Comprehensive Strategic Plan of Ihg

Topics: InterContinental Hotels Group, Hotel chains, Tourism, Hotel, Financial ratio / Pages: 16 (3787 words) / Published: Oct 29th, 2012
Executive Summary The following comprehensive strategic plan focuses on the Intercontinental Hotel Group (IHG). Recommend the board of directors to adopt a diversification strategy in order to increase profitability and grow its presence in globally and emerging markets. This paper will further evaluate the company strategic direction with the mission, vision statement and corporate social responsibility. Follow with a SWOT analysis to identify the internal and external situation, financial ratios are used to determine the company's financial health. Finally, provide possible strategic alternatives with recommendation and strategic implementation plan.

Overview InterContinental Hotel Group (IHG) is an international hotels group was found in 1967 and headquarter is located in Denham, United Kingdom. It operates in three business models, as franchising, managing and owning hotels and resorts. The company operates its hotels under nine brands, Hotel Indigo, Crowne Plaza, InterContinental, Holiday Inn, Holiday Inn Express, Staybridge Suites, Candlewood Suites, Even and Hualuxe hotels and resorts brands, in over 100 countries around the world. IHG has approximately 661,159 hotels rooms and has approximately 1,100 hotels in its development pipeline. It has more than 4,506 hotels and is the world's largest hotel group by number of rooms. (IHG Annual report 2012). The company operates a diverse portfolio of brands across multiple segmentation, which cater for multiple price segments from the upscale 5 star properties focusing on the international business traveler, to the 4 star properties catering both to the business traveler and the leisure traveler down to the midscale targeting both domestic business and leisure travelers (IHG Annual report 2011). Most of its revenue generates from royalty fees of franchises and management fees from the hotels it manages. IHG only owns 11 hotels worldwide, less than 1% of its portfolio (IHG Business Model). IHG mainly focus



References: Bloomberg Businessweek (2012) Intercontinental Hotels Group. Retrieved from http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker =IHG:US Forbes (2011) Intercontinental Hotels Announces Repositioning of Crowne Plaza Brand. Retrieved from http://www.forbes.com/2011/10/25/intercontinental-hotels- announces-repositioning-of-crowne-plaza-brand-marketnewsvideo.html Hotelier Middle East http://www.ihgplc.com/files/reports/ar2011/docs/IHG_Review_SFS_2011.pdf Ling, P (2011) http://travel-industry.uptake.com/blog/2010/02/24/hotel-ihg- way/#ixzz1vOOuoMEC Marketing Week (2010) Tutor 2u (n.d.) Ansoff product and market matrix. Retrieved from http://tutor2u.net/business/strategy/ansoff_matrix.htm World Tourism Organization UNWTO (2010) http://unwto.org/en/publication/annual-report-2010 Yang, Y (2011)

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