Macro Factors and Business Impact

This assignment explores the influence of macro factors on business operations. It delves into how political and social factors specifically impact management decisions and employee behavior. The analysis utilizes the PESTEL framework to identify key macro factors and provides recommendations for mitigating their potential negative effects on organizations. The Marriott International case study serves as a practical example throughout the analysis.

Key issue in the business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Identification and description of key macro issue in the business environment ........................1
Potential impact due to the 2 identified issues............................................................................1
Refection on 2 challenges ..........................................................................................................1
CONCLUSION ...............................................................................................................................1
REFERENCES ...............................................................................................................................2

INTRODUCTION
This report is based on the key issue issue in the business environment as there are many
issue which are present in the business environment that the organisation has to do all the efforts
to minimise the issues which are present in the environment. As there are many issues such as
pollution, waste disposal, climate change , inadequate access to water etc. the present report is
taken on the travel and leisure company that is Marriott International which is an American
multinational diversified hospitality. It was founded in 1927 by J. Willard Marriott and Alice
Marriott. In this report it will cover and describe the macro issues in the business environment
that are very important for the Marriott International and further it will include the potential
impact at micro level due to the identified issues. And at last it will include the recommendation
of the two challenges by which company can dissolve by improving it self.
MAIN BODY
Identification and description of key macro issue in the business environment
There are the key macro issue in the business environment which affect the organisation to the
large extent and which the business must have the clear study of the factor. This can be analysis
by the help of PESTEL analysis which include all the macro factor such as political, social,
economic, technology, legal and environment factor which affect Marriott International which
are describe below-
Political Factor – Political factor could affect the Marriott International as there will be
biggest threat is terrorist attack or military conflict which are the serious issues as it is the travel
and leisure company and terrorist target the hotel to the large extent. So it is very important to
study the political factor to the large extent.
Economic Factor – the major economic factor that affect the Marriott International
business is slow economic growth if the country has slow economic growth then it will be very
serious issue for the hotel industry as there will less sales in hotel. A long term economic threat
is growing income equality which reduces people's ability to travel and stay in the luxury hotel.
And if the income level is very low of the customer then it will impact on the sales of the
Marriott International (Mkude and Wimmer, 2015).
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Social Factor – social factor are the direct reflection of the society it include
cultures,belief,preferences and attitude of the customers. It is important to have the
understanding of the customers lifestyle , level of eduction which will help to design the product
and marketing of the services. If the customer are not educated then they will not spend much on
the hotel and travel less and also age factor affect the organisation to the large extent.
Technological Factor – Nowadays, it become important to rapidly innovates and
improves its services so to gain competitive advantages and to gain maximum profit. The recent
trend is online booking services which help the customer to the large extent. And also it is
important to invest in research and development department so that it will be very easy for the
Marriott for survival (Schuetz and Schrefl, 2017).
Environment Factor- there are different norm for different industry that must be followed
by them. The environmental factor affect the business as current weather condition also directly
impact the Marriott International and also climate change also make some products useless. Also
if the organisation produce large amount of waste than it is important to manage the waste.
Legal Factor – It very important for the business to have the proper knowledge of the
legal factor. Marriott International has to consider all the law and regulation such as health and
safety law as Marriott has to engage in it because of its social and ethical responsibility. It is
important to have a proper knowledge of the legal factor as it gives negative impact on the
business if the rules and regulation are not in favour of the business (Derbyshire and Wright,
2017).
Potential impact due to the 2 identified issues
There are potential impacts due to the challenges of the Marriott International are -
Political factor affect the micro factor as it has many challenges that affect the Marriott
International such as political factor directly affect the management and the employees as they
are micro factor. As by Brexit there will be challenges in the business environment as Marriott
International has to make many decision which will affect the organisation to the large extent as
by Brixit the management has to make changes in the its pricing strategies and also in the
organisation function which affect the business to the large extent. And also there will be many
political changes which such as many policies which affect the business to the large extent. As it
also affect the employees as by Brexit there will be no stability among employees and also there
will be increase in the employees turnover . So political factor affect the micro factor as the
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management strategies has to be taken as Brexit affect the organisational strategies as there will
be different new procedures and policies that to be taken into account to survive the business and
to have sustainable growth. So, Political factor play very significant role.
The second micro factor that affect the micro level is social factor as it affect the
behaviour of the employees. As social factor include culture, belief, preferences, attitude of the
employees. As at the time of Brixit there are many changes which are to be taken by Marriott
Internation this will directly impact the employees. Social factor impact the employees as there
are wide diversity of people working in the organisation and there are chances of the conflict as
sometime one employees interest and attitude doesn't match with the other and than conflict
arises so social factor affect the employee's loyalty as they are identify with the group and
contribute to an organisation. As to reach and obtain multiple goal it in important to feel them
they are the most important part of the organisation. Employees retention also depend upon
employees identification with the organisation processes , work life balance , management,
recognition etc. (Han, Chen and Ma, 2015).
Refection on 2 challenges
By the help of this project report on the key issue in the business environment I have
faced many challenges but apart from the challenges I have learned a lot from the project as by
this my knowledge have increases and gain better understanding to face any situation and also by
this report my communication skills also increases. In this report I have analyses various macro
factor that affect the business and its surrounding and I gather different aspect of the macro
environment as the factors which affect the business are political factor, social factor ,economic
factor, technological factor, legal factor and environment factor which affect the business to the
large extent. For this it is important to analyses the situation and have a adequate knowledge
upon the factors and also it is recommend to have proper research before entering into the
business (Brinckmann, Kirchlechner and Dehm, 2017) By this project I was very nervous at first
that if I will handle this report or conduct it properly. I was very happy to research something
new about the new topic that is macro factors . After this I study about the macro factor which
impact the micro factor as conduct the proper study that how political factor affect management
and social factor affect employment. Further I will recommend that to take various measures
which minimise the impact of the macro factor. I have learn many new things and ways to
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conduct the business in the adequate manner. I also learned many new things about the Marriott
Internation which enhance my skills.
CONCLUSION
The above case study is base on the key issue in the business environment as there are
many issues which are present in the business environment so it will help to maximise the risk
and loss of the organisation as there are many issues which affect the business are employee
health and morale ,consumer culture demands etc. further in this study it will conclude that
macro factor affect the organisation to the large extent and it is very important to understand the
macro factor which affect the organisation. This can be done by the help of PESTEL which helps
to identify the business the macro factor such as political, social, economic, technological, legal
and environment factor which gives direct impact to the organisation. Further it will concluded
that the two challenges that are impact by the macro level are as political factor affect the
internal factor that is management and employees and social factor that impact employees
behaviour and attitude. And last it will concluded the refection that is the challenges which are
been face .
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REFERENCES
Mkude, C. G. and Wimmer, M. A., 2015. Studying interdependencies of e-government
challenges in Tanzania along a PESTEL analysis.
Derbyshire, J. and Wright, G., 2017. Augmenting the intuitive logics scenario planning method
for a more comprehensive analysis of causation. International Journal of Forecasting.33(1).
pp.254-266.
Schuetz, C. G. and Schrefl, M., 2017, November. Towards formal strategy analysis with goal
models and semantic web technologies. In International Conference on Conceptual
Modeling (pp. 144-153). Springer, Cham.
Han, Q., Chen, P. and Ma, T., 2015. Influencing factor analysis of shale micro-indentation
measurement. Journal of Natural Gas Science and Engineering.27.pp.641-650.
Brinckmann, S., Kirchlechner, C. and Dehm, G., 2017. Stress intensity factor dependence on
anisotropy and geometry during micro-fracture experiments. Scripta Materialia.127.pp.76-78.
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