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International Hospitality Management. Report. Case study. Crowne Plaza.
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International Hospitality Management. Report. Case study Crowne Plaza with references.
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Report of International HospitalityManagement.
By
Student no:
Course: International Tourism and Hospitality Management
(Top-Up) BSc (Hons). University of Sunderland in London
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Maximum of 3500 words.
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Contents
,TLH314 - International Hospitality Management (2019/0 - London - DL9 -
TRM1)
Introduction...........................................................................................................................................1
1.Background to Hotel company..........................................................................................................2
1.2 SWOT analysis of the Crown Plaza Hotel.....................................................................................4
1.3 PEST of selecting market (Hong Kong, China).............................................................................6
1.4 Analysis of Porter’s focus strategy (differentiation).....................................................................8
1.4.1 The strategy Clock for the focus differentiation....................................................................9
1.5 Igor Ansoff’ Market development strategy model.....................................................................11
1.6 The Equity and Non-equity entry modes...............................................................................13
1.7 The Fourteen Hotel Strategic Growth Option by (Nykiel, 2005)............................................14
1.8 Recommendations and conclusion............................................................................................15
2 References........................................................................................................................................16
3 Bibliography......................................................................................................................................19
4 Appendix...........................................................................................................................................21
Background of the merging market. China.....................................................................................21
Introduction
According to Brotherton & Wood, (2008) the international hotels started after the II war,
where prominent local hotels started building their business abroad to give a better service for
1|Page
, TLH314 - International Hospitality Management (2019/0 - London - DL9 -
TRM1)
their national clientele. The creation of international hospitality started by the curiosity of
high and middle class who had an excellent dispose of income and wanted to explore other
nations abroad. Unfortunately, in the past time was not available to find the comfort of
staying in accommodation which could be familiar for abroad travellers stated by Sharma,
(n.d.). Therefore, often, travellers at that time had to adapt to what the foreign country was
providing. Barriers such as languages and poor hygiene were reasons for discomfort and
illness for tourists. That is the reason why, later on, developed countries started their business
abroad to meet those demands for their clients abroad.
Today as Okumus (2010) outlines, the globalisation business increased, and more hotel
chains are competing for the international market. Therefore, managers had to find strategies
to survive in the market competition. One of these called the strategic management which, is
a field of study of the hospitality industry where specific goals and objectives are sought for
the organisation. Such targets defined in the mission and vision statement of the organisation
culture. In the 1990s, the phenomena of globalisation culture incurred the emerging of new
strategies. Another method is called “strategic alliance”, an example of it is the Hilton joins
Playa Hotel & Resort (Hart, 2019). More organisations join together their resources to
acquire a better business.
The case study of this report is the Crowne Plaza hotel which seeks to expand its business by
entering into a new market in China- Hong-Kong. Hence, the top manager of the Crowne
Plaza Hotel needs to analyse some aspects of the new emerging economy accurately. Rational
analysis and theory used for this process. The PEST model used for the new market and
SWOT model for the hotel chain. Consequentially, using hotel strategies such as; Porters
Generic strategies, Ansoffs matrix and Nykiel’s fourteen hotel strategies, the author of this
report will select strategies that are more suitable for the Crowne Plaza hotel.
1.Background to Hotel company.
2|Page
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