PESTLE Analysis of Grosvenor House and Cairn Hotel

This presentation provides a PESTLE analysis of Grosvenor House and Cairn Hotel, examining the political, economic, social, technological, legal, and environmental factors affecting these companies. It also includes a SWOT analysis highlighting the strengths, weaknesses, opportunities, and threats faced by each hotel.

Contemporary Hospitality Industry
P6 and P7

Introduction
 PESTLE analysis is carried out by a
company to gain knowledge of its macro
environmental environment which is
uncontrollable in nature. Below mentioned
is PESTLE analysis of Grosvenor House
and Cairn Hotel:-

Introduction to Companies
 Grosvenor House is a lavish five star hotel located on Park Lane in
Mayfair area of London. This entity offers luxurious suites as well as
rooms along with fitness and dining facilities.
 Cairn Hotel contains traditionally furnished bedrooms consisting of
every modern facility that ensures comfort and ease for customers.
From this location, Harrogate’s center is at a walk of 5 minutes.

Political factor
 The government or political system of UK has been stable over years
owing to which its policies are consistent from a long period of time.
This fosters entity to carry out its operations in a feasible manner
 Cairn Hotel stands the risk of terrorism, political instability and adverse
international relations. This may affect the goodwill and positioning of
entity in market place. Thus, it is essential for the organization to
develop effective policies taking this into account.

Economic factors
 The economic system of United Kingdom is very strong and effective
which fosters the growth of enterprises that are innovative and unique
such as Grosvenor House. This acts as an opportunity for the respective
hotel to enhance its market positioning as well as profitability.
 Cairn Hotel can also make use of the strong economy of UK to feasibly
enhance its sales as well as profits. Factors such as inflation, fluctuation
in foreign exchange rates, recession may tend to act as adverse aspects
for this organisation.

Social factors
 This consists of aspects such as consumer lifestyles, trends, behaviours
etc. Grosvenor House Hotel is a lavish hotel that takes into account
needs and preferences of people of UK & thus provide services which
possess capability as well as potential to provide satisfaction to them.
 The demands and requirements of customers are rapidly changing and
thus an anticipation of demand by a rival firm before Cairn Hotel may
act as a threat for the sustainability of organisation. Thus, the
management of hotel should constantly carry out research to
acknowledge customer needs and wants.

Technological factors
 Grosvenor House Hotel makes use of
innovations within check-ins, check-outs to
attract the customer base. This helps the entity
in enhancing its revenues as well as profits in
marketplace.
 The bookings for Cairn hotel can be easily
made by guests over online channels whereby
numerous payment options are available out of
which the most feasible one can be opted by
the guest.

Legal factors
 This consists of laws and legislations such as employment, consumer,
health etc. Grosvenor House Hotel abides by all the laws in order to
avoid any kind of penalty or fines. This provides assistance to entity in
gaining support from customers as well as government.
 In case Cairn Hotel gets indulged in an unethical or illegal activity, this
may lead to negative consequences for the entity and it may even lose
its brand image and positioning within United Kingdom.

Environmental factors
 This is concerned with protection of environment because they are
tourist attractions. Grosvenor House Hotel operates activities in a
manner such that no harm is caused to the environment or community.
This inflates the sales and profits of organization in market place by
enhancing the loyal customer base as they people have now become
aware of environmental concerns.
 By operating in an eco-friendly manner, Cairn hotel also aims at
gaining recognition from customers as well as governmental bodies.

SWOT of Grosvenor House and Cairn Hotel
Strengths
 Strong domestic presence: Grosvenor House Hotel has a strong market presence
within the luxury hospitality sector of UK having a large base of loyal guests.
 Focus upon innovation: Cairn Hotel emphasizes upon innovation with a view to
attract large number of customers.
Weaknesses
 Limited market presence: Grosvenor House Hotel has a limited market presence
owing to which its customer base is also confined.
 Lesser growth: The growth of Cairn hotel is limited as it has confined its operations to
the territory of UK only.

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Opportunities
 Shifts in consumer behaviour: The changes taking place within lifestyles and trends
of consumers have generated a lucrative opportunity for Grosvenor House Hotel to
provide facilities which meet the needs and demands of consumers.
 Access to new markets: Cairn hotel possess the potential as well as capability to
expand its operations to other lucrative and emerging markets.
Threats
 Huge competition: Grosvenor House Hotel faces immense competition owing to
presence of of hotels such as Hyatt, Four Seasons, Hilton, Marriott, Holiday Inn, etc.
 Adverse shift in customer choices: This may lead to adversities for Cairn hotel as the
market share as well as the initiative to bring innovation is limited.

Conclusion
 On the basis of above discussion made in PPT, it has been concluded
that hospitality sector largely contributes in development of nation.
PESTLE analysis demonstrates that macro environmental factors can be
favourable as well as unfavourable for the respective organisation.
SWOT implies that entity focuses upon innovation yet it faces threat
from the presence of rival firms.

REFERENCES
 Eid, R., 2015. Integrating Muslim customer perceived value,
satisfaction, loyalty and retention in the tourism industry: An empirical
study. International Journal of Tourism Research.17(3). pp.249-260.
 García-Villaverde, P. M., and. et. al., 2017. Determinants of radical
innovation in clustered firms of the hospitality and tourism industry.
International Journal of Hospitality Management.61. pp.45-58.