Team 3 Hotel: Business Environment and Strategic Capability Analysis

This report provides a comprehensive analysis of Team 3 Hotel, focusing on its internal and external environments. It begins with an introduction to the hotel group and its services, followed by an industry analysis using PESTLE factors to assess the political, economic, social, technological, legal, and environmental influences. The report then employs Porter's Five Forces model to evaluate the competitive landscape, including bargaining power of suppliers and customers, the threat of new entrants and substitutes, and the rivalry among existing firms. Furthermore, the report conducts a strategic capability analysis, examining the hotel's financial, human resource, physical, organizational, and knowledge/learning resources. The analysis aims to identify opportunities for competitive advantage and strategic direction, including a discussion of the hotel's strengths and weaknesses to formulate strategic recommendations. The report concludes with strategic statements to guide the hotel's future business strategy.

1.0 INTRODUCTION
1.1 BACKGROUND
Team 3 is a leading hotel group in Australia that shows their existence in the second half
of the last century. The Team 3 is a part of hotel, motels and resort industry in which there are
around 350 employees are working in all over the Australia where hotel have its existence
(Adriaanse, van der Rest & Parsa, (2020)). This hotel offers variety of services to their customers
due to which visitors experience a remarkable service at hotel. There are several services that
they offer to customer is standard room facilities, front desk, Leisure club, internet access etc. on
a level 1 that means it a type of one star hotel in Australia.
1.2 AIM
The main aim of conducting this study is to be representing the internal and external
environment analysis. To gain knowledge regarding external environment this report includes
industry analysis using pestle analysis that helps in gaining sustainable results in marketplace.
Further it demonstrates competitive analysis using porter’s five forces model so that hotel highly
gain competitive advantage within marketplace. to elucidates internal analysis strategic
capabilities and TOWS analysis are to be framed that attracts number of opportunities and assist
in developing competitiveness so that hotel will survive more time period. Further it involves
strategic statement that helps in providing strategic direction, stakeholder value creation and
intended business strategy.
1.3 SCOPE
The scope of Team 3 hotel is to become a market leader by gaining competitive
advantage with their quality services and price. Therefore, it is to be done by examine internal
and external environment along with strategic statement that influence Team 3 growth in
business industry (Konovalova & et. al., (2020)).

2.0 INTERNAL AND EXTERNAL ENVIRONMENTAL ANALYSIS
2.1 INDUSTRY ANAYSIS
Pestle is used to analyze external situation that affects organisation productivity and
profitability and helps in suggesting best strategy to gain profitable outcome. In case of Team 3
pestle analysis is shown below:
PESTLE DEVELOPMENT IMPLICATION
Political factor SO
Team 3 use the advanced
technology in managing
supply chain due to which
they attain the target of high
brand reputation in
marketplace (Tlesova & et.
al., (2020)).
 High brand reputation
enables the entity to
maintain its popularity
in market.
 Effective supply
chains enable Team 3
to work without any
political restrictions
(Frawley, Goh &
Law, (2019)).
 Higher popularity in
the market and
effective supply chain
and enable the
company to attain
In context of Team 3 hotel it
is to be said that they operate
their business without facing
any political restriction that
attracts high profits and
revenues in hotel long term
survival (Chen, (2019)).

better productivity
resulting in higher
profits and revenue
generation.
Economical factor As Australia is a country that
is known as wealthy and
developed country because of
strong economic growth. This
nation has low obstacles
within market that creates
openness environment for
business. This market of
Australia offers attractive,
safe and competitive market.
This is effective for hotel
industry to gain competitive
results in business industry.
 Offering new growth
opportunities to Team
3 as a hospitality
organization.
 The opportunity for
expansion is available
for Team 3 by
increasing economic
growth of Australia
(Xu, Stienmetz &
Ashton, (2020)).
 Better economic cycle
also enable Team 3
attract National and
In case of Team 3 hotel
group, effective economic
growth in Australia simplifies
the cross-border trade that is
highly beneficial for Team 3
to set their business outlet
within marketplace and
attracts number of customers.
Hence, from this it is implied
that economic environment of
Australia is positively
suitable for concerned hotel
group (Gonzalez, Gasco &
Llopis, (2019)).

international visitors
towards their
accommodation
offerings.
Social factor In Australia customers have
good taste, preferences and
focus on enjoy their life with
the fondness of western
culture. There people prefer
great food and beverage
items, having luxury services
in hotels at best price etc.
 This development of
Australia in social
factor is creating an
opportunity for Team
3 Hotel to attract
number of customers
from their services.
 Enabling the
hospitality business
and opportunity to
conduct focused
online marketing for
attracting domestic as
well as International
customers towards
enjoying the Offerings
and services of Team
3 (Prebensen, Chen &
Uysal, (2018)).
By examine the social factor
of Australia, Team 3 focus on
online marketing strategy to
attracts number of customers
towards their hotel services
(Patiar & Wang, (2020)). As
it is very effective to retain
the customers and attract
potential one so that high
profits are received (Saparin
& et. al., (2020)).

 Assist Team 3 in
customer retention
and high profit
making.
Technological factor Australia is a technology
advanced country on global
level. This create a challenge
for hotel sector to stay
updated their technology for
attracting customers and
maintaining high growth.
 Incurring increased
cost off technologies
and Resulting in
higher operative
expenses Team 3
(Fraser, (2020)).
 A positive impact will
be imposed by better
technologies as it will
enable the brand to
attract millions of
customers and retain
them along with
keeping focus upon
Australian consumers.
 Enabling the
opportunity to attain
competitive advantage
in the industry over
competitors.
Due to best technology
advancement country in
universe Team 3 face the
issue of updating technology
by investing high cost in it so
that large base of customers
are attracted towards it.
Therefore, this also creates
demand of using online
strategy to attract or retain
Australian customers in hotel
(Ashton, (2018)).

Legal factor Country like Australia
charges the corporate tax 30%
on the total profit of company
that is higher than other
country comparison. It creates
challenge for hotel sector as
they spend tax amount in
their total profits and for thief
they earn high profits.
 Losing huge profit
percentage due to tax
payment (Gardini,
Ottenbacher &
Schuckert, (2020)).
 Dissatisfaction of
investor’s of Team 3
as they receive lower
share of returns.
 Lowering net income
of owners and
partners of Team 3.
By understanding this
situation Team 3 need to offer
quality services to customers
so that they are attracted
towards it and they will
generate more profits so that
they pay tax amount
prominently (Scott, Gao &
Ma, (2017)).
Environmental factor As Australia is a country that
is highly polluted and affects
people health. This highly
affects business operation of
hotel sector.
 Gaining a chance to
innovate and change
the hotel Team 3 into
an eco friendly
accommodation
To gain profitable results
Team 3 need to focus on
follow environmental laws by
offering environmental
friendly services to customers
so that they gain competitive
advantage within marketplace
(Arbelo, Pérez-Gómez, &
Arbelo-Pérez, (2017)).

service provider
(Horner, (2017)).
 Increasing the
Goodwill of the Team
3 hotel in the market
and gaining
competitive advantage
through it.
 Better customer
attraction and
retention.
2.2 COMPETITIVE ANALYSIS
PORTER’S FIVE FORCES
MODEL
LEVEL COMMENTS
Bargaining power of
suppliers
The level of bargaining power
is less in terms of hotel
industry (Bawono, (2020)).
 Team 3 will be having
better negotiation
power over its
suppliers (Vives, Jacob
& Payeras, (2018)).
 Team 3 holds
independence in the
market which provides
it a competitive edge.
It is so because of large
number of hotels, due to this
suppliers don’t want to lose
their customers. In case of
Team 3, they assimilate with
their suppliers on contract
basis so that advantageous
results are attained (Kalıpçı &
Yay, (2018)).
Bargaining power of
customers
This affects the hotel industry
to high level.
 Team 3 being part of
service industry please
Due to number of hotels
present in marketplace
customers has variety of
options to switch from one to

to focus upon the
quality of their
offerings as well as for
keeping best prices for
the customers in order
to retain them and stop
them from switching
(Madera & et. al.
(2017)).
 High bargaining power
of customers affected
the hotel in positive
manner as well as
Team 3 works in
innovative and creative
manner to retain
buyers and regular
guests for longer term.
another by examine several
factors as per own
convenience. This affects
Team 3 to provide quality
services at best price so that
they do not switch to another
brand (Setiawan, Rahmawati
& Widagdo, (2019)).
Threat of new entrant The threat of new entry in
hotel industry is low.
 Team 3 holds the
power in market and
only need to deal with
existing rivals (Turner
& et. al. (2017)).
 The market will be less
saturated which is
profitable for Team 3.
In hotel industry if any new
entry want to enter into hotel
market then they need huge
capital and it is quite difficult
for new entry to enter with
effective financial backup. In
case of Team 3 it is beneficial
for gaining profitable results
and long term sustainability
(Oskam, Dekker & Wiegerink,
(2017)).
Threat of substitute There is no major threat face
by hotel industry in terms of
Therefore, hotel industry is
not threatened by any

