Business Environment

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Compile a PESTLE analysis of external environment...........................................................3
TASK 2............................................................................................................................................4
Using examples for hotel industry discuss importance of effective recruitment and selection
process in order to sustain competitive advantage.................................................................4
TASK 3............................................................................................................................................6
Analyse and evaluate principle factors that affect culture, equality and diversity of an
organization............................................................................................................................6
TASK 4............................................................................................................................................8
Identify and describe main methods of performance management utilized by organizations to
ensure targets and achieved and organisation competitive advantage...................................8
TASK 5............................................................................................................................................9
Discuss an outline plan which offers recommendations on issues raised in presentation......9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is an essential aspect of business as this is helpful in analysing
external and internal business factors in order to get competitive edge in the marketplace.
Business environment is the collection of internal and external factors which includes customer
needs, government interventions and all the policies which are implemented by business. This
report highlights all the major concepts of business environment with the background of
intercontinental hotel. Intercontinental hotel is a British hotel chain which is having their
business around the globe. They are serving in more than 100 countries and in order to gain
market advantage several factors are analysed by them which are included in this report. (Eling
and Schaper, 2017)
TASK 1
Compile a PESTLE analysis of external environment
PESTLE analysis is a framework which is used for analysing external environment in
order to analyse those factors which may have direct implications on business. This analysis is
essential to be drawn by business as this suggests any alterations and this may help them to draw
distinct edge in marketplace. In the context of intercontinental hotel this analysis is performed as
under:
Political factors: These factors are associated with political conditions of the country as
in context of UK country is facing instability in political conditions due to Brexit. This factor is
having high implication on human resource management of intercontinental hotel as they are
required to frame such human resource policies which can cop up with instable political
conditions and emerge as robust control over the business. Similarly in this factor human
resource department of intercontinental hotel deals their employees in prominent manner as
employee mobility can be increased due to instable political conditions.
Economic factors: These factors are associated with inflation rate, FDI, corporate tax,
unemployment rate and many more factors as these factors are directly related to HR functions.
In this context HR department is having high role in business of intercontinental hotel as HR is

responsible to appoint employees on an appropriate pay scale according to their job role. In the
current crises due to lockdown and Brexit implications, HR managers are having negative impact
as people are not willing to work for nominal wages during the crises. So these factors are having
high implications on intercontinental hotel and they are required to frame smart decisions so that
employees can be highly satisfied and business does not get any monetary harm.
Social factor: These factors are associated with per capita income and taste and preferences of
customer. In the context of intercontinental hotel within this factor HR manager is required to
provide flexible working environment to their employees so that all the employees’ cam work
with high degree of harmony and job satisfaction. On the other hand if manager fails to provide
the same then this may hamper working of intercontinental hotel in negative manner as adversely
impact on market brand image as well. (vom Brocke, Zelt and Schmiedel, 2016)
Technological factors: These factors are associated with using emerging technology in
business. In context of intercontinental hotel the HR department is having role to arrange various
training sessions to their employees so that they can cop up with latest technology in prominent
manner. These factors are having effective role in their decisions regarding arrangement of
tenure of training and development of employees.
Legal factors: These factors are associated with legal framework of the business so as to
avoid any law suits. In the context of intercontinental hotel the HR department is having role to
oversee enforceability of various laws such as employment laws, safety law and many more.
This is helpful for the customers to obtain high satisfaction from services opt from
intercontinental hotel.
Environment factors: These factors are associated with adaptation of environmental laws in the
business so as to minimise harm to earth and eco system. In this context HR department of
intercontinental hotel is having role of using environmental friendly technique in their business
and implementing the same to minimise the harm (Erasmus, Strydom and Rudansky-Kloppers,,
2016).