PESTLE Analysis and Business Strategy

This assignment focuses on the PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis framework and its significance in formulating strategic business decisions. Students are tasked with understanding how PESTLE factors influence different sectors and apply this knowledge to analyze a chosen industry or company. The goal is to demonstrate the ability to identify key trends, potential challenges, and opportunities presented by the external environment and leverage them for successful business planning.

Individual report
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Table of Contents
Introduction................................................................................................................................4
Overview of Riviera travel.........................................................................................................4
Employee engagement analysis.................................................................................................4
Analysis of Riviera travel based on Mckinsey’s model.............................................................4
SWOT analysis...........................................................................................................................6
External......................................................................................................................................7
Marketing strategy.....................................................................................................................7
Conclusion..................................................................................................................................8
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Introduction
In modern era travel and tourism is become one of the fastest growing industry. Due to
increase in demand companies are using new marketing strategy and providing high-quality
services to customers in order to gain competitive advantage. The present report is based on
Riviera travel who offers a variety of tour package to its large number of customers. The
purpose of this report is to analysis internal and external environment of the firm. Further, it
will cover different types of marketing strategy that is used by Riviera travel for gaining
competitive advantage.
Overview of Riviera travel
Riviera travel is considered as one of the leading travel group in the world which is
famous for attractive tour packages at a different destination. It has been considered as one of
the trustworthy and reliable travel group that offers travel package to its customers. Riviera
travel provides its customers special holiday package at beautiful and welcoming tourist
destinations. Along with this company also make sure that its holiday package benefits local
people and also protect the environment in order to maintain, viability, quality and
desirability of their products for a longer time. Further, the company is also involved in
different types of project in different parts of the world that support communities and reduces
negative environmental impacts (Armstrong, Kotler and Brennan, 2015). Riviera stakeholders in
destinations have an important role in order to play in sustainable tourism. It works with
different segments for providing a value added services to the customers.
Employee engagement analysis
At Riviera travel employees are highly engages in different types of organisational
activities and conduct to the inherited cultures and values of the concern (Bull, Jobstvogt and
Carter-Silk, 2016). In the organisation different department work together and effective
interrelation and communication are carried out by the management so that each and every
activity can be carried out successfully.
Analysis of Riviera travel based on Mckinsey’s model.
In the Mickinsey’s model the management work on the basis of set strategies incorporating
the views all employees in order to accomplish set goals. Step of Micknesy model is as
follows
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Structure
The organisational structure of Riviera travel is identified as a vertically integrated with a top
management structure. Due to this type of structure all the decision are made by top
management and percolated downward to various organisational level (Menon, Bharadwaj
and Edison, 2015).
System
Riviera travel is based on an integrated business model which is incorporated the designs of
both individual and packaged tour and assist the consumers in terms of financing and
ensuring their own activities (Atighechian, Malek and Jahangiri, 2016). The main focus of
the firm is to increase customer base with help of operational activities and online based. For
this purpose, Riviera travel trained its staff member so that they can deliver quality services
to their customers (Baker, 2014).
Style
The management style at Riviera travel is that it is highly involved in encouraging diversity
in the workplace. Its employees are of different ethnic background, age, gender and culture.
Apart from this, management styles are mainly concern with promoting employees on the
basis of merits and performance (Zalenge, Blanchard and Gondwe, 2014.). No discrimination
was taking place while promoting employees.
Staff
Human resources department of Riviera travel focuses on recruiting talented and highly
skilled workforce so that they can make innovative products and services for customers.
Along with this company also motivate them to work hard by providing rewards and different
types of benefits.
Skills
The skills of Riviera travel employees increased through different effective training session
and performance management program. Along with this feedbacks are provided to employees
so that they can improve their skills and work hard for the firm (Bohari, Hin and Fuad, 2017).
Strategy
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The main business strategy of the firm is to train its employees and provide value added
services to customers in order to retain them for a longer period of time. Along with this firm
also take feedback from its customers and modify products accordingly in order to satisfy its
customers.
Shared values
The higher management body of Riviera travel works on sending important information and
strategic value to its employees at different levels. Through the use of this function, the
company can accomplish its goal effectively and efficiently.
SWOT analysis
Strength
Riviera travel has a strong brand image and it provides high-quality services to its customers
in all over the world. It also provides various tour packages to its different types of customers
according to their needs and wants (McKinney and Marconi, 2016). Along with this company
is financially strong and it has the ability to meet the needs and wants of customers. Company
online presence is also very strong that help them in creating a brand image in the market.
