SPHI 27: Strategic Analysis of London Farringdon Hotel Performance

This report provides a comprehensive analysis of the business strategy employed by the London Farringdon Hotel, a hospitality establishment operating in the UK. It begins with an introduction to business strategy and its importance, followed by a detailed examination of the factors influencing the hotel's strategic decisions. The main body of the report delves into the evolution of these factors, utilizing PESTLE and McKinsey 7S models to assess the internal and external environments. It further explores creative and future-based strategies for gaining a competitive edge in the hospitality industry, including guest-centric approaches, new technologies, and business expansion. Finally, the report evaluates the performance metrics used by the hotel, such as key performance indicators and the balanced scorecard, to assess the effectiveness of its strategies. The report concludes with a summary of findings and a list of references.

SPHI 27
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Table of Contents
Introduction...............................................................................................................................................3
Main body..................................................................................................................................................3
Evolution of factors to implement the chosen strategy............................................................................3
Creative and future based Strategies to take competitive advantages......................................................6
Analyse and evaluate the performance metrics........................................................................................8
Conclusion................................................................................................................................................10
Reference..................................................................................................................................................10

Introduction
A business strategy is the Long term plans that are created by leaders and managers of the
company to reach the diverse, future state they envision. Strategic and involve the goals and
objectives of the company, development of new product and planning about the customers home
company wants to sell their products.
This report will cover case study of the London Farringdon (Smithfield) hotel. Who
provide hospitality, logging facilities and premium room facilities to their customers. they are
operating their business within the boundaries of United Kingdom and having a huge repetition
and UK.
This report will critically analyse the most appropriate factors that in impact on the
business strategy of London Farringdon hotel (Yuan, Lu, Tian and Yu., 2020). It will explain by
using the internal and external factors of the business environment. this report will also Research
about creative business strategies for the London Farringdon hotel As a future strategy selection
to be competitive in the hospitality industry. In the end of this report will evaluate ally some
performance metrics such as key performance indicators balance scorecard it is easy to identify
the efficiency of business strategy used by London Farringdon hotel.

Main body
Evolution of factors to implement the chosen strategy
The business strategy concerned the growth an expansion of business within the market
where companies operating their business. there are various business strategies that are used by
companies to take competitive advantages and show their presence. some of them are
Operational strategies, business strategies and corporate strategies. The operational strategies
developed to improve the efficiency of business operations, business strategies I used to take
competitive advantages within the market and corporate strategies are am too long term
development of the organisation. London Farringdon hotelis using all operation, business unit
and corporate within their business that help them to increase their production and efficiency of
the business to be successful within the market where they are operating their business. there are
some Some internal external factors that can be used to identify the strategies used by London
Farringdon hotel and how these factors are affecting their strategies.
Pestle analysis
Political factor
Political factor has huge impact on the business strategies of the London Farringdon
hotel (Park and Mithas., 2020).New policies created by the government can force this
organisation to change their strategies to stay within the competition. changing the taxes can also
affect the strategies of the company related to the product prices.
Economical factors
Economical factors Also has huge impact on the profitability of the company an
influence on their business strategies. prices of the raw material increasing day by day which is
affecting the business of London Farringdon hotel. it is necessary for the London Farringdon
hotel to create a new strategies and one of them can be creating a good relation with the suppliers
to decrease or get relief in raw material prices.
Social
The hospital industry is highly competitive industry and it is affecting the strategies of the
London Farringdon hotel. It is important for this hotel to provide a timely an class services to

their customers. They should understand the needs and demand of the customers and implement
the new strategies accordingly. on the other side London Farringdon hotel's Marketing team
helping the production team of the company in continuous improvement identify the needs and
demand of the customers.
Technology
London Farringdon hotel is using a technology effectively at their workplace to create a
good experience for the customers. technology strategy used by London Farringdon hotel is
effective for them to take competitive advantages and helping them to grow effectively within
the market where they are operating their business (Sia, Soh and Weill., 2016).London
Farringdon hotel Can continually take competitive advantages if their leaders and managers
implementing trending technologies at their workplace.
Environmental
Environmental support can also be a good strategy for the London Farringdon hotel. They
can give support by encouraging people toward the Welfare of environment and they can also
run programmes where they can speak about environmental issues. It will help them to create a
good image in customers mind and they will able to gain competitive advantages.
Legal
London Farringdon hotel is operating their business legally and they are Staying all the
legal tax to their government. It is helping them too get support from the government which can
also be a good strategy.
McKinsey 7s model
Strategy
The strategy used by London Farringdon hotel his based on improving the efficiency of
their functions with the focus of improving the quality of product and services (AkterAnd et.al.,
2016). to improve efficiency of function company provide training and development to their
implies that helps to Make the skills more effective and they are able to provide best possible
services to the guest.

