Strategic Management Company Report Essay Example | Topics and Well Written Essays - 3000 words

Strategic Management Company Report - Essay ExampleThis expansion program made it become the first international hotel brand to score a truly international presence with hotels in Latin America, Asia/Pacific, Middle East and Africa. The original goal by PanAm was to assist local entrepreneurs and organisations design, build and solve hotels in important international airway gateway destinations and traffic centres to enrich the international travel experience (InterContinental 2012b). Currently, InterContinental Hotels & Resorts comprises of 169 hotels globally that have a depicted object of 57,598 rooms. It has also been named as the Worlds Leading Hotel Brand for three consecutive years (2009 to 2011) by the World Travel Awards, the ultimate travel honor worldwide (InterContinental 2012a). Also, the company is owned by the InterContinental Hotels Group (IHG), a mega-corporation that owns louvre other leading global hotel and resort brands. The other brands owned by IHG are Cro wne Plaza, Hotel Indigo, Holiday Inn, Holiday Inn Express, Staybridge Suites and Candlewood Suites. Given that the InterContinental Hotel is a significant part of the IHG, most of the available research data is presented within the linguistic context of the IHG / group. For this reason, this report too shall evaluate this particular business within the same group context. 2.0. Analysis of the Internal and External environment According to Gillespie (2007) analysis of the macro-environment allows trouble to get a clearer picture with regards to external factors that are likely to change and which among these will have a greater effect on the future survival, advantageousness and growth of the organisation. In this document, PESTLE analysis is used to evaluate the macro-environment. Within the same macro-environment, Porter (2008) argued that there are five forces that determine the structure and advantageousness of any given industry. For this reason, this paper uses the five forc es framework to analyse InterContinental Hotels industry structure. This section also evaluates the internal environment of the company utilize strategic capabilities. 2.1. External environment 2.1.1. PESTLE analysis I. Political factors The InterContinental Hotels are found in over 60 countries across the world. This represents a divers(a) geo-political landscape that the company needs to balance. Political factors affect government policies which in turn affect either one or more than one of the five competitive forces that influence an industrys profitability (Porter 2008). Two key areas that global politics has embraced is offering support for increase international trade and increased interdependence of national economies. This has naturally led firstly to increased business travel and then to leisure travel as the business travellers get uncovered to new cultures and tourism sites. This implies that globalization which Barnes (2008) referred to as increase in international trade, increase in interdependence of national economies and increase in cross-border social, cultural and scientific exchange indirectly promotes the travel and lodging industries. II. Economic factors Both the Asia-Pacific region and in the United States (US)