Table of Contents INTRODUCTION...........................................................................................................................1 TASK 3............................................................................................................................................1 P6. Impact of external factor on the development of the organisation.......................................1 P7. SWOT analysis for a hospitality business...........................................................................2 TASK 4............................................................................................................................................3 P8. Implications of current and potential trends in the hospitality industry...............................3 CONCLUSION................................................................................................................................4 REFERENCES................................................................................................................................5
INTRODUCTION Hospitality industry is the industry which is responsible and providing services related to food or meal services and accommodations in places such as hotels, resorts, motels and others according the consumers demands and needs. In present time its is most growing sector of business industry and provide their services in various areas such as food or beverage, travel and tourism etc. This assignment is based on Marriott International, it is an American multinational hospitality company which manage and franchises a broad portfolio of hotels and lodging facilities. This hospitality company founded in 1927 by J. Willard Marriott and Alice Marriott (Amin and et. al., 2013). In this assignment explained about the political, economic, social, technological,legislativeandenvironmentalfactorswhicheffectthedevelopmentofthe organisation. SWOT analysis of hospitality company and how it can effect the decision making process are defined in the report. The implications of the current and potential trends in the hospitality industry which help in develop the business are described. TASK 3 P6. Impact of external factor on the development of the organisation External factors are those factors which influence and affect an organisation or its business positively or negatively. These factors can impact the ability of a business and investment to achieve its strategic goals and objectives. These external factors are political social, economical, legal, technological and environmental or affect the business of Marriott positively and negatively. Political-It is an activity which is related to government policy and its administration practices that can impacted the business of the company. The major political factor that could affected the business of Marriott can be danger of terrorism, political climate in popular or famous tourist destination and international relations. The treat of terrorist attack and military conflict affect the business or growth of the hospitality industry and it create negative impact on the business of hospitality industry. Hotels provide various international destinations in their tour package which is a positive impact because in it company operate their business internationally. Social-These factors are customers, lifestyles, values and culture that characterise a society and affect the business of hospitality industry (Berezina and et. al., 2016). Society culture and way of doing thing impacted the business of an organisation. Education level, demographic 1
and skill level effect Marriott hotels positively and negatively. If the hospitality industry provide products and services according the customers lifestyle, health, religion and culture or others, it affectedthebusinesspositively.Forexample,ifMarriottdonotprovideWi-Fi, telecommunication and other services in its hotel then it create negative impact. Economical-This factor is related to the finance and cost which affect the development of the hospitality sector (Bowie and et. al., 2016). In Marriott, the exchange rate an d change in currency rate affect the business of this company negatively because it discourage Americans from travelling and foreign tourists from visiting US destinations. Changes in tour package price also affect the growth of this sector but discount and offer on holiday package attract customer which help in increase growth of the hospitality sector. Technological-It is important factor which have huge impact on hospitality industry. Technology help ion the business of the company by providing various devices, software and others. With the help of technology companysales their tour package by online mode and it is easy for the customer also because they can also get information and saw picture of their destinations where they plan to go. It help in saving times and provide a way by which Marriott can operate its business and do marketing by using online modes or channels. Legislative-It is related to acts, laws and regulations which are made by government and change in these laws or legislations affect hospitality industry negatively. If the law is in favour of the company it will be positive for the company otherwise it will be opposite in context of the business. Environmental-this factor is related to the issues of food scarps, oil and chemical, disposable and others. The main environmental factor that affect the business of hospitality sector is fuel prices and falling in oil prices could reduced travel costs. Increment in the temperature from global warming can close ski resorts and beach resort too hot for comfort whichcreatenegativeimpactofthebusinessofhospitalitysectorandMarriottalso (Kandampully, Zhang and Bilgihan, 2015). P7. SWOT analysis for a hospitality business SWOT analysis is process which organise by a company for identifying the strength, weakness, opportunity and threat of the organisation that affect the business of the firm positively and negatively. The SWOT analysis of Marriott are as following: StrengthsWeaknesses 2
