BTEC HNC Business and Business Environment Analysis: Dorchester Hotel

This report provides a comprehensive analysis of the business environment, focusing on the Dorchester Hotel, a luxury 5-star hotel in London. The report begins with an introduction to the business environment, highlighting internal and external factors affecting business operations. It then delves into various organizational aspects, including types, purposes, legal structures, and size. The report covers PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors impacting the hotel's operations. Furthermore, the report includes an internal and external business analysis, utilizing SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Finally, the report explores the interrelation between the hotel's strengths and weaknesses and the macro environment. The analysis provides insights into the challenges and opportunities the Dorchester Hotel faces, offering a thorough understanding of its business environment.

Business and business
environment
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1(Covered in PPT)................................................................................................................1
P1. Diverse organisational types, purposes and legal structures.................................................1
P2. Size addition to scope of diverse organizational types..........................................................1
TASK 2 (Covered in PPT)...............................................................................................................1
P3. Relationship among diverse organisational functions in addition to the ways they link to
objectives and structure of organisation......................................................................................1
TASK 3............................................................................................................................................1
P4. Impacts that external macro environment has on operations of firm....................................1
TASK 4............................................................................................................................................4
P5. Internal plus external business analysis................................................................................4
P6. Ways strengths and weaknesses has interrelation with macro environment.........................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Business environment is the total of various factors such as internal and external that are
important for environment to run a business. Internal environment of business consider
employees, owners, investors and managers that understand what people wants and how they can
be satisfied. External environment consider supply and demand, clients, suppliers, government,
owners activities, innovation and technology, economic changes and market trends. These all
factors have affected functions of company and how they works directly and indirectly increases
business performance. The present report is based on Dorchester organisation that is 5 star hotel
in London, UK. It is well known hotel that offers luxury services and have good looking
architect attract customers and tourist who comes from others countries. The present report
demonstrates types of organisation and their purpose, legal structure and objectives which has
impacted in business, size and scope, internal strength involving weakness that helps to maintain
a business. Moreover, this involves SWOT analysis involving interrelationship to external macro
factors.
TASK 1(Covered in PPT)
P1. Diverse organisational types, purposes and legal structures
P2. Size addition to scope of diverse organizational types
TASK 2 (Covered in PPT)
P3. Relationship among diverse organisational functions in addition to the ways they link to
objectives and structure of organisation
TASK 3
P4. Impacts that external macro environment has on operations of firm.
Macro environment – Environment is full of diverse factors that are exist in economy and has
impacted on business. Factors which arises in macro environment are generally uncontrollable
and affect business whether positive and negative. In this situation and improving economical
condition appropriate framework should be used by management that can help to maintain the
business and increase profitability (Cohen and Kietzmann, 2014) . In context to Dorchester hotel,
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PESTLE framework is used that can help to monitor and forecast the influences that can help to
eliminate the negative impacts. The PESTLE analysis is defined as:
Political factor – As the name given, this factor is related political system and
governmental system that contains, trade regulation, tariffs, taxation, import and export duty etc.
that are formulated by government. In UK, all regulation and decisions in relation to hospitality
industry are taken by government.
Positive impacts – After Brexit, the political system of UK has been stable where
government has allowed to business to operate their business in other nation also as it has
formulated free trade practices which impacted business positively as incremental in customer
range, brand image and luxury services.
Negative impacts – At the same time, this affected business of Dorchester hotel negatively such
as after Brexit UK organisation has restricted to eliminate their business from European
countries which impacted negatively as managers has to close their hotel services which wre in
European nation that may reduce operation (Denisova-Schmidt and Prytula, 2015).
Economical factor – This factor is related to UK’s economy that is well developed and
properly established that contains industry life cycle, BRICKS market, inflation rate, interest
rates, foreign exchange etc. that many impacts on Dorchester hotel such as:
Positive impacts – In UK, inflation rate are stable that helps business organisation and people to
increase their spending by using different types of products and services. As inflation are stable,
manager of Dorchester hotel provides hotel services at reasonable rates that attracts customers
and improve organisational productivity by increasing number of customers (Dobrin and Cioca,
2014).
