Maldives Business Environment: Market, Trade, and Global Impact

This report examines the business environment in the Maldives, focusing on market structures, international trade, and global factors. It begins by defining business and introducing Wyndham Hotels & Resorts as a case study, particularly focusing on the impact of market structures on pricing and out...Read More

Businesses

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Explain how market structures determine the pricing and output decisions of businesses.. .3
Judge how the business and cultural environments shape the behaviour of a selected
organization............................................................................................................................4
Discuss the significance of international trade to Maldives business organizations.............5
Analyse the impact of global factors on Maldives business organizations............................7
Explain any two of the following global factors:...................................................................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9
Books and journals.................................................................................................................9

INTRODUCTION
Business can be defined as an activity where the main purpose is to make the money e
by selling the products and services within the given target market. Tourism industry is
continuously growing where there are number of investors are seeking to invest within the
different businesses for getting growth and profit. This report is Wyndham Hotels &
Resorts, it is a leading hotel and resort chain from America which one to invest in Maldives
developing tourism destination (Buckley, Guitart and Shakeela, 2017). This report is consist
of identification of the market structure for determining the price and output decisions for the
business.in the middle of the report there will be discussion on the pestle analysis of the
Maldives business environment and analysis of identifying the different environment factor
which support the organisation to achieve its objectives.it also consider the discussion on the
significance of the international trade within the Maldives business organisations (Shakeela
and Weaver, 2017). In the end of this report there will be discussion about analysing the
impact of the global factors on the business organisation situated in Maldives by the help of
international trade market opportunities global growth and world trade organisation.
MAIN BODY
Explain how market structures determine the pricing and output decisions of businesses.
The market structure limits the pricing decisions of the Wyndham Hotels & Resorts’
products or services
Market structure can be defined as an area where the buyer and seller contact each
other for exchanging the goods and services at a particular place. Market structure is said to
be the characteristics of the market like what the slope of the market is going on like
Monopoly oligopoly make the structure or any other which also help in identification of
products and services within the market.
Wyndham Hotels & Resorts is dealing in a monopolistic competition market where
firm is offering the same product but in different style. Companies offering the hotel suites
and resorts but they have different structure from its regular competitors. The market factor
has direct influence on the price of the company as because company is operating in
monopolistic competition market where companies have different product (Yuliansyah,
Rammal, and Rose, 2016). So, it can charge the price according to the product where it can

adopt the strategies like allotting different sweets to different customers according to their
budget. This also helps company in maintaining and satisfying needs of different class of
customers. Company can use different price strategy which will also impact on the revenue of
organisation as it can increase its revenue. For increasing the revenue company can use
differentiate pricing strategy where it can attract every class of the customers.
The market structure limits the output decisions of the Wyndham Hotels & Resorts
products or services
Market structures also have its impact on the output decisions of an organisation's
product and services. This is because company have to formulate the policies according to the
competition within the market and Wyndham Hotels & Resorts is operating within the
monopolistic market where the prices are not so important part in the competition because
every company is offering different level of satisfaction to the customer (Holotiuk and
Beimborn, 2017). So, for this Wyndham Hotels & Resorts have to formulate a different
strategy where it can limits the output of the organisation and provide better services to the
customers for attracting more and more customers towards the organisation.it can also get the
benefit from the good reputation of the company within the market because of its large scale
operations and big chain.
Judge how the business and cultural environments shape the behaviour of a selected
organization
PESTLE analysis
It is important for organisation to identify the external environment of the nation
where it was going to start its business. This organisation can use pestle analysis, where it can
identify the political economic and social technological environmental and legal actors of the
area where it is going to operate.
Political: political environment of the Maldives is stable as there is a stable
government which is free from terrorism and corruption within the nation. So it is positive
impact on the business of tourism industry because it helps in smoothing the policies and
making effective for every business to govern their activities (Johnson, 2016).
Economics: economic factor consist of exchange rate interest rate GDP growth and
many more. In context of tourism industry and environment within the Maldives, there is
stability in interest rate as well as other economic factors of nation which help the different

