Business Environment Report: Recruitment, Culture, and Performance

This report provides a comprehensive analysis of the business environment, specifically focusing on the Intercontinental Hotel Group. It begins with an introduction that outlines the scope of the report, which includes a PESTLE analysis to assess the external environment, an examination of the importance of effective recruitment and selection processes for sustaining competitive advantage within the hotel industry, an analysis of factors affecting organizational culture, equality, and diversity, an evaluation of performance management methods, and a discussion of an outline plan with recommendations. The report delves into each of these areas, providing examples relevant to the Intercontinental Hotel Group, and concludes with a summary of the key findings and recommendations. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors. The recruitment and selection section emphasizes their role in profitability, productivity, and employee retention. The analysis of culture, equality, and diversity explores the impact of religion and ethics. Performance management methods are also discussed to ensure target achievement and competitive advantage. The report serves as a valuable resource for understanding the dynamics of the business environment and its impact on the hospitality sector.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
Compile a PESTLE analysis of external environment.............................................................................3
TASK 2.......................................................................................................................................................5
Using examples for hotel industry discuss importance of effective recruitment and selection process in
order to sustain competitive advantage....................................................................................................5
TASK 3.......................................................................................................................................................6
Analyse and evaluate principle factors that affect culture, equality and diversity of an organisation......6
TASK 4.......................................................................................................................................................9
Identify and describe main methods of performance management utilized by organizations to ensure
targets and achieved and organisation competitive advantage.................................................................9
TASK 5.....................................................................................................................................................10
Discuss an outline plan which offers recommendations on issues raised in presentation......................10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
Business environment refers to the integration of internal and external factors like
employees, customers, clients, shareholders, government, suppliers, innovation technology,
social trends, economic changes etc. That will affect the operations of the business and its
sustainability in the market. It is that part which helps in meeting the customer’s expectations.
This report is based on the Intercontinental Hotel group that is a British multinational hospitality
organisation founded in 2003 in Denham, England, UK. There are around 36643 employees are
working within the company. this report includes the PESTLE analysis that helps in analyzing
the external environment so that company will focus on that to stay in the market. It also shows
the importance of recruitment and selection process that helps in sustaining in the competitive
world and also helps in evaluating the principles of culture, equality and diversity of an business
firm. It also showcase the methods of performance management that helps in ensuring that goals
are achieved and company will gain the competitive advantage. At last discuss the outline plan
that shows the recommendations on the various problems raised with in above task(Groşanu and
et. al., 2015).
TASK 1
Compile a PESTLE analysis of external environment
PESTLE Analysis – It refers to an effective tool that is used to monitor the external
environment and also helps the business to identify the impact of theses pestle factors on the
performance or operations of the business enterprise. For example – Intercontinental hotel group
manager used this analysis because it helps in showing the impact of political, social,
economical, technological, legal and environmental on the performance of the resources of an
organisation. this PESTLE analysis can be shown below(Eling and Schaper, 2017).
Political factor – It refers to that factor in which tariff rates, tax rates and stability of
government is included. For example- In this political condition of UK is stable and tax rate also
less for the business that will positively affect the Intercontinental hotels and their operations
because they charge low price for the customers due to which large number of customers get
attracted. In this situation the employees are also working effectively and encourage towards the
customer’s attraction.

