Student Assignment Covering Form

Course/Unit Information
Course Pearson BTEC Level 5 Higher National Diploma
Unit No. and Name Unit 32: Business Strategy
Unit code Y/508/0487
Unit Type Core
Schedule Code BSZRM2101A

Instructor Information
Name Mr. Zawahir Siddique
Phone +971 55 984 6050
Email zawahir@mywestford.com

Assignment Information
Full/ Part Assignment Full
Date Assignment Issued January 3, 2021
Date Assignment Due January 30, 2021
Turnitin Class ID 27579484
Turnitin Keyword BSZ2101

Student Information
(To be filled by the student prior to submitting the assignment)

Name Syeda Noor Fatima

Email nf124865@gmail.com
Date of Submission 26 January 2021

Student Assignment covering form is an integral part of the assignment document and should be
submitted along with all submissions.

1
 Student Declaration

I, _________Syeda Noor Fatima_____________, hereby confirm that this assignment is my own work and not
copied or plagiarized. It has not previously been submitted as part of any assessment for this qualification. All
the sources, from which information has been obtained for this assignment, have been referenced as per Harvard
Referencing format. I further confirm that I have read and understood the Westford University College rules and
regulations about plagiarism and copying and agree to be bound by them. Attached is the Turnitin report for
reference.

Students Signature :
Students Name : Syeda Noor Fatima

Date : 26 January 2021

Turnitin full report should also be uploaded on the LMS along with the Assignment.

2
3
 Achievement Feedback Summary

Assessor’s Name Mr. Zawahir Siddique

Pass Merit Distinction Grades Awarded

LO1 Analyze the impact and influence which the macro

environment has on an organization and its business strategies.
P1 Achieved
M1 Achieved
P1 Applying appropriate M1 Critically analyse the
frameworks analyse the impact macro environment to D1 Achieved
and influence of the macro determine and inform
environment on a given strategic management
organisation and its strategies. decisions.

LO2 Assess an organization’s internal environment and

capabilities.
LO1, 2, 3 & 4
D1 Critique and
interpret information
M2 Critically evaluate the and data applying P2 Achieved
internal environment to
P2 Analyse the internal
assess strengths and environmental and
environment and capabilities of competitive analysis to M2 Achieved/
weaknesses of an
a given organisation using
appropriate frameworks.
organisation’s internal produce a set of valid
capabilities, structure and strategic directions,
skill set. objectives and tactical
actions.
LO3 Evaluate and apply the outcomes of an analysis using
Porter’s Five Forces model to a given market sector.

P3 Applying Porter’s Five M3 Devise appropriate

Forces model evaluate the strategies to improve
competitive forces of a given competitive edge and market P3 Achieved
market sector for an position based on the
organisation. outcomes. M3 Achieved

4
LO4 Apply models, theories and concepts to assist with the
understanding and interpretation of strategic directions
available to an organization.

P4 Applying a range of P4 Achieved

M4 Produce a strategic
theories, concepts and models,
management plan that has
interpret and devise strategic M4 Achieved
tangible and tactical strategic
planning for a given
priorities and objectives.
organisation.

Overall Feedback Summary

Over All Grade Distinction Date 4-2-2021

[To Achieve a PASS, all P grade descriptors should be achieved; To achieve a MERIT, all P and M grade descriptors should be
achieved; To achieve a DISTINCTION, all P, M and D grade descriptors should be achieved.]
The macro environment is analyzed with detailed application of PESTLE model and
appropriate examples and strategies are applied in the context of McD Hotel in UAE.

The internal capabilities, skill set, and structure are analyzed with critical analysis of
Summative Feedback
Porter’s Value Chain.
Overall feedback on current work
Porter’s Five Forces is analyzed in the context of UAE and appropriate strategies for McD
with emphasis on how the student
are proposed with adequate critical analysis.
can improve and achieve higher
grades in future.
Tactical and tangible priorities are highlighted in the proposed plan and significant
strategic objectives and directions are proposed for McD Hotel to operate in UAE.
Exploring boutique hotels and , building 7 star hotels been discussed in the context of McD
Hotel’s entry strategies in UAE. Excellent work, overall.

General Guidelines

Please read the instructions carefully and tick the checkboxes

Complete the title page with all necessary student details and ensure that the signature of the student is
marked in the declaration form.
All assignments must be submitted as an electronic document in MS Word to the LMS (Use 12 Times
New Roman script).
Assignment that is not submitted to the LMS by the prescribed deadline will be accepted ONLY under
the REDO and RESIT submission policy of Westford.
The results are declared only if the student has met the mandatory attendance requirement of 75%
and/or a minimum of 50% under extenuating circumstances approved and ratified by the Academic
Director. The student has to repeat the module (with additional fees applicable) if the attendance is
below 50%.
The assignment should not contain any contents including references cited from websites like
www.ukessays.com, www.studymode.com, www.slideshare.net, www.scribd.com
Submit the assignment in a MS Word document with the file name being:
First Name Last Name_ abbreviation of the subject.
Example: John Smith_BS.

Quick reference Checklist for the Students before submitting the assignment:

5
1. Adherence to the deadline of submission date
2. Original cover sheet and format retained
3. Student information and signature intact
4. Font style and size used as instructed
5. Harvard Referencing System and Citations are strictly followed

6
 Business Strategy: Assignment Task

Assignment title BUSINESS STRATEGY

LO1: Analyze the impact and influence which the macro environment has on an organization
and its business strategies.

LO2: Assess an organization’s internal environment and capabilities.

LO3: Evaluate and apply the outcomes of an analysis using Porter’s Five Forces model to a given
market sector.

LO4: Apply models, theories and concepts to assist with the understanding and interpretation of
strategic directions available to an organization.

Scenario:

McDonald’s established its first Hotel in 2001 in Switzerland. You are hired as a Corporate
Strategy Consultant by McD [American Multinational Fast Food Company] to plan its entry
strategy in United Arab Emirates [UAE] to set up its first Hotel in UAE. You have been assigned to
prepare a report that includes the environmental analysis and strategic growth management plan
based on the use of recognized internal and external analytical tools.

