Business Environment of Travel and leisure sector - Assignment

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
a) Key issues in the business environment that are significant for Travel and leisure sector 3
b) Potential issues impacts of identified micro issues............................................................4
c) Describing two challenges faced by carrying above two tasks and suggesting ways to
overcome them.......................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business Environment is the external and internal surroundings and factors which
influence business operations. The main aim of this project report is to identify key issues which
are influence this type of environment. In this project report various issues are identified which
influence business environment of travel and leisure sector. Impacts of these issues is also
analysed on variety of organisations which operate in different business environments. In order
to effectively conduct these tasks, a reflection report is also generated stated issues which are
faced while performing these tasks. Along with these issues, various measures to overcomes
these problems has also identified (Botha, Kourie and Snyman, 2014).
MAIN BODY
a) Key issues in the business environment that are significant for Travel and leisure sector
Business Environment is classified into two category that is internal and external.
Externals environment is further divided into micro and macro. Macro environment is a
collection of various aspects such as political, economical and many more. Travel and leisure is a
sector which comes under hospitality industry. In order to identify key macro issues it is
important to use PESTLE analysis model. Issues effecting business environment of Thomas cook
is discussed below:
Political issues - Political factors are the issues which are faced by an organisation due to
political parties of nation in which a company operates. Thomas cook is a multinational company
which operates in several countries due to which they has to handle political issues of various
countries. These issues may arise out of policies and procedures which are prescribed by political
parties of a country. Travel and leisure is a sector which requires numerous permissions and
authorities due to which it is even harder for organisations like Thomas cook to handle these
issues which occur in their business environment.
Economic issues - Economic factors includes taxation and interest rates which impacts
demand and supply of a company. In the case of travel and leisure sector, taxation rates on hotels
and other necessary requirements can effect demand of Thomas cook. For example: If due to
economic factors taxation rates on hotels accommodation increase then accordingly costs of
travel packages of Thomas cook will also increase which will impact it's demand and supply
(Hamilton and Webster, 2015).
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