Strategic Analysis of Novotel Hotel Chain: PESTELE and SWOT, HOS802

This report provides a comprehensive analysis of the Novotel hotel chain, a multinational service provider in the tourism and hospitality sector. The analysis utilizes both PESTEL and SWOT frameworks to evaluate the hotel chain's internal strengths and weaknesses, as well as external political, economic, social, technological, legal, and environmental factors. The report delves into the political stability, economic factors like revenue and profits, social aspects including customer service and cultural diversity, technological advancements such as the use of the Internet of Things, environmental concerns, and legal compliance. The SWOT analysis identifies the chain's strengths (reputation, customer service, financial stability), weaknesses (non-strategic business, loss of brand value), opportunities (expansion, partnerships), and threats (currency instability, competition). The report concludes with recommendations aimed at improving customer service, advertising, and technology implementation, as well as addressing the identified weaknesses and threats to maintain market position.

RUNNING HEAD: PESTELE AND SWOT ANALYSIS OF THE HOTEL
CHAIN GROUP OF NOVOTEL group
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PESTELE AND SWOT ANALYSIS OF THE HOTEL CHAIN GROUP OF NOVOTEL
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Executive Summary:
The Novotel group of the hotel chain is the multinational service provider in the tourism and
hospitality sector. This group of hotel chain provides luxury hotels and resorts to its
customers. The aim of this paper is to analyze this group. This analysis will help the Novotel
group of the hotel chain to detect its key strengths and weakness. PESTEL analysis and
SWOT analysis are used to analysis the Novotel group of hotel chain. There are some
recommendations for the Novotel group of hotel chains at end of this paper.

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Table of Contents
Introduction:...............................................................................................................................3
Discussions:................................................................................................................................3
PESTEL analysis of the hotel chain group of Novotel:.........................................................3
SWOT analysis:.....................................................................................................................6
Conclusions:...............................................................................................................................8
Recommendations:.....................................................................................................................9
References:...............................................................................................................................10

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Introduction:
Novotel is the hotel chain group of the Accor S.C Hotel group. Paris based Accor S.A
is the leading hospitality group with four thousand hotels in eighty-five countries in this
world. Accor S.A provides every range of hotels. The hotel chain group of Novotel is the
middle range hotel of Accor S.A. Accor S.A provides these middle-range hotels in Europe
and the Asia region. The aim of this paper is to make a systematic and thorough evaluation of
the hotel chain group of Novotel. This paper will analysis the hotel chain group of the
Novotel group with PESTEL analysis and SWOT analysis. Through the SWOT analysis, the
company will find the internal strengths and weakness and through PESTEL analysis, the
Novotel group of hotel chain will detect the external factors. In the end, there are some
recommendations, which will help this hotel chain group of Novotel.
Discussions:
The hotel chain group of Novotel will be analyzed through PESTEL analysis to detect
the internal weakness and strength and through SWOT analysis, this company will focus on
the external factors (Aithal, 2017).
PESTEL analysis of the hotel chain group of Novotel:
PESTLE analysis is the framework to analyze any organization and detect the external
marketing factors, which create an impact on the organization. PESTLE analysis helps the
organization to improve by detecting the external factors. This tool has five dimensions,
which are political, economic, social, technological, legal and environmental.

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Political factors:
Political factors include government policy, political stability or instability in other
countries, foreign trade policy, environmental law, labor law, trade restrictions. The
government’s role is crucial in this sector. Political stability in a country is important to
maintain the business. The hotel group chain of Novotel is present in many countries in
Europe and Asia. This group is interested to invest in politically stable countries. It will be
helpful for the organization to continue this business peacefully. This organization is affected
by the political and legislative conditions (Perera, 2017).
Economic Factors:
The hotel chain group of Novotel is a part of the Accor S.A group. This group is one
of the most profitable business groups. Economic factors are important for this hotel chain
group. Economic factors are related to the revenue and profits of this organization (The
History of Accor, 2019). The most important economic factors for this organization are
purchase, takeover, and demerger.
Social factors:
Social factors are important for any hospitality service. The hotel chain group of
Novotel provides good customer service. Because of social changes in the world, this group
uses seven languages through their online and maps and booking procedure. This group
believes in the equality of men and women. Because of this thought, this organization is
recruiting an equal number of male and female employees. With the help of technology, other
competitors are providing good customer experience. This organization has to improve
customer service to beat other groups of the hotel chain. This organization created corporate

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PESTELE AND SWOT ANALYSIS OF THE HOTEL CHAIN GROUP OF NOVOTEL
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sponsorship for health, child aid, local aid and cultural. This organization respects cultural
diversity, generation, and professional differences.
Technological factors:
In the sector of tourism and hospital management, technology plays an important role.
The hotel chain group of Novotel and the customers of this group get benefits from the
technology. In the field of customer experience, the use of the Internet of things technology is
helping both the customer and the organization. With the use of technology, this organization
can improve customer service, which will be beneficial for this organization. This
organization can use technology for website and hotel booking, accurate information system,
electronic media cards. Threats from technology are always present. Therefore, this
organization has to deal with technology properly and with security. The use of technology is
important for this hotel group of chain because this organization has a business in more than
80 countries.
Environmental factors:
Novotel is the multinational hotel chain group. This organization has a hotel in
Europe and Asia. The environmental factor is an important issue for this group. European
countries are very strict about the environment. This organization has to follow
environmental rules. Without following these rules, this hotel chain group cannot continue its
business. This earth is in a critical environmental situation. While expanding their business
this huge multi-national organization should take steps for the environment. This group is
determined to maintain the environmental factors for its own benefits.

