This assessment will cover all functions which are like:
- Explain macro issues and functions in business environment.
- Elaborate the potential impact in the business sector and its significance.
- Give 2 challenges faced by the company.
Business environment is the most challenging and essential part for the company in order to meet out the market needs and wants. Key issues of business environment affect business performance or their strategies to conduct the business. Present study will be based on key issues involved in the travel and tourism or hotel sub sector which will be explaining the key issues, or signifiant factor that affect business functions. Further study also explaining the potential impacts at micro level and key challenges involves in overall research.
A. Identifying the Key Macro Issues in the Business Environment and Significant for the Travel&Leisure Sector
Economic factors have been given the greatest influence to the development growth of tourism sector. For example raising wages helps people to invest more on leisures and also helps in recreational activities (Adeleye and et.al., 2015). On the apart, due to high inflation rate, real income of the population will be reduced.
Travel and tourism sector are highly influenced by rate of interest, government expenditure, foreign investment and unemployment rate. Travel & Leisure sector growing and growing in rapid manner. Destination and different stakeholder are ensuring that benefits growth has been more increased and negative externalities are should be minimized.
Pestle Academic Model of Analysis
Political factor is the significant element of business environment which includes political stability, strategic development, promotional activities in business, government regulatory changes etc (Charter, 2017). Political environment of UK is comparatively stable which has gives positive impact on the development of Travel & Leisure sector. Apart from that, one major issue that is significant issue for Travel & Leisure sector. Adversely, terrorism has always been given negative impact to influence growth. For example : 52 people were died in 7/7 London tube and bus bombings. These types of harmful incidents may reduce the ratio of travellers.
Economic factors has been influenced the growth of tourism sector. Economic element strongly based on the profit earning or on the revenue growth of the company. It has been given long lasting channel of growth and makes market more uncertain due to high inflation or constant changes in the interest rates. The Greatest risk challenge involves in economic factor is exchange rate of UK is not stable due to which Travel & Leisure sector faced up and down in profit revenue (Crane and Matten, 2016).
Besides, another economic issue is seasonality for Travel & Leisure sector, after season has been passed company does not have so many bookings or earning scope. For example UK Inbound tour operators in 2008 were 7.20 million and by the end of quarter of the year the amount has been decreased which is 6.93.
socio cultural factors which includes demographic changes in the country and region, family and relationships. In this macro factor many challenges that could faced by the Travel & Leisure sector such as changes in customer demand, lifestyle, aspects of health and education. As a result of increasing environmental concern which is directly related to Travel & Leisure sector such as carbon footprints (teyn, 2017). Some customers are very much concerned about his health or always looking for a good healthy environment.
Another social issue involved in Travel & Leisure sector health challenges, people will not interest to visit places which spread diseases such as SARS. It is the negative symbol which Travel & Leisure sector faced. Social factor which is more important and impactful decision making approach in order to meet out the goals. Another some social event is the another positive factor for tourism for example FIFA World cup.
technological impacts are always likely to be given positive impact to Travel & Leisure sector. It helps to save time and money for the company. On the other hand, technological factor also give some key issues such increase competition level, risk, cost and uncertainty in the future (Tutor and Soares, 2014).
legal and bureaucratic restrictions are one of the another big issues for the Travel & Leisure sector. Legal implication has always been imposing by the government which creates importunity for the business. These issues are needs to be considered by the company in order to meet out the company goals and better result oriented goals. Some issues faced by the company is regarding data security and data privacy that must be secured by the company hand.
Government has imposed many regulations and data protective act for the safety of customers which is very much essential for the company hand.
it is the another significant issues or challenges that must affected to Travel & Leisure sector in many terms (Zsambok and Klein, eds., 2014). Government has been implicate regulations for Travel & Leisure sector to protect the heritage places and their infrastructure security by the companies.
B. Explaining the Potential Impacts at Micro Level Due to Any 2 of the Identified Issues
From the analysing the above macro key issues factors which involves high risk in terms of managing the profit in Travel & Leisure sector. There are some wide potential key issues which affects the sub-businessess of Travel & Leisure sector such as hotels, airline companies, restaurants, transportation businesses etc. some potential impacts are discussed below:
Travel & Leisure is the growing market, the demand of the leisure sector is influenced by many external factors in order to various market forces, technological enhancement or social factors. This would give positive or negative influencing growth to the businesses. There are so many companies situated in UK who get influenced by external factors such as Park Holiday UK, Virgin Holidays Cruises, Castle Leisure etc (Enoch, 2016). these macro factors encourage companies to take new further expansion as per the providing more services to their potential clients. For example: High demand influenced hotels or tour operators in great extend in terms of quality incremental, enhance employee productivity, good revenue return etc.
