Strategic Management for SMEs: Qbic Hotel's Strategy Analysis Report

This report provides a comprehensive strategic management analysis of Qbic Hotel, a small business enterprise in the hospitality industry. The report begins by critically defining the organization's current strategic direction, including its vision, mission, and competitive advantages. It then delves into an environmental scan using PESTLE and SWOT analyses to assess the external and internal environments, respectively. The PESTLE analysis examines political, economic, social, technological, environmental, and legal factors impacting the business, while the SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. Furthermore, the report includes a stakeholder analysis to evaluate the expectations of different stakeholders and their relative power. Finally, based on the analyses, the report proposes a new strategy for the long-term sustainability of Qbic Hotel, aiming to enhance its competitive position and market share within the UK hospitality sector.

STRATEGIC MANAGEMENT
FOR SMES

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Critically define the organisation current strategic direction...................................................3
2. Define PESTLE and SWOT to conduct the critical analysis of organisation external and
internal environment....................................................................................................................5
3) Stakeholder analysis and evaluate expectation of different stakeholder.................................9
4) Propose a new strategy with long term future of Qbic hotel.................................................12
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Strategic management defined as to make logical decision and develop new object to
keep pace with changing business environment (LIU, 2017). It is an enterprise that helps an
organisation to gain competitive advancement and also improve market share. Implementation of
strategic management is defined as current activity of the small enterprise and this has also
become stringent requirement. On the other hand, strategic plan of action termed out as
significant process in which senior management identifies the course of action and also respond
to complex and dynamic environmental forces. Strategic management is termed out as an
effective tool as this aids to frame out the overall plan of action that helps to accomplish the goal
of small business ( Neugebauer, Figge and Hahn 2016).
The present report is based on the business activities of the Qbic as this small business
enterprise. It is hospitality industry that provides accommodation services to customers.
Furthermore, study has covered the activities as this critically appraise the organisation with use
of current strategic direction. The environment scanning has been conducted with the use of
analysis as PESTLE and SWOT. Furthermore, stakeholder analysis will be conducted to evaluate
the expectation of different stakeholders and their relative power. Lastly, new strategy will be
adopted for the long term sustainability of the organisation.
1. Critically define the organisation current strategic direction.
Company overview- Qbic is small business enterprise and this is leading hospitality
activities within the United Kingdom. It is company advanced that operates their business
activities gradually and in contemporary situation. Thus, main focus of this entity is to establish
the services that can provide the superior services to customers. Therefore, the commitment,
focus and approach to bring out the innovative activities leads to accomplish the desire success.
This is the brand that targets the both travellers and corporate employees (Phillips and Moutinho,
2018 Rothaermel, 2017). In order to get the competitive advancement this entity also offer the
services that provide better convenience to customers.
Vision- “To deliver the exception experience to customers with warmth of their hospitality”.
In order to accomplish the vision, the entity needs to adopts the plan and actions as-
 To use effective techniques that can promote better and effective services to customers.
 To provide better services to customers along with quality services with better prices.

