Unit 1 External Factor of Business Environment Assignment

Program	Diploma in Business
Unit Number and Title	Unit 1 External Factor of Business Environment
QFC Level	Level 5

 

Introduction

An organisation's business environment is made up of internal and external factors that contribute significantly to how an organisation develops and grows, positively or negatively. Overall business development and long-term success are greatly dependent on these factors. This study seeks to describe the purpose and functions of various organisations in the market, determining their structure, size, and scope regarding their business objectives. It further examines the intricate relationships between organisational functions and examines how the broader environment may influence the operation of a business in both favourable and unfavourable environments. A key aspect of this report is identifying an organisation's strengths and weaknesses by conducting a thorough internal and external analysis, including PESTEL and SWOT analysis so that one has information on how external factors influence organisational behaviour.

For students looking for professional guidance, Locus Assignments offers dedicated assignment help services, designed to provide support with assignments without any external resources. With a focus on quality and timely delivery, Locus Assignments stands out as a trusted name among assignment helpers, helping students to excel academically.

Part 1: Organisational Objectives and Interrelationships

All organisations establish clear goals in an effort to become competitive in the market. These goals are directly connected to the operations of businesses and assist the management in fulfilling the needs of customers. The primary goal of any company is to first fulfil the needs of customers and employees in order to make a profit. Organisations must fulfil the needs of employees while constantly providing quality products and services to customers. For instance, Hotel Marriott is concerned with retaining customers by ensuring that they offer quality services. In the same way, Hotel Marriott is concerned with fulfilling the needs of its stakeholders by paying timely dividends, with the understanding that effective stakeholder management is necessary in an effort to maintain a competitive advantage (Hitt, Ireland, & Hoskisson, 2023). The management of the business plays a critical role for all the creditors, including raw material suppliers and other suppliers. Most organisations rely on stakeholders for financing, something that makes it necessary to fulfil their needs. Stakeholders are normally divided into two broad categories: internal and external (Hitt, Ireland, & Hoskisson, 2023). The objectives of an organisation can either be short-term or long-term, and they must be fulfilled within stipulated timeframes. Hotel Marriott's performance in fulfilling these objectives within the deadlines is critical in an effort to effectively fulfil customer needs.

Organisations are likely to network for the purposes of cooperation and the delivery of quality services to customers. A good example is the collaboration between Hotel Marriott and the TUI Group to deliver quality services to their customers. Such a merger of services demonstrates the capability of organisations to cooperate, resulting in improved service delivery. The organisational structures are closely linked because they tend to share the same customers, which necessitates the synchronisation of services such as hotel facilities, food, and transportation. Such strategic cooperation can facilitate new ideas and the advancement of business models (Geels & Schot, 2023; Hahn Scheer, 2022). The primary advantage of organisation relationships is the capability to deliver merged, quality services to customers, resulting in improved employee management for effective delivery of services. Improved relationships between organisations are necessary for better services and customer satisfaction. However, one of the primary limitations of relationships between organisations could be cultural differences, which could result in employees finding it difficult to adapt to another organisation. Another limitation could be reliance on other organisations, which could result in slow services and a negative impact on the profits of the two companies (Geels & Schot, 2023). Overall, it is apparent that the two organisations' management is interested in maximising profit and customer satisfaction. The merger of the two organisations demonstrates a clear motive to increase market share and enhance employee efficiency, resulting in improved profitability. Delivery of quality services is still of high priority for maintaining clients. Hotel Marriott and the TUI Group are thus interested in increasing market share through merged services and cooperation with clients to enhance their competitive edge in marketing management.

Part 2: Macro Environment Impact and Organisational Analysis

Section 1: Positive and Negative Impact of the Macro Environment on Business Operations

Macro environment factors are outside forces that directly influence an organisation from beyond its immediate reach. They have widespread impacts, influencing the organisation in a grand way and possibly enabling or disabling market share growth. Major organisational changes can usually be traced to alterations in macro factors. Examination of these factors helps management gain knowledge about competitors and evaluate their strategies for survival in the market. Macro environment factors are important for Hotel Marriott to gain knowledge about the pricing strategies of different competitors so that they can price their services competitively.

