Portfolio: Macro and Micro Environmental Analysis in Hospitality Industry

PORTFOLIO

Table of Contents
INTRODUCTION ..........................................................................................................................3
1. Macro environmental analysis................................................................................................3
2. Micro environment analysis ...................................................................................................5
3. Core challenges and opportunities..........................................................................................8
4. Conclusion...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Portfolio is defined as management that requires to manage the investment effectively.
This is one of the crucial components for managing an investment effectively (Gupta, Gupta and
Gupta, 2019). Thus, present report will be based on hospitality industry. It is field that provides
services inclusive of lodging, drink service, event planning, food and transportation facilities etc.
However, the report will be based on new start up as Exquisite stay. For effective set up
study will conduct PESTLE analysis, Porter's 5 forces analysis and micro analysis will be
collected with help of consumer and competitors analysis. Additionally, challenges and
opportunities will be defined so that better market analysis can be conducted.
1. Macro environmental analysis
There are several things that have bought major changes to industry. Thus, technological
innovation, political instability, changes in expectation of customers and some another
components have influenced the working conditions in globally manner. Thus, PESTLE will be
conducted in following manner as are-
Political factor- This has direct and deep impact on hospitality industry. Thus, the main target of
hotel industry is to attract the international tourism that will host various level of different
properties (Racz and et.al., 2018). Therefore, hotel industry is the backbone of the legal
authorities and government also provide assistance to sustain in competitive world. Thus, small
steps taken by government has ultimate impact on growth and sustainability of industry. For ex-
attack of Taj and Oberoi hotel attack has substantially dropped the rate of tourism.
Economic factor- The components as taxation changes, inflation, economic growth, interest
rates and exchange rates are the crucial components that affects the working of industry.
Therefore, economic changes leave a significant impact on the behaviour of the enterprise. Thus,
guest also ready to pay for the extra service they demand. Additionally, the current economy tax
in Australia is about 30%. Thus, changes in economic condition also impact the working of the
industry.
Social- Changes in taste and preferences of customer also affect the working of the industry.
Thus, willingness and availability of individual to work impacts the working of industry. In the
business hotel, there must be variety of options which are availed and this has huge impact on

working of industry. Thus, each entity must have different classes of guest and availability for
each kind of rooms.
Technological factor- The technology must be beyond the standards in order to set up effective
management system within hotel (Greene, Morgan and Foxall, 2018). In Australia, local firms
are investing in technologies to meet out the growing demands of customers. This is one of the
most technologically advanced country in the world. Thus, hotel providers must use the
computer & equipment, tech consultancy services and artificial intelligence are the core
components that results in more innovation and design.
Environment factor- It is said to be the one of the more beautiful country in the world and it has
stunning beaches, forest and mountains. Thus, it has high rate of tourists. Additionally,
environment factors that impacts the hotel business are flood, heavy rains etc. The hotel
management teaches proper measures to employees to take care for customer’s at the time of
emergency cases.
Legal factor- It is essential for the growth of hotel industry. There are various that have been
made and this also affected the behaviour of the enterprise. It is the components that is inclusive
of safety and healthy laws. However, the current situation and war condition highly affects the
law of the hotel industry. Thus, it can be stated that the external components may leave a
negative impact on hotel industry. In the present scenario, the individual get attracted to the
leisure based hotel that are legal and also offers secure services.
Porter's 5 forces analysis
This is one of the effective technique that aids to identify the sustainable competitive advantage
that allows firm to outperform the average competitors. Thus, its defined in following manner as
are-
Competition in the industry- The rivalry in hotel industry is at the intense because the cost of
there is cost differentiation and switching cost of enterprise is very low. In the hospitality
industry there is high capital cost and to pressure to sell the capacity by the price cutting is high
and this enables the competition to be become intense. Only at the time of weekends and
holidays, this entity can charge the high cost for the services.
Potential of new entrants into industry- This is the industry that is highly characterized by the
high capital cost that is total cost that aids to undertake the better services. Thus, this is the most
profitable industry and hotel has to make sure that high capital cost is gaining its worth in