Analyzing the Impacts of Macro and Micro Environment on Business Operations

This project analyzes the optimistic and pessimistic impacts of macro environment over business operations and evaluates the internal and external surroundings for identifying its capabilities to restrict controllable and uncontrollable risk.

Unit – 1
Business
And
The
Business
Environment

Table of Contents
INTRODUCTION......................................................................................................................3
PART – A (PRESENTATION).................................................................................................3
TASK 1......................................................................................................................................3
P1. Covered in PPT................................................................................................................3
P2. Covered in PPT................................................................................................................3
TASK 2......................................................................................................................................3
P3. Covered in PPT................................................................................................................3
PART – B (WRITTEN REPORT).............................................................................................3
TASK 3......................................................................................................................................3
P4. Analyse the optimistic and pessimistic impacts of macro environment over business
operations...............................................................................................................................3
TASK 4......................................................................................................................................5
P5. Evaluate the intrinsic and extrinsic analysis for identifying potential power and weak
spots........................................................................................................................................5
P6. Determine the strengths and weaknesses that interrelate with external factors...............5
CONCLUSION..........................................................................................................................6
REFERENCES...........................................................................................................................7

INTRODUCTION
The managers of an organisation analyse intrinsic and extrinsic environment in order
to increase its aggressive strategies for competing with opponents. It is most important for
managers to minimise its weak spots and coercion by maximising the potential power and
prospect. This creates opportunity to develop and expand business for being stable at
competitive market (Awang, Ismail and Rahman, 2017). In this project Marriott Hotel has
been selected that is American multinational hospitality industry and franchise broad
portfolio at United States. This project analyses the optimistic and pessimistic impacts of
macro environment over business operations. It further evaluates the internal and external
surroundings for identifying its capabilities to restrict controllable and uncontrollable risk.
Additionally, it determines the strengths and weaknesses that interrelate with exterior factors
of business environment.
PART – A (PRESENTATION)
TASK 1
P1. Covered in PPT
P2. Covered in PPT
TASK 2
P3. Covered in PPT
PART – B (WRITTEN REPORT)
TASK 3
P4. Analyse the optimistic and pessimistic impacts of macro environment over
business operations
Macro Environment:- The managers of Marriott International examines macro
environment for analysing the favourable and unfavourable affects over business operations
(Berg, 2018). It is necessary for managers to determine various aspects that may positively or
negatively impact the stability of organisation in perfect competition market.
PESTLE Analysis for Marriott International:- Marriott International manager aims
to implement this framework for analysing the adverse impact of these external factors that

creates threats for organisation. The managers further take protective measures to minimise
these uncontrollable risk for sustaining at global marketplace.
 Political factor of Marriott International:- The company emphasise on political
factor by analysing stability for government of United Kingdom. The directors are
highly optimistic with the favourable effects of government as it remains stable for
longer period (Garbarino, 2017). This creates opportunity for company to follow their
regular strategic procedure continuously that leads to achieve target efficiently. The
managers of Marriott International further face challenge from its pessimistic impact
as the government ban trade restriction which diminish in exchange of export and
import.
 Economical factor of Marriott International:- The managers of hospitality industry
is positively impacted as customers are highly satisfied with qualitative services that
encourage them to book accommodation at inflation. The managers are negatively
impacted as people aims to postpone their plan for spending vacation at hotels and
resorts due to inflation which creates decrease in sale and profits.
 Social factor of Marriott International:- This factor creates optimistic affect for
managers in hospitality industry by enlarging its services at broad level that increase
customers support and loyalty through selling at low cost (Hershkovitz, 2019). The
managers of Marriott International face challenge from pessimistic impact of social
aspect that leads end-users to bargain for consuming qualitative services at least-cost
effective prices.
 Technological factor of Marriott International:- The managers of this hotel are
positively impacted by technological factor that leads them to adopt advanced
technology that results in stability of industry. The managers are negatively impacted
as the adoption of new technology cost high which result in unbalancing of estimated
expenditure and also become obsolete in future period.
 Legal factor of Marriott International:- The managers of Marriott International are
optimistic as they follow the legal legislations imposed by government which
motivates workforce to give their best efforts for gaining performance appraisals. The
managers are pessimistic as they are unable to follow all the lawful obligations
imposed by government of United Kingdom which creates threat or liable in front of
its target market with its bad image and reputation.
 Environmental factor of Marriott International:- The managers of Marriott
International are favourably affected by this environmental factor that aims to waste
management which leads to restrict the cost of services (Hung and Linh, 2019). The
managers of Marriott International are unfavourably affected as they are unable to
manage their resources effectively that develops instability for company to compete
with rivalries.

