1. Introduction:
The internal and external audit refers to the analysis of the environment in which the business operates. The environment can be defined as political, social, technological etc. An analysis of these factors is extremely important as it has a direct impact on the functioning of any industry including hospitality. An analysis of these factors provides the business managers an opportunity to identify opportunities and threats and come out with a plan of action accordingly to deal with the situation.
The hospitality industry has undergone tremendous and complex changes after the era of globalization. In United Kingdom the hospitality sector contributes to major revenue generation for the country and is also one of the major sources of employment and therefore it is extremely competitive and enjoys tremendous support of
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Porter’s Five Force Model: This tool deals with the study of forces which have both internal and external impact on the industry. It analyses the competition factors in market and the process by which the organization competes to make more profits. The results of this analysis are helpful for the business managers to take strategic decisions.
4. SWOT Analysis: The SWOT analysis for any organization is done to develop a strong business strategy. The strategy takes into account all the opportunities and threats in the market scenario. The SWOT analysis of the hospitality industry are:
Strengths
• The product or the service is new and unique and as per customer needs.
• The prices offered by the hotel for the same set of services are cheaper than the competitors.
• The location of the hotel is easily accessible to the customers.
• The hotel has a strong networking with all the stakeholders.
• The staff of the hotel is qualified and self motivated.
• The hotel has a good brand name.
• The level of customer satisfaction and positive feedback is high.
Weakness:
• The hotel is very new to the area and the brand is not well
Porter’s five forces model seeks to portray how attractive an industry is in relation to the five competitive forces which includes, threat of substitutes, threat of entry, bargaining power of customers, intensity of competitive rivalry and bargaining power of suppliers.
SWOT analysis is a prearranged planning method that is used to assess the strengths, weaknesses, opportunities and threats involved in a business enterprise. It helps the business in analyzing their position and be able to plan and prepare their next move to achieve
Three steps for using Porter’s Five-Forces Model can reveal whether competition in a given industry is such that the firm can make an acceptable profit or not. They include identifying key elements of each competitive force that impact the firm, evaluating how strong and important each element is for the firm and deciding whether the collective strength of the elements is worth the firm entering or staying out of the industry.
Porter's Five Forces is a simple but powerful tool that consist of 5 different forces to understand the competitiveness of your business environment, and for identifying your strategy's potential profitability. The five forces are degree of rivalry, threat of entry, threat of substitutions, buyer power, and supplier power. Each force is helpful in their own way to get to know your rivals a lot better and get to know what can happen in your market.
Porter’s 5-Forces Model: A method for examining the competitive environment for a company or industry. It specifies and evaluates threats from new entrants, suppliers, buyers, and substitutes in the arena of competition.
Porter’s five-force model identified five forces which would impact on an organization’s behavior in a competitive market and access the external threats and identifies the opportunities to achieve competitive advantage. The five forces include:
Porter’s Five Forces was next used to determine the competitive environment. The Five Forces method is used to determine a company’s profit potential for a particular industry.
Michael Eugene Porter is an economist, author, advisor and a researcher. He is the creator of Porter Five Forces theory, which is a framework for a business. The model “identifies and analyzes five competitive forces that shape every industry, and helps determine an industry 's weaknesses and strengths” (Investopedia LLC, 2016). The five forces are competitive rivalry, bargaining power of buyers, bargaining power of suppliers, threat of new entry, and threat of substitution. This is a very important theory which a business can strengthen their position.
Michael Porter’s Five Forces Model is a useful tool to aid organizations facing the challenging decision of entering a new industry or industry segment. The Five Forces Model helps determine the relative attractiveness of an industry and
The research paper is divided into four tasks that individually evaluate the current business strategies that the management of Arcadia utilise to conduct their business operations. In addition, it further aims to evaluate business environmental analysis by means of PESTLE analysis and Porter’s five forces to understand the factors that affect the business of the company. Furthermore, it discusses the key aspects of Arcadia’s supply and value chain and areas to amend its working so is to increase their effectiveness of business. The last task assesses Arcadia’s management accounting system and change management models that would help the organisation to increase their work efficiency and reduces the issues that they are facing currently in
Porter 's five forces analysis is a framework for industry analysis and business strategy, consisting of five rules: Threat of new competition, Threat of substitute products or services, Bargaining power of buyers, Bargaining power of suppliers, and Intensity of competitive rivalry. By apply this model to the Apple company, we may know if the competition in this field is vigorous or not, and if Apple is safe in terms of being an attractive industries or not.
The Five Forces Model (developed by Dr. Michael Porter of Harvard University) is a powerful tool for evaluating the competitiveness of your business environment and for identifying your business‘s potential risks and profitability.
Porter 's Five Forces Model is a critical instrument to break down an outer aggressive environment of the business. The model incorporates threat of entry, the threat of rivalry, the threat of suppliers, the threat of purchasers and threat of substitutes.
The Porter Five forces analysis helps the marketer to contrast a competitive environment. Porter’s five forces model is comprised of following five completive forces:
Porter’s 5 Forces analysis is a commonly used business theory that identifies the 5 competitive forces of an industry. By identifying and analysing these forces you can determine an industries weaknesses and strengths. Porter recognised the 5 forces in most business markets to be internal rivalry, entry, substitutes and compliments, supplier power and buyer power.