Business and Business Environment Report: IHG Analysis and Review

This report provides a detailed analysis of the business environment, focusing on Intercontinental Hotels Group (IHG). It begins by explaining different types of organizations, including private, public, and voluntary sectors, along with their legal structures. The report defines the size and scope of various business organizations, using IHG as a primary example, and examines its vision, mission, objectives, products, size, structure, and scope. It then explores the interrelationships between organizational functions like marketing, finance, and HR, and how they connect to the organization's objectives and structure. Furthermore, the report assesses the favorable and adverse impacts of the external environment on IHG using a PESTLE analysis. Finally, it conducts an internal and external analysis of IHG, including a SWOT analysis, and examines the interrelation of strengths and weaknesses with macro-environmental factors, providing a comprehensive overview of the business environment and strategic considerations for IHG.

Business and Business Environment
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Table of Content
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain various kinds and purposes of organisation: private, public & voluntary sectors and
legal structures.............................................................................................................................3
P2 Define the size & scope of various kind of business organisation.........................................5
TASK 3............................................................................................................................................7
P3 Explain the relationship among various organisational functions and how they link to
objective and structure of organisation........................................................................................7
TASK 3............................................................................................................................................8
P4 Favourable and Adverse impacts of external environment of organisation of
Intercontinental hotels group.......................................................................................................8
TASK 4..........................................................................................................................................10
P5 Internal and External Analysis of Intercontinental hotels group..........................................10
P6 Interrelation of Strengths and Weaknesses with Macro Environmental Factors................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
Books and Journals....................................................................................................................13
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INTRODUCTION
Business environment is considered as a process in which accretion of entire persons, firms
& other element which imposes direct impact on profit as well as growth of business
organisation. This permits the company to assess the different strategies and tactics which is
followed by its competitor firm. The business environment is dynamic, so it is necessary to build
strategy by considering the environment at workplace. This report is undertaken on
Intercontinental hotels group which is located in Denham, Buckinghamshire, England, UK. This
hotel was founded by Keith Barr in the year of 2003. This assignment discusses different kind &
purpose of company, its dimension as well as scope. In addition to this, the interrelationship
among various organisational elements is also considered. At last, the SWOT & PESTLE
analysis is a framework which is used to assess internal capability as well as external
environment which imposes direct impact on success and growth of business organisation
(Biloslavo, Bagnoli and Edgar, 2018).
TASK 1
P1 Explain various kinds and purposes of organisation: private, public & voluntary sectors and
legal structures.
There are different types of business organisation in the market which are designed with
numerous goal and objectives. There are three types of entity that included public, private as well
as voluntary organisation which is going to be mentioned below:
Private Organisation: It signifies those business firms which is possessed as well as organized
entirely by an individual person in order to gain more and more profit. This kind of company is
not enclosed under any community form. In this assignment the Intercontinental hotel groups is
chosen. The primal motive of business firm is to earn revenue as well as profit. Furthermore, in
reference of business environment, there is kind of firm which possess the private ownership.
The manager of this hotel is to offer high quality services to its customer (Ding, Qu and Wu,
2016).
Legal Structure of Private Organisation:
Sole Trader: In this kind of organisation, the single person is only proprietor of business
firm as well as liable for whole income and expenses which occur at marketplace. The major
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advantage of this company is to take decision quickly as proprietor does not require preceding
the consent of any other individual person at workplace.
Partnership: It signifies that there are more than two people who come together with the
aim to gain profit within business organisation. Therefore, the entire profit is separated into the
partner of company. And also, it is necessary to take decision through the permission of all
partners of firm which will be advantageous for the success and growth of company in future
period of time (Whyte and Lohmann, 2016).
Companies: The total number of person within private establishment is seven as well as
also could be of infinite numbers. Herein, the business firm have an unlimited liability. Due to
larger number of person, there is a difficulty arises in taking appropriate decision in timely
manner. In addition to this, the person comes in & out within organisation does not impose direct
impact on success of business firm (Falkner, 2017).
Public Sector Organisation: This kind of firm is possessed and organized by
government agencies. Herein, the primal aim of business is not to gain profit but is to offer
superior quality services to its client. The example it can be taken is British Broadcasting
Company is to provide high quality services to its customer in order to increase the living
standard. The primal aim of public organisation is to better serve society. In context of public
organisation, the legal structure which is going to mentioned below:
State Government: This is the kind of business organisation which is possessed as well
as organised by state government.
