Internal and External Factors Impacting Business: A Case Study of Travelodge

This report discusses the impact of internal and external factors on Travelodge, a hospitality company, using environmental analysis tools such as SWOT and PESTLE. It also highlights the impact of emerging situations such as pandemics and crises on business operations.

Understanding
Business Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Discuss the internal and external factors which create impact on business as a result of some
emerging situations with the help of environmental analysis tools............................................3
CONCLUSION................................................................................................................................7
REFERENCES:...............................................................................................................................8
Books and Journals.....................................................................................................................8

INTRODUCTION
Business organisations can be referred as entity which is formulated for the purpose of
commencing operations. Every organisation have their different business structure according to
their business environment. In order to achieve gaols and objectives it is important to understand
the different aspects of an organisation (Cruz-Jesus, Pinheiro and Oliveira, 2019). This report is
based on Travelodge which is a hospitality company. It was founded in 1973 and headquartered
in England, United Kingdom. The main areas where they operates are UK, Spain and Republic
of Ireland. This report will include the discussion about internal and external factors of business
environment. Different models are used in order to analyse the business environment which are
mentioned in this report.
MAIN BODY
Discuss the internal and external factors which create impact on business as a result of some
emerging situations with the help of environmental analysis tools.
In order to minimise the risk and threats of internal and external business environment it
is important to understand different business related factors. There can be seen number of
negative factors affecting business environment such as pandemics and crises which need be
focused so that business can achieve their goals and targets (Suurmond, 2021). Travelodge
limited hotel operates in hospitality industry in UK, Spain and Ireland. It is one of the largest
hotel brands which have around 570 hotels in United Kingdom. They have to develop strategies
and policies which requires detailed analysis of their business environment. In order to analyse
internal environment, Travelodge uses SWOT analysis which is mentioned below:
SWOT analysis
Strength Weaknesses
 Travelodge have established their
strong brand image in all over United
Kingdom which help them in attracting
large number of customers. The
positive brand image helps them in
 In comparison with other hotels,
Travelodge lacks in some of their
services as they does not offer room
services to their customers. There are
various other services which they do

appropriate revenue generation without
any hindrance. They have also captured
markets of Spain and Ireland which is
positive factor contributing in their
growth (Elizabeth, 2018). The have
large number of hotels in different
places which satisfy the demands of
customers in appropriate manner.
 The services of Travelodge are high in
quality and standard which assist them
in engaging their customers for longer
period of time. Their quality justify
their prices which become their
strongest strength in development and
growth.
 Travelodge also runs program for their
some of the premium customers which
assist them in retaining those customers
for longer period of time. In this
manner they can compete with their
competitors in effective manner.
Providing unique facilities to customers
increase their sales and revenues.
not provide to their customers are
concierge services and porter services.
In order to satisfy the demands of
customers it is important to provide full
equipped services. They have to involve
wide range of products and services so
that customers get attracted.
 The infrastructure of Travelodge is
relatively boring and plain which need
to be improved so that customers
develop interest towards them. They
lack in developing their hotels in more
attractive manner which can easily
influence customers in getting products
and services.
 Sometimes, customers face challenges
in availing services even after prior
bookings (Lapiedra, 2021). Travelodge
have to refund the deposits to their
customers due to overbooking. They
need to formulate strategies and policies
related to bookings so that they do not
disappoint customers.
Opportunities Threats
 Travelodge adopted large number of
practices related to the eco friendly
operations which contributes in making
environment safer. They have
introduced various sustainable
programs which involves reuse and
 Increase of competition in the industry
of hospitality can become challenge for
Travelodge as there are number of
hotels which provide services which are
not offered by them. In order to
overcome this threat they have to add

reduces of waste material. This
provides them better opportunity for
longer sustainability in market.
 They can expand their business in
different countries other then Spain,
Ireland and UK. There are number of
opportunities available in hospitality
industry which can be grabbed by
Travelodge which results in better
expansion. In this manner hotel can
overcome various negative impacts of
society by generating higher profits.
 New trends are adopted by Travelodge
in appropriate manner so that they can
develop their positive brand image in
market. Positive public image assist
them in capturing large market area
without investing huge capital. By
analysing the feedbacks of their
customers they can alter their policies
which improve their services.
more services which can assist them in
overcoming the challenge of
competition.
 The limited international presence of
Travelodge becomes threat for them as
it lacks in brand awareness. This affect
their rate of revenue generation and
growth which need to be focused by
them in appropriate manner. Due to
limited presence customers get attracted
towards the brand which have larger
presence then them.
 There are various other social and
environmental factors like Covid 19
pandemic and crisis become threat
(Jaeger, and Upadhyay, 2020).
Travelodge face difficulties in revenue
generation due to the imposition of
lockdown in all over the world. Due to
these factors they have to bear losses
which affect their financial position.
In order to analyse external factors, it is important to identify different business
environment factors. The impact of those factors affect the operations of business in short and
long run. Travelodge uses PESTLE analysis which is mentioned below:
Political factors: All the governmental actions such as free trade disputes, corporate
taxation, fiscal policy initiatives and many more affect business environment. Travelodge
developed better policies which can support the political environment of the country where they
operate. They try to maintain privacy of their customers and provide better services. All the
mandatory policies and actions are followed by them which assist in generating higher revenues
in effective manner.

