Strategic Analysis and Recommendations for NH Hotel Group's Business

This report provides a comprehensive business strategy analysis of the NH Hotel Group, a multinational hotel company with over 350 hotels. It begins with an introduction to business strategy and its importance for organizational growth and sustainability. Part A of the report delves into external and internal analyses, including PESTEL, SWOT, Porter's Five Forces, and VRIO analyses. The PESTEL analysis examines political, economic, social, technological, legal, and environmental factors impacting the hotel group. The SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The Porter's Five Forces model assesses competitive dynamics, and the VRIO analysis evaluates the company's resources and capabilities. Part B explores strategic directions, evaluates growth platforms, and recommends suitable strategies, culminating in a strategic management plan with specific strategies, objectives, and tactics. The report concludes with a summary of findings and recommendations, supported by cited references.

HOSPITALITY BUSINESS
STRATEGY

MAIN BODY...................................................................................................................................3
PART A...........................................................................................................................................3
PESTEL analysis of NH group of hotel......................................................................................3
SWOT analysis of NH group of hotels........................................................................................4
Porters five force model...............................................................................................................5
VRIO analysis of NH hotel group...............................................................................................6
PART B............................................................................................................................................7
Evaluate the different types of strategic directions available to the organization.......................7
Justify and recommend the most appropriate growth platform and strategies............................8
Produce a strategic management plan with strategies, objectives and tactics.............................8
CONCLUSION ...............................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Business strategy is that type of strategy that has being used to promote growth of
business and makes it gain profit while maintaining sustainability in market. In other words this
is referred to as those actions and decisions which an organization is required to take in order to
achieve goals and objectives. This is being defined as strategy which has been formed in order to
promote better and effective decision making mechanism. Scope of this strategy is very wide
because they deal with aspects of business that helps in gaining progress within a business. This
report is based on NH group of hotel which is a multinational company for hotels which is
having 350 hotels under it. This report is divided into two parts. First part contains PESTEL,
SWOT, Porter’s five force model and VIRO analysis. Second part is going to deal with ansoff
matrix and strategic plan is to be covered in the end.
MAIN BODY
PART A
PESTEL analysis of NH group of hotel
PESTEL analysis is that kind of analysis which acts as tool that is required by an
organization to promote the growth of its micro-economic factors. This analysis is responsible
for making an organization aware about any kind of problem that is faced due to external factors.
It includes political, economical, social, technological, legal and environmental. They are
explained in detail as follows:
Political factor In this factor there are certain policies which are formed by government is
included under it. These policies relate towards government's intervention within organizations
business through tax and other policies which directly impacts organizations growth. NH group
of hotels is going to be impacted through this factor in a manner that if tax rate is increased then
prices of services provided by the hotel also increases which is eventually going to decrease
profit of the organization (Cheon and Cheon, 2016).
Economical factor This factor is related to circulation of economic and deals with various
aspects related to it. Economy of a country is one of the most important factors that deal directly
with the organization's economic factor. Under this inflation rate, interest rates, foreign exchange
rates, economic growth patterns etc. Such factors have drastic impact upon an organization's
growth. It impacts NH group of hotels in a manner that rise in the inflation rate of country's
economy would affect price of products and services. That makes loss to be faced by an
organization.
Social factor These are the factors that are related to society and the trends that has been taking
place in a society. It majorly deals with social environment that includes trends and taste of
persons or individual living in particular society. An Organization like NH group of hotels is

going to be effected from this is a manner that changes in the preferences of customers is going
to reduce customer base of organization that is going to result into negative impact upon
organization.
Technological factor As it can be observed that lot of changes has been taken place within
technological upon daily basis and for an organization it is very difficult to match the changes
and keep themselves updated with it. Lot of new technology has been developing in various
fields and is affecting business activities and process. An organization like NH group of hotel is
going to effected in positive manner because it is going to lead enhancement in its security and is
going make the stay of customer safer and better (Hwang and Lee, 2019).
Legal factor These are those factors that have helped in aiming an organization over legal
aspects which are required to be followed by an organization in order to make the business
performed in smoother manner. It also includes the laws that have been made to guide an
organization over its establishment. An organization like NH group of hotel is going to be
affected from this in a manner that it is required to follow all legal rules in order to run its
business within a country and avoid legal issues.
Environmental factor Such factors are responsible taking care of environment and deals with
various aspects of it. These factors deals with both biological aspect in which nature and its
aspects are covered. In these factors lot of policies has been formed to take care of environment
that is waste management, pollution control etc. Various committees have been formed that are
there to take care that rules and regulation is being followed properly. An organization like NH
group of hotels is required to follow all these rules because this is going to make that customer
attracted who are in favor of eco friendly products.
SWOT analysis of NH group of hotels
SWOT analysis is that kind of analysis that is done in order to mark out strength,
weaknesses, opportunities and threats which are to be caused in an organization through its
internal factors. These are responsible for an organization to growth itself and solve problems
related to internal factors( Papaioannou and et. al., 2018). This analysis is very important to
make an organization gain growth and provide stability to itself. An Organization like NH group
of hotels is going to be very much affected through this as it is going to lead towards forming of
strategies to deal with all kind of problems that has been accruing due to internal factors of
organizations. Further the analysis is done as follows :
STRENGTH
 NH group is having large customer
base because of which it has gained
lot of popularity and has build its
brand image.
 Quality of services is better which has
made strong base of customer.
WEAKNESSES
 NH group of hotels is required to
motivate employees because if
motivation lacks then task cannot be
achieved on time.
 Also NH group of hotels has is
required to take care of cost services in

