International Hospitality Management Report: IHG Analysis & Strategies

This report provides a comprehensive analysis of InterContinental Hotels Group (IHG), focusing on international hospitality management. It begins with an introduction to the company and the scope of the report. The main body includes a detailed SWOT analysis, evaluating IHG's strengths, weaknesses, opportunities, and threats. A PESTEL analysis examines the political, economic, social, technological, environmental, and legal factors impacting the company. The report then critically assesses the usage of ICT and cross-cultural management in enhancing productivity and customer experience within the hospitality industry. Porter’s Generic Strategy is also discussed. The report concludes by summarizing the key findings and providing relevant references. The analysis covers various aspects of IHG's operations and strategic approaches within the competitive international hospitality market.

International Hospitality
management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
A. SWOT analysis of Inter-Continental Hotels Group..........................................................3
PESTEL Analysis...................................................................................................................5
A critical evaluation on Usage of ICT & Cross Cultural management in increasing
productivity and better experience in hospitality industry.....................................................8
Porter’s Generic Strategy.....................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
International hospitality signifies that organisation focuses on offering facility to individual
person in order to build their career within hospitality sector. The international hospitality
administration focuses on conducting different activities and functions of company at both local
and international level (Deale, 2018). The company taken for this assignment is Intercontinental
hotel group. This company was founded in year of 2003 and it is determined as a well known
Hotel that provides effective facilities to its user in order to satisfy them and headquarter is in
Denham. In the report, they emphasize of organisation is to offer hospitality for every individual
person and group in order to provide food as well as beverages to its user according to their
needs. This assignment provides different topic which is SWOT analysis PESTEL analyses that
help in considering internal or external environment which imposes direct effect on organisation.
In this assignment, the topic is chosen is named as a “critical assessment of use of ICT & Cross
Cultural Management that helps in increasing experience level of customer within hospitality
sector”.
MAIN BODY
A. SWOT analysis of Inter-Continental Hotels Group
SWOT analysis is determined as a planning method that assists organisation to understand
various areas in which they are performing work in an appropriate manner. The internal factors
involve strength as well as weakness and external element considered as opportunity & threat of
business organisation. In this kind of approach, the company focuses on assessing need and
wants of user in order to satisfy them. SWOT analysis is a systematic method which is adopted
by Intercontinental hotel in order to assess different situation within business organisation.
Intercontinental hotel is determined as a leading business organisation within hospitality sector
and it is necessary to use SWOT analysis in order to assess market condition for maintaining
position at marketplace. In addition to this, the swot analysis is also useful for critical assessment
of use of ICT in increasing experience level of customer that help in satisfying them in context of
luxury hotel.
Strength as Intercontinental Hotel is determined as a leading organisation and operated
their business at a global level so there are different kind of strength within business organisation
that is such as-
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Workforce the organisation has highly competent subordinates so that they increase their
investment in resources in order to provide training also influence them to accomplish goal in
timely manner.
Regulation of activities continuous provides regulations in activity within an organisation
are used by company and focus on demand and need of user at Marketplace.
Customer satisfaction the organisation is capable to maintain its relation with user in
order to satisfy its customer during the period of time.
Weakness are determined as those areas in which the customer focus is on increasing
performance level and adopt SWOT analysis in order to achieve competitive edge market at
Marketplace. There are various weaknesses that is given below:
New technology the organisation required to increase their investment in innovative
technology for expanding their organisation in other countries.
Financial planning due to improper or inappropriate financial planning results in
improper uses of finance determined as a main weakness for organisation.
Opportunities
The leader as well as manager within an organisation focus on future and determine all
possibility for growth & development in market place (Gursoy, 2019).
Competitive advantage due to increase the use of ICT in increasing better experience as
well as customer satisfaction is determined as a main opportunity for business organisation in
order to achieve competitive edge over rivalries in Marketplace.
Transportation costs the organisation focuses on decreasing transportation cost for
bringing down price of organisation that offer opportunity and increase profitability level in
future period of time.
Usage of digital channel the organisation focuses on investing their fund in online
platform that results in opening innovative channel related to sales for chosen organisation that
helps in grabbing opportunity according to need of user.
Market growth the use of innovative technology as well as free policy related to trade has
offered company opportunities related to entering in a new marketplace.