Environmental factor - It includes the interest rate, GDP, inflation rate and spending
power of public of the UK. For example- The growth rate in UK is high due to this a person can
spend more and capable of enjoying the services of hospitality sector for their enjoyment but
because of high inflation rate due to recession period it will negatively impact the
Intercontinental sales. at this time finance manager can take a responsibility and make an smart
strategy that will not affect the company sales and its sustainability(Erasmus, Strydom and
Rudansky-Kloppers, 2016).
Social factor – It refers to that factor which includes attitude, opinion, values and beliefs
of a person who are living in the society in UK. For example- In this people of UK are very open
minded as they use the services and spend their quality and leisure time in hotels or resorts due to
which it positively affects the Intercontinental hotels sales and they focus on customers values
and perception this will lead the market. In this workforce of the company can work for customer
satisfaction so that they can enjoy their services.
Technological factor – As UK is highly advanced in using the technology and there
people frequently use the internet and digital media on their daily routine. For example- using
technology in the Intercontinental hotels by the technical department and all the departments for
smooth functioning of the activities helps in gaining the large market share. Using technology by
the housekeeper, receptionist etc. helps in attracting the large customer base. There manager also
use advances technology in promoting the brand image so that they will beat the competition in
the market place(Holotiuk and Beimborn, 2017).
Legal factor – It includes the laws and legal regulation that is imposed by the
government for the welfare of employees in the company. For example- In UK government is
focus on securing the welfare of employees and customers so that they give productive results to
the company and economy. in Intercontinental hotels it is the responsibility of HR manager to
focus on the rights of employees so that they will effectively achieves the targets and it positively
affects the performance.
Environmental factor – This aspect refers to the protecting environment and ecology
from the harmful activities of business firms. for example- In Intercontinental hotel manager can
focus on protecting the environment so that they will sustain in the competitive market and their

workforce also positively work and reach the target in an time because of providing healthy
environment in and outside the business(Grigore and Drăgan, 2015).
TASK 2
Using examples for hotel industry discuss importance of effective recruitment and selection
process in order to sustain competitive advantage
Recruitment
It refers to an effective activity that is helpful in searching the prospective candidates and
stimulating them to apply for a vacant position within the organisation. It helps in discovering
the source where the company can hire potential employees for filling a job position. For
example – In Intercontinental hotel, manager can search the prospective candidate who can fulfill
the customers satisfaction issues so that they will sustain in the marketplace. Effective
recruitment process helps the company to see the fast growth level in the market place(Huang-
Horowitz, 2015).
Selection
It refers to a process of selecting and acquiring the right and suitable candidate for a
vacant position in the business venture. It can select the suitable employee with suitable skills
and knowledge related to the job role for which manager can hire a person. For example if a
manager of an Intercontinental hotel hires a candidates they look their communication skills,
body language and their education that helps in sustaining in the market place and also beating
the competition in the competitive world(Koišová and et. al., 2017).
Importance of recruitment and selection
Recruitment and selection process are an effective term for an organization because it
helps in attracting the right candidates for the right job and the right time due to this company
can enjoy the competitive advantage in the market and also longer sustainability so that they can
earn high amounts of profits.
Increase profitability and performance – The main importance of effective
recruitment and selection process is that it create a far reaching effect on the performance of an

organisation. Hiring and attracting high scale candidates can value the timescales to make the
business more profitable and also helps in taking the short term opportunities to get the rewards
in gaining the competitive advantage. For example- In case of Intercontinental hotels, manager
can hires those candidates by using effective recruitment and selection process because it reduces
the time to select and candidate for a vacant position. In this candidates are also encouraged top
speed up their work for earning a high benefits and due to this they work very effectively and
efficiently. This will helps in beating the rival firms in the market and gaining more
profits(Armeanu, Istudor and Lache, 2015).
Reduce attrition and improve productivity- effective recruitment and selection process
helps in freeing the human resource team to focus on the training and development session of the
new candidate’s and the existing one. Using the effective process help in enhancing the person
into the accomplishing the targets in an effective and proficient manner. for example- manager of
an Intercontinental hotels, can take the benefits of this because they use the effective process in
recruitment and select time this will helps in getting the highly skills and knowledgeable
candidate who can serve the better services to the customers by their effective communication
and body language. It also helps in gaining the competitive advantage because employees are
also happy with the company environment due to this they can retain their employees and beat
the rival firms(Hamilton and et. al., 2016).
TASK 3
Analyse and evaluate principle factors that affect culture, equality and diversity of an
organisation
Culture - It refers to a set of values that surrounds between the values, ideas, cuisine, attitudes,
beliefs etc. of a particular person that live in a specified society. This culture can majorly affect
the hospitality sector because they attract customers on a global nature. In context of
Intercontinental hotels culture may affect highly its sustainability and profits(Prajogo and Oke,
2016).
Importance

