Wyndham Hotels & Resorts: Macro Environment and Strategy Report

This report provides a comprehensive analysis of Wyndham Hotels & Resorts' business strategy. It begins with an introduction to business strategy and its importance, followed by an analysis of the macro-environment using PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors impacting the company. The internal environment and capabilities are assessed using SWOT and VRIO analyses, highlighting strengths, weaknesses, opportunities, and threats, as well as valuable, rare, inimitable, and organizable resources. The competitive landscape is evaluated using Porter's Five Forces model, assessing the threats of new entrants, bargaining power of suppliers and buyers, and the threat of substitutes. Finally, the report discusses the application of various strategic concepts and models to interpret and frame strategic planning for Wyndham Hotels & Resorts, culminating in a strategic management plan designed to achieve objectives within a given timeframe. The report concludes with a summary of findings and recommendations.

Hospitality Business Strategy

Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Analyse the impact and influence of macro environment on chosen organisation....................2
Analysis of internal environment & capabilities of organisation...............................................4
Evaluation of the competitive forces of Wyndham Hotels & Resorts.........................................6
Application of range of concepts and models, interpret and frame strategic planning...............7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
1

INTRODUCTION
Business strategy is a master plan that management of an organisation implements for
securing competitive and leading position at marketplace. Along with this, it is a set of actions &
decision that is consider by an organisation to achieve goals effectively and timely as well. In
context to a business, it is a long range sketch of direction, destination and desired image of a
company (Bratton and Watson, 2018). It is essential for an organisation to create an effective
strategy so that a company reaches towards growth and success as well. In the report, Wyndham
Hotels & Resorts is chosen as a base company. It is an international chain of hotel and resorts
based in the US. It was established in the tear 1981 and at present it has around 9000 hotels
worldwide. The report will cover environmental analysis that is macro environmental factors that
effect on business performance and activities. Along with this, analysis of internal environment
& capabilities is describing by using various frameworks. Furthermore, porter’s five force model
is applied for identifying level of competition of the respective company in market. At last,
different theories and concepts is cover and a strategic management plan is developing that aid in
achieving objectives within given time frame.
MAIN BODY
Analysis of impact & influence of macro environment on chosen organisation
There are various factors that has influence on efficiency & activities of an organisation. It
is determining that macro environmental factors are keep on changing and for this, it is essential
for managers to develop an effective strategy that help in declining the level of risk and threats
associated with external factors. For analysing external environment, the managers of Wyndham
Hotels & Resorts adopt PESTLE analysis that is discussed below:
PESTEL analysis
It is defined as a framework which assist in identifying factors that has direct influence on
overall performance and activities. This framework includes six factors, which is given below in
relation to Wyndham Hotels & Resorts
Political Factors- It consist of factors such as tax rates, fiscal policy, monetary policy,
political stability and so on. It is determining that political condition of US is good and its
support companies to enhance their operations in other countries so that economy is reaching
towards growth and development as well. Along with this, political factor has also negative
2

