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Business Environment -IHG

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Added on  2020-10-22

Business Environment -IHG

   Added on 2020-10-22

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BUSINESS ANDBUSINESSENVIRONMENT
Business Environment -IHG_1
Table of ContentsP4 Positive and negative impact of macro environment upon business operations...............1REFERENCES................................................................................................................................4
Business Environment -IHG_2
P4 Positive and negative impact of macro environment upon business operationsBusiness environment is the surroundings in which several sector organisations areworking. It is dynamic in nature and such modifications give positive as well as negative bothimpact on the working of companies. Business environment involves macro and microenvironmental factors. Here micro involve internal factors related to business and these arecontrolable whereas, macro involve external elements which is beyond the control(Erasmus,Strydom and Rudansky-Kloppers, 2016). IHG- Intercontinental Hotel Group PLCfounded in 1967 and headquartered in Denham, UK either owns, manages, franchise or leasehotels globally and deals in hotels, resorts or restaurants under the name of Intercontinental,Crowne plaza, Holiday Inn and many more. In present the company had approximately 5400hotels all over the world. External environment also affects company performance andoperation like supply, demand, business regulation and much more (Cantwell, Lundan, 2010).The external business environment of any organization is divided into two segments microbusiness environment and macro business environment, in which micro business environmentconsists of organization structure, suppliers, customers, competitors, and intermediaries.However the macro environment is made up of political, economical, social, technological,environmental, and legal. As macro environment is made up of those factors which can not becontrolled by organization they largely effects the organization and their decision-making.Intercontinental Hotel Group PLC have their operations in various countries to provide absoluteexperience in travel and leisure (Montazemi, 1988). The study of macro environment can beexplained as follows: Political Factors: They play a important role in examine factors that impact IHG PLC'slong term profitability in a specific market or country (Bah and Fang, 2015). As the company isdealing in more than one country, it exposes to different types of political system and riskassociated with it. The political factors that impact a business mainly include taxation, tradepolicies, corruption etc. and causes effects like impact on economy, changes in regulations,political stability (Hamilton, Webster, 2015). Brexit Influence causes positive impact on IHGPLC, as after Brexit, UK individually focused on all small and large scale industries and theirstability to analyze which industry is earning more profit and contributing more in UK economy.By this analysis, they come to know that their tours and travels industries as well as hotelindustries are more profitable to them and they become gave more attention in their growth,1
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