Business Environment Analysis: Ibis Hotel's Strengths and Weaknesses

This report provides a comprehensive analysis of the business environment of Ibis Hotel, a private sector organization. It begins by outlining the interrelationship between various business functions within the hotel, such as human resources, finance, marketing, and others, emphasizing the importance of these connections for achieving business objectives. The report then delves into an environmental analysis using PESTLE and SWOT frameworks to identify the external and internal factors influencing Ibis Hotel's operations. The PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors affecting the hotel. Furthermore, the report identifies the strengths and weaknesses of Ibis Hotel, providing insights into its competitive position and potential areas for improvement. This analysis aims to provide a clear understanding of the challenges and opportunities facing the hotel within its business environment.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
i) P1, P2.......................................................................................................................................1
ii) P3.............................................................................................................................................1
TASK 2............................................................................................................................................4
P4 PESTLE analysis and their positive and negative impact......................................................4
P5 Internal and external environment analysis to find strength and weakness...........................6
P6 Apply SWOT on business......................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment is made up of two types of environment that is micro and macro.
These are also referred as internal and external environments. The nature of business is decided
by the characteristics of ownership and purpose of functioning (Zheng, Luo and Wang, 2014).
Categorisation of a company as private, public or voluntary is based on this factor of ownership.
In this report, characteristics of Ibis Hotel a private sector organisation and NHS a public sector
organisation is described. Purpose of a business enterprise is defined with help of mission, vision
and objective. Once a company communicate its purpose, other business operations and
functions are classified. This report aims to enlighten certain facts about interrelationship
between different functions of Ibis Hotel. Additionally, environmental analysis is performed on
the internal and external environment of this company. The tools that are used for this purpose
are PESTLE and SWOT which shall help in identifying the strengths and weakness of
organisation.
TASK 1
i) P1, P2
Enclosed in ppt.
ii) P3
Ibis Hotel has different sets of functions which are human resource, finance, sales,
marketing, food and beverages, housekeeping, suppliers and transportation. Being a private
sector company, Ibis has one major aim that is to earn maximum profit and market share. To
fulfil business objectives every function in the organisation has to develop certain interlink or
interrelationship (What is the relationship between organisational functions and organisational
structure?,2017). Following organisational chart shows this interlinks between different
operations in business environment of Ibis hotel.
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Figure 1 Organisational Chart
Considering a situation will help in developing a better understanding about this
interconnection between various functions. Human resource operates to hire and train individuals
according to requirements of the company. Their operation is quite crucial when considering
profit levels of organisation. Human resource when has necessary skills and talent will be
productive and profitable (Sinay, 2014). If this attribute is missing, progress and development of
firm is not possible. Hence, human resource must recruit those individuals that meet the demands
of Ibis hotel. In order to perform their function efficiently, an interaction and connection with
other departments is necessary.
For instance: marketing function requires individuals that can travel and explore current
strategies that are used by competitors for marketing their services and products. If human
resource department has no connection with marketing and recruits individuals that do not have
any required behavioural characteristics then company’s resources are wasted. On the contrary, if
Human resource function would have developed continuous communication and effective
relations with marketing department then eligibility criteria for recruitment would have been
fulfilled (Nallan, Suresh, and Kocabasoglu-Hillmer., 2013). This indicates that interconnection
between different functions is very important to increase productivity and efficiency of
organisation.
It is often stated that business organisations function to meet business objectives. In order
to achieve set objectives and goals, it is important that business processes must be aligned with
purpose of organisation. Ibis hotel functions with a purpose to serve its customers with efficient
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services and maximum comfort. According to organisational chart of Ibis, the activities are
aligned by line managers of day to day operations with everyday goals. These short term goals
and targets become a medium to achieve business objective. The different business functions are
defined so that all activities can be executed simultaneously (White and Aylward, 2016).
