Executive Summary The following comprehensive strategic plan focuses on the Intercontinental Hotel Group (IHG). Recommend the board of directors to adopt a diversification strategy in order to increase profitability and grow its presence in globally and emerging markets. This paper will further evaluate the company strategic direction with the mission, vision statement and corporate social responsibility. Follow with a SWOT analysis to identify the internal and external situation, financial ratios are used to determine the company's financial health. Finally, provide possible strategic alternatives with recommendation and strategic implementation plan.

Overview InterContinental Hotel Group (IHG) is an international hotels group …show more content…

This brand fulfills the demand for healthy travelers by uniquely providing choices for traveler’s wellness needs in the areas of exercise, food, work and rest (IHG Annual report 2011). Additionally, its re-launch of its Holiday Inn Express brand focused on quality and consistency for a better customer experience shows the company’s focus to improving its brands. IHG is positioning itself to benefit from enhanced customer service and their demand for specialty services. IHG’s diversified geographical presence reduces risks associated with operating in some particular regions due to political unrest, economic conditions as well as demand fluctuations. IHG is taking advantage of potential growth opportunities that other regions offer and is aggressively expanding in these emerging markets such as China and India. The rapid growth in these new markets is significant comparing to traditional markets such as the European countries, which is experiencing economic and political challenges affecting hospitality business. IHG global systems and scale is also its strength with it "commanding leadership positions in 13 of the top 20 markets around the world accounting for over 80% of global lodging spend" (IHG Annual report 2011). IHG is strategically positioned to benefit from the market segments and nature of travel in the regions. For example, the largest segment in the US is the midscale hotel, Holiday Inn and Holiday Inn Express brand are the largest in this segment.