Global Business Environment: SWOT Analysis and Impact on Hotel Departments

This report discusses the global business environment and its impact on hotel departments. It includes a SWOT analysis, factors affecting the departments, and strategies to overcome threats and increase productivity.

GLOBAL BUSINESS
ENVIRONMENT

Executive summary
Global business environment is environment which will have the impact on sales and
productivity of company. The report will be discussing swot analyses and factors which will
have impact on the two departments of hotels. External factors which can affect hotel on large
scale are also discussed in report. Report will provide the knowledge regarding strengths and
weakness of company and products.

Table of Contents
INTRODUCTION.......................................................................................................................4
SWOT analysis........................................................................................................................4
Factors which would have impact on the two departments of hotel.......................................5
CONCLUSION............................................................................................................................7
REFERENCES............................................................................................................................7

INTRODUCTION
Global business environment is business environment of different sovereign countries
which influences decision of organisation. Hotel holiday inn is American owned brand of
hotels. It is said to be worlds the largest hotel chain which would include the 1173 hotel all
over the world. Hotel is working from the 1952 and from that time it would provide the
services to customers in the effective way. The report is discussing swot analysis and strength
and weakness of the hotel. It would also include the threats and opportunities in the effective
way. These would affect the services and the sales of the hotel.
SWOT analysis
The swot analysis is focusing on the strength, weakness, opportunities and threats.
Strength
Strengths of the holiday inn has the high brand value in the market and these would
entertain the customers which are visiting hotel on the large scale. Employees are well-trained
and these would be helpful for the hotel because well-trained employees would satisfy
customers. Employee turn over rate is also low in the hotel so these would help hotel to cut the
cost of the training on employees. Hotel has build the brand value in the market and also due
to these hotels has gained the good reputation in the market (Adrian 2017).
Weakness
Hotel has the limited market share and these will be trouble for the hotel in the future.
As the hotel is trading in the hospitality sectors, there are various competitors in the hospitality
industry. Technology is weak and hotel would not use the technology on the large scale. Hotel
is providing services but at the inconsistent service are affecting the customers on large scale.
Inconsistent WIFI and other internet facilities are provided by hotel but these services are
provided in accurate form. These improper services will have effect on customers and so these
will have effect on sales.
Opportunities
Travellers are usually looking for the proper destination which would provide them to
work in the effective way. Hotel would come up with the business traveller and the leisure
travellers which would increase the sale of hotels. Hotel can also use the seasonal offers in
which they would use and provide the service to the customers according to the season
(Agrawal 2016). Holiday inn would update the technology and the also update the elevator

systems which would be beneficial for the hotel which are visiting the hotel on the every time.
These are the opportunities for the hotel which would hotel to increase the business.
Threats
Hotel would increase the cost and the operational cost as well. Hotel would increase
the hotel rates and so it would result in the decrease in the sales. Decline in the tourism would
also affect the sales of hotel because it would also affect the productivity as well. Increase in
competition is affecting the sales and customers are attracted towards many other places which
would entertain the customers by facilities and services. In the hospitality sectors, hotel would
need time to grow and it is the biggest problem for the hotels (Kencana Arjana and Sudiarta
2018).
Factors which would have impact on the two departments of hotel
Basis Marketing Finance
Political factors Political factors are affecting
the marketing department by
the way of the brexit. Due to
Brexit tourist will not be
visiting the hotel and
marketing department would
not be able to do the
marketing of the hotel.
Finance department is affect
because customers are not
visiting in the hotel and these
would affect the sales and the
finance department is
handling the funds of the
hotel.
Economic factors Due to the fluctuation in the
economy tourist will not be
able to plan and visit the big
hotels. So marketing of the
hotels was done but it was of
no use because customer could
not afford to visit the hotel
(Lin 2016).
Customers are not visiting the
hotel and these would affect
the hotel on large scale. Hotel
would change the pricing
strategy for working in the
effective way which would
reduce cost of the services.
Social factors Customers are changing their
preference and these are
Customers changing
preference would affect the

affecting sales of hotel and
productivity as well.
sales of hotel and these would
also affect the finance
department as well.
Technological factors Various attractive
technologies are used by the
competitors and these are
affecting the sales of the hotel.
Company is using the
elevators' system for the
customers and also using
many more strategies and
these would affect the finance
department because they have
to look after financial
statements.
Environmental factors Company is investing more
amount in the csr activities
and marketing team is using
these for the marketing of the
hotel. It would help marketing
department to attract
customers towards hotel.
Effective waste management
techniques would help hotel
to look after the activities and
these would help finance
department to mange the
activities.
Legal factors As the hotel is running in the
hospitality industry it would
affect the sales and the rules
and regulation. which are
levied by the government on
the hotel is affecting the
marketing department and the
services which are delivered in
hotel.
Rules and regulation would
also affect the sales of hotel
and these would directly
affect the finance department.
These would rules would
affect hotel because rules are
made for protecting the
customers but it they are
levied by the government and
these would have the negative
impression of hotel on the
customers.

CONCLUSION
From the above part it will be concluded that global environment is affecting
companies. The hotels can use strengths and try to overcome weakness, in these opportunities
can be grabbed by company and threats can be overcomed by company for working in
effective way. Company can overcome threat by way of delivering quality services which can
attract customers in effective way. Hotel can also increase the effective strategies for attracting
tourist which will help them to fight competition. These strategies will help hotel to overcome
threats and increase productivity.

REFERENCES
Books and journals
Adrian, Ș.C., 2017. SWOT Analysis of the Romanian Tourism Market Component of the
Marketing Plan. Ovidius University Annals, Economic Sciences Series. 17(2).
pp.472-476.
Agrawal, V., 2016. A review of Indian tourism industry with SWOT analysis. Journal of
Tourism and Hospitality. 5(1). pp.1-4.
Kencana, N.W.P.A., Arjana, I.W.B. and Sudiarta, M., 2018. OPPORTUNITIES AND
THREATS TO INCREASE ROOM OCCUPANCY HOLIDAY INN RESORT BALI
BENOA. Journal of Applied Sciences in Travel and Hospitality. 1(3). p.263.
Lin, X., 2016. Strategy analysis of a boutique and lifestyle hotel: a SWOT analysis (Doctoral
dissertation, California State Polytechnic University, Pomona).