Threat after assessing opportunities, the organisation must be focuses on removing threats
because of harmful for business organisation (Guzzo, 2020).
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Raw material herein, the cost of raw material from various sources is determined as a
greatest threat for company.
Government regulation due to changes in the environment rules and regulation it is
determined as a threat for business organisation.
Customer behaviour due to change in the behaviour of customer, it is not easy for
business organisation to satisfy its user.
Shortage of workforce due to shortage of competent subordinate within certain place is
determined as a threat for business organisation.
On the basis of above given SWOT analysis related to Intercontinental hotel group, it has
been analysed that the organisation focuses on using appropriateness in branding and in
operational administration. Moreover, the leader as well as manager focuses on having a long-
lasting relation with its user that helps in increasing brand image as well as reputation of
company in front of customer at marketplace. In addition to this, SWOT analysis is determined
as a planning method that assists organisation to understand various areas in which they are
performing work in an appropriate manner. The internal factors involve strength as well as
weakness and external element considered as opportunity & threat of business organisation. In
this kind of approach, the company focuses on assessing need and wants of user in order to
satisfy them. SWOT analysis is a systematic method which is adopted by Intercontinental hotel
in order to assess different situation within business organisation (Jiang, 2017).
PESTEL Analysis
The PESTEL analysis is determined as a tool and technique adopted to assess and consider
macro environmental factor which is taking place within business organisation. PESTEL
signifies political, economical, social, technological, environmental as well as legal in business
organisation (Kalargyrou, 2017). Before conducting any kind of strategic plan, it is necessary to
investigate situation which is arise at marketplace. The organisation focuses on monitoring and
executing changes within an external atmosphere in order to achieve competitive advantage over
rivalries at marketplace. In addition to this, PESTEL analysis signifies tool which is adopted by
business organisation to assess external atmosphere in which they perform their functioning and
they launch innovative product as well as services. Intercontinental hotel group adopt this tool
for assessing macro environmental factor that impose direct effect on functioning of business
organisation.
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Political factor is very important for assessing different element that imposes direct effect
on profit margin of a company at marketplace. In addition to this, the organisation focuses on
dealing in travel and leisure in different country in order to perform different activity in an
appropriate manner. According to following element, the chosen organisation focuses on
assessing situation before taking entrance for investment in new market. Political stability in
nation is very important in analysing or assessing the impact of travel as well as tourism industry
the function related to political situation must be stable that imposes positive effect on
organisation. Political situation is determined as a condition that helps in promoting tourism
which is determined as a most positive situation for company to take entries in innovative
market. Pricing regulation the country follows strict rules as well as a regulation in order to adopt
appropriate pricing strategy on regular basis that imposes positive effect on functions and
activities of business organisation (Koseoglu, 2019).
Economic factor Intercontinental Hotel group adopt economic element of country such as
growth rate, interest rate and many more in order to increase success and growth of organisation.
Economic system focuses on operating their business in an appropriate manner that increases
both are favourable as well as negative effect on profits of organisation. In year of 2010, due to
change in economic system that increases inflation rate within nation (Manoharan, 2017).
Due to enhance in inflation rate imposes negative effect on growth and success of
organisation. In addition to this, the exchange rate due to stability and rate of exchange of nation,
it imposes positive effect on organisation. It is not difficult or complex for them to consider
changes and it is determined as a cost effective. Because of cost of labour is low in comparison
to other nation which will be determined as a profitable for organisation and it reduces expenses
as well as cost and that assists in offering employment opportunities within country. Thus it is
beneficial for country to conduct different task in proper way.
Social factors herein, there are different kind of social factors such as a taste and
preferences of user, belief and many more. In context of Intercontinental hotel group, they focus
on understanding need and want of customer in order to improve marketing in context of travel
as well as leisure industry. Therefore, it is necessary to follow need and want of customer in
order to increase profit margin within company (Murillo, 2019).
The culture operating their business in 4 countries along with high level of male population
in comparison to female and become a medium related to human improvement. Therefore, the
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organisation focuses on using that culture which is suitable for growth and success within an
organisation. Hence, they focus on providing products and services according to their needs in
order to satisfy them. In addition to this, due to which, the organisation providing superior
quality of food to its user according to their needs that help in increasing reputation or brand
image of company in front of customer at Marketplace. The organisation focuses on monitoring
and executing changes within an external atmosphere in order to achieve competitive advantage
over rivalries at marketplace.