Negative impacts – In cases of changes in the economic cycle of UK, the emergence of
BRICS markets may create a wide range of complexities for business. In this case, Dorchester
Hotel Administrators will make adjustments to the price of goods as well as repayments from
creditors for business activities. These all have negative impacts, as shifting strategies and
implementing new ones hinder the ability to do so.
Social factor- In a nation, different culture of people are living that has different needs
and wants of people, buying habits, education level, density and education level impacted on
Dorchester hotel are explained below:
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Positive impacts – In business environment, there is chances of global shifts which helps to
provide new taste and services to customers. In Dorchester hotel, diverse product and services
line is adopted by organisation by using social technology. With the help of this, it grab the
attention of customers and audience that has impacted positively and increases business
performance (Edelman, 2015).
Negative impacts – Sometime, the manager of Dorchester hotel unable to recognise
needs and preference of their society and customers that make dissatisfied to customers and they
move towards other brand.
Technological factor – In business environment, people are becoming highly educated
and technical person which helps to bring new technology and innovation in their process that
can helps to increase the organisational performance and profitability. The impacts of such factor
on chosen organisation are as:
Positive impacts – The manager of Dorchester hotel are spending money in adopting
new technology and process in their hospitality industry such as boat services, artificial
intelligence and others which helps to increase organisational productivity and operational
activities. Moreover, with the help of this operational and promotional activity of organisation
has increases that make higher profits (Hautamäki, 2015).
Negative impacts – When organisation adopts new changes and technology then it is
required to spend the money, human resources, capital and others activities that increases high
cost and risk for business. So this may impacts negatively on Dorchester hotel, their cost and
time activities increases (Horkoff and et.al., 2014).
Legal factor – This factor is related to political where rules and regulation are needed to
follow in order to run business and increases productiveness. This involves, employment laws,
trademarks, labour laws, equal wages etc. whose impacts are as defined:
Positive impacts – The manager of Dorchester are understanding their responsibility
properly and follows all regulations that has impacted on business and maintain the good
performance (Jacob and Weiber, 2015).
Negative impacts – Dorchester is larger size organisation that fails to adhere some
regulation in relation to hospitality industry that affects on organisation negatively and increases
employee turnover.
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Environmental factor – This is influencing factor which states that every organisation
who are running their business needed to focus on environment so they can sustain in
competitive environment. The impacts of such factor are as def8ined:
Positive impacts – By focusing on environmental factor, manager of Dorchester are
conducting or initiating in environmental programmes in which they states how they can
maintain healthy and fresh environment by reducing wastages, food scraps, carbon footprints etc.
that helps to manage activities and operation effectively (Kans and Ingwald, 2016).
Negative impacts – In UK, drastic changes has occurred such as changes in climate, floods,
increasing carbon effects etc. that make harm to environment and also hampered plan execution
that reduces operation of Dorchester hotel. So this, factor can impacts badly.
TASK 4
P5. Internal plus external business analysis.
Internal analysis – This means an analysis which involves competency, viability,
resources and abilities to accept the challenges is consider as internal environment. this analysis
is used to identify the strength, weakness, opportunities and threats of organisation that helps top
run a business and maintain high profitability (Karakowsky and Guriel, 2015). The SWOT
analysis in relation to Dorchester hotel are as defined:
Strength Weakness
 Dorchester is large size 5 star hotel that
is providing different types of
accommodation services as people
wants (Marcus, 2015).
 This is leading organisation that mainly
focuses on needs and wants of people.
 The manager are researching the
market and bring innovation and new
technology in their process that
increases customers.
 Incremental in customer and product
range.
 This organisation is charging high
prices from its customers that limits to
classical level of customers so its
operational activity reduces.
 Owners are following centralised
system in order to make decision and
sharing information effectively.
 Lack of product range and high
competition in hospitality industry that
can reduces number of customers and
business performance (Nel and
Abdullah, 2017).
