STRATEGIC MANAGEMENT

Student id: 21467084

Submission id: 148647188
Word count: 2095
Executive Summary

This report analyses and examines Radisson Hotels Worldwide Inc.'s domestic
and external climate that affects such areas as revenue and competitive
markets. The study was performed using approaches like the VIRO model and
the BCG Matrix Model to consider the internal environment components that
are either strength or weaknesses or maybe influenced in future by external
problems. PESTLE was also used for the study of external factors leading to the
company's growth. Radisson's main issues are the personnel and preparation
currently played as a production. Also, the environmental considerations of the
business as the industry would undoubtedly have such a big carbon footprint.
It recommended that costs be reduced by in-house training and invest in
technology that can provide a broader range of services. Build a
comprehensive VIRO strategy to solve the environmental problems involved,
draw a larger market and reduce carbon footprint.

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 TABLE OF CONTENTS

Executive Summary………………………………………………………………………………………………………..01

1. Introduction…………………………………………………………………………………………...03

2. Strategic Business Management………………………………………………………………………….03

3. Assessment of Internal Environment……………………………………………………………..04

3.1 Radisson Hotel VIRO Analysis…………………………………………………………………………04

3.2 BCG Matrix Model of Radisson Hotel……………………………………………………………04

4. Assessment of External Environment…………………………………………………………………. 05

4.1 Radisson Hotel Porters 5 forces………………………………………………………………………05

4.2 Radisson Hotel Pestle Analysis……………………………………………………………………….05

4.3 Factors of PESTAL Analysis……………………………………………………………………………...06

5. Evaluation……………………………………………………………………………………………………………07

6. Conclusion……………………………………………………………………………………………………………08

7. References…………………………………………………………………………………………………………..09

8. Appendix ………………………………………………………………………………………………………10-12

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 1.0 Introduction

Strategic management means identifying an organization's purposes and actions and plans
for this ultimate goal (Lynch, 2015). Management will develop a strategic vision and mission
with strategic tools in place, set long-term targets and develop a competitive edge. To be
managed strategically by an organisation, it needs to use its capabilities and resources to
link the processes between its internal resources and its external connections to its clients,
suppliers and competitors (Turner et al., 2017). Furthermore, after implementing such
strategies, it is necessary to review them to assess the successes or the need for the
organisation to expand its operations and diversify.

Radisson Hotel Company (formerly Carlson Hotels) is one of the smaller hotel chains, with
just under 1,200 hotels worldwide. They are also one of the most difficult to trace due to
their diverse ownership arrangement. Carlson Hotels is responsible for the Americas market,
while Carlson Rezidor is responsible for Europe, the Middle East, and Africa. They have
worked as two independent businesses with distinct brands in each region. One of the most
well-balanced major hotel chains is Radisson Hotel Group. The United States accounts for 49
per cent of all hotel assets, followed by Europe, the Middle East, and Africa (36 per cent),
and Asia-Pacific (15 per cent).

2.0 Strategic Business Management

The strategic environment can be understood as anything and everyone outside of an
organisation such as clients, suppliers and rivals (Hayes and Miller, 2011). Understanding an
organization's climate is a key factor for developing a strategic plan (Olsen and Zhao, 2008).
A combined analysis of internal and external environments offers a detailed image of
current conditions, measures are taken to prepare a marketing strategy and develop or
enhance a product or service of value-added.

3.0 Assessment of Internal Environment

3.1 Radisson Hotel VIRO Analysis

The analytics for Radisson Hotel VRIO is primarily the extension of the PESTEL study of
Radisson Hotel, which enables Organization to consider capital, competitive advantage of
value proposal and business value. Analysize the element value to the company is the basic
concept of the Radisson Hotel VRIO model. This can include the reliability of the supply
chain, management of the value chain, technologies or other factors that provide value to
the business and enable an enterprise to give customers similar value.

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It also analyses the rare factors within the company. It is essential to analyse compatibilities
or capacity because it enables the company to develop a sustainable competitive advantage.
The effective value factor analysis gives the management a clear perspective and presents
the answer to where the company can develop the demand using the field value-creating
variables.
Briefly, the advantages of using VRIO analysis are to evaluate the market's competitive
advantage. This commitment is needed in order for a company to expand and carry out its
operations with good profitability. In order to prepare a business for either to use the useful
factor to satisfy its consumers and to build a competitive advantage, it also provides a clear
view to valuable and inimitable factors which can easily be imitated in the long run or to
improve demand and intensity to establish a competitive edge necessary for the developing
and retaining of market forces.

3.2 BCG Model of Radisson Hotel

The BCG methodology was created by the Boston Consulting Group as a strategic management
method to analyse a situation and the ability of a strategic business entity. The matrix consists of
four categories dependent on two dimensions.

