IntroductionThe impact of the business environment on IHG's current strategy is vast and requires constant attention. This means that for IHG, in order to keep up with current market developments, its management is constantly committed to measuring and readjusting its strategies and market effectiveness. Using PEST, SWOT and TOWS analysis, this paper seeks to shed light on IHG's position today and its competitiveness against its peers in relation to its current strategy.IHG Pest AnalysisIHG is constantly exposed to risks resulting adverse global economic and political impacts. from different financial markets that are inherently affected by inflation, recessions and credit fluctuations that could potentially reduce earnings and revenues. In times of recession, there is less business and leisure travel between different countries, which negatively affects rates and room occupancy and therefore the group's overall revenue. In politically affected economies, operations may be affected, which could affect property values. This in turn can make it more difficult to manage the large hotel group, resulting in the inability to obtain franchises, retain or enter into management agreements. Bowie, D. & Buttle, F. (2011) argue that policy is closely linked to economic responses. this is seen when politicians in different countries decide on regulatory policies preventing the group from selling its investments in certain countries. During past legislative changes, tax rates have periodically reduced projected profits. However, most important to IHG are its customers, with the company's brand reputation being its foundation. Thus, a failure in sustaining the brand can negatively affect the value of the bra...... middle of paper ......e, D. & Buttle, F. (2011). Principles and practices of hotel marketing. Amsterdam Boston: Elsevier Butterworth-Heinemann. Enz, C. (2010). Concepts and cases of strategic management of the hotel industry. Hoboken, NJ: John Wiley & Sons. Grimm, C., Lee, H. and Smith, K. (2006). Strategy as action, competitive dynamics and competitive advantage. New York: Oxford University Press. Hurwitz, J., Bloor, R., Kaufman, M., and Halper, F. (2010). Service Oriented Architecture (SOA) for Dummies. Chichester: John Wiley & Sons, Inc. Rasmussen, M. (2011). International double taxation. Alphen aan den Rijn Frederick, MD: Kluwer Law International Sold and distributed in North, Central and South America by Aspen Publishers. Sturman, M., Corgel, J. and Verma, R. (2011). The Cornell School of Hotel Administration on cutting-edge hospitality thinking and practice. Hoboken, New Jersey: John Wiley and Sons