BTEC HND in Hospitality: Ritz-Carlton Business Strategy Analysis

This report provides a comprehensive analysis of The Ritz-Carlton's business strategy, employing frameworks such as PESTLE, Porter's Five Forces, SWOT, and VRIO. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors impacting the hotel's operations in the UK, including the effects of COVID-19 and BREXIT. Porter's Five Forces assesses the bargaining power of suppliers and buyers, the threat of substitute products, and competitive rivalry. The SWOT analysis identifies the company's internal strengths and weaknesses, as well as external opportunities and threats. Finally, the VRIO framework evaluates resources for sustainable competitive advantage. The report concludes with insights into strategic decision-making and recommendations for improving the Ritz-Carlton's competitive position.

Submission Front Sheet
Programme: BTEC HND in Hospitality Management (RQF)
Unit Title and Number: Hospitality Business Strategy (Unit 41)
RQF Level: 5 Module Code H/616/1826
Credit value: 15 credits
Module Tutor:
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Date Set:
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Student’s name
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First Submission? Second Submission?
Word Count 53project

for exclusion

Table of Contents
INTRODUCTION...........................................................................................................................3
............................................................................................................................................................
TASK 2..........................................................................................................................................10
TASK 3..........................................................................................................................................13
TASK 4..........................................................................................................................................14
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business strategy is defined as strategy which makes an organization achieve various
aspects making hotel industry achieve goals and objectives. In this hotels uses business strategy
for making various kinds of development done within organization. This makes business
understand about both internal and external factors which has been used for making business
work as per current market environment. The organisation selected for current project is The
Ritz-Carlton which is a well-known American multinational company that operates the luxury
hotel chain. Further, the headquarter of The Ritz-Carlton is situated in Bethesda, Maryland, U.S,
with more than 108 luxury hotels and resorts in 30 countries and territories with 29,158 rooms.
Also through this business environment improves and it helps in making various forces of market
understood impacting organizations directly. Then strategic theories are used which makes
business improvement done more effectively. In the end also matrix has been understood.

PESTLE analysis:
PESTLE analysis means that kind of framework or tool which has been used by an
organization in order to develop understanding about various external factors which impacts
growth of business. Further, it can be observed that PESTLE analysis has also helped various
industries to grow due to its factors like political, economic, social, technological, legal and
environmental. In relation to The Ritz-Carlton UK the analysis has been conducted as follows:
 Political factors: The factors develop information upon various kinds of policies that has
been based over various kinds of activities like manufacturing, sales and trade related
activities. These legislations passed by government makes various aspects covered which
relates with hiring, training and rights of employees as well(Davison, 2021). In relation to
The Ritz-Carlton these policies have drastic effect since change within policies leads over
reducing efficiency within working of employees and staff. As per the change in policies
of modern time due to COVID 19 changes in policies lead over making loss faced in
business of The Ritz-Carlton. The Ritz-Carlton hotel follows all major political policies
and frameworks developed by government in order to develop a legal and ethical
business. Recently the pandemic has created a major intervention of government in the
hospitality sector which has created many challenges and issues for the hotel. The hotel
should focus on implementing all major rules and regulations developed by government
of USA in order to lead the marketplace in a precise manner.
 Economic factors: These factors deal upon aspects like inflation rates, exchange rates,
interest rates, import rate and export rate. The factor holds responsibility in relation to
economic development of an organization. In relation to hotel The Ritz-Carlton economic
factor has been affecting growth of business. The Ritz-Carlton managed to survive great
rescission by keeping its economic policies more flexible in nature. Through which profit
generation was more. The economic factors are most important to be considered by a
business entity in order to develop a key economic policy to deal with the situation. The
gross domestic product and national income of a United States of America. The Ritz-
Carlton hotel should focus on inflation, recession and deflation in an economy to deliver
best business practices. The revenue and profitability of Ritz-Carlton hotel is also
increased with the help of major economic factors and their consideration.