The report should include the following:

1. Critically analyze the impact and influence of macro environment in UAE on the strategic
management decisions to be made by McD applying the PESTLE model.

2. Analyze the internal environment and strategic capabilities of McD using Value Chain Analysis.

3. Critically evaluate the internal environment to assess the organization’s internal structure,
capabilities and skill set.

4. Evaluate the competitive forces in UAE applying Porter’s Five Forces Model for McD. Devise
appropriate strategies to improve competitive edge and market position based on the outcomes of
Porter’s Five Forces analysis.

5. Interpret and devise a strategic management plan for McD applying a range of theories, concepts
and models like Porter’s Generic Strategies, Ansoff’s Matrix and Bowman’s Strategy Clock (all
three models are mandatory).

6. In the proposed plan discuss the tangible and tactical priorities and objectives, and thereafter
critically analyze and interpret the relevant information to produce strategic directions, objectives
and tactical action which McD can adopt.

7
NOTE: The submission on the LMS is in the form of an individual written report. This should be written
in a concise, formal business style using single spacing and font size 12. You are required to make use of
headings, paragraphs and subsections as appropriate, and all work must be supported with research and
referenced using the Harvard referencing system. Please also provide a bibliography using the Harvard
Referencing System. The recommended word limit is 4000–5000 words, although you will not be
penalized for exceeding the total word limit.

8
 McDonald’s History

McDonald's, the Western - style fast food company, famous by its cheeseburgers, is

among the biggest in the world. Its offices are in the Illinois town of Oak Brook.
In San Bernardino, California, the very first McDonald's restaurant was established in
1948 by brothers Maurice and Richard McDonald. They purchased equipment from
dealer Ray Kroc for their small hamburger restaurant, who had been fascinated by
their want of eight malt and shake mixers. When Kroc consulted the siblings in 1954
to see how many such milk shakes may be sold in a small store, he learned an easy,
quick, An advanced system that allowed the brothers to generate enormous amounts
of food at cheap prices. A simple cheeseburger cost 15 cents, around half the
amount paid by rival restaurants. The self-service counter removed its need for
restaurant staff; since hamburgers were prepared in advance, packaged, and heated
beneath hot lights, clients received their food easily. Finding tremendous potential in
the restaurant model, Kroc proposed the McDonald brothers to establish a chain
scheme. He established the very first McDonald's branch in Des Plaines, Illinois on
April 15, 1955, and founded the McDonald's Company in the same year, ultimately
acquiring the McDonald's brothers in 1961. By the end of the decade, the amount of
McDonald's locations might exceed 1,000. Bolstered by consistent growth, in 1965,
the inventory of the business started trading commercially.
The franchise began to grow regionally and overseas, expanding in 1967 to Canada,
hitting a maximum of 10,000 outlets by 1988, and in the early 21st century,
maintaining upwards of 35,000 branches in more than 100 countries. Development
in the 1990s was so fast that a fresh McDonald's was also said to start opening
every 5 hours somewhere in the world. It had become essentially the most famous
family restaurant Stressing cheap food, entertainment, and flavors that spoke to kids
and grownups simultaneously. (Britannica, 2005)

9
McDonald’s Corporate Mission and Vision
Statement

MISSION

Be the preferred place to eat and drink for our customers

VISION
Pace to improve profitability and make McDonalds ever
healthier, delivering more tasty food every day across the
globe.

(MEYER, 2019)

The Golden Arch Hotel

Martin Huber, Chief Financial Officer of McDonalds Switzerland, informed that
Switzerland had been selected by the organization since this nation does have solid
"legacy in the hotel industry"
The Golden Arch Hotel seeks to draw corporate travelers across the week, with most
weekend visitors projected to be made up of families and younger guests.
Many creative services are available in the rooms, namely elevated Access to
internet and "sit'n-sleep beds" with customizable motorized configurations. On
delivery, customers can Register and sign in your rooms online. (O'Brien, 2001)

10
 Golden Arch Hotel, Switzerland
By launching new hotels in Switzerland under the Golden Arch Hotel name,
McDonald's has announced a new plan. With cutting-edge in-room technology and
exclusive, contemporary interior design, the hotels have been positioned as four-star
lodging. ' Regarding their stays at the Golden Arch Hotels, guest testimonials were
combined.  Nevertheless, everyone really seems to acknowledge that perhaps The
4-star rating did not match with the prestige of McDonald's.
McDonald's Chicago management decided to begin a 'diversification' effort to spread
innovative ideas internationally, taking into account the fragmented global market of
cheeseburgers. Hammer, McDonald's long-time CEO, proposed an excursion to
construction of the hospitality industry on McDonald's reputation of sanitation and
fast, excellent facilities. Hammer was persuaded that the venture might be a triumph,
with McDonald's strong international customer loyalty and marketable qualifications
through restaurant to hotel.
The hospitality industry in Zurich has indeed been flourishing with many
infrastructure projects underway. In essence, the development was moving so quick
that experts anticipated excess capacity in the coming years. Golden Arch Hotels
faces the task of how to efficiently approach main consumer segments in an
extremely competitive accommodation sector: travel classes, business travelers and
frequent travelers (FITs). (Anon., 2005, p. 16)
Initially, the Golden Arch Hotel in Zurich launched, and it was beyond every such
hotels anywhere. The McDonalds was available 24 hours, just outside the entrance
(a rarity in Switzerland). The guest accommodation displayed a proprietary beveled
edge and a cylindrical, see-through bathroom stall that ruptured into the room.

11
Question 1.

PESTLE Analysis of McDonalds

The PESTLE analysis uses the issues to guide strategic decision-making. To assist

think critically and anticipate new activities, businesses need to understand the
broader macro-environment wherein they operate. PESTLE research is an effective
method for embracing a broad picture of the environment. The PESTLE analysis
must be carried out routinely and meticulously in order to be operational, There by
delivering a competitive advantage to the company.
Several more variables affect a crucial factor when it comes to any nation's progress.
All aspects and trades are linked together. PESTEL is by far the most effective way
to improve the growth of the nation. The curved view of a country is presented from
historical, current and future perspectives. (Rathore, n.d.)

