Business Environment Analysis Report - Ibis Hotel - UK - Module

This report provides a comprehensive analysis of the business environment, focusing on the Ibis Hotel. It begins with an introduction to business and the importance of understanding the environment. Task 1 explores different types of organizations (public, private, and voluntary sectors) and their legal structures, using the National Health Service, Ibis Hotel, and Save the Children as examples. It also examines the size and scope of these organizations, detailing their missions, visions, and objectives. Task 2 delves into the impact of the macro environment on business operations, along with internal and external analyses of specific organizations to identify strengths and weaknesses. The report concludes by explaining the interrelationship between strengths, weaknesses, and external macro factors. Overall, the report offers a detailed examination of business environments and organizational dynamics, providing valuable insights for business development and strategic planning.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures......................................................................................................................1
P2 Explain the size and scope of a range of different types of organisations.............................3
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................5
TASK 2............................................................................................................................................5
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................5
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses............................................................................................................5
P6 Explain how strengths and weaknesses interrelate with external macro factors...................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................1

INTRODUCTION
Business is define as composition of different number of activities which made and
enable an association to grow properly. It is really essential to analyse business environment
properly so that modification which arise at every course of moment get done properly. Thus,
business environment need to understand and assess effectively so that beneficial and suitable
outcome would be drawn in order to accomplish targets properly (Adeoye and Elegunde, 2012).
This project is based on Ibis Hotel which is one of luxury service provider in the UK. In this
project, certain number of things get included which associated with different types, size and
scope of business organisations so that suitable understanding get done. Along with this, it would
also define about interrelationship among various functional units so that business objectives get
accomplish. It will also define about positive and negative attribute of macro environment so that
influences could be control. It will also going to describe about strength and weakness of specific
business with its interrelationship with macro environment factors so that effective consideration
and environment determination get done.
TASK 1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures
In an environment of corporate world, there are various kind of entities got identify
which are taking place. All these organisations are differ from each other as well as have vary
kind of working. It is really essential to determine such type of ventures properly so that better
and signified working could get done. Thus, different types and purpose of organisation are
describe as follow: Public Sector: These are such kind of business ventures whom have a vast interference
on society as they provide services and need certain profit in consideration for that (Al-
Debei and Avison, 2010). These public sector corporations get operated under a
government official which need to assess properly so that suitable strategies get crafted.
Although, public sector are completely differ from public limited companies because
many individuals misinterpret this section. These business ventures running in
environment but under a government official and have a vast influence of minister and
political bodies. One of a major business venture which is consider under Public sector
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company would be National Health Services whom want profit so that each and every
working health care get perform their operations better.
◦ Purpose: Following are the purpose of NHS which need to assess properly:
▪ To deliver better services to each and every patient.
▪ To render basic facilities for medical person.
▪ To provide effective services in define manner of course
◦ Legal structure: A legal structure of NHS describe that it get operated under the
Network Board under the government so that strategic direction would be made
(Aula, 2010). Private sector: Another sector which operated in a business environment is private sector
whose major objective is just to earn profit but nothing else. Thus, such enterprise have a
good market growth and just to want to sustain at market world for long period of course
through generating more and more revenue. These business need huge fund investment
so that better working ability could get done. The private sector companies further
divided into two scenario where one is private limited companies and another one is
public limited companies. Both of them get limited on the basis of liability, fund raising
etc. One of a suitable example which includes private sector company is Ibis Hotel
whom render better quality services to clients so that their satisfaction level tend to rise
properly.
◦ Purpose: For Ibis Hotel it is really important to determine their purpose in define
manner so that effective and better understanding get done:
▪ To earn profit so that feasibility and sustainability get promoted
▪ To provide better opportunities so that lifestyle of employees could enhance
▪ To promote an individual satisfaction level
◦ Legal Structure: Ibis Hotel have their own and definite legal structure where they
suppose to operating business as a sole proprietorship (Bill Pasmore PhD and CMC,
2010). Thus, they have to grant permission through government as well as prepare
their MOA and AOA under which each and every policy and procedure used to get
describe in define manner of course. Voluntary sector: Another business sector which determine in environment is voluntary
association. These are such business venture which do not work for the profit generation
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but want to work so that they could upraise standard of society in better manner. These
voluntary organisation enable in facilitating better service delivery so that social aspects
and impurities could be improved in define manner of course (Brannon, 2010). One of a
major and determined voluntary association which get inspected through better analysis
is Dave the children whom work to provide education to child as well as to stop the child
trafficking.
