Impact of Macro Environment on Hospitality Organization

Hospitality Business
Strategy

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Applying appropriate frameworks, analyze the impact and influence of the macro environment
on a given hospitality organization and its strategies..................................................................3
TASK 2............................................................................................................................................5
P2 Using frameworks to analyse the internal environment and capability of a hospitality
business organisation...................................................................................................................5
TASK 3............................................................................................................................................7
P3 Evaluation of the competitive forces of market for the hospitality organisation with the
application of Porter’s Five Forces Model...................................................................................7
TASK 4............................................................................................................................................8
P4 Application of a range of theory, concept and models to interpret and devise strategic
management planning for a hospitality business organisation.....................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Forming strategies is very much vital for any business. Strategies are formed after obtaining
the missions and vision of the organization. The organization forms the strategies in such a way
that they help into the attainment of organizational goal and objectives. The strategies are formed
after evaluating the internal and external environmental factor which does affect the activities
and operations of a business. The internal environment includes the employees, cultures, values,
structure, system, mission and objectives and etc. These internal factors can get under control by
an organization. Whereas external factors are the factors which cannot get into the control of an
organization but does affect the operations and working of it. Such factors include political,
economical, technological, social, environmental and legal. This report has taken an example if a
hospitality business name Radisson Blu Hotels. Radisson Blu is an international company which
has its hotel chains at around 380 locations. The company was founded in the year 1909 by
Federico J. Gonzalez Tejera.
This report discusses about the macro environment which affects the working of an organizations
strategic decisions. Proper evaluation of internal working of an organization is also included into
this report. Apart from this, this report also includes the Porter’s five force model and theories
which helps in forming the strategic planning.
TASK 1
Applying appropriate frameworks, analyze the impact and influence of the macro environment
on a given hospitality organization and its strategies
Macro environment are the factors which are not in control of any organization as they
independently in the environment. A business cannot eliminate this risk fully but can form the
policies in such a way that its effect can get reduce onto the business operations. To analyze
these macro environment which puts impact upon organization working can be evaluated
through Pestel analysis. Pestel analysis is a framework which the organization can analyze these
external environment. This enables the company in recognizing the early risks which a company
might can face. The Pestel analysis of Radisson Blu Hotel is as follows:
Political factor of Radisson Blu:
The political factor includes the degree towards which the government can exercise
control upon the industries. The rules and regulation which is formed by the ruling party of that
country come in the part of political factor. Foreign trade policies, taxation policies, stability or
instability of government, fiscal policies and etc are all come under political factor (Altinay,
Paraskevas and Jang, 2015). The political government of the UK is very much stable which
benefits the organizations or the companies which operate in UK, as their business operations
can be stable and so does Radisson Blu Hotel. But the Hotel did face many issues in the year

2005 because of terrorism act into the country. Due to such terrorist attack the visitor rate or
percentage did fall down to some level, which also affects the performance of Radisson Blu also.
Economic factor of Radisson Blu:
The economic factor includes the factor which contributes to the growth of economy. These
factors include the employment rates, the GDP rates, economic growth and the like. The
economic growth of the country UK is very much prosperous and good. Also the country has the
employment rate of about 75% which said to be a good thing about any nation. As in the case
with Radisson Blu, its performance gets impacted through National macroeconomics
environment. In the year 2012, the Olympics held into the country due to which all the hotels
into the country got booked. This becomes a huge profit for the company. Although the company
did face many issues at the time of Brexit (Bharadwaj and et. al.,2013). Due to Brexit the Hotel
booking get reduced as the visitors to the country get reduced, affecting the performance of the
hotel.
Social factor of Radisson Blu:
The social factor includes the attitude, perceptions, behavior, lifestyle and etc of the targeted.
From this the perception of the people would get to know about a particular topic. Over the past
numerous years, changes in patterns of utilization and requests of buyer has impacted the tasks in
each industry. Rising family unit salaries have asked the craving of individuals to have
excursions prompting an exponential development in the travel industry. Be that as it may, there
has been a lessening in family pay of individuals in UK and a noteworthy extent of individuals
can't manage the cost of a nice get-away which has introduced a danger for radisson Blu Hotel. It
has made the administration of the gathering take estimates which can improve its local
execution yet in addition presents an open door for the organization to take influence of the
worldwide activities and amplify the income from the global markets.
Technological Factor of Radisson Blu:
Intense changes and improvement in innovation have formed the shopper elements and tasks in
each industry. In-room innovation of hotel rooms has changes considerably with viewpoints, for
example, programmed key cards, wi-fi etcetera. Besides, the administration of the organization
needs to detail methodology for the extension of online deals stage and exhibiting the
administrations being offered by the organization to an a lot more extensive crowd and potential
clients utilizing web based life devices and procedures encouraged by the advancement in
innovation (Bowie and et. al.,2016).
Environmental Fator:
Expanding the travel industry exercises everywhere throughout the world has likewise added to a
critical ascent in the measure of carbon impressions and arrival of ozone harming substances