London City Hotel: Key Issues in Business Environment Analysis
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This report provides an analysis of key issues within the business environment, specifically focusing on the travel and leisure sector, using London City Hotel as a case study. It identifies three significant macro-level issues: technological advancements, environmental concerns, and social factors, detailing their impact on the micro-level environment, including suppliers, competitors, and customers. The report further explores the challenges faced in identifying these issues and suggests strategies for overcoming them, such as gathering information on technological changes and following social trends. The conclusion emphasizes the importance of identifying and addressing these issues through strategic planning to enhance business performance and efficiency, ultimately aiming to meet customer needs and ensure the success of the organization. References to books and journals are included.
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Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
A) Three key macro issues in the business environment that are significant for the ‘Travel &
Leisure’ Sector:...........................................................................................................................1
B) Impact of macro issues on micro level...................................................................................2
C) Challenges faced while identifying the issues and its appropriate ways to overcome such
challenges:...................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
A) Three key macro issues in the business environment that are significant for the ‘Travel &
Leisure’ Sector:...........................................................................................................................1
B) Impact of macro issues on micro level...................................................................................2
C) Challenges faced while identifying the issues and its appropriate ways to overcome such
challenges:...................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6


INTRODUCTION
Business environment refers to all the external and internal factors that affect the
operational and executional ability of an organisation as well as functions of a company
including their suppliers, customers, management, employees etc. (Business environment, 2018).
It is important for every firm to analyse such factors and identify causes of negative impact to
find out the solution of these factors to turn into positive impact. This report is based on London
City Hotel which is located in London, UK. In this report, key issues of macro factors on
business environment are discussed and its impact on micro level environment is discuss. Apart
from this, some challenges and proper way to overcome these challenges are discussed in this
report.
MAIN BODY
a) Three key macro issues in the business environment that are significant for the ‘Travel &
Leisure’ Sector
Industry:
Industry is the manufacture of services and goods inside an economy. The major origin of
income of a company or group is the indicator of its applicable industry. When a big group has
multiple origin of income generation.
Sector:
It is an area that is distinguish from others and economical activity of a country is
separated. Travel and leisure sector is a diverse and a large section of the FTSE.
Sub-sector:
Sub-sector is a part of sector that is already divided. In this report chosen sub sector is
London City Hotel.
The travel and tourism sector are undertaken the alteration at large scale. Issues are major
affect the business operations of tour and travel companies. It has a broad level of connection
with the social changes as well as technological changes. There are some factors which are as
follows:
Technological factor:
It is a major issues which has changed the attribute of travel and leisure sector at large
scale. This is clear that with the aid of definite feature, an enterprises can better their service
1
Business environment refers to all the external and internal factors that affect the
operational and executional ability of an organisation as well as functions of a company
including their suppliers, customers, management, employees etc. (Business environment, 2018).
It is important for every firm to analyse such factors and identify causes of negative impact to
find out the solution of these factors to turn into positive impact. This report is based on London
City Hotel which is located in London, UK. In this report, key issues of macro factors on
business environment are discussed and its impact on micro level environment is discuss. Apart
from this, some challenges and proper way to overcome these challenges are discussed in this
report.
MAIN BODY
a) Three key macro issues in the business environment that are significant for the ‘Travel &
Leisure’ Sector
Industry:
Industry is the manufacture of services and goods inside an economy. The major origin of
income of a company or group is the indicator of its applicable industry. When a big group has
multiple origin of income generation.
Sector:
It is an area that is distinguish from others and economical activity of a country is
separated. Travel and leisure sector is a diverse and a large section of the FTSE.
Sub-sector:
Sub-sector is a part of sector that is already divided. In this report chosen sub sector is
London City Hotel.
