Business and Tourism: Management Models and Macro Environment Report

This report delves into the foundational aspects of business and tourism, focusing on management models and the macro environment. It begins with an introduction to business and the tourism industry, then examines the McKinsey 7S model and various management theories, including scientific, system, and contingency management theories, within the context of Marriott International. The report then proceeds to analyze the macro environment using PESTLE analysis, exploring the technological, social, and political factors impacting the business. The report highlights how these factors create opportunities and threats for businesses in the tourism sector, offering insights into strategic decision-making and gaining a competitive advantage. The conclusion summarizes the importance of systematic management and environmental analysis for organizational success.

Foundation of business
and tourism

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Management model.....................................................................................................................3
Characteristic of management model..........................................................................................5
Management theories...................................................................................................................5
TASK 2............................................................................................................................................6
Macro environment......................................................................................................................6
Pestle analysis..............................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business is defined as the organisation and enterprising entity which is engaged in commercial,
industrial and professional activities with the objective of generating higher profits. Main
objective of business is to maximise profits for its stakeholders and owners while maintaining
corporate social responsibilities. It is important for the business to manage its all operations in
systematic manner in order to attain determined goals and objectives. Tourism industry includes
business that are directly provide goods and services to facilitate pleasure and leisure activities
away from the home environment. In this report Marriott International Inc is taken into
consideration which is American multinational hotel founded in 1927 by J. Willard Marriott and
Alice Marriott. This report covers management model and its characteristics. Along with that,
components of pestle analysis is explained to describe macro environment.
TASK 1
Management model
Management model and theories are associated with various aspects such as motivation,
leadership and change management. It is important for the business to apply appropriate
management model in specific situation and problem in order to run business operation in
appropriate manner and attain determined goals and objectives. In competitive business
environment various changes are happened so it is essential for the business to implement change
management model in order to adopt changes and implement them in business for gaining
competitive advantages.
McKinsey 7S model: McKinsey 7S model is a management model that included seven
components that enables business to implement changes in systematic manner. It is powerful
framework for the people who are performing various roles within an organisation
(AGHAZADEH, and AHMADI, 2017). In current competitive business environment, it is
essential for Marriott International Inc to implement changes at every level of business in order
to gain competitive advantages over other competitors. Components of this model are explained
below:
Strategy: Strategy is defined as the actions, blueprint or roadmap that provide guidance
to business to perform organisational operations in systematic manner. Marriott International Inc
analyse all internal and external business environment than develop suitable business strategy

and communicate these strategies among all stakeholders so they can implement all strategies in
systematic way. Through implement suitable strategies hotel get competitive advantage and
leadership adge.
Structure: Structure is considered as the organisational chart that represent all business
departments who are performing business operations. It is important for Marriott International
Inc to adopt suitable business structure that ensures free flow of information among all
departments. Flat business structure is adopted by hotel because decisions are taken quickly and
coordinate all department.
System: System is defined as the regular activities of business that are performed by staff
members to accomplish assigned task on time. Marriott International Inc maintains effective and
flexible business structure so employees can take immediate decision that lead business towards
success (Ali, Warren, and Mathiassen, 2017). There are various departments are working in
business so it is important to maintain efficient system to gain competitive advantages.
Shared values: Shared value is defined as the core values, standards and believes that
reflects organisational culture as well as influence code of ethics. Marriott International Inc core
value is that it wants to provide quality services to its guests that provide them extreme
experience. Hotel also encourage creativity, honesty, accountability and trust in organisation that
led it towards growth and development.
Style: Styles are related to the leadership style and its influence on organisational
strategic decisions, business performance and motivation of employees. It is important for
Marriott International Inc to adopt supportive or participative leadership style through which
leaders provide support to employees and include them in decision-making process that
motivates them to perform with efficiency and effectiveness.
Staff: Staff is defined as the capabilities and competencies of employees that enables
them to perform determined operations in best possible manner. Marriott International Inc need
to ensure that effective and systematic recruitment and selection process that helps to hire skilled
and appropriate employees who led business towards success (Ireland, and Lent, 2018).
Skills: Skills are considered as the capabilities of organisational human resource that
helps organisation to gain competitive advantages over other competitors. Marriott International
Inc need to implement change in its training systema in order to enhances capability and skills.

Characteristic of management model
There are various characteristics of Mckinsey 7S model that make it different and unique from
other models (Clarke, 2018). It is important for Marriott International Inc all these characteristics
and implement them in order to gain competitive advantages than others.
 All elements of model are aligned with business vision than organisation can achieve
business goals and objectives.
 Mckinsey 7S model bring all department and process together that lead business towards
growth and development.
 Management can analyse the effect of changing strategies, structure, policy, culture and
technology. It improves overall system of business.
 Mckinsey 7S model is tested and applied for managing business organisations.
Management theories
Management theories are defined as the concepts that effective management strategies and
framework and tools need to implement in modern organisation to manage all operations in
systematic manner. Some management theories are explained below:
Scientific management theory: Frederick Taylor introduced scientific management theory. This
management theory explains that forcing employees towards to work hard in not the way to get
desirable results. Taylor suggested that simplifying task enhances productivity of people.
Marriott International Inc provide job security to employees that motivates them to perform with
efficiency and effectiveness (Chen, Saad, and Yin, 2018). Along with that, fair wages are
provided to employees so they encourage to work hard. It enhances collaboration and teamwork
among employees that improve overall business performance.
System management theory: It is defined as the alternative approach that is used by
organisation to plan and manage its activities. This theory states propose business as a human
body that involves various components that work collaboratively so all business operations are
performed in appropriate manner. Growth and success of business depends on various elements
such as interdependence, synergy and interrelation between various subsystem. It is important for
the Marriott International Inc to evaluate the pattern and events to determine best management
approach. It facilitates hotel to collaborate different programme in order to attain determined
goals and objectives.