businesses to survive. Economic condition of Maldives is also strong which help different
Wyndham Hotels & Resorts related to tourism and development survives within this.
Social factors: Maldives follow the mixed culture which is highly depending on their
tourist as well as local residents. There are continuous changes within the trends and
following of the people in Maldives society. Because of increasing foreign influence there is
also number of changes within this. The major part of Maldives society is inspired from
Indian society. So it is important for Wyndham Hotels & Resorts to follow the trends and
beliefs of the Indian society for maintaining their organisation as a successful one (Stevens
and Froman, 2019).
Technological factors: technological factors include the continuous changes within
the technology of the area where the organisation want to work. In context of Maldives, there
is low range of technology within the tourism industry it does not impact on the Wyndham
Hotels & Resorts but it can be used by the firm for taking a competitive advantage by
bringing new technological means for doing the business within this nation.
Environment factor: environmental factors are those which include the geographical
climate and pollution condition of the nation where the organisation is working are willing to
work. In context of Maldives, the environmental factors of the Maldives are favourable to the
tourism and allied industries this is because it attracts number of customers because of the
geographical locations and aqua diversity. Provide positive impact on the Wyndham Hotels
& Resorts of tourism industry as it helps them in gaining the advantage of the geographical
and climate factors (Shakeela and Weaver, 2018).
Legal factors: legal factors are all important part of the business decisions this is
because, it include all the rules and regulations which are formed by the legal authorities of
the nation. There are number of legal rules and regulations which have to follow by the
organisation before launching their venture within Maldives. This have positive impact on the
Wyndham Hotels & Resorts because it doesn’t required to form different policies because
there are already number of policies related to working and other rules for tourist as well as
tourism industry (Kapmeier and Gonçalves, 2018).
Analyse how the identified environmental factors support business organizations in
achieving their business objectives

Identify business environment directly help organisation in increasing profitability
and maintain a good competitive advantage within the market. It also helps in achieving the
business objectives and goals. For this company have to identify the different environment
and factors in an effective manner. Social, political and legal factors will help company in
identifying the behaviour of consumer as well as compiling with policies and rules which are
directly related to functioning within a particular (Buckley, Guitart and Shakeela, 2017).
There are number of companies like Wyndham Hotels & Resorts which are operating
according to these factors and form the different policies which help them in survival as well
as increase their competitiveness within the market by eliminating the competition and
identifying the proper strength weakness and opportunities of the organisation.
Discuss the significance of international trade to Maldives business organizations.
Discuss the benefits of international trade to the Maldives business in the scenario.
International trade: it can be defined as the exchange of goods capital and services across the
different nations or international borders of a nation where a developing country contribute to
developed countries and developed country contribute to developing countries. Which states are
for representing the significant share of gross domestic products within the country and manage
the demand and supply across different nations. International trade bring type of benefits towards
the Maldives business organisations and help them in growth which is discussed below:
Help in balance of trade: balance of trade is an important part of country because it
help in managing the trade balance and the variance between export and import of the
country.is also beneficial for different organisations who are operating within the country as
international trade help them in maintaining export and import balance by using the export
import will in the international trade system (Shakeela and Weaver, 2018).
Bring new technology: sharing of goods and services technologies of different economy
are also shared which bring effective and new technology to the organisations of a nation. Can use
this technology for reducing the wastage and what is the cost of production and then the
competitive advantage.
Improvement in customer satisfaction: international trade also contribute towards
improving the customer satisfaction by the help of new technologies and methods which can
used by different organisation of a nation from international trade and increase the
satisfaction of their customer identification of their behaviour (Shakeela and Weaver, 2017).

Discuss the harmful effects of international trade on the Maldives organization in the
scenario.
International trade barriers which can impact negatively on the Maldives organisation
some of these are mentioned below:
Increase competition: international trade have direct and negative impact on the
organisations of Maldives because it increase the competition within the market where they
have to face the multinational companies which have more higher technology and a good
infrastructure then the Wyndham Hotels & Resorts of Maldives. So it is a negative impact of
international trade on the Maldives because of increased competition (Neumayer and
Plümper, 2016).
Changing culture: international trade also bring the culture of the different countries
toward the nation which can lead in changing culture within the society. Impact negatively on the
organisation as it can change the trends of the society which are related to services and product of
the Wyndham Hotels & Resorts. So, it is a negative impact of international trade on organisation
Geographical changes: due to continuous increase in international trade there are number
of problems arise in climate and natural protection because for fulfilling the demands of the
consumers, different type of organisation started violating the rules and regulations regarding the
climate protection which negatively on the geographical locations of Maldives sea level is
increasing continuously which decreasing the land area of Maldives and occupational areas for
Wyndham Hotels & Resorts who are operating within Maldives.
Analyse the impact of global factors on Maldives business organizations
Global factor has different impact on the organisation of the Maldives as well as other
nation because of their direct influence on the working. This impact described below:
 The major impact of global factors on the business of Maldives organisation is that it
set different type of rules and regulations for the different organisations who are
working on the Maldives for saving the interest of consumers as well as business
holders from unethical practices and misconduct done by both businesses and
consumers (Buckley, Guitart and Shakeela, 2017).
 The second major impact of these global practices on the profitability of business
organisation as they have to contribute a small amount or a path to these global
factors for regular running of this type of business