The travel and tourism sector are undertaken the alteration at large scale. Issues are major
affect the business operations of tour and travel companies. It has a broad level of connection
with the social changes as well as technological changes. There are some factors which are as
follows:
Technological factor:
It is a major issues which has changed the attribute of travel and leisure sector at large
scale. This is clear that with the aid of definite feature, an enterprises can better their service
1
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quality. For example- hospitality sector provide facility of reservation of advanced booking and
it is possible only via high technological advancement. This sector improve their quality of
services and add some features that put positive and effective impact on consumers. In the travel
and leisure sector, technological advancement and online platform are huge or immense. The
travel and leisure sector use innovative and new technologies for better productivity and
customer satisfaction (Clair and Milliman, 2017). These advanced technology can increased the
profit and customers, if travel and leisure companies are using these types of technologies. It
allows the virtual tour to the visitors. The hotels and tour operators are also creating complete
use of it. The technological advancement has a broad level of significance in order to bringing
the changes in leisure and travel sector.
Environmental factor:
It is another important factor that is driving changes within the leisure and travel sector. It
has a broad level of importance within the hindrance of nature from any type of harm. The
tourism tends to be developed or fostered that promote the protection and safety of the
environment. The environment consciousness has been circulate among the companies as well
as tourists active into the broad scope of travel and leisure sector. The London city hotel should
contribute for the protection and safety of environmental resources. The wastage is need to be
trash properly (Davies, 2017). Due to broad level of travel and leisure sector, the level of
pollution is also increasing really fast. They clear that efforts are create in this company to save
unique environments and there should not any type of physical harm. It support to increasing and
improving the knowledge about surroundings awareness. So, its clear that the changes are
noticed in this sector.
Social factor:
Security is an preparation for the protection against any type of threat for any community
or society. In this sector, it is increasing on the daily basis so rising the protection measures that
has become major challenges in front of the travel and leisure sector as well as the local
government. The people is spend their income on travel and leisure because their income is high.
But the terrorism and social security put its affect at the development and growth in the ratio of
domestic tourism and international tourism. The travel and leisure sector have a high level of
security and protection for the safety of international tourist. Different countries have a various
and high level types of risking processes that has created the security and protection layers very
2
it is possible only via high technological advancement. This sector improve their quality of
services and add some features that put positive and effective impact on consumers. In the travel
and leisure sector, technological advancement and online platform are huge or immense. The
travel and leisure sector use innovative and new technologies for better productivity and
customer satisfaction (Clair and Milliman, 2017). These advanced technology can increased the
profit and customers, if travel and leisure companies are using these types of technologies. It
allows the virtual tour to the visitors. The hotels and tour operators are also creating complete
use of it. The technological advancement has a broad level of significance in order to bringing
the changes in leisure and travel sector.
Environmental factor:
It is another important factor that is driving changes within the leisure and travel sector. It
has a broad level of importance within the hindrance of nature from any type of harm. The
tourism tends to be developed or fostered that promote the protection and safety of the
environment. The environment consciousness has been circulate among the companies as well
as tourists active into the broad scope of travel and leisure sector. The London city hotel should
contribute for the protection and safety of environmental resources. The wastage is need to be
trash properly (Davies, 2017). Due to broad level of travel and leisure sector, the level of
pollution is also increasing really fast. They clear that efforts are create in this company to save
unique environments and there should not any type of physical harm. It support to increasing and
improving the knowledge about surroundings awareness. So, its clear that the changes are
noticed in this sector.
Social factor:
Security is an preparation for the protection against any type of threat for any community
or society. In this sector, it is increasing on the daily basis so rising the protection measures that
has become major challenges in front of the travel and leisure sector as well as the local
government. The people is spend their income on travel and leisure because their income is high.
But the terrorism and social security put its affect at the development and growth in the ratio of
domestic tourism and international tourism. The travel and leisure sector have a high level of
security and protection for the safety of international tourist. Different countries have a various
and high level types of risking processes that has created the security and protection layers very
2

stringent and strict. Thus, this types of security measures is very important and have a huge
impact on the travel and leisure sector. These three factors are driving the alteration at very wide
level.
All the above elements impact on the business environment (Fineman, 2017).
b) Impact of macro issues on micro level
There are different issues arises in macro environment which make great impact on micro
level in context of travel and leisure sector. Impacts are determine as under:-
Technological factor
It is a macro issue in business environment. It refers to enhancement in productivity of
goods and services in an organisation. It is evaluated previously that now-a-days, technologies
are changing very fast which is creating huge impact on micro level. Impact of technological
factor at micro level are as follows:-
Suppliers- Suppliers are those people and firms who supply goods and services from
various location to organisations in travel and leisure sector. If the exchange rates changes
rapidly than it is difficult for suppliers to provide stock in low price. Sometimes, possibility of
charging high prices is increased to match with exchange rate (Kolk, 2016). At the time of
technological advancement, suppliers charge high prices for equipments and material but
innovative technology helps to reduce cost and time and it also increase productivity of an
organisation. For instance: if suppliers of London City Hotel provide goods or services to their
clients with the help of new technology, this will increase its profitability and suppliers can get
more profit from technological factor.
Competitors: All the competitors affected by macro factors. If company has to adopt
new technology then it will give advantage from their competitors and helps to beat competition.
Every organisation make strategy to take advantage from competitors. Sometimes, this factor
create issues more than opportunities because advance technology needs more maintenance
which increases cost of an organisation. When London City Hotel not upgrade their services as
per need of clients then it make negative impact in front of customers and tends to decreasing
profit and competitors get advantage of this issue (Silvestre, 2015).
Social factor
These factors are related with security, social welfare, taste and preferences of consumer
etc. According to this factor, customers needs security in travelling and resting area. In context of
3
impact on the travel and leisure sector. These three factors are driving the alteration at very wide
level.
All the above elements impact on the business environment (Fineman, 2017).
b) Impact of macro issues on micro level
There are different issues arises in macro environment which make great impact on micro
level in context of travel and leisure sector. Impacts are determine as under:-
Technological factor
It is a macro issue in business environment. It refers to enhancement in productivity of
goods and services in an organisation. It is evaluated previously that now-a-days, technologies
are changing very fast which is creating huge impact on micro level. Impact of technological
factor at micro level are as follows:-
Suppliers- Suppliers are those people and firms who supply goods and services from
various location to organisations in travel and leisure sector. If the exchange rates changes
rapidly than it is difficult for suppliers to provide stock in low price. Sometimes, possibility of
charging high prices is increased to match with exchange rate (Kolk, 2016). At the time of
technological advancement, suppliers charge high prices for equipments and material but
innovative technology helps to reduce cost and time and it also increase productivity of an
organisation. For instance: if suppliers of London City Hotel provide goods or services to their
clients with the help of new technology, this will increase its profitability and suppliers can get
more profit from technological factor.
Competitors: All the competitors affected by macro factors. If company has to adopt
new technology then it will give advantage from their competitors and helps to beat competition.
Every organisation make strategy to take advantage from competitors. Sometimes, this factor
create issues more than opportunities because advance technology needs more maintenance
which increases cost of an organisation. When London City Hotel not upgrade their services as
per need of clients then it make negative impact in front of customers and tends to decreasing
profit and competitors get advantage of this issue (Silvestre, 2015).
Social factor
These factors are related with security, social welfare, taste and preferences of consumer
etc. According to this factor, customers needs security in travelling and resting area. In context of
3

travel and leisure industry, if organisations are ensure that they will provide better service with
complete security to their customers than it helps to enhance business performance. But if firms
are not capable to provide them better security and are not able to contribute in social welfare
then it make a negative impact on their business operations. So, in this case, customers will
switch to other firm where they get proper security and best services.
Customers- Customers are the important part of micro level environment. They make a
great impact on organisational activities (Konstantinov and Cooney, 2015). Now a days
consumers needs more safety and security. If the companies of travel and leisure sector are not
able to provide good services, security to the customers and does not contribute in social welfare
than it can make an adverse impact on their profitability. Decreasing number of customers can
also lead the organisation toward a failure. In case of London City Hotel, if the manager of hotel
will not provide better service with proper security to their visitors then it make negative impact
in front of customers.
Competitors- All the competitors impact on macro as well as micro level and also affect
the trading operations when they deal in same sector. Some businesses have a fairly good
appreciation in competition market. It is important to realise that failure to do so will make
impact on their long term success. In case of London City Hotel, there are many competitors in
travel and leisure sector. So, if firm will not contribute in social welfare and safety and security
of customers them it make a negative impact on a business enterprise.
These above are the issues of macro factors of business environment which make impact
on micro level (Kopnina and Blewitt, 2018). Technology and social factors are the majors factors
that affects overall performance of an organisation.
c) Challenges faced while identifying the issues and its appropriate ways to overcome such
challenges:
Challenges:
Every business face the difficulty while driving the business as there are several elements
which impact the activities of the company. An enterprise have to deal with two leading
problems that are frequent changes in technology and protection measure that impact the
company who is operating business in travel and leisure sector.
Many companies are driving business under travel and tourism sector and facing many
challenges and difficulties that is technological change, environmental change and social change
4
complete security to their customers than it helps to enhance business performance. But if firms
are not capable to provide them better security and are not able to contribute in social welfare
then it make a negative impact on their business operations. So, in this case, customers will
switch to other firm where they get proper security and best services.
Customers- Customers are the important part of micro level environment. They make a
great impact on organisational activities (Konstantinov and Cooney, 2015). Now a days
consumers needs more safety and security. If the companies of travel and leisure sector are not
able to provide good services, security to the customers and does not contribute in social welfare
than it can make an adverse impact on their profitability. Decreasing number of customers can
also lead the organisation toward a failure. In case of London City Hotel, if the manager of hotel
will not provide better service with proper security to their visitors then it make negative impact
in front of customers.
Competitors- All the competitors impact on macro as well as micro level and also affect
the trading operations when they deal in same sector. Some businesses have a fairly good
appreciation in competition market. It is important to realise that failure to do so will make
impact on their long term success. In case of London City Hotel, there are many competitors in
travel and leisure sector. So, if firm will not contribute in social welfare and safety and security
of customers them it make a negative impact on a business enterprise.
These above are the issues of macro factors of business environment which make impact
on micro level (Kopnina and Blewitt, 2018). Technology and social factors are the majors factors
that affects overall performance of an organisation.
c) Challenges faced while identifying the issues and its appropriate ways to overcome such
challenges:
Challenges:
Every business face the difficulty while driving the business as there are several elements
which impact the activities of the company. An enterprise have to deal with two leading
problems that are frequent changes in technology and protection measure that impact the
company who is operating business in travel and leisure sector.
Many companies are driving business under travel and tourism sector and facing many
challenges and difficulties that is technological change, environmental change and social change
4
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etc. (Lewandowski, 2016). All the changes are impacting the business performance activity of
the London city hotel. This type of challenges can be solved with the support of proper strategies
and effective planning. Some elements are the as follows that can be adopted by the London city
hotel to overcome form these difficulties:
Gather information about the technological changes: Having appropriate and right
data about technology changes can aid to get over the challenges that can impact the
organisations because they can select those techniques which is produce goods very fast and
generate lower price as comparison to others. It is very essential for the London city hotel who
are a concern with travel and leisure industry to have the new technology according to market
demand in which they can change their services in respect to the customers and market..
Follow social trends: It is very essential for the business of leisure and travel sector to
follow social tendency to get over the difficulties because all of them can aid to increase
efficiency of whole company and productivity of worker. If they effectively follow the trends of
society then they easily know about.
All of the above define the ways which can be take over by this company to driving
business under travel and tourism sector to get over the difficulties of common changes in
technological and social trends.
CONCLUSION
From the above mentioned project report it has been conclude that there are different factors
in business environment including micro and macro which affect the efficiency of an
organisation. There are some major issues in macro environment which impacts on productivity
of a firm. In current market scenario, business have to face many challenges related to up-
gradation in technology, competitor's strategy and taste and preference of consumers. So, to
resolve these challenges company have to make strategy and proper planning to improve their
performance and enhance their efficiency. It is important for the managers of organisation to
identify the issues and client's needs so that all of them can be resolved or satisfied and the
business activities can be performed in an effective and efficient manner.
5
the London city hotel. This type of challenges can be solved with the support of proper strategies
and effective planning. Some elements are the as follows that can be adopted by the London city
hotel to overcome form these difficulties:
Gather information about the technological changes: Having appropriate and right
data about technology changes can aid to get over the challenges that can impact the
organisations because they can select those techniques which is produce goods very fast and
generate lower price as comparison to others. It is very essential for the London city hotel who
are a concern with travel and leisure industry to have the new technology according to market
demand in which they can change their services in respect to the customers and market..
Follow social trends: It is very essential for the business of leisure and travel sector to
follow social tendency to get over the difficulties because all of them can aid to increase
efficiency of whole company and productivity of worker. If they effectively follow the trends of
society then they easily know about.
All of the above define the ways which can be take over by this company to driving
business under travel and tourism sector to get over the difficulties of common changes in
technological and social trends.
CONCLUSION
From the above mentioned project report it has been conclude that there are different factors
in business environment including micro and macro which affect the efficiency of an
organisation. There are some major issues in macro environment which impacts on productivity
of a firm. In current market scenario, business have to face many challenges related to up-
gradation in technology, competitor's strategy and taste and preference of consumers. So, to
resolve these challenges company have to make strategy and proper planning to improve their
performance and enhance their efficiency. It is important for the managers of organisation to
identify the issues and client's needs so that all of them can be resolved or satisfied and the
business activities can be performed in an effective and efficient manner.
5

REFERENCES
Books and Journals
Clair, J. and Milliman, J., 2017. Best environmental HRM practices in the US. In Greening
People (pp. 49-73). Routledge.
Davies, P. G., 2017. European Union Environmental Law: An introduction to key selected issues.
Routledge.
Fineman, S., 2017. The business of greening: an introduction. In The business of greening (pp. 1-
10). Routledge.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Konstantinov, K. B. and Cooney, C. L., 2015. White Paper on Continuous Bioprocessing May
20–21 2014 Continuous Manufacturing Symposium. Journal of pharmaceutical
sciences. 104(3). pp.813-820.
Kopnina, H. and Blewitt, J., 2018. Sustainable business: Key issues. Routledge.
Lewandowski, M., 2016. Designing the business models for circular economy—Towards the
conceptual framework. Sustainability. 8(1). p.43.
Quarshie, A. M., Salmi, A. and Leuschner, R., 2016. Sustainability and corporate social
responsibility in supply chains: The state of research in supply chain management and
business ethics journals. Journal of Purchasing and Supply Management. 22(2). pp.82-
97.
Sargeant, A. and MACQUILLIN, I., 2016. Marketing for nonprofit organisations. In The
Marketing Book (pp. 555-576). Routledge.
Silvestre, B. S., 2015. Sustainable supply chain management in emerging economies:
Environmental turbulence, institutional voids and sustainability trajectories.
International Journal of Production Economics. 167. pp.156-169.
Online
Business environment. 2018. [Online]. Available through:
<http://www.economicsdiscussion.net/business-environment/business-environment-
types-external-micro-and-external-macro/10095>
6
Books and Journals
Clair, J. and Milliman, J., 2017. Best environmental HRM practices in the US. In Greening
People (pp. 49-73). Routledge.
Davies, P. G., 2017. European Union Environmental Law: An introduction to key selected issues.
Routledge.
Fineman, S., 2017. The business of greening: an introduction. In The business of greening (pp. 1-
10). Routledge.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Konstantinov, K. B. and Cooney, C. L., 2015. White Paper on Continuous Bioprocessing May
20–21 2014 Continuous Manufacturing Symposium. Journal of pharmaceutical
sciences. 104(3). pp.813-820.
Kopnina, H. and Blewitt, J., 2018. Sustainable business: Key issues. Routledge.
Lewandowski, M., 2016. Designing the business models for circular economy—Towards the
conceptual framework. Sustainability. 8(1). p.43.
Quarshie, A. M., Salmi, A. and Leuschner, R., 2016. Sustainability and corporate social
responsibility in supply chains: The state of research in supply chain management and
business ethics journals. Journal of Purchasing and Supply Management. 22(2). pp.82-
97.
Sargeant, A. and MACQUILLIN, I., 2016. Marketing for nonprofit organisations. In The
Marketing Book (pp. 555-576). Routledge.
Silvestre, B. S., 2015. Sustainable supply chain management in emerging economies:
Environmental turbulence, institutional voids and sustainability trajectories.
International Journal of Production Economics. 167. pp.156-169.
Online
Business environment. 2018. [Online]. Available through:
<http://www.economicsdiscussion.net/business-environment/business-environment-
types-external-micro-and-external-macro/10095>
6
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