substitute. Hence it is low in
nature.
 The lower of
substitutes offers the
brand Team 3 power in
market and upper hand
(Huang Yin, Goh &
Law, (2019)).
 Also it encourages the
management to
innovate to keep the
guests retained and
offer them better
experiences.
substitute products except at
the time of recession when
domestic travel replaces
overseas and international
travel. In this Team3 need to
focus on fulfilling customer
needs and attracts more tourist
while offering quality services
at best price (Garrido-Moreno,
García-Morales & Martín-
Rojas, (2021)).
Rivalry of firm This framework is high in
case of hotel industry.
 Increasing aggressive
competition leading to
reducing power in
market (Goh, Muskat
& Tan, (2017)).
 Increasing competition
also leads Team 3 to
increasing challenges
towards it.
As there are number of
competitors present in
marketplace at Australia due
to which small hotel in hotel
industry face major challenge
in terms of rivalry. In case of
Team 3 they have number of
competitors such as Supreme,
Tulip Inn, Hot Pot, St. Kilda
hotel etc (Ho, (2017)).
Key points

In this several are the key points that are useful to draw strategic plan to execute and ways of run
hotel in smooth manner. By examine above porter’s five forces and PESTLE analysis it is
demonstrate that to enhance profits in hotel industry it is necessary for Team 3:
 To build contacts and communication network with number of outlets to develops the
demand in market for hotel services (Channoi, Clemes & Dean, (2018)).
 Further they need to focus on follow environmental laws to sustain in Australian market
 Also to earn high profits and paying taxes on time Team 3 needs to innovate and create
new offerings for attracting and serving higher customer base as well as retain them for
longer period of time.
2.3 STRATEGIC CAPABILITY ANALYSIS
Introduction
Strategic capability analysis is useful to understand strategic value analysis. For Team 3
hotel, to analyses strategic capabilities several resources and capabilities are to be demonstrated
below:
Financial In case of Team 3 financial resources is moderate as it is a type of
one star hotel in Australia. The hotel gest financial help easily
from crowdfunding and bank loan. The sales of company are
exceptionally strong that helps in gaining profitable results
(Hadinejad & et. al. (2019)).
Human resource Team 3 have an effective human resource who are work for
providing best services to customers and manager need to offer
proper training to their employees so that firm will sustain more
time period (Linnik & et. al., (2020)).
Physical Team 3 is operated their business in the street of Australia not in
other countries where they focus on attaining high revenues
(Chandra & et. al. (2018)).
General organisation In terms of general organisation, Team 3 has good brand image
due to this more customers are attracted towards their services and
hotel gain market position in Australia (Petrevska, Serafimova &

Cingoski, (2018)).
Knowledge and learning This aspect is moderately strong of Team 3 as they have good
knowledge regarding customer preference that helps in learn new
things due to these innovative activities are reflected in benefits of
customers (Le & Phi, (2021)).
2.4 TOWS ANALYSIS
It is type of modified version of SWOT analysis that helps Team 3 to recognize best
strategy for long term survival and profitability. The TOWS of team 3 are presented below:
Opportunities
Using advance technology
Threats
More competitors
Strength
 Supply chain
management
 High brand reputation
SO
 Team 3 use the
advanced technology
in managing supply
chain due to which
they attain the target
of high brand
reputation in
marketplace (Tlesova
& et. al., (2020)) .
 Also Team 3 used
technologies for
staying connected
with the customers
past, present and
future enabling the
brand a power to
retain buyers for the
ST
 Because of high
competitors within the
marketplace who
offer same services as
Team 3 at low cost
affects brand
reputation because
customer switch hotel
to another one.
 Higher competition
also affects
profitability of Team
3 as customers holds
switching power and
it becomes difficult
for the brand to retain
them (Perkins &

Longer term. Khoo-Lattimore,
(2020)).
Weaknesses
High investment in research
and development
WO
 Team 3 using
technologies creates a
weakness for the
company as it
includes high
investment for
conducting research
and development
(Tlesova & et. al.,
(2020)) .
 Higher investment in
research and
development by Team
3 also results in
grabbing the
opportunity of
innovation and
creation.
WT
 Team 3 face a
weakness of
increasing costs and
daily expenses due to
more Research and
Development
(Tlesova & et. al.,
(2020)) .
 A threat is created for
Team 3 as increasing
costs also affects the
profit margins of
investors and
sometimes leads to
the dissatisfaction of
partners and
investors.
3.0 STRATEGIC STATEMENT
3.1 STRATEGIC DIRECTION
Vision
Team 3 visions is to give customers the warmth of services by providing exceptional
personalized and professional services every time they visit by focus on eco-friendly technology.