Weakness
One of its weaknesses is that it has a high number of a competitor due to which it becomes
difficult to enhance sale and profit. Further due to economic breakdown company has
experienced a huge number of break down and suffer from the loss. Apart from this high
price of tour package also become issues for the firm because many of its customers switch to
other brand and its impact its sales (McKinney, Bezdenejnih-Snyder and Buurman, 2015).
Opportunity
Riviera travel has the opportunity to use advanced technology in order to make different and
innovative products for its customers (Winer, Cervone and Nadorff, 2016). Along with this
company can also expand itself into different countries and help to consumer experience the
pleasure of traveling. New technology such as online booking help customer to book tickets
online which is also one of the great opportunity of Riviera travel.
Threat
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The competitor is one of the threats which are doing equally same in the travel and tourism
sectors. Due to many companies, customers have the choice to choose one option that can
become a threat to Riviera travel. Apart from this, the change in customer behaviour is also
one of the threats to the firm. To protect the environment is important factor and it is a
responsibility if the firm
External analysis
Political factor: Government rules and regulation can also affect the firm and its activity. It is
important for Riviera company to follow all the rules and regulation made by the government
so that they do not face issues while carrying out operational activity. Further redundancy can
have an adverse effect on morale and motivation of employees (Islam and Mamun, 2017). If
government increase the income tax rate then it becomes difficult for the firm to earn a profit.
Economical factor: Economic factor can influence the demand, price, profit, holiday package
etc to the firm. Further due to inflation spending power of customers get low and it can affect
the sales of the firm.
Social factor: Redundancies and other government cuts will potentially result in limited
disposable income for consumers (Barba, Sánchez and Anthony, 2016). It is because if the
disposable income of people decreases then the customer does not spend much on travelling
which can directly impact the sales and profit of Riviera travel. Along with this there is also
change in demand of customers due to which it is not easy for the firm to fulfill them on time
which can impact the firm.
Technological factor: There are many new technologies introduced in the market which can
be used by the firm with respect to making new and innovative products and services. With
the use of this technology, Riviera Company can modify its product and increase sales. For
example through online website customers can easily get information related to the new tour
package and they can also book online tickets.
Legal factor: Legal factors lead to impact the firm both negatively as well as positively. It is
essential for Riveria to travel to follow all the rules and regulation made by the government in
order to carry out its business activities successfully (Singh, 2016). For instance, the company
should follow health and safety legislation that so that its employees can work in safe
environment.
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Environmental factor: It is essential for Riviera travel to ensure sustainability and provide
tour packages that are environmentally friendly. Along with this, it is essential for the
company to focus on recycling the wastage and ensure that tourist does not damage the
destination.
Marketing strategy
Marketing mix elements help Riviera travel help in grabbing the attention of a large number
of customers and increase sales.
Products: Riviera travel products and services are different from its competitor. Along with
this, it modifies products and services on the basis of customer feedback which helps in
differentiating products from its competitor (Atighechian, Malek and Jahangiri, 2016).
Along with this company also focus on providing value added services with its products that
help in grabbing the attention of a large number of customers.
Price: At the time of keeping a price of tour package and services company need to be
careful. There are different types of pricing strategy that can be used by the firm in order to
sale products and services. Skimming pricing in which company can keep its price higher
first time and then lower it over time (Zalenge, Blanchard and Gondwe, 2014). Hence it is a
temporal version of price discrimination. Further, in penetration pricing strategy it refers to a
marketing strategy that is used for attracting customers to new products and services.
However, Riviera travel is using skimming pricing strategy in which it first kept the price of
its product high then lower it after some time. It is one of the effective strategies because the
company is providing innovative products and services due to which people are ready to pay
a high price.
Place: Tourist can easily book a ticket from its various distribution channel. Along with this,
its company is located at the place where people can easily visit for making a purchase. The
company also have a strong online presence and people who want to know its tour package or
buy products and services can easily visit the company websites (Baker, 2014).
Promotion: There are different types of the promotional method which are used by Riviera
travel such as an advertisement on newspaper, Television, social networking sites etc. Among
all of them company, the main focus is on using social networking sites that help in grabbing
the attention of a large number of customers and make them aware of the different tour
package. There is large number of people who are using Facebook, Twitter and other social
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networking sites for promoting the products and services. Therefore it can be stated that it is
one of the effective technique with respect to promoting products and services.
Conclusion
From the above report, it is concluded that Riviera travel is putting high efforts in
order to make a good position in the market and for gaining competitive advantage.
Management of the firm is effective as they focus on hiring skilled candidates and also
provide training to employees so that they can make quality products and services for
customers. There are different types of factors that are affecting the firm such as political
environment etc. it is essential for the firm to take steps so that company can easily survive in
competitive marketing. Further, it is concluded that with the use of marketing strategy
company can easily grab the attention of a large number of customers and increase sales.
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