Business and the Business Environment

Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Covered in PPT......................................................................................................................1
P2: Covered in PPT......................................................................................................................1
TASK 2............................................................................................................................................1
P3: Covered in PPT ....................................................................................................................1
TASK 3............................................................................................................................................1
P4: Identification of positive and negative impacts of macro environment on business
operations.....................................................................................................................................1
TASK 4............................................................................................................................................3
P5: Internal and external analysis of organisations......................................................................3
P6. Analysing strength and weakness interrelation with macro environment.............................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment refers to a collection of internal and external forces which can
influence the decision-making and profits of an enterprise (Aithal, 2017). These forces can be
employees, customer needs, supply and demand, activities by government, innovation in
technology etc. They are also helpful for an organisation to become dynamic and avail the
available business opportunities. The company which has been selected for this report is London
Marriott Hotel which is a Five Star Hotel in London. This project will cover explanation about
different types, size and scope of organisations, demonstration of interrelationship of functions
within organisation. Also, effect of positive and negative influence of macro environment and
determination of internal strengths and weaknesses of businesses will be covered in this report.
TASK 1
P1: Covered in PPT
P2: Covered in PPT
TASK 2
P3: Covered in PPT
TASK 3
P4: Identification of positive and negative impacts of macro environment on business operations
For forecasting the positive and negative impacts of macro environment factors on
business operations PESTEL analysis is used (PESTEL Analysis, 2016). PESTEL analysis in the
context of London Marriott Hotel is as follows-
Political factors- These factors are government policy, political stability, tax policy,
labour policy etc. These factors have an impact on the operations of London Marriott Hotel and
affect its functioning (Sawng and et.al., 2016)..
 Positive impact- The concessions provided by the government in its new policy will
positively impact London Marriott Hotel. It will allow it to increase its profits.
 Negative impact- The instability in the political scenario of U.K. will affect the business
of London Marriott Hotel.
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Economic factors- These factors include economic growth, exchange rates, inflation
rates, disposable income of customers, emerging markets etc. London Marriott Hotel is affected
by a change in any of these factors.
 Positive impact- Emerging markets such as BRICS offer London Marriott Hotel a
chance to expand its business to other countries (Groza, Locander and Howlett, 2016).
This can substantially increase its profitability.
 Negative impact- Rapidly increasing rate of inflation has put a negative impact on
London Marriott Hotel's operations.
Social factors- These factors include population growth rate, age distribution, income
distribution, health consciousness, social technologies etc. These factors affect the long-term
planning of London Marriott Hotel.
 Positive impact- Social technologies is allowing people to connect with each other using
social media. This helps in creating a positive impact on the business of London Marriott
Hotel.
 Negative impact- Income distribution of society is uneven in nature and is something
which affects the operations of London Marriott Hotel.
Technological factors- These factors are innovations in technology, cyber security, R&D
etc. These factors affect the functioning and profitability of London Marriott Hotel.
 Positive impact- Increase in awareness about cyber security creates a positive impact on
London Marriott Hotel as it needs to keep the data of its guests secure from hackers.
 Negative impact- Rapidly changing technological requirements bring with it a challenge
of adapting to them which creates a negative impact for London Marriott Hotel.
Legal factors- These are laws, rules and regulations framed by the government such as
discrimination laws, employment laws, consumer protection laws etc. These factors create a far-
reaching impact on operations of London Marriott Hotel.
 Positive impact- The new rules and regulations framed by the government makes it
easier to do business for London Marriott Hotel (Schaller, Vatananan-Thesenvitz and
Stefania, 2018).
 Negative impact- Certain strict laws of the government threaten to impact the operations
of London Marriott Hotel.
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