Delivery in day(s): 5
Unit 1 External Factor of Business Environment Assignment
Diploma in Business
Unit Number and Title
Unit 1 External Factor of Business Environment
The Business environment is the sum of internal and external environment it affects the organization from various way either in positive and negative way. The overall growth of business depends on both this factors. The current study depicts purpose of different kind of organization in the market and functions of different kind of organizations in the market. The report explains the structure, size and scope of the organization on the basis of business objectives and impact by the web of interrelationships between the organizational functions. It evaluates the positive and negative impact of macro environment on the business operations and identifies the strength and weakness of the organization by conducting internal and external analysis. The Business environment explains the strength and weaknesses that are attached to the external factors and conduct the PESTEL and SWOT analysis the factors that affect the organization behaviour.
Different organization has different objectives to maintain the position in the market. Objective of the organization is depends on the operation of the business it help the management to meet the demand of consumers. The main objective of all the organization is to fulfill the demand of customers and employees in the market and then earn the profit. It is the dusty of organization to meet the desire of the employees by providing quality services and products to its customers. Hotel Marriott is focused to retain the customers in the organization in order to retain them management provides quality services to the customers. Hotel Marriott is focused to meet the demand of stake holders by providing timely dividend to them. Management has the liability towards all the creditors like suppliers, customers, raw material provider etc. Many organizations depend on the stakeholders for financial assistance so it is liability of organization to meet the demand of the stakeholders. Generally stake holders are classified into two categories internal and external stake holders (Oyewobi.et.al.2013). The objective of organization is short term and long term that has to be accomplishing on the defined time. Hotel Marriott has to accomplish the objective on the defined time by which management can easily meet the demand of clients.
Different organizations are connected with each other thus they are serve quality services to the customers. For example Hotel Marriott and TUI group quality services to the clients. The merger for services is the example of interrelationship among the organization that results to the serving to quality services. The organizational structure of both the organization is related with the each other because clients of both the organization are same and management has to give services to them like hotel facility, food facility, transportation facility etc. This kind of services connects both the organization in context of services. The main advantage of interrelationship between the organizations is able to provide quality services to the clients and management can easily manage the employees for better services. For better services better relationship among the organization is necessary and thus they are able to satisfy the demand of customers. The main disadvantage of interrelationship among the business is cultural differences thus employees are not able to adjust in the working environment of another organization. Another disadvantage of interrelationship dependency on another organization due to which delay in services and it may affects the profit margin of both the organizations (Loorbach and Wijsman, 2013). Overall it can be said that management of both the organization is focused to earn more profits and customer satisfaction. The merger among the organization is proof that both the business wants to increase the market share and also want to raise the efficiency of employees to increase the profits. Quality services are other criteria to retain the clients in organization. In overall essay it can be said that Hotel Marriott and TUI group are paying attention towards increment in market share by merging the services and clients so they can easily compete in the marketing management.
Section 1: Positive and negative impact of macro environment on the business operations
Macro environment are that factors that affects the organization from outside boundaries of the organization. It can be said that this kind of factors affects the organization at large level and also increase the market share of the organization. The major changes in the organization can be caused with the help of macro factors. It is the way under which management can identify the competitors and easily asses their policy to sustain in the market. Macro environment factors assist Hotel Marriott to identify the pricing policy of different organization thus they are able to set price of the services according to the price of competitors. The positive outcome of macro environment analysis is that it clearly defines the market position of organization and clearly ates the customer perception towards the organization. Management can identify the competitors in the market and get the better control over the operations. To raise the capital management can easily identify the stake holders for the organization. It helps the management to evaluate the overall performance of the organization by comparing with the performance of competitors (Holden, 2016). Negative impact of macro environment is that without proper analysis of macro environmental factors management may be able to take the proper judgment. Wrong analysis may affect the whole profit ration of organization. Another impact is that management is not able to identify the competitors in the market and may lose the market share of organization.
Section 2: Internal and external analysis to identify the strength and weaknesses
Internal and external analysis helps the organization to identify the strength and weakness of the Hotel Marriott. Internal analysis assists the management to identify the weakness of the organization as well as it help the organization to eradicate the weakness by implementing the suitable policy. The internal analysis facilitates organization to develop the internal operations of the organization thus they are able to achieve the organizational goals. The management can identify the internal issue with the help of internal analysis. This is effective tool that help Hotel Marriott to identify the problems of the employees and try to solve that problems. Internal analysis reveal the reason that what are the causes of low productivity in the organization and what are the way to improve the productivity. The analysis helps the HR department to identify the strength of the organization thus they are able to compete in the market. External analysis facilitates organization to identify the external weakness of organization by doing different kind of analysis like PESTEL, SWOT etc (Nijssen and Frambach, 2013). The analysis assists the organization to indentify the USP of the organization that differ the business from other competitors in the market. For instance the business strategy of Hotel Marriott is different from the other competitors in the market that management would easily survive in the market. It can be said that internal and external analysis is the best way to evaluate the overall performance of the organization and create the bench mark for the other organization is serving quality services.