◦ Purpose: A major purpose of these voluntary association I;e Save the child is
define as follow:
▪ To deliver appropriate services so that social impurity like lack of child education
could be improved
▪ Support in order to reduce the number of child trafficking cases
▪ Make aware about increase of child trafficking especially against girls.
◦ Legal Structure: Their is no definite structures for the voluntary association as
sometimes government take interference into it but few times not.
P2 Explain the size and scope of a range of different types of organisations
Business ventures are distinct from their size, scope which need to assess better and in
define manner of course. It is really important to determine the size and scope of each and every
association so that better and effective understanding get done (Cantwell and et. al., 2010). Thu,
on the basis of reflected outcome, size and scope of different business ventures are proposed as
follow so that appropriate and suitable working and understanding of each one of them get
evaluated properly. This lead to enable in defining their stakeholders as well better so that
chances to derive beneficial gain could become possible in tenure:
Ibis Hotel: It is one of a finest hospitality business venture in UK which is a subsidiary of
AccorHotels' and used to operate in more than 65 countries. The hotel formed in 1974 where
business use to establish themselves near to city, airports with low rates as compared with other
international and globally run hotels. They also provide a facility to book tickets through online
medium so that appropriate and suitable discount could be provided in nature of frame. Thus,
below is appropriate and suitable data regarding Ibis Hotel which are define and signify as
follow: Mission: “To deliver the best quality service for defining optimum satisfaction”
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 Vision: “To maintain effectiveness and efficiency in operations for enhancing number of
customers in future course of manner.”
 Objectives: Ibis Hotel have certain number of objectives which need to fulfil by managers
of a company by suitable working in define course of manner:
◦ To deliver better quality service by utilising TQM
◦ To enhance customer base by 30%
◦ To define opportunities with 5%. Size: Ibis Hotel is a subsidiary of AccorHotels' which is a largest group of hospitality
service provider. Although, in context of size, this hotel group is wide in nature by
operating in more than 65 countries in the world (Cassell and Blake, 2012). This
company expand themselves year after year which enable them in managing things
properly and in define course of manner. Scope: Although, the future scope of business also wide in nature as they are expanding
themselves in every course of frame. On the basis of objectives, it get clearly interpret
that business future and further scope is not narrow as they want t enhance their customer
base by 30% which get done only by expanding in more than 20 countries and limit their
operations from 65 countries to more than 90 countries.
National Health Service: It is one of a health care providers which operated through general
public fund and deliver better and effective quality services by taking some grant in against for
that. It was formed in the year 1969 and have good command over on health care services (CGA,
2010). There are more than 1.4 million employees are working in National Health Services. Mission: To administer high quality services on day to day basis Vision: To administer good health care facilities to the people living in society.
 Objectives: Following are certain number of objectives which crafted by NHS in order to
render better quality services:
◦ NHS want to plan for improving their team and service development
◦ NHS would also used to work in order to acquire new sort of skills and knowledge
◦ Improve services by formulating certain benchmarks Size: It is an open segment firm of United Kingdom which regulate wellbeing
administrations to open. The nations in which association manages their administrations
incorporates Scotland, Northern Ireland, England, Wales and so on. The significant
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reason for firm is to bring social change. In NHS, there are around 1.6 million individuals
are working and give great quality administrations to open (Charter, 2017). Scope: Essential restorative offices are regulated by the association to poor populace of
society. Optical and dental administrations are likewise given by them. Administration of
assets identified with spending which are controlled for human services offices. Impart
data to society related with human services offices.
Save the child: Is is one of an appropriate and suitable multinational non government
organisation that promotes child right and provide them relief. This foundation was determine in
the year 1919 with more than 20 other save the child determination. Thus, they work in favour to
grow and develop the awareness regarding children by protecting their rights as well. Mission: To provide secure future to each and every child Vision: To define and provide better rights to each and every child
 Objectives: Following are certain number of aspect on which Save the child work:
◦ To provide equivalent right to each and every child
◦ To render relief to child by stopping child trafficking Size: The size of save the child is wide in nature as they are operating in more than 29
nations of the world.
 Scope: Their scope in future aspect is wide in frame because it enables and support in
protecting each and every individual (Chavis and et. al., 2011).