influence on business performance that is if rate of tax is getting high then it directly impacts on
the revenue level of an organisation in a negative manner.
Economical factor- One of the most essential factor involve in this is economic condition
of a country and it is analysing that economy of US is good as its people have high buying
power, which has a positive influence on the business of Wyndham Hotels & Resorts
(Konovalova, 2018). Along with this, of interest rate is charge high by government then there is
increase in the price of goods and service, which sometimes impact negatively on performance
of an organisation.
Social Factor- One of the most essential factor that is required to be consider by an entity
for gaining success and sustain at marketplace. It involves factors such as values, norms,
ideologies, opinions, beliefs of people prevailing in the country. In case of Wyndham Hotels &
Resorts, it ensures that needs of people is fulfilled while consuming its services so that it can
develop positive image in market. Along with this, it has hotels in china, Canada, Mexico and so
on and it give service by analysing culture of that particular country only. It helps organisation in
attracting people and increase in productivity and profitability level effectively.
Technological factor- It is considering as a factor which has high impact on activities as
well as performance level. Technology is changing continuously and impact on the overall
buying behaviour of customers as they prefer to use those goods and services that is new and
innovative within in the marketplace. It is primary for organisation to make use of new
technology in order to sustain in market for longer time and provide innovative service to
customers. In relation to Wyndham Hotels & resorts, it provides online service to customers that
is live checking the condition of rooms. Along with this, it gives online check-in and check-out
option to users that save time of both customer and management also. It helps in attracting large
number of people & increasing its overall profit and revenue level in an effective manner.
Environmental factor- It is essential for an organisation to offer those goods and services
that does not harm environment and develop a positive image in the mind of customers. If it is
talking about Wyndham Hotels & Resorts, it offers herbal products such as toiletries to customer
as it is determining that people are like to use environmental friendly products. It set a positive
impression on minds of customer that leads to increase of future sales in an effective manner.
Legal factor: It is essential for an administration to follow all the rules and laws developed
by government for carrying out activities and operations as well. With reference to Wyndham
3

Hotels & Resorts, its mangers develop a sourcing policy, which explain standards and principles
to staff members in a proper manner. Along with this, its higher authorities ensure security as
well as safety of employees and customer prevailing at Hotels.
Analysis of internal environment & capabilities of organisation
It is important for companies to analyse internal capabilities & environment as well. For
this, managers of Wyndham Hotels & Resorts make use of SWOT analysis tool that is defined
below:
SWOT Analysis
It is defined as a way, which help a business entity to know about strength and
weaknesses. In addition to this, it also aids in identifying opportunities and threats that further
help in making improvements (Li and Singal, 2019). SWOT analysis of Wyndham Hotels &
Resorts is given below:
Strengths
 The main strength of Wyndham Hotels & Resorts is its market presence that is it has
around 6000 hotels worldwide. It helps company to earn higher profit and attain leading
position in market. It has talented and skilled staff members that provide on time and quality service to
customers. It assists an organisation to maintain good relationship with customers and
retain them for longer time period.
Weaknesses
 One of the weakness is its competitor that impact on the overall sales and profitability
level of an organisation. Wyndham is still not able to reach on all the developing countries and is consider as
weakness of company.
Opportunities
 The management team of organisation has the opportunity to make use of social media as
a promotional tool in order to reach large number of people that has positive impact on
sales and profitability of Wyndham Hotels & Resorts. Another opportunity is, it can enter into new market and enhance its market position in an
effective manner.
Threats
4

 In the present time, the economy is facing major issues because of COVID 19. It impacts
on the overall hospitality organisation as people now did not prefer to go on vacations
and stay in hotels as well. It has negative influence on overall sales and profitability of
organisation.
 There are lot competitors prevailing in this industry and compete in market by offering
unique service in market. Along with this, it declines the overall productivity and revenue
level of Wyndham Hotels & Resorts.
VRIO Analysis
It is defined as a tool which help in gaining knowledge about internal capabilities along
with their benefits in long-term. It mainly involves four factors, which is value, rarity
inimitability and organisation. The four factors are given below in context to company:
Resources Valuable Rare Inimitable Organisable
Brand image Yes No No No Competitive
disadvantage
Technical
capability
Yes No No No Unused parity
Financial
resources
Yes Yes Yes No Competitive
sustainable
Human
resource
Yes Yes Yes Yes Temporary
parity
Valuable- One of the valuable resource of Wyndham Hotels & Resorts is its brand image
as it offers quality service to its customers and ensure that requirements of their clients or guest
is fulfilled. Along with this, it is determining that financial strength of Wyndham Hotels &
Resorts is good due to which organisation is able to execute activities in an appropriate manner.
The another valuable resources and the reason of its success is effective and skilled staff
members. They maintain good relation with customers and put their efforts in order to meet
targets and attain objectives effectively.
Rare- The financial capability of organisation is strong, which is rare, as every company
does not have high financial resources. In addition to this, it provides training session to staff
5