Technological advancement create the new ways to target clients through which internal environment of the company has been encouraging.
Some Potential Issues Faced Travel & Leisure by Affecting External Factors
Post Brexit Challenge:
This economic factor affect the Travel & Leisure revenue profit growth. This affect the consumer mind setup due to which Travel & Leisure sector faced low demands and bookings (Seven big issues for travel and tourism in 2017, 2017). Due to this macro impact, internal area of the organization get highly affected in terms of low customer attention. Impact of Brexit also changes the employment and immigration laws.
Shifting in Traveller Prioritise
It is the another potential issues faced by the company internal environment. After Brexit hit to the UK economy. In 2017 customer priorities has been change as per the high prices.
Along with that another reason is that travellers has changed their packages and their directive around the corner in 2018. In order to get out of this situation, all businesses needs to be more attentive and leading in terms of taking care of customers or clients to make them satisfied and happy. Overall, it also helps to take new steps and new corrective action growth in order to keep the market sustain and more influencing towards the best market growth.
These all kinds of effective manner or new growth opportunity. People needs to take new plans and action to get the attraction level of customers (Enoch, 2016).
Some other issues also has been faced by the tourism industry such as Technological impact of external affairs creates issues related to customer data security issues. Technology is fuelling a more demanding traveller who increasingly expects to able to plan. Into more sufficient manner.
Due to sudden changes of political factors, companies also needs to amend those changes and laws to sustain the market growth (Enoch, 2016). All these potential impacts of macro factors are highly affected the internal environment of businesses.
C. Describing 2 Challenges Faced While Carrying Out the Tasks
In the whole research, the task that has been carried out includes key issues that has to be faced has been discussed. From this discussion, I have analysed that tourism industry has to face many challenges in terms of conducting business. Thus, the challenges that been faced has been discussed below-
The major challenge that was faced included lack of resources available. This caused lot of difficulties in terms of finding information that required funds (Appleby and Harrison, 2017). I also needed various advanced technology that will be helping me in order to undergo various researches and conclusions that must be leading me in gaining more appropriate knowledge about the actual factors that affect the business. But anyhow I managed it and tried to find out the issues that are affecting business. I researched on the issues with the help of taking surveys by the individual and owners that runs the business. From these surveys, I got various information from both aspects that is businessman and the employees. They all shared their views according to their point of view. As per the businessman the major factor that affected business were social factor. He said that changing taste and preferences affected business to a large extent. The company has to change their style of producing products so that they can meet the needs of the customers and earn high profit. Thus, I analysed from this that the company has to adopt flexible nature and even employees too. And to have this type of nature, they have to attempt the programs of training and development that will help the employees in order to maintain and enhance the nature of flexibility.
Now if we take into consideration about the views as per the employees, the major factor that affects the business was technological factors. As per their analysis I found that technology has affected the environment in large extent. Today's generation is fully based on social media. Thus, they desire the products that is considered trendy in market. The employees are then forced by the business owner to produce that products that customers require to satisfy their needs. This had made them put their whole efforts in producing the goods accordingly. Thus, there is major threat for the employees is that the commodity that is distributed in market should meet the needs of customers and give them complete satisfaction. This encouraged me in finding the deep information regarding the issues that has been faced by the business environment to conduct fair business.
In order to find advance information we have to go deeply in analysing the situations (Daneshpour, 2015). But the second challenge that was faced included lack of awareness. I was totally unaware about the concept of business. But as I made my mind to know it so I have to find ways also. Thus, I researched on internet about the actual environment of business. From there I found that there are many potential issues that business face on daily basis.
Also read:-Business Environment of British Airways
On the basis if above section it has been cleared out that, key issues in Travel & Leisure sector of business environment are uncertain that changes as according to changes in external factors. Also, it has been analysed that internal factors or the environment been always depends upon the external factors in order to meet the needs of customers. Study has been based on Travel & Leisure sector which concluded that, key issues or challenges faced by the company, or the main key issues that also effect the micro elements which relates to the internal engagement of the organisations. Study has taken some examples to explain those external issues. Overall, it has been concluded that, Travel & Leisure sector needs to identify the current changes in the environment culture in order to adopt all possible opportunities and minimizes the threats. Apart from that, study also taken challenges and issues that faced by the researcher to conduct the study. Overall, study helped Travel & Leisure sector to create new strategies and business planning in order to grab the customer attention. clear your more doubts for Assignment writing service from our experts online.