Structure
The London Farringdon hotel has simple organisational structure that is helping them
too take competitive advantages. the this simple structure is helpful to increase the flow of
communication within the workplace of company and lower level employees care provide any
formation to the higher level leaders and Managers easily.
System
London Farringdon hotel is using various systems at their workplace and one of them is
inventory management. this is a system that is helpful to manage the inventories effectively and
identify availability of the resources that is helpful for the company to know that how nice
resources they have and how much they will need it for in future.
Skills
Skills who are working at the workplace of London Farringdon hotel I knowledgeable
and talented (Ukkoand et.al., 2019). It is because they get skill based training that helped them to
improve their work efficiency and they get chance to develop new skills.
Stuff
Through the generous benefits packages, and comprehensive training, London
Farringdon hotelable to have a high quality employees who are providing quality of services to
the guest who are taking accommodation services.
Style
A style of the London Farringdon hotel is defined as oriented, innovative Anne flexible
that is helping them to take competitive advantages within the market where they are operating
their business.
Creative and future based Strategies to take competitive advantages
There are some creative and future based strategy that can be helpful for London
Farringdon hotel To take competitive advantages within the market and they will able to show
their presence as a emerging hotel. some of these strategies that can be used by this organisation
are-

Give guest control over the brand culture
It can also be a best strategy that can help them to take competitive advantages within the
future, it is necessary for the London Farringdon hotelso instead of telling guests at what level
experience when they will result their hotel, they should let them shape the direction of their stay
(Yuliansyah, Gurd and Mohamed., 2017). by the extension of the business, it will help them to
contribute toward the brand image and potentially to improve the reputation of the London
Farringdon hotel within Hospitality industry of the United Kingdom. to do this it is necessary for
the company to enable network environment, social an intimate environment where there is a
constant buzz around the property. Faciliate positive interaction- Give the guest opportunity to
attend a bingo night where they can win the prize such as bar and restaurant vouchers and Amity
discount. create social platforms- A group Honda Facebook specific to the guest Sing at the
property of London Farringdon hotel will increase the networking, meetups and social
atmosphere for the guest.
New technology
New technology trends Can be used by London Farringdon hotel to take future growth
and take competitive advantages. it is necessary for the leaders and managers to identify those
trends that are future based and it can be helpful for them to grow their business effectively and
they will able to achieve the objectives and create opportunities in future.
introducing new products
London Farringdon hotel Can develop new products and services as a future plan. it will
help them to take competitive advantages in the future and they were able to show their presence
has a emerging brand. it is necessary for every company within the hospitality industry to come
up with the new ideas and services that can be useful to create a good experience for the
customers and help them to grow rapidly.
Business expansion
Business expansion can be a good future based strategy for the London Farringdon hotel.
this company can expand their business on the global level and show their presence on the
international platforms (Hart, Sharma and Halme., 2016). globally they can earn higher profits

and expand and aware people about their product and services. in future they will able to take
competitive advantages and they were able to show their presence.
Embarrass these strength of properties destination
Demonstrating the culture awareness and sensitivity at the London Farringdon hotelwill
help to impress international and local travellers alike. Guest who are looking for the meaningful
and proper way to engage with the local cultural flavour of their destination so London
Farringdon hotel we want to help them to do this incorporating at end too their property. leaders
and managers of the hotel can provide open source for the farmers market and other similar
activities. they can also collaborate with the other companies to promote some of the things like
public events, educational forums And exhibitions. London Farringdon hotelCan also incorporate
the work of local artists, designers Andy craft went into the space of the hotel. One of the best
strategy is to how is the event related to the local culture and organise a party for the guest every
night. it will also be a good attraction for the people and they will likely to come to take
accommodation services from London Farringdon hotel. this will help them to gain future
opportunities and they will take competitive advantages in future.
Think globally
Most of the hotels think locally but the future is and creative idea is about thinking
internationally about the business (González-Rodríguez and et.al., 2018). Leaders and managers
of the London Farringdon hotel also should think Globally instead of local. the global hotel
studies expected or says that the hospitality industry is expected to see the higher growth in the
market need for up and coming tourism destination that previous generation of travellers they
haven’t even considered. The demand of international travelling is Flashing thanks to the law
unemployment rates and post recessions in the economy, causing top airlines to add more direct
flight routes to the foreign countries. the airlines added direct network to this year and the plan
exponential future. it will increase the austerity and provide a competitive advantages to the
London Farringdon hotel.
Fast hotel services
It is necessary for the hotels to provide fast services to their guest there are many hotels
who are using the innovative ideas to provide a fast services to the guest that helps them to gain a

