Organizational Structure and Business Environment Analysis of Travelodge
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This report provides an analysis of the organizational structure and business environment of Travelodge, a hotel company operating in Singapore. It includes a SWOT analysis and PESTLE analysis to understand the internal and external factors affecting the business.
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 Organizational structure of Travelodge.......................................................................................3 Analysis of Business Environment..............................................................................................4 SWOT analysis on Travelodge....................................................................................................4 PESTLE analysis on Travelodge.................................................................................................5 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................1
INTRODUCTION Hotel comes under the industry that is very competitive and there are many rival firms operating that compete with the hotels. Travelodge hotels is located in Singapore. There are 537 hotels owned by the company in different cities which consist of around 40,000 rooms. It is important to know about the internal and external factors that impact the operations of the organization. Also, the hierarchical structure of the organization which is followed by all the levels of management (Wu, 2021). The report will be based on the organizational structure of the hotel company that is operating in Singapore with the help of a detailed structure. Benefits of the organizational structure and its drawbacks will also be discussed in the following report. It is further important to know about the business environment prevailing within the organization. Different internal and external factors will be discussed to understand how these impact the hotel business. Meaning of business environment will be discussed in the report. Moreover, internal factors are highlighted with the help of SWOT analysis which will highlight the strength and weakness of the hotel. The external factors will be discussed by using the pestle analysis which will further highlight the factors that affect the organization externally (Vlados, 2019). MAIN BODY Organizational structure of Travelodge It is important for the hotel business to have organizational structure for effective functioning. Each department is assigned with certain task which they have to perform with maximum efficiency. Following is the organizational structure of the hotel:Owners and executive manager –A hotel consist of an owner and an executive manager and generally in small hotel companies these position is occupied by the same person. The work of the owner is to set the standards and policies and delegate these set standards to the general manager. Further the manager manges the day to day operations of the hotel.Assistant manager –Role of an assistant manager is to assist the general manager who is responsible for all the daily tasks by communicating with the heads of the department.
Mid-level managers –Mid-level managers can include positions such as marketing, financial or human resource manager. Their role can vary according to their position (Sołoducho-Pelc and et.al., 2020). Operational staff– This includes the role performed by different workers in different departments of the hotel. Their role is to work according to the instructions given to them. Following are benefits and drawbacks of the organizational structure of Travelodge: Organizational structure helps to maintain business operations in streamline and work is to be performed in an order. It helps different departments in the decision-making process and make the process effectively. Organizational structure can allow the hotel business to operate in multiple locations locally, regionally or domestically. Further it enhances the performance of the employees and focus on the increasing the sales and providing customer service (Sharma and et.al., 2021). TherearecertaindrawbacksoftheorganizationalstructureinTravelodgethatit sometimes cause conflicts among the different departments as the lower level department feels inferior to the upper level department. The structure is quite rigid and need flexibility to make changes easily with changing environment. Analysis of Business Environment Business environment can be termed as set of all the factors that are external to the organization but has a great influence on its functioning or growth. In the hotel business, external environment consist of all the factors like political, social, economical and other factors that affects the day to day functioning of the business. SWOT analysis on Travelodge Internal environment of the hotel company Travelodge can be understood with the help of SWOT analysis: Strengths Travelodgerunsitshotelbusinessbyofferingpriceswhichareaffordabletoits customers. It provides discounts and keep the prices low for both the family or double room. Facility to provide early booking deals are provided to the customers occasionally. Travelodge feels that discounts and promotion is the best technique to attract the customers and increase
