Foundations of Business and Tourism: Management Model and PESTLE Analysis

This report discusses the importance of implementing appropriate management models and analysing external factors for business success. It focuses on the management model and PESTLE analysis in the context of Marriott International Inc. The report explains the McKinsey 7S model and its components, along with several management theories. It also describes the macro environment and the components of PESTLE analysis. The report concludes by emphasising the importance of analysing external factors before developing effective policies and strategies.

FDN005
FOUNDATIONS OF
BUSINESS AND
TOURISM

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Management model................................................................................................................1
Characteristic of management model.....................................................................................3
Management theories..............................................................................................................3
TASK 2............................................................................................................................................4
Macro environment................................................................................................................4
PESTLE analysis....................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business refers to any institution or enterprising entity that engages in infomercial,
manufacturing, or professional practices with the goal of increasing revenues. The primary aim
of a business is to generate profit for interested parties such as stakeholders and owners along
with upholding the corporate social responsibilities. It is critical for the management of business
to manage all of its functioning and operating in a structured way for the purpose
of achieving predetermined goals and objectives. Tourism businesses actively focus on providing
services to expedite pleasure and leisure activities away from the home environment. The chosen
organisation for this report is Marriott International Inc which is an American multinational hotel
founded in 1927 by J. Willard Marriott and Alice Marriott. This report include the discussion of
the management model along with its features. In addition to this, the components of pestle
analysis are explained to describe the macro environment.
TASK 1
Management model
Management models and theories are linked to a variety of issues which include motivation,
leadership and change management. For the purpose of performing business operations in an
effective manner and achieve decided aims and goals, it is critical for the business
organisation to adapt appropriate management models in specific situations and problems.
Several changes occur in a dynamic business environment, so it is critical for businesses to
incorporate a change management model for the purpose of adopting and implementing
the changes along with gaining the competitive benefit.
McKinsey 7S model: The McKinsey 7S model is defined as a management model that consists
of seven elements that allow businesses to make improvements in a well structured manner. It is
a strong framework for the employees who are playing several roles within a
business organisation (AGHAZADEH, and AHMADI, 2017). In today's competitive business
environment, it is critical for Marriott International Inc to make significant changes at all levels
of the organisation for the purpose of gaining the competitive benefit over competitors. Below
mentioned are the several components of the respective management model:
Strategy: Strategy refers to the activities, blueprint or roadmap that provide guidlines to
the businesses for carrying out company functions in a systematic way. Marriott International Inc
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analyses all internal and external business environments before developing appropriate business
strategies and communicating these strategies to all stakeholders so that all strategies can be
implemented in a systematic manner. Hotel gain an advantage related to competition and a
leadership edge by implementing appropriate strategies.
Structure: Structure can be defined as the organizational chart that represents all
business departments that carry out operations of business organisation. It is critical for the
management of Marriott International Inc to implement an appropriate business structure as
it allows for the sharing of information between all departments. The hotel uses flat business
structure as it help the management in making decisionsin a quick manner and all
departments coordinated with each other in an effective and efficient manner.
System: The term "system" refers to the routine business activities carried out by
employees in order to complete assigned tasks on time. Marriott International Inc maintains an
efficient and adaptable business structure which also allow their employees to make quick
decisions that impel the company forward (Ali, Warren, and Mathiassen, 2017). In the business
organisation, several departments work together, so it is critical for the management of business
organisation to maintain an efficient system in order to gain a competitive benefit.
Shared values: Shared values refers to the core values, norms, and beliefs that represent
organisational culture and influence the code of ethics. The core values of Marriott International
Inc is to provide excellent service to their guests which result in providing them an exceptional
and unforgotable experience. The hotel also promotes creativity, honesty, accountability and
trust and confidence, which has led to its progress and expansion.
Style: Styles are related to the leadership style and its influence on organisational
strategic decisions, business performance and motivation of employees. It is important for
Marriott International Inc to adopt supportive or participative leadership style through which
leaders provide support to employees and include them in decision-making process that
motivates them to perform with efficiency and effectiveness.