 Social factors: The factor has been dealing over various kinds of perspective existing
within society. Through these factors culture, trend and taste of people living within
society has been explained (De Bruyne and Gerritse, 2018). The factors require to be
understood by The Ritz-Carlton which helped in gaining popularity within United
Kingdom. Also social factor made positive impact over The Ritz-Carlton hotel that made
customers attraction with expansion possible. Also social factors make The Ritz-Carlton
understand about trends making hotel spread across UK. In order to develop effective
internal environment in the business, it is important to focus on all major social factors.
The social factors include traditions and culture of the society which needs to be
understand by the Ritz-Carlton hotel to deliver effective ways in dealing with society.
Main focus of Ritz-Carlton hotel is to d9._1539474808 (1)evelop a major internal
environment which has in depth understanding of culture to lead the competition.
 Technological factors: These are the factors that are based over technological
development taking place within society on daily basis. This majorly create impact over
technological development within an organization. Also using the factor organization like
The Ritz-Carlton made lot of profit as it made mod for exclusiones of payment created in
both online and offline form. Also The Ritz-Carlton after using latest technology making
online portal created for booking. It lead upon updating product requirement as per
customer’s needs. Organization like The Ritz-Carlton has exploited technology for
promoting goods and introduction of new product or services. The Ritz Cardon hotel is
using advanced computer systems and software to deal with key consequence of
customer database management. The hotel is for exclusion also using customer
relationship management software to deal with customers and build effective relationship
between them. Management information system is a major software which can be
considered by Ritz-Carlton hotel to increase coordination between employees.
 Legal issues: The factor has been affecting various kinds of aspects creating legal issues
for an organization. These factors have been handling various aspects based over
legislations and laws existing within country. In UK legal requirements have increased in
order to make trade activities conducted more effectively. This makes laws used by The
Ritz-Carlton hotel for conducting its functions in legal manner. After BREXIT various
laws has been changed making The Ritz-Carlton hotel faced difficulties in adapting them.

Through legal factors various issues within the organization has been solved more
effectively but BREXIT has created problem in working if legal process. The legal
factors include the rules and regulations formulated by local authorities to develop legal
business organisations. It is major role of a business to follow norms and regulations
developed by local authorities in order to develop effectiveness in business operations.
 Environmental factors: These are those factor that has been impacting environment
within the country this makes organization learn about protection of environment.
Through environmental factor aspects in relation to business environment has been
discussed more effectively. The Ritz-Carlton requires focus upon various factors in order
to become more eco friendly by introducing biodegradable plates which can be reused in
order to create eenvironmentalstability. The Ritz-Carlton has used the factor for creating
environmental safety programs making organization popular in-terms of environment
friendly organization. The factor makes growth supported through creating sustainability
within an organization. Another issue that organization has deal with that carbon
footprints which has been solved by increasing easy payment modes by online. The
environmental analysis should be done by Ritz-Carlton hotel and develop sustainable
ways to deal with the same. In the recent times, it is also important for a business entity to
focus on key ways of developing sustainability in operations to facilitate environment and
future generations. The environmental policy of US government is also followed by the
hotel to develop key practices.
Micron environments means that kind of environment which helps in dealing with
various aspects used for developing organization more effectively. As per these factors various
kinds of perspective in relation over politics, economic, social, technology, law and environment
has been covered. Also through these factors organization process gets impacted (Harrison,
Burnard and Paul, 2017). It has helps The Ritz-Carlton become UK's most popular hotel chain
which made various aspects deal in more effective manner. Through political factor government
policies makes taxes increased which makes sales decreased. Then economic development is
another important part which has been used in order to make development done more effectively.
Also social factor made The Ritz-Carlton hotel realize about all kinds of aspects which has been
used in order to make The Ritz-Carlton known all over the UK. Through these factors strategic

