Assessing the External Environment of the Hospitality Organization in the UK

This report analyzes the current external environment in which a hospitality organization operates in the UK, using the PESTEL analysis framework. It discusses the impact of political, economic, social, technological, environmental, and legal factors on the organization. The report also provides recommendations for improving customer relationship management and addressing the challenges posed by Brexit and COVID-19.

Hospitality

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1 ................................................................................................................................................3
Assess the current external environment which hospitality organisation is currently operating
within UK........................................................................................................................................3
TASK 2 ................................................................................................................................................7
Identify a solution to one specific barrier or challenge the hospitality organisation currently face 7
CONCLUSION....................................................................................................................................8
REFERENCES.....................................................................................................................................9
Books & Journal:.............................................................................................................................9

INTRODUCTION
Market is becoming wider and broader which is giving rise to competition at rapid scale.
Hospitality sector is changing with entry of new businesses and evolving with time period.
(Papargyropoulou, 2016). Premier Inn, the largest hotel chain headquartered in UK. The hotel is
located at various locations and is owned by White bread. This report comprises of external factors,
recommendations and challenges. Business environment is necessary to be analysed within the
business so that so that strategies are carried out in proper manner. The firm also focuses on these
environmental factors through which they are able to achieve goals and objectives without facing
any problem or issues. The report gives a brief information about the factors affecting business and
challenges faced by them in current situation. Market research is required for and done before
implementing the framework.
TASK 1
Assess the current external environment which hospitality organisation is currently operating within
UK
Hospitality organisations are rapidly increasing & it is becoming difficult to operate business
in smooth manner. By examining environment properly, firm is able to make decision in most
efficient way. In relevance with Premier Inn, which is they have affected by external environment
at depth which is also distracting them from their core activities. In UK, major development of
economy is because of increasing rising of hospitality sector as they give rise to tourist and leisure
at wider scale. So, to determine or analyse the external environment the chosen entity uses PESTEL
Analysis. In this sector, it is crucial to be aware about such elements so that everything is carried
out in appropriate manner.
PESTEL Analysis-
It is a marketing tool used by organisations to examine and analyse external factors within
the market that have impact on enterprise business operations or functions (Boasson, 2016). It is
time consuming process but is to be carried out in most effective manner so that strategies or tactics
are implemented accordingly. In relation with selected entity, they use this after properly scanning
the environment. By using this framework, it is easier to do planning, implementation for further
processes.
To implement this, a deep level of market research is required to gain correct information. This
includes several components or say factors which are discussed below-
Political factor- These are defined as intensity of government to involve or inter fare within
the economy. It is essential for firm to focus on such factors so that activities and functions are
carried out with proper considerations. In context with Premier Inn, they employee 2.3 million

people & contribute over £ 35 billion in gross tax revenues. As it generates 7% of total employment
, hotel is ahead in transport, financial services etc. Thus, they are generates a huge portion of profit
to government. Further, impact of Brexit is making it difficult for them to run their operations
across the globe. It is creating a huge problem for them because planning is to be done again and
again. This requires resources, capital etc. which have to be used by organisation whenever there is
change in Brexit law.
Advantages-
Act as assistance- This act as guidelines as well as assistance for meeting up with
legislation.
Disadvantages-
Involvement of government- In this, involvement of government is more & makes it slow
for entity to focus on their core activities.
Economic factors- These refers to those elements which provide which are concerned with
financial, money, capital etc. and in which involvement of government is more (Appiah, 2018).
These variables can be national, global or regional. They include various kinds of variables such as
exchange rates, interest rates, taxes, inflation, deflation etc. In relation with selected entity, due to
current economic recession they the hospitality sector is facing a huge problem as because people
have to think before spending a amount on something. This is making difficult for entity to operate
in proper way. This element slows down the growth of business at deeper scale. Thus, manager
need to be more active so that problems are being managed & handled.
Advantages-
It help firm to be aware about all changing rates or stability of economy so that everything
further processes are carried out.
Disadvantages-
This slows down the growth of business at larger scale.
Social factor- These are considered as most crucial one because they include attitude,
behaviour, religion, standard of living etc. Such variables affects individual thinking & accordingly
decisions are made (Shamim, 2017). So, selected hotel is affected by such variables it influence
consumer decision making in terms of strong brand products, ease accessibility, responsive to
customer demands etc. Premier Inn focused on customer satisfaction and also provide them with
guarantee of 100 % refund of their money. It assist firm to understand and examine the actual need
of their target customers so that goals & objectives are achieved appropriately. By doing this, they
are also encouraging other hotels to enhance their by benefiting of end users.
Benefits-
It increases goodwill of enterprise & make them recognisable within the market.