Political Factor- The political factor plays a vital role, particularly throughout the
economy of the country, and the primary objective of the hospitality sector would be
to entice tourism industry, which might accommodate a variety of properties. Bearing
in view that perhaps the hospitality sector seems to have the backbone of the
government, and it is because of the assistance of the government that it
incorporates in a competitive environment, As we know, the UAE seems to have
become a tourist destination, and the UAE government is indeed promoting tourism
to a great extent, so the establishment of a hotel will be advantageous and favorable.
With the arrival of Expo 2020, the number of tourists traveling to the UAE are
particularly planning to acquire in the hospitality industry. We shall also keep in mind
that Political changes does have an immediate effect on the hotel industry as a result
of government, therefore any political change could lead to an adverse situation.
(Rathore, n.d.) (adamkasi, 2017)

Economical Factor- The UAE market has achieved a drastic shift in several
industries since about the implementation of VAT, along with the hotel industry, as a
big concern emerged for hotels due to the taxation of VAT put on free of charge
(FOC) access to food, bedrooms, gift products, as well as other strategic alliances by
the UAE. Hotels don't really receive any sum of money through FOC materials, but
they are paid VAT by UAE rule. For a long period of time, the United Arab Emirates
has indeed been known as a leading tourist and Destination for pleasure. Such
industries have undergone as well as extremely fast encounters over the past few
decades. Economic expansion has been a necessary element of the sustained

12
economic development of the U.A.E. Strategy for diversifying. Reduced Visa
Deposits end up making it even more business-friendly.

Social Factor- The hospitality sector is influenced by social movements. The results
could be just as profound. In recent years, market demand for accommodation has
begun to change. Their appetite has moved in pursuit of private housing. For the
recognizable stars in the hospitality and tourism industries.
There are certain social factors that influence the national hospitality sector as well.
A significant element is consumer preference. Both airlines and hotel brands stand to
inherit if market sentiment is favorable. In the UAE, during the holiday period,
numerous foreigners flock to the UAE to spend their vacations, and therefore hotel
has a fair likelihood of succeeding. UAE Most of the citizens fall into the age range of
25-54, and these folks are more inclined to stay in hotels or have a staycation.
(adamkasi, 2017) The visa alternatives would imply that McDonalds hotels can
employ a diverse group of people who may not be only skilled in this area, but it can
also offer the hotel a distinctive cultural element.

Technological Factors- UAE hotels are completely equipped with government IT

facilities such as provided free Wi-Fi, electronic conference infrastructure. Mobile
Communications and Technology. The latest technology is often accepted, engaged
and enforced by the UAE Government. Robotics, artificial intelligence and an
interconnected hotel management system are all introduced by the country. The
latest smart mall innovation launched in the UAE
Formed hotels in the UAE are open and cognizant of the new technologies leading to
high competition for Hotels (adamkasi, 2017)
Hotels are in the business of configuring their customer experience. Using AI, hotel
owners have seen exactly what the customer tends to prefer and adjust the guest
experience for the customers.
AI could also be used to ensure that the entire experience is smooth for the visitors.
The introduction of technological on hospitality & tourism is multi-dimensional,
varying from voice and facial recognition, robotic process automation and beacon
technology to virtual reality, blockchain and automaton concierge. (Sanu, 2017)

Legal Factors- Amongst the main legal issues surrounding the hospitality of the
UAE is Islamic Sharia law. This imposes limits on hotel entertainment initiatives as
well as a reduction in the use of alcoholic drinks in hotels. McHotel should abide by
these regulations if they choose to be built in the UAE. The highest contracted time
for an adult worker shall be 8 hours per day. Nevertheless, it may differ Delicately
relying on the tier of the company. The legal environment is crucial to the
development of the hotel industry. This component represents health and safety
legislation. The Hotel must abide by the law on age as well as the law
regarding discriminatory practices. The potential effect of legislative laws is having
an effect on the business industry. Individuals are fascinated to recreation-based
hotels that are legal as well as provide secure services, as long as the McDonald
hotel fulfils these requisites. It is suitable to establish a hotel in the UAE.
.

13
Environmental Factor- The UAE is among the world's most populous countries.
The proper blend between conventional religious culture and progressivism,
luxurious hotels, spectacular shopping centers, skyscrapers, perfectly clear beach
resorts, ancient ruins, indoor amusement parks and versatile gastronomy are among
some of the things that influence millions of tourists each year. However, the
government has made so quickly in a very brief span of time that it is now confronted
with certain environmental problems. Perpetual construction disturbance, invasive
species, carbon emissions, constrained water sources, overfishing, waste
production, pollution, land degradation and desertification have enormous
environmental impacts which makes it unfavorable to open up a hotel in UAE. The
success is conservation and it is also the same with hospitality. From handling
environmental impacts to waste disposal, hotels in the UAE seem to be doing their
job to preserve the ecosystem. the UAE Ministry urged the hospitality industry to
implement an AI scheme named Winnow Vision to protect the environment.

Final Analysis
What we conclude after the pestle analysis review is that setting up a hotel in the
UAE is feasible since most of the variables are favorable. With tourist promotion by
the state and improvements in the visa deposit, it is evident that most factors are
beneficial.
UAE demographics also suggest that most locals are younger folks who are often
happy for staycations and perhaps most probably stay in a hotel.
The highly equipped hotels with AI technology and the legal constraints in the UAE
are only a few unfavorable factors. That can be overcome by complying with the
rules and understanding the environment, this can be solved by adopting
technological strategies, like investing in AI Technologies and being well equipped
with the technological changes.

Question 2.