The structure or arrangement which is used by company to differentiate its business
operations is important when considering business objectives. It is possible that Ibis hotel has
opted for an organisational structure which doesn’t allow establishment of interconnections
between various functions. For instance, divisional structure is completely based on separate
functioning of various departments. On the other hand, functional structure is based entirely on
interconnection. It is not necessary that every organisation has to follow functional structure for
meeting objectives (Dangelico, 2015). Other choices can also be adopted. Ibis hotel’s
development strategies will see rapid growth when all functions are working together.
There is an internal link between all functions of the hotel. When budgets are passed by
finance department for every other function then it is important that appropriate acceptance is
gathered by other functions. If marketing department creates objection over proposed finance
structure and allocation of resources then company’s marketing strategies will be hindered. This
means that current strategies and promotional activities are disrupted (Botha, Kourie and
Snyman, 2014). As a result, sales will decrease and customers won’t perceive image of Ibis as a
brand. This process will continue and no solution will be gathered. Moreover, the company will
lose its orientation and disintegrate into separate fragments. Hence, effective interconnection is
important to achieve business objectives. Communication and team building exercises contribute
to development of better connectivity amongst various departments (Zheng, Luo and Wang,
2014).
In addition to above described facts, strategies that are developed for benefit of the
company shall be made with consent of all departments and individuals that are part of this
strategy. Proper evaluation of various factors inside the business environment will help in
strengthening these interrelationships and at the end result in attaining of business objectives
(Belás and et. al., 2014).
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TASK 2
P4 PESTLE analysis and their positive and negative impact
Ibis hotel operating functions in various part of world. Thus, they have to analysis
external impact on their business operations to deliver effective services to customer. Their main
aim is attract potential customer across the world (Bengtsson and Kock, 2014). Hence, it is
necessary to find total impact by outside the business environment. In PESTLE analyses
following factors are included which create impact on the business operations:
Political factor
Political environment is influence by political factors in the way of changes in regulatory
frames which measure current attitudes of government. It determines for growth of country
which make successful operations within the market (Peters, Blohm and Leimeister, 2015). If the
government is stable Ibis hotel has chance to grow their industry in successful manner. This is
because, government get high amount of revenue from hospitality industry in all over the world.
Hence, political environment is highly support and give development to hotel industry.
Economic factor
Under economic factors there are various elements which create impact on Ibis hotel. It
includes taxation level, prevailing inflation rate and the position of the balance of trade in tern of
exchange rates. Changes in exchange rates create impact on finance fund which is requires for
functioning of the cited firm operations (Zheng, Luo and Wang, 2014). In addition to this,
economic term is also determines as direction of the economy in which the company
encompasses their functions and activities. With the help of these factors, economic environment
cannot be assess and more favourable for economic development. Thus, it creates adverse impact
on the chosen hotel. Economic downward is also affect to the business in spending capacity
which delivers poor result in the enterprise outcomes.
Social environment
Social environment changes are take place in values, lifestyle and changing pattern of
work of the hotel (Peters, Blohm and Leimeister, 2015). In addition to this, changes in
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demographics, gender, culture diversity and many more aspect which belong to social is impact
on Ibis hotel. Beside this, in global context these factors are creates disadvantages in the
hospitality industry due to changes in lifestyle of customer and their perception towards business
development. Further, it decline trend of the market where the organisation operating functions
effectively. Hence, it is essential to determines impact of outside market in business outcomes.
Technological factors
Technological development changes take place in various services which offer by Ibis
hotel to their customer. They have to provide broadband and latest technology to get high
satisfaction at workplace (Gill, 2016). In the commercial world, it changes widely so that the
cited organisation has to use effective resources and technology to satisfy their customer. This
technology development is creates impact on functioning growth and hospitality services of Ibis
hotel. Advance system of the company is positively impact on enterprise resource planning,
customer relationship management and supply chain management which control by systematic
enlargement of the industry (Kowal, and Roztocki, 2015).
Legal factor
The major factor which generates impact on Ibis hotel is legal aspects. These factors
generally includes internal and external both side aspects. Thus, Ibis need to be careful
understand regarding these elements. There are certain laws which can move to the business
environment through country are affected (Zheng, Luo and Wang, 2014). Legal analysis take in
both account in which business operate their functions in great extent. It includes consumer law,
safety standards and labour laws, etc. Thus, cited firm have to consider these elements in their
business operations. For instance, in the chosen organisation various types of products are
providing to customer which create impact on their legal aspects such as food products. If the
business provides effective products and services, it creates positive impact. On the other hand, if
they are not providing right products, customer can move towards the other business.