 In order to accomplish the vision, the entity needs to make the new strategies and polices
that operate the business activities in streamlined manner and also assist to accomplish
the high market share.
Mission- To create heartfelt experience for guest and meaningful opportunities for customers.
This develops high value for owners and positive impact within communities.
Competitive advancement within marketing strategy of Qbic-
It can be determined with the use of analysing the two things as-
1. Strong financial company- This is the enterprise that has strong financial funds being
the small medium enterprise. It is taking efforts to generate large amount of profitability
with use of attracting customers by their services ( Cortimiglia, Ghezzi and Frank, 2016).
This firm provides adequate facilities to their customers to maintain the long term
sustainability with accomplishing the strong financial company.
2. Renowned brands- Brand recognition and brand trust are the most crucial aspect for the
player within the hospitality industry. It is the entity that is termed out as significant
brand over the years. This is also successful in marketing among its customers. Thus,
basic aim of the organisation as-
 To make technical innovation that assist to improve customer experience and regular
upgrade the process of business.
 It leads to have exceptional employee retention.
 This shows the strong brand presence with around number of hotels over the 78
countries.
Use of technical advancement- The enterprise as Qbic provides the digital check in facilities to
customers. Therefore, digital key innovation aids to conduct the business practices effectively
and efficiently. With use of technological the firm can able to conduct the business activities
effectively and efficiently (Akdogan, Dogan, and Cingöz, 2015).
Organisation core competencies- The core competencies of the enterprise is to outlines the
niche that that created by the firm for themselves through their valuable resources and unique
commodities. In addition to this, customer satisfaction is the core of the service strategy (Phillips
and Moutinho, 2018). In order to accomplish the desire aims the entity needs to offer the
excellent service to their customers. It is firm that streamlined their business activities with
accomplish the goals and also aids to enhance the customer loyalty. Additionally, strong and

transformational leaders of the entity has motivated their employees to serve the visitors with the
passion.
Dynamic capabilities- The dynamic capabilities of the enterprise is to sketch the ability to
identify, build internal and external competencies in order to compete with dynamic business
environment (Neugebauer, Figge and Hahn 2016 ). Therefore, Qbic is continually taking the
initiatives to deliver those services that aids to cater the needs of the customers. In addition to
this, quoted enterprise uses the dynamic framework that aids employs non imitable capabilities.
Therefore, the performance of the entity is needs to be monitored to undertake the business
activities in effective and efficient manner. Therefore, the best performing arrangement of the
brands helps to undertake business activities effectively and efficiently.
Present strategy for creating competitive advancement- The entity as Qbic uses the service
differentiation strategy. It is one of the effective that aids to offer competitive leverage over the
rival companies. By offering the services to customer with use of digital key platforms assist to
stands out in the stiff competition (LIU, 2017). This enterprise uses the digitalisation scheme that
is inclusive of mobile services, data driven personalization, reservation channels, loyalty
programmes, integrity of visitors etc. This kind of services helps to promote the business
activities in effective and efficient manner. It is the hospitality brand that is undertaking steps
that aids to undertake tremendous development. In addition to this, this is the enterprise that is
competing on the components as brand, names, pricing, accommodation and cordial behaviour of
the staff.
2. Define PESTLE and SWOT to conduct the critical analysis of organisation external and
internal environment.
PESTLE analysis defined as strategic tool that aids to analyse the macro environment of
the enterprise. This is framework that stands for the political, economic, social, technological,
environmental and legal components that affect the macro environment condition of the
enterprise. It is analysis that provides the valuable insights in terms to operating the challenges
that assist to carry out business activities effectively and efficiently. This is defined in following
manner as are-
Political factor- It is defined as components that impact the profitability and chances of survival
of firm is quite diverse. Political factor plays the significant tool that determines the stability of
the business enterprise within the market of UK. Stability in the political condition aids to

undertake business activities effectively and efficiently. Henceforth high level of taxation
demotivate the companies in terms to maximise the huge amount of the profitability. Barriers of
trade can also harm the firms by preventing the potential exports. Political situation of the
country can highly influence the operational dynamics of the industry.
Economic factor- The economical components are inclusive of inflation rate, rate of saving,
foreign exchange rate. It is one of the effective factor that also aids to identify the aggregate
demand and aggregate investment within economy. In addition to this, the interest within the
firm also aids to analyse that how much individuals are willing to borrow and make investment
within the entity. In addition to this, it can b stated that the national and international economic
status of the country can affect the growth of an enterprise. Therefore, slow down growth of
economy in United Kingdom can escalate the expansion of hotel.
Social factor- the culture of the society and way of undertaking the things also impacts the
culture of the enterprise within an environment. In order to run the business activities of Qbic,
the shared beliefs and attitude of population plays the significant role in terms to carry out the
business activities proficiently. In addition to this, quoted entity must be fully aware about the
health standards and this things can also determine the significance of the environment
protection that prevail within the industry as a whole.
Technological factor- This is component that aids to bring overall development within the
industry. Therefore, technical advancement can be taken as the fast disrupting industries across
the world. Undertaking the improvement within the technological advancement helps to improve
and transform the business activities at the world wide level (Rothaermel, 2017). In addition to
this, technical advancement leads to raise the level of profits. With the use of high technological
advancement the entity can able to ensure sustainable profits over the longer period of time. If
the chosen firm encountered with the new techniques that it can aids to gain popularity within
market. In order to be highly advanced, this enterprise has introduced the online booking system,
mechanism of feedback and facility management within the branches.
Environmental factor- There are different industries that holds the varied standard of
environment protection and this also conduct the business activities effectively and efficiently. In
addition to this, the current weather conditions of the enterprise significantly affects the ability of
enterprise to conduct the business activities in appropriate manner. Henceforth, the entities that
are producing the large waste must be required by law to manage the environmental habits.

