Strategic Analysis of the Hospitality Business: GLH Hotel Report

This report provides a comprehensive analysis of the business strategy of GLH Hotel, a British-based global hospitality organization. It begins with an introduction to strategy and its importance in the hospitality sector. Part A delves into the internal and external environment of GLH Hotel, including a PESTLE analysis to evaluate macro-environmental factors like Brexit, economic fluctuations, and social trends, followed by a SWOT analysis to assess its strengths, weaknesses, opportunities, and threats. The VRIO analysis examines the value, rarity, imitability, and organization of GLH's resources. Furthermore, the report applies Porter's Five Forces model to analyze the competitive environment. Part B explores different strategic directions and models for strategic planning within the organization. The report concludes with a summary of the findings and provides references to support the analysis.

Hospitality Business
Strategy

Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Internal and external analysis of firm and organization’s capabilities........................................1
Analysis of competitive environment using Porter’s five forces model......................................5
PART B...........................................................................................................................................6
Different types of strategic directions using several models within an organization to make
strategic planning.........................................................................................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategy refers to the various plans if action in order to achieves targeted goals and
objectives in an effective manner. Strategy is one of the best essential tools used by every
business and industry to obtain several kinds of tactics so that firm can easily engage with
different battle that gives them better way to reach successful growth of business. On the other
side, Hospitality business strategy refers to the mixture of decision making process act by
business to accomplish needs and wants of firm. Therefore, it is considered as backbone of an
organization that gives them better position to firm in hospitality sector (Prebensen, Chen and
Uysal, 2018). Moreover, this assignment is based on GLH hotel which is British based global
hospitality organization headquartering in London, UK. It deals with hotel brand to provide and
offer best services to every people. Additionally, impact which macro environment has on
hospitality firm along with business strategies, internal environment and capabilities of firm,
Porter’s five forces model along with theories, models and concept of underpinning strategic
directions will get covered.
PART A
Internal and external analysis of firm and organization’s capabilities
Within the competitive scenario there are several business organizations in which they
are needed to evaluate macro environmental factor through using external resources that have
direct impact on an organization. Herein, PESTLE analysis in regards with GLH hotel, has been
specified below:
PESTEL Analysis:
It refers to the particular framework that determines the overall concept of marketing
principles. Additionally, this framework defines the several angles of firm to check entire
working idea or plan for future. Thus, GLH hotel use this analysis to know exact environmental
situation at marketplace (Han, Lee and Kim, 2018).
Political factor: This factor includes different kinds of political stability, government
policies, foreign trade and so many trade restrictions etc. In regards with GLH hotel, this factor
plays crucial role that impact on its entire business functions and operations. Herein, Brexit
considered as main factor that can be the reason of biggest change that mainly comes under the
governmental policies that have impact on respective hotel into adverse form.
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Economical factor: It includes currency rate, inflation rate, exchange rates, interest rates
and economic recession or many more. Herein, due to Brexit all factors influence entire working
system of respective firm in a negative way. As inflation rate is ascended or commodities along
with its cost increased day to day that can be easily impact on overall administration of frim and
enhance cost for the firm (Han, Lee and Kim, 2018).
Social factor: This factor is based on overall growth and development of firm. There are
different types of elements such as values, norms, beliefs and demand along with taste and
preferences of people. In regards with GLH hotel, they are mainly focused on accomplishment of
their customer’s demand among the better hospitality services so that it can increase their
productivity as they have money back guarantee for its entire consumers at marketplace. Thus,
they are bringing so many changes within its entire working function that improves its working
quality. Thus, it has favourable impact on business and increase profit and productivity of firm.
Technological factor: Technological advancement includes, innovative techniques,
artificial intelligence along with research and development for firm. In the context of GLH hotel,
as they are providing best hotel services to their customers with full of facilities so that they need
to bring technological changes within their operations that will have better impact on their
consumers. Online booking service for its customers considered as best technological tool that
make them attractive and promote overall business of firm.
Environmental factor: It is based on social responsibility as well as accountability
towards expectations and preferences of consumers. Within the current period of time, this factor
includes environmental laws, climate, weather and many other things that have impact on GLH
hotel. This hospitality industry deals with various programmes in by following several rules of
UK governments in an appropriate manner.
Legal factor: According to this last factor, there are several laws and legislations
imposed by government by which firms can run their business in a smooth manner. In regards
with respective industry, they are using several guidelines within their overall functions and
operations in order to overcome legal complexities and improve entire administration of whole
firm (Melissen and Sauer, 2018). Additionally, execution of several polices at workplace always
influence every people in a positive manner so that they treat their whole workforce in a equal
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manner and achieve targeted goals or objective son time. Thus, it helps firm to give huge
protection for its employees that increase their motivational level every time.
SWOT Analysis
It refers to the particular tool and techniques used by firms in order to execute particular
strategy in regards with business. Thus, it helps them to determine their entire strength,
weakness, opportunities and threats at marketplace (Murphy, Torres, Ingram and Hutchinson,
2018). Thus, business can get idea about its risk and profit both factor to achieve competitive
advantages. In regards with GLH hotel this framework is going too discussed below:
Strength Weakness
• According to GLH hotel is one of the
biggest strength is that they have their
own brands within the UK that
provides same services to customers
and satisfy their needs and wants.