Staff: Staff refers to the employees' skills and knowledge that allow them to perform
special functions in the best possible way. Marriott International Inc must guarantee a successful
and structured process of recruitment and selection that aids in the hiring of skilled and suitable
staff members who will lead the company to progress (Ireland, and Lent, 2018).
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Skills: Skills are defined as the functionality of an organization's human resources that
enable it to obtain strong position in the market by gaining competitive benefits over
others competitors. Marriott International Inc. must make changes to its learning system for the
purpose of improving the capability and skills.
Characteristic of management model
The Mckinsey 7S model has several distinguishing features that set it apart from other
models (Clarke, 2018). All of these features must be implemented by the management
of Marriott International Inc for the purpose of gaining a competitive edge over others.
 If all components of the framework are linked to the business vision, the organisation can
attain its aims and goals.
 The Mckinsey 7S model brings all departments and processes with each other to drive
growth and profitability.
 Changes in strategy, culture, policy, structure and technology can all have an impact on
management. It enhances the overall business system.
 The Mckinsey 7S model has been tested and used to manage business organisations.
Management theories
Management theories refers to the concepts that proper management techniques, framework and
equipment in modern organisations must enforce in order to effectively manage all operational
processes in a well structured form. Below mentioned are the several management theories:
 Scientific management theory: Frederick Taylor was the first to propose scientific
management theory. According to this strategic management theory, forcing people to
work better is not the best way to achieve desired results. Taylor proposed that
simplifying tasks increases productivity and creativity. Employees at Marriott
International Inc are given job security, which motivates them to work efficiently and
effectively (Chen, Saad, and Yin, 2018). Employees are also given fair wages, which
encourages them to work very hard. It improves employee cooperation and
communication, which improves overall business performance.
 System management theory: It is described as a different approach used by
organisations to control and organize their activities. This theory proposes business as a
human body with various components that collaborate to ensure that all business
operations are performed appropriately. Business growth and prosperity are dependent on
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a variety of factors, including interdependence, synergy, and interrelationships among
various subsystems. Marriott International Inc must assess the trend and occurrences to
identify the optimum management approach. It enables hotels to collaborate on various
programmes for the purpose of achieving predetermined goals and objectives.
 Contingency management theory: This management theory was developed by Fred
Fiedler. This management theory holds that no single management approach is
appropriate for every situation. To choose the better management approach, Marriott
International Inc must examine all internal and external factors. According to this theory,
three variables have an effect on company structure: the technology used, the company
size, and the leadership style (Perera, 2017). Leadership characteristics are important for
managing all circumstances. Leaders must be adaptable in order to implement changes
that will assist businesses in system and enhancing in a competitive business
environment.
TASK 2
Macro environment
The macro environment refers to the collection of all external environment factors which
influence the success of business, strategy and decision-making. These issues happen with the
business but have an impact on its operations in both positively and negatively (Li, 2018). It is
critical for Marriott International Inc to evaluate all macroenvironmental factors and factor them
into policy development so that it can manage operations appropriately and achieve a
competitive edge over others.
PESTLE analysis
PESTLE analysis is an important tool that organisations use to obtain a macro view of an
external business environment. It includes a number of factors that influence business
productivity and effectiveness. PESTLE analysis is used by Marriott International Inc to monitor
and analyse macroenvironmental factors. The following PESTLE analysis factors are explained
in the context of Marriott International Inc:
Technological factors: Various technological advancements and innovations have occurred in
the current business environment, assisting businesses to perform their processes in the best
possible way. The emergence of third-party service providers is the main source of concern for
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hotel chains. Nowadays, booking a hotel through an implicit booking stream raises the total price
of Marriott International Inc while decreasing profitability. It is critical for Marriott to focus on
keeping up with technology in order to reduce the overall operational costs as well as retaining
customers. Marriott International Inc uses cutting-edge technologies, systems, and infrastructural
facilities to provide various opportunities for businesses to preserve consumer trust in hotels by
safeguarding its employees' and customers' information from leaks and hacks (PESTLE analysis,
2022). The hotel also uses social media advertising to help organisations attract more guests.
