Services Marketing: Impact of Macro and Micro Environmental Factors on Hyatt Hotel Corporation

This study analyzes the impact of macro and micro environmental factors on the growth of Hyatt Hotel Corporation in the Australian tourism and hospitality industry. The study sheds light on the positive and negative influences of economic growth, technological opportunities, social media, and competition. The study provides recommendations to mitigate the challenges.

Running head: SERVICES MARKETING
SERVICES MARKETING
Name of the student
Name of the university
Author note

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Executive summary
It has been mentioned in this study that macro and micro environmental factors have significant
role in terms of driving the industrial growth. Highlighting the growth of tourism and Hospitality
industry, in this study Hyatt Hotel Corporation has been selected. Describing its market position,
four macro and micro environmental forces have been discussed. The study has shed light on
both positive and negative influences of the forces in the hospitality industry. It has been
identified that, economic growth can bring the changes on living standard. It has been mentioned
that increasing the technological opportunities creating the competition in the market. As its
result, the pressure on the organizations increases. Analyzing the micro environment it has been
identified that in case of creating the bad reputation of the company, social media can play an
influential role.

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Table of contents
Introduction......................................................................................................................................4
A brief description of chosen business............................................................................................4
Discussion........................................................................................................................................5
Micro environment..........................................................................................................................5
Social media:................................................................................................................................5
Competition..................................................................................................................................5
Macro...............................................................................................................................................6
Economic environment................................................................................................................6
Technological environment..........................................................................................................7
Conclusion.......................................................................................................................................7
Recommendations............................................................................................................................7
Micro environment.......................................................................................................................7
Macro environment......................................................................................................................8
Reference list and bibliography.......................................................................................................9

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Introduction
Analyzing the growth of Australian tourism and hospitality industry, it has been
identified that both the macro and micro environmental factors play the significant role in terms
of driving the industrial growth. By supporting this Basu (2017) stated that the marketing, sales
revenue and rate of profitability can be influenced both in positive and negative manner
depending on the favorable situation of micro and macro environment of an organization. The
aim of the study is to identify the two important macro and micro environmental factors, those
impacts on the business success in both the positive and negative manner. By supporting the
identified forces with literature, the challenges have been mentioned. At the end of the study, it
has provided the measurable recommendations to mitigate the challenges.
A brief description of chosen business
In this study, the hotel namely Hyatt hotel Corporation had been highlighted, which is a
five star hotel and popular in the global market for its luxury facilities. In the year 1957, the
Hyatt was established. In the current scenario, Hyatt has established its 777 properties in the 54
countries in all over the world (Hyatt.com, 2018). In the year 2017, the business revenue of the
hotel was 4.68 billion US dollar (Hyatt.com, 2018). As it is a popular hotel chain, therefore, in
different locations all over the Australia, the organization has established its business. In case of
analyzing the business size, it has been identified that the hotel chain has expanded its business
as Park Hyatt Sydney, Hyatt regency Sydney and other names in Sydney. Analyzing the products
and service of the organization, it can be said that the organization mainly targets the upper class
people as it mainly provides luxury services. There are total numbers of 9 hotels and resorts of
Hyatt hotel Corporation chain in Australia. It cannot be denied that tourism and hospitality

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industry have higher level of contribution in Australian GDP rate. Therefore, with increasing
opportunities, the numbers of competitors are also high in the market. Sage Hotels, Chifley
hotels, Next hotel Brisbane are the major competitors of Hyatt in Australian hospitality industry.
Discussion
In the macro and micro environmental analysis, two factors from each segment have been
identified, which have higher level of impact on the current hospitality industry. In case of micro
environment, it has been identified that media and competitors contribution in the business
success in both the positive and negative manner. On the other hand, in case of macro
environment, the economic and technological factors have been highlighted.
Micro environment
Social media:
Analyzing the recent market growth and influence of social media, it has been identified
that social media has become one of the popular medium for marketing. As people have become
highly dependent on the business practices as the uses of the internet among people has
increased. It is true that depending on the social media popularity, the brand image of the
organization can be developed. It is the only way, by which large numbers of customers can be
attracted at a time. In the words of Jain, Joshi and Shashi (2014) social media marketing plays a
significant role in case of improving the brand awareness as well as brand loyalty. On the other
hand, developing the customer relationship and engaging the large number of customers, social
media is important.

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By arguing this Siddiqui and Singh (2016) stated that in case of increasing negative
popularity of an organization, the social media is being used by the competitors. It cannot be said
that social media is being considered as the fastest platform in which the information can be
transferred. In case of Hospitality industry, due to negative reviews and comments of the
customers, it can impact on its sales revenue.
Competition
In the words of Khorram Niaki and Nonino (2017) increasing competition in the market
is being considered as important influential factor in business success. In case of Hyatt,
identifying the market situation, it can be said that increasing numbers of competitors in the
market is the major threat of the company. However, it n not be denied that the competitors can
impact in the business organization, in both positive and negative manner. As stated by
Holsapple, Jones and Leonard (2015), in case of competition between the firms, the customers
get the best prices, quantity and quality of the service and goods. In case of increasing
competition in the market the business and customer benefits can be encouraged by the antitrust
laws.
However, by arguing this Nagle and Müller (2017) stated that due to increasing
competition in the market, the pricing strategy of the organizations can be affected. In the
increasing competitive market small business organizations do not get the chance to develop
their business. However, in case of the large organizations life Hyatt, the organization needs to
give strong effort for maintaining the good image in the market.
Macro environment

