components which are described below-
Specific- This element states that it is essential to be specific regarding what goals & when
they are needed to be achieved. Being specific leads to clearing of ideas & mind set of a individual.
In reference with selected firm, they are specific about strategy of adopting market penetration
strategy in which different services will be provided to customers depending upon geographic
variable (Nekrasov, 2017).
Measurable- In this, it reflects that whether adopted strategy or idea has been quantifiable
to achieve success or not. So, measuring can be done through determining number of units sold. In
relation with chosen hotel, they can measure success through number of services or rooms used by
customers.
Achievable- In this, strategy which has been adopted is to be analysed whether when using
it goals are achievable or not. As, in viewpoint of selected hotel they are using differentiation
strategy & it easy to achieve goals (Gökdeniz, 2017).
Time bound- It is last component in which main focus is on time period & it is necessary

to examine that all activities related with strategy are completed within a time interval. It is crucial
to have focus on time limit of every activity so that targets are achieved on given period of time.
Thus, it has been stated that it is necessary to implement strategic planning in effective way
which results in achieving of objectives effectively.
Recommendation
From above examining of matter, it is stated that strategic direction is necessary to be
focused so that it is easy to achieve objectives. Therefore, market penetration is to be considered as
most appropriate strategic direction which can be chosen by hotel (Pesce, 2018).
 It is recommended that hotel need to use market penetration strategy so that they are able to
expand their services & business in proper manner.
 Further, it is also recommended that they should be active while choosing of strategic
direction (Faturrohman, 2018).

CONCLUSION
After a brief analysis of above report, it has been seen that hospitality business strategy is
essential concept which is required to be adopted. This report gives brief knowledge about how
strategies in hospitality sectors are used to achieve goals. So, discussions have been made about
PESTEL, Mc Kinsey, SWOT Analysis, Porter Five Forces Model. Further, Ansoff matrix is briefly
explained. Therefore it has been evaluated that it is necessary to use strategies in business sector
which leads to using of resources & tools with proper market analysis.

REFERENCES
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Tsatsoula, 2018. Application of Ansoff's Matrix-Methodology: Marketing Growth Strategies For
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