Central Government: This is the type of business firm that is organised and possessed
by central government.
Local Authorities: The following kind of entity are monitored and controlled by local
government.
Voluntary Organisations: This kind of business organisation is to better serve society as
well as not related with overall profit. In other words, voluntary organisation is also known as
Non-profit Organisation. The government authority offers fund to satisfy the working need and
requirement of business organisation (Gauthier and Gilomen, 2016). It also helps in performing
different activities and operations in better way. It can be taken as an example of well come trust
which is originated by Henry well come. The primal aim of this company was biomedical
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exploration. This kind of organisation adopted legal structure which is going to be discussed
below:
Unincorporated Association: Herein, there are two or more person come together with
the motive other than earning profit. This kind of firm is to perform work for welfare of society.
Trusts: In this kind of business organisation, there are several people who named as
executor offers financial facility to other entity.
Others: There are different types of voluntary organisation such as Royal Charter Bodies,
Communities and many more (Gupta, 2016).
P2 Define the size & scope of various kind of business organisation
The motive of business organisation is not same as well as not exists at similar level.
Therefore, there are many differences which occur among size, scope as well as purpose of
various firms. The explanation of different kind of business firm with aspects is going to be
discussed below:
Private Limited: The main aim of this kind of organisation is to offer satisfaction to its
customer as well as gain more and more profit. It helps them in attracting ample of buyer by their
better services (Hitt and Xu, 2016). It is necessary for company to offer better services to its
customer in order to satisfy them. The example can be taken for chosen company named as
Intercontinental hotels group as well as size & scope of entity which is going to be discussed
below:
Background: Intercontinental hotels group is well-known firm which offer better services
to its customer in order to satisfy them.
Vision: The vision of firm is to offer differentiate services to its client in order to gain
competitive advantage over rival firm at marketplace. And also take care for business
atmosphere and community for its subordinates.
Mission: The mission of company is to keep encouraging quality reachable to others. They
offer superior quality services to its customer at affordable cost that helps them in retaining
customer for a longer period of time.
Objectives: The primal aim of company is to offer better services to its customer in order
to gain profit at marketplace.
Products: The business organisation offer superior quality services to its customer at
affordable cost. It increases experience level of customer within marketplace.
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Size: This hotel is operated around the globe. The number of subordinates execute their
work is around 36,643.
Structure: This hotel adopted functional type organisational structure. Therefore, it is easy
to convey the important message around the company.
Scope: The range of this company is to expand its business around the world for
expanding revenue and profit. It assists in enhancing success as well as growth of company in
upcoming period of time.
Public Limited: This kind of business organisation is possessed and organised by
government, the explanation related to scope as well as size of British Broadcasting Company
which is given below:
Background: British Broadcasting Company is well-known organisation which is located
in London. This company was founded by John Reith in the year of 1922. There is different kind
of services which is provided by entity such as Digital, Media, Culture as well as Sport
(McDowell, Harris and Geho, 2016).
Products and services: There is various type of information which is offer by this
organisation such as Digital means on internet, radio as well as television.
Vision: The Vision of company is to achieve a leading position across the globe.
Mission: They offer useful information to its client by providing them various types of
entertaining packages.
Size: There are approx. 20,916 employees working in this organisation.
Objectives: The primal aim of this organisation is to provide entertainment services to its
client so that they get useful information in respect of issues around the world.
Structure: They follow Hierarchical Structure within business organisation.
Scope: The Company want to communicate, educate a well as provide entertainment
services to its customer through use of Radio, TV at broader level.
Voluntary Organisation: This kind of organisation emphasised on offering superior quality
services to its customer for well-being of society. The description of scope as well as size of well
come Trust which is going to be mentioned below:
Vision: This kind of business firm focuses on improving the health of individual person
and animals by using biomedical research.
Mission: The mission is to provide advantageous to the people of society.
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Size: There are around 1797 subordinates perform their work in trust.
Objectives: The primal aim of this trust is to improving the health of individual person in
society.
Structure: The matrix organisation structure is adopted by well come trusts in the
company.
TASK 3
P3 Explain the relationship among various organisational functions and how they link to
objective and structure of organisation.
