Impact of Micro Environment and Internal Environment on Fairmont Hotel and Resorts

Unit 41 - Hospitality
Business Strategy

Table of Contents
INTRODUCTION.....................................................................................................................................3
PART A...................................................................................................................................................3
MAIN BODY............................................................................................................................................3
P1 Impact of micro environment and its strategies on organization................................................3
P2 Evaluation of internal environment of given enterprise...............................................................4
P3 Use Porter Five force model in relevance with given organisation...............................................7
PART B...................................................................................................................................................8
P4 Use frameworks for strategic planning with enterprise................................................................8
CONCLUSION.......................................................................................................................................11
REFERENCES.........................................................................................................................................12
Books & Journal:..............................................................................................................................12

INTRODUCTION
Business strategy is defined as process of actions adopted by firm to achieve
competitive advnatyage in market. It is wider and broader concept which is used by firms in
most suitable manner. Fairmont Hotel and Resorts which is luxurious 5 star hotel which is
headquartered in Canada. They provide quality of services and hospitality to their guest and
consumers. This report includes SWOT and PESTEL Analysis, Porter Five Force Model,
concepts & theories. To survive in market, they use business strategy in most effective
manner so that everything is done in proper way.
PART A
MAIN BODY
P1 Impact of micro environment and its strategies on organization
Business organizations are run within the environment they are directly affected with
environment as they are building up of environment factors. Business environment can be
defined as the combination and agreement of all the events, conditions and influences which
surround and directly affect business organization. Blake’s is one of the most popular 5 Star
hotel of London and it is famous for its interior design luxury services and providing royal
series to their customers. This organization is also directly affect by its micro environment
effects of micro environment can be explain by using PESTLE strategy.
PESTLE analysis

It is a tool of strategic management policies which is used by manages for their environment
scanning procedure. Management department of Blake’s hotel use this technique for identify the
impact of their micron environment factors.
Political factors: it includes those factors which are related and affect by the political
policies, environment law, and labour law rules and regulation made for foreign trade. It
consists of those elements which related with the management of public affairs. Fairmont
hotel and resorts is situated within the London, organization directly affect with BREXIT
agreement as their most of labours belong from European Union countries thus their business
activity affect from this agreement. (Wulandari, 2019).
Economic factors: These factors include those elements which are directly related
with the means of production and distribution of wealth they are directly influence on
demand and supply of firm. Due to the BREXIT, the profitably rate goes down because
before the agreement tourist can easily came in London but now due to heavy tax duties the
customers rate decrease. But government of England provides loan at lower return. (Johnson,
2016).
Social factors: These factors consists those elements relationship of human beings culture of
organization, age, demographic factors. They directly influence the hospitably industries as many
tourist came room different regions to stay in hols they get satisfies when department of hotel and
their employees provide them full facilities and behave in earlier manner. It is important to focus on
social factors so that all decision making and correct measures are taken in the process.
Technological- These environment include elements of software as well as hardware. They
are used by hospitably sector organization to solve their problems and for securities and also for
promotion of their organization. Fairmont hotel and resorts use social media advanced software for
promotion of their hotel facilities to attract customers. But advance technology device is also the
cause of increase of cyber-crime in the hospitality industry.
Environmental: These includes elements which is related with the nature, geographical,
ecological factors, whether, climate conditions port faculties, air, water pollutions problems. Different
environment conditional need to change the marketing strategies thus it is environment factors affect
the business organization. It is essential for Fairmont Hotel and Resorts that they made policies which
is in favour of environment and do not use any irrelative chemise or material which dangers for
natural environment.
Legal- Every country follow their own constitutional law. Thus, ever organization needs to
follow rules and regulation foliage environment. It includes laws regarding wages, health and stay
measure prices and opportunities. In hospitably sector they have direct impact on the