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 It is operating many places in London
and other cities which increases brand
name.
Opportunities Threats
 Training and educational programmed
is conducted by managers so employees
can treat customers in good ways.
 Different style of welcoming and check
outing process for customers.
 Skilled and experienced workforces
that works for organisation.
 It is grabbing the opportunities by
offering well defined products and
services.
 Travelling services also provided by
organisation.
 Substitution of products and services
are available in market that affected
business process.
 Entrance of new businesses by adopting
new technology and spending money.
 Changes in people taste and preference
that can reduce organisational
productivity (Nevin, 2016).
P6. Ways strengths and weaknesses has interrelation with macro environment
Business environment is highly important aspects of business that involves different
forces to contribute in business and increase their productivity and profitability (Nicolaides,
2015). The interrelation between macro factors along with relationship with strength and
weakness are as defined:
Basis of
interrelations
Strength Weakness
Political factor The political environment of UK is
stables which is strength for
Dorchester hotel to run and operate
their business effectively. Moreover,
they are free to trade in other nation
also (Rofiq and Pramono, 2019).
In case of instability of political
system and trade practices
Dorchester cannot operate
business. Due to Brexit, risk has
arise for chosen company as it
cannot operate business in
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European countries.
Economic factor In the United Kingdom, the buying
power of consumers dictates the
operation of businesses. In the case of
Dorchester Hotel, managers give
various offerings to customers by
evaluating their buying power, which
serves as a mechanism that aims to
satisfy various people with different
earnings (Tajeddini and Trueman,
2016).
In the United Kingdom, the rise
of the BRICS industry poses
major challenges in the
company's activities and is a
challenge for the hospitality
sector. In fact, tax reforms and
other structural modifications
impede the work against
strategic goals.
Social factor Move of the citizens of the United
Kingdom to the goods and services
provided by the company helps to
meet all the market objectives. In the
case of Dorchester Hotel, it provides
hospitality goods and facilities in an
creative and enticing manner as they
aim to enrich the satisfaction of a wide
variety of customers (Uluskan and
Godfrey, 2018).
Inside the United Kingdom, the
attitudes and tastes of goods are
increasingly shifting within the
population. When hospitality
managers in Dorchester are
unable to operate with fast-
changing options, they build
vulnerabilities. This hinders the
reputation of the company along
with a decline in the consumer
base due to the fulfilment of
demands.
Technological factors The service industry in the United
Kingdom is making strides with the
aid of different technologies. In
conjunction with the Dorchester
Hotel, the introduction of information
technology and the development of
In the United Kingdom, it is
studied that technology is
evolving rapidly. Periodic
technical transition is a
drawback for Dorchester Hotel,
because it hinders the quality of
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search engines are the strength of the
Dorchester Hotel as it helps to secure
its internal networks and to improve
ties with the outside public.
operations to maintain smooth
workflow (Wolf and Issa, 2014)
(Zhang, 2015).
CONCLUSION
Business environment is main component that uses to identify business opportunities,
tapping useful resources and making plans in order to improve the organisational performance
and growth. The macro climate consists of a broad variety of factors that affect the growth of the
business either in a positive way or in a negative way. PESTLE research is used to track external
effects on internal company processes. Internal research is achieved by applying SWOT
Research to obtain insight into both the strengths and limitations of the organization.
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REFERENCES
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(Cohen and Kietzmann, 2014) (Denisova-Schmidt and Prytula, 2015) (Dobrin and Cioca, 2014)
(Edelman, 2015) (Hautamäki, 2015) (Horkoff and et.al., 2014) (Jacob and Weiber, 2015) (Kans
and Ingwald, 2016) (Karakowsky and Guriel, 2015) (Marcus, 2015) (Nel and Abdullah, 2017)
(Nevin, 2016) (Nicolaides, 2015) (Rofiq and Pramono, 2019) (Tajeddini and Trueman, 2016)
(Uluskan and Godfrey, 2018) (Wolf and Issa, 2014) (Zhang, 2015)
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