Section 3: Strength and weakness are linked to the external macro factors
Strength and weakness of the organization are linked with the external macro factors because in some cases organization may be affected by the outside factors. Organization is not able to identify various factors that affect the management decision making directly and indirectly. So this macro factors can be identified with the help of external macro factor analysis. Strength and weakness are the opposite factors that give power and weakness to the organization. Proper analysis of these two factors gives different kind achievement to the business. Both the factors are interrelated to each other and they may increase the risk of external macro factors in the organization. Macro factors may affect the organization from outside boundaries of the organization and affects the business in positive and negative way. Macro factors are analyzed with the help of PESTEL analysis like political factors may affects the organization in political ways like government pressure thus organization it increases the weakness of business. Social factors may affect the business in negative way like CSR responsibility of the organization thus business is liable to do social activities (Tong.et.al.2015). Social responsibility is the duty of every business and in financial terms it can be weakness for the organization. PESTEL analysis facilitates Hotel Marriott to evaluate the external factors and try to find the suitable alternative in order to overcome this kind of hurdles. External factors consists competitors policy, market changes, government policy, legal rules and regulations etc.
Section 4: SWOT and PESTEL analysis in order to develop depth understanding of the impact of macro environment
SWOT analysis is the best way to identify the strength, weakness, opportunities and threats if the organization is not able to identify this factors then it will become serious issue for the business. SWOT analysis is the best tool that facilitates organization to identify the internal and external factors in the organization and to evaluate them according to the requirement of organization. SWOT analysis is the best way to identify the opportunities in the market and try to evaluate the issues that has been faced by the business due to achieve the desired goals.
PESTEL analysis facilitates the organization to identify the political, economic, social, technological, environmental and legal factors that affects the business internally and externally. This kind of factors affects the business in different kind of issues like government interference, social barriers, technology up gradation, cultural issues etc. PESTEL analysis gives brief about the macro level factors that affects the business from outside boundaries of the organization and try to improve them by conducting the PESTEL analysis (Brotherton, 2013). It is best tool for the Hotel Marriott to identify the rivalries in the market and try to set the policy according to their set policy. With the help of this tool management can easily compete in the market.
B Reflective statement
As per the report I identifies that Hotel Marriott is focused to achieve the organizational goals by fulfilling the demand of the customers. Organization is meeting the objective of all the stakeholders in the organization by which they feel motivated and retain with the organization for longer tenure. I have observed that organization is meeting the short term and long term objectives both by serving quality services to the clients. For quality services to the present clients Hotel Marriott and YTUI group merge the services and they are serving quality services to the clients thus all the customers of both the organization are getting quality services. As per the report I have observed that SWOT and PESTEL analysis is best tool that give brief about the services of organization and also motivate the organization in order to serve better. The internal and external analysis helps the management to identify the strength and weakness of organization thus they are able to propose quality services to the clients. I have learned that how to maintain the position in the market by analyzing various trends in the market. It is the best way under which management can evaluate the overall performance try to find out the drawbacks of the services thus they try improving the services. Both the tools used by the organization in effective way thus they can identify the problems of the customers as well. The tools used by the organization are helping the new entrants in the organization to serve better and try find out the best alternative for the problems of organization.
The current report explains the current trend of market and various ways to identify the strength and weakness of organization. The study identifies different objectives of organization and tries to fulfill the demand of customers in the organization and evaluate the overall performance of organization with the help of PESTEL and SWOT analysis. It explains different tools to identify the factors that affect the business internally and externally and report explains the strategies that help the business to sustain in the market.
Books and Journals
Brotherton, B., 2013. Hospitality and hospitality. In Search of Hospitality
Holden, A., 2016. Envirimg and towism. oude4gc.
Lewis, BR.. 2013. Cst ercarcjn.sesyAce pEganistiQns. Marketing Intdhigence.4.Planning.
Loch. D. and i, K., 2013. Business transition management: exploring a new role for business in sustainability transitions. Journal of Cleaner Production, 4.pp.2Q-28
Njs, E.J. and iftarnbach , R.T., 2013. Creatin g..cu sicrn er yaiu e thr o4gb sira gç.marketing planning: Amanagemeut approach. Springer Scicnce& Business Media
Oyç, L.O., Wi4apo, A.O., çatten, KS. and RimiL, J.O.B., 2013. Impact fcg4saon smicture and strategies on constnictionasperfonnance.
TongJ Li, H and .Wei Q,,2O1 Development Enironment and Strategic Choice for Rural
Endowment Insurance Fee-to-Tax: An Analysis Based on PEST-SWOT Model.
In Proceedings f the Ninth International Conference on Management Scjenc and
Engineering Management (pp. 743-75S). Springer Betiin Heidelberg.