Technological Factor
It is another element of PESTEL analysis in which it comprises of use of advanced
software and hardware, used applications and use of artificial intelligence. With changing period
of time, uses of technology have increased at higher level. In context of ICH, they regularly
update security management system to make ensure that prodigious of every users and guests are
kept secured and denying access of unauthorised users. The rises of hospitality industry making
it essential for every individual to gain knowledge about technology competitive benefits are
achieved (Okumus, 2018).
Environmental Factor
It is another element of this framework in which it is necessary to considered important
as because with change of environment it is becoming necessary to have knowledge of
environmental factors. This practice comprises of green agent waste management and many
more. In relevance of selected entity they are well aware about environmental policies and
regulations. Moreover they too have hired environmental practitioners who brief with them about
how better they can protect environment from getting polluted (Pizam, 2019).
Legal Factor
It is the last component of in which it includes rules and regulations, laws etc. In
viewpoint of ICH, legal department of hotel make ensure that every activity and operations of
hotel are being carried out by following and under government considerations. They have been
also into many legal problems due to rivalry and other external factors which make them more
active regarding illegal activities and their regulations. From the above stated matter it has been
seen that external and environment it has a deep impact on enterprise overall organisation
structure and it is necessary to be aware about these factors so that decision making and other
activities are executed properly.
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A critical evaluation on Usage of ICT & Cross Cultural management in increasing productivity
and better experience in hospitality industry
The hospitality industry is changing with rapid scale and it is becoming important for
every e hotel and service industry to be aware about this thing is so that goals and objectives are
achieved in proper manner. Moreover in this contemporary market and competitive landscape it
is difficult for organisations to carry out their business activities without accessing to
opportunities in proper manner. In context of selected hotel which is ICH, HR manager of hotel
is efficient and advanced who are capable of providing quality of services as well as positive
results to business operations and functions. The contemporary hospitality business management
includes various stages such as food and beverages, service quality, lodging and area of activities
and services. In this contemporary business world, it is necessary to you have a knowledge of
cross cultural management as well as ICT in such a way that development and growth are easily
accessed (Tung, 2018).
ICT which is also known as information communication technologies plays important
role in travel tourism and hospitality sector. With increase of High competition in market, it is
becoming essential for every industry to use ICT with proper considerations on the basis of
which they are able to protect user’s guest and tourist information as well as data in a well
organised manner. ICH is a luxury hotel which operates at global level and has a wide range of
subsidiaries as well as competitors in the present market. It has been examined that people are
becoming addicted to technology and are well aware about technologies more than any other
individual due to available of large sources (Yao, 2019). It has also specified that the chosen
hotel has the higher skilled staff management and people with deep knowledge and expertise of
technical and non-technical field. The revolutionaries of internet and technology have impacted
at large scale on both consumer choice as well as service delivery processes. For example
traditionally customers has to locate strive to seek to find accommodation services whereas in
comparison with modern word customers are more find accommodation services through using
voice assistant Google browser and other search engine easily. Also tourists as well as guest
expectations are changing and they are demanding with higher quality of services from service
providers to achieve value for their money. The usage of ICT provides more opportunities and
advantages to business as it satisfies the overall needs of customers and clients at wider
approach. Moreover in current situation of market is being used as a way of promoting brands
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products as well as services which reduced commission cost and it also has a good impact on
environment resources. The global tourism and hospitality industry is one of the fastest growing
sectors and has grown and is going at a rapid scale. The role of ICT in tourism has become
important as because infrastructure of ICT and software applications is very sure for the
development of business and which also allows hotels to maintain and manage their uses with
customers for longer period of time.
With the adoption of ICT, it becomes easier for hotel to deal with uncertain situations and
protect the security of business data and analytics in well efficient manner. Also the change of
ICT equipment and tools has also impacted upon demand and supply of business. With the help
of new technology and tools, it becomes easier for businesses to execute business activities
properly (Gursoy, 2019).