However, it also poses a threat to businesses, as purchasing and installing technological aspects
in business requires a major investment, raising the overall cost of the business. For instance, at
the time of pandemic, Marriott launches an online booking and payment system, giving the hotel
a competitive advantage over its rivals. It is critical for hotels to analyse all technological
changes that implement this technological diffusion in needed to execute activities with greater
efficiency and productivity.
Social factors: It is one of the factors related to the cultural roles and rules, population growth,
health awareness, career mindset, age, health & security, and allocation. These aspects are
critical in company because they allow company management to know consumer preference.
Marriott Hotel conducts various marketing research for this purpose, understand and interpret
customer habits and preferences. This is one of the factors that can create both opportunities and
threats for businesses. People in the United Kingdom are becoming more aware of their health,
which poses a threat to the Marriott Hotel's business. Because of these factors, businesses must
implement health and safety measures in their hotels (Grassi, and Vallati, 2019). It also raises the
bar for adopting all wellness problems in business, raising the company's costs and having a
negative impact on the firm's profitability. As there is a rising tendency of tour and planning to
travel operations among young people, businesses can attract these tourists to their
establishments for the purpose of selling products and services to these establishments.
Political factors: It is also an important factor for a business because it includes various types of
regulatory oversight over the business and its activities. These factors must be considered in
order for a business to succeed. Due to the pandemic and Brexit, Marriott Hotel is experiencing
issues that have a negative impact on the company's image. It is also important for businesses to
take this into consideration because it creates a good brand image in the minds of the government
and citizens of their country, which leads to business achievement. Marriott hotels benefit from
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these factors in their operations. Political factors pose a threat to business, as the UK government
altered its rules and regulations in response to Brexit and the pandemic, and Marriott Hotel must
also alter its operations. It causes a shortage of employees for the organisation, as well as a
decrease in company sales and profitability. At the same time, these factors present an
opportunity for Marriott Hotel because, following the pandemic, the government of the United
Kingdom is assisting businesses in overcoming losses. It is also critical for the Marriott Hotel to
recover from its losses and expand its operations.
CONCLUSION
From the above report, it has been concluded that It is critical for the management to implement
all business operations in a systematic and efficient manner. There are different managerial
theories and models that can assist businesses in finding appropriate solutions to difficult
situations and leading them to growth and success. It is critical for businesses to analyse their
external factors before developing effective policies and strategies to help them achieve their
goals.
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REFERENCES
Books and Journal
AGHAZADEH, H. and AHMADI, I., 2017. Strategic Management Model of Parent (Holding)
Organization.
Ali, A., Warren, D. and Mathiassen, L., 2017. Cloud-based business services innovation: A risk
management model. International Journal of Information Management, 37(6), pp.639-
649.
Ireland, G.W. and Lent, R.W., 2018. Career exploration and decision-making learning
experiences: A test of the career self-management model. Journal of Vocational
Behavior, 106, pp.37-47.
Clarke, S., 2018. Social Work as Community Development: A management model for social
change. Routledge.
Chen, M., Saad, W. and Yin, C., 2018. Virtual reality over wireless networks: Quality-of-service
model and learning-based resource management. IEEE Transactions on
Communications, 66(11), pp.5621-5635.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Li, S., 2018. A PESTLE Analysis of the Cryptocurrency Industry: An Investment Perspective.
Grassi, A. and Vallati, M., 2019, May. AI to Facilitate Legal Analysis in the PESTLE Context.
In Proceedings of the 2019 Emerging Technology Conference. University of
Huddersfield.
Online
PESTLE analysis, 2022 [Online] Available through < https://pestleanalysis.com/pestle-analysis-
of-marriott/ >
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