Comprehensive Analysis: Park Plaza Hotel's Macro Environment Report

This report provides a comprehensive analysis of the macro environment impacting Park Plaza Hotel, a business operating in the UK hotel and resort industry. The report begins with an introduction to the business environment and its influence on organizational performance. The main body of...Read More

PRESENTATION AND
REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Positive and negative impacts of macro environment-................................................................3
Internal and external analysis-.....................................................................................................5
Strengths and weaknesses interrelate with external macro factors-.............................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment refers to the factors which affect the performance of an
organization. It consists various internal and external elements (Neck, 2018) The report will be
evaluating such macro environmental factors which are affecting the organizational performance.
At the end of the report internal strengths and weaknesses would be evaluated considering the
relationship with external factors of the entity. With respect to the analysis SWOT and PESTEL
analysis will be carried out for the organization and at the end of the report some suggestions
would be extended to help management in making favourable decisions to hike organizational
performance.
MAIN BODY
Park Plaza hotel is located in central London, UK. It is operating its business across the
nation and well-known for its lavish services and great ability to meet the demands of the
customers. It is having business of both hotel and resorts. The organization is targetting upper
mid market and giving them best services to get strong position in the market.
Positive and negative impacts of macro environment-
For Park Plaza hotel, PESTEL analysis is being carried out as-
Political factors-
The entity is operating its business across UK but having its customers from across the
world so global political factors are affecting the business. After Brexit to operating business is
not much easy for the entity and having issues with respect to eutopian clients. For instance- In
Covid-19 the government of UK imposed travel ban which affected the business of the entity. On
the other side the norms for such organization have been eased by the government so can
perform better, which is helping to enhance capabilities in the market.
Economic factors-
Economy of the world specifically of UK, got hammered in last couple of years. In lock-
downs a range of hotels got suffered. The entity is offering good range of services such as
Mandara spa, restaurant and bar and many such attractive offers yet not getting equal response
from the customers due to poor performance of the economy. At the same time now the economy
is getting recovered which is paving way to make more profit. That is the reason now Park Plaza
is offering attractive discounts such as at the rate 25%, so can take benefit (Werdani, et al. 2019)
Social factors-

The social proportions are also getting changed and the attitude of people towards such
hotels and bar is taking sharp turn. Now people are relying on such hotels which can provide
them better services at the same time. With this regard the entity is performing well and offering
a range of services. For instance- pool, bar, spa such types of services are helping to get the
customers attracted. At the same time some negative impacts are also being derived due to social
external factors such as after hit of Pandemics people are less likely to acquire hospitality
services they are now more likely to avoid it and find other ways for passing leisure time, here it
would be fair to say that the entity is suffering due to social factors.
Technological factors-
The organization is having its own website and also using some other social cites to
promote the business. It is bringing better to the entity at the same time also having some
negative impacts to such as due to technological enhancement is getting more challenges from
the competitors which is hindering the way of leading the market. For instance- some travelling
websites having their links with other hotels which is driving customers to other hotels.
Legal factors-
In UK Innkeeper laws are active and it is inevitable for the entities to deny it. So, it is
affecting the operations of the organization. For example-Park Plaza hotel is having need to
make sure proper practise of this law, which is somehow hindering their way to pay proper
attention to their core operations. On the other side it is also having its positive implications too.
The value of the entity among customers is getting new heights and creating good social status
there are a range of such laws such as Health and Safety at work act 1974 are affecting its
performance and ability to advance market grasp (Raharja and Arifianti, 2018)
Environmental factors-
Specifically after pandemic people and government are more likely to discuss such
environmental issues. The entity is now more conscious about fulfilment of its environmental
responsibilities. For instance- Park Plaza hotels is now serving environmental interests too and
practising such a healthy, environment friendly practices so can pave way of better services to
mankind. On the other hands it is having some negative sides too. Like- people are raising issues
with non-vegetarian diet, use of plastic etc. but without use of these things' hotel company can
not operate the business which is raising moral duty.

Internal and external analysis-
SWOT analysis For analysing the internal and external environment aspects SWOT analysis is
as-
Strengths-
 The quality of the entity is great, so it may somehow pave way to influence customers.
 40 and more hotels in the nation. Which is building good image and offering better
facilities to its clients (Lin, et al. 2021)
 Innovative from the beginning. As it is offering a range of such different concepts such as
urban resorts, active resorts, gold resorts, spa resorts, ski resorts, family friendly resorts
etc. it not only offers well spanned schemes but assists to build greater market image.
 Partnership with travel agents and other stakeholders, who are guiding new people who
are less aware of the entity so it is supporting in making new clients.
 Located in London which gives age in being first choice for the customers, along with it,
operating digital tools and websites are aiding to hike market grasp.
Weaknesses-
 Brand recall is very limited. At the same time some other companies who are engaged in
the same realm are investing bigger amount to raise their notion in the market.
 The global approach of the entity is not much attractive. It is mainly trying to attract local
clients and sometime some pre intended cluster which is not suitable practise in this
competitive age.
 Facing sort of issues of internal management and after pandemics got suffered due to
poor performance.
Opportunities-
 Current market is offering a great diaspora to go for enhancement. After pandemics the
market is notching up fast recovery so here it can be taken as a good opportunity.
 The better image of the entity may give it upper hand. Park Plaza Hotel is well-known for
its services and facilities which would help it to get more potential customers attracted
(Simpson-Younger, 2020)
 The labour market of the nation is also looking in favour of hotel industry since there are
a range of new jobs have been generated in the sector so here Park Plaza hotel may seek
better career as a hospitality organization.

