Strategic Analysis of Wyndham Hotels & Resorts: Business Report

This report provides a comprehensive strategic analysis of Wyndham Hotels & Resorts, a leading global hotel franchisor. It begins with an introduction to business strategy and its application within the hospitality sector, specifically focusing on Wyndham. The report then delves into the macro environment, utilizing frameworks like PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors impacting the company. The internal environment is examined using VRIO analysis to evaluate resources and capabilities, and McKinsey's 7S model to assess organizational effectiveness. Furthermore, Porter's Five Forces model is applied to evaluate the competitive landscape of the hotel industry. Finally, the report interprets and devises strategic planning recommendations for Wyndham Hotels & Resorts based on the preceding analyses. The analysis covers a wide range of topics, including the company's mission, vision, objectives, and stakeholder analysis, ultimately providing a holistic view of Wyndham's strategic positioning and potential growth strategies within the dynamic hospitality market.

Hospitality Business
Strategy

Table of Content
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Applying appropriate frameworks, analyse the impacts and influence of the macro
environment on Wyndham Hotels & Resorts and its strategies.............................................3
TASK 2............................................................................................................................................7
P2. Analyse the internal environment and capabilities of Wyndham Hotels & Resorts using
appropriate frameworks..........................................................................................................7
TASK 3..........................................................................................................................................11
P3. Apply Porter’s five forces model, evaluate the competitive force of given market sector
for Wyndham Hotels & Resorts...........................................................................................11
TASK 4..........................................................................................................................................15
P4. Apply range of theories, concepts and models, interpret and device strategic planning for
Wyndham Hotels & Resorts.................................................................................................15
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Business strategy is determined as avital approach for any organisation seeking to grow
and expand its business in a strategic manner. In context of hospitality business strategy remains
the same but the actions and activities conducted by the organisations related with the expansion
of their hospitality service providing operations and offerings (Pappas and Brown, 2020). For the
present report a chosen organisation is Wyndham Hotels & Resorts Hotel company based in New
Jersey United States founded in 1981 and headquartered in the United States. The company is
determined as the largest hotel franchisor in the world with having its presence in around 9,280
locations of the world. The present report of business strategy will be determined in several
aspects beginning with identifying the Macro environment of the resorts and studying the
internal capabilities. Moving along competitive environment is also examined of Wyndham
Hotels & Resorts and appropriate growth and expansion strategy is developed at the end.
TASK 1
P1. Applying appropriate frameworks, analyse the impacts and influence of the macro
environment on Wyndham Hotels & Resorts and its strategies.
DEFINITION AND MEANING OF STRATEGY AND ROLE OF STRATEGY TO
ACHIEVE BUSINESS OBJECTIVES AND GOALS
Definition and meaning of strategy:
Strategy is defined as a plan of action that is developed by the management of an
organisation for achieving a long-term agenda to attain the overall objectives of the company.
Strategy is also determined as a art of planning and directing the overall operations of a entity
towards a respective movement as per the given situation. Strategy development plays a very
important role in a competitive and rapidly growing environment for businesses to take well
planned and systematic steps towards their success and attainment of different goals(Baynova,
2020).
INTRODUCTION TO COMPANY

Figure 1: Wyndham Hotels & Resorts, 2020
Missions of Wyndham Hotels & Resorts:
The mission of Wyndham Hotels & Resorts is to be available for their customers
everywhere. The company states that “We make hotel travel possible for everyone, whenever
people go we will be available to welcome them.
Visions of Wyndham Hotels & Resorts:
The vision statement of Wyndham Hotels & Resorts States about their unmatchable
portfolio of iconic Hotel brands delivering the best experiences to everyday travellers wherever
they go in any part of the world.
Objectives of Wyndham Hotels & Resorts:
 To be accessible to everyone and everywhere in the world.
 To become capture the attention of all segments of customers with different expectations
and budgets.
 To everyone under one brand name of Wyndham Hotels & Resorts.
ANALYTICAL FRAMEWORKS OF THE MACRO ENVIRONMENT
Stakeholders Analysis:
Stakeholders of an organisation are considered as key aspirants holding enough power
and interest in the business. Wyndham Hotels & Resorts is a huge brand with various