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
The company has strong position in the marketwith having the diversified and expended business internationally. The company provide wide range and good quality product and services to its customers. The company declining its position in the market in case of shares cause of high ratio of debts that the company is facing. Competitionfromlongestablished hotel chains. OpportunitiesThreats Development of new technologies is an opportunity for Marriott business and by adopting them, it can expand its business or maintain its loyal customer with great services. Bydoinginnovationincustomers services. Entryofseveralnewinternational brands with the strong business. Rising price in raw material can pose a threat to Marriott business (Lub and et. al., 2012). The effect of these factors on Marriott Hotels are considerable and effect the decision making of the the management department when they make policies and regulation for the company. The manger of Marriott make strategies and policies by analysing the strength of the the company. Marriott operate its business internationally so the management department designed strategies to improve its business. For its weakness like competition, the manger of the company do market research so that they can identified their competitors. By market research they can also find out opportunities for expend their business and they can make innovation in its products or services and grape the opportunities. For removing the treats, the management department can take decision to make change in their pricing strategies and designed other strategies which help Marriott in removing threat from its business (Wang, Chen and Chen, 2012). 3
TASK 4 P8. Implications of current and potential trends in the hospitality industry Trends are change according the regulation and the legislation or customers demand. To adopt these new trends are important for the company so that they can make improvement in their business and contact their customer with them. There are some current and potential trends in hospitality industry, they are as following: Tech explosion-In hospitality industry, today the guest and customers are self sufficient who are comfortable using apps and mobile websites. To adopt new technologies the hospitality industry can increase its customers line. For booking, check in or check out, various hotels use application which is easy for the customers. The customer can search hotels and destinations where they are going to visit through online (Williams, 2012). Hospitality industry provide extra technologies to its customers for business meeting and conference. Increased emphasis on health and well being-By providing health and fitness services according new trends and customers demand, hospitality expand its business and attract more customers. Today, they provide pools and spas, healthy food options, air purification, yoga spas, in room exercise and other facilities are attracting consumers. These trends create implications on the business of the hospitality industry. The impact are as following: The management department of Marriott can provide technological advantage to its customer which help in expend the business of the company and attract more customers. With the help of software and application the consumer can easily know about their tour and do all the formalities which they do during check in or check out. By providing extra facilities of health and fitness, according new trends that help in increase customer of the company (Xiao, O'Neill and Mattila, 2012). CONCLUSION In this assignment it is concluded about the political, economical, social, technological, legislative and environmental factors that affect the business of the hospitality industry positivity or negatively. SWOT analysis of Marriott hotels are also explained including its strength, weakness, opportunities and threats that affect the decision making of the company and the management department take decision according this analysis. Current and potential trends are 4
described in the report which impacted the business of hospitality sector positively or negatively and their implications are also defined. REFERENCES Books & Journals Amin, M., and et. al., 2013. Service quality dimension and customer satisfaction: An empirical study in the Malaysian hotel industry.Services Marketing Quarterly.34(2). pp.115-125. Berezina, K., and et. al., 2016. Understanding satisfied and dissatisfied hotel customers: text mining of online hotel reviews.Journal of Hospitality Marketing & Management. 25(1). pp.1-24. Bowie, D., and et. al., 2016.Hospitality marketing. Routledge. Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future directions with a special focus on the hospitality industry.International Journal of Contemporary Hospitality Management.27(3). pp.379-414. Lub, X., and et. al., 2012. Different or alike? Exploring the psychological contract and commitment of different generations of hospitality workers.International Journal of Contemporary Hospitality Management.24(4). pp.553-573. Wang, C. H., Chen, K. Y. and Chen, S. C., 2012. Total quality management, market orientation and hotel performance: The moderating effects of external environmental factors. International Journal of Hospitality Management.31(1). pp.119-129. Williams, A., 2012.Understanding the hospitality consumer. Routledge. Xiao, Q., O'Neill, J. W. and Mattila, A. S., 2012. The role of hotel owners: the influence of corporate strategies on hotel performance.International Journal of Contemporary Hospitality Management.24(1). pp.122-139. Zopiatis, A., Constanti, P. and Theocharous, A. L., 2014. Job involvement, commitment, satisfactionandturnover:EvidencefromhotelemployeesinCyprus.Tourism Management. 41.pp.129-140. Online HospitalityIndustry.2019.[Online].AvailableThrough: <https://study.com/academy/lesson/hospitality-industry-definition-overview.html>. 5