Economic factors: Financial nature of business can be affected by some of the economic
factors such as inflation, interest rates, exchange rates, etc. (Lanz and Brown, 2020). Besides the
double dip recession in UK in their tourism, Travelodge have maintained their operations in
appropriate manner. They have offered their services in affordable prices according to the
income level of their customers. This helped them in maintaining their sustainability in
appropriate manner which provides positive outcomes.
Social factors: Lifestyle trends, consumer beliefs, demographic conditions and attitude
of citizens affect the profitability rate of organisation (Samson and Bhanugopan, 2022).
Travelodge becomes the sociably acceptable hotel because they focus on the trends and
behaviours of their customers. They follow different cultures and believes in diversity which is
positive factor.
Technological factors: It is important to involve technology in the operations so that
services and products can become better. Travelodge uses automation and robotics in their hotels
which make their operations faster and accurate. They provide facilities of free wifi to their
customers in hotel premises with the help of technology. Customers can book tickets and tables
in advance through online websites which results in better profitability.
Legal factors: Alterations to regulatory environment are emerged due to legal factors.
Some of the factors are licenses, industry regulations, protection of IP should be focused by
organisations (Kaine and Josserand, 2019). Travelodge follows all the legal laws including
innkeeper laws and truth in menu laws. They also offer appropriate salaries and wages to their
staff according to the legal laws related to them. This helps in establishment of positive image in
their respective industry which results in better growth.
Environment factors: Different factors related to environment such as carbon footprints,
natural resources, climatic changes, weather conditions and many more are responsible for the
smooth operations of business. Travelodge ensures that they uses eco friendly and sustainable
operations so that they can improve quality of environment. They reuse waste material so that
they can utilise available resources in appropriate manner. This assist them in improving their
sustainability rate.

CONCLUSION
From the above report it can be concluded that business organisations involves
diversified operations which should be carried out on regular basis. It is important to focus on the
factors which create impact on the growth and expansion on business. Organisations have to
develop policies and strategies which can eliminate threats and risks. Different internal and
external factors results in providing opportunities as well as threats to an organisation. This
report includes discussion about analysis of various internal and external business factors. This
report involves environmental tools such as PESTLE and SWOT for identification of the
strengths and weaknesses. It also helped in analysing the impact of external factors such as
pandemics and crisis.

REFERENCES:
Books and Journals
Cruz-Jesus, F., Pinheiro, A. and Oliveira, T., 2019. Understanding CRM adoption stages:
empirical analysis building on the TOE framework. Computers in Industry, 109, pp.1-
13.
Suurmond, C., 2021, July. Disruption and Images of Organisation. In International Symposium
on Business Modeling and Software Design (pp. 22-39). Springer, Cham.
Elizabeth, G.N., 2018. The role of the administration in team building and development of an
organisation. ACADEMICIA: An International Multidisciplinary Research
Journal, 8(7), pp.43-46.
Lapiedra, R., 2021. New Technologies for a New Organisation. In Change and Development in
Organisations (pp. 68-76). Routledge.
Jaeger, B. and Upadhyay, A., 2020. Understanding barriers to circular economy: cases from the
manufacturing industry. Journal of Enterprise Information Management.
Lanz, K. and Brown, P., 2020. Creating the Mind of the Organisation. In All the Brains in the
Business (pp. 119-126). Palgrave Macmillan, Cham.
Kaine, S. and Josserand, E., 2019. The organisation and experience of work in the gig
economy. Journal of Industrial Relations, 61(4), pp.479-501.
Samson, K. and Bhanugopan, R., 2022. Strategic human capital analytics and organisation
performance: The mediating effects of managerial decision-making. Journal of Business
Research, 144, pp.637-649.