Macro & Micro Environment of HOTS Hotel-Free-Samples for Students

Question: Analyze the Macro and Micro Environment of HOTS Hotel. Answer: Introduction Strategic management can be defined as the process of formulating and implementing of the chief initiatives and goals of an organizations top management. This process involves consideration of resources along with detailed analysis of external and internal environments, in which the particular organization competes (Hitt, Ireland Hoskisson, 2012). In this report, detailed analysis of the micro and macro environments of the HOTS hotel have been performed along with the developing strategic direction for the organization (Avilova, Ermakov Gozalova, 2014). While for analyzing the Macro environment of the company, PESTLE analysis is performed, SWOT and Porters five forces model have been used to understand and analyze the micro environment of the mentioned organization. Discussion Environmental analysis Environmental Analysis helps an organization to understand both internal and external condition that has direct impact on the prosperity of the organization. Once the management of the organization becomes aware of the external and internal factors that are affecting the growth of the business, the managers can successfully design long term business plan to cope up with the weaknesses and availing the opportunities of the company (Grant, 2016). Analysis of HOTS Hotel Micro environment Micro environmental analysis includes analysis of the external factors that has direct impact on the sales of a specific organization (Eden Ackermann, 2013). These factors are beyond the organizations control. In order to analyze the Micro environment of HOTS hotel, Porters five forces model have been used. Porters five forces Model of HOTS Hotel Bargaining power of the Buyers Strength: Moderate Considering the fact that the number of hotels with modern facilities and well constructed structure are present in Brisbane, tourists have a great number of options to choose from. However, since HOTS Hotel is situated at the town centres and has a minimum distance from the shopping centers, these two factors add competitive advantage for the mentioned hotel in Australia since tourists prefer hotels that are nearer to the shopping centers. Bargaining power of the suppliers Strength: High As mentioned earlier, a good number of hotels are present in Brisbane (Vecchiato, 2012). As a result, the suppliers of goods and services of the HOTS hotel have a number of options to provide their services. This means, if sufficient wages and value for the products supplied or services given is not provided by the mentioned hotel, suppliers have the option to shift. Threat of new entrance Strength: Low Due to the high barriers of entering the hotel industry in Australia along with the complex entry laws and legislation implemented by the government, the threat of new entrance for the HOTS hotel is low. Apart from that, the amount of money needed to establish a successful business in the hotel industry is another reason behind the less amount of entry in this industry (Hill, Jones Schilling, 2014). Threat from substitute Strength: Moderate Considering the fact those services provided by the hotel industries in Brisbane are highly similar, every hotel management including the management of HOTS hotel is trying to introduce innovative leisure services to attract consumers. Threat from existing competitors Strength: High Considering the fact that there exist a good number of hotels in Brisbane, high competition exists between them (Wheelen et al., 2017). Since tourists seek for the best experience for the best price, the tendency of the hotels in Brisbane is to reduce the price to gain competitive advantages. Analysis of HOTS Hotel Macro environment A macro environmental analysis includes analysis of the whole economy of a country rather than analyzing a particular sector. In order to conduct macro environmental analysis of the HOTS Hotel, PESTLE analysis has been performed (Tanwar, 2013). PEST Analysis Political Economic Social Technological Being a developed country, the government of Australia and hence, Brisbane is stable. This imposes a positive impact on the hospitality industry (Tansey, Spillane Meng, 2014). Since the economy of the town has developed due to the relocation of several business firms, the economic condition of Brisbane is favorable for establishment of hotel industry. Since the local people have commendable willingness and availability to work, the social condition of the town is also favorable for hospitality industry (Dunning, 2014). Since Brisbane is a developed town, the town is highly advanced in technology. Thus the hospitality industries in Brisbane can avail both offline and online facilities to enhance their quality of services to the consumers. SWOT Analysis Strengths Weaknesses Opportunities Threats Highly attractive location Number of facilities provided