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Legal factors:
To maintain a successful business in many countries, a multi-national organization
has to follow the legal factors. Legal factors contain customer law, copyright law,
employment law, discrimination law, fraud law, health and safety law, import law, export
law. The hotel chain group of Novotel is bound to follow these laws (Goetsch & Davis,
2014). To do business in a country any organization has to follow the law of that country.
The hotel chain group of Novotel are providing luxury hotels and resorts after following all
of these laws.
Conclusion of PESTEL analysis:
PESTEL analysis will help the hotel group chain of Novotel to detect the threats and
weaknesses of the organization. The PESTEL analysis of this organization provides the
threats, which are customer service, political stability, proper use of technology,
environmental crisis and the weaknesses, which are investing in the wrong company, the
threat from technology. This organization has to solve these problems (Cadle, Paul & Turner,
2014).
SWOT analysis:
SWOT analysis is the strategic planning technique, which is used to help the
organization to detect strengths, weakness, opportunities, and threats (Sarsby, 2016). The
SWOT analysis will help the Novotel hotel chain group to expand its business with
precaution (Gürel & Tat, 2017).

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Strength:
Internal strength provides the advantage of an organization. The strength of this group
is the ethereal reputation, professional corporate culture, the best customer experience
service. This group covers a wide market segment by providing a medium range of hotels and
resorts in Europe and Asia. Financial resource and stability is strength of this group. This
group has been utilizing its financial strength to expand its business in many other countries
(Grant, 2016). This group of hotel chain has the interest to cover various regions. This hotel
chain group has high brand loyalty. It is the strength of the Novotel hotel chain group. This
group is successful to use their strength appropriately.
Weakness:
This is an internal strategic factor. This group of hotel chain has a non-strategic
business. Though this group of hotel chains has perfect brand loyalty, yet this group is losing
its brand value. In recent times there are many other hotel group chains, who are providing
hotels and resorts with the same customer services at low cost. By internet usage, customers
can easily gather information and they can compare the information with other hotels and
resorts (Westwood, 2013). This group is a multi-national hotel chain. Maintain the same
service in every country is very difficult. These are the weakness. The organization has to
solve these issues.
Opportunities:
The hotel group chain of Novotel is doing global business. There are many
opportunities for this group. As this group is financially stable, this group can expand its
business in different regions, such as Australia, Asia. This group has been creating a
partnership with major firms to become a market leader. This group is successful to create

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PESTELE AND SWOT ANALYSIS OF THE HOTEL CHAIN GROUP OF NOVOTEL
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different market strategies. With the help of financial stability and perfect brand loyalty, this
group of hotel chains can increase their business. They have the opportunity to beat the other
competitors in this sector. This group provides luxury hospitality (Discover NOVOTEL
hotels and services, 2019). Customers of this group are financially able to maintain brand
loyalty. This group has to use these opportunities properly to beat other competitors.
Threats:
The business of this group is spread in more than eighty countries. They have to face
foreign country currency instability. In the past, the revenue of this group was affected by this
fluctuation. In the tourism and hospitality sector, there are several threats like a terrorist
attack, unstable political situations, and economic slowdown. This group of hotel chains has
so many international competitors, like Marriot international, Wyndham worldwide in this
tourism and hospitality sector (McDONALD, 2016).
Conclusion:
Based on the above SWOT analysis of the Novotel hotel group chain, it can be said
that this group has to use its strength, opportunity properly to handle the weakness and
threats.
Conclusions:
Based on the PESTLE analysis and SWOT analysis of the hotel group chain of
Novotel group, it can be said that, though the Novotel group is one of the most popular
multinational group in tourism and hospitality sector, yet this group has to work on the
weakness and threats to maintain its market position.

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Recommendations:
There are some recommendations for this group of hotel chains. This group has to be
careful about the advertising and the pricing system. This group should improve customer
service and implement the necessary technologies. Those customers, who want to travel with
luxury hospitality experience, should get extra benefits from this hotel chain group. To
improve brand image and brand loyalty this group should focus on better customer service
and advertisement.

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PESTELE AND SWOT ANALYSIS OF THE HOTEL CHAIN GROUP OF NOVOTEL
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References:
Aithal, P. S. (2017). An Effective Method of Developing Business Case Studies based on
Company Analysis. International Journal of Engineering Research and Modern
Education (IJERME), ISSN (Online), 2455-4200.
Cadle, J., Paul, D., & Turner, P. (2014). Business analysis techniques. Chartered Institute for
IT.
Discover NOVOTEL hotels and services. (2019). Retrieved 24 August 2019, from
https://group.accor.com/en/brands/midscale/novotel
Goetsch, D. L., & Davis, S. (2014). Quality management for organizational excellence:
Introduction to total quality.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons.
Gürel, E., & Tat, M. (2017). SWOT analysis: A theoretical review. Journal of International
Social Research, 10(51).
McDONALD, M. A. L. C. O. L. M. (2016). Strategic marketing planning: theory and
practice. In The marketing book (pp. 108-142). Routledge.
Perera, R. (2017). The PESTLE analysis. Nerdynaut.
Phillips, P., & Moutinho, L. (2018). Case study analysis. In Contemporary Issues in Strategic
Management (pp. 80-97). Routledge.
Sarsby, A. (2016). SWOT analysis. Lulu. com.

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The History of Accor. (2019). Retrieved 24 August 2019, from
https://group.accor.com/en/group/who-we-are/our-history
Westwood, J. (2013). How to write a marketing plan. Kogan Page Publishers.