Analyzing the Internal and External Environment of Ritz-Carlton Hotel Company

Running head: ORGANIZATIONAL BEHAVIOR
Organizational Behavior
Name of the Student
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Abstract
In this report the current external as well as internal environment of a company has been
analyzed and evaluated with the help of several assessment tools. This analysis will be done
to access the loopholes of the organization that needs to be eradicated. In order to suggest the
required changes, recommendations along with a revised organizational structure will be
provided in this report. The Ritz–Carlton Hotel Company has been selected as the case study.
In internal and external business operation and controlling Ritz–Carlton Hotel Company uses
the PESTLE analysis tool, SWOT analysis tool, Balance Score Card or BSC, Business
Priority Matrix or BPM and Online Assessment Questionnaires. Along with these existing
strategic tools for business operations Ritz–Carlton Hotel Company can also incorporate new
tools namely Gallup’s Employee Engagement Metrics, Line Up Tooland Gallup’s Customers
Engagement Metrics. It has been found that Ritz–Carlton Hotel Company should improve
their change management operation and organization structure to handle the situational
alteration as per the suggested recovery model.

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Table of Content
Introduction................................................................................................................................3
Discussion of Assessment Tools................................................................................................4
Assessment of external and internal environment of the Ritz–Cariton Hotel........................4
PESTEL Analysis...................................................................................................................5
SWOT....................................................................................................................................7
7S..........................................................................................................................................10
Balance Score Card (BSC):..................................................................................................12
Business priority matrix.......................................................................................................14
Online assessment questionnaire..........................................................................................16
Recommendations:...................................................................................................................17
Change in organizational structure:.....................................................................................17
Change in business Target:..................................................................................................19
New tools to be added:.........................................................................................................20
Managing Change:...............................................................................................................22
Conclusion:..............................................................................................................................23
Reference list............................................................................................................................25

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Introduction
The Ritz–Carlton Hotel Company is an American organization which operates the
globally renowned luxury hotel chain popularly known as Ritz-Cariton. The organization
owns 91 resorts as well as luxury hotels in more than 30 developed and developing countries
and has a huge work force of about 40000 employees ( ritzcarlton.com 2018). The
organization has evidenced a gradual increase in revenue due to commendable leadership
provided by the managers and executives. Considering the fact that the western hostility
industry is highly saturated, the management of the organization had chosen Bahrain as a
target market which has the potential to enhance the revenue of the company. Due to its high
quality of products as well as services, Ritz-Cartion is one of the most popular hotels across
Bahrain. Like any other organization, the leadership of the executives plays a major role
behind the success of the company. The company is best known for its highly luxurious
residences (Alsabbagh and Ahmad, 2013). Since direct interaction and services are provided
by the employees of the hotel, the management of Ritz-Carlton considers the staffs to be most
vital part of the organization. With the emergence of globalization, more international
companies have established their branches in Bahrain which in turn has impose an adverse
impact on the monopoly of the company. In this report the current external as well as internal
environment of the company has been analyzed and evaluated with the help of several
assessment tools. This analysis will be done to access the loopholes of the organization that
needs to be eradicated. In order to suggest the required changes, recommendations along with
a revised organizational structure will be provided in this report.
The current organizational structure of the Ritz–Cariton Hotel Company is as follows:

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Figure 1: Organization Structure of Ritz-Cariton Hotel
Source: (created by author)
Discussion of Assessment Tools
Assessment of external and internal environment of the Ritz–Cariton Hotel
The term external environment can be defined as the outside influences that impose
an impact on the operation of a business. Assessing the external environment is highly crucial
for an organization since it impose immense impact on the revenue of the company (Hensens
2015). In order to keep up with the flow of operation, the management of Ritz–Cariton Hotel
needs to keep accordance to external environment of the organization. The internal
environment of the Ritz-Cariton Hotel is composed of elements within the company like

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current management, employees and corporate culture which defines the behavior of the
employees. In order to access both the external and internal environments of the Ritz-Cariton
Hotel the following tools have been used.
PESTEL Analysis
PEST analysis is a tool that is designed to assess the external environment of an
organization. The 6 external factors that are assessed through PESTLE analysis has the
potential to influence the marketing and relationships that an organization has worked hard to
develop. In order to assess the external factors that have imposed impact on the Ritz-Cariton
Hotel, PESTLE Analysis of the Ritz-Cariton Hotel, Bahrain has been conducted below.
.Political
 The political system of Bahrain is Constitutional monarchy headed by the king.
 The political condition of the country is unstable and violation of human right and
press restriction is frequent. Political instability does impose negative impact on the
hospitability industry of Bahrain (DOBAI 2016).
 Bahrain has small but equipped deference which is known as the Bahrain deference
force. Moreover, the corruption rate is much lower in Bahrain compared to any other
developed country. Since this factors ensures security of the consumers from
unwanted terrorist attacks, it impose positive impact on the hotel industry of Bahrain.
 The government of Bahrain facilitates the hospitality industry in order to enhance the
revenue of the country.
Economic
 The economy of Bahrain is oil dependent. Currently, the government is giving priority
to other industries to make Bahrain oil-dependent.