Assess the Political، Economic، Social، Technological، Environmental and Legislative factors (PESTEL) that affect the development of organizations

Assess the Political، Economic، Social، Technological، Environmental and Legislative factors (PESTEL) that affect the development of organizations

Activity one

Assess the Political، Economic، Social، Technological، Environmental and Legislative factors (PESTEL) that affect the development of organizations operating within the hospitality industry.

Then evaluate the impacts of external factors on the development of organizations operating within the hospitality industry، using specific examples، By:

· Referring to the PESTEL external factors and assessing how each one of them can affect the development of the businesses within the 5 sectors of hospitality in general.

Assess the Political، Economic، Social، Technological، Environmental and Legislative factors (PESTEL) that affect the development of organizations

1. Political factors

Issues like travel bans can affect the hospitality industry as they are issued by the government. Additionally, hotel owmners do not enjoy the tax reforms, presidential elections can cause chaos affecting stability of the businesses,

2. economic growth affects the growth of hospitality industry: a booming industry allows people to spend money in the hospitality industry. Improved economy increases people’s spending which helps the hospitality industry to bloom.

3. social factors influence sustainability of any business. For instance, level of education, level of income, and life expectancy could influence people’s choices on the hotels they would like to spend in, the tourism sectors they want to visit depend their social life like income and peers.

4. Technology has helped in reducing the costs of the hospitality industry. Helps in enhancing operational efficiency, improve the services and enhnace the customer experience. Hospitality industry has replaced human labor with technology machines like laptops making operations faster and efficient. Reducing customer service issues.

5. Environmental factors affect the hospitality industry. The industry has changed its ways of operation by using clean energy to avoid emission of carbon to the atsmosphere. Additionally, availability of natural resources like water, foods grown in plantations determine the existence of the hotel industry.

6. …the regulatory environment in the industry sector is complex since both laboth and public security are essential concerns. There are many legal pressures that affect the hospitality industry.

Activity Two

Undertake a SWOT analysis for a hospitality business and review how this can inform the decision making process، by:

· Choose a five stars Hotel for your analysis.

Hilton hotel

· Review the Strengths and Weaknesses of any hotel as its internal factors، in addition to reviewing the Threats and Opportunities as external factors.

S· The hotel is critically located to attract many customers.· It has a high review count compared to hotels in the same area· Strong and resilient workforce· The hotel has a diverse portfolio· Delux bedroomsW· Food quality is still low compared to competitors according to reviews· Excess food waste from the restaurant· Limited land area for expansion· Low occupancy during winter· High cost of the hotel· Difficult to find high quality employees
· O· Conferences can be held from the hotel attracting more sales and customers.· Could cause a multiplier effect on other sectors of the economy· Could have celebrity endorsements to attract more customers·T· Entry of well-known brands having hotels in the locality· Majorly dependent on tourism which could be affected in case of pandemics· Competition from other five-star hotels and upcoming hotels offering efficient services· Celebrities associated with other five-star hotels· Regulations regarding accessibility

· Based on the SWOT findings، come up with TOWS matrix recommendations for the Hotel Management Team.

S+O· The hotel should use social media to promote new services they provide· Should have many branches internationally to have wide coverage· It will create room for more conferencesS+T· Increase many branches to many localities to increase· Associate the hotel with celebrities to enhance effective advertising· Involve the government to reduce the regulations·
· W+O· Offer cheap offers to reduce the costs· Advertise the hotels to the locals to ensure winter they have occupants· Hire qualified staff to enhance the quality of the foods·W+T· Should constantly upgrade their services· Create a wider target market· Enhance good reviews through increased advertisements· Increase quality services