• This hospitality industry always
contributes within the local economies
through developing best attraction of
their services on community. It
increases their efficiency and
productivity.
• This firm has high hotel rates so that it
is a big issue for those people who are
taking their services. It increases the
competition and decrease the value of
firm.
• Having so many hospitality
organizations within the UK this firm is
subjected to an unfair tax structure
which takes huge cost towards
providing better hospitality services to
all consumers.
Opportunities Threats
• Within the current scenario, there is
huge demand of hospitality industry by
customers so it can increase the chances
of their maximising entire sales and
revenue in a month.
• Due to changing trend of people this
firm is applying such essential aspects
by which they can make their
customers satisfied always bring
opportunity for expansion of business
• Due to maximisation of competition
within the UK can be the major threat
for respective firm.
• At present, terrorist activities are
maximising so that it can have direct
impact on firm negatively along with
reduce their value for customers.
• Unstable economies always reduce the
firm’s growth and break consumer’s
confidence among the industry.
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globally.
VRIO Analysis
It refers to the strategic tool which is generally used to find the internal goods within the
business firm and their capabilities offers long term benefits within competitive scenario. There
are four types of this analysis such as value, rarity, inimitability as well as organization. In
regards with GLH hotel used this concept to identify their internal resources that are able to
survive for long term at marketplace (Boella and Goss-Turner, 2019).
Resources Valuable Rare Inimitable Organisable
Brand value Yes No No No Competitive
difficulty
Official
ability
Yes No No No Fallow
equivalence
Fiscal
capitals
Yes Yes Yes No Competitive
bearable
Human
resource
Yes Yes Yes Yes Provisional
equivalence
Valuable: Overall brand value of GLH hotel is much essential within the competitive
market scenario along with services in order to target markets. In this respective firm used
valuable techniques so that they can utilise its innovative skill along with design their services
with full of satisfaction which helps firm to increase their external growth. On the other side,
fiscal resources are also considered as valuable part for firm that helps to increase their market
share. Additionally, human resources are one of the best valuable parts as it takes from their
employees to manage whole operations and functions of firm (Radjenovic, 2018).
Rare: Official ability of respective firm is not rare but this organization uses several
kinds of techniques to promote their every technique in those ways in which people can easily
use their services. Fiscal resources of firm are very strong so that they can bring more
techniques. Thus, HR of respective firm is rare due to different types of skilled workforce.
Inimitable: In regards with GHL hotel financial resources can be too costly as there is
tough time to imitate. It will bind new entrants and increase more profit for specific firm. Herein
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technologies used by an organization always promoted and administrated to customers as they
are considered as imitate within the hospitality sector. So that human resources of firm having
huge several knowledge and skills so it is not much easy for all firm to copy them.
Organisable: In this financial resources are mainly controlled and managed through
capturing the entire value of firm so that they can utilise strategically resources at right time with
right place. It helps firm to reduce investment and develop best growth for firm so that they can
easily conduct training and developing session for their employees that helps them to manage
entire work of respective firm in a proper manner.
Analysis of competitive environment using Porter’s five forces model
Porter’s five forces model:
It refers to the particular framework used by different types of firm to analyse
competitive scenario within the specific business sector. Concept of this analysis was formulated
by Michael Porter in the year of 1979 to underpinning the five competitive forces of business so
that they influence the entire business positively. Therefore, this analyses used by firms only so
that they can achieve competitive advantages in a perfect manner.
Threats of new entrants-
Within the hotel organization the total cost of their project is based on their operating
status by which they can set up a business within the hospitality sector that influence ample
number of customers in a proper way. Along with it helps them to give different types of
goods and services to their customers by following several laws and rules in relation with
protecting people from any issue. Therefore, the main purpose of this factor is to focus on
their target customers that help them to reduce risk of new entrants along with increase value
of GLH hotel within the UK (Altin and et. al., 2018).
Bargaining power of suppliers-
Within the factor of given analysis it is very low into hospitality sector. In regards with
GLH hotel there are large numbers of suppliers who are able to provide them different types
of goods and services to their customers along with accomplish their needs as well. In
regards with respective hotel bargaining power of suppliers is low because they have ample
number of options so that they can get competitive advantages. It helps them to sustain at
marketplace for long period of time along with bring long term goals strategy that makes
them effective.
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Bargaining power of buyers-
It is high as consumers are the key of any organization that plays crucial role within
business industries. In regards with hospitality sector, there are different types of buyers who
always want different types of services from hotel rooms so that they can easily stay for
some time. Herein, GLH hotel, is able to give their customer’s every services in a better way
that influence them so that this firm is able to manage their functions in a better way. Thus,
it increases the brand image and makes them productive.
Threats of substitutes-
According to hospitality sector such as GLH hotel, this is loo. This is because there are
large number of facilities and services to given for their customers within the hotel premises.
