Hospitality Business Global Expansion

Hospitality Business Global Expansion

Introduction

International expansion is a critical parameter for the development and the survival of the business. Geographical expansion of firms requires expertise in the domain of operations management and development of proactive strategies to compete with firms in foreign markets operating in the same industry. To manage these multiple local expansions without falling into the spatial dispersion or precipitation of the moment, strategic action plan of the company must determine the geographic match to the vision and its development ambitions.

Hospitality is an essential element, especially for hotel and resort industry. It has direct affected on the customer's satisfaction and eventually will affect business. There are millions of tourists who visit foreign countries; a terrible hospitality by comparable firms will not only affect business but countries image, as well (Michael, 1980, 86).

The hospitality sector includes of a large group of fields within the service sector that includes, but not limited to, restaurants, lodging, event planning, transportation, theme parks, cruise line, and other businesses in the tourism sector. The hospitality sector is a multi-billion dollar sector that largely depends on the availability of disposable income and leisure time. A hospitality business such as a hotel, restaurant, or an amusement park includes multiple groups for instance, direct operations, facility maintenance, marketing, finance and human resources.

In this paper we have chosen china and UK to be our target market because of their strong economy and financial position.

PEST Analysis

The PEST analysis is a tool that helps in designing and devising the strategy. This method is used to analyze the macro-external environment in which a company operates. PEST factors play an important role in the opportunities for value creation strategy. However, they are usually beyond the control of the company and should normally be regarded as threats or opportunities. The original analysis PEST is an acronym for the factors, political, economic, social and technological. An analysis of the macro environment where the Irish hospitality business operates is given below, highlighting the Political, economic, social, technological, environmental and legal forces that shape its business and future. The PEST analysis is used for business and strategic planning, marketing planning, development activities related to products and research (Michael 1980, 86). As this paper, talks about Hotel Expansion Plan so this part of the paper, is focused on the analysis of PEST for hotel industry in UK and China (Evans, 2008, 14).

PEST Analysis of UK

Political Factors

Overall, political situation is not a significant trend of the hotel and restaurant industry. UK enjoys a stable political environment. However, the expansion of the European Union, as well as, the country's involvement in War against Terrorism has affected it. Moreover, the rising inflation and the increased taxation have affected the purchasing power of the public, which may have negative consequences for the company. Despite being the world's largest industry, tourism has remained depoliticized which in turn give a boost to the hotel and restaurant industry. But the scenario is quite different in a country like ...