Impact of Macro Environment and Strategies on Best Western Premier

Hospitality business
strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1: Evaluate the impact of macro environment and its strategies on Best western premier......1
P2: Internal environment and capabilities of respective organisation.......................................4
TASK3.............................................................................................................................................7
P3: Analysis of Best Western Premier by using Porter's five forces model...............................7
TASK4...........................................................................................................................................10
P4: Apply the concepts, theories and models & also provide a strategic plan for respective
organisation...............................................................................................................................10
CONCLUSION & RECOMMENDATION:.................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business Strategy is defined as combination of all actions and decisions execute by
business to achieve its goals and to secure competitive position in market segments. It is a master
plan that is implementing by company to fixed aggressive position in market, serve customers,
carry on its functioning, and achieve desired goals of business efficiently and effectively
(What Is Business Strategy?, 2020). It is a backbone of business which works as roadmap which
leads to achieve desired goals.
Hospitality is defined as relationship between a host and guest in which host receives
guest with goodwill, including entertainment and reception for visitors, guest or tourists. It is a
way by which people treat others called as service of welcoming guests like in Hotels.
Best Western Premier is a unique designed hotel which offers various services to
travellers worldwide like accommodations, first rate amenities, exceptional services provide to
guest. In 2002, it was launched by Western International in Europe and Asia (BEST WESTERN
PREMIER, 2020).
This report is based on business strategies for making strong position and ensuring future
growth of business. VRIO analysis that is helpful for carry out internal analysis is also discussed
in this report. In addition to this, porter five forces along with strategic management is also
covered in this.
TASK1
P1: Evaluate the impact of macro environment and its strategies on Best western premier
Pestle analysis
It is defined as a marketing principle tool used by business entities to track environmental
factors of in which they are planning to introduce and launch a innovative product, services or a
project (PESTLE Analysis, 2020). In terms of Best western premier macro environmental factors
are discussed below:
Political: It consist of the factors such as- governmental rules and regulations, tax rates,
political stability, foreign trade policy, labour laws, terrorism & military, fiscal policy and more
which affects the performance of a company in positive or negative ways. In terms of Best
Western has negative impact due to slowing economy of nation after pandemic Covid-19 which
includes government not able to allow tax rebates for business firms. Due to Covid-19 political
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factor of different countries affected demand of hotel and resorts based on governmental ban on
travelling and social gatherings (Barbosa, de Oliveira and 2015). On the other hand UK is most
stable country in terms of politics that reflects growth opportunities for respective firm.
Economical: This factor includes interest rates, inflation, taxation, economic growth,
wages rates and many more that has some positive and negative influences on business entities.
Economic conditions are not good because of recession period that creates declining demand of
respective hotel as per slower economic growth as well as Impact of Covid-19 pandemic. which leads to
negative impact on the position of respective organisation. Best western has several hotels and
resort in different counties like UK, US, Mexico, Australia, New Zealand and more that doesn’t
effective its position shows positive aspect of firm that has significant impact in terms of
generating employment opportunities.
Another reason of this is pandemic situation whit Covid 19 facing by whole country which
results in slower economic growth of UK. This leads to slower the demand for hotels due to
governmental restrictions for public gatherings that has negative impact over respective hotel.
For instance hotels are closing down due to negative impacts after pandemic situation. Thus, it is
suggested for respective hotel to provide effective and efficient services to its customers in order
to secure its position.
Social-cultural: It is also an important factor of pestle analysis which has huge impact on
the position and future growth of any business. It consist of elements such as- population growth,
buying habits of customers, health consciousness of people, beliefs and values of buyers,
regional diversification etc. that influence and affects position and growth of company (Fraser
2019). due to impacts of Covid- 19 people cannot socialise and stops travelling that leads
negative impact over firm’s position thus in order to face these challenges respective
organisation should follow governmental instruction and focus on serving customer needs with
proper safety and security measures. Respective organisation should also concentrate on
customer satisfaction strategy based on hygiene and consumer protection needs after advesre
impacts of pandemic. Social factor of UK affects Best western premier in significant ways due to
effective and reliable services of given business, changing buying habits of UK consumers from
purchasing premium to essential products & services available at lower prices.
Technological: In this factor of pestle analysis includes emerging technologies,
communication modes with target market, distribution of goods & services, use of information
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