Analyzing the Impact of Macro Environment on Best Western Premier

Business Strategy
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................4
Applying the appropriate frameworks, analyse the impact and influence of macro
environment on The “Best Western Premier”.......................................................................4
LO2..................................................................................................................................................6
Analyse internal environment and capabilities of organization by using VRIO analysis.....6
LO 3.................................................................................................................................................9
Competitive analysis of market sector by applying porter’s five force model......................9
LO 4...............................................................................................................................................11
Summary of SWOT..............................................................................................................11
Critical evaluation of internal environment with porter’s generic.......................................11
Recommendations................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
A business strategy is based on a powerful tool or platform that helps for reaching
enterprise goals, defining the suitable strategies, tactics that needed to take within the
organization (Park and Mithas, 2020). Another way, it can be defined as a business strategy that
refers to the actions, decisions which take place by the hospitality industry.
This report is based on the “Best Western Premier”, identifying the impact and influence
of the macro-environment with the help of pestle analysis. This report will describe the analysis
of the internal environment and capabilities of the organization, evaluating the outcome on
behalf of analysis. Furthermore, it will discuss the different models, concepts, and theories to
assist with understanding, interpretation of strategic direction within a hospitality organization.
Mission: To enhance the overall business visibility and make a strong brand in the global
marketplace.
Vision: To improve current business operational activities.
Objective
 To increase productivity as well as the profitability of the organization in the global
marketplace
 To implement digital technologies for improving speed, the efficiency of business
operational tasks.
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LO1
Applying the appropriate frameworks, analyse the impact and influence of
macro environment on The “Best Western Premier”
Pestle Framework
It is a type of tool or framework that mainly used by enterprise to analyse macro
environment or culture. Pestle analysis refers to the political, economic, sociological,
technological, legal, and environment. This type of framework will provide the insight into
external factors which impact on the Best Western Premier hotels in the global marketplace
(Bondarenko, Efremenko, and Larionov, 2019). This type of hotel provides great and important
services which not only attract tourists but also travellers from one country to another.
Obviously, there are different factors that directly affect the hotel industry.
Political Factor- Political factor plays an important role especially in the context of the
economy of the nation. Best Western Premier is targeting international tourism and then
afterward, it will be focused on the different hotel properties. This hotel provides the best support
for guests and helps to sustain in a competitive world.
Best Western Premier needs to understand the different rules and regulation of country,
which may vary in the province and then afterwards, West premier hotel operates as franchisor.
Manager of Hotel will monitor or track the activities of regulation. Nowadays, COVID-19 has
been rapidly increasingly impact on the business to decrease revenue of hotel. Furthermore,
identifying the political instability within best premier hotel in which impact on the business
policies, and procedures for growth and development (Bondarenko, Efremenko and Larionov,
2019).
Economic Factor- Basically, this factor includes taxation changes, economic growth,
inflation and interest rate, exchange rate. The best way to know about the economic change that
does leave a significant impact on the behaviour of Best Western Premier. All capital states and
country, own a wide number of tourists arriving for purpose of workshops, business dealing, and
another type of sole purpose (Bondarenko, Efremenko and Larionov, 2019). In this way, it is
positively impacting the hotel to give the best option and maintain their service.
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West premier hotel is focused on ever expanding supply in which there is no longer to
manage their franchise due to COVID-19, it has been reduced economy power within hotel
enterprise. Afterwards, best premier hotel revenue and its operating profit will be decreasing due
to decline of market activities.
Social Factor- The social factor is considered the important in Hotel industry because it
will continue to change the demand, want, and preference of the potential client. In UK, many
individual people is focused on the traditional culture and use their native language. Sometimes,
they can give more preference of their traditional food items. That’s why, Best Premier hotel will
serve the dishes, food and beverage on the basis of the demand. Therefore, Hotel can need to be
understand the difference to establish an effective marketing strategies for nation (Bondarenko,
Efremenko, and Larionov, 2019).
Best western Premier is basically exposed to the threat of damage in its reputation. If in
case, it fails to demonstrate with efficient use of practices, promoting awareness among local
communities.
In this way, it can identify that Social factors will positively impact the hotel to increase
the classes of guests so that customers prefer to select the best one, also it will negatively impact
the hotel where if they are not fulfilling all need or requirement for guest.
Technological Factor- Advancement of modern technology that can be used by Best
Western Premier especially, when it comes to hotel management procedures. This type of hotel
is providing the best quality of services where each and every guest can do their booking through
digital technology. Event guests prefer hotels that are embedded with modern technology. It
became safe and secure so that it would reduce the work efforts and enhance the better result or
outcome. For Example- Hotel provides a card-based key for luxury rooms and online booking
facilities through the website. Modern technology will positively impact the hotel to show
progress and increase growth opportunities. Within Best Western Premier, staff members can
utilise technological aspects and integrated with customer satisfaction levels. But at some point,
it negatively impacts the hotel regarding privacy.
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Legal factor- The legal factor is a positive impact on the growth and development of Best
Western Primer, there have been many changes made which affected the behavior of hotels.
Legal factors include health legislation and safety. However, discrimination law has been
eliminated which identifies possible impacts on legal aspects and effects on the hotel (Chen,
2019). On the other hand, the Current situation and war condition do not affect the Best Western
Premier hotel which may lead to serious changes. It might be possible to determine the external
factors that may leave a negative impact. For Example- Best Western Premier hotel can follow
equal customer safety regulations to provide the best quality of services.
Environmental Factor- This factor is related to the environment or cultural changing,
which is directly impacting the “Best Western Premier”. This hotel will adopt a friendly
environment and select sustainable related products. The environmental factor is affecting the
hotel in the context of heavy rains, floods, and storms. Another way, this factor will help to
reduce troubles, and a team of hotels can handle complex situations or conditions.
Porter’s five force theory -
It has been analysed the framework for analysing company competitive environment. Best
western premier can use as competitive rivals, potential new market entrants, suppliers,
customers and become substitutes which influence luxuries accommodation service of hotel.
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