Cafe Royal: Industry Trends, Operational Roles, and PESTLE Analysis

This report provides a comprehensive analysis of the hospitality industry, with a specific focus on Cafe Royal. It begins with an introduction to the industry's growth and diverse operational roles, including housekeeping, sales and marketing, and front desk executives. The report then delves into the skills essential for various roles, such as flexibility, language proficiency, and communication. Furthermore, it includes a PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors impacting Cafe Royal. A SWOT analysis is also presented to evaluate the company's strengths, weaknesses, opportunities, and threats. Finally, the report discusses the implications of current trends within the hospitality sector, offering a holistic view of the industry's challenges and opportunities.

The Contemporary
Hospitality Industry
1

INTRODUCTION...........................................................................................................................3
TASK2.............................................................................................................................................4
P4. Various operational roles in hospitality sector......................................................................4
P5. Skills needed for various roles within hospitality sector and lack of current skills..............5
TASK3.............................................................................................................................................7
P6. PESTLE of Cafe Royal........................................................................................................7
P7. SWOT of Cafe Royal............................................................................................................9
TASK 4..........................................................................................................................................11
P8. Implication of current trends within hospitality sector........................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Hospitality industry is emerging as one of the leading and fastest growing industrial segment
in the world. By providing different types of hospitality Services to customers industry aim
towards increasing loyalty among customers towards their offerings (Singal, 2015). There are
numerous roles that are performed within this sector such as food and beverage, lodging,
accommodation etc. as to satisfy needs and demands of customers. Present report has been
conducted on Cafe Royal this entity provide wide range of hospitality services to their customers
with high quality through which they ensure consumer loyalties. In these report formative
discussions has been conducted on different types of operational roles in hospitality sectors.
Along with this, Pestle and SWOT analysis is also covered in this report along with current
trends available in hospitality sector.
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TASK2
P4. Various operational roles in hospitality sector
Hospitality industry is one of the leading and growing industrial sectors that effectively
contribute in different segment such as national GDP, employment rate and per capita income of
an individual (Altinay, Paraskevas and Jang, 2015). By providing different types of services
hospitality industry provides satisfaction to customers and emerges out as a leading industrial
segment in global corporate. There are numerous operational roles in hospitality industry that are
duly undertaken by an organisation with an aim to provide highest consumer satisfaction. It is
essential for entities within hospitality sector to take advantage of different strategies in order to
ensure more customer loyalty and satisfaction. Different types of operational roles within Cafe
Royal are defined below:
Housekeeping:
This unit within Cafe Royal is being engaged in the task of keeping organisational
premises along with surroundings properly maintained and clean in order to provide customers
with a feasible and comfortable stay. Main motive of this unit is to make sure that customers are
provided with comfortable stay in order to increase their loyalty towards organisation. By
offering clean as well as neat atmosphere this unit helps entity to make significant increase in the
overall brand image. Along with this, within Cafe Royal housekeeping unit provide 24/7
housekeeping services to their guest. In addition with this it has been analyse that housekeeping
unit make sure that proper cleaning is being done on timely basis to offer high satisfactory
services to customers.
Sales and Marketing:
In this corporate world every industry operate their functioning with an aim to increase
their competitive image within marketplace and fulfil organisational goals and objectives as to
acquire more customer base by making significant increase in selling ratio. It has been identified
that organisational growth is linked with high sales as well as marketing strategy. All the
organisations within market aim towards attracting consumer attraction by providing them many
facilities and services. As to increase selling ratio of company in marketplace it is essential for
manager Cafe Royal to take advantage of unique marketing strategy as to satisfied customer
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needs according to latest trend and techniques (Kotler and. et. al., 2017). Along with this by
attracting attention of customers with enchanting campaigns and promotional tools Cafe Royal
can effectively able to encourage consumer towards organisational offering. With the help of this
entity can effectively able to generate high sales that automatically lead towards increase in
profitability of company while ensuring long-term sustainability within flea market.
Front Desk Executive Role:
This unit in cafe Royal engage in the activity of interacting with guest on daily basis. Front
desk executive unit is mainly managed by front desk executive in which activities related to
providing overlook booking and accommodation services is being done. In addition to this it has
been determined that front desk executive in Cafe royal conduct their functioning in efficient
manner as to resolve complaints of customers and formulates regular communications with them
as to increase their loyalty and satisfaction level. Within Cafe Royal these roles are being
conducted by front desk executive who hold charismatic behaviour and perform their
responsibility to create a long term impression upon mind set of consumers. With the help of this
Cafe Royal can effectively to ensure high profitability and can strengthen their goodwill in
marketplace.