 This type of global factor also impact organisations productivity as they formulated
rules and regulations for hiring the employees within the organisation. The
productivity of the organisation fires the employees according to this.
Explain any two of the following global factors:
Global growth: Global growth can be defined as overall GDP rate on which the
world economy is developing. This is directly related to the overall economy of the world
work contributing towards the development of world growth. Global economic growth is the
forecast to age of 2.5% in 2020 as the investment and trade gradually recover from the last
year significant weakness but download risk. This Data is presented by the world Bank.
WTO: World trade organisation is an international inter government organisation that
is concerned with the regulation of international trade between nation.the world trade
organisation is office LIC coming from 1st January 1998 under a Marxist agreement by
different nations which is signed by 123 Nations on April 1994.the world trade organisation
deals with regulation of trade in goods and services and intellectual properties between two
countries in the whole world.
Explain how these factors affect the selected business
Global growth and world trade organisation both have the direct impact on the
business of Wyndham Hotels & Resorts. This is because it wants to expand its business to a
different nation named as Maldives where company want to open a new hotel chain and
operate its hotels for gaining the profitability. Hear, the economic growth and world trade
organisation directly impact on it because global growth make number of opportunities for
the business successfully then its operation as contribution of Maldives is good in the global
growth which shows that company can easily open its business in this nation where it can
increase its profit because of the proper economic growth of the nation and effective
contribution to the global growth (Shakeela and Weaver, 2018). World trade organisation
impact on the business of Wyndham Hotels & Resorts because firm is operating at global
level where world trade organisation help in framing the policies and procedures which will
directly related to the policies and procedure of the Maldives legal authorities. WTO also
health Wyndham Hotels & Resorts in identifying the opportunities within the Maldives for
growing the business and help in maintenance of reducing the legal liability.

CONCLUSION
It can be concluded from the above mentioned report that business include number of
factors and organisation in tourism industry must identify all these factors related to business
for effectively determining the strategies and making the decision policies strong. Wyndham
Hotels & Resorts have to clearly identify the pastel environment of the organisation and the
nation where it going to start its business for getting maximum advantage. From the above
conclusion it is also recommended organisation must follow the pestle analysis of the area
and clearly identify the benefits and drawbacks of international trade within that nation where
it is going to launch the business. It is also recommended that it must be clearly identified
strategies and plans for effectively using and maintaining the management within the
organisation for better productivity and employee motivation. It is also recommended to the
organisation that they must follow number of functions and rules and regulations which will
help company in reducing the legal liabilities in new nation and improve their governance.

REFERENCES
Books and journals
Buckley, R.C., Guitart, D. and Shakeela, A., 2017. Contested surf tourism resources in the
Maldives. Annals of Tourism Research, 64, pp.185-199.
Buckley, R.C., Guitart, D. and Shakeela, A., 2017. Contested surf tourism resources in the
Maldives. Annals of Tourism Research, 64, pp.185-199.
Buckley, R.C., Guitart, D. and Shakeela, A., 2017. Contested surf tourism resources in the
Maldives. Annals of Tourism Research, 64, pp.185-199.
Holotiuk, F. and Beimborn, D., 2017. Critical success factors of digital business strategy.\
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Kapmeier, F. and Gonçalves, P., 2018. Wasted paradise? Policies for Small Island States to
manage tourism‐driven growth while controlling waste generation: the case of the
Maldives. System Dynamics Review, 34(1-2), pp.172-221.
Neumayer, E. and Plümper, T., 2016. Spatial spill-overs from terrorism on tourism: Western
victims in Islamic destination countries. Public Choice, 169(3-4), pp.195-206.
Shakeela, A. and Weaver, D., 2017. The Maldives: Parallel paths of conventional and
alternative tourism. Routledge handbook on tourism in Asia Pacific. London:
Routledge.
Shakeela, A. and Weaver, D., 2017. The Maldives: Parallel paths of conventional and
alternative tourism. Routledge handbook on tourism in Asia Pacific. London:
Routledge.
Shakeela, A. and Weaver, D., 2018. “Managed evils” of hedonistic tourism in the Maldives:
Islamic social representations and their mediation of local social exchange. Annals of
Tourism Research, 71, pp.13-24.
Shakeela, A. and Weaver, D., 2018. “Managed evils” of hedonistic tourism in the Maldives:
Islamic social representations and their mediation of local social exchange. Annals of
Tourism Research, 71, pp.13-24.
Shakeela, A. and Weaver, D., 2018. Participatory planning and tourism development in the
Maldives: a prerequisite of sustainability?. In Managing Asian Destinations (pp. 73-
85). Springer, Singapore.
Stevens, G.M. and Froman, N., 2019. The Maldives archipelago. In World seas: an
environmental evaluation (pp. 211-236). Academic Press.
Yuliansyah, Y., Rammal, H.G. and Rose, E., 2016. Business strategy and performance in
Indonesia’s service sector. Journal of Asia Business Studies.