The advantage of analysing the macro environment is that it indicates where an organisation stands in the market and how the customers view it. Management can identify who the competitors are, which will help them run operations and plan strategies (Dwyer & Gartner, 2021). The analysis also helps in the identification of potential stakeholders to raise capital. It helps management to keep track of how well the organisation is doing by comparing it to the competitors (Hall & Lew, 2021). On the other hand, a bad analysis of the macro environment will be detrimental to the organisation. If the analysis is wrong, it will greatly affect the profit margin of the organisation. The other negative effect is that the management will not be able to recognise competitors in the market, and this would lead the organisation to lose a lot of market share.

When evaluating complex aspects like macro-environment analysis, students often require expert guidance to structure their assignments effectively. Locus Assignments offers assignment help services that simplify the understanding of macro-environment impacts, assisting students in creating well-structured assignments.

Section 2: Looking Inside and Outside to Find Strengths and Weaknesses

Internal and external analysis are useful tools that help an organisation, like Hotel Marriott, find its own weaknesses and strengths. Internal analysis helps the management see the weaknesses of the organisation and put in place the right policies to correct them. This internal perspective helps to improve internal operations, which helps the organisation realise organisational goals. It is easy for the management to see internal problems using this analysis. It is a good tool for Hotel Marriott to determine and correct employee issues, showing the main causes of low productivity and how to enhance it. This analysis helps the HR department realise the inherent strengths of the organisation and use them to compete in the market.

External analysis assists the business in identifying external weaknesses by using various analytical tools such as PESTEL and SWOT analysis (Payne & Frow, 2022). External analysis is very important in identifying the Unique Selling Proposition (USP) of the organisation, which describes clearly how the business differs from other businesses in the marketplace (Keller, 2024). For instance, the distinctive business approach of Hotel Marriott distinguishes it from others, enabling its management to thrive in the marketplace. Overall, considering both internal and external factors is the best approach to identifying an organisation's overall performance and developing a benchmark for other companies that offer quality services.

Section 3: Strengths and Weaknesses Regarding External Macro Factors

Strengths and weaknesses of an organisation have a direct connection with big outside factors because, in some cases, an organisation is greatly affected by factors that it cannot control. Organisations may fail to recognise different factors affecting management's decisions in both direct and indirect ways. Therefore, these important macro factors need to be recognised carefully by external macro factor analysis. Strengths and weaknesses are two sides of the same coin, which can empower an organisation or make it weak compared to others. A careful observation of these two factors can lead to many successes for the business. Both factors are connected and can make the organisation powerful or enhance the threat from outside macro factors affecting it.

Macro factors are external to the organisation and may affect the company for good or ill. Macro factors are typically analysed through PESTEL analysis. Political factors, such as government regulations or pressures, may cause weaknesses for the company by imposing restrictions. Social factors may also cause harm to a business, for instance, by increasing expectations for its Corporate Social Responsibility (CSR). Although social responsibility is essential for any business, performing these responsibilities may sometimes be interpreted as a weakness in terms of money (Rothaermel, 2023). Through PESTEL analysis, Hotel Marriott is able to thoroughly consider these external factors and develop good alternatives to address potential issues. External factors encompass numerous variables, such as the policies of competitors, shifts in the market, new government regulations, and complex legal laws and regulations.

To better comprehend external factors' impact on organisational behaviour, rely on expert assistance. Locus Assignments offers in-depth help with assignments to ensure students understand these complex dynamics. Whether it’s understanding PESTEL or other business analysis tools, Locus Assignments provides dedicated support to help students succeed.

