Written Assignment The focus of the research question is to : Critically evaluate the usefulness of three strategic analysis/planning tools that may be used to help TH or E organisations plan for...

STRATEGIC MANAGEMENT
CRITICAL ASSESSMENT OF STRATEGIC ANALYTICAL TOOLS IN TH&E ORGANISATIONS
Table of Contents
Introduction    3
Critically Analysing the Three Chosen Analytical Tools    3
SWOT Analysis    3
PESTEL Analysis    4
Porter’s Five Forces Analysis    5
Evaluating the Effectiveness or Ineffectiveness of Present Strategies of the Organisations in their Internal and External Environment within THE Sector    6
SWOT Analysis for Assessing THE Sector in UK    6
PESTEL Analysis for Assessing THE Sector in UK    7
Porter’s Five Forces Analysis of THE Sector in UK    8
Recommendations for Future Development Strategies of THE Organisations    9
Conclusion    10
References    11
Introduction
The tourism, hospitality and events (THE) sector in the context of the modern globalised perception and increasing number of global villagers has become an essential part of all national economies. The people travelling with and beyond national borders have been one of the major sources of foreign cu
ency inflow, therefore, assessment of a country’s THE sector is worth taking consideration. United Kingdom (UK) had always been a very popular tourist destination for its historical and natural beauty offerings. Based on the high popularity in the global travellers’ choice, a strong THE industry has developed over decades.
However, in recent times the industry is not doing great in terms of growth and revenue earning as UK has left the European Union in 2017 (BBC, 2018). Despite the slowdown in growth, THE industry is UK is growing, attaining lower growth rates. It is found that nearly 7000 new hotels have been made and the growth in the industry has been 2.4% in 2018. Despite the lower growth rate, the highest risk the entire sector is facing is the potential threat of cyber-attack, which, the managers of major hotels are not aware. Despite the slowdown of economy in UK, the lower value of Pound is driving more tourists to travel to UK (PCW, 2018).
Critically Analysing the Three Chosen Analytical Tools
The strategic tools are meant for collecting, analysing and providing data that are useful for a particular industry in a market in terms of offering better profiting potential, accurate strategy implementations and most importantly proper assessment of the internal as well as external conditions.
SWOT Analysis
SWOT analysis is a strategic analysis tool that offers insight to organisational internals and shows the areas of concern as well as the areas of advantage. As mentioned by Ervural et al. (2018), the SWOT analysis, which is formulated of the initials of four major aspects of an organisation or industry, namely – strengths, weaknesses, opportunities and threats, which collectively help in assessing the risk present in the market. However, Liu and Walsh (2018) argued that SWOT analysis is not required, as the management of an organisation remains aware about the whereabouts of the organisation as they collect the data first-hand and they process them. However, the view cannot be accepted that SWOT analysis is not required, as it positions the positives and weaknesses along with opportunities and threats of the external market, which makes the evaluation of chosen organisation or sector effective.
Firstly, SWOT analysis identifies and lists the strengths of the concerned organisation or sector. It has to consider that the strengths are evaluated in the context of the performance of the organisation and the gathered feedback from the market, instead of relying on organisational claims. As mentioned by Leiber et al. (2018), from the identified strengths of a chosen organisation or sector, the level of self-assessment conducted on the part of the organisational management is also hinted. On the other hand, the identification of the organisational weaknesses is done through market feedbacks and organisational internal financial reports. The identification of the weaknesses, as suggested by Adem et al. (2018), gives the organisation the ability to rectify them and improve. SWOT analysis also identifies the opportunities the chosen organisation or sector has in relation to the unexplored areas or opportunities that are attainable, yet not attained. Lastly, the identification of threats in the market helps organisations to understand the degree of competition they would face, leading to accurate strategies implementation.
PESTEL Analysis
The term, ‘PESTEL’ is formed of five external factors, that regulate the nature of the market and passively affect the success of business organisations. As mentioned by Schwarzmann et al. (2018), the PESTEL analysis offers nature of the external factors, namely – political, economic, socio-cultural, technological, environmental and lastly legal, assessing a chosen market condition comprehensive and complete.
Firstly, the political factors assessment gives a hint at the market stability to an organisation or sector. The political nature of a market, as identified by Kim et al. (2018), determines fluctuations of prices and demand, making the business organisations aware about the level of uncertainties. The economic factor hints at the buying power of the customers and the potential for earning profit for the business. It is worth noticing that and strong economy hints at higher buying power of the customers, while a weak economy hints at unstable market conditions, volatile political policies and more risk in the market for a business organisation or sector.
Thirdly, the socio-cultural aspect offered in the PESTEL analysis offers an insight into the nature of the customers in the chosen market and hint at their probable buying behaviour. The socio-cultural aspect also hint at cultural sentiment, the inclination towards advertising contents, which makes the strategizing and marketing easy and effective. Fourthly, technology as a factor also offers the chances of growth, business set up and potential of manufacturing cost reduction in a particular market. A lack of technological availability, as mentioned by Nicolae (2018), suggests that business expansion in the chosen market is difficult. In case of considering environment as a factor, the impact of environment on working conditions is implied. Lastly, the legal factor helps in assessing the market standards for a particular product or service, and based on the legal complexity organisations decide their choice of entering the market.
Porter’s Five Forces Analysis
The Porter’s Five Forces Model is also an effective tool that offers in depth understanding of internal as well as external aspects that affect the profiting potential an organisation or sector have. The five forces identified by Porter are – competition generated rivals in the market, power of the suppliers in the market, the power of the customers in terms of choice as well as economic strength, the threat of substitute of product or services sold by a particular company or sector and lastly, the threat of the new entrants in the market.
Firstly, as noted by Vargha (2018), assessing the degree of competition from the rivalry...