Henceforth, the entity needs to be situated near the place that is pollution free. In addition to this,
current weather condition can affect the working of the enterprise in the huge context.
Legal factor- The rules and regulations of the government institution and framework can
impacts the working of the entity in the huge context. Therefore, the policies of the quoted
enterprise is to protect the business activities ( Cortimiglia, Ghezzi and Frank, 2016). In order to
run out the business activities efficiently, the discriminated laws are placed by the legal
authorities and this also protects the employees and treat everyone's fairly in the froth of age,
gender, disability, religion and sexual orientation. Hence, business managers of the quoted entity
needs to place the laws that can assist towards to certain level of quality and reasonable price for
the certain products and services.
SWOT ANALYSIS
This is defined as tool that aids to provides the external and internal working of the
enterprise (Neugebauer, Figge and Hahn 2016). Therefore, qbic hotel offer the customer an
enhanced consumer experience at their premise. This also provides the high quality services to
their customers in manners as facilities of spa, gym, sauna and many more others. Being the
small medium entity this s taking various initiatives to attract the customers. Henceforth, SWOT
analysis has been defined in the following manner as are-
Strength-
It assist in understanding the core areas of the business that beats the competition and this also
allows to gain competitive advancement within the market ( Phillips and Moutinho, 2018).
Therefore, strength are defined as-
 Brand acknowledgement- Being the small medium-sized size hotel, this chosen entity has
effective brand recognition within the market (Akdogan, Dogan, and Cingöz, 2015). This
hotel has presence in varied parts of the UK. This aids to build the positive perception of
the brand in the minds of customers.
 Interested administration and items quality- The managerial authority of the qbic is
largely focus on to bringing up the innovative ideas. Therefore, innovation can be helpful
to attract the customers and this can also helps to retain the existing customers.
 Quality services- The one of the attractive feature of this entity is that this is provides
quality services to their customer at affordable price rate (LIU, 2017). It is one of the

advancement that aids to enhance the brand recognition as well customer base within the
market.
 Solid providers relationship- The another attractive point of the enterprise is that this firm
provides effective customer relationship and also record the preferences of each
customers. By offering the services by analysing the needs to customers aids to establish
emotional bonding with customers. It is also one of the effective way to build customer
retention.
Weakness-
It is the area that defines the services where organisation is lacking and this impacts the
brand image of the enterprise (Rothaermel, 2017). Thus, weakness are defined in the following
manner as are-
 It is small medium-sized entity, due to it lot of customer do not prefer it.
 This is entity which has limited market share in-spite of good brand recall.
 The operations of the enterprise is largely affected at the global level due to the different
policies of government and parameters.
Opportunities-
This aids to develop the understanding about the things that business can do to enhance the
current skills and resources. It is one of the attractive area that can help to expand the business
activities and also lead towards to diversify the business and enhance the customer base. This is
defined in following manner as are-
 Relationship marketing- It is the firm that put their major focus over to build the program
office to first line representative with the adequate use of leadership specialist. This can
be helpful in building better customer relationship and this also enables to organisation to
create the better understanding of the customers and also support to innovate the product
and services as per the needs to customers.
 By acquiring the local hotel groups and chain will be assistive to eradicate the local
competition and this also allows to gain the ready customer base.
 To undertake the high potential within the emerging markets.
 This allows to have digitalisation and better use of technical advancement.
 To put the more focus on the research and develop so that operational working of the
enterprise can be enhanced.

