Impact of Macro Environment on Crowne Plaza: PESTLE Analysis

INTRODUCTION
Business strategy is based on the set of competitive move and actions that mainly used
by organization to influence existing customers (Ginindza and Tichaawa, 2019). To increase
the overall business productivity as well as profitability in global marketplace. The report is
mainly focused on the macro environment which will influence on the overall business
capabilities. The report will be selecting the Crowne Plaza” for analyzing the business by
using PESTLE analysis framework. It provides the better idea about the organization whereas
how macro environment will impact on the organization capabilities. For business for
competitive analysis, it will be considerations of Porter’s five force model for determine the
existing competition within hospitality industry. At last, it will explain the different theories,
concept and model that help for providing the better strategic direction of “Crowne Plaza” in
business expansion.

LO1 Analyse the impact and influence which the macro environment has on a
hospitality organisation and its business strategies
Every organisation is highly affected by its external factors. This is because they exist outside
business and are not controlled and managed by it. Also, business has to work within a
specific boundary (Wang, and Wang, 2020). So, it is necessary to identify those external
factors which impact highly on organization. With that it becomes easy to develop strategies
and minimise impact. In order to do so there are several concept and model available.
likewise, as IHG operate in many countries so some factors as which directly affect growth of
hotel. (Islami, Mustafa and Latkovikj, 2020).
PESTLE is used to find out outside factors that impact on business operations. This
includes political, legal, social etc factors which are described as below
Political- It consists of change of laws and regulations, trade policy, government etc. (Wang,
and Wang, 2020). As IHG operate at global level. they have to follow rule and regulation.
However, in many countries political condition is unstable. So, it is directly affecting on
growth of Crowne Plaza hotel because with change in government they have to make
change in their policy and laws.
Economic-. Any change in economic growth highly effect on Crowne Plaza hotel business
operations. the factors are GDP, traffic rate currency rate etc (Lauer, 2019). thus, if there is
any change in it then it directly effect on growth of Crowne Plaza hotel (Kamran, and
Mudassar, 2020). IHG operate in countries like US, UK, Germany, etc. so they have to
depend on economic growth of that country. due to covid 19 many hotels such as Hyatt,
Hilton, etc. are affected as their sales and profits are declined due to lock down. similarly,
Crowne Plaza hotel is also affected in same way as due to lock down sales are declined
(Lauer, 2019). For example- rise in income of Indian people will allow them to spend leisure
time in hotel (Lauer, 2019)
Social- they are factors like needs, lifestyle of people. However, as Crowne Plaza operations
are related to hotel, they provide various types of services (Turner and Hesford, 2019). But
now people needs has changed. This is because of rise in income level. People require luxury
services and have become health conscious due to pandemic. Thus, it will highly affected on
business operations. due to covid 19 hotel needs to maintain hygiene and cleanliness (Tian
and Cao, 2019).

Technological- It has affected on Crowne Plaza operations in positive way. Moreover, in
hotel industry technological systems are installed like AI, robots. etc So, with more use of
technology it will ease in doing of operations in IHG. Through that, hotel will be able to
expand and provide service to more people. Alongside, the quality of services will be
maintained, and this will be useful in gaining their trust and satisfaction (Lauer, 2019) for
example – use of AI will maintain service quality level thus customer satisfaction is gained.
Legal- the factors includes health and safety, employment law, wages law etc. So, any
change in these highly impact on business operations (Tian and Cao, 2019). Moreover, as
IHG operate in at global level they have to follow different laws. However, many
governments is focusing on changing law to provide more health and safety to staff in hotel.
Therefore, it will highly effect on Crowne Plaza. They will have to form new policy and
procedures and install different health and safety equipment. Hence, training will be
provided, and staff has to work in different way, so it will effect on operations (Falcone and
Imbriani, 2020). for example- health and safety law affect operation as hotel has to ensure
proper safety to staff.
Environmental- it include factors related to change in CSR policy, etc which directly
influence Crowne Plaza hotel (Falcone and Imbriani, 2020) In recent times, due to covid 19
government is focused on cleaning of environment. However, as IHG operate in hotel
industry they will have to follow new policies and laws. Due to covid 19, hotels such as
Marriott, Hilton, etc. is affected as they have to maintain clean and green environment. also,
they have to follow new laws and policies to prevent covid infection. likewise, Crowne Plaza
hotel is impacted in same way. they have started greener stay program in many countries
(Turner and Hesford, 2019).
Therefore, it is stated that there are many external factors which will effect on Crowne Plaza
operations. They need to develop strategies for it. By that it will be easy to achieve goals and
expand in new market.
SWOT- this is a model which is used to identify strengths, weaknesses, opportunities, and
threats.
Strengths
The employee working in it are highly trained and experienced. Crowne Plaza is having
resources as trained work force which is motivated as well. The automation of service has
enabled in maintaining consistency with quality in services. So, it has enabled them to
increase and decrease service as per market demand (Turner and Hesford, 2019).