Drawbacks-
It is cost expensive approach and requires deep level of market research.
Technological factors- Then further comes the technological element which states that
hospitality sector, technology is used for reservation of rooms, feedbacks and overall handling of
management activities (Wan, 2017). This involves use of advances hardware or software, artificial
intelligence etc. Therefore, in reference with selected enterprise they also use IT services in their
management with motive of providing better services to them. Through use of technology they are
also able to track and target their potential customers. Because it used as promotion technique &
with their online website they make ensure that it is user friendly as well as mobile friendly. The
media technology has been always a great source through which they develop their business
operations. The increase in use of technology has given rise to media technology.
Benefits-
This help organisation to update their online management system through which it is easier
to track or identify the end users.
Drawbacks-
To use technology effectively, skilled employees are required who have technical
knowledge.
Environmental- This element is necessary to be focused so that sustainability of entity in
increases for longer period of time (Zafra-Gómez, 2018). It comprises of green agenda, waste
management, Corporate social responsibility. It is crucial for entity to focus on CSR so that
customers get attracted towards business because it is often seen that customers get influences by
those enterprises who are pay attention to environmental benefit. Thus, in relation with chosen
entity they implement campaigns and programmes for example- good together programme was
established with aiming of developing CSR strategy. This CRS strategy mainly targets
environment, health, community & customers. These environmental components are to be used
with aim of showing concern for society.
Advantages-
The environmental element assist in creating awareness of CSR which reflects the ethics and
principles of chosen organisation.
Limitations-
Proper guidelines are to be maintained otherwise it goodwill will have a negative impact.
Legal factor- These comprises of health & safety, equal opportunity, standards or
principles, rights or laws etc. It is is essential for companies to be aware about these legal variables
so that issue does not arises. In context with given organisation, they the legal team of hotel is
always aware about changing laws in UK. Moreover, to maintain high standards and avoid or

eliminate risks they have developed responsible sourcing policy which reflects the minimum
standards as well as principles of Premier Inn. With help of their legal team, organisation is able to
manage as well as maintain a positive relationship with government & other legal parties.
Benefits-
It help company to perform their operations under the law and legislations (Lu, 2019).
Drawbacks-
Company have to careful every time whenever there is need of implementing new policies
or procedures.
After a brief analysis of matter it has been seen that the stated six external environmental
factors affects the business at wider level. The manager of hotel make assures that everything is
being done in most efficient way so that decision making process is carried out accordingly. With
help of using PESTEL Analysis , it become easy to understand such elements with appropriate level
of understanding or measures. Through this, they implement strategies for their hotel & it is easier
to identify potential customers as well as market. Furthermore, research is done so that scanning of
market is done effectively without facing any issues (Bower, 2018).
Recommendations-
Customer relationship management- It is recommended to Premier Inn that they should
focus on their guest as well as customers so that positive relationship is developed between both the
parties. Without managing CRM, it is not possible for firm to achieve their goals & objectives
within a period of time. It is to be done with end users point of view rather than business point of
view. If customer relationship is not maintained then it is not possible to retain them for longer
period of time. They can improve CRM by solving customers problems, focusing on their
feedbacks, preferences, delivering total quality and satisfaction to them. Through this, they can also
develop their sales as satisfactory end users will promote their product or hotel services by positive
word of mouth. By properly analysing this recommendation this will give them benefit to use their
manpower in such a way that all challenges are solved.
So, by analysing the above recommendations it is seen that they need to be more focused
towards CRM and strategy so that sales increases at higher level. It help them to use proper
measures for organisation without wasting any resources. Furthermore, it is needed to be done at
regular level through which consistency is maintained with end users.

TASK 2
Identify a solution to one specific barrier or challenge the hospitality organisation currently face
` Risks and challenges are part of business which are needed to be managed with
appropriate considerations. In relevance with selected firm, currently they are facing is Brexit. No
corporation can ignore the risks as it is part of business. To identify risks, manager conducts or use
various techniques such as brainstorming, group discussion, meetings etc.
Brexit & Covid 19 - Problem
This is the major problem which is being faced by hotel because it is seen that with
uncertainty of Brexit, they have major fall-down of their bookings, and which contribute more
business of hotel. It has decreases the sales and revenue percentage of entity. Moreover, with
current market situation of Covid 19, their profit has gone down with increased number as
customers prefer to stay home(Ayyagari, 2019). Also, it has created a significant impact on their
market as well as services. It will took time to up rise the market again.
Solution-
The issue faced by given organisation has created a negative impact on their end users as
well as business. The manager of hotel should use effective strategies so that all problems are
solved at once glance. The solution for the problem is that they should focus on their political
components which is their strongest part. For example- they can employee more individuals &
reduce unemployment rate at larger scale. Also, by taking precautions during Covid 19 will help
them to fulfil their corporate social responsibility.
Therefore by appropriately examining the environmental factor of PESTEL will assist them
in handling of facing issue in current situation. It is necessary to focus on this challenge because
neglecting it will cause a huge further issues. Planning and decision making is needed to be done for
dealing with uncertainty of events (Köseoglu, 2018).

CONCLUSION
After a brief analysis of above report, it has been concluded that it is crucial to carry out
hospitality business in most proper way because it is concerned with satisfaction, quality, end users
demands etc. Discussion have been made about external environmental factors which affects the
business operations as well as activities. Then further, framework is used such as PESTEL Analysis
in brief which gives detailed information regarding the components affecting hospitality entity. This
is carried out by manager or superiors who are responsible for accomplishing market accessibility.
Then, issues related with organisation is explained so that decision making is carried out in crucial
way. Moreover, recommendation is given for identified problem which assist in selecting
appropriate option for current facing issues. Therefore, it is seen that without understanding these
components, it is difficult to run operations, functions and other activities.

REFERENCES
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