 BRICS countries are being seen as growing market in the world. So here the Park Plaza is
supposed to expand its roots to these nations in order to surge overall market reach and
revenues.
Threats-
 International economic slowdown may affects the operations of the organization.
 There is a great competition and the entity is having its limited operations so get affected
by some global giants too in the upcoming time (Raharja and Arifianti, 2018)
 The approach of travellers is also taking sharp turn they are less likely to explore newer
destinations.
 Post pandemic market is very danger to explore, here entity may face severe challenges.
 Brexit can be seen as the most horrendous aspects, sine the best market to explore was
Europe and due to this political move now the entity may face challenge to pave way in
the EU market.
Strengths and weaknesses interrelate with external macro factors-
The strengths and weaknesses of the organization are having their direct relationship with
macro factors. The organization is getting operated with wider diaspora so both strengths and
weaknesses are having their greater impacts on the performance of the entity.
On of the biggest macro environment factor technology which is getting reformed with
higher rate. Social and mobile technologies are notching up higher growth over the time and
affecting customer reach of the organization.
Social media is bringing bigger changes to the hotel giant, they are using various tools
such as micro-blogging sites, media platforms, mobile applications etc. in order to attract and
contact its potential customers. Park plaza is also using various tools such as Facebook and
Twitter in order to reach the customers (George, 2021)
Cloud technologies which are being used on higher scale due to their ability to revert
bigger to the entity. It eases the way to access files, software, storage and some other forms of
information. Park plaza it also gets advantages of the technology and making its data
management easier.
With the changing macro environment, AI is offering good scope of making foster
success to the entity. AI is also being used in order to maximize effectiveness and satisfying
clients appropriately. Use of AI is helpful to eradicate human errors and would be paving way

for errorless performance. At The same time Block chain technology is being installed frequently
by hotel entities since it paves way to manage their transactional records in more efficient
manner.
The strengths and weakness of Park Plaza hotel are getting influenced with the external
factors of the macro environment. From last couple of years the hotel sector is facing severe
challenges due to attack of Covid-19 and latter on some global failures too.
External factors are directly affecting various internal aspects of Park Plaza hotel such as
its products, pricing, costs, profitability, performance, quality, skills, brands, services, reputation,
process, infrastructure, profitability etc.
Due to hit of pandemics the entity faced drastic shift in its performance, but latter on has
shown good recovery as well. In the year 2020 the total revenues of Park Plaza Hotel went up to
41.4 million pounds which is living testimony of its good performance (Nandonde, 2019)
So Covid-19 which is an uncontrollable factor of macro environment affected
performance of the organization, but it has proved its strong ability to get the position back and
even bringing better results in term of revenues to the organization.
Even after, the hit of Covid-19 Park Plaza hotel accounted around 39% growth in term of
its revenues in the year 2020 which is clear evidence that due to internal strengths it overcame
the all odds of the market and gained profits.
As it has been above seen that the global approach of the entity was very limited but now
it is taking advantage of market circumstances and making its reach wider. For instance- as it is
having now more than 6000 unites and good collaboration with some other companies too
(Merrill, 2022) Drastic dissemination on social media platforms are giving upper hand to make
its curb stronger.
Park Plaza always tries to be innovative in term of its marketing approach and the way it
serves to its clients. There are a range of different hotels and avenues it is offering to the
customers so can meet their demands. This strength of the entity is interrelated with the external
environment since it has analysed the prevailing market dynamic, with the raising conviction of
consumerism the customers are more likely to obtain customized services such as spa hotel,
family resort, friendly resort, adventure resorts etc.
With this respect, Park Plaza Hotel not only evaluated the changing external environment
dynamics but also took appropriate action to counter these elements with its strengths, As it has

started its own website where a range of offers are being extended to the customers in order to
make them loyal.
CONCLUSION
From the report above it can be concluded that the environment in which business
performs its operations affects their performance. In the report for understanding the impacts of
the business environmental factors PESTEL analysis has been carried out. At the end of the
report to assess the strengths and weaknesses of the organization SWOT analysis has been
articulated, and the impacts of the factors were deciphered in context of the organization.

REFERENCES
Books and journals-
George, R., 2021. The Tourism and Hospitality Marketing Environment. In Marketing Tourism
and Hospitality (pp. 183-219). Palgrave Macmillan, Cham.
Lin, P. M., et. al. 2021. Impact of online food delivery services on China’s hotel catering
businesses. Journal of China Tourism Research, pp.1-21.
Merrill, P., 2022. Trip Essentials. Quality Progress. 55(3). pp.42-45.
Nandonde, F. A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence. 38(4). pp.54-61.
Neck, S., 2018. Dates for your.
Raharja, S. U. J. and Arifianti, R., 2018. Competitive Strategy In" XYZ" Four-Star Hotel
Company in Tangerang City, Indonesia. Review of Integrative Business and Economics
Research. 7. pp.117-126.
Raharja, S. U. J. and Arifianti, R., 2018. SWOT Analysis on the Export-oriented Ceramic
Industry Centre in Purwakarta, Indonesia. Review of Integrative Business and
Economics Research. 7. pp.189-199.
Simpson-Younger, N., 2020. Syphilis Patches: Form and Dramatic History in The Knight of the
Burning Pestle. In Performing Disability in Early Modern English Drama (pp. 233-
250). Palgrave Macmillan, Cham.
Werdani, R.E., et. al. 2019, October. Promotion Strategy in Grand Mercure Medan Angkasa
Hotel by SWOT Analysis. In International Conference on Maritime and Archipelago
(ICoMA 2018) (pp. 380-383). Atlantis Press.
Wise, J., 2019. The BMJ Awards 2019: UK Research Paper of the Year. BMJ, 365.
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