 Promotion and advertisement that has
helped the organization to reach to
public in faster and easy manner.
Providing strong customer base.
relation to its customers.
 NH is required to work over
communication pattern has to be
improved as week communication as it
can barred information that can
decrease the task in smoother manner.
OPPURTUNITIE
 The biggest opportunity that is there
with NH group is its services that are
secure and safe to make customers
staying in the hotel comfertable.
 Diverse workforce has helped in
archiving of its targets in smooth
manner.
THREATS
 NH group is required to see over
assist competitors because they can
make the shifting of customers which
is going to lead towards decreases in
percentage of customers.
 Also fluctuation coordination and
technology is required to be enhanced
in order to make production smooth.
Porters five force model
Porter’s five force framework is the process by which analysis over competition within
an organization is done. They are derived through five elements related to competitive intensity
and attractiveness of an industry in terms of its profitability. This five force model is very
important for an organization because it is helpful in maintaining sustainability of an
organization within the market. Further it has been explained as follows:
Competition
The first of the five forces refers to various competitor’s ability to beat each other within
competition of market with product and services provided. The larger the number of
competitors, along with the number of equivalent products and services they offer, the lesser the
power of a company. If they are able to offer a better deal or lower prices. NH group of hotel in
order to achieve higher sales and profit prices should be higher. .
Potential of New Entrants
An organizations power is impacted through force and new entries with in market. Less
time and money is required to maintain costs for competitors to enter into market and
effectiveness of competitors makes establishment of organization's position with significance.
NH group of hotel with strong barriers to entry is ideal for existence within that industry since
the organization would be able to charge higher prices and negotiate better terms (Peters and
Kallmuenzer, 2018)

Power of Suppliers
The next factor in the five forces model addresses how easily suppliers can drive up the
cost of inputs. It is affected by the number of suppliers of key inputs of a good or service, how
unique these inputs are, and how much it would cost a company to switch to another supplier.
The fewer suppliers to an industry, the more a company would depend on a supplier. As a result,
the supplier has more power and can drive up input costs and push for other advantages in trade.
NH group of hotels is going to be benefited in a manner that there are many suppliers or low
switching costs between rival suppliers which can keep its input costs lower and enhance its
profits.
Power of Customers
Ability of customers is required to make prices lower of the level in which five forces is
being used. This is affecting many customers and buyer of an organization. Significance of a
customer is there for finding of new customers that has been making output to be attained in
desired manner. Cost of finding an customer in a market should be checked by the customer. NH
group of hotels is having small clients that helps in making entrance of buyer of an company to
attain output with significant approach. Also it is helpful in making better deals possible through
negotiation.
VRIO analysis of NH hotel group
VRIO is the process by which analysis is being done over various factors that helps in
forming strategies related to growth in an organization. In this analysis the main focus is over
value, rarity, imitability and organizational support. Such analysis is going to be based upon NH
group and has been explained as follows:
VALUE: NH group are having high value and is very much popular as a brand which makes it
compatible and also managing of financial services which made resource utilization possible in
positive manner. All these lead towards building of brand value and making it a popular
organization that is providing services and facilities to its customers (Rosalin, Poulston and
Goodsir, 2016).
RARITY: NH group is being using it resources in very appropriate form that has made in
maintaining of services and products of the hotels that come under this organization. Also this
organization has promoted optimum utilization of resources that had made lot of task achievable
within an organization. Management team of NH group is very effective because they have
formed strategies that are being used for making better and effective utilization of resources.