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure
Various functions are perform by a business entity to in order to generate more number of profits
and to sustain in market for long time period. Ibis Hotel provide various type of featured
services in order to make the experience of customers a better one and to encourage them to visit
again. Various department are there in hotel which perform different activities so entity can
attain its set goals and objectives in effective manner. Human resource department, finance
department, marketing department, operation department all are the major departments that
operate in hotel. Every department perform its roles and responsibilities so company can offer
services to its customers. Activities perform by a business enterprise is largely affect by the
structure adopt by entity and its final objective. In order to execute all operations in effective
manner it is very important that right organisation structure should be adopt by firm. It is very
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important that there should be cooperation among various business department so company can
attain its set goal (Robbins and et. al., 2010). Human resource department: This is known as one of the most important department of
every organisation. Manager of this department provide training to employees so they can
work well and entity can achieve its set goals and objectives in effective manner. Finance department: Manager of this department formulate budgets, identify the funds
require by other department and allocate funds so they can perform their roles and
responsibilities. Proper funds should be allocate to all departments so they can contribute
in success and growth of entity. Marketing department: Under this various communication tools are use by manager in
order to do promotion of product and encourage individuals to purchase company's
product. It is very important that all functions related with this department should be
perform well so entity can achieve its set goals and targets. Production department: This department manufacture and offer products to the
customers for satisfy their needs. It is very important that production should be carry out
as per specific needs of customers so entity can satisfy the same and can retain them for
long time period.
Structure of organisation: Following are the main type of structure that can be adopt by
entity to perform its operations (Wilson, 2015). Function based: This type of organisation structure is based on various functions
perform by a business entity such as human resource department, finance department,
marketing department, production department and many more. Geography based: This type of organisation structure is based on various region. In this
entity carry out research for identify and satisfy the needs of individuals living in specific
areas. Product based: Under this various functions are perform by entity as per the products
manufacture and offer by it.
 Consumer based: This type of organisation structure is based on behaviour of customers
in this entity manufacture products to satisfy the specific needs of customers.
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TASK 2
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples
Macro factors are known as the element that exist outside the business environment and affect
the actions and decisions of a business enterprise. Changes take place in business environment
affect activities of a company in both positive and negative way and this can be understood by
the following points: Political factors: This element describe the policies develop and utilise by government
of nation in order to get a control over business operations (Solomon, 2014).
Positive impact: When entity manufacture policies by consider political elements then it
help in operate effectively and at the same time company can attain its set goals and objectives in
effective manner.
Negative impact: If there is no government stability in a nation and if government
increase the tax rate then all this affect business operations in negative manner. Economic factors: This aspect highlight the inflation and deflation rate exist in a country,
indicate its GDP and also reveal the purchasing power of citizens.
Positive impact: Countries which good economic conditions increase the chances of firm
to generate more profits.
Negative impact: So many fluctuation in exchange rate increase risk of business and
decrease its profitability (Ullah and Lai, 2011). Social factors: This is related with the values, beliefs and behaviour of individuals living
in area in which entity wants to expand.
Positive impact: If entity manufacture products as per the needs and beliefs of its
customers then it help in generate large number of profit.
Negative impact: If changes take place in requirements of customers on continuous basis
then it become difficult for entity to respond the same. Technological factors: This element of macro environment indicate the technology exist
in market and use by entity to execute its business operations and to satisfy the needs of
its customers.
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Positive impact: In order to get all benefits related with the technology, it is very
essential for enterprise to use new and updated technology as this help in attract more customers
and help entity in expand its activities in new areas.
Negative impact: Changes in technology give rise to business cost as huge funds are
require to transform old technology with new technology. Legal factors: This factor highlight the policies, laws, regulation and rules develop by
regulatory bodies to control business operations.
Positive impact: When entity adhere all rules and regulations then it help in create and
maintain positive image of entity.
Negative impact: For a multinational firm, it become difficult to follow all rules and
when entity fails to avoid those rules then it give rise to penalty or legal action. Environmental factors: This element cover various aspects related with environmental
safety.
Positive impact: When entity consider environment safety before carry out production
process then it help in attract more customers and at the same time increase profits of
organisation.
Negative impact: If organisation ignore environment safety then firm face a criticism
from society and its members which decrease the profits of organisation.
P5 Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses
SWOT Analysis:
There are various factors that influence activities and operations of company at large.
Because of increasing competition in hospitality sector as well as economic downturn,
functioning of business highly influence. Structure of organisation and its marketing strategy are
affected by external and internal environment of business (Craig and Campbell, 2012). Strengths
and weaknesses of Ibis hotel are defined below:
Strength:
Superior customer service: One of the valuable strength of company is its corporate
culture, reputation, superior customer services. They administer high quality customers to their
clients which assists in attaining high profitability.
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High brand recall: Ibis hotel has high brand recall in minds of customers. Firm has good
brand image in market which is the main reason behind its success. They provide unforgettable
experience to those who stay in hotel which encourage them to visit again.
Financial resources: It is also one of the biggest strength of company as firm has high
financial resource. They have adequate amount of funds due to which they are able to run their
day to day operations in more effective and efficient way.