Environmental factor
Environmental factors are states as feature which directly connected with environment of
business where firm is operating their operations. Hence, it is essential to develop positive results
by Ibis hotel for environment to protect them. There are various things which majorly impact on
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the business such as geographical position, global climate changes and climate. For instance, Ibis
hotel operating functions for worldwide customer so that climate can be change for different
areas. Hence, it affect greatly at workplace (Peters, Blohm and Leimeister, 2015).
P5 Internal and external environment analysis to find strength and weakness
Hotel industry is the most important part of business which serves services effectively at
workplace (Zheng, Luo and Wang, 2014). In respect to this, in particular industry it is possible to
determine effective services which create impact on the business. In this context, following
internal and external analysis conducted in Ibis hotel:
Strength
In Ibis hotel, there are more than 1000 customer who operate effective functions in
various part of world. The company has different outlets in all over the world through they are
encourages to different customer for using their services. In addition to this, the organisation also
operating functions 24*7 hours so that customer can easily access whenever they want to
purchase from different outlets. Hence, it is beneficial to manage profitability at workplace
(Kowal, and Roztocki, 2015). They can easily lead with different new operation which can be
used to develop positive results at workplace. In respect to this, the cited firm can also make their
high profits for measure their positive results for generate high revenue in all over the world. In
this hotel industry employee are efficiently work so that the cited firm can easily provide
services to their customer. In order to maintain strength, the cited firm can easily cooperate with
various positive outcomes which can be measure thorough development of company results. To
take decision, it is essential to maintain business strength at workplace (Zheng, Luo and Wang,
2014).
Weaknesses
Further, Ibis hotel industry has some weaknesses which adversely impact on the business
operations. It includes cost which highly charge by the firm from customer which create negative
impact on the company due to they are unable to attract potential customer for measure their
business operations. In UK high taxes are take place so that it also creates negative impact on the
company outcomes. This is because; they are charge high price services so that they cannot meet
with middle class people. Hence, it creates negative impact on the business operations (Kowal,
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and Roztocki, 2015). To make decisions, Ibis need to concentrate on their weaknesses to
overcome it carefully. This is because, it create negative impact on the business operations due to
less effective results. In this aspect, the cited firm can use profitability with developing effective
results for business outcomes.
Opportunity
From the internal market opportunity, the cited firm has great chance to operate functions
in new places such as emerging country (Zheng, Luo and Wang, 2014). In this context, Ibis can
offer their products and services at low cost through they will easily attract potential customer at
workplace. Hence, it generates positive advantages at workplace. In addition to this, in peak
season they can also provide new services to existing customer so that the company can make
loyalty in front on them. It can be taken in school holidays (Peters, Blohm and Leimeister, 2015).
Further, the cited firm can also diversified their business with making contacts tourism business.
In this context, they can provide discount to their customer so that it generate effective results at
workplace. With the help of several opportunities, the cited firm can take decision to operate
effective functions to measure positive results. In this aspect, the cited firm can easily enhance
their operation s in new areas for develop their results and effective outcomes (Gill, 2016).
Threats
Beside opportunities, Ibis hotel has also threat to operate functions within the
international market. In respect to this, in UK and other areas various types of hotel industry
operating their functions which create threat for the firm. This is because, if competitor providing
high quality services at low cost customer move towards them so that it create disadvantages for
the business operations (Dangelico, 2015). In addition to this, there are also threat of different
perception and taste of customer which affect to business operations. In respect to this, the cited
firm has opportunity for develop their outcomes in the positive manner. For taking business
decision, it is essential for the chosen organisation to demonstrate their positive results through
managing activities at workplace. Further, threat is essential part which needs to be monitor by
the company for managing their outcomes (Peters, Blohm and Leimeister, 2015).