IMATIBILITY: NH group of hotel is among the most popular organizations that holds an very
strong image within market. This is because both leaders and mangers has done lot of hard work
in taking it to this level and make it a big success. Under various hotels comes that are providing
services to its customers in appropriate manner. Still organization is required to focus upon its
internal and external factors because they make growth of organization possible and also leads
towards there uplifting of an organization. Coordination is required to be check to provide
customer satisfaction.
ORGANIZATION SUPPORT: NH group of hotels this is considered to be one of the most
important thing that provides strong support and is always ready to enhance its resources through
exploring them in the best manner possible. Also the organization uses diverse workforce which
helps in making an organizations work complete within time period specified. Risk taking factor
has played a very important role in making employees part of decision making process has lead
towards forming off effective decision towards welfare of an organization. NH group is always
ready to take risks which show that they are visionary and goals oriented.
PART B
Evaluate the different types of strategic directions available to the organization
This model is very essential for strategic marketing planning in which marketing
planning is to be focused upon. It has to be applied for looking at the growth and opportunities
that leads towards revenue generation for an business organization is going to be helpful in
generating new product and services. So it's sometimes known as the ‘Product-Market Matrix’
instead of the ‘Ansoff Matrix’. The main focus is over growth and it is the most popular model to
be used. It leads towards evaluation of opportunities for companies to increase their sales
through showing alternative combinations for new markets. In this matrix there are four kinds of
stages that are involved in it and they are as follows
Market Penetration: In this an organization seeks over achieving growth with an existing
product which is present there within market segment in order to increase market share.
Market Development: In this part an organization is mainly required to be focused upon
segmenting of a product with existing market segment. This is going to be achieved through
performing research of the market and various aspects of it that is going to make it easy for an
organization to launch its product with improvised services (Sowanber, Ramkissoon and
Mavondo, 2018).
Product and Development: An organization develops product and targeting over existing
market segment. This is going to be done by using of cheaper manufactures, improvising in
quality and enhancing.

Diversification: This is helpful in developing of a diverse from of market through utilizing of
both the market and product development which is going to be helpful in achieving diversity.
Justify and recommend the most appropriate growth platform and strategies
The strategy that is going to be best useful for NH group of hotels is that of market
development which means that when an organizations is required to set itself in the market with
its existing services then he is required to do analysis of market and mark pout all the changes
that has been taking place within an market. Also it should analyze the trends that have changed
from past years. In these economic policies plays a very important role to make an organization
grow itself in an existing market. This is going to helpful in making an organization to gain
sustainability within a market. In this an organization has to enter with exiting product in a
market.
Produce a strategic management plan with strategies, objectives and tactics
Executive summary
NH group hotels are going to include a full service, three- meals-a –day in the hotels
which come under it. Also strategies are going to be prepared which is going to make invest
process easy and reduces complexity from it. Then improvising in the technology is going to be
there. All this is going to be provided to the customers in order to make them attractive towards
the hotels. Then techno logic advancement like installation of bio-metric, introducing electronic
locks and electronic lockers in every room to provide full security within the hotel to its
customer to make their visit safe.
Mission and vision
Mission of NH group is to provide with product and services of high quality. Also
satisfaction of the organization is going to create towards customer. Mission of organization like
NH group of hotel is to promote diversity. Mission is based upon vision that is going to be
achieved by creating efficiency in services with satisfying needs of customers.
OBJECTIVE
NH group is having objective to sustain in market with the help of attracting an customer
through business expansion (Yen, Singal and Murrmann, 2016).
STP: In this NH group of hotels is going to use targeting, segmenting and positioning as a
strategy this is going to help in the consideration of new product into an existing market.
Segmenting: This is the part in which various segments are been segmented by an organization
in order to expand business. This is done on the basis of behavioral characteristics and
geography. NH group of hotel is required to target market on the basis of geographical area.

Targeting: NH group of hotels has to target different strategies in market. In order to introduce
itself within the international market and making it more popular with increasing of brand image.
Positioning: NH group of hotels has to position its vintage products through opening way of
making its services smoother and easily accessible to its customers.
Entrepreneurial Strategies: As per this an organization is required to expand in various
markets of countries with existing product. This is going to make business attract new customer
in market that is going to be operations for NH group of hotel.
Marketing mix: In these managers is going to play an important role. As they are going to
examine product, price of the new areas in which market is to be setup. This is going to make
NH group of hotels to set up market and cover vast area.
Financial information: launching of product in an existing market. This is going to help NH
group of hotels to analysis its finances.
CONCLUSION
From the above report it is clear that strategy of business is a very important part that is
required to be there for growth of an organization. Then PESTEL analysis for external factors
and their impact. SWOT analysis is done, ansoff matrix is also made. VRIO analysis is done. In
the end an strategic plan is made upon NH Group.

REFRENCES
Books and journals
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Social Responsibility, Quality & Price Value, and Customer Satisfaction: Focused on the
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Management & Tourism. 9(2 (26)). pp.241-247.
Law, R., Fong, D.K.C., Chan, I.C.C. and Fong, L.H.N., 2018. Systematic review of hospitality
CRM research. International Journal of Contemporary Hospitality Management.
Martínez-Martínez and et. al., 2019. Knowledge agents as drivers of environmental sustainability
and business performance in the hospitality sector. Tourism Management. 70. pp.381-
389.
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tourism and hospitality industry. In Innovative Approaches to Tourism and Leisure (pp.
417-432). Springer, Cham.
Peters, M. and Kallmuenzer, A., 2018. Entrepreneurial orientation in family firms: The case of
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In The Routledge Handbook of Hospitality Marketing (pp. 384-396). Routledge.
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