The 's Of A Large Corporation Such As The Intercontinental Hotel Group Essay

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The Organization’s Resources
The interworking’s of a large corporation such as the Intercontinental Hotel Group (IHG) requires careful examination to ensure the company can obtain and sustain success within the industry. Throughout the internal environment analysis, the report will provide insight one the resources, capabilities, core competencies, and competitive advantages being deployed by IHG. According to the 2015 IHG annual report, “IHG brands primarily use a franchise based business model, where the hotel group manages hotels on behalf of the hotel owners” (InterContinental Hotels Group, 2016, p.12). In addition, the business strategy allows for an asset light strategy, where IHG can help the hotel owners generate higher returns on their invested capital.
The ability to provide a system where the owners of the IHG branded hotel can achieve higher returns on investment enables the investors to have increased confidence providing financing. However, the strategy benefits IHG by reducing the risk on their side, while also freeing the hotel group to reinvest their saving into the company. IHG generated 90% of their operating profits from the asset light strategy, which is great considering the hotel group only has seven owned or leased hotels in their system (InterContinental Hotels Group, 2016, p.13). While the business strategy deployed by IHG is a great competitive advantage and resource for the hotel group, they do offer some great benefits to their
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