Value Chain Analysis

Value Chain Analysis is a model of thoroughly assessing the market exercises of an
organization to see if an organization can construct a competitive edge or
comparative benefit for itself. It is a range of processes carried out by a company to
generate value for its clients. (Anon., n.d.)
Value Chain Analysis is an observational structure that aims to assess business
operations that can create value and economic edge for a company. (Dudovskiy,
2016)

14
Primary Activities
 Inbound Logistics McDonalds have an extremely developed framework that
guarantees proper functioning of the Hotel, McDonalds hotel has fixed
suppliers for food and beverages, they have pre-defined arrangements with
vendors for all the services such as laundry, storage and inventory and
distribution as well as quality management. (Dudovskiy, 2016)

 Operations Modern hospitality relies on the use of technology for all forms of
activities. From Online Booking along with space availability for inventory
checks. UAE hotels have structures that are central to hotel operations.
Development and maintenance of services is one specific activity in which
workers will have to be fully trained with suitable instruments and have
drainage, mechanical and electrical issue maintenance skills.

 Outbound Logistics Hotels might be the way wherein the services and the
finished products are marketed and delivered to the multiple outlets and
guests.. A variety of strategic advantages are correlated with McHotel, such
as offering the highest quality of service, providing transportation benefits to
clients going out of the hotel. (Sharma, 2014)

 Marketing and Sales. The sales and marketing depend on the hotel's
contact mix. Distinctive ways on the coordinated implementation of
different aspects of the advertising communication combination Globally
hires more than 700 sales professionals around the world The McHotel
Worldwide business unit is charged with requesting reservations among
locals and tourists, tour operators and conferences. (Dudovskiy, 2016)

15
  Services McDonalds is committed to providing high-quality services to
customers, and has also delivered adequate training to their employees so
that they should properly serve consumers in meeting their needs.
High speed of provision of employees is the main competitive edge and
added benefit for McDonalds. Amongst the key factors of sustainable
strategic strengths for McHotel is the good level of services.  In more than
5 languages, McHotel customer service team representatives are
proficient.

Supporting Activities
 Firm Infrastructure Portrayed by the lengthy scheduling, quality assurance, external
relations, finance and accounting leadership team. It must be ensured that the
representatives of the management are well educated and modified, periodic auditing
and quality verification should be carried out, The leadership team ought to be
prepared to adjust and analysts must prepare fresh concepts to maximize profitability
and maintain stable relationships with government and companies

 Human Resource Management Staff members in the McHotel, specifically the

service team, are chosen extremely cautiously. Recruitment is conducted in
different fields, such as cooks, drivers, mechanics, repairmen, technicians,
auditors, designers, administrators, analysts, mosques imams, salon
attendants, gym fitness coaches, swimming Coaches, participants, money,
etc. Every hired individual are chosen to review actions
and tolerance, through several stages of recruitment, as the viciousness of
The Golden Arch Switzerland Operation Team contributed to its termination.
They are given proper feedback and instruction and, by inspiration, alleviate
stress.

 Technology Development In McHotel, it is very relevant since it is a steadily

expanding evolving industry where innovative innovations are required to
save time and work better. The most critical thing to consider is the Propriety
Management System, which seems to be the program for handling all
activities and exchanging all the details in full detail with all hotel departments
The invention and the apps are improvising the industry Maintaining the latest
electronic centers throughout the sector

 Procurement The takeover of the hotel could be the facilities offered to the visitors,
the house, and the amenities that will assist all operations to make the system quick,
easy and smooth. It is possible to use multiple kinds of necessary raw materials
in massive amounts. Negotiated from manufacturers including quality control
on all raw resources, a stable partnership with vendors that may be abroad or
in the UAE must always be established, recording the purchasing
arrangement of the system to prevent any fraud and exporting arrangement.

16
Conclusion
McHotel will be benefited as they have pre defined vendors which will ease the
process by saving time and money. It also has a competitive edge over other hotels
since they provide excellent facilities to their visitors. McHotel’s Communication mix
helps its marketing and sales. These hotels provide good services and training
resulting in excellent skills and knowledge to the employees so they can improve the
customer experience. Various stages of recruitment help in getting the best of the
best employees in the hotel. The technology development is another competitive
advantage over other hotels as McHotel to are advanced.

VRIO Analysis
VRIO is a framework for project management that shapes part of the larger
accessibility standards of the company. The appropriate management method that
any company commences with a strategic plan and proceeds through goals, internal
and external assessment, corporate strategy and strategy formulation.

VALUE Mchotel’s conception is built on the presumption that perhaps the business
will eventually grow internationally, with several outlets in many city areas, all of
which have their respective ethnic and cultural tastes which would inspire local
consumers to use their facilities as well as draw tourists seeking to explore the
cultural facets of the area.

RARITY The notion of an affordable yet luxury accommodation facility itself is a

rarity. And it’s absolutely unheard of for the hotel to be a 4 to 7-star valued one. It’ll
be recognized as an all-inclusive business with employees obtained from across all
corners of the world. The ultimate purpose of the hotel is to offer all the facilities
available to visitors in the most luxury hotel, including a gym, swimming pool, spa,
etc., at an attractive price for all people.

IMITABIITY When Mchotel releases for the very first time, the threat from rivalry may
be high,
There’s nothing like it. It is going will be the first of a kind to be implemented in the
UAE. As well as other companies would want to copy their business model as long
as it takes off and becomes profitable. More affordable models of their lodging will be
introduced by luxury hotel chains. In order to compete with Mchotels, certain hotels
will start increasing their offerings and discounts.

ORGANISED Modern hospitality relies on the use of technology for all forms of
activities. From Online Booking along with space availability for inventory checks.
UAE hotels have structures that are central to hotel operations. Development and
maintenance of services is one specific activity in which workers will have to be fully
trained with suitable instruments and have drainage, mechanical and electrical issue
maintenance skills.