Culture is most important to be followed in any organisation epically in hospitality
industry because they generally deal on a global level. Without follows the effective culture it is
impossible to earn high growth and sustainability in the marketplace. It helps the Intercontinental
hotel manager to learn the different countries behavior, attitudes, values and norms so that they
can gain the competitive advantage in the international market. As in UK people are more exited
to enjoy their free time by staying in hotels and restaurants so that they feel relaxed due to this
company can enjoy more profits and provide them best services so that they ca n gain the
competitive market(Eling and Schaper, 2017).
Factors that affect culture
Religion - It the main factor that affect the culture of an hospitality industry in positive
and negative ways. In context of Intercontinental hotel, this factor can positively affect the
company and also helps in gaining the competitive advantage because they can follow the proper
culture according to the countries in which they operates . For example –In Asian countries they
mainly use the spicy food for their customers because they like it and in European country they
offer the light spicy food because there people are more conscious about their health and also
they cannot handle the high spiced food.
Ethics and values – This cultural factor affects the most in international business such as
Intercontinental hotels in this manager can remember that same ethics and values cannot follow
in all the countries this will negatively affects its sales and profits and also not helpful in gaining
the competitive advantage. For example if Intercontinental use different ethics and culture in
different countries they gain the market and also helpful in attracting customers. But if they
cannot follow different ethics as per the nation demands they face the failure and also it reduces
its sustainability in international market(Eling and Schaper, 2017).
Equality - It refers to a state of being equal that represent the democratic society. It includes
gender equality, racial equality, equality between rich and poor etc. In case of Intercontinental
hotels it is affected in various ways that can be shown below(Sodeyfi, 2016).
Importance

The main importance of Equality is that it provides the equal opportunity to every
employees and customers to take advantage of the services and other activities that is useful for
them. In context of Intercontinental hotels manager can focus on providing equal benefits to their
employees so that they can encourage towards the effective work and also helps in gaining the
competitive advantage in the marketplace.
Factors that affect equality
Less favorable treatment for a person or a group- It is the major factor that affects the
Intercontinental Hotel. For example if they treat their customers on the basis of their spending
power they cannot stay in the market and customers also dissatisfied this. it will reduce the
profits and sustainability. it is negatively affect the hotel revenues. but if they treat their all
customers in a same way than it will positively affect the market share and also helps in gaining
the competitive advantage(Holotiuk and Beimborn, 2017).
Diversity – It defines the difference that was present on the basis of geographic, professional,
socioeconomic backgrounds. in this if Intercontinental hotel work as per taking their employees
participation in decision making and also respect their opinion than it is positively affect the
company sales and encourages the employees for effective work. it also helps in gaining the
competitive advantage in international market(Alotaibi, 2016).
Importance
The major importance of diversity is that they can influence employees of
Intercontinental hotel to work effectively as they feel valued and accepted by the company that is
more essential for a hotel to gain the market share and growth in the longer life of the business.
Factors that affect diversity
Culture- The main factor that affect diversity is culture as if Intercontinental hotel group
use the effective and healthy culture it will positively affect the company sales. but when they
cannot admire the culture in an effective way they may face loss and it create negative
impact(Schaltegger, Lüdeke-Freund and Hansen, 2016).