It increases their value for their clients and make their sustainability for long time. With the
help of this, they can target its potential customers by which they can become more effective
at marketplace and give satisfaction to customers. On the other side, Due to having interest
from ample number of traveller this firm is able gain competitive scenario and achieve their
targeted goals (Akindayomi, Amin and Hassan, 2020).
Rivalry among existing competitors-
As per the competitive scenario within hospitality sector, there are ample number of firms
are dealing with few same services through applying unique strategies with low cost. Thus,
development of business is generally needed to have effective rate for formulating to reduce
competition and able to achieve desired goals. Along with this respective hotel can easily
develop best strategies to remove competitive rivals from its working place.
PART B
Different types of strategic directions using several models within an organization to make
strategic planning
In order to survive within competitive analysis, it is necessary for every business industry
to operate their overall functions and operations as per the business requirement in order to
accomplish their goals and objectives. So that they can use their strategies at right time at right
place. Therefore, there are few strategies that make every business incredible and help them to
sustain for long time. In context with GLH hotel, Ansoff matrix is mentioned below;
Ansoff Matrix
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It refers to particular framework as well as known as planning tool in which firms are
applicable to put new strategies for more betterment of their functions at workplace (Bratton and
Watson, 2018). Thus, senior management of and organization is able to make further strategy for
development through considering four elements of this model that are:
Market penetration- It is one of the best growth strategy that can be executed to increase
overall sales of firm. In regards with GLH hotel, it is used by management team in order to
increase their business growth successfully so that they can have low risk towards launching its
new services beyond the aim of making every customer happy. Thus, firm can easily promote its
goods and services and able to bring innovative tools within its functions (Ansoff Matrix. 2020).
Product development- According to this strategic point management team of an
organization is able to adopt best effective techniques in order to increase the profit and
productivity of respective firm. With the help of this respective firm can get large number of
growth opportunities and new competencies that makes their every service better at marketplace.
Along with development of new services always gives chance for firm to overcome risk factor
more than the penetration as new product and services formed in existing market. Thus, firm can
accomplish their customer’s needs and wants (Metaxas, Chatzoglou and Koulouriotis, 2019).
Market development- As per the growth development view, industries plays crucial role at
marketplace as they accomplish needs and wants of every customers so that they can easily enter
into new market with its current goods and services. In regards with GLH Hotel, this
organization is dealing with numerous services so that they have chance to extend its business
within so many other countries that boost their sales and increase customer’s satisfaction towards
accomplishment of proper needs of people. Thus, using such kind of strategy they can remove
risk factor and influence several consumers positively.
Diversification- This development strategy refers to the high risk volume due to adoption of
large number of options at marketplace to enter into new market. Thus, it is not much clear that
new services of GLH hotel will be liked by consumers or not at new marketplace. This option of
strategies makes firm’s business better and maximise productivity with consumer base.
According to the above specified strategies this can be said that, using this matrix firm
can have huge options to develop their market sales and revenue in a proper way. According to
GLH hotel this strategy used by manager of an organization within the hospitality sector so that
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they can easily extend their business in other countries and able to manage its entire development
growth of firm (Li, and Singal, 2019).
Strategic management plan
It is known as written document that can implements or utilised by an organization in
order to setting goals and objectives along with communicating with people at workplace.
Making so many strategies and goals it can be benefited for firm to make their working goals
accordingly so that they deal with their targeted aims, strategies, objectives and tactics. In
context of GLH, hotel this plan is going to discussed below:
Strategies
It defines the high level of developed plan which is designed by administration of
organization to fulfil overall needs and requirements of business at marketplace. Whenever,
firms needs to extend their business within its existing service always needs to have proper plan
action that are:
STP- It is a broad way or structure that analyse overall activity of market segmentation of firm.
Thus, this strategy considered as beneficial tool for GLH hotel that assist to firm to define their
overall profits that can be accepted through firm.
Segmentation: It refers to the different types of segments att marketplace like
demographics on the basis of customer’s age, income, gender, education along with profession.
On the other side, psycho-graphically segments are based upon risk, value and money for people.
When firm make their business attractive through extended at new market than they can easily
focus on those types of segmentation of groups.
Targeting: According to this approach firm is able to target their all; customers by which
they can expand its business within the new market. Thus, the management team of firm will use
low cost strategy to give benefits for people (Revathi and Aithal, 2018).
Positioning: Within the hospitality sector, there are large number of facilities and
accommodations provided by firm to their customers as they target its customer’s base in an
appropriate manner. In relation with GLH hotel, position of this respective industry within
hospitality sector is very famous as they are using large numbered technological tools and
methods in an appropriate manner.
Objective- SMART objective of GLH industry is going to discussed below:
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 To increase the entire sales of firm through 9% into one year by providing better
accommodating services.
 To enhance 4% profit borders of business endeavour into coming 8 months through
increasing business at new marketplace (Kandampully, Zhang and Jaakkola, 2018).
Tactics: It is considered as tools and plan used by firm to resolve entire issues of firm. In
context of GLH hotel, administration team of this organization needs to design great budget so
that they can extend its business and able to focus in its new market. Having innovative
techniques always bring huge profit for firm so that they survive for long time.
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