17
Question 3

McKinsey’s 7S
In order to assess the organizations skillset, structure and capabilities we are
performing Mckinsey 7s Model.
It is a technique that identifies the organization structure of the aim is to look at
seven key internal parts: strategy, structure, systems, shared values, style, staff and
skills, to determine whether they have been efficiently coordinated and enable the
company to accomplish its strategic goals. (Jurevicius, 2012)

 Strategy Appropriate categorization by having a specific section of the

industry Distribution network leadership will efficiently nurture the facilities of
online partners by constantly watching the results of the various digital
services. And then, Most pertinently, price competition will ensure customers
choose Mchotels and obtain edge over rivals in the procedure. Efficacious
optimization by specific targeting The section of the economy

 Structure The certain hotel's actual structure relies mostly on chain of power.
This is alluded to as 'control span.' An increase efficiency of control ensures
that each and every unit report to the hotel's managing director. One with a
limited scope of control delegated ultimate control to managers,
superintendents and associate superintendents, and to personal department
heads, for every regular everyday problem. The narrower the hotel, the larger
the wide spans of control as the infrastructure region is on a smaller level, the
regular availability of the managing director might be. Bigger, multinational
hotels tend to use smaller control ranges which lead to efficient and effectively
resolve any concerns or grievances by the top leadership of that division as
the chief manager of the company may not always be on site.

18
 System Mchotels tries to maintain the most operational efficiency as a
particular entrant just coming into the market which would allow it to operate
at optimum efficiency. Every mechanism that goes between business
operations to administrative duties inside the hotel, and also the complicated
process
Inside the hotel, which includes the operations of many divisions, needs
committed staff and innovative creative IT. This requires Human
Resource and infrastructure to assure compliance. And even accounting. One
such model, called a property management system (PMS), might be able to
Promote the booking operation of a hotel, with front counter procedures,
housework Control and storage, as well as payment collection.

 Skills An employee who works in a hotel is required to have

untarnished communication skills and Integrity. HR is important for the
recruitment of people with stronger leadership abilities. Benefit and maintain
favorable results in terms of sales and enhanced margins. They should not
only have communication and management skills, but also be versatile in
multiple tasks, Staff can be expected to work throughout vacations. They
should be capable of adjusting to unexpected changes HR is essential to the
recruitment of certain persons whose skill sets can provide a stronger
positional advantage and deliver positive results in terms of market share and
higher profits.

 Style The way wherein the public can view Mchotels will have to vary in its
previous picture of a hotel providing a place with shoddy service and
incomprehensible space facilities. 'Luxury inside economics' would be the
latest and enhanced interpretation of McHotel. The personnel are going to be
structured formal and polite. The layout would be tidy, with a comfortable
reception and dining spaces for visitors. The atmosphere will focus mostly on
color theme of the iconic brand while adding darker hues to provide such a
feeling of tranquility and warmth.

 Shared Value The primary objective of McHotel would be 'for the people'. The
hotel however will follow five key fundamental beliefs: honesty, environment,
cooperation, integrity and creativity. Excellently workers working collectively
as a single team to produce the best outcomes would effectively convey
positive services and experiences delivered. Further to enhance customer
loyalty by creating new and innovative approaches.

 Staff The workers would be well educated and inclusive. Often, the
prosecutor
It assumes that organizational leaders will be necessary inside the Mchotels,
in addition to regular staff, to assign and direct each division as effectively as
possible. We have to have teamwork, problem-solving, and interpersonal
abilities. The HRM department must employ someone who has no prejudice
against any person and treat all their subordinates with utmost respect.

19
 Strategic Resources of a Hotel is Employees, Managers, Partners, Suppliers,
customers, Suppliers of funds, cash flow, raw materials, products and
systems.

Their strategic competencies are their skills and knowledge to gaining user
experience skills, innovating, ability to raising funds, ways to achieving
efficiency and productivity.

The strategic resource and competencies sums up the strategic capabilities of

McHotel

Strengths and Weakness of Internal Capabilities, Structure and Skillset

The Strategic Capabilities shows that the staff of the hotel are well equipped with all
the resources, skills and knowledge required which is a strength for the business.

The Structure of the business(control span) ensures that all the problems be
resolved quickly and smoothly, which is a favorable factor but the limited scope of
control delegated might be a weakness, as the superior may also want to spend time
on other areas as well, and the limited delegation may restrict and restrain the
abilities of the superior

The employees with Integrity as well as excellent communication and management

skills could be advantageous, but as mentioned earlier, they are expected to adjust
towards the uncertainties of their job which might bring a resistance from the
employees and workers which will be a frailty.

Question 4.

Porter’s five forces is a concept which recognizes as well as evaluates Five

competitive factions which influence each industrial sector and assist ascertain the
advantages and disadvantages of the business Sector. Five Forces assessment is
often utilized to recognize the nature of the business to evaluate the company’s
structure. (staff, 2020)

20
The threat of the new entrance:-
As this is considered to be a new venture into the UAE market, this threat is high. As
once it takes off several new players will come in as competition. Existing brands will
bring out affordable branches to compete with the Mchotels. Other barriers to entry
for newcomers can be demands for funds during entry and access to local and
international distribution networks another entry barrier for Mchotels is that a
substantial amount of investment is required to build the infrastructure. Joining and
keeping pace with the already proven hotels is undoubtedly a daunting challenge for
a potential competitor, since they have an advantage in launching innovative
techniques.

Rivalry amongst existing firms: There is assuredly a fairly strong competition

among competing firms including such Burj Al Arab, Sheraton Dubai Creek, etc..
This is therefore probably the biggest threat to a new entry, as brand loyalty is
among the key elements throughout the hospitality sector. Clients probably choose
to stay at the hotels they often used visit, so until something special is provided by
another hotel. This can therefore be regarded a significant threat, because even if a
newcomer is allowed to penetrate the industry, it would be very challenging for it to
sustain in a very challenging environment. A further significant element is the
influence of VAT.