loyalty of the customers. London Farringdon hotel can also provide fast services to their
customers by using the AI technology. robots are able to provide fast services in less time and it
will be attractive for the guest and create a good experience for them. They can use this strategy
in future an advanced technology can help them to take competitive advantages and provide
opportunity to show their presence within the hospitality industry.
Analyse and evaluate the performance metrics
It is necessary for human resource management team of London Farringdon hotelTo
measure the performance of the company strategies. there are some metrics that can be used by
HR Manager of company to measure performance of strategy used by London Farringdon hotel.
some of the performance measuring tools are Key performance indicators, critical Success
Factors and balanced scorecard technique (Moktadir and et.al., 2020). this tool can help to
measure performance and identify how strategies of the London Farringdon hotel are
performing.
Key indicator performance metrics (kPI)
The key performance indicator is an value that can be measured and demonstrate how
effectively accompanies achieving . their business objective. companies use this tune add
multiple level of they are organised in to evaluate their success at reaching their targets. the high
level of key indicator performance may focus on the overall performance of the business while
the low level kpi may focus on the process of Department such as support, marketing, sales etc.
Leaders and managers of the London Farringdon hotel can use this indicator to measure
the progress toward achieving their goals and objective through the business strategies. it will
provide a proper outcomes and also help to identify The Who is responsible for the business
outcomes. the outcome always matter for the company because this give then a really match
about their business and the strategies. It is necessary for the company to London Farringdon
hotel to have a clear objectives for their key indicator performance and on the basis of those
objectives this tool will measure the performance.
Balance scorecard
A balanced scorecard is an strategic management performance metric used to identify and
improve the various Internet business functions and their resulting the external outcomes. it can

be useful tool for the London Farringdon hotel to identify how the internal functions are working
and identify the strategies used by leaders and managers are effective or not. This technique is
used to measure and provide the feedback to the organisation, according to the feedback get from
the balance scorecard leaders and managers of the London Farringdon hotelcan change their
strategies or Improve their strategies (Holotiuk and Beimborn., 2017). to get better outcomes the
data collection is crucial to providing quantitative result as executives and managers gather and
interpret the information and use it to make the better decision for the organisation. With the
help of feedback they will know How their strategies are performing and what are the outcomes
of it.
Critical Success Factors
The critical success factor are indicators for activities, opportunities and condition
required to achieve the goals and objectives within a mission or project of the London
Farringdon hotel. It is differ per organisation and reflect the current and future objectives of the
company. It is essential that the course of action is coordinated with those aspects that help the
organisation to fulfil their missions. this key variables often have a huge impact on the degree to
which company is successful and effective in reaching Their goals And help them to identify if
their strategies are effective for their business or not and give them a measurable data about their
strategies process and their effectiveness.
Conclusion
As per the report has been critically analyse the most appropriate factors that impact on
the business strategy of London Farringdon hotel. It has been explain by using the internal and
external factors of the business environment and use tools like PESTEL and 7s model. this report
also has been Research about creative business strategies for the London Farringdon hotel As a
future strategy selection to be competitive in the hospitality industry. In the end of this report has
beenevaluated some performance metrics such as key performance indicators balance scorecard
it is easy to identify the efficiency of business strategy used by London Farringdon hotel.

Reference
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Strategy. MIS Quarterly Executive. 15(2).
Akter, S., And et.al., 2016. How to improve firm performance using big data analytics capability
and business strategy alignment?. International Journal of Production Economics. 182.
pp.113-131.
Ukko, J., and et.al., 2019. Sustainability strategy as a moderator in the relationship between
digital business strategy and financial performance. Journal of Cleaner Production. 236.
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Yuliansyah, Y., Gurd, B. and Mohamed, N., 2017. The significant of business strategy in
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Hart, S., Sharma, S. and Halme, M., 2016. Poverty, business strategy, and sustainable
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González-Rodríguez, MR., and et.al., 2018. Revisiting the link between business strategy and
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