Business Environment and Student Challenges

The assignment is about understanding the business environment, which consists of micro and macro elements that affect companies, including tourism and hotel industries. The student faces challenges such as communication and time management while working on tasks. To overcome these problems, it's essential to develop confidence, attend seminars, and schedule tasks properly.

BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Key macro issues in business environment that impact on Travel and Leisure sector................1
Potential impact at micro level due to various issues..................................................................3
Challenges faced and ways to overcome these problems............................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
There are several internal external factors that impact on overall working of business to
great extent. Business environment aids in making proper plan, identifying opportunities and
analysing issues that may impact on performance of organisations (Calabrese and et.al., 2018).
Hospitality and travel industry play significant role in economic development of nation. Both
these sector aid in generating employment opportunities in nation every year. Current assignment
will explain key issues in business environment that impact on travel and leisure sector.
Furthermore, it will evaluate potential impact of these issues at micro level. Study will reflect on
challenges faced by person while carrying out task.
MAIN BODY
Key macro issues in business environment that impact on Travel and Leisure sector
Travel and tourism sector play significant role in economic development of nation. There
are several macro elements that have impact on overall business environment of companies
which operate in this sector. Pestle analyses is the model that explains and describes various
macro factors that affect or influence business activities of travel and leisure sector (Hansen,
2018). Macro issues are explained as below:
Political issue
It is considered as one of the major problem that faced by tour operators across the world.
Political condition, stability of government determine the safety and development of particular
destination. Instable government increases chances of violence and terrorism which make the
location unsafe. Such kind of issues impact negatively on development of travel industry to great
extent. Furthermore, traveling rules, political unrest etc. are some major macro issues that create
negative publicity and due to which overall tourist arrival get affected badly (Khan and Quaddus,
2015). In the year 2001 terrorist attacks in UK have affected tourism industry badly, people were
so worried to go to such locations where they are not safe. This has decreased sales of tour
operators and decreases profitability of entire tourism and leisure sector to great extent. Poor
security arrangement creates threats for the travel and tourism sector as it affects overall arrival
of travellers. United Kingdom has stable government recently and authorities are continuously
paying attention on development of nation. Government provides easy visa policies to visitors
that supports in attracting more people and creating opportunities for the tourism and leisure
sector.
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Economic issues
This is another major macro issue in business environment that are significant for travel
and leisure sector. Economic slowdown, inflation, deflation etc. affect the overall working of this
industry badly. If there is high exchange rates or currency exchange rates, then it would be over
budget for travellers (Hair Jr and et.al., 2015). During 2008 crises GDP rate of UK was very low.
Furthermore, if GDP rate of country is not good then there will be less facilities. That affects
traveling activities and arrival of travellers badly. Thomas Cook is the leading tour operators
which arrange international travels for consumers. But economic fluctuation impact on sales of
company and affect its profitability to great extent. Instability of currency of host country, type
of economic system, unemployment rate etc. influence the choice of visitors (Lee, 2017).
Recently economic condition of UK is very good and United kingdom provides job opportunities
to mass people. This enhances employment rate in the region. That creates opportunity for
tourism and leisure sector and help the industry in raising its profitability.
Social issues
This is considered as most essential element that influence the success of travel and
leisure industry. Innovative culture attracts consumers or travellers. If the nation has strong
values and norms then tourists take interest to come to such kind of location but if there is high
criminal activity, poor cultural norms, high drug usage, crowd behaviour then consumers don’t
like to go at such kinds of destinations. This impact on business environment of travel and
leisure sector badly (Pestle Analysis of Travel Industry, 2017). United Kingdom is the nation
where education rate is very good. People like to implement innovative ideas, even they deal
with visitors very friendly. This creates opportunities for leisure and tourism sector and help this
industry in meeting with the needs of international travellers.
Technological issues
In the recent era most of the people use advance technologies, now consumers are able to
book their tickets online and search all details of place or destination online. Tourism and
Leisure industry have implemented such kind of techniques in order to offer amazing experience
or services to consumers (Huang-Horowitz, 2015). Many times details related to credit card or
debit card misused by others. In such condition consumers may have to bear huge issues. That
make them negative and many times they cancel their trip as well. UK is the developed nation
where companies use advance technologies that make them able to be more productive. Tourism
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industry of UK offers pre reservation services, online booking facilities to consumers by using
mobile application and other techniques. That is beneficial for the industry and make them able
to attract mass audience towards the UK.
