Commutation Challenges: PESTEL Analysis for Australian Hospitality

This report presents a PESTEL analysis of the Australian hospitality industry, focusing on the increasing commutation time of employees. It examines the political, economic, social, technological, environmental, and legal factors influencing this issue. The analysis considers factors such as government policies, economic strength, quality of life, technological advancements in transportation, environmental regulations, and energy efficiency. The report explores how these factors contribute to road congestion, public transport issues, and urban expansion, ultimately affecting employee commute times. Recommendations are provided to mitigate the challenges, including transportation facilities, housing subsidies, fuel cost reimbursements, and communication with governmental bodies. The conclusion emphasizes the importance of governmental action and policy-making in addressing these issues and developing effective solutions for the hospitality sector.

Running head: PESTEL ANALYSIS BASED ON CASE STUDY
PESTEL ANALYSIS BASED ON CASE STUDY
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1PESTEL ANALYSIS BASED ON CASE STUDY
Introduction
The changing business environment of various industries throughout the world
requires the organizations operating in them to efficiently examine and analyze their external
environment to be able to determine the various opportunities and threats that the
organization may be faced with during the course of its business operations and functions
(Evans 2015). In this regard, the essay will further focus on the analysis of the political,
economic, social, technological, environmental and legal factors that may affect the
hospitality industry with respect to the case of increase in travel time or commutation of the
employees in the Australia. The various aspects of such an increase in commutation time will
be analyzed with the help of the model of PESTEL analysis.
Discussion
The framework of PESTEL analysis provides a strategic framework which helps in
the evaluation of the external business environment in which a business organization
operates, and the determination of the various political, economic, social, technological,
environmental and legal factors that may affect the operations of the organization (Menet
2016). In this regard, it may be pointed out, that the PESTEL framework helps in the
evaluation of the various opportunities that can be utilized by the business organization, as
well as the various threats that may be faced by it (Bresciani, Thrassou, and Vrontis 2015).
The given case pertains to the scope of an observable increase in the time taken by Australian
employees for commutation. The various reasons for such an increase in the time of average
weekly commutation of the employees has been identified to be an increase in road
congestion, poor services for public transport available as well as increased amount of urban
expansion (Sbs.com.au 2020). The potential causes for such a situation can further be
examined using the PESTEL framework described in the following section.

2PESTEL ANALYSIS BASED ON CASE STUDY
PESTEL Analysis
Political factors – The political factors influencing the condition of the workers and
employees of Australia in terms of the facilities provided to them include the efficiency of the
government operating in the country. In this regard, it may be noted that the country is highly
safe and politically stable owing to its association with the World Trade Organization and the
Commonwealth Nations (Wanna 2016). The constitutional monarchy present in the country
further affects the business policies that are undertaken by the organizations operating in
various industries, including the hospitality industry. Furthermore, the government of the
country is also responsible for the development of infrastructural facilities available to the
hospitality industry. The Northern Australia Infrastructure Facility provides the required
funds for such development.
Economic factors – The economic factors affecting the given case include the economic
strength of the country, which can be determined in terms of its gross domestic product and
economic growth rate (Shahiduzzaman and Alam 2014). Being a developed country,
Australia is considered to be sufficiently strong in terms of its economy (Weforum.org 2020).
Furthermore, the taxation policies present in the country determine the extent to which the
roads and transportation facilities can be developed. Furthermore, the disposable income and
purchasing power of the employees and other individuals of the country determine the extent
to which they may be dependent on public transportation facilities.
Social factors – The social factors, which determine the facilities that can be availed by the
employees pertains to the standards of the quality of life in the country as well as their
employment and education rates (Hajkowicz et al. 2016). The quality of life of the
individuals of the country directly relates to their tendency and preferences of availing public
transportation or private vehicles, which in turn will determine the rate of congestion on the
roads, and thereby he commutation time.

3PESTEL ANALYSIS BASED ON CASE STUDY
Technological factors – The technological factors influencing the problem of commutation
time as faced by the employees of Australia directly relate to the amount of innovation and
creativity in the development of transportation facilities and road infrastructures so as to
avoid unnecessary congestions. Furthermore, the availability of internet services and
connectivity to the employees would also determine the extent to which they may use traffic
update application or GPS systems to avoid heavily congested roads on their way to their
workplaces. In this regard, it may be noted that the country ranks 27th in the percentage of
internet users, meaning that a majority of the population has an access to such online update
services (Weforum.org 2020). Efficiency of road connectivity and quality of road
infrastructure are also important technological factors affecting the problem.
Environmental factors – The environmental factors associated with the issue of
commutation time faced by the employees of Australia pertains to the emission standards and
regulations of the country, directly influencing the availability of public transportation
facilities. The country ranks 20th in the strength of regulations pertaining to renewable energy
(Weforum.org 2020). Furthermore, the consciousnesses of the individuals relating to the
global environmental issues determine their preference availing different modes of
transportation for commutation to their workplaces. Other environmental factors include the
standards for sustainable business activities.
Legal factors – The legal factors influencing the activities of the hospitality industry and the
commutation problems faced by the employees include regulations pertaining to consumption
of energy as well as development of infrastructure. In this regard, it may also be noted that
the problem pertaining to the commutation of the employees directly relates to the
transportation industry and the efficiency of regulations pertaining to the utilization of
energy. the country ranks 7th in energy efficiency regulations, meaning that public
transportation is widely used by the individuals (Weforum.org 2020).

4PESTEL ANALYSIS BASED ON CASE STUDY
Recommendations
The recommendations that can be provided to the hospitality industry of the country
in order to mitigate the problem of increase in commutation time include the following:
 Provision of transportation facilities to the employees
 Provision of housing and residential facilities at subsidized prices for the employees
and their families living outside a radius of 8 kilometers form the workplace
 Rewards structure for the employees pertaining to reimbursement of fuel costs so that
they may be able to use private vehicles for commutation
 Establishment of proper communication with the local governmental bodies so that
they may be able to regulate the rate of congestion on particular roads during specific
working hours
Conclusion
From the above discussion regarding the problem of increasing commutation time of
the employees in Australia, it can be noted that there are several opportunities available that
may help in the mitigation of this problem. The efficiency of the government and its
policymaking abilities determine the extent to which the regulation will be implemented and
enforced. In this regard, the government may be able to take effective action for the purpose
of developing the transportation facilities available in the country so that the employees do
not have to face such difficulties.

5PESTEL ANALYSIS BASED ON CASE STUDY
References
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Sbs.com.au, 2020. Australian City Workers' Average Commute Has Blown Out To 66
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