to the consumers are commendable Specious and highly comfortable rooms. Deterioration of revitalization plan Lack of training provided to the staffs HOTS hotel has the opportunity to gain more market shares by understanding the needs of the consumers. The quality of the service given can be enhanced by incorporating new cuisines to the menu list. High turnover rates of the employees. Presence of high amount of competitors. Strategic Direction for HOTS Hotel From the above analysis the management of HOTS Hotel has derived several strategies to cope up with the competitive market. While the vision of the Company is to provide the consumers with a larger than life experience, the mission of HOTS hotel is to motivate and employees and other stakeholders by proving proper facilities and training. In order to achieve the goals and objectives of the hotel, Porters generic strategies have been implemented by the management. The mentioned strategy is comprised of cost leadership strategy, product differentiation strategy and focus strategy (Dudin et al., 2014). While the cost leadership strategy includes reduction of the costs while keeping the quality of the service high, the focus strategy includes providing the staffs with efficient training and focusing more on revitalization (Bharwani Mathews, 2012). The product differentiation strategy involves attracting the tourists by providing unique facilities like special offer packages, free welcom e drinks and gifts on the basis of lucky draw facilities. Conclusion From the above report it can be concluded that it is very crucial to understand the external and internal environment of HOTS Hotel in order to understand its shortcoming and opportunities. In order to overcome the issues that have been detected from the environmental analysis several strategies have been developed. It can be clearly understood that HOTS hotel needs to implement the strategies effectively in order to achieve its mission. The strategies will not only help the hotels to gain competitive advantage but will also ensure its prosperity in the future Reference List: Avilova, N. L., Ermakov, A. S., Gozalova, M. R. (2014). An analysis of the international customer attraction experience in the hospitality industry.World Applied Sciences Journal,30(MCTT), 84-86. Retrieved from: https://www.cabdirect.org/cabdirect/abstract/20143157200 Bharwani, S., Mathews, D. (2012). Risk identification and analysis in the hospitality industry: Practitioners' perspectives from India.Worldwide Hospitality and Tourism Themes,4(5), 410-427. Retrieved from: https://sci-hub.tw/https://www.emeraldinsight.com/doi/abs/10.1108/17554211211277851 Dudin, M., Lyasnikov, N., Veselovsky, M., Sekerin, V., Aleksakhina, V. (2014). The problem of forecasting and modelling of the innovative development of social-economic systems and structures, 304-508. Retrieved from: https://profil.ranepa.ru/docs/pubs/p915/54fed23575043.pdf Dunning, J. H. (2014).The Globalization of Business (Routledge Revivals): The Challenge of the 1990s. Routledge, 402-490. 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W., Jones, G. R., Schilling, M. A. (2014).Strategic management: theory: an integrated approach. Cengage Learning, 654-666. Retrieved from: https://books.google.co.in/books?hl=enlr=id=Qy8aCgAAQBAJoi=fndpg=PP1dq=Hill,+C.+W.,+Jones,+G.+R.,+%26+Schilling,+M.+A.+(2014).+Strategic+management:+theory:+an+integrated+approach.+Cengage+Learning,+654-666ots=o9kLVlPQvtsig=Ca9YFbCAtGELvSEW4Em-CalS2gA#v=onepageqf=false Hitt, M. A., Ireland, R. D., Hoskisson, R. E. (2012).Strategic management cases: competitiveness and globalization. Cengage Learning, 123-234 Retrieved from: https://books.google.co.in/books?hl=enlr=id=qaIKAAAAQBAJoi=fndpg=PR2dq=Hitt,+M.+A.,+Ireland,+R.+D.,+%26+Hoskisson,+R.+E.+(2012).+Strategic+management+cases:+competitiveness+and+globalization.+Cengage+Learning,+123-234ots=Emokvn6GBssig=P14A_Y5nE8nNuapO_8cTYvxiLys#v=onepageqf=false Tansey, P., Spillane, J. P., Meng, X. (2014). Linking response strategies adopted by construction firms during the 2007 economic recession to Porters generic strategies.Construction management and economics,32(7-8), 705-724. Retrieved from: https://sci-hub.tw/https://www.tandfonline.com/doi/abs/10.1080/01446193.2014.933856 Tanwar, R. (2013). Porters generic competitive strategies.Journal of business and management,15(1), 11-17, doi( Nov. Dec. 2013) Vecchiato, R. (2012). Environmental uncertainty, foresight and strategic decision making: An integrated study.Technological Forecasting and Social Change,79(3), 436-447. Retrived from: https://www.hajarian.com/amaliati/1-s2.0-S0040162511001466-main.pdf Wheelen, T. L., Hunger, J. D., Hoffman, A. N., Bamford, C. E. (2017).Strategic management and business policy. Pearson, 234-256 Retrieved from: https://testbank24.com/pdf/Solutions-Manual-Strategic-Management-and-Business-Policy-Globalization-Innovation-and-Sustainability-14th-Edition-Wheelen.pd