Business Process of Lantern Hotel

Running head: HOTEL BUSINESS
HOTEL BUSINESS
Name of the student:
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HOTEL BUSINESS1
Introduction:
The aim of this position report is to discuss current situation of hospitality industry in
Australia. In this particular report the Business Process of Lantern Hotel will be analysed which
is a 4.5 star hotel headquartered in Sydney (Lanternhotels.com.au 2020). In order to understand
the external environment of Australia porter's five forces analysis and PESTLE analysis will be
done so that the company gets proper idea of the changing situation in the hospitality industry of
Australia. Based on the analysis of these two techniques recommendation will be provided so
that Lantern Hotels can transform its weaknesses into strengths and grab all the opportunities
undermining threats.
PESTLE analysis:
The PESTEL analysis of Australia has identified critical impact of macro environment
factors. These include political economic, social, technological, legal and environmental. All of
these factors manipulate a company that to operate successfully or to face threats to lose the
competition (Achinas et al., 2019).
Political factors:
The political factors of Australia is somewhat supportive of business and allow the
companies operate successfully in any part of this country. Transparency in the political parties
lead to reduction of corruption and effective legislation. The hotels here get support from the
government as tourism is one of the most important sectors invested by the government. Proper
maintenance of the tourist spots and transportation along with proper infrastructure has supported
this industry to flourish in Australia (Ma et al., 2016). Therefore political system has led the
hotel chains like Lantern hotel to operate successfully.

HOTEL BUSINESS2
Economic factors:
The GDP rate of this country is constantly growing therefore it has become a choice for
the investors of every kind of business. This ranks 13th largest economy in the world therefore
the buying capacity of the clients is high in terms of both the domestic as well as International
tourists. Companies also use Australia to be headquarter for foreign companies especially in case
of Asian operation. This is due to the fact that Australia has become a low cost location for
business relocation till date (Ban & Ramsaran, 2017). This is why the economic situation can
help this company to expand its business in all over Australia but the threat of economic
recession is also high for which the organization needs to take needed precautions.
Social factors:
Australia has been a home for highly skilled labours and professionals of every kind this
is the reason why many of the international companies have chosen Australia to be operational
centre in case of doing business in the Eastern part of the globe (Australia, 2020). Australia has
accepted cultural diversity in such a way that is supportive of tourism business. in addition to this
the domestic tourists have proper understanding of quality which allow the hotel chains to offer
the best quality service to both Australian as well as foreign tourists.
Legal factors:
The legal system of Australia is robust therefore proper policies associated with export
import and corporate taxes align with most of the Western countries. Many of the European and
American hotel chains have entered Australian hospitality sector because of this transparent and
supportive legal system.
Technological factors: