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Hotel External Environment and Internal Environment Analysis


In legal conditions 'Rules' is thought as, "a guideline of conduct or action approved or formally named binding or enforced with a controlling specialist: as a : a command line or provision enacted by way of a legislature".

Basically it is a couple of regulation and laws of conduct, that are practiced generally. These regulations are destined by legislature.

In this assignment I will be discussing regulation in framework with Concern and Contract.

Question 1:

Marketing emphasises on getting together with the needs of the consumers and providing them with value, and benefits, while at exactly the same time handling the company in an useful and profitable manner.

Marketing is an activity that involves regular adaptation and execution of the differing consumer developments, and demands. While at the same time developing a competitive advantage in the competitors, and while at the same time ensuring that the satisfaction of the needs cause a healthy turnover for the company.

Objective of the coursework:

The objective of this task is to analyse the Manor House Country Golf club Hotel's (MHCCH) external environment and inside environment. I will use PESTEL Evaluation, Industry Analysis and MHCCH's Opportunity and Threat analysis to acquire the company's exterior environment and Primary competencies, Value chain, Ansoff Matrix, durability and weakness of MHCCH will be applied to illustrate the inner environment.

Overview of the Hotel:

In 1992, Manor House Country Team Hotel was founded as a family held business by the Jenkins Family, in Singapore. The MHCCH spans over 3 acres of exclusive reclaimed land, and is operating presently as an individual hotel. The Hotel provides various types of Luxurious accommodations, and acts tourists from all over the world. The hotel also functions its customers with numerous kinds of cuisines, from its modernised Restaurant; the hotel also offers Bistro that is licensed to market alcoholic refreshments. For corporate conferences and conferences to be placed in the hotel, the hotel has adequate premises and facilities. Along with other miscellaneous services provided by the hotel include a Beauty Salon. In short it could be said that the MHCCH stands up to the luxurious standard that it jobs.

Analysis of the Micro Environment: (Internal)

The Micro/inner factors will be the pushes inside the hotel that can affect the performance of the hotel, thus through the micro environment evaluation, we search for and devise a strategy to beat those shortcomings that might hinder the progress of the hotel.

SW (Strength and Weakness) Research:


  • The MHCCH is located at a primary and favourable location, which is easy to get at.
  • The MHCCH effectively depicts its Luxury position in the tourism and hospitality industry, thus differentiating it from your competition.
  • It is licensed to provide alcoholic drinks in the hotel, thus widening its consumer foundation, and scope for profitability.
  • Additional accommodation was added by MHCCH in 2002, so now it can house more customers, hence an increase in output.
  • The Market value of MHCCH is eight times more than its actual value, which is the sign of a profitable and stable business.


  • There is a consecutive decline in the amount of commercial clients for the Hotel in the past years, while the quantity of trade conferences kept in the country has gone up by 30%.
  • Over costs of the room rates above the average price level for similar rooms in other competitive hotels may lead to a decline in the number of customers.
  • As for the current situation the MHCCH lacks direction in terms of the strategic arrange for expansion, and its aim for consumers, those are essential for the development of the MHCCH.


  • MHCCH can offer better appointment/conferencing facilities to its commercial clients to up the number of corporate bookings. Also it can reconsider its charges policies and offer trade discounts to its clients.
  • The accommodation/room tariffs to be priced at a market competitive rate, and not at exorbitant prices, which can set the customers off.
  • A tactical marketing and action plan to be establish by the MHCCH while keeping its perfect priorities in focus.


The shortcomings of the MHCCH are not of a significant nature, they can be rectified by implementing simple corrective activities, like a proper plan. It is quite natural for just about any organisations to handle hurdles in its developmental period.

Core competencies: (Micro Evaluation)

Core competencies are why is an organisation not the same as others, in most cases its' immediate competition. The MHCCH can develop its primary competency on the basis of its luxury position on the market. It must purpose at providing quality services to its customers at competitive prices. This also improves its foothold in the competitive market. As it is in the primary culture associated with an organisation, to meet its customers and providing them the value for his or her money, that is exactly what constitutes the essential differences among the various organisations.

Value chain: (Micro Analysis)

The basic motive of the worthiness string is to supply the customers with a certain degree of value that surpass the price tag on the actions and ultimately it seems in a profit percentage. The value chain of MHCCH is offered below:

Quality Service: The hotel management has to ensure that the customers are provided with high quality services that are worthy of the price that a customer is paying. So that the customer is satisfied.

Satisfaction of customer needs: The next step is to meet the specific needs and requirements of the clients according to their preferences and personal preferences, as the service industry is commonly very personal, tailor-made arrangements have to be made to meet the customer needs.

Trained and Efficient staff: Every customer expects to be cured in the most hospitable and best manner possible, thus MHCCH should ensure that the staffs is well-trained and reliable as it pertains to working with the clients.

Marketing and Brand building: On this stage, MHCCH wants potential buyers to market the services it includes and to do that they certainly advertising, costing etc. And create a reputable image in the market, which is also an essential factor to Client satisfaction.

There are some aiding factors to the items mentioned above which can't be fulfilled without the help of these:

1). Infrastructure:

The aesthetic appeal of the hotel is an essential factor of the product quality it indicates in its service, thus the infrastructure should be as enticing and attractive as the assistance provided within the MHCCH.

2). Specialisation:

To satisfy the specific customer requirements, the hotel must keep in mind that achieving those demands is vital and difficult at the same time, thus specialisation in rewarding the customer needs is an essential supporting factor.

