Business and Management Report: Pig Hotel's External Factors and CSR

This report provides a comprehensive analysis of Pig Hotel, a UK-based hospitality business. It begins with an executive summary highlighting the importance of contemporary developments in business and management for organizational success. The report examines Pig Hotel's external environment using PEST and Porter's Five Forces analyses, identifying key political, economic, social, and technological factors influencing the business. It then delves into the company's mission, vision, and financial performance. The report also explores the impact of corporate social responsibility (CSR) on the hotel's policies and decision-making, evaluating the effectiveness of the organization's responses to external challenges and suggesting areas for improvement. The analysis covers the importance of guest expectations, the hotel's strategic responses, and its approach to customer loyalty. Finally, the report includes a conclusion summarizing the key findings and recommendations for Pig Hotel's continued success in the competitive hospitality market.

Contemporary
Developments in Business
and Management

Executive summary:
Contemporary development in business and management is important for success of each
organisation. For this project, Pig Hotel is chosen hospitality industry which is located in United
Kingdom. This report was included different types of external factors and impacts on those and
response of hotel to those with effectiveness. PEST Analysis and Porter's five force analysis are
consider external part for organisation which will help them in developing success at market.
Along with this, Corporate social responsibility was also included in this project that highly
influenced on decision making and policies of Pig Hotel. Response of organisation towards their
success and development at market was also included that assist them in retaining customers for
long time and maintaining better reputation at market.

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
TASK 1............................................................................................................................................2
Brief overview of the primary external influences to which the organization and its
importance of each to the organization..................................................................................2
TASK 2............................................................................................................................................8
1)Analysis its relevance to an organization and how it influences policies and decision making
within your chosen organization or industry-sector...............................................................8
2)Critical evaluation of the effectiveness of the organization’s response..............................9
3)Demonstration of some areas for improvement in the response of the organization.......10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
APPENDIX....................................................................................................................................14
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INTRODUCTION
It has become essential for every organisation to develop changes in their business
activities due to the rise in competition level in marketplace. The purpose of contemporary
development is termed to be very much essential for an organisation so as to analyse and identify
those factors which greatly influence their functional activity of an organisation (Alvarez, 2016.).
The company which is being taken into consideration is of hospitality and tourism sector and that
is Pig Hotel. This hotel is divided into two groups namely Lime Wood Group and Home Grown
Hotels. Currently, this hotel has its five main parts in UK itself and they are namely The Pigs,
Pig in the wall, Pig on the beach, Pig near bath and Pig in the forest. The report is being divided
into two main parts of which the first task explains about the internal and external factors
influencing business activities. Whereas, task two explains about the demographic factors like
demand of ethics and about the CSR activities which directly influence company policies.
MAIN BODY
TASK 1
Brief overview of the primary external influences to which the organization and its importance of
each to the organization.
In hospitality sector, expectation of the guest is exceeding due to the advancement in
modern era specifically in service industry. Thus, the management of Pig Hotel which is termed
to be the part of Home Grown Hotel Group believes in the fact that rendering of effective
services to customers is term as the key strength of gaining loyalty and retention of customers for
long period of time. With this in regards, management of hotel has developed its strategy which
is based in single tag line and this is 'Thank You From The Pig' (Barnes and Hunt, 2013 ). In
addition to this, it mainly target business travellers and leisure guest to get there services. There
are several external factors which greatly influence Pig hotel. So in order to identify this aspects
management of Pig hotel has decided to carry out PEST analysis and Porter's five force analysis
which is being explained below:
Mission of Pig hotel:
The main mission of this hotel of the is to satisfy the tourist be rendering leisure
experiences and unsurpassed vacations.
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Vision of Pig hotel:
The main vision of this hotel is to become of the world best premium providers of
vacation and leisure experiences to the guest in UK.
Financial report:
The financial report of Pig hotel specifies that on daily basis this hotel specifically serves
near about 166 customers and the turnover of Pig brand term to be increasing at rapid growth
rate to near approx 20% (Demand for the Pig remains high as turnover increases 20%. 2018).
PEST Analysis:
Illustration 1: PEST Analysis
Source: PEST Analysis, 2018
Political factor:
As Pig hotel mainly carry outs its business in UK only, so the management of this hotel is
planning to some more its parent restaurants in other nation as well. While its operating business
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at vast level, it get influenced by several political factors like interference of government in
hospitality industry, intellectual property rights etc. (Boella and Goss-Turner, 2013). Therefore,
before launching new restaurant in any other nation, manager must determine the impact of such
factors on its policies which may take place due to political instability like crises, terrorism, wars
etc. Therefore when such condition takes place then it develop threats in the mindset of
customers and tourist because of which they decide not to travel in such areas where such
political instability take place and thus it directly impact upon decision making procedure of the
management of hotel industry.
Importance:
It is termed to be important for the manager of Pig hotel to identify the changes that are
taking place in political factors so that management can prepare appropriate policies and plans
for launching new restaurant in other nations. As the level of tourism sector in UK is increasing
rapidly at faster pace and because of which Pig hotel is planning to adopt security measures for
guest by taking into consideration that there may arise political instability due to war, crises etc.
(Chang, 2016). Thus, it will help the management of Pig hotel to build long lasting relationship
with tourist and as well as it will also lead in increasing the profitability ratio of an organisation
in marketplace.
Economical factor:
This factors mainly includes increase or decrease in inflation and deflation rate, change in
foreign exchange currencies, economic cycle etc. (Davidsson, 2016 Therefore changes in such
economical crises directly impact upon different business activities of an organisation.
Additionally, it will also adversely affect the purchasing power of customers when there take
place deflation in a nation. Moreover changes in cost factors like inflation, foreign exchange rate
etc. greatly impact upon tour packages too and because of which decision making of
management of Pig hotel get highly influenced and they have to make changes in price settings
and other procedure as well.
Importance:
It is termed to be very much essential and important for the management of Pig hotel to
analyse the economical changes that are taking place in the nation in which they are planning to
set up there new business (Denk, Kaufmann and Roesch, 2012). So that accordingly manager can
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make policies and plans to overcome them. Additionally if the management of Pig hotel will take
such changes into consideration like the changes taking place in foreign exchange currency,
inflation rate etc. while making pricing strategies then it will help them to attract more number of
tourist, which will result in increase in the brand image and profitability ratio of an organisation.
Social factor:
This factors refers to the changes taking place in preferences of society, culture and
traditions etc. In hospitality sector, there are several social factors which greatly impact upon
business activities of an organisation like poor sanitation facility, poor infrastructure facility etc.
(Eskerod and Huemann, 2013). Thus, it directly influence the decision making power of
management of hotel as they have to offer services to guest taking there preferences into
consideration so as to remain sustain in marketplace for long period of time.
Importance:
It is very much important and essential for the management of Pig hotel to analyse and
identify the changes taking place in social factors like change in demands and preferences of
customers so that accordingly they can make plans and can render services which will result in
increasing the satisfaction level of tourist which will indirectly result in increase in the brand
image of hotel in the mindset of guest.
Technological factor:
This factors refers to the advancement in technology which is taking place in modern era.
In context to hotel sector people specifically prefers Wi-Fi facility so it is very much essential for
the Pig hotel to render such facility in order top attract and retain tourist for long period of time
(Gustafson, 2012).
Importance:
It is very much important for the management of Pig hotel to analyse and identify the
changes taking place in advancement of technology so as to enhance its sales volume and to
promote it business at faster pace in marketplace. Additionally they should also render services
like good accommodation facility, 3-D gaming zone facility, Wi-Fi services etc. so as to create
positive image in mind of tourist as well as it will help in increasing the customer satisfaction
level also.
Porter's five force analysis:
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This model explains about five different aspect which must be analysed and considered
by the management of Pig hotel in order to set up business for long period of time in market
place. Thus, five forces of Porter's model are mentioned below (Hammer, 2015):
Source: Porter's five forces of model, 2018
Threat of new entrant:
This is one of the aspect which must be considered by the management of Pig hotel as it
may lead an organisation to come up with some innovative services but along with this it also
greatly impact upon profitability of an organisation. Any new entrant of business in marketplace
will force the existing one to render services at low price and to give more of value proposition
to tourist. So in order to overcome such challenges management of Pig hotel must render heavy
discount facility to its guest so that further advertise about it to other customer as well , which
will result in attracting more of tourist attention towards there services.
Bargaining power of suppliers:
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Illustration 2: Porter's five forces of model