decision making gets impacted in a way that external factors are used while forming policies and
services as data collected made various kinds of strategies develop by The Ritz-Carlton hotel It
made Management of the Ritz-Carlton hotel include employees within decision making
improving organization more effectively which makes business of The Ritz-Carlton hotel grow
with faster and better pace. Then these strategies makes organization deal over various kinds of
issues which hinder quality of services. Thus both environmental factors and strategic decision
making interconnected with each other. The Ritz-Carlton requires to work over its strategies by
extracting data from the factors making hotel accomplish goals and objectives.
Porters five force
Porter's 5 forces evaluation- In order to increase operations with inside the global market,
it's miles obligatory for a organization to examine Porter's 5 forces. This method is useful in
growing the aggressive gain of organization for long time improvement of commercial
enterprise. This version is likewise vital to be able to in short increase a main method to be able
to boom energy and wealth of the organization. The Porter's 5 forces evaluation of Ritz-Carlton
hotel activities is referred to below:
 Bargaining power of supplier- The bargaining electricity of shoppers play a main
function in improvement of the commercial enterprise. It is likewise crucial for the
control of a organization to don't forget bargaining electricity of shoppers to be able to
fulfil one of a kind customers. The Ritz-Carlton bargaining electricity of shoppers is
excessive as there are numerous agencies of sports activities objects found in UK. In
order to increase and reduce the bargaining electricity of shoppers it's miles vital for the
organization to offer best items at affordable rates. In order to boom the commercial
enterprise energy in a fixed duration of time, it's miles crucial for a organization to take
help of pinnacle stage control.
 Bargaining powers of buyers- This is one of the predominant elements that effect on
inner surroundings of the organization. The bargaining electricity of providers is
improved with the BREXIT that is predominant chance for organization (Orr and Jadhav,
2018). In order to minimise the impact evolved via way of means of bargaining
electricity of shoppers it's miles obligatory for the organization to pick out powerful and
green providers.

 Threat of substitute products- There are one of a kind agencies in marketplace of UK
that are giving difficult opposition to Ritz-Carlton hotel activities. It is important for the
organization to think about different factors which are powerful in managing the
competition to increase moral commercial enterprise. All the competition should be
treated with the assist of a main method to steer the marketplace share.
 Threat from substitutes- The chance from substitutes can effect at the functioning of
Ritz-Carlton hotel in a poor manner. The alternative merchandise lower the possibilities
of incomes and wishes a scientific method for an extended duration of time. In the
technology of stiff opposition among one of a kind agencies, it's miles vital for a
commercial enterprise entity to consciousness on hiring professional and educated
workforce in strategic control for improvement of method. Most of the a success agencies
with inside the international and home market consciousness.
TASK 2
VRIO analysis and SWOT for analysing the internal environment of an organisation, a
framework of SWOT Analysis is used that facilitates a business in making an analysis of its
internal strengths as well as weaknesses along with the external opportunities and threats.
VRIO analysis:
VRIO analysis focuses these are those analyses that has been focused upon making
sustainability developed with competitive edge which makes resources used more effectively. T
makes significance delivered over various kinds of competitive benefits which makes initial
resources summarized with a temperature competitive advantage helping in making
organizations like The Ritz-Carlton hotel deal with various factors that makes organizations
enhance its competitive edge which is more effective manner (Lin and Sanders, 2017). Finally,
in phrases of sources has been summering numerous styles of elements which makes brief
aggressive advantage, sustained aggressive advantages, aggressive parity, has an unused
aggressive advantages or aggressive drawbacks analysed effectively.
Resources Value Rare Imitation Organisation Competitive
benefits.