Cross Cultural management-
On the other hand cross cultural management refers to people which consists of
different cultures regions and languages and work with each other to achieve a desired goal. In
hotel industry, it is critically important to focus on the concept of cross cultural management so
that it is easier for every individual to carry out their work in a well-defined manner. The concept
of cross cultural management is wider and wider which is to be understood with proper
considerations as it has a deep impact on workplace and productivity of the business at larger
scale. In relation of chosen hotel, as they operate at global scale they have a white number of
people with different regions cultures and languages which reflects their entities work ethics and
goodwill. The research study has shown that using of ICT with business increases the work
effectiveness and knowledge of individual which also help in assessing to new field work.
Furthermore, it is to analyse that hire product within a business ICH has a secured management
system with layers of technology and people who are always ready to security data and
information at any cost (Deale, 2018). Focusing on concept of cross cultural management as a
string dealing with different people and their problems in well organised as well as effective
manner which is beneficial for operations and has a good impact at workplace. In any
organization, individuals represent different cultural backgrounds depending upon the language
they speak at home, the religion they practice or the country they belong to and so on. Culture
has a strong influence on people as it dictates how we perceive, understand and communicate
ideas. This can take a toll on organizational transactions, both internal & external. Sometimes,
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situations can be perceived by two individuals coming from different cultures/countries in a
totally different way. These kinds of situations makes it crucial to understand and examine the
cross cultural Management which helps in clearing of mind set as well as help in achieving of
better results with in a workplace. The MNCs which earlier used to be a handful of
large behemoths straddling across continents have now become the norm
rather than exception. Nowadays – mainly because of the IT revolution – it is not
unusual to find small and middle-sized organizations which do business in more than one
country and employ people belonging to different cultures. This is seen that cross-cultural
management is now a major concern with corporate world.
Main benefit of cross cultural management is that understanding different people's point
of makes it easier for hotel industry to make changes and fulfil the needs of every individual
connected with their brand. With cross cultural management workforce diversity is also a major
part which is a current and a big issue for or organisations. It is often seen that company find it
difficult to adjust every individual within the organisation and which is also a time using process.
Porter’s Generic Strategy
It is a type of a model which is used by enterprise to achieve competitive
advantage within a specific market (Jiang, 2017). By focusing on this model, enterprise is able to
manage and maintain resources as well as other activities in proper manner. In relation of
selected organisation, they also use this analysis which is further discussed below-
Cost leadership-
It is a kind of a strategy which is defined as a strategy in which it aims at cost
restriction and provides customers products and services at affordable rate. It is also known as a
low cost leadership strategy which is used to gain more profit and sales. In context of ICH, they
need not have to use this strategy as they have Goodwill within a market (Guzzo, 2020).
Differentiation
It is another type of strategy which is defined as a tactic in which different
products with different prices are being introduced. In hospitality sector it is critically important
to use this strategy due to rise of competition within an area. So ICH uses differentiation strategy
within their hotel business, which allows them to be different from their competitors and achieve
higher profit and sales revenue.
Cost focus-
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It is a type of a strategy in which low cost is used with the small segment of market with motive
of earning profit for a specified period of time. Cost focus is beneficial for those organisations
which want to increase their brand awareness and this can be adopted by chosen hotel on a
seasonal basis.
Differentiation focus-
It is also strategy of Porter generic in which main purpose is to introduce new
product with new prices with in small segment of market. This is a feasible strategy which can be
used by selected hotel on the basis of which it is easy for them to increase effectiveness of their
marketing activities (Kalargyrou, 2017).
By analysis of Porter generic strategy it has been seen that it is necessary to use
strategies with business so that competitive benefits are being achieved and survival period of
enterprise increases for longer time interval.
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CONCLUSION
On the basis of above given report, it is assess that international hospitality signifies that
organisation focuses on offering facility to individual person in order to build their career within
hospitality sector. The international hospitality administration focuses on conducting different
activities and functions of company at both local and international level. The company taken for
this assignment is Intercontinental hotel group. This assignment provides different topic which is
SWOT analysis PESTEL analyses that help in considering internal or external environment
which imposes direct effect on organisation. In this assignment, the topic is chosen is named as a
“critical assessment of use of ICT that helps in increasing experience level of customer within
hospitality sector”.
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