Threat of Substitutes: This significant threat is one of the main variables that
increase rivalry in the hospitality sector. Alternatives serve the customers and are
probably cheaper or more convenient to use. Thus, when a significant threat of
competitors are readily a This significant threat is one of the main variables that
increase rivalry in the hospitality sector. Alternatives serve the customers and are
probably cheaper or more convenient to use. Thus, when a significant threat of
competitors are readily accessible in this case, the threat of substitute products or
services is rather limited, since the alternatives for hotels and restaurants could not
be high. The options will once again be a number of hotels with various
specializations or factors that allow it be different from the others.

The bargaining power of customers (buyers): The threat from clients is

considered to be massive and continues to increase as users can access many
choices from economical to glamorous. due to new contemporary technology that
allows tourists to retain hotel rooms from any part of the world, individuals are no
longer confined to scouring for accommodation near airports. As a result clients
possess elevated bargaining power to them, since there are a huge number of hotels
with comparable services offered. Customers may switch to some other hotel
anytime they are dissatisfied with the hotel.

Bargaining Power of Suppliers: Subject to a risk of higher costs, restrict allocation

of funds and/or lower the quality of the product, vendors may use their negotiating
power, however, the number of suppliers supplying hotel supplies is huge. Mchotels
will often choose amongst manufacturers and distributors. Suppliers' costs are
typically regulated at comparable prices. And since vendors also rely on hotels for
profit, along with the fact that hotels purchase bulk goods, the Subject to a risk of
higher costs, restrict allocation of funds and/or lower the quality of the product,
vendors may use their negotiating power, however, the number of suppliers

21
supplying hotel supplies is huge. Mchotels will often choose amongst manufacturers
and distributors. Suppliers' costs are typically regulated at comparable prices. And
since vendors also rely on hotels for profit, along with the fact that hotels purchase
bulk goods, the bargaining power of suppliers is low

Final Analysis
With the exception of the negotiating power of the manufacturers, all the other
variables are unfavorable, new tactics must be implemented and adopted to thrive
and expand against the rivals.

Solution/ New Strategy

In order to solve the threat of entry McHotel can keep the hotel’s Prices low and
guests’ expectations high. Aggressively promoting the brand with hopes of Creating
differentiation and loyalty from customers, and in turn, block any attempts of
Newcomers from entering
About the issue with funding, Mchotels need to be properly funded by the parent
company McDonald’s as well as forming lucrative partnerships with distributors.This
problem is thus solved by the involvement and funding of McDonald’s.
As there are many alternatives, the hotel industry should be cautious to not Raise
premiums at the possibility of losing its customer base.
To reduce the bargaining power of buyersMchotels can combat this by developing
loyalty programs to compensate visitors for choosing to stay at their hotel, and for
using the facilities provided by their hotel.

Question 5.

Porter’s Generic Strategies

The Porter Generic Strategies framework offers 3 main possible Decisions for
companies to promote market edge. Which include: Cost Leadership, Differentiation
and Focus. (Anon., n.d.)

22
The hotel industry, includes companies in the hotel, lodging, entertainment and
transportation sectors is facing intense rivalry. Therefore, if they are to achieve or
maintain a competitive edge, the methods that hotels use in making decisions ought
to be carefully considered.

 Cost Leadership Strategy in the Hospitality Economy In order to become the

least expensive producer of a product in a sector, a cost leader strategy relies
on a company preparing and monitoring its profitmaking activities. A
successful cost management strategy could be based on a number of
management processes. functions. Mchotels can exercise appropriate
leadership process to reduce expenses by using AI hospitality management
software (HMS).
Outsourcing might well play a significant role in lowering Mchotel’s hard costs,
particularly when used in areas such as landscaping, payroll, airport shuttle,
valet services, or even Mchotel’s website programming.

 Differentiation Strategy A differentiated management is centered on

convincing clients that the service would be in any way beneficial to that
provided by competitors. The concentrate in differentiation strategies is on
generating value through individuality, as compared to the low cost. This will
convince consumers that Mchotel’s facilities and services are preferable to
those provided by their rivals. Service innovations, novel and attractive
advertising, strong supplier relationships that result in superior services for
Mchotels. The key to victory in this tactic is that customers must be prepared
to pay more for services than Mchotels did  To make it.

 Focus strategy inside the hospitality sector is targeted not at the overall
industry, but at a part of the population for a service. Companies
implementing focus strategies must be able to determine their target group
and further analyze and satisfy the requirements and expectations of
consumers within this sector than any rival. (Bordean, n.d.) In implementing
focus strategies, Mchotels must be able to recognize its target segment,
evaluate and fulfill the needs and wants of customers in the section, with a
much more profitable portfolio compared to Mchotels' competitors. Focus
strategies can be premised on distinction or lower costs. Mchotels can
deliberately target clients of Millennial and Generation Z who commute to the
UAE for leisure trips and need affordable accommodation.

Ansolff Matrix
The Ansoff matrix, also called the product/market creation network, is indeed a
framework utilized among companies to assess and schedule their strategic
initiatives. The graph represents four strategies which could be implemented to
assist the business develop and further evaluates the risks with each strategic plan.
(Anon., n.d.)

23
Market Penetration pertains to the practice of sale, in existing markets, current
products It is amongst the effective methods for all the hotel industry to boost profits.
There are several diverse approaches in this regard are utilized. The first approach
that the company wants is to give returning consumers discounts. Different hotels
sell small discounts to customers who come back to use their facilities.
Market development is the process of marketing established goods on new
markets. Launching new outlets has been the core tactic used by hotel sector. In
developing Nations, continental expansion allows businesses to attract the new
clients. A further tactic which can be undertaken by such companies in the industry
would be to accommodate Towards new opportunities in these regions they already
serve by providing additional services at various prices. Like Super-elegant suites
provided by hotels & restaurants aimed at the upper strata of people.
Product Development is When Innovative products are launched by the company,
based on the development of brands in its existing markets. The hospitality industry
works on brand development in various ways. Hotels can provide bedrooms with
amenities for development that have not been previously offered. From occasionally,
different facilities currently provided are often upgraded to guarantee they are now at
their finest.
Diversification is a technique to encourage new goods in emerging businesses.
Through growing and preparing their own foods, conducting their own repairs,
providing transport services, introducing tour packages to their visit, and so forth, the
hotel industry will demonstrate compliance. Vertical diversification offers the
employees a tighter grip over the production process. (Khankhasi, 2020)

Final Analysis/Strategy
As Mchotels is a new company entering the ever-growing UAE hospitality market
with a view to penetration and growth, competitive pricing strategies, specialized
advertising, sales and cross-promotions and the introduction of loyalty schemes. If
successful, secure dominance Growth markets are becoming possible. Maintaining
and potentially increasing market share may also be achieved.

