Influence of Macro Environment on Business Organization

Hospitality Business
Strategy

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
PART A...........................................................................................................................................1
Examine the influence of macro environment over business organisation.................................1
Domination of micro environment and capabilities of firm........................................................3
Evaluation of competitive forces of company.............................................................................5
PART B...........................................................................................................................................6
Application of range of concepts and models, interpret and frame strategic planning...............6
CONCLUSION AND RECOMMONDATIONS............................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
A commerce approach indicates to the actions and determinations that an organisation
makes to reach its business objectives and target and are competitive in its business sector. It can
be those activities and plans that are framed and developed by business management of an
establishment to manage and control business and appropriate operations in competitive
atmosphere (Kandampully, Zhang and Jaakkola, 2018). This written report is supported to TUI
Group which is a British-German multinational travel and tourism sector organisation. This
company was incorporated in 1923 and is headquartered in Hannover and Berlin, Germany. This
document will be explaining about impact of external environment, micro environment and
capabilities of business venture. TUI Group has implemented Porter’s Five Forces analysis
concept to evaluate competitive forces and plan of action to deal with rivalry and improve
market position and advantages. Several conceptions and concepts and tactical preparation will
also describe in context of TUI Group.
MAIN BODY
PART A
Examine the influence of macro environment over business organisation
PESTEL Analysis
This analysis defines a framework of macro-environmental components utilised in the
environmental scanning component of strategic management. It is an acronym for a tool used to
find out the external forces facing a company. The brief description of this analysis in reference
to TUI Group is as under:
Political- This component include factors like government interventions, trade
restrictions, political stability of stability, foreign trade, tax policies and many more. In TUI,
Brexit is the key component which highly affects the business in term of making change in tax
policies and government rules and regulations that directly and indirectly affect the commerce of
particular firm in unenthusiastic structure (Bratton and Watson, 2018). Political instability in
many parts of world, maximised threats of terrorism have an important unfavourable infleunce
on TUI.
Economical- It consist diverse component such as interest rate, currency rate, economic
development, exchange rate, inflation or deflation, economical recession, employment and
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