 STAR: The financial services strategy business unit is a star in the BCG matrix of
The Hotel and Business Center Radisson Slavyanskaya. It operates on a demand
that shows potential promises. The Radisson Slavyanskaya hotel and business
centre receives substantial revenues from this SBU. There is still great
opportunity in this industry as customers demand this sort of product and other
related goods.

 CASH COWS: The strategic service provider is a cash cow in the BCG matrix of
The Hotel and Commercial Center in Radisson Slavyanskaya. The Radisson
Slavyanskaya Hotel and Business Center gained a considerable amount of money.
This was operating for over decades. For a Radisson Slavyanskaya Hotel and
business centre, the proposed plan is to avoid more investment in the business
and continue to operate as long as it is viable for this strategic business unit. 
 
 QUESTION MARK: The BCG matrix in the Radisson Slavjanskaya Hotel &
Business Center Local Food Strategic Business Department is a question mark.
Recent retail patterns show that shoppers depend on local brands more than
ever before. As a result, there is a strong demand increase in this market.
Nonetheless, the hotel and business centre in Radisson is home to a low number
of participants. Radisson Slavjanskaya Hotel approach involves investing in
innovation to achieve ground breaking features.

 DOGS: A dog in the BCG matrix of Hotel and Commercial Center The Radisson
Slavjanskaya is the business unit of strategic plastic bags. This strategic unit in
industry has been neglected over the last five years. There are already major
pollution problems in a declining market. The proposed strategy for Radisson
Slavjanskaya Hotel & Business Center is the sale and reduction of losses from this
strategic business area.

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4.0 Assessment of the External Environment

4.1 Radisson Hotel Porters 5 forces

The Five Forces Framework of Porter is a way to evaluate a company's competitiveness. The
IO's economics draws on five factors that determine the competitive intensity of an industry
and, consequently, its profitability as an attraction (or lack). Radisson Hotel Porter five
forces represent the industry's competitive climate. It is a strategic tool that prevents or
reduces the chance of losing the competitive advantage of the company and ensures
product viability in the long term. The viability of companies in the sector depends on the
following forces:
 

(A) Radisson hotel Competitive rivalry: Consequently, the Radisson Hotel rivalry is based
on diversity, industry growth and market barriers. Competitive competitiveness is the
study of the brands and product, their unique selling proposition, tactics, rivals and
market position. Rivals are Shangri la hotel, threats level are high.

(B) Threats of new Radisson hotel entrants: The hotels who are on the market are in
favour of creating obstacles for the potential competitors so they can't join the
industry. The hotels may be the emerging companies or companies that aim to
diversify on the market. Rivals are Shangri la hotel, threats level are low.

(C) Threats of substitute products: Substitute options for the Radisson Hotel are a
relatively stronger price choice present on the market. Scientific and creative
advancements are responsible for these goods. High replacement threats contribute to
low profitability as they reduce business benefit by setting a price cap on fear of
replacement by another commodity. Besides, the sector as a whole's growth capacity is
not affected but profitability margins are reduced. Rivals are Shangri la hotel, threats
level are high.

(D) Bargaining power of suppliers Radisson hotel: Powerful suppliers may achieve

considerable profit for themselves by requesting high pricing by restricting goods or
services quality and quantity or shifting costs from market players. In general, often
prices are increased thereby affecting quality and quantity as conditions set by
manufacturers. Rivals are Shangri la hotel, threats level is low.

(E)  Radisson hotel Bargaining power of customers: By forcing prices down and by
demanding high quality and services, strong consumers will reverse the influence of
supplies by generating competitive price- and quantity-based competition among
market participants. Customers of the Radisson Hotel are deemed to be solid,
particularly when the business is price sensitive, whether they include negotiated
leverages, the consumer may press suppliers to reduce their costs further. Rivals are
Shangri la hotel, threats level is low. Because the hotel price is based on mid-scale
level.
 

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4.2 Radisson Hotel PESTAL Analysis
PESTLE analysis is one of the most important and widely used tools or systems for
organisations, before beginning the marketing procedure, to understand business
circumstances. The environmental assessment will include continuous information about all
aspects of planning. An internal ecosystem of an organisation comprises internal
stakeholders, staff, compensation, office and finance technology, etc., while an external
client of an enterprise, retailers or representatives, competitors and suppliers are included
in the microenvironment. The macro-climate includes more considerations, socio-cultural
influences, economic forces and technological factors.