stakeholders affecting the decisions of the company. The stakeholder analysis is conducted with
the help of power interest grid which is as follows:
Figure 2: Stakeholder Analysis, 2021
● High power, High interest- These are those holding high interest in decision making of
the company with huge power over influencing them. The customers of Wyndham Hotels
& Resorts exist in this quadrant of the grid as they have enough power to influence the
decisions of company and also interest in those decisions (Ņikadimovs and Ivanchenko,
2020).
● High power, Low interest- The stakeholders of Wyndham Hotels & Resorts stating in
this quadrant are the government to whom the company do not need to keep informed but
plays a very important role in decision making and strategic movements of the entity.
● Low power, High interest- Employees of Wyndham Hotels & Resorts are placed in this
quadrant who have very less power over the strategic decision making of the brand but
holds very high interest.

● Low power, Low interest- The external parties like different suppliers of raw material
required in the hotel lies in the quadrant having very low power and interest in strategic
decisions of the company and need not to be informed every time.
PESTLE Analysis:
Figure 3: PESTLE - Macro Environmental Analysis, 2020
● Political- The current BREXIT took place in the United Kingdom is a huge political
barrier for Wyndham Hotels & Resorts to run their operations in Britain as efficiently and
effectively because of regular fluctuations taking place in the laws and policies.
● Economical- The current COVID-19 pandemic have resulted to be a huge economical
setback for every industry in the world and specifically for the hospitality sector as
people are not seeking to travel from their homes to other places in concern with their
safety and security.
● Social- The social aspects are also imposing unfavourable impacts over hospitality sector
as now a days people are not moving from their homes and travelling from one place to

another can bring a huge risk for them over their lives. Therefore social factors are also
not in favour of the hotel industry which includes Wyndham Hotels & Resorts (Lin and
Ottenbacher, 2020).
● Technological- The technological aspect and development over the past decade have
brought a huge positive impact over the hospitality industry. Wyndham Hotels & Resorts
made use of different technological resources to stay in touch with their customers in
current pandemic in order to to provide a personalized approach to them and to make
them feel safe.
● Legal- The regular changes and modification taking place in different legal policies such
as taxes and new legal guidelines being introduced every now and then due to the
pandemic have caused a huge Chaos and effect several decisions of hotels and hospitality
sector.
● Environmental- This factor has a positive impact over the brand as it enables them to to
gain higher Goodwill in the market by using appropriate CSR and environmental friendly
activities which attract more and more customers with value and loyalty.
TASK 2
P2. Analyse the internal environment and capabilities of Wyndham Hotels & Resorts using
appropriate frameworks.
ORGANISATIONAL INTERNAL ENVIRONMENT
VRIO Analysis:
This is an analytical and brilliant technique for Wyndham Hotels & Resorts in order to
evaluate company’s resources and identify the competitive advantage.

Figure 4: VRIO: From Firm Resources to Competitive Advantage, 2021
VRIO is an acronym stands for valuable, rare, inimitable and organised. The VRIO
analysis of Wyndham Hotels & Resorts is as follows:
RESOURCES VALUABLE RARE INIMITABLE ORGANISED
Customer base Customer base * * *
Innovative
packages
Innovative
packages
Innovative
packages
* *
Infrastructure Infrastructure Infrastructure *
Human resource Human resource Human resource Human resource Human resource
● Valuable- These are those resources which bring a unique value towards the entity.
o Customer Base- The consumers of Wyndham Hotels & Resorts loyal to the brand
providing them regular revenues by using the services provided to them.
o Innovative packages- These packages enables a brand to keep their popularity in
market maintained and also help in retaining the customer base.