24
Sinceas been in the willing to embrace market development through the
establishment of a McHotel in the United Arab Emirates, Product development is yet
another tactic which McHotel must use. McHotel should offer unique facilities that will
entice folks as well as distinguish McHotel from its rivals.

Bowman’s Strategy Clock

It is a framework which illustrates alternatives for strategy formulation – i.e. how an
item must be placed to offer this the most profitable stance on the industry The intent
of Bowman’s Strategic Clock is to demonstrate that a business will have a variety of
alternatives for placing a two-dimensional commodity: price and perceived value.
(Anon., n.d.)

Hybrid
A hybrid role, as the name implies, includes certain element of cheap price (in
relation to rivalry Yet this operation is also very different. By incorporating a
reasonable price and adequate product differentiation, the purpose is to motivate
customers there is better value added.

STRATEGY
It can be a very successful marketing campaign, specifically if the value added
included is provided. This stance is best suited to Mchotels when it is first developed.
As it includes a reasonable price (relative to current market conditions) and some
product differentiation. Clients should be convinced that Mchotels can deliver both a
high value and an inventive product offering. By offering a multidimensional service
quality where individuals are treated in a unique way.

25
Customized luxuries such as activity bookings, tours, even babysitting sessions
while converting a portion of their property to meet important social events and
special moments by assigning a ballroom, conference halls, etc.

Differentiation 
A differentiated strategy's objective is to obtain the highest level of perceived added
value to customers. In this, strategy, marketing performs a crucial part, and so does
quality of the product.

STRATEGY
Perhaps an elevated item with good brand value and retention is ideally necessary to
deliver the price levels and added value required by a differentiation strategy. As
once hotel is fully operational, a more lavish model of its brand can be opened,
where guests are provided products of the greatest level of perceived value at
relative prices. This implies that accommodation will be a little more expensive, but
key differentiation strategies are embraced to ensure that the customers do not feel
let down.

Focused Differentiation 
This method seeks to position a product at the highest price, whereby, due to the
obvious Consumers buy the commodity for a high perceived value 

STRATEGY
Through highly focused categorization, marketing and delivery, this is the advertising
campaign adopted by luxury brands, aim to accomplish higher price. Completed
successfully, this approach can lead to increased profitability, However the plan
could only be sustained throughout the long term by the very finest brands. This
proposed action could only be implemented when the Mchotels have been firmly
proven and are seeking to grow outwards. Mchotels will commence aligning their
perform at the best price level and customers will purchase them because of their
apparent high value. This applies to a relatively small subset of consumers.

Although not as competitive since it is the first McHotel in the UAE, it is undoubtedly
a well-known company, so the position that would be acquired by McHotel is
Differentiation and Focused Differentiation (Position 4 and 5)

Question 6.
The highly anticipated Expo 2020 is a huge stimulator for the expansion of the hotel
industry and through the use of all the multiple business frameworks and models
(PESTLE, Value Chain Analysis, Ansolff Matrix, etc.) a fuller knowledge is acquired
in the UAE global market and, after this, some schemes are formulated to confirm
that Mchotels are eligible to operate efficiently and presumably

Developing Strategy

26
 BASIS OF CHOICE

The McHotel must pursue Focus Strategy ALTERNATIVE DIRECTION

because a strategy of objective
differentiation since they aim to offer
Although McHotel was prepared to grow ALTERNATIVE METHOD
their clients unique facilities. Services and
the business by establishing a McHotel in
products are designed for the economy's
the UAE, product development becomes
premium price categories. McHotel Since McHotel is a New Entrant, A new
perhaps a further strategy that should be
participated in a plan for focal competitor in the UAE hospitality sector is
used by McHotel. McHotel will have
importance. It is a strategy that is best entered through a
exclusive services which might draw
explicitly embraced by certain hotels that
people and also differentiate McHotel joint venture or acquisition of a well-
draw business people in their market,
from its competitors. known brand. Conversely, in order to
taking into account the climate of the
UAE. This section would enable Mchotels to succeed,
boost the ability of the current company the newcomer may emerge up with new
Specficaly, this approach targets at a
for new products or services and and innovative concept that has not yet
business unit instead than the business
demonstrations. Doing so would extend been enforced by the established players.
overall. In contrast to Mchotels' rivals,
the monetary policy performance of the
Mchotels implementing focus strategies McHotel must Collaborate with other
company. In order to reach a broader
must be able to define their target Hotel in order to lure more customers.
audience, Mchotels will grow and
segment, determine and satisfy the needs McHotel can make joint development
introduce new offerings. Develop a global
and expectations of consumers inside the alliances to expand their business, and
schedule of events which will include
section, with a more attractive portfolio. promote.
visitors and permit them to encounter a
It is possible to base emphasis
variety of cultural ancestries from around
approaches on distinction or the lowest
the world. Give helicopter trips to clients
cost. There is significant debate on
who wish to fly from the airport to hotel
whether a hotel should have both
in style. 
because, without any sort of distinction, it
is hard to persuade a specific segment of
visitors and emphasize the best price.