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Economic environment
In the report of 2016, the GDP rate in Australia has reached 1.2 Crores USD. Reviewing
the growth rate in the Australian hospitality industry, it has been identified that by providing the
standard quality of accommodation and accessibility facilities, in the year 2010, the occupancy
rate in the hotels has increased 72.7% (Uddin, Alam & Gow, 2016). In the words of Platteau
(2015), the economic growth can bring the changes in living standard as well as expenditure
pattern of the customers. By supporting this Hartwell (2017) said, with increasing economic
status, the behavior and level of confidence of the customers can be improved.
However, in the words of Zervas, Proserpio and Byers (2017), due to increasing
economic opportunities, the creative destruction occurs, that distrusts the old economic structure.
In case of negative economic growth, the interest rates, supply, recession, inflation increases.
Due to this reason, the purchasing pattern of the customers can be changed.
Technological environment
In the 21st century, technology has highly contributed in the current hospitality industry.
In the words of No, An and Park (2015) the technology has positively impacted on the business
for improving the communication with people. Another way, Wagner, Beimborn and Weitzel
(2014) said, technology has brought the revolution in the manufacturing industry. As its result,
the productivity as well as the sales rate of the organizations can be influenced.
However, Westerman, Bonnet and McAfee (2014) stated that due to increasing demand
of technology, the pressure on the natural resources has increased. On the other hand, due to
availability of technological innovation, increasing demands of the customers, increasing
challenges for the organization.

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Conclusion
In the study, it can be concluded that micro and macro factors can bring the positive and
negative influence in the business growth procedure. In the above study, Hyatt hotel from the
hospitality industry has been chosen. Both the positive and negative impact of the micro and
macro environments has been discussed in this study. It has been identified that negative
popularity and changes in pricing strategy are the major issues in micro environment. On the
other hand, inflation, changing purchasing pattern and increasing technological influences has
brought the challenges for the tourism and hospitality industry in Australia.
Recommendations
Micro environment
Analyzing the above issues, it can be said that decreasing the negative impact of social
media, a customer support team is needed to be developed so that the quarries of the customers
can be dealt in proper manner. In order to survive in the competitive market, uniqueness in
customer service is needed to be introduced.
Macro environment
On the other hand, dealing with the economic issues, the strong finance team is needed to
be developed in the workplace. As its result, the organization will be able to identify the
innovative way to get out of the situation. In case of increasing technological demands, the
organization can bring the unique technology in its customer relationship management.

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Reference list and bibliography
Basu, P. K. (2017). Is sustainable tourism development possible? Broad issues concerning
Australia and Papua New Guinea. In Tourism and Economic Development (pp. 140-149).
Routledge.
Hajli, M. N. (2014). A study of the impact of social media on consumers. International Journal
of Market Research, 56(3), 387-404.
Hartwell, R. M. (2017). The industrial revolution and economic growth. Routledge.
Holsapple, C. W., Jones, K., & Leonard, L. N. (2015). Knowledge acquisition and its impact on
competitiveness. Knowledge and Process Management, 22(3), 157-166.
Hyatt.com (2018). Available at https://www.hyatt.com/promo/hotels-australia?
src=reso_melbo_ppc_google_search_corp_goo_eng_au_brand_bm
Jain, M. S., Joshi, M. P., & Shashi, M. (2014). Impact of social media on business. target, 1, 1.
Khorram Niaki, M., & Nonino, F. (2017). Impact of additive manufacturing on business
competitiveness: A multiple case study. Journal of Manufacturing Technology
Management, 28(1), 56-74.
Munoz, P., & Cohen, B. (2017). Mapping out the sharing economy: A configurational approach
to sharing business modeling. Technological Forecasting and Social Change, 125, 21-37.
Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.

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No, H. J., An, Y., & Park, Y. (2015). A structured approach to explore knowledge flows through
technology-based business methods by integrating patent citation analysis and text
mining. Technological Forecasting and Social Change, 97, 181-192.
Platteau, J. P. (2015). Institutions, social norms and economic development. Routledge.
Siddiqui, S., & Singh, T. (2016). Social media its impact with positive and negative
aspects. International Journal of Computer Applications Technology and Research, 5(2),
071-075.
Uddin, G. A., Alam, K., & Gow, J. (2016). Population age structure and savings rate impacts on
economic growth: Evidence from Australia. Economic Analysis and Policy, 52, 23-33.
Wagner, H. T., Beimborn, D., & Weitzel, T. (2014). How social capital among information
technology and business units drives operational alignment and IT business
value. Journal of Management Information Systems, 31(1), 241-272.
Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading digital: Turning technology into
business transformation. Harvard Business Press. A. (2014). Leading digital: Turning
technology into business transformation. Harvard Business Press.
Zervas, G., Proserpio, D., & Byers, J. W. (2017). The rise of the sharing economy: Estimating
the impact of Airbnb on the hotel industry. Journal of Marketing Research, 54(5), 687-
705.
Zervas, G., Proserpio, D., & Byers, J. W. (2017). The rise of the sharing economy: Estimating
the impact of Airbnb on the hotel industry. Journal of Marketing Research, 54(5), 687-
705.

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