o Infrastructure- The Wyndham Hotels & Resorts believes in offering a unique and
valuable experience to its customers and infrastructure of their hotels plays a very
important role in it.
o Human resource- The employees of a hospitality organisation is referred as a life
blood of the company and they are a valuable resource for Wyndham Hotels &
Resorts as well (Park and Wiegerink, 2020).
● Rare- The sources which are limited and share are determined here.
o Innovative packages- Wyndham Hotels & Resorts make sure to provide a
personalized experience to its customers by providing them personalised
innovative packages.
o Infrastructure- Through infrastructure the Wyndham Hotels & Resorts makes
their presence unique in the market for all becoming a huge competitor.
o Human resource- The people associated with Wyndham Hotels & Resorts brand
are highly rare as every individual is different providing unique value to their
organisations.
● Inimitable-
o Infrastructure- Wyndham Hotels & Resorts always brings uniqueness in their
infrastructure which makes it very difficult for competitors to imitate.
o Human resource- People of an organisation have certain skills which are
inimitable for other businesses making them unique with a unique value.
● Organised-
o Human Resource- The manpower of Wyndham Hotels & Resorts is organised and
works according to the plans and propaganda of the business.
McKinsey’s 7S Model:
This is a framework useful for businesses to identify and examine the likely effect of
future changes taking place within their operation and also to align different departments and
processes of the business.

Figure 5: McKinsey 7S Framework, 2018
● Hard Elements- These are those elements which can be easily identified and influenced
by the management of Wyndham Hotels & Resorts while developing a new business
strategy.
o Strategy- The Wyndham Hotels & Resorts needs to be highly available and
accessible by different customer segments in the world all different types of
services required by them. The fool the company adopts a strategy of huge
diversification in order to be accessible to all different types of customers and
gaining loyal customer base enabling them to be e competitive enough in the
market.

o Structure- The structure which is followed by Wyndham Hotels & Resorts is
divisional which device is the company over its geographical presence in the
world (TADESSE, 2020).
o Systems- The system followed by the people of Wyndham Hotels & Resorts for
completing day-to-day operation is systematic which is regulated by the managers
and leaders.
● Soft Elements-
o Shared value- The shared values of Wyndham Hotels & Resorts are
accountability, inclusiveness, caring, fun and integrity.
o Skills- The people and work force of Wyndham Hotels & Resorts showcases the
skillset of the brand.
o Styles- The leadership style adopted by the leaders of Wyndham Hotels & Resorts
developing dynamic workforce and leading the market with innovative and
creative ideas.
o Staff- Their was staff of 9000 people in Wyndham Hotels & Resorts in the year
2020.
TASK 3
P3. Apply Porter’s five forces model, evaluate the competitive force of given market sector for
Wyndham Hotels & Resorts.
ANALYTICAL TOOLS AND MODELS OF ANALYSIS
Porter’s Five Forces Model:
This is a framework and a model used by businesses in order to identify the competitive
environment in which they are conducting their operations and surviving with a competitive
edge. Basically the porter’s five forces model will enable Wyndham Hotels & Resorts to identify
their competitive power in order to develop an appropriate business strategy.

Figure 6: Porter’s five forces, 2019
● Existing rivals- This element refers to the existing competitors in the market which are
competing with the firm. Hospitality industry is a rapidly growing sector where
competition is high and aggressive. Wyndham Hotels & Resorts also has high existing
competitors which reduces their power in the industry (Hussain and et. al., 2020).
● Threat of Substitutes- The threat of substitutes refers to development of new and similar
offerings in the industry as of Wyndham Hotels & Resorts. The threat has low power
over the brand due to it’s huge and wide portfolio of brands among the world.
● Threat of New entrants- The threat of new entrants is also low for Wyndham Hotels &
Resorts as the company has its presence in the world with a popularity of the largest
franchisor. Any new business entering the hospitality industry will be needing several
years of experience to compete and become a thread for Wyndham Hotels & Resorts.