Business strategy Report

Topics: Hotel, Hotel chains, Days Inn Pages: 15 (4235 words) Published: March 12, 2014
Executive summary

The purpose of this business strategy report was to analyze the internal and external environment of Ibis hotel and made recommendations to improve its generic strategy based on business-level and corporate-level strategy. According to analyzing the Ibis hotel’s internal environment, both tangible and intangible resources of the hotel were better than other economic hotels, because the facilities and equipment were in good conditions. Meanwhile, the Ibis hotel won many awards which not only benefited from the reputation of Accor but also benefit its high quality services. However, the only problem of the hotel was its design style did not combine with local cultures. The Ibis hotel also had capabilities to provide the 15 minutes contract to guarantee the staff will solve problems in short time. In addition, the Ibis hotel operated its business in high efficiency and quality, and it could be regarded as the most innovative hotel chains, which were the most obvious competitive advantages. In terms of external analysis, the growth rate of the economy and global trades contributed to the development of the Ibis hotel. Based on Porter's five Forces analyzed, the risk of entry by potential competitors was high. Bargaining power of suppliers was low, which was an opportunity for Ibis hotel development.

In the last part of the report, the Ibis hotel applied the franchising plan to expand its business, but it still needed to reduce its cost. Furthermore, the Ibis hotel should focus on its service and facilities quality.

Table of Contents
Executive summary
1.00 Introduction
2.00 Analysis of the internal environment
2.10 Resources
2.11 Tangible resources
2.12 Intangible resourcesII
2.20 Capabilities
2.30 Distinctive competencies
2.40 Competitive advantage
3.00 Analysis if the external environment
3.10 Analysis of the macro-environment
3.11Macroeconmic Forces
3.12 Global Forces
3.20 Analysis of the industry environment
3.21 Risk of entry by potential competitors
3.22 Bargaining power of suppliers
3.23 Bargaining power of customers
3.24 Intensity of rivalry
3.25 The Threat of substitute products
4.00 Recommended strategic direction
4.10 Recommendations for business-level strategy
4.20 Recommendations for corporate-level strategy ⅩⅣ
5.00 ConclusionⅩⅦ
Reference List

1.00 Introduction
Ibis hotel is an economic chain hotel which is one of the brands of Accor international hotel. Since it was established in 1974, Ibis hotel is world-renowned for its quality service and competitive prices. Nowadays, Ibis hotel has nearly 900 branch chains which are located in 45 countries and regions.

This report aims to analyze the internal and external environment of Ibis hotel and find out the business strategy for the enterprise. This report is divided into three aspects. Firstly, the authors critically analyze the Ibis hotel’s internal environment. Secondly, external environment is analyzed from two aspects, which are macro-environment and industry environment. Recommendations are proposed in the third part, which assists Ibis hotel maintain and improve its competitive advantages.

2.00 Analysis of the internal environment
‘The internal environment consists of the inherent competencies of the firm and the structure of its internal systems and processes’ (Hill & Jones 2010, p. 19). In order to formulate a distinctive strategy of the corporation it is essential to analyze the internal environment of the company, which includes evaluating its resources and capabilities. In this section, the author will critically analyze Ibis hotels’ internal environment and discover this chain hotels’ competitive advantages based on Hill and Jones theory.

2.10 Resource
As (Hill & Jones 2010, p. 20) pointed out, ‘Resources refer to the assets of a company, which also can be divided into two types: tangible...
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