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P6 Apply SWOT on business
Ibis operating their functions in different part of world so that they are possess various
strength, weaknesses, opportunity and threat. They are as follows:
Strength
Ibis has major strength that is strong management which encompasses for success of the
company. Hence, they are easily managing multi task at workplace. In addition to this, their
brand name is effectively working to develop business operations at workplace (Stieninger and
Nedbal, 2014). The company has pricing power so that they can easily lead with different aspects
and outlets which deliver positive results. The company has enough funds to enhance their
operations in new areas so that they are able to develop positive results and attract customer. It
relate with political factor which need to be focus by the company for take government
advantages at workplace (Salem, 2014).
Weaknesses
The cited firm has great weakness that is high cost which impact on the business
operations. In respect to this, there are various outcomes which need to be focus by the firm for
development of company. In addition to this, Ibis has weakness high turnover in employee so
that it is directly impact on the business results. It is related with finance part of the world which
need to be taken for company development (Ward, 2016).
Opportunity
Major opportunity, for Ibis is acquisition synergies which develops positive results at
workplace. It can be determines new market for operate effective functions in different part of
nation which deliver positive results (Peters, Blohm and Leimeister, 2015). In respect to this, the
cited firm can easily manage their results which deliver effective results and create various
advantages for the company. In addition to this, the cited firm can also deliver new services in
their existing operations so that it assists to manage functions at workplace (Kowal, and
Roztocki, 2015). Emerging market is great opportunity for the company to operate new
functions. It create relation with new business so that economy is the great place for enhance
business operations in effective manner.
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Threats
In every market intensive competition take place which create threat for the business
operations of Ibis. In addition to this, government regulations also create problems to the
business to manage their results at workplace (Zheng, Luo and Wang, 2014). In various part of
world where Ibis operate their functions economy is very bad which also create major threat for
manage their outcomes.
CONCLUSION
From the above report it can be concluded that business environment is important
element to deliver effective results to manage business results. In this aspect, Ibis has great
opportunity to deliver profitability at workplace. In respect to this, they have to deliver positive
results to cooperate with different outcomes. Furthermore, it also summarize that, the cited firm
is also affected by PESTLE factor which create major impact on the business through outside the
environment. Hence, the organisation has to concentrate on their results which can be taken for
profitability at workplace. Moreover, it also articulated about internal analysis of company to
manage their outcomes in internal part as well. In this context, firm operate functions which
assist to deliver positive results at workplace. Hence, the firm can achieve profitability within the
business environment. The organisation can easily enhance their operations in different areas to
deliver positive results.
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REFERENCES
Books and Journals
Belás, J. and et. al., 2014. Significant attributes of the business environment in small and
meduim-sized enterprises. Economics & Sociology, 7(3), p.22.
Bengtsson, M. and Kock, S., 2014. Coopetition—Quo vadis? Past accomplishments and future
challenges. Industrial Marketing Management. 43(2). pp.180-188.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology. Elsevier.
Dangelico, R. M., 2015. Improving firm environmental performance and reputation: the role of
employee green teams. Business Strategy and the Environment. 24(8). pp.735-749.
Gill, S. ed., 2016. Globalization, democratization and multilateralism. Springer.
Kowal, J. and Roztocki, N., 2015. Job satisfaction of IT professionals in Poland: does business
competence matter?. Journal of Business Economics and Management. 16(5). pp.995-
1012.
Nallan C., Suresh, and anan Kocabasoglu-Hillmer., 2013. An impact of manufacturing flexibility
and technological dimensions of manufacturing strategy on improving supply chain
responsiveness: Business environment perspective. International Journal of Production
Research. 51(18). 5597-5611.
Peters, C., Blohm, I. and Leimeister, J. M., 2015. Anatomy of successful business models for
complex services: Insights from the telemedicine field. Journal of management
information systems. 32(3).. pp.75-104.
Salem, M. I., 2014. The role of business incubators in the economic development of Saudi
Arabia. The International Business & Economics Research Journal (Online). 13(4).
p.853.
Sinay, J., 2014. Safety management in a competitive Business Environment. CRC Press.
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