TASK 4
P5. Evaluate the intrinsic and extrinsic analysis for identifying potential power and
weak spots
Micro Environment:- The managers of Marriott International emphasize on micro
environment that focus on intrinsic surroundings which creates strength and weak spots for
company (Murray and Boron, 2019).
SWOT Analysis:- Marriott International managers implement this matrix for
identifying their potential power that can be increased efficiently for minimising controllable
risk. It further aims to maximise extrinsic capabilities and prospect that generate strategy to
diminish coercion for being stable at competitive market.
Strength (S) Weakness (W)
 The managers of Marriott
International aims to develop good
global presence with innovative ideas
and creative thinking skills that leads
to maintain interior design for
attracting customers to stay at hotel.
 The Marriott International is highly
beneficial with its increasing
customers support and honesty for
qualitative services that tends them to
remain its loyal end-users being as
regular clients.
 The managers of Marriott
International face challenge as it lack
in promotional activities that decrease
in clients as most of its customers are
not aware of varied franchises and
hotels.
 The managers also lacks in the family
management services as being not
able to manage the varied culture and
customs for its guest that lacks in
fully satisfying their needs and wants.
Opportunities (O) Threats (T)
 The managers of Marriott
International are highly optimistic as
it creates prospect for company to
sustain in global market by increasing
positive impacts of external factors
(Pencheva, 2018).
 The Marriott International managers
are favourably affected by developing
good efforts within business that
leads company to achieve its goals
efficiently for creating threats to
rivals.
 The managers of Marriott
International face challenges for large
number of competition being
available in perfect competition
market. This negatively impacts
business for competing with rivalries
through identifying varied strategies
being adopted by them which results
in high time consumption.
 The managers of Marriott
International are pessimistic as they
are not able to deal with negative and
adverse impact of external factors that
result for instability of company.
P6. Determine the strengths and weaknesses that interrelate with external factors
The strengths and weaknesses that interrelate with external factors are explained with
managers of Marriott International as follows:-
External Factors Strengths Weaknesses
Political factor Marriott International Marriott International

managers develop strength
through political factor by
accomplishing their goals
within certain duration by
escaping from irregular
change of political leaders.
managers face weakness
from trade restriction that
lacks in importing fresh
quality ingredients through
foreign which cost high price
for its production (Rocha,
2017).
Economical factor The managers of Marriott
International are positively
impacted by increasing its
customers support and
loyalty through promoting its
features with truth and fair
prospects and meeting their
requirements.
The managers of Marriott
International are negatively
impacted by high inflation
rates that tend to postpone
the buying behaviour of
customers in future which
decrease the booking of
accommodation.
Social factor Marriott International
managers develop strengths
by supplying qualitative
services at low prices that
leads to provide their
customers high satisfaction
(Seddon and et.al., 2017).
Marriott International face
weaknesses by not able to
deliver superior services at
high discounts which lacks in
meeting the needs and wants
of end-users.
Technological factor The managers of Marriott
International are positively
impacted by adopting new
equipments that leads to
reduce labour cost and also
benefits in accomplishment
of target efficiently.
The managers of Marriott
International are negatively
impacted by lacking in
adopting technology with
assumption that it will be
obsolete in future and delay
in goal achievement.
CONCLUSION
From the above discussion it have been concluded that business environment plays
major role by affecting business operations through its positive or negative impact. It is most
important for directors to determine the pros and cons of intrinsic and extrinsic factors that
affects the stability of business in order to compete with rivalries. This project analyses the
optimistic and pessimistic impacts of macro environment over business operations. It further
evaluates the internal and external surroundings for identifying its capabilities to restrict
controllable and uncontrollable risk. Apartly, it determines the strengths and weaknesses that
interrelate with exterior factors of business environment.

REFERENCES
Books and journal
Awang, Y., Ismail, S. and Rahman, A. R. A., 2017. Measuring the potential for financial
reporting fraud in a highly regulated industry. The International Journal of
Accounting and Business Society. 24(1). pp. 81-98.
Berg, W. M., 2018. Viral pollution of the environment. CRC press.
Garbarino, J., 2017. Children and families in the social environment. Transaction Publishers.
Hershkovitz, S., 2019. WARGAME BUSINESS. Naval War College Review. 72(2). pp. 67-
82.
Hung, P. D. and Linh, D. Q., 2019. Implementing an android application for automatic
vietnamese business card recognition. Pattern Recognition and Image
Analysis. 29(1). pp. 156-166.
Murray, K. R. and Boron, S., 2019. The Necessary Paradigm Shift in Sustainable Business
Practice: Part 2: Beyond the Triple Bottom Line. J. Mgmt. & Sustainability. 9. pp.
111.
Pencheva, M., 2018, May. Methodological aspects of examination of leadership and
organizational culture influence on knowledge conversion in public administration.
In Proceedings of the International Conference on Business Excellence. (Vol. 12,
No. 1. pp. 760-771). Sciendo.
Rocha, R. S., 2017. Racing to the bottom, or climbing to the top? Local responses to the
try. International Journal of Business Environment. 9(3). pp. 225-246.
Seddon and et.al., 2017. How does business analytics contribute to business
value?. Information Systems Journal. 27(3). pp. 237-269.
Stanisławska, E., 2019. Consumers’ perception of inflation in inflationary and deflationary
environment. Journal of Business Cycle Research. 15(1). pp. 41-71.
Suzuki, T., 2018. Permanent productivity shocks, migration and the labour wedge: business
cycles in South Africa. Macroeconomics and Finance in Emerging Market
Economies. 11(3). pp. 290-303.
Trigeorgis, L. and Reuer, J. J., 2017. Real options theory in strategic management. Strategic
Management Journal. 38(1). pp. 42-63.
Tsironis, L. K., Gotzamani, K. D. and Mastos, T. D., 2017. e-Business critical success
factors: toward the development of an integrated success model. Business Process
Management Journal.

Online:-
Purpose of National Cyber Security Centre. 2020. {Online}. Available through
<https://egovspace.co.in/national-cyber-security-center-building-a-cyber-resilient-
uk/>
Purpose of Marriott International. 2020. {Online}. Available through
<https://bstrategyhub.com/marriott-vision-mission-core-values-2019-a-complete-
analysis/#:~:text=The%20mission%20statement>