members in order to improve skills and competencies of employees that is undertaken as rare
factor. In addition to this, it has highly talented workforce who has the capability to serve best to
clients and is consider as rare factor.
Inimitable- It is determining that Wyndham Hotels & Resorts financial strength is good
& is hard to imitate. In addition to this, it helps company to ensure availability of resources for
implementation of activities. The another imitable factor is skilled and talented workforce.
Organisable- It provide training and development session to staff members in an organised
manner. In addition to this, it organises all its activities before reaching of clients at Hotel in
order to avoid delays and interruptions. It helps in developing positive image and enhance its
future sales in an effective manner.
Evaluation of the competitive forces of Wyndham Hotels & Resorts
For evaluating the level of competition, the managers of Wyndham Hotels & Resorts adopt
porter’s five force model that is defined below:
Porter’s five forces analysis
This model was proposed by Michael porter in year 1979 and it include five competitive
forces which has direct influence on business performance and activities as well. It is analysed
that this model helps in determining competition level within the market. The five competitive
forces are given below in context to Wyndham Hotels & Resorts:
Threats of new entrants- It is determining that this threat is low for Wyndham Hotels &
Resorts as in order to start such business, it require high investment and time as well. In addition
to this, development of brand image of new Hotel & Resort is not easy as it sometimes leads to
failure of business in market.
Bargaining power of suppliers- In the hospitality industry, the suppliers bargaining power
is low as they did not play a major role. I relation to Wyndham Hotels & Resorts, its important
element is its talented and effective employees that provide quality as well as on time service to
customers. It is crucial for company to create an effective strategy in order to sustain in market
for longer time.
Bargaining power of buyers- It is analysed that bargaining power of buyers is high for
organisation as there are lot of competitors that can provide same service at lower price in order
to gain attention of people. In addition to this, buyers have a lot option in market as they can
switch to another brand easily so it is essential for Wyndham Hotels & Resorts to maintain a
6

good relation with customer and focus on retaining them for longer time period as it help in
gaining success and growth at marketplace.
Threats of substitutes- It is analysed that higher authorities of Wyndham Hotels & Resorts
make use of competitive pricing strategy in order to fight with their rivals and to attain
competitive advantage at marketplace (D’Annunzio-Green, 2018). The threat of substitute is
determining as medium, it is important for organisation to adopt effective marketing strategy in
order to fight with competitors and gain higher success.
Rivalry among existing competitors- There are lot of competitors present in the hospitality
industry and mainly in hotel sector. It is significant for Wyndham Hotels & Resorts to focus on
fulfilling requirements of customer so that they can remain loyal and did not switch to another
brand easily.
Porter's generic strategy
Cost leadership: In this strategy, an organisation set outs to be the low cost service
provider without compromising the quality. This help company to attain as well as sustain cost
leadership that impact positively on the overall productivity and profitability of company.
Differentiation: Herein, the company focuses on to be unique and different in the
industry where it functions. In addition to this, they add some attributes and features in product
as well as service that is different for customers. It help company to attract large number of
people towards brand which in turn assist in raising customer base level and market performance
of business entity.
Focus: It consist of cost focus and differentiation focus, In cost focus an organisation
seeks a cost advantage within its target segment and on differentiation focus, company seeks
differentiation within its target segments.
From the above study, it is analysed that Wyndham Hotels & Resorts uses differentiation
strategy as the make use of innovative technology in order to provide unique service to
customers. It assist company to attract large number of people and attain competitive advantage
within the hotel industry.
Application of range of concepts as well as models, interpret & frame strategic planning
There are various models and concepts of organizational behaviour that is used by
companies for developing strategic plan in an appropriate manner. It is analysed that adopting
various frameworks and applied them appropriately help an organisation to achieve growth and
7

development. The managers of Wyndham Hotels & Resorts make use of Ansoff matrix in order
to implement activities in right direction and to achieve growth as well.
Ansoff Matrix
It is also known as growth matrix, which mainly involve four strategies of growth that
help in attaining success at marketplace. The strategies are described below in context to
Wyndham Hotels & resorts:
Market penetration- The main objective of an entity to using this strategy is to enhance sales and
ear higher profits. In this strategy, companies approach the same market by the existing product
and increase its customer base by providing some offers, discounts as well. Adoption of this
strategy by managers of Wyndham Hotels & Resorts aid in attracting people towards brand and
enhance its sales level.
Product development- At this strategy, the companies produce new and unique products as
well as services and approach the existing market only. In relation Wyndham Hotels & Resorts,
it is important to analyse market trends and preferences of people prevailing at marketplace in
order to adopt this strategy.
Market development- Herein, companies approach the new market by its existing product in
order to increase customer segment and to strengthen its market position. With reference to
Wyndham Hotels & Resorts, it can expand its operation in other countries such as Africa, Asia
and so on. Herein, it is essential for managers to gain knowledge about new market and then
offer product as well as services in an effective manner.
Diversification- It is considering as one of the risk growth strategy wherein companies enter
into new market by new products and services (Chhetri, Chhetri and Corcoran, 2017). It is
important to analyse culture and trend of new market and offer innovative services in order to
attract new customers and increase acceptance level as well. Acquisition of this strategy help
company to increase its market presence and earn higher profits as well.
By analysing the above strategies, it is identified that Market development strategy is
beneficial as well as suitable for Wyndham Hotels & Resorts. It helps company to enhance its
sales level and increase its market presence in an appropriate manner.
Strategic management plan
8

It is a document that mainly involves strategies, tactics, objectives, target market that is
needed to communicate to all the employees in order to attain desired goals and objectives within
stipulated time period. The strategic plan is given below in relation to chosen company:
Strategies
In order to increase its market position and to raise profitability, the managers of
Wyndham Hotels & Resorts can make use of market development strategy of growth. For this,
some of the factors that is required to be undertaken is given below:
STP- It is defined as a tool, which help an organisation to choose the right segment and
target market in a proper manner so that company is getting success in market. It mainly involves
three elements, which are as follows:
Segmentation- It is basically dividing the whole market by considering psychographic,
demographic, geographic and many other factors. If it is talking about Wyndham Hotels &
Resorts, it can segment its market as per demographics that is people who like to spent vacations
on hotels and resorts.
Targeting- It is important for an entity to target the right market, the higher authorities of
Wyndham Hotels & resorts can target people belong from the age group of 20-40 as it is
determining that most of this people were like to go for vacations and prefer resorts and hotels to
stay.
Positioning- It is define as building positive image in market towards the brand and for
this Wyndham Hotels & resorts make use of promotional tools such as social media applications,
advertising and so on.
Objective- The SMART objective of Wyndham Hotels & Resorts is given below:
 To raise sales by 10% in coming 9 months by offering quality and innovative service to
customers.
 To increase profitability by 10% in coming 12 months by expanding operations in new
market.
Tactics- The management team of Wyndham Hotels & Resorts can adopt cash management
tactics that aid in developing an appropriate budget for execution of activities in a proper
manner.
Implementation and Evaluation: It is significant for an organization to ensure that all
activities is implemented in an effective manner as it leads to growth and success of company in
9

market (Ahmad, Bakar and Ahmad, 2018). In addition to this, it is important to evaluate
activities that is being implement by staff members with the expected performance in order to
achieve objectives and to enhance productivity in an effective manner.
CONCLUSION
From the above study, it has been concluded that business strategy is a master plan which
assist companies to attain objectives within given time frame. In addition to this, it is significant
for an organisation to determine the external and internal factors that has effect on business
performance & activities. For this, PESTLE and SWOT analysis is applied by companies.
Porter’s five forces is applied by higher authorities for gaining insight about competition level
prevailing in market. Ansoff matrix is consider as a growth matrix and it is crucial for business
entity to adopt an appropriate strategy for gaining success and growth .
10