Weakness:
Lack of skilled manpower: Sometimes, due to lack of skills, employees are not able to
provide services which are up to the mark. This may result in loosing its brand image.
Fixed cost: Being a hotel group, fixed cost of business is higher than other businesses.
This creates difficulties or issues at the time when its demand is decline (Ebert and et. al., 2014).
Opportunities:
Expansion: In this global business environment, there are various opportunities to firm
in terms of expanding their operations over various regions such as Asia. As the firm is already
established, mergers and acquisitions are the best way for expansion of business.
New brand invention: Sponsorship action are developed by firm in the entire world with
their new brand invention strategy in order to compete in global market in appropriate way.
Use of latest technology: In this competitive market, it is very essential to use high end
technology in processes and operations of firm. Ibis Hotel use latest technology in their business
processes which is the huge opportunity for company in terms of its growth.
Threats:
Competitors: Presence of large number of competitors is a big threat for company. Main
competitors of Ibis Hotel includes Marriot International, Hilton group, Hyatt Corporation etc. All
these pose threat for hotel in terms of declining market share and growth.
Currency fluctuation: As the service operations of Ibis Hotel is spread across the entire
world, they have face high risk of fluctuation in foreign currency because around two third of
their revenues are generated from international operations. Past revenues of firm were severely
influenced because of unfavourable fluctuations.
Regional economic downturn: Terrorist attack, unfavourable political conditions, spread
of epidemic etc. are the variables of regional economic downturn which highly influence
operations of hotel and put negative impact on firm (Griffin and Pustay, 2012).
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All the above mentioned are strengths and weaknesses of firm and determination of
which assists Ibis hotel in attaining high growth and long term sustainability in market.
P6 Explain how strengths and weaknesses interrelate with external macro factors
Various tools are applied by manager of Ibis Hotel in order to identify strengths and
weaknesses of company. Many forces are present in business environment that may impact on
functioning and operations of business in both negative and positive way. There is a
interrelationship between strengths and weaknesses of enterprise with macro factors of external
environment. So, it is essential for managers to determine all those forces with affect activities of
business. Determination of all factors assists managers in framing effective policies and
strategies that helps in growth of company (Klapper and et. al., 2011). Interrelationship of macro
factors with strengths and weaknesses of firm are defined below:
Political factors:
These factors includes laws and regulations made by government, tax rates etc. These factors
plays essential role in establishment of firm. Effective legal team is available to Ibis hotel in
order to comply with various laws and regulations (Halbert and Ingulli, 2011). Strengths and
weaknesses of this force are defined below:
Strength: Effective legal team of the company is biggest strength that helps them in
complying with all rules and legislations in effective manner.
Weaknesses: As firm operates and administers their services in various countries, it is not
easy for them to understand and comply with laws of various countries.
Economical factors:
Economic condition of each nation is different and it may affect functioning of business in either
negative or positive manner. Inflation, deflation, currency fluctuation rate etc. are the variables
that influence business operations.
Strength: Economic condition of Asian countries is good so, it is a strength for firm in
terms of expanding their business operating and increase their market share.
Weakness: Bad economic condition of that country where firm is operated is the matter
of concern for Ibis Hotel as it influence prices,. Cost, demand and profits of company (Harrison,
2011).
Social factor:
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One of the main aim of company is to offer better services to customers and add some
value to their experience. This will help in maintaining life style of society.
Strength: Engagement of firm in activities related to corporate social responsibility is
the strength of firm which assists in maintaining good brand image of Ibis Hotel in market.
Weakness: Demographic changes like ageing population, increase in female worker etc.
are the factors that pose weakness for firm.
Technological factors:
It is the major factor of macro environment which influence benefit of company and
customer. Satisfaction level of customers are increase as goods are readily available, world
moves very rapidly & services are more personalised.
Strength: Use of latest technology in offering services to customers is strength for
company. It assists them in satisfying customers in more better manner (Iskanius and et. al.,
2010).
Weakness: Sometimes, adaptability to changes by workforce is the main weakness for
firm.
CONCLUSION
It get concluded from the project that business environment is not stable in nature and get
changed with each and every course of time. It requires for managers of a company to
understand the environment properly so that they could made strategies in better and define
manner of course. Thus, in such aspect, managers have to identify various types of organisation
which present in environment like profit, not for profit and voluntary sectors which also get vary
as per their size, scope and operations. Thus, along with this, for managing operations properly,
it is really required to determine the interrelationship between various functions so that signified
outcome could be accomplish in define manner of course. Moreover, it is also required to
understand about positive and negative influence of macro environment factors so that better and
determined working get done.
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