Threats-
This analysis helps to develop the understaffing about the areas which has impact on the
business undertaking currently or in future course of actions (Cortimiglia, Ghezzi and Frank,
2016). Therefore, enhancement in competition and increasing the number of players with the
same value proposition can be a threat to business and this lowers down the profitability and
customer base. Henceforth, this defined in the following manner as are-
 Competition is very high in the market and this pose the big challenge to the business in
terms of profitability and customer base growth.
 Hotels are thinking about the shaping organisation together with global brands and this
can aids to oversee and work with business effectively and efficiently.
 The increasing wage rate can led to issues with the satisfaction of the employees and
engagement of employees into the work. It has resulted in the increasing employment
churn that further add to cost of hiring and training the new staff.
3) Stakeholder analysis and evaluate expectation of different stakeholder
It is important for Qbic hotel to develop a new strategy so that it can compete in industry.
However, it requires stakeholder to get involved in development of new strategy so that effective
decisions can be taken. It also allows them to set a future direction in which they can proceed.
Furthermore, by identifying stakeholder expectations plans are developed to fulfil them. This
leads to growth of business. Moreover, impact and influence of each stakeholder is determined to
evaluate their role in business and strategic planning. For this a tool is available.
The stakeholder analysis refers to process of finding out who are the people that is
engaged with company. Also, it becomes easy to identify needs of customer as they provide
crucial information from the market (Brustbauer, 2016). beside this, stakeholder needs are
identified and then accordingly goals and objectives are set. The benefit of doing stakeholder
analysis is to develop strategy, tactics, etc. furthermore, goals are communicated. Similarly, in
Qbic hotel identifying stakeholder will help in setting goals and strategies. Their needs can be
identified. The analysis helps in finding out which stakeholder may have positive or negative
influence, who is going to be affected and how to work with different stakeholders according to
their interest. Hence, it contain of four grids that is classified as:-
High influence, low interest- Latent does not show interest but consist power to influence
efforts.

Low influence and interest- They are known as apathetic and do not show interest as well as
their influence is low.
High influence and interest- this category is known as promoters. They contain high power
which help in making business successful.
Low influence, high interest Defenders have high interest but their low influence does not
affect efforts (Bose, 2016).
The analysis is as follows :-
Stakeholder Internal or external Impact Influence
Customer External High High
Employees Internal High High
Investors Internal High Low
Government External High High
Community External High Low
Suppliers External Low low
Customer- they are crucial stakeholder in hotel. The customers are those who avail product and
services to fulfil their needs. The interest of customer is to provide high quality services,
contribute towards society, satisfy their needs, etc. customer interest is that value is generated
from product or service (Armas-Cruz and et.al, 2017). They also want that goods are produced
at low price. Their interest is to get unique services at reasonable price.
Employees – they are those stakeholders that are known as internal stakeholder. They perform
all business functions to attain goals and objectives. However, staff interest is that in Qbic hotel
there must be proper health and safety equipment’s, policies and standards followed, etc.
Another interest of employees is to earn specific income and support in decision making.
Investors – they include both shareholders and debt holders. Usually, investors invest in
business to earn huge revenue and profits. So, their interest is to expect a higher return on capital
and generate value from it. they want business to remain profitable and provide return on it.
Government- they are important shareholder in organisation. it is because they collect tax from
them and contribute towards public services. the interest of government is to ensure that laws and
regulations is followed (Pratono, 2016). In addition, government benefit from GDP in which
hotel contribute. The gov also want business to thrive and pay taxes regularly.