In context to hospitality sector almost every organisation get affected due to negotiating
power of suppliers. As supplier are the one who render raw material and other useful resources to
the company so that they can carry out there different business activities smoothly. So in order to
overcome with such issues management of Pig hotel has to maintain good relation and efficient
supply chain with different number of suppliers so that they can render them resources on useful
and affordable rates.
Bargaining power of buyers:
This aspect refers to the customer bargaining power who are term to be the important
asset of an organisation as without them company cannot exist in market for long period of time.
As every customer wants to take services from hotels on medium and affordable prices. If the
company will render similar services as compared to other hotel then there may take place more
of bargaining power of customers , because of which company might have to suffer from loss. So
in order to overcome from such issue management of Pig hotel must render unique and attractive
services to its customers so as to retain and attract more number of guest to take their services.
Threat of substitute:
It is the another aspect which must be analysed by the management of Pig hotel to its
customers. For example if any other hotel who is term to be the substitute of Pig hotel render
value proposition services to its customers at the price which are affordable by customers, so in
this case customer of Pig hotel will shift to take services of its substitute hotel. So in this case
management of Pig hotel must adopt the strategies of rendering service oriented rather than
product oriented.
Industry rivalry:
There exist many competitors of Pig hotel in marketplace such as Marriott, Apex city of
bath hotel etc. So it is very much essential for the management of Pig hotel to take into
consideration competitors strategies and policies so that accordingly they can set up there own
policies to attract more number of customers in such a competitive market.
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TASK 2
1)Analysis of Corporate social responsibility to an organization and how it influences policies
and decision making within your chosen organization or industry-sector.
Corporate social responsibility is termed to be the best approach with the help of which
an organisation can achieve sustainability growth in marketplace by rendering major part of
contribution in the development of environment. Therefore in context to Pig hotel, its
management can adopt CSR strategy so as to enhance its sustainability and goodwill in
marketplace . In order to achieve this aim, management need to carry out deep study analysis on
different CSR activities and their influences on economy (Jeston, 2014). Thus proper analysis of
ethics and CSR activities will help in building brand image of company as well as will help in
influencing more tourist towards their services.
As per analysis it is being identified that Pig hotel deals in hospitality sector who render
better quality services to its guest because of which this hotel owns large numbers of customers,
clients and supplier. Thus, it is because CSR activities greatly influence on decision making and
policies of Pig Hotel which is explained below:
Influence of CSR on decision making and policies of Pig Hotel
Management of Pig hotel adopts several techniques and tools like different CSR
activities which help the company in influencing the customers to get there services by building
a brand image in the mindset of customer (Myers, 2013). As customer taste and preferences
keeps on changing which greatly influence decision making on policies of management of hotel.
For example: If the management of Pig hotel take a decision to adopt one of the CSR activity
that is to render charity of educating poor people. So this decision greatly influence the policies
and decision making of the management of Pig hotel, as they have to make their plans
accordingly so as to influence target customers and to create positive brand image of hotel in
marketplace (O'Gorman and MacIntosh, 2014). Additionally management of pig hotel can take
effective decision like they can share their amount of profit on every booking of hotel room with
charitable trust, which is also one of the CSR activity practised by pig hotel management. Thus,
it will help the hotel to influence customers so that they prefer to take the same hotel services in
future.
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2)Critical evaluation of the effectiveness of the organization’s response.
Pig hotel is termed to be one of the largest hospitality and tourism sector which is
specialised in rendering effective and better accommodation facility to both the international and
domestic guests. This is achieved by rendering diversified range of services to its customers in
the form of easy internet access, Wi-Fi facility, light music system so that customers mindset get
refreshed. Thus, it has helped Pig hotel to earn more of profit and help in enhancing business
more appropriately. Additionally, in order to enhance its brand image in marketplace
management of Pig hotel has adopted several CSR activities which are mentioned below (Vom
Brocke and et.al., 2014):
Exceed customer satisfaction:
For every organisation specifically for hotel industry customers are term to be an
essential asset, as the profitability of business depends upon customers itself. If the customer
satisfaction level is high, then it will result in increase in profitability ratio of an organisation,
similarly if customer satisfaction level is low then it will term to be lower the profitability ratio
of an organisation. So in order to enhance and exceed customer satisfaction level management of
Pig hotel plan to adopts several other CSR activities like rendering of discount to regular
customers, offering free tor packages etc. (Wilton, 2016). Thus, it would help in enhancing the
customer level of satisfaction which will result in increase in sales volume so as to render the
part of there profitability income for society development.
Community development and charity:
Pig hotel has established several charitable trust so as to build long term and brand image
of company in the eyes of customers. This was possible to achieve just because this hotel has
established strong positive relationship with society of UK and with other nations as well.
Therefore in order to promote its business it has taken into consideration several CSR activities
like the organisation has started creating awareness among the society about the vulnerable life
of individuals. Taking into consideration the concept of photojournalism, business shows
vulnerable condition of poor needy people, which has helped poor people to get the support from
N Go's in order to improve the poor well-being of people suffering from poverty. Thus, it will
help the Pig hotel in raising huge amount of funds so as to make investment for improving the
life of vulnerable people (Zimmerman and Blythe, 2013). Therefore use of such concepts and
ideas has helped the hotel in responding towards the development of society.
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SWOT Analysis of Pig hotel
Strength
Te major strength of Pig hotel it render better
quality services, because of which it lead in
increase in customer satisfaction.
Weakness
Whereas the weakness for Pig hotel is that it
fails to gain customer loyalty and in some case
fails to understand the preferences of
employees which lead to increase in employee
turnover.
Opportunity
The opportunity which the Pig hotel can avail
is by investing more in CSR activities like by
investing in social media so as to interact with
large and target customers
Threats
The threat which can affect the business
activity of Pig hotel is of political instability so
in order to overcome such threat management
of Pig hotel must carry out research analysis
and accordingly should make plans and
policies.
3)Demonstration of some areas for improvement in the response of the organization
It has been examined that Pig hotels is one of the successful organisations as they are
running their business activities in a very effective manner. The organisation has initiated many
campaigns for the betterment of the people in UK by developing societies and improving the
living standard of the local residents. It all results in creating a good brand image and a large
customer base for the organisation in the market. Along with this the managerial functions of the
organisation is constructed properly to run the business activities successfully in the market and
all the policies and regulations are considered properly which can impact the business
proceedings. This will lead the company to formulate effective business strategies according to
the market conditions. This firm also give attention to bring forward the awareness among the
people about the persons who live misfortune life. It has helped in getting activity and
contribution of them towards rising the condition of such impoverished people. With the help of
Porter's five force model, it can be concluded that there are various factors which can result as
threats to the organisation in near future. The factors involve increase in competition with the
competitors of the same industry. Therefore to eradicate these problems pig hotels is required to
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