P5. Skills needed for various roles within hospitality sector and lack of current skills
It has been identified the hospitality industry is one of the most diversified industrial sector
in which customers from all around the world interact with organization on daily basis. Thus, it
is essential for entities that operate their functioning in hospitality sector to serve customers in a
well-defined manner and perform roles as well as responsibilities in order to satisfy each and
every consumer. For this organisations are required to provide different type of training to their
employees through which they can increase their skills in order to satisfy customers of any
country or location around the world. Mentioned below there are certain skills that are essential
in order to accomplish hospitality role:
Flexibility Skill:
This has been evaluated hospitality is largely diverse industry as in this tourist from all
around the world seek different products and services according to their taste in demand. Thus, it
is essential for entities those who perform their functioning within hospitality sector to identify
needs of all the customers around the world and perform their functioning in a flexible nature. In
context with Cafe Royal it is essential for them to customise their services as well as product in
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accordance with needs and requirements of consumers. This effectively helps them to provide
satisfaction to customers from any country. This will not only help them to ensure loyalty from
the customers but by performing these flexibility skills, organisation can effectively increase the
profitability within hospitality industry along with high competitive edge.
Language skill:
Hospitality industry receive customers from international market, by being one of the
most diversified within industry organisations within this industry receive customers from
different destinations and countries. Thus, there is a possibility that customers are mainly known
with their native languages. In order to fulfil need and demand of every customer in effective
manner it is essential for Cafe Royal to provide training to their workforce in context with
providing them different languages programs. With the help of this company can not only make
employees understandable with different languages but can also able to increase brand image of
organisation within marketplace. As by providing different languages programs to employee’s
workers can effectively able to formulate communication with customers and can understand
their requirements in a well defined manner and can further solve them with best. As hospitality
industry is one of the prominent segments that see customers from different diversity. Thus,
language skill is most important tool that will allow them to ensure maximum satisfaction from
their customers.
Communication skill
Communication is most important tool through which one can effectively able to identify
needs and further resolve any issues and queries in best effective manner. In hospitality industry
most of the unit engage with direct communication with customers thus, it is essential for
organisations within this sector to increase communication skill level within their employees in a
well defined manner. Communication act as a formative bridge through which cafe Royal can
effectively able to identify consumer needs and can evaluate their behaviour and further provide
them services and products in accordance with their taste and preferences. This will not only
allow entity to accomplish their objectives but can also enable them to ensure high profitability
in marketplace. By providing employees with high communication skill Cafe Royal can
effectively resolved queries of their customers with patience. This will allow entity to ensure
positive goodwill, high profitability and long-term sustainability within marketplace.
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TASK3
P6. PESTLE of Cafe Royal
Pestle analysis is one of the most important tools with the help of which an organisation
can effectively able to identify the strength, weaknesses, and threats that are prevailing in
political, economical, social, technological, legal and environmental environment and can further
able to gain opportunities from them. It has been identified that, there are different types of
factors that are prevailing in micro environment. Thus, it become essential for organisation to
formulate numerous strategies and overcome the threats in a well define manner. By taking
advantage of pestle analysis manager of Cafe Royal can identify that factor that creates obstacles
between growths of organisation and can further overcome them with effective strategies as to
gain comparative advancements within marketplace while ensuring high profitability.
Political factor
Political factors include government obligations in an economy. Main element of this
factor is environmental law, labour law, political stability, tax policy, and tariff and trade
restrictions. All these factors are required to be effectively evaluate by manager of organisation
in order conduct their functioning in a well effective manner. It has been identified that UK offer
a politically stable environment that provide organisation with the benefit of conducting their
operations and functioning in feasible manner. In context with Cafe Royal, it is essential for
manager to evaluate adverse factors such as political instability, International relations and
terrorism in order to operate their activities and further formulate strategies against them in order
to take advantage of UK political stability and ensure high goodwill within marketplace.
Economic factors
Economic factors within pestle environment include factors that determine performance
of an economy of a country. It includes an element related to interest rates, economic growth,
unemployment rate, inflation rate, and disposable income of customers, exchange rate and more.
In order to conduct organisational function in a best effective manner it is essential for an
organisation to have due understanding of factors like laws, policies, wages interest rates and
more in effective manner. As all these factors influence business functioning in number of
manner. It has been identified that UK is having strong economic platform that provide
organisation to increase their sale and profitability ratio. In context with Cafe Royal it is essential
for manager to evaluate elements like fluctuations in currency rate, foreign exchange rate and
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inflation in order to frame strategies against them and satisfy customers accordingly. This will
help them to ensure high competitive edge in marketplace.