Marketing and finance: The marketing and finance department is interlinked with each
other. The financial department helps in maintaining budget in order to carry out different
activities and functions in an effective manner. They maintain financial plan in order to adopt
different promotional technique such as advertising, publicity, sponsorship as well as event for
attracting large number of customer at marketplace. Therefore, these both departments are
interconnected with each other. The finance manager maintains income and expenditure in order
to provide useful services to its customer (Nam, Lee and Lee, 2019).
HR and Marketing: The primal purpose of HR manager is to select one from available
candidates in order to accomplish goal as well as objective of business organisation. On the other
hand, the marketing manager focuses on identifying the demand of customer. These both
departments are interlinked with each other (Ratten, Ferreira and Fernandes, 2017). Therefore
the HR department of Intercontinental hotels group recruit those individual who can provide
better services to its customer. It helps in increasing sales as well as profitability level of
company in upcoming period of time. It assists in increasing success and growth of business
organisation in future time period. Apart from this, the manager of hotel recruits those employees
that providing services to its customer.
Organisational Structure:
Organisational Structure used by Intercontinental hotels group is functional type of
structure of organisation. It helps in increasing entire efficiency of business organisation. And
also the employees are taking part in decision making of company. There are different
department which is managed by its own through manager of business organisation.
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TASK 3
P4 Favourable and Adverse impacts of external environment of organisation of Intercontinental
hotels group.
The business organisation deal with environmental factor as well as also needed to
confront different kind of opportunities and threats. The external environment imposes both
favourable and adverse impact on success and growth of business organisation. In context of
Intercontinental groups’ hotel, there is different kind of activities and operations impose both
favourable and adverse impact on productivity and profitability of organisation. PESTLE
analysis is the framework which is used to assess external environment which directly affect
business firm (Schaltegger, Hörisch and Freeman, 2019).
Political factor: It includes factors such as rules, regulations, law as well as legislation
which impose direct impact on performance of business organisation. The political condition of
UK is stable; therefore, it is advantageous for the company in favourable manner. On the other
hand, Due to Brexit, the company change their policies and procedures which impose adverse
impact on success and growth of organisation.
Economical factor: The economical factor involves exchange rate, interest rate, inflation
as well as deflation rate and many more which directly affect the performance level of business
organisation. Due to increase in level of inflation, the unemployment rate is increases, thus
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consumer spend less on taking superior quality accommodation services and they switch their
demand towards those services which is provided at less price. Whereas, Due to stable rate of
exchange, it imposes favourable impact to earn regular incomes of Intercontinental hotels group
as the hotel requires increasing price in order to gain profit (Schwepker and Ingram, 2016).
Social Factor: The social factor involves age, population, taste and preference of
customer. Herein, the marketing manager of this hotel assesses the demand of customer and
provides them goods and services in order to satisfy them. It helps company in increasing sales
as well as profitability level in upcoming period of time. On the other hand, sometime due to
frequently change the demand of buyer; it is not possible for business firm to provide services as
per their need which negatively affects the company at marketplace.
Technological factor: Technology is very important for the success and growth of
business organisation. It is necessary to implement advanced technology in order to provide
innovative product and services to its customer. It helps them in increasing the trust as well as
loyalty of customer towards services offered by business firm. On the other hand, the cost of
implementation of advanced technology is very high; it adds extra cost to the product and
services of company which imposes negative impact on performance level of company.
Legal Factor: The legal factor involves laws, legislation as well as regulations and many
more. Therefore, it is necessary for business firm to follow government rules and regulations in
order to perform different activities and function within hotel. It imposes negative impact on
organisation to change their policies and procedure as per regulation which is implemented by
government (Steiner and Teasdale, 2016).
Environmental Factor: The environmental factor involves climatic as well as weather
condition and many more. The manager of Intercontinental hotels group focuses on providing
eco-friendly services to its customer for increasing living standard of people in the society. They
also emphasised on protecting the environment from pollution which enforces favourable
influence on performance of business organisation. On the other hand, if they do not follow any
government regulation then it adversely affects the productivity as well as profitability of
company.
Therefore, it is necessary for Intercontinental hotel group is to assess external
environmental factor which imposes direct impact on performance of business organisation at
marketplace.