Product
portfolio and
synergy
among
different
product lists
Yes, it has
cost with
inside the
enterprise
granted the
exclusive
segmentations
and tastes and
possibilities of
customers.
There are
many
competition
looking to
input the
worthwhile
segments.
It may be
imitable for
the
competitors.
It is organised
with inside the
enterprise
which gives
true effect
It presents
transient
aggressive
advantages to
the enterprise
and The Ritz-
Carlton inn
calls for
consistent
innovation to
live withinside
the
competition.
Pricing
Strategy
Yes No It is imitated
on day by day
foundation
withinside the
sector.
Yes, The Ritz-
Carlton lodge
has a pricing
analytics
engine.
It is a short-
time period
benefit.
Opportunities
for brand
extensions
Yes, new
niches markets
are developing
with inside the
market.
No, different
gamers also
are
concentrated
on the niches.
Yes, it's miles
imitable.
Budget is
wanted for the
emblem
extensions.
It offers a
short-time
period
aggressive
benefits.
Global and
domestic
existence
Yes, it's far
treasured for
the emblem
because it
diversify the
sales gadget
the stability
sheet of the
enterprise
from monetary
cycles
(Lozano,
Yes It is
imitable with
the aid of
using the
competitors
The Ritz-
It offers a
robust
aggressive
benefits.

and isolate. 2018). Carlton resort
is one of the
maximum
various groups
in its sector.
Position
among
wholesalers
and retailers
Yes, it's far
treasured for
the logo as
The Ritz-
Carlton resort
continues its
courting with
its wholesalers
and retailers.
Yes, it's far
uncommon for
the logo
because the
organization
having a
devoted
distribution
partners.
It is tough to
mimic eleven
though now no
longer
infeasible.
It is organised
for the logo as
over the last
years it
continues its
bond with
distribution
partners.
It gives a
sustainable
aggressive
benefits.
SWOT Analysis of the Ritz-Carlton hotel is given as below:
Strengths Weaknesses
Global presence: The Ritz-Carlton hotel has
its presence in 30 countries across the globe
and This becomes a major strength within the
organisation as its global presence helps in
expanding the level of business operations.
Focus on innovation: The operational belief
of The Ritz-Carlton hotel is focused on the
innovation and many of the systems as well as
the procedures make efforts for integrating the
innovation and commitment for ensuring
Controversies: The brand image of The Ritz-
Carlton hotel has been marred by regular
controversies and one of the latest controversy
is concerned with the blockage of personal Wi-
Fi connection of the market share expressing
privacy risks(Mayo, 2020). This kind of
adverse marketing keeps the respective brand
in the poor light.
Excessive focus on expansion: The Ritz-
Carlton hotel is continuously expanding its
business all over the UKand in recent time its

overall value of money. empire is very large. Because of which it is
impossible for the organisation to maintain and
control the standard of services of the entire
business. This leads to dilution of the brand
value and becomes a weakness for the
organisation.
Opportunities Threats
Increase in global travel: By making a
comparison from the last decade, the number
of customers who are travelling for the purpose
of enjoyment as well as work has extend in a
significant way. Through maintaining proper
interaction with airlines hotel chains can gain
this major opportunity as their benefits.
Focus on personalisation: It is another
opportunity for The Ritz-Carlton hotel to focus
on the concept of personalisation as nowadays
customer base are willing to get personalised
attention and are also willing to pay for it most
of the times. Respective organisation can
charge a premium for each personalised
service that is offered by it which would
facilitate in increasing sales operations.
High competition: There are a large number of
competitors of The Ritz-Carlton hotel like
Novote hotel. These brands are continuously
chasing to become the leaders of the market
place and can become a threat for The Ritz-
Carlton hotel
Economic recession: Pandemic situation of
COVID-19 has become a threat for The Ritz-
Carlton hotel as it hit the hospitality industry in
a negative way and at that time most of the
properties of organisation get out on market for
sale as they are not able to generate income.
Description- From the above SWOT analysis of Ritz Carlton, it is evaluated that This are those
analyses which has been used in order to understand about strength, weakness, opportunity, and
threat of an organization. As per the analysis internal factors has been effected which makes
business work upon business environment. This deals upon various aspects making business
perform more effectively. In relation over The Ritz-Carlton hotel in United Kingdom the
analysis has been conducted as follows: