Business Environment: Macro Factors, SWOT Analysis of IHG - BTEC HND

This report provides an analysis of the business environment, focusing on the Intercontinental Hotel Group (IHG). It examines the positive and negative impacts of macro factors, utilizing PESTLE analysis to assess political, economic, social, technological, legal, and environmental influences. The report also includes a SWOT analysis of IHG, identifying its strengths, weaknesses, opportunities, and threats, such as its brand portfolio and the impact of global events like terrorism. The analysis considers factors like political stability, economic conditions in the UK, social trends, technological advancements, and environmental regulations. The report concludes by highlighting opportunities for IHG to invest in international tourism.

Business and Business
Environment
P4&P5

TABLE OF CONTENT
• Introduction
• Positive and negative impact of macro factors
• SWOT analysis of Intercontinental hotel
• References

Introduction
Macro environment can be simply defined as a situation that
lies in the economy as a whole instead of a particular region.
It involves trends in GDP (Gross Domestic Product), fiscal
policies, employment, spending and fluctuating prices. For
scanning or analysing the macro environment of firm,
PESTLE analysis is used.

Positive and negative impact of macro
factors
Political factor : Since IHG is a part of global brand, it is
necessary to understand the fact that stability in politics plays
an eminent role in the way that development of business is
created on an international level.
Economical factor : There are so many macroeconomics
implications that have influenced negatively on the
effectiveness of business development of IHG, specifically in
UK.

Contd..
Social factor : This factor impacts a lot on the performance
of corporation. There have seen an emergent trend in such
factors like living style of customers, user demographics,
growth of population, role models, etc.
Technological factor : Technological advancements brings
so many positive things in the IHG industry. They are
catering their customers who are updated within all the new
innovation that is existing in current world.

Contd..
Legal factor : There are so many rules and regulations which
are imposed by the UK government such as minimum wages
act, employment equity act, child labour act, etc.
Environmental factor : For any business like IHG, the
hospitality sector frequently becomes a point of criticism
specifically seen with regard to environment.

SWOT analysis of Intercontinental hotel
SWOT analysis of Intercontinental hotel:
Strength : IHG has a large heterogeneous brand portfolio.
Most of the income of the venture are generated from
franchises. It offers best quality services in comparison to the
other hotels.
Weaknesses : Everything in this globe has some pros and
cons. This hotel also has some inner and outer weak points.
Some of the weaknesses of the venture are poor relationship
with their employees, large number of competitors like
Hilton, Marriott, MGM resorts, etc.

Contd..
Threats : Unpredicted activities like terrorism, war, political
instability, epidemics, accidents linked with travel, etc.
Opportunities : The company can invest in international
travelling of tourism as the trend of travelling to various
global places are increasing now a days.

References
De Jonge, A., 2011. Transnational corporations and
international law: accountability in the global business
environment. Edward Elgar Publishing.
Erving, R. H and et. al., 2011. Broadband network with
enterprise wireless communication system for residential and
business environment. U.S. Patent 7.944.948.
Fernando, A. C., 2011. Business environment. Pearson
Education India.

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