Legal issues
It is very important for companies that operate in tourism and leisure sector to follow
certain regulations. Changes in laws creates difficulty for tourism business. UK has effective
trade policies and smooth visa polices (Raziq and Maulabakhsh, 2015). This aids in creating
effective atmosphere and tour operators become able to convince travellers to visits that location.
Environmental issue
People like to go to places where climate is good, Pollution, lack of natural resources
affect atmosphere badly. Environment is the major or key concern of tourism and leisure sector.
For example: Paris, London etc. are most popular destinations where many travellers like to go
but if atmosphere of these locations are not good then it would affect travel activities there which
will negatively impact on this sector (Ibrahim and Primiana, 2015). UK government has made
effective environmental laws and it is continuous working to protect natural resources. This
reduces pollution and improve climate condition that creates opportunity for tourism and leisure
industry as many travellers take interest to come to this location.
Potential impact at micro level due to various issues
There are several Marco issues that directly and indirectly impact at micro level of
hospitality industry. Economic issue is considered as one of the major factor that affect overall
working of hotels to great extent (Pestle Analysis of Travel Industry, 2017). Hilton hotel is the
leading hotel that offers luxurious services across the world. It has many branches globally and
its main agenda is to serve the consumers well. One of the main strength of hotel is that it has
strong financial position that makes them able to improve its services and expand business
globally. But poor economic condition of nation impact negatively on working of the hotel. If
there is inflation, then it influences money supply (Koisova and et.al., 2017). Due to inflation
domestic level consumption get decreased to great extent. If there is high unemployment rate,
then it would affect investment hence there will be poor infrastructure facilities. Travellers do
not prefer to go to such location where economic condition is not good as they might face issue
in getting adequate facilities. In such condition sales and profitability of hotel industry get
decreased. Changes in economic condition influence prices as well. This influence ability of
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hotels to generate cash flow and manage cost of companies. This disturbs sustainability of
business unit as well. There is significant relationship between economic variables and stock
return. Economic fluctuations create trouble for hotel sector as it decreases confidence of
consumers and hotel fail so get high return on their investments. Share return can get minimised
which increases risk of companies (Calabrese and et.al., 2018).
Poor economic condition or low employment rate decreases demand of luxury hotel
rooms which will reduce profit of hotels. Recession or inflation affect investment strategy of
hotel to great extent.
Figure 1: Average daily rate of luxury rooms at the time of recession
(Source: Effects of economic factors on demand for luxury hotel rooms in the U.S, 2015)
Social issue is considered as another major problem that impacts at micro level of
business environment of hotel industry. Hilton hotel aims to offer luxurious and satisfactory
services to consumers but social factors influence the working on performance of business unit to
great extent (Khan and Quaddus, 2015). Life style changes influence the choice of person that
affects sales of company. Now a day many people are health conscious they want healthy food
so that they can remain healthy. It is quite difficult for hotels to fulfil needs of all range of
consumers, in such condition sometime sit fails to satisfy them which affects profitability of
organisation to great extent. Fluctuations in social factors influence demand of hospitality
products and services. Travellers travel to different locations and they prefer to stay at the place
where they can get adequate facilities and if firm fails to meet their needs then they feel
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dissatisfied. Cultural changes influence choice of the person and sometime decrease demand of
particular product of hotel (Lee, 2017).
Both these issues have significant impact on business environment of hotel industry.
Companies are required to make effective strategies through which they can deal with these
problems significantly and can boost their revenues as well (Ibrahim and Primiana, 2015).
Challenges faced and ways to overcome these problems
I have faced many issues while performing that task. These problems or challenges make
them able to learn new things and use that experience for performing well in the future. Many
times I had to struggle to make balance between academic demands and other responsibilities.
