Intercontinental Hotel Strategic Analysis

Therefore, it is imperative that organizations recognize that the actions of management in stakeholder relationships could affect the business operations of hotels. Stakeholder theory expanded on the concept of CSR. The theory identified the various stakeholder groups that were influenced by the way an organization conducted business. Freeman (as cited by Appiah, 2016) said that many CSR activities have various degrees of importance to stakeholders in any organization. The interests of the traditional group of external stakeholders cannot be satisfied without satisfying the needs of internal stakeholders according to Foster & Jonker; Hawkins (as cited by Appiah, 2016).

The book “Positioning – The Battle for Your Mind, in 1981” by Trout and Al Reis further popularized the concept of positioning (AlRiesandJackTrout, 1981).This book explains positioning as a method in which the sellers tries to understand the customer’s mind through a systematic manner. It assumes that communication can only take place in certain manner at a specific time. With such understanding of customers, then a company can win such customers by giving them what they want: products and/or services. 2. Industry Structure analysis Industrial analysis, which is also known as Porter’s Five Forces Analysis, is a useful tool for business strategists.

Identify and list each of the Five Forces. There are several tools that are apparently used to understand how the environment affects businesses whether positively or negatively. However, Carpenter, Bauer and Erdogan (2010) provided the Five Forces frequently used to analyze the competitive environment of a firm which was developed by Michael E. Porter in 1979. The Porter’s Five Forces includes Rivalry, New Entrants, Buyers, Suppliers, and Substitutes. To conceptualize these forces, it is appropriate to present them in a chart and this will be actualized in the next topic below.

External versus Internal Hiring: knowing when to develop or acquire talent can be cost-effective for the organization. To control this process, measuring the fundamental knowledge and commitment of internal hires can reduce or eliminate the cost altogether. External hires are gauge through originality and a larger pool of applicants. Goal Attainment: Goal achievement measures the acknowledgment, obligation, inconvenience, and continuous response to the goal progress. Conclusion The use of metrics in business as a computable quantify helps an organization to examine, follow and evaluate the accomplishments and dissatisfactions of the organization.

The environmental and political factors of European and UK governments influences the performance level Tesco. According to the legislations of these countries, the organisations have to recruit local peoples for different positions in the organisation. The local business operation of Tesco is affected greatly by this amendment. The increasing graph of the interest rate is a serious issue for the organisation. The increasing interest rate adversely affecting the business operation cost.

3 Pro-activity: that measures the activity with external demands. 4 Voluntarism: the firm’s decision to participate in CSR. 5 Visibility: is how the stakeholders react to the CSR activities in response. On the whole the management theory abridges the socio-economic factors with the performance of the organization. CSR is important for the multinationals to perform in foreign countries because of the growing competition and other challenges that are faced by an organization; the management theory is used as a tool to encounter such challenges ( Ismail, 2009).

The activists in this development denounce generally, multinational companies of having wild political power, budgetary markets. The financial limit gives the partnerships and the mechanical pioneers the ability to expand the pattern for their own particular advantage. Along these lines, their financial advantages will be of prime significance during the time spent globalization. Hostile to globalization activists propose more alluring headings instead of following the bearing of monetary globalization. Globalization has to a great extent affected the ecological factors as it has expanded the level of a worldwide temperature alteration, exhaustion in the ozone layer, the ascent in the ocean level and lessening in the water supply as it is subject to expanding measure of transportation, generation.

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The objective in this analysis is to help managers determine profitability and attractiveness of an industry (Investopedia, n.d.). The increasing level of competition decrease the profitability. Moreover, this tool provides a foundation to formulate strategy and recognize the competitive landscape in the same industry of the company ("Industry Analysis | Porter’s Five Forces | Competition,"

In any business, it is imperative that the business be its own worst critic. A SWOT analysis forces an objective analysis of a Companies position via its competitors and the marketplace. Simultaneously, an effective SWOT analysis will help determine in which areas a company is succeeding, allowing it to allocate resources in such a way as to maintain any dominant positions it may have. SWOT Analysis is a very effective way of identifying your Strengths and Weaknesses, and of examining the Opportunities and Threats you face. Carrying out an analysis using the SWOT framework will help you to focus your activities into areas where you are strong, and where the greatest opportunities lie.