27
HR Strategy

It is claimed that by adjusting the budget and modifying the expenditures may have
enhanced the image and overall survival of the hotels by the absence of well skilled and
qualified workforce could be traced to budgetary constraints. By employing personnel with
expertise and awareness of the hotel industry, Mchotel would invest that money on staff.
Often, a compulsory background check must occur prior recruiting any new workers.
Enforcing bonus schemes for workers. When workers perform more than their tasks, gift
cards or a complimentary night's stay at the hotel with their families would be granted to
them. This would raise morale and encourage everyone else to enhance productivity
Promoting friendly department contests and team building events will lead to cohesion

Cost strategy:

Since Mchotels are structured to be cost-effective and all about the interaction instead of the
visit, shuttle automobiles could be designed in relation to the identity of the parent brand and
during special events, with hotel data conveyed to consumers on board, fully free of charge.
Blows on the expenditure would've been minimized by eliminating the flexible beds and
upgrading them with a more conventional style.

Marketing strategy:

Use digital sites more efficiently through more digital marketing, including such videos, blogs
and social media posts, which do not aggressively and explicitly increase the business but
are intended to engage attention in the hotel. Most tourists (75 per cent) begin using internet
search engines for lodgings, it is essential to use important hashtags on the Mchotel website
and to use advertisements for promotion.

Expansion strategy:

Once Mchotels is developed in Dubai, a plethora of new section growth and shareholders
will enable the brand to diversify.  Newly developed franchises could be created under the
umbrella of Mchotel like a more lavish 7-star hotel or a cost-conscious hotel apartment. The
choice of a politically stable economy and a full examination of other economies and regional
composition will be essential for international expansion. Liaisons will have to be recruited to
understand the language of where the new phase would be developed and serve as a link
between both the branches. By attaining autonomous boutique hotels in the UAE, Mchotels
can obtain a wider customer foundation and exposure. Boutique hotels are alluring to
younger generations who favor apartments with a quirky touch. They are usually a small
layout space, and they take a more personalized touch to each customer. An altogether
fresh section of customers could be aimed by leveraging into this industry.

28
Bibliography
adamkasi, 2017. pestel analysis of hotel industry. [Online]
Available at: https://www.porteranalysis.com/pestel-analysis-of-hotel-industry/
[Accessed Wednesday January 2021].

Anon., 2005. Golden Arch Hotel: McDonald's Adventure in the Hotel Industry. McDonald's
Adventure in the Hotel Industry, p. 16.

Anon., n.d. [Online]

Available at: https://www.mindtools.com/pages/article/newSTR_82.htm#:~:text=According%20to
%20Porter's%20Generic%20Strategies,Cost%20Leadership%2C%20Differentiation%20and
%20Focus.&text=All%20of%20this%20is%20achieved,those%20of%20the%20organization's
%20competitors
[Accessed 2021].

Anon., n.d. [Online]

Available at: https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/

Anon., n.d. [Online]

Available at: https://www.tutor2u.net/business/reference/strategic-positioning-bowmans-strategy-
clock
[Accessed 2021].

Anon., n.d. [Online]

Available at: https://www.tutor2u.net/business/reference/strategic-positioning-bowmans-strategy-
clock#:~:text=Bowman's%20Strategic%20Clock%20is%20a,competitive%20position%20in%20the
%20market.&text=Bowman's%20Strategy%20Clock%20is%20described,study%20notes%20that
%20foll
[Accessed 2021].

Anon., n.d. [Online]

Available at: https://www.ukessays.com/essays/tourism/the-hotel-industry-of-united-arab-
emirates-tourism-essay.php

Anon., n.d. Value chain analyis. [Online]

Available at: http://b1ca250e5ed661ccf2f1-
da4c182123f5956a3d22aa43eb816232.r10.cf1.rackcdn.com/contentItem-13504036-128747200-
vgxsqn05s6qze-or.pdf
[Accessed monday january 2021].

Anon., n.d. What is Value Chain Analysis. [Online]

Available at: https://www.visual-paradigm.com/guide/strategic-analysis/what-is-value-chain-
analysis/

Bordean, O. N., n.d. The use of michael porter's generic starategies. [Online]
Available at:
https://www.researchgate.net/publication/288913744_The_Use_of_Michael_Porter's_Generic_Stra
tegies_in_the_Romanian_Hotel_Industry
[Accessed 2021].

Britannica, T. E. o. E., 2005. McDonald's. McDonald's Corporation, march.

29
Dudovskiy, J., 2016. McDonald's Value Chain Analysis. [Online]
Available at: https://research-methodology.net/mcdonalds-value-chain-analysis/
[Accessed Monday January 2021].

Jurevicius, O., 2012. Mckinsey's 7s Model. [Online]

Available at: https://strategicmanagementinsight.com/tools/mckinsey-7s-model-framework.html
[Accessed 2021].

Khankhasi, A., 2020. Ansolff Matrix of Hospitality Industry. [Online]

Available at: https://ansoffs.com/ansoff-matrix-hospitality-industry/
[Accessed 2021].

MEYER, P., 2019. McDonald’s Mission Statement & Vision Statement (An Analysis). [Online]
Available at: http://panmore.com/mcdonalds-vision-statement-mission-statement-analysis
[Accessed Tuesday January 2021].

O'Brien, T., 2001. First McDonalds hotel opens in Switzerland. [Online]

Available at: https://www.swissinfo.ch/eng/first-mcdonalds-hotel-opens-in-switzerland/1941018
[Accessed Tuesday January 2021].

Rathore, J. S., n.d. How has PESTLE factors affecting hospitality industry. [Online]
Available at:
https://www.academia.edu/10122060/How_has_PESTLE_factors_affected_Hospitality_Industry
[Accessed Wednesday January 2021].

Sanu, M., 2017. Hotels in UAE making excellent use of AI technology. [Online]
Available at: https://blog.winnowsolutions.com/5-hotels-in-the-uae-making-excellent-use-of-ai-
technology
[Accessed 2021 January 2021].

Sharma, D., 2014. Value Chain analysis. [Online]

Available at: https://www.slideshare.net/dipeshsharma9699/value-chain-analysis-33659506
[Accessed january 2021].

staff, I., 2020. Porter's 5 forces. [Online]

Available at: https://www.investopedia.com/terms/p/porter.asp
[Accessed 2021].

30