Section 4: SWOT and PESTEL Analysis to Create a Holistic Understanding of the Macro Environment's Impact

SWOT analysis is an appropriate technique for recognising a company's weaknesses, strengths, threats, and opportunities. An inability to recognise these factors in the right way can be a tremendous issue for a business. SWOT analysis is an effective tool that allows a company to recognise and know internal as well as external factors according to its needs. It is the best way to find market opportunities and analyse the issues a business encounters in fulfilling its goals. PESTEL analysis helps an organisation to identify political, economic, social, technological, environmental, and legal factors influencing the business internally and externally. These big factors may affect the business in some way or another, like government policies, social problems, new technology, and culture. PESTEL analysis gives a clear image of the big factors that affect the business from the outside, and it helps to create plans to reduce negative effects or leverage opportunities (David & David, 2023; Rothaermel, 2023). It is an extremely useful tool for Hotel Marriott to recognise market competition and change policies to be competitive. Using this tool properly, management can compete confidently in the market.

B. Reflective Statement

As shown in the report, I observe that Hotel Marriott is working towards the accomplishment of its goals by focusing on what the customers need. The hotel meets the needs of all the stakeholders, makes them more committed and encourages a long-term relationship with the hotel. I have seen that the hotel is able to accomplish its short-term and long-term goals on a daily basis by providing excellent services to the clients. In an effort to keep on providing quality services to the existing clients, the TUI Group and Hotel Marriott have collaborated to ensure that customers from the two organisations always receive the best services. The report has shown how SWOT and PESTEL are necessary tools that give comprehensive details regarding an organisation's services and inspire ongoing improvement. Internal and external analysis allows the management to have a clear view of the organisation's strengths and weaknesses, allowing them to offer quality services to customers. I have learned how to ensure a good market position through careful study of several market trends. The strategy gives the management a useful way of checking overall performance, identifying any problems with services, and improving them. The two tools used by the organisation are necessary in determining customer problems, and they also allow new people in the organisation to perform well and come up with good solutions to organisational problems.

Struggling with assignments? Locus Assignments is your go-to source for professional assignment help services, providing expert guidance to help you complete assignments on time with exceptional quality. Don't let complex topics hinder your academic progress—reach out to Locus Assignments today and experience the ease of professional assistance!

Conclusion

The report clearly outlines the market trends and best practices to determine the strengths and weaknesses of an organisation. The study correctly enumerates several goals for the organisation, shows attempts to meet customer needs, and analyses the performance of the organisation as a whole with the use of PESTEL and SWOT analysis.

For students needing assistance with assignments like these, we provide top-notch academic support. Their team of expert assignment helpers ensures accurate and well-structured reports. Whether it's PESTEL analysis, SWOT, or any business strategy-related task, their assignment help services are tailored to meet your needs. Don't let deadlines stress you—explore assignment help online today. Contact Locus Assignments now for expert guidance and timely solutions!

References

Books and Journals

David, F.R., David, F.R. and David, M.E., 2023. Strategic management: Concepts and cases. Pearson.

Dwyer, L. and Gartner, W.C., 2021. Tourism economics and policy. Channel View Publications.

Geels, F.W. and Schot, J., 2023. System innovation and the transition to sustainability: Theory, evidence and challenges. Edward Elgar Publishing.

Hahn, T. and Scheer, J.W., 2022. Business models for sustainability: A guide to creating, analyzing, and improving sustainable enterprises. Routledge.

Hall, C.M. and Lew, A.A. (Eds.), 2021. Tourism geographies: An introduction. Routledge.

Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2023. Strategic management: Concepts and cases: Competitiveness and globalization. Cengage Learning.

Keller, K.L., 2024. Strategic brand management. Pearson Education.

Lashley, C. and Morrison, A.J., 2023. The Routledge handbook of hospitality management. Routledge.

Payne, A. and Frow, P., 2022. Strategic customer management: Integrating relationship marketing and customer relationship management. Cambridge University Press.

Rothaermel, F.T., 2023. Strategic management: Concepts. McGraw-Hill Education.

Author Bio:

James Whitmore is a UK-based academic writer and business strategy expert with a focus on organisational development and environmental analysis. With extensive experience in supporting higher education students, James specialises in creating insightful content on topics like SWOT, PESTEL, and strategic partnerships. He collaborates with platforms like Locus Assignments to provide high-quality academic assistance, helping learners understand complex business concepts and succeed in their coursework.