4.3 Factors of PESTAL Analysis

 
(A) Political Factor: This are the forces of the Hotel Radisson and are usually altered by
national political influence. Political aspects may include environmental controls,
housing regulations, taxes, fiscal policy, trade restrictions, economic stability and
reform. It should be noted that charities should be included where a government
cannot provide services and goods.
(B) Economic Factor: Radisson Hotel's external considers or powers include interest
rates, inflation, economic activities, living prices, hours of service, pay and exchange
rates. The results are greater and imminent as these elements are mixed.
(C) Social Factor: A company has a different cultural or social influence from country to
country. It is necessary to consider these variables. Social dimensions are security
and knowledge of wellbeing, varied cultures, demographic change patterns and
cultural aspects.
(D) Technology: Hotel technology is one of the most important ways to remain
successful in a highly diverse market world. It promotes not only globalisation but
also environmental and ecological considerations and available services and
commodities. A creative enterprise should be compliant with technologies.
(E) Environmental Factor: These two considerations include environmental factors and
the atmosphere is likely to determine environmental factors. Awareness of changes
in season, temperature or environment is included in this discussion. Environmental
assessment is necessary to influence the performance of an organisation, including
internal and external aspects.
(F) Legal Factor: Any laws and regulations that could influence the corporate practises
of an entity include the regulatory considerations of Radisson Hotel. It also includes
future and current legislation on competitiveness, accommodation, safety and
company health effects. An organisation should recognise the effect of national and
international law in the initiation of an organization's operations.

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5.0 Evaluation

In order to obtain the same end goal, there are alternatively two or three different methods. It is not
close a substitute for a first description choice or other option, or a solution to the problem might be
different. Cheaper rates, discount deals, money back guarantees and so on are all means of
achieving the same objective as higher earnings. Alternatives are normally mutually incompatible in
such a way as to provide a new alternative when we combine two or more alternatives.

They are the creative and economic means of implementing the scheme at the Radisson Hotel. In
specific, extensive and complex projects should be taken into consideration.

The contrast of alternatives measures, based on their organisational advantages, the benefits and
drawbacks of the above-developed alternatives. The disadvantages of alternatives are, however, the
costs associated with the implantation of the solution which must thus be weighed to avoid future or
execution malfunctions in the implementation phase.

In assessing alternatives, the advantages and contrasts of the above alternatives are assessed
according to the advantages they bring for the business and the strengths that help the enterprise
solve the problem. Therefore, the discomfort of the alternatives implies the cost of implementation.

In the evaluation period, the account is taken of the financial viability of the business and the
disadvantages/faults of the organisation. This is important because it allows the organisation to
meet its strategic goals and resolve the problem effectively.

Other stakeholders can need to contribute an informed input on alternatives to determine the
relevance and future benefit for the organisation of the alternatives over the long term. Open
discussion and review of past outcomes allow for a clearer understanding of the outcome and better
implementation of the right alternative.

6.0 Conclusion
The report above offers you the full knowledge of the planning strategies that can be really helpful in
leading an organisation. Administration will incorporate new systems to improve its ongoing plans
including an overview of the latest Radisson blu hotel internal and external policies. To gain a
competitive advantage over rivals from the same industry, a constant comparison is required. In
order for the business to be more effective in the global environment, management can use internal
resources effectively. If the implementation is complete, management will continue to monitor the
procedures to ensure success. In summary, PESTLE analysis is used as an effective preparatory tool
for the analysis and scan of the organisational landscape of an enterprise, and it provides viable and
accurate technology. The test's reliability depends largely on the accuracy of the collected data,
prompt accommodation warnings and other tools that minimise the PESTLE limit to some degree.

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7.0 Reference

Analysis, R., 2021. Radisson Hotel Case Solution & Analysis. [online] Caserighted.com. Available at:
<https://caserighted.com/radisson-hotel/> [Accessed 1 April 2021].

Academia.edu. 2021. Academia.edu | Log In. [online] Available at: <https://www.academia.edu/login>

[Accessed 6 April 2021].

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of

management, 17(1), 99-120
Barney, J. (2002). Gaining and Sustaining Competitive Advantage, 2nd ed. Prentice Hall,
Upper Saddle River, NJ.
Case48. 2021. BCG Matrix and VRIO Framework for The Radisson Slavyansk Hotel and Business
Center B. [online] Available at: <https://www.case48.com/bcg-case/44731-The-Radisson-
Slavjanskaya-Hotel-and-Business-Center-B> [Accessed 6 April 2021].

Jurevicius, O. (2013b). BCG growth-share matrix. Retrieved from

https://www.strategicmanagementinsight.com/tools/bcg-matrix-growth-share.html
Investopedia. 2021. How Strategic Management Works. [online] Available at:
<https://www.investopedia.com/terms/s/strategic-management.asp> [Accessed 6 April 2021].

West, J. and Olsen, M. (1989). Environmental scanning, industry structure and strategy making:
concepts and research in the hospitality industry. International Journal of Hospitality Management,
8(4), pp.283-298.