3). Human Resource Management:

The personnel must be recruited and accordingly trained to cope with its customers, as the employees of MHCCH reflect the image of the hotel itself. Thus HRM is a bare need in the proper planning process.

4). Marketing Research:

With proper analytical tools and a much better understanding of the marketplace, the task of marketing becomes much easier for MHCCH, departing a long sustained impression in the customer's head.

Macro evaluation: (Alternative)

By checking the macro the environment, the business can devise a better strategy towards conquering the identified threats and to make use of the available opportunities.

OT: (Opportunities and Risks)


  • Tapping the advantages of the high growth of tourism industry in Singapore.
  • High demand of differing cuisines/life-style.
  • Scope of expansion in discussion/family travel organizations.
  • Expand the MHCCH brand by buying external property, through borrowing/re-investing income.


Highly competitive hotel industry, competitive charges, similar services, etc. If proper steps to keep up and extend MHCCH are not taken, then this may be a potential danger to the hotel.

Lack of Differentiation is another factor that will serve as a danger to MHCCH as there are numerous segments i. e. budget children hostels, 5 star hotels, backpacker lodges, etc. MHCCH should hold on to a particular portion and differentiate itself from others on its basis.

Increasing Bureaucracy and the various new regulations imposed by the government can cause hindrances in the growth programs of MHCCH, e. g. licenses and allows required to perform some activities in the Hotel.

Pestel Analysis

PESTEL represents Politics, Economic, Social, Complex, Environment and Legislative factors which can be external in character. The current and future change of six key areas make a difference the MHCCH's business. The PESTEL analysis explores the wide-ranging environment where the MHCCH is operating.

Political Factor: These contain the rules and regulations integrated on the Hotel by the Government. The Singapore authorities is willing on increasing its recognition as a traveler destination, thus a beneficial factor for MHCCH.

Economic Factors: Singapore is among a few of the fastest growing eastern economies, thus the GDP and the general public spending is on a constant rise, so is the purchasing electric power of the individuals of Singapore and the Visitors. Again it's towards MHCCH.

Social Factors: The Cultural and social aspects of a country are highly important to the business, the current style of the growing demand for new styles of drink and food is a sign of the change in the public factor.

Technological Factors: Technology is straight associated with modernisation, the hotel has to keep up up to now with the latest technological changes in the business environment, for e. g. Cellular internet, Computer bay, HDTV's, etc. This increases the product quality and quantity of the stay of the clients.

Environmental Factors: Extreme changes are happening in the global environment nowadays; also environmental understanding is becoming more common by the day. Environment friendly applications have to be implemented by MHCCH to balance its responsibility towards the surroundings.

Legal Factors: The MHCCH must follow the legislation working in their physical place (Asian Legislation). This influences their business hugely. It may provide in or against their favour, with respect to the legislation.

Part B

The Manor House Country Golf club Hotel can extend its business in within the next 2 yrs by following these strategies/theories.

Ansoff Matrix:

The Ansoff Matrix is useful in deciding the company's product and market growth strategy. The Ansoff Matrix in reference to MHCCH is:

Market Penetration: MHCCH is building a more powerful market position by giving similar luxury services as the other hotels in the same market.

Market Development: MHCCH is investing in its site to develop its unused land into small leisure centres. These ventures are aimed at developing a more robust position of the hotel in the market.

Product Development: The primary concentrate of MHCCH is on expanding its service program by enhancing the infrastructure and attracting more customers. By investing in the hotel, the assistance they feature can be developed

Diversification: This calls for MHCCH entering a company that's not currently a part of their plan, which at the moment it isn't doing, nevertheless they can consider diversification in to the alternatives in future, as it leads to added income and goodwill.

Porter's Grid

Porter's Grid is also popular as Porter's Five Pressure analysis. These were produced by Michael E. Porter. The competitive environment of the MHCCH is explored in depth through the Porter's research below:

1). Bargaining power of the Dealer:

The resource in this industry is largely predicated on FMCGs (FAST PACED Consumer Goods) which is quite versatile since the Hotel purchases its equipment in bulk volumes. Thus the ready availability of the products by the suppliers and the perennial demand of the products limit the bargaining power of the suppliers.

2). Bargaining power of Buyers:

There are extensive alternatives to choose from for the customers of MHCCH as there are rooms of differing levels of luxury and prices, ranging from basic single-bed room to super luxury Suite plans. You will discover other hotels offering similar rooms to them at competitive prices, thus customers do have their show of bargaining electricity in cases like this.

3). Risk of new entrants:

The hotel industry in Singapore is facing hard competition not only from the entry of locally centered hotels but also gigantic multinational hotel chains, the new entrants might arrive as a threat for the company.

4). Threat of Substitutes:

MHCCH essentially provides accommodation oriented services to its customers, while there are a big variety of substitutes designed for them, to obtain similar services. The primary differentiating factor here's costing, and the difference in the grade of the services. There is a strong threat of substitutes, but with a well planned pricing insurance policy, this danger may be averted.

5). Rivalry among competitors:

Rivalry among rivals is fairly high for MHCCH as the competitors provide same services/products, and they operate in the same market and environment. While at the same time there are new opponents entering the market. As well as the buyers have the energy to choose the services/products at lower prices.


As of now MHCCH is working as successful enterprise, which through proper strategic planning can be progressed into a more flourishing business, and an extremely successful hotel.

But for Manor House Country Team Hotel to effectively extend its business within the next 2 yrs, it is a good idea for them to adopt the Market/Product development strategy, as it offers them with an opportunity to utilise their available resources within an maximum manner, while at the same time continuing the tedious functioning of business.

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