TASK 4
Identify and describe main methods of performance management utilized by organizations to
ensure targets and achieved and organisation competitive advantage
Performance management – It refers to a systematic process that can manage and monitor the
performance of employees by using various methods which helps in achieving the organisational
goals in the business. In case of Intercontinental hotel group manger can need to use the
performance management tool because it helps in gaining the competitive advantage and also
encouraging the employee’s performance so that they can satisfy the customer’s demands and
enjoys more benefits(Alotaibi and Liu, 2017).
Methods of performance management
360 degree feedback- It is an effective methods that helps in evaluating the and
reviewing the employees performance by taking the report from peers, managers, customers,
colleagues etc. by eliminating the bias in reviewing the performance. It helps in understanding
the employee’s performance and behavior within the working environment. It can encourage an
individual for effective work(Dut, 2015).
Management by objectives – It refers to that method in which mangers and employees
together make plans, organize and transfer objectives by making full focus on specific appraisal
period. In this objectives can be set on the SMART basis so it is easy to evaluate the
performance of employees at the end when the target is achieved.
Psychological appraisals – It is an essential method that is used by almost all
organisation in which manger can find the hidden talent of employees by reviewing their current
and past performance. in this they can identify employees interpersonal skills, cognitive skills,
leadership skills etc. this helps in encouraging staff members to give their best and maintains the
profits of the company(Reim, Parida and Örtqvist, 2015).
By analyzing above methods in Intercontinental hotel manager can adopts the 360 degree
appraisal because it helps in increasing the awareness of employees so that they will enhance
their performance. Using this also helps in investing employees on themselves and encourages

change which is more important in today’s world. this also helps in retaining the employees so
that it will reduce the recruitment and selection cost(Belas and et. al., 2018).
TASK 5
Discuss an outline plan which offers recommendations on issues raised in presentation
Identified the area of improvement
It is the first step where Intercontinental hotel manager can identifying the problems that
they were faced in performance management, recruitment and selection and majorly in culture
used. it is very important for the form to use select the best improvement process so that problem
related to different issues can be solved and business enterprise can gain the competitive
advantage in the market(Kolk, 2016).
Create a dedicated team that can make improvement
For solving the problem manager of Intercontinental hotel can focus on maintaining and
managing the team so that they can effectively solve the problems in this they can select the
professionals and highly experienced person that is related to research, financial and technical
departments because these three are an effective departments who can manage all the problems
related to culture differences and performance management in all their outlets globally.
Collect data to make improvement
In this research department can research the Asian, African and European culture so that
they can offers the food and beverages as per the customers taste and values in different
countries. Finance team can provide the proper budget related to the research in the market and
for using advanced technology in improving the employee’s performance. In this they can install
the software that helps in analyzing the performance of an employees without connecting to their
peers, colleges etc. to effectively work by this department they can create a healthy environment
within the organisation(Dawson and et. al., 2015).
Implement

After making all the teams related to the issues and allocation the work by the general
manger of a Intercontinental hotels to different teams now its time to implement the work by a
team as per the planned scenario. they use effective computer system to collect, record, store and
retrieve all the information at the time of implementing the plan this helps in achieving the
targets(Camilleri, 2017).
Evaluate
At last evaluate all the measures that were taken place to solve the problems related to
cultural barriers. If there is a need to take any action general manager make a control on all the
work so that wastage of time can ne eliminating and predictive results can be achieved(Eling and
Schaper, 2017).
CONCLUSION
From the above explained report it is to be concluded that busi8ness environment is a
prominent term to analyse for every company so that they can sustain in the competitive market
and also gain the rival firms. In this to analyse the external environment PESTLE is the best
factor because it gives the knowledge related to all aspects i.e. political, social, technological,
economical, legal, environment. It also inculcates the importance of recruitment and selection
process that can affect and make the strong workforce within the business firm so that they will
stay in the market for a longer period of time. Further it suggests the impact of culture, equality
and diversity of an organisation and also shows the main methods of performance appraisal as it
helps in maintaining the workforce of a hospitality sector which is very essential for the firm. at
last it helps in given the recommendation with the help of using outline plan so that company
will sustain in the competitive market and enjoys high amount of profits and revenues(Holotiuk
and Beimborn, 2017).

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