Social factor
The factor mainly involves elements that affect individual or community lifestyle. It
includes values, beliefs, education level, religion, employment level, ethics, lifestyle and attitude
and behaviour of individuals and community within a region. Cafe Royal operates their
functioning in a hospitality sector which is a diversifying industrial segment. Thus, it is essential
for the manager to effectively evaluate consumer behaviour and values of a nation in which they
perform their function. By taking care of behaviour and values of customers Cafe royal can
effectively able to ensure high competitive image. It has been identified that in UK provinces
behaviour of customers are more dynamic. Thus, it is essential for manager to frame strategies in
order to fulfil their needs and demand as per according to rapid change in hospitality sector as to
satisfy the customers in best effective manner.
Technological factor
Technological factors including those external elements that affect business functioning
at a great extent. It has been identified that technology nowadays are changing on dynamic
places. Thus, in order to remain in competition it is essential for organisation to take advantage
updated technology tools as well as techniques. In context with Cafe Royal it is essential for
company to implement innovative and unique technology in their organisational working
structure as to solve their customers queries as per according to the latest technology. With the
help of this company can effectively able to provide products and services to their customers at
advanced level and can further increase their level of satisfaction. This effectively helps them to
gain high probability and competitive advancement within marketplace.
Legal factor
Legal factors involve current laws and legislations that are framed by government and
required to be abide by all the organisations that are involved in a certain industrial segment. In
this, factors like health and safety and employment laws are involved. It is essential for an
organisation to understand the impact of national laws in which they operate their functioning
and further frame strategies in order to overcome the impact of laws on organisational
functioning. In context with Cafe Royal in which essential for manager to evaluate UK
Government laws and legislations and further take advantage from them. By abiding safety
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compliance regulations Cafe Royal can effectively able to take control in marketplace and can
further conduct organisational functioning with having concern towards consumer protection,
employee welfare in a best effective manner. It further allows them to gain more strategic edge
in marketplace.
Environmental factors:
With the help of Pestle analysis an organisation can effectiveness able to have
information related to environmental factors that get affected by organisational functioning.
Some of these factors include climate, weather, pollution and more. In this it is essential for
organisation to effectively ensure that environment did not get affected by any of their business
functioning and activities. Thus, it essential for company to frame strategies in order to ensure
environment safety in context with Cafe Royal it is essential for manager to effectively have
understanding of elements within environment and ensure that they did not get affected by the
business functioning. In this company by making significant reduction in carbon emission and
having concern towards environment by conducting CSR activities can effectively able to ensure
environmental safety. This will not only help them to gain government support in business
functioning but also allow them to increase their profit and brand image in marketplace. In
addition to this, it further leads them towards having significant increase in overall base of
customers.
P7. SWOT of Cafe Royal
SWOT analysis is a strategic tool that allows an organisation to identify their strength,
weaknesses, opportunities and threats that are prevailing in business environment (García-
Villaverde and. et. al., 2017). This will allow time to develop formative strategies as well as
policies with the help of which they can overcome the weaknesses and threats in a well-defined
manner and increase their strength by taking advantage of opportunities in a best effective
manner. With the help of this company can not only cable to increase their market sustainability
but can also able to ensure high probability in respective industrial sector. Royal manager by
taking advantage of SWOT analysis can effectively able to diversify that business growth in
hospitality sector:
Strengths
Strong domestic presence: It has been identified that, Cafe Royal is having strong
presence in marketplace as they offer qualitative products and services to the customers in
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United Kingdom provinces that help them to make significant increase in loyalty of their
customers.
Focus upon innovation: It is evaluated that, Cafe Royal managers regularly focus upon
taking advantage of Innovation and uniqueness in their products and services in order to satisfy
their customers with the latest trends and technology that are prevailing in marketplace. By
taking advantage of innovation in their organisational offerings company can lead themselves
towards taking strategic edge within marketplace by satisfying customers with best.
Weaknesses
Limited market presence: Major weakness of that has been hold by Cafe Royal is that
they are having low customer base. This affects their marketing positioning in a significant
manner.
Opportunities
Shifts in consumer behaviour: This has been evaluated that customer’s lifestyles as well
as trends are changing in a dynamic manner. Thus, there is an opportunity for Cafe Royal to take
advantage of innovation and technology and provide innovative facilities and unique benefits to
their customers to potentially fulfil their needs and demands according to their taste and
preferences. With the help of this company can not only able to satisfy customers in effective
manner but also allow them to increase their over profitability as well as market sustainability.
Tap access to emerging markets: It has been identified that by taking advantage of
resources and innovative process Cafe Royal can expand their business services in hospitality
marketplace. This will help them to satisfy needs of more customer base and expand their growth
in respective industrial sector. With the help of this company can effectively be able to increase
their market share holding as well as profitability in a best effective manner.