Community – society remains stakeholder of business for long term. the interest of community
is that business should provide employment to people and contribute towards protecting and
maintaining environment. Beside this, society also want firm to provide health, education and
economic development of people. another interest is business is with regard to safety of goods
and services produced by business.
Suppliers- they are external stakeholder in organisation. their interest is that business must buy
raw materials from them and rely on it. suppliers also want that revenue is generated from on
going business activities and operations. In this way they will be able to generate profit and
sustain in market for long term.
Every organisation adopts a new strategy which allows them to grow and expand in new
market. However, with shift in market conditions strategies has to be changed or developed.
Beside this, strategies are formed to bring changes in organisation. It is evaluated that often
stakeholders support in identifying needs of customers. They play a significant role in planning
process. This reflect their interest towards organisation (Falle and et.al, 2016). However, they
generate better outcomes and great sense of ownership. The insight of external stakeholder adds
value in planning process and understanding business environment. Whereas internal ones help
in decision making. When a new strategy is adopted customer interest will be fulfilled. They will
get unique services at low price. Thus, they will be satisfied and more customers will be
benefited from it.
Now, of Qbic hotel grows rapidly year by year it will bring in revenue. So, employees
will get their rewards and benefits. They will show interest in decision making and learn new
skills and knowledge. Likewise, investors will benefit when Qbic hotel will gain positive brand
image in industry it will lead to rise in share price. So, they will invest in hotel and get high
returns. There will also be increase in economic growth of that region and nation as well. Thus,
they will be satisfied as well. In similar way, community will also be benefited. It is because with
increase in revenue hotel will contribute more in CSR. Also, with expansion more employment
will be generated. Apart from it, by offering new services people social life will be improved.
Also, if Qbic hotel is able to sustain for long term then more contribution will be given to
society. Correspondingly, government as stakeholder will be benefit as well. The growth of hotel
and its sustainability will contribute in government income (Demir, Wennberg and McKelvie,
2017). It will result in social as well as economic development in cities where hotel operate. The

suppliers will be benefited as for new strategy hotel will require raw materials to be used. So,
suppliers will provide them and can earn profit from it.
Thus, adoption of new strategy will ensure that hotel is able to survive in market for long
term. also, the interest of stakeholders is fulfilled and more are attracted which will support in
continuous growth of Qbic hotel. Other than it, interest of stakeholder can be fulfilled easily.
However, for long term hotel can retain stakeholders and adopt new strategy with context to
change in their interest and needs. A strong relationship will be developed with them. It will
result in attaining goals and objectives and sustain in industry. beside this, stakeholder needs are
identified and then accordingly goals and objectives are set. The benefit of doing stakeholder
analysis is to develop strategy, tactics, etc. Furthermore, goals are communicated. Hence, they
will provide market data and info on basis of which objectives will be set. The needs of
customers can be easily determined and accordingly services are offered to fulfil it. The data of
rivals are obtained and then future strategies are formed to compete with them.
4) Propose a new strategy with long term future of Qbic hotel
In such a competitive business context, it is required for Qbic hotel to develop a new
strategy so that they are able to survive for long term. Also, strategy provide a direction in which
way business must go and how it will be beneficial. In addition to it, by following strategy both
short and long terms can be attained. So, the new strategy plan is defined as :-
Executive summary
This strategic plan has been developed of Qbic hotel which will enable organisation to
make sustain for long term. so, it has described about the mission of hotel. It also describes the
SWOT analysis and long term goals. Also, it has been discussed about the key performance
indicators of plan. Alongside, target customers and industry analysis is been explained in the
plan. Moreover, marketing plan has been mentioned along with the budget requirement.
Mission – to provide hotel experience that makes people smile
SWOT
Strengths
High quality services that are been provided to customers
Small but loyal customer base
Consistence rise in revenue and growth of hotel.
Weakness