Contingency management theory: Fred Fiedler introduced this management theory. The
concept of this management theory is that no one management approach is appropriate for every
situation. Marriott International Inc need to analyse all internal as well as external factors to
select best management approach. This theory states three variables that creates impact on
organisational structure such as technology being employed, size of business and leadership style
(Perera, 2017). Traits of leadership plays important role in managing all situations. leaders must
flexible for adopting changes that help business to perform efficiently in competitive business
environment.
All these management model and theories helps Marriott International Inc to handle different
situation in appropriate manner and gain competitive advantages.
TASK 2
Macro environment
Macro environment is defined as the set of all external environment factors that influence
business success, strategy as well as decision-making. These factors are not in control of
business but impacts its operations in positive and negative manner (Li, 2018). It is important for
the Marriott International Inc to analyse all macro environment factors and consider than in
policy formulation that helps it to manage operations in appropriate manner and gain competitive
advantages over others.
Pestle analysis
Pestle analysis is defined as the tool that is used by organisation to gain a macro picture of an
industry environment. It includes various factors that impact business performance and
efficiency. Marriott International Inc implements Pestle analysis to analyse and monitor macro-
environment factors. Factors of Pestle analysis in the context of Marriott International Inc are
explained below:
Technological factors: In current business environment, various technological advancement and
innovation are happened that help business to perform its operations in best possible manner.
Emergence of third-party service provider is the greater cause of concern for hotel chain. Now
these days, booking of hotel through indirect booking channel enhances overall cost of Marriott
International Inc as well as decrease profitability. It is important for Marriott to concentrate on
keeping a pace with technology that reduced overall operational cost as well as customer

retention. Marriott International Inc using latest technologies, system and infrastructure that
creates various opportunities for business to maintain trust of customers trust on hotel through
protecting its employees and customers information from any leaks and hacks (Pestle analysis,
2022). Hotel also conducts social media marketing that will help organisation to attract higher
number of guests. But it also creates threat for business such as to purchase and install
technological aspects in business high investment is required that enhances overall cost of
business. For example, Marriott starts online booking and payment system during pandemic that
provides competitive advantages to hotel over other competitors. It is important for hotel analyse
all changes in technological aspects that implement this technological diffusion in hotel to
perform operations with more efficiency and effectiveness.
Social factors: It is one of factors which linked with cultural norms as well as expectations,
population growth rate, health consciousness, career attitude, age, health and safety, distribution.
These factors are considered as an important factor in business as it allow managers of company
to understand preferences of customers. Marriott Hotel for this purpose conducting various
marketing research which allow them to understand habits and preferences of customers. This is
one of factors that create both opportunity and threat for business. There is increasing health
awareness among people of UK that create threat for business of Marriott Hotel. Due to these
factors, business needs to take café of health and safety at their hotel (Grassi, and Vallati, 2019).
It also increases requirement of adopting all health-related issues in business and as a result, cost
of company has increased which create negative impact over profitability of firm. Social factor
also create opportunity for Marriott hotel as there is increasing trend of tour and travelling
activities among youngsters that allow business to attract these tourists to their business in order
to sell their products and services to these businesses.
Political factors: It is also one of essential factors for a business as it consists different types of
regulation over business and its activities. In order to get success for a business, it is important to
consider these factors. Due to pandemic and Brexit, Marriott Hotel is facing issues which create
negative impact over image of company. It is also important for business to consider these
factors as it creates positive brand image in minds of government and citizen of their country that
provide success to business. Marriott hotel get both advantage and disadvantage of these factors
in their business. Political factors create threat for business as government of UK made changes
in its rules and regulation due to Brexit and pandemic and Marriott Hotel also needs to made

changes in business. It creates shortage of employees for organisation, decrease sales of
company and also profitability. But at same time, these factors also create opportunity for
Marriott Hotel as after pandemic, government UK is providing support to business to helps them
to overcome of loss. It is also important for Marriott Hotel to recover from losses faced by them
and allow them to expands its operation.
CONCLUSION
As per above report, it can be concluded that it is important for the organisation to manage
all business operations in systematic manner and implement efficient management model. There
are various management models and theories that help business to gain appropriate solution in
difficult situation and lead business towards growth and success. It is important for business to
analyse external business environment than develop effective policies and strategies that helps
business to attain its determined objectives.

REFERENCES
Books and Journals
AGHAZADEH, H. and AHMADI, I., 2017. Strategic Management Model of Parent (Holding)
Organization.
Ali, A., Warren, D. and Mathiassen, L., 2017. Cloud-based business services innovation: A risk
management model. International Journal of Information Management, 37(6), pp.639-
649.
Ireland, G.W. and Lent, R.W., 2018. Career exploration and decision-making learning
experiences: A test of the career self-management model. Journal of Vocational
Behavior, 106, pp.37-47.
Clarke, S., 2018. Social Work as Community Development: A management model for social
change. Routledge.
Chen, M., Saad, W. and Yin, C., 2018. Virtual reality over wireless networks: Quality-of-service
model and learning-based resource management. IEEE Transactions on
Communications, 66(11), pp.5621-5635.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Li, S., 2018. A PESTLE Analysis of the Cryptocurrency Industry: An Investment Perspective.
Grassi, A. and Vallati, M., 2019, May. AI to Facilitate Legal Analysis in the PESTLE Context.
In Proceedings of the 2019 Emerging Technology Conference. University of
Huddersfield.
Online:
Pestle analysis.2022 [Online] available through:< https://pestleanalysis.com/pestle-analysis-of-
marriott/ >