Impact of External Environment on Savoy Hotel in the UK

Business in the 21st
Century

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
This report outline about Savoy hotel UK with information about the business nature, size
and finance. Also, a description of the external environment and its impact on the business of
Savoy hotel is provided. Further opportunities and threats faced by Savoy hotel in last three years
and how it links with the external environment is given (Kruk, 2019). An analysis is been made
to find out how the company responded to the change in the external environment and the Savoy
hotel is been successful or not.
MAIN BODY
In the recent past years the hospitality industry is been severely hit by the emergence of
the new policy changes, climate and technological change, availability of funds, etc. The recent
outbreak of COVID-19 virus has also created a great impact on the hotels and tourism industry
of UK (Needle, D., 2015). One of the hotel that has seen the changing external environment is
the Savoy hotel. The hotel is one of the deluxe and luxury hotel and is located in London UK.
The Savoy hotel is recently awarded by Forbes travel guide for the exceptional service delivery.
It is managed by the Fairmont hotels and resorts Canada. The hotel has 16 royal suites and 267
rooms. The hotel is gone through the major renovations in the year 2007 and opened its doors for
its guests after 3 years. It is the part of the hospitality industry of UK and its business function is
to provide its customers hospitality services. These services include deluxe hotel rooms to get
accommodation in and other leisure services. Savoy hotel has currently more than 250
employees and £50 million. Savoy hotel had reported a loss of £10 million in the year 2018 due
to repayments of the loans. The Savoy hotel has installed £2.5 million worth of technological
upgrades that has expected to reduce annual expenditure of electricity bills and carbon emission
significantly.
External environment are the factors that influence the existence, performance and
functionality of the businesses. These factors may be direct or indirect and the analysis is made
in the context of macro environment. Macro environment contains those factors that affects the
business from the external source viz. Political, Economic, Social, Technological, Legal and
Environmental (Ghotge and et.al, 2020). Companies perform PESTLE analysis to found out the
impact of the factors on the performance. These factors hindered the normal functioning of the
businesses of the companies. The change in the government policies of the UK make Savoy