Threats
Huge competition: Major tractor has been faced by Cafe Royal is increase in
competition in hospitality sector. It has been identified that the number of small organisation that
are emerging in hospitality sector is provide affordable products and services to customers.
Along with this company also facing threats from already existing leading organisation, those
who are impacting on smooth functioning of Cafe Royal in present industrial sector.
Recession: It is one of the most affecting factor that impact upon operations and
activities of Cafe Royal. In hospitality industry threat of recession not only impact upon revenue-
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generating capabilities of company but also lead them towards decrease in their overall
profitability level.
Political Instability: This has been evaluated that, due to brexit UK face instability in their
political environment. This may impact upon functioning of Cafe Royal in number of ways. This
is a major threat that will not only impact upon productivity of company but also affect their
long-term stability and profitability.
TASK 4
P8. Implication of current trends within hospitality sector
There are different types of current trends that are prevailing in hospitality sector and
impact on functioning of organisations in positive and negative manner (Eid and El-Gohary
2015). Thus, it is essential for organisations those who are operating their functioning in
respective sector to have proper insight about the latest trends in order to serve their customers in
best effective manner. This will not only allow them to increase their marketing positioning but
also benefit them to make significant rise in overall profitability of company:
 Globalisation is one of the most important factors that are required to be duly undertaken
by organisation. Globalisation allows change is related to availability of raw material,
technology, business relation with other countries. This has been identified that
hospitality sector see large number of international customers. Thus, it is essential for
Cafe Royal to effectively consider this factor into their business functioning and
formulate strategies as to take advantage of all these factors.
 It has been evaluated that, governmental rules and regulations related to employment law
and work force safety is changing in a dynamic manner. Thus, it is essential for Cafe
Royal manager to properly ensure that all the safety measures and employment law are
implemented in their workplace structure. With the help of this company can not only
able to increase their Goodwill among marketplace but can also able to increase their
profitability. As by satisfying employees company can effectively able to make
significant increase in their performance that automatically towards high profitability of
company.
 Along with this, diversity is also one of the most important factors that play a significant
role in Cafe Royal. It allows increase in interactions with tourist of different caste,
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religion and culture. Thus, it is essential for Cafe Royal to effectively understand
diversity factor and develop their Strategies and policies according to them. With the help
of this company can not only able to satisfy customers from different location but can
also have opportunities to expand their services at different locations.
By considering these entire current trends Cafe Royal manager can effectively able to
conduct their activities and operations by ensuring more strategic edge in hospitality industry.
This will allow company to increase their market stability and profitability in best effective
manner.
CONCLUSION
As per the above mentioned report it has been concluded that, hospitality industrial sector is
one of the leading and emerging segment around the globe that not only contributes in overall
economy of a nation but also provides significant employment opportunities with the help of
which nation can increase their image among international market. This industry effectively
satisfies customer need as well as demand by offering them different hospitality facilities. This
industry is one of the most cultural diversify industrial segment that lead towards forming from
International relationship among countries. Thus, it is essential for organisation involved in this
actions to take advantage of different strategic analysis such as pestle and SWOT analysis with
the help of which they can identify the strength, weakness, opportunities and have insight about
factors that are prevailing in business environment with the help of this actually able to increase
their market Positioning. There are different types of roles that are being performed in hospitality
Industries through which entities aim towards increasing the profitability by satisfying
customer’s needs in a best effective manner.
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REFERENCES
Books and Journals
Altinay, L., Paraskevas, A. and Jang, S.S., 2015. Planning research in hospitality and tourism.
Routledge.
Eid, R. and El-Gohary, H., 2015. Muslim tourist perceived value in the hospitality and tourism
industry. Journal of Travel Research. 54(6). pp.774-787.
Eid, R., 2015. Integrating Muslim customer perceived value, satisfaction, loyalty and retention in
the tourism industry: An empirical study. International Journal of Tourism Research.
17(3). pp.249-260.
García-Villaverde, P. M., and. et. al., 2017. Determinants of radical innovation in clustered firms
of the hospitality and tourism industry. International Journal of Hospitality
Management. 61. pp.45-58.
Kotler, P., and. et. al., 2017. Marketing for hospitality and tourism.
Schuckert, M., Liu, X. and Law, R., 2015. Hospitality and tourism online reviews: Recent trends
and future directions. Journal of Travel & Tourism Marketing. 32(5). pp.608-621.
Singal, M., 2015. How is the hospitality and tourism industry different? An empirical test of
some structural characteristics. International Journal of Hospitality Management. 47.
pp.116-119.
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