Higher Nationals Business Environment Analysis: PESTLE & SWOT Report

This report presents a PESTLE and SWOT analysis, examining the external factors impacting a business. The PESTLE analysis covers political, economic, social, technological, legal, and environmental factors, providing insights into the broader business environment. The SWOT analysis evaluates the strengths, weaknesses, opportunities, and threats, offering a comprehensive understanding of the business's internal and external positioning. The report references relevant sources to support its findings, providing a well-researched overview of the business environment. Accor is used as a case study for the analysis. The report is designed to provide a detailed view of the elements affecting the business and is supported by references using the Harvard referencing system.

Business management

Political factors
Diverse political scenario
Emergence of diplomatic issues
between the countries
Emergence of terrorism
Enhancement of trade and
business agreements

Economical factors
Average purchasing power of the
global customers is increasing
Acquisitions and mergers
Emergence of local brands

Social factors
Providence of personalized
services
Increase in trend of global
tourism
Rapid change in the social
pattern and trend

Technological factors
Online hotel booking and prepaid
cards
Technology in the hospitality
industry is rapidly changing

Legal factors
Diverse legal procedures
Legal formalities are different in
different countries.

Environmental factors
Number of laws and regulations
in relation to the protection of the
environment are being initiated
by different governments.
Accor is having certification for
following certain environmental
standards.

Strengths
Extensive brand value
Diverse service portfolio
Accor is having the access to
huge expertise and financial
resources.

Weaknesses
Higher fixed cost
Restricting them to invest in
different areas in order to take on
the domestic rivals.

Opportunities
Economy of the developing
countries is rapidly enhancing
Increase in the diplomatic
partnerships and agreements
between the countries

Threats
Emergence of political issues
such as terrorism
Increase in competition.

Reference
Gifford, R. and Nilsson, A., 2014. Personal and social factors
that influence pro‐environmental concern and behaviour: A
review. International Journal of Psychology, 49(3), pp.141-157.
Ingram, H., Tabari, S. and Watthanakhomprathip, W., 2013.
The impact of political instability on tourism: case of
Thailand. Worldwide hospitality and tourism themes, 5(1),
pp.92-103.
Mosco, V., 2014. Political Economy. In The Routledge
Companion to Global Popular Culture (pp. 35-44). Routledge.
Sozinova, A.A. and Fokina, O.V., 2014. Study of economic and
technological factors influencing development of services
market. Life Science Journal, 11(7s), pp.318-321.
Vahlne, J.E. and Johanson, J., 2017. The internationalization
process of the firm—a model of knowledge development and
increasing foreign market commitments. In International
Business (pp. 145-154). Routledge.