Managing time was the major challenge for me which during these tasks. I have never
heard about macro issues and their impact at micro level. It was completely new topic and
initially it was time taking for me to understand that subject. I took lengthy hours to search about
models related to macro issues in travel and leisure sector. There were so many theories and
framework but I had to select appropriate one. This was such a time consuming process to read
each content and analyses suitability to the task. I had to complete that task within stipulated
period of time but it was such a difficult thing for me to manage. It was recommended by my
teachers to spend two or three hours in class rooms as well. After that I had to spend some time
with my family but searching on macro issues have taken so much time and I fail to give
adequate time to my family. Thus, time management was the biggest trouble faced by me while
working on these tasks.
Another challenge faced by me while carrying out the task was ease communication
with teachers and lecturers. Teachers play the role of guide, then teach students and make
them able to understand new topics easily. I have poor communication skill; I cannot coordinate
with others so easily. That weakness created issue for ma many times. I feel so hesitated when I
had to ask any quarry to my teachers. Apart from that I had to raise questions within limited
hours. Lecturers were very busy at that time and many time I failed to raise my quarry on time.
Such kind of things demotivated me and I felt so dishearten. If there are communication issues,
then individual may get fail to complete the task on time and with efficiency. If I ask one
question and teacher answer me then I feel so hesitate to raise another question at that time. I was
not having confidence due to which I faced challenge of communication issue.
Solution
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In order to resolve or overcome such kinds of problems it is very important for me that to
take right action. For overcoming problem of time management, I should schedule the task and
activities. I have to understand priority of the work. That would support me in picking the
important activity first and soon. In the absence of scheduling and prioritisation individual face
problem in manage multiple task and arrange all the things easily. But this strategy always works
and I would be able to give adequate time to my family, study and research as well.
For resolving the challenge of communication issues with teachers, I would have to improve
my confidence level. I realised that due to poor confidence I fail to coordinate with students and
teachers well. I should develop confidence in order to overcome that issue. Apart from this, I can
involve my parents into my task, they can guide me and can build my confidence. I should have
to note down each quarry in note book and have to ask to teacher whenever she or he is present
at class. If I note down all the issues, then lecturer will be able to solve my problems easily and I
would also feel comfortable. I should participate in extra activities so that my communication
skills can be raised and have to attend seminars or workshop. this would support me in
improving my interacting capabilities and I will be able to make easy communication with my
teachers.
CONCLUSION
From the above study it can be concluded that business environment consists of two major
elements: micro and macro. Both these factors have high impact on all working of companies.
Economic, social, political, legal, environment components create trouble for tourism and hotel
industry. Changes in these element affect performance of productivity of hotels and tour
operators to great extent. Communication and time management are two major challenges faced
by students while working on particular task. It is essential to develop confidence, attend
seminars and schedule task properly. this would aid in overcoming these problems significantly.
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REFERENCES
Books and Journals
Calabrese, M. and et.al., 2018. From mechanical to cognitive view: The changes of decision
making in business environment. In Social Dynamics in a Systems Perspective (pp. 223-
240). Springer, Cham.
Hair Jr, J. F. and et.al., 2015. Essentials of business research methods. Routledge.
Hansen, A., 2018. Environment, media and communication. Routledge.
Huang-Horowitz, N. C., 2015. Public relations in the small business environment: Creating
identity and building reputation. Public Relations Review. 41(3). pp.345-353.
Ibrahim, R. and Primiana, I., 2015. Influence Business Environment on the Organization
Performance. International journal of scientific & technology research. 4(4). pp.283-293.
Khan, E. A. and Quaddus, M., 2015. Examining the influence of business environment on socio-
economic performance of informal microenterprises: content analysis and partial least
square approach. International Journal of Sociology and Social Policy. 35(3/4). pp.273-
288.
Koisova, E. and et.al., 2017. SMEs financing as an important factor of business environment in
Slovak Republic regions. Montenegrin Journal of Economics. 13(2). pp.129-140.
Lee, I., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Raziq, A. and Maulabakhsh, R., 2015. Impact of working environment on job
satisfaction. Procedia Economics and Finance. 23. pp.717-725.
Online
Effects of economic factors on demand for luxury hotel rooms in the U.S. 2015. [Online].
Available through < http://www.ahtrjournal.org/admin/dosyalar/9/1-manuscript.pdf>
Pestle Analysis of Travel Industry.2017. [Online].Available through
<http://marketingdawn.com/pestle-analysis-of-travel-industry/>
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