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TASK 4
P5 Internal and External Analysis of Intercontinental hotels group
SWOT Analysis is a framework which is used to assess strength, opportunities,
weaknesses as well as threat which imposes direct impact on success and growth of business
organisation. There is different kind of internal and external factor in relation to Intercontinental
hotels group which is going to be mentioned below:
STRENGTH WEAKNESS
 Intercontinental hotels group is well-
known firm which offer high quality
services to its customer. It helps them
in increasing sales as well as
profitability level in future time period.
 This hotel achieves a leading position
across the world. It assists in attracting
large number of customer.
 The recruitment strategy of
Intercontinental hotel group is effective
and efficient. Thus, it assists in hiring
talented candidate in order to provide
better services to its customer in the
market (Sun and Richardson, 2016).
 Due to weak IT security, there is
different kind of theft and criminal
activities which occur within hotel
which includes stealing of credit card as
well as useful information related to
guest such as name of cardholder,
number of card and many more can be
considered as a weakness of business
firm.
 There is different kind of program such
as IGH Rewards Club imposes
numerous negative reviews of
customer. They claimed that the
business firm do not fulfil their
promises at the time of providing
services to its customer which imposes
negative impact on company.
OPPORTUNITIES THREAT
 Due to implementation of advanced
technology, the manager of
Intercontinental hotels group provides
unique and innovative services to its
customer. It assists in increasing
 There is different kind of competitor of
Intercontinental group’s hotel such as
Marriott, Hilton and Hyatt as well as
many more can be determined as a
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experience level of buyer within
business firm.
 The major benefit of this hotel is to
plan 300 innovative hotels in china in
upcoming year of 2018-2023 can be
considered as opportunities of
company.
threat for business firm.
 There are numerous hotel that provide
similar kind of services at affordable
price thus it imposes negative impact
on performance of business
organisation.
P6 Interrelation of Strengths and Weaknesses with Macro Environmental Factors.
It is important to consider both internal as well as external environmental factor which
enforces both favourable and adverse influences on productivity as well as profitability of
business organisation (Tho, 2017).
The intercontinental group’s hotel adopts SWOT and PESTLE analysis is to assess micro
and macro environmental factor which imposes direct impact on performance of organisation.
There is interrelation of strength and weakness which is going to be mentioned below:
Political Factor: Due to stable political condition of UK shows to be the utmost
advantageous of country as it assists in formulating long term policy in an effective manner.
Therefore, it is connected to a strong point offer wide variety of services to its customer at
affordable cost. It helps in increasing market share of business organisation.
Economical Factor: The exchange rate of UK is stable, it helps Intercontinental hotels
group expanding new opportunities within marketplace. It helps in gaining competitive
advantage over rival firm at marketplace. In addition to this, they offer high quality services to its
customer at affordable cost. It assists in increasing loyalty and trust of buyer in mind-set of
customer at marketplace (Trad and Kalpić, 2017).
Social Factor: In present context, the customer is preferred more online services. In
addition to this, it offers opportunities to customer by offering online services to them. Through
this process, it helps in increasing profit as well as market share of business organisation. Beside
from this, the manager of Intercontinental groups hotel offer superior quality services to its
customer in order to satisfy them.
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Technological Factor: Technology plays an important role for the success and growth of
business organisation. The business firm requires assessing the market in proper manner that
helps in capture the largest share of market. Through explanation in the working model of
organisation, it is necessary for Intercontinental hotel group to provide better services to its
customer in order to gain competitive advantage over rival firm at marketplace (Trapp,Voigt and
Brem, 2018).
CONCLUSION
On the basis of above mentioned report, it has been examined that it is necessary to assess
internal and external environment which imposes direct impact on success and growth of
business organisation. In addition to this, there is large scale as well as small scale organisation
which included Intercontinental hotels group, British Broadcasting Company as well as well
come trusts. Apart from this, SWOT and PESTLE analysis is adopted by business firm to assess
internal and external factor which imposes both positive and negative impact on organisation. All
these process are relevant for well understanding of the quality as well as inadequacy of outside
large scale aspect on organisation for their improvement and well-being. The main purpose of
hotel is to provide superior quality services to its customer at affordable cost. It helps in gaining
competitive advantage over rival firm at marketplace. Apart from this, it increases experience
level of customer in the market. And also helps in increasing success as well as growth of
business organisation.
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