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their income (Saidu, 2021). Its extensive presence throughout the company can act as the strength of the hotel. Weaknesses The rooms provided by the hotel are quite boring and does not look attractive to the customers which acts as a weakness for the business. Like its competitors who also provide budget friendly and attractive rooms. This can result in loosing of customers for Travelodge. It does not provide room services which are a major part of the hotel business. The hotel does not provide choices and customers place more value on the experience which further results in dissatisfaction among the customers. Opportunities There are certain opportunities in the way of Travelodge. In the past few years there has been wide promotion of eco-friendly environment and green and ecotourism has become a new trend. Travelodge has a very good image and reputation among the customers and this can provide opportunities to the management of hotel business to earn more revenues (Puyt and et.al., 2020). Threats Travelodge belongs to the hospitality industry where the competition is high on level. This creates threat for the hotel business. The rivals are offering many substitutes like hotels ranging from one to five star. Due to pandemic, people are spending less on hotels which makes them stay in places cheaper than Travelodge. Its international presence is very low that makes it difficult for the foreign tourist to hear about Travelodge and choose hotel which is situated in their own country. PESTLE analysis on Travelodge Macro analysis of Travelodge can be understood by using PESTLE analysis as the tool. Here are the following factors: Political The employees of the hotel are demanding more protection, better working condition and information about the products which increases the operational cost of the business. Legislations and trade unions can affect the business and standards can be kept by using these ways. The hotel focuses on keeping good working condition which reduces the labour turnover and the workers are more dependent upon the hotel (Namugenyi and et.al., 2019). As there are many barriers for
migrant workers in different countries so Travelodge can choose from large amount of skilled workers even providing them minimum wages. Economical Most customers prefer budget friendly hotels which makes it important for Travelodge to lower down its prices and offer prices which are affordable to everyone. Purchasing power of the people has been decreased which reduces the overall profitability of the business. Further, exchange rate, inflation and interest rates also plays a very important role as the economic factors of the business (Kakko, 2018). Social The population in the country is growing at a high pace and most of the population is of older age. This creates demand by this group of population for lowering the prices and expecting more from the hotel business. The customer base of Travelodge is more informed and is not rigid which make their expectations higher for more valuable and personal service. This can result in the expansion of its business in more suitable places like the country side. Technological Technological advancement like sending emails to the clients which is very effective and efficient. There is more security in the business which includes usage of CCTV cameras and fire alarms in the organization for the protection of the staff and the customers. The online mode of booking and online payment system for accommodation reduces the risk of frauds ion the company (George, 2021). Legal Legal factor can comprise the amount paid to a worker for working in an organization. Travelodge should provide its employees with minimum wages for the work they perform and which is at least enough to meet the basic needs. They should seek knowledge about their personal lives, hours for which they can work and offer them sick leaves, pensions and holiday pay accordingly. Environmental Hotel uses air conditioned in their rooms which is a major cause of carbon emission and causes pollution. This can be a serious problem with ever changing perception of people in the society. Travelodge try to convince their conscious customers and maintain their brand image.
They can also shift to environment friendly alternatives like materials that can be recycled (Chithradevi and et.al., 2022).
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CONCLUSION It has been concluded from the above report that organizational structure is very important any organization to streamline the things and maintain sustainability. Everything has to be in proper order which makes it an essential criterion for the company of Travelodge. It is a hotel business operating in Singapore and its aim is to provide its customers with the best experience possible. It can be summarized that with the help of swot and pestle analysis, internal and external factors of the business environment can be understood easily. The report consisted of the swot analysis on Travelodge. The analysis discussed the new opportunities and strengths of the business with the increase of revenues. Also, the business focus on gaining knowledge on the weaknesses and threats to the business to overcome the barriers in order to make the business stronger. The external environment is discussed with the help of PESTLE analysis that discussed the external environmental factors of the business. It can be concluded that Travelodgeshould focus on the factors that affects the operations of the business by an effective organizational structure.
REFERENCES Chithradevi and et.al., 2022. Impact of Mobile Technology to Enhance the Customer Service Experience in SME Hotels. InDisruptive Innovation and Emerging Technologies for Business Excellence in the Service Sector(pp. 1-22). IGI Global. George, R., 2021. Promoting and Advertising Tourism and Hospitality Products. InMarketing Tourism and Hospitality(pp. 317-342). Palgrave Macmillan, Cham. Kakko, V., 2018. Assessment of Licensing Opportunities in Singaporean Tea Market-Case Company X. Namugenyi and et.al., 2019. Design of a SWOT analysis model and its evaluation in diverse digital business ecosystem contexts.Procedia Computer Science,159, pp.1145-1154. Puyt and et.al., 2020. Origins of SWOT analysis. InAcademy of Management Proceedings(Vol. 2020, No. 1, p. 17416). Briarcliff Manor, NY 10510: Academy of Management. Saidu, H.M., 2021.The development and ways of implementation of international investment project ‘Shipping container homes’ in Singapore(Doctoral dissertation, Університет імені Альфреда Нобеля). Sharma and et.al., 2021. Hotels' COVID-19 innovation and performance.Annals of Tourism Research,88,p.103180. Sołoducho-Pelc and et.al., 2020. Between sustainable and temporary competitive advantages in the unstable business environment.Sustainability,12(21), p.8832. Vlados, C., 2019. On a correlative and evolutionary SWOT analysis.Journal of Strategy and Management. Wu, S.Y., 2021. A Study on Promotion Strategies and Purchase Intention during the epidemic situation-In the Travelodge Industry.