International Business Strategy Report: Argyle Hotel Group Analysis

This report examines the Argyle Hotel Group, an Australian hotel management company with a significant presence in the Asia-Pacific and China regions, operating a total of 120 hotels. The analysis centers on the institution-based view of international business strategy, highlighting how both formal and informal institutions in Thailand, where the hotel operates, influence the company's strategic decisions. Formal institutions, such as government regulations and state agencies, impact the hotel's operations through licensing, food safety laws, and overall industry standards. The report also explores the impact of informal institutions, including cultural norms and ethics, which affect management practices and strategic planning. The recommendations focus on fair regulations and market segmentation to enhance competitive advantage. The conclusion emphasizes the importance of a business strategy that strengthens the hotel's reputation and competitive position.

Running head: MANAGEMENT
Management
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Institution:
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Argyle Hotel Group
This is a management hotel company in Australia that provides resort and hotel
management services. It also owns a chain of hotels in Asia-Pacific and China. Under its
management are a total of 120 hotels.
Institution based view on strategy
Institutions set the rules of the game in the society. They directly impact the firms
implementation and formulation of business strategy. In Thailand, both the formal and
informal institutions create institutional frameworks that greatly affect the institutions
behavior in strategy and law enforcement.
Formal institutions effects on Thailand Hotel industry
The government institutions specifically the regulators greatly affect Thailand hotel industry
in terms of laws, rules and regulations. The power to regulate hotels like the Argyle hotel in
Thailand or any other similar establishments is delegated to state agencies like the health state
board. A licence is required to operate any food establishment like the Argyle Hotel or a
restaurant. This is important in keeping the customers safe where food safety laws plays a
major role in hospitality industry in Thailand. Knowledge about storage of food and hygiene
keeps the customers safe and helps the hotel to avoid fines and lawsuits. Strategy is always
important in provision of support and guaranteeing coherent services and quality in hotel
chains (Buckley, & Ghauri, 2015). Although the type of contractual affiliations allows Argyle
hotels to keep some part of independence, the central activities organized improve a great
deal of strategic position through adhering to government and formal regulations from state
agencies. The benefits of regulations by the formal institutions are to;
1. Bringing distant parties together and supporting the arms-length transactions.

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2. They facilitate industry growth and expansion of economic activities
3. Attract new players into the Thailand economy by fostering rule based transactions
that cannot operate on the urgency of informal institutions solely.
Infromal institutions effects on Argyle Hotel and general Hospitality industry
The informal institutions greatly affect the norms, cultures and ethics of the hotel. Institutions
affect the strategies of the firms by reducing uncertainty and signaling the conducts of the
hotel which are acceptable or not acceptable.
The informal institutions affect the national culture on practices of management. The
Hofstedes cultural dimensions affect the power-distance, tolerance to uncertainties and
focuses on the importance of individualism versus a team or group setting. The long term
orientation in relations to strategic planning is important as it forges short term profits with
the aim of long term focus on increase in market share.
Strategic management recommendations.
1. Fair regulations by government agencies meant to promote business rather than stifle
it (Thompson, Strickland, & Gamble, 2015).
2. Market segmentation and change in value assited by strategic formal and informal
institutions.
Conclusion
Business strategy is key in any business. For Argyle hotel, having a business strategy that
will increase their competitive advantage and build itself as a reputable franchise is very
important.

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References
Buckley, P. J., & Ghauri, P. (Eds.). (2015). International business strategy: theory and
practice. Routledge.
Chang, J., Van Witteloostuijn, A., Eden, L., Eden, L., Miller, S., Hitt, M., ... & Lau, C. M.
(2018). Strategy in emerging economies. In International Business in the Information
and Digital Age (Vol. 41, No. 2, pp. i-xiv). Amsterdam, The Netherlands: Elsevier.
Hamel, G., & Prahalad, C. K. (2017). Do you really have a global strategy?. In International
Business (pp. 285-294). Routledge.
Thompson, A., Strickland, A. J., & Gamble, J. (2015). Crafting and executing strategy:
Concepts and readings. McGraw-Hill Education.