Turner, M., Way, S., Hodari, D. and Witteman, W. (2017). Hotel property performance: The role of
strategic management accounting. International Journal of Hospitality Management, 63, pp.33-

Phillips, P. and Moutinho, L. (2014). Critical review of strategic planning research in hospitality and
tourism. Annals of Tourism Research, 48, pp.96-

Henning Buehring, J. and Liedtka, J. (2018). Embracing systematic futures thinking at the intersection
of Strategic Planning, Foresight and Design. Journal of Innovation Management

Porter, M.E., 1991. Michael E. Porter on competition and strategy. Harvard Business School Press. •
Skyteam.com. (2019). Flights | SkyTeam. [online] Available at: https://www.skyteam.com/en/flights-
and-destinations [Accessed 1 Nov. 2019]. • THE Marketing Study Guide. (2019). BCG Matrix and its
Four Quadrants - THE Marketing Study Guide. [online] Available at:
https://www.marketingstudyguide.com/bcg-matrix-and-its-four-quadrants/ [Accessed 1 Nov. 2019].

• Thompson A.A., Strickland A.J. (2006). Strategic Management: Concepts and Situations for
Analysis. Moscow: Williams Publishing House.
Radisson Hospitality AB. 2021. Financial Releases | Radisson Hospitality AB. [online] Available at:
<https://www.radissonhospitalityab.com/investors/financial-releases> [Accessed 6 April 2021].

Jurevicius, O., 2021. Is the VRIO Framework a Key to Competitive Advantage?. [online] Strategic
Management Insight. Available at: <https://strategicmanagementinsight.com/tools/vrio.html>
[Accessed 6 April 2021].

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8.0 Appendix

Radisson Hotel Swot Analysis

(A)SWOT ANALYSIS
Today in 73 countries worldwide Radisson owns approximately 1000 properties. A clear target market for each
sub brand is included and this ensures that the hotel chain can standardise service through its hotels. Radisson
Hotels are known for its considered attitude to visitors, particularly to busy travellers, which allows them to
relax and unwind in their busy schedules.

Strength:

Service: As the Radisson slogan says, 'Yes, I do' is the motto for the service of the hotel chain. Workers was
educated to never say no or disagree, always friendly to satisfy constructive customer demands. This means that
operation in different parts of the world is top-class and reliable.

Wide network: The Radisson Group is represented worldwide in nearly 73 countries with approximately 1000
assets. Although the bulk of their hotels in the U.S. have a vast network, most are present in the hotel chain.

Radisson Incentives: Radisson is known for its rewards, also considered a benchmark in the industry. Their
incentives are membership fees that are cheaper than average customers' normal room rates. Customized
programmes, food and drink discounts and complimentary award nights. Points can be obtained and exchanged
in all of your hotels for stays at any Radisson Hotel.

Weakness:
Expansion plans: the Radisson Group plans to extend deeper into the Asia-Pacific region, and the improvements
in management will also facilitate this. This transition would include many costs which can be expensive for the
firm. The transformation and change of leadership may also call for a culturally demanding change.

The Radisson Group intends to refurbish and rename itself with a budget of USD 200 million. High promotional
costs. It might not be the best decision at a time when the hotel enterprise faces cost efficiency challenges.

OPPURTUNITIES:
Business dynamics change: the growing emphasis on service reduces a typical customer's price sensitivity.
Hotels of business class benefit immensely from the rise of corporate travel abroad. However, another trend in
the market that favours hospitality is the lower cost of travel abroad which makes it important for hotel chains to
be present throughout the world.

THREATS:

Competition: Shangri-La Hotels & Resorts, Starwood Hotels & Resorts, Hilton, Wyndham
Worldwide and Intercontinental hotels are the major rivals of the Radisson Group.
In order to recognise their strengths, weaknesses, opportunities and risks, internal
environment within organisations is analysed (SWOT). SWOT provides information on
factors that affect the company or can affect it (Cole and Kelly, 2015). Internal research
focuses on the evaluation of capital, skills, key skills and competitive advantages of
organisations. (Hill et al, 2018) Hill et al. This helps define the competitive benefit of the

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tools and competences and recognises fields for change or development. (Hesterly and
Barney, 2015).
The SWOT analysis reveals that much of the strengths of radisson are logical, since they are
inputs that can be transformed into benefit outputs. Overall the organisation, raising £3.2
million, has had a positive economic effect on the United States. The loss of sales of 5% and
profit of 3.9 in past years are, however, a weakness. This was due to the absence of
blockbuster events that are to be investigated in order to boost tender for those events (NLA
Media, 2019).

(Annual Report of Radisson Hotel janurary—june

2020)

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