The paper offers a PESTLE analysis of MMuges hotel. MMuges hotel is a 4-star hotel, which located within Dublin, Ireland. The hotel has a vision of sustainability. The hotel has seventy rooms, two f&b outlets; besides, functions on solar panels. MMuges hotel is modern and trendy, making it suitable for targeted markets.
Political Factors
Currently, regional integration denotes a trend as well as an external factor, which offers an opportunity for MMuges hotel to expand globally. Additionally, the government is improving infrastructure that offers business opportunities for the hotel to access more suppliers as well as markets. Nonetheless, sourcing raw materials can be an issue to manage because it draws the attention of politicians. As a result, the hotel must comply with environmental as well as social norms. The hotel must adhere to sourcing strategies. The hotel must observe practices of trade that are fair (Ruth & Graham, 2010). Additionally, the hotel must comply with regulations or policies within the country concerning sourcing raw materials because political awareness or activism within the state makes it essential.
Economic Factors
The reducing unemployment rates as well as high economic development in the country offer opportunities for MMuges hotel to increase its revenues from many markets. Nonetheless, the increasing labor expenses represent an external factor, which threatens MMuges hotel since it raises the firm’s spending (Ruth & Graham, 2010).
Socio-Cultural Factors
MMuges hotel may provide cheaper services or commodities though it may compromise their quality. It forms a socio-cultural problem, which a start-up experiences. This can expand consumer base of MMuges hotel to customers from the middle as well as lower income tiers. Additionally, the ethical chic, as well as green customers, must be considered (Peter, 2004). These customers fret on environmental and social expenses of the hotel. This is a trend the hotel must be informed.
Technological Factors
MMuges hotel has the chance to advance its apps of mobile as well as align services to acquire revenues via mobile purchases or marketing. The hotel can enhance its supply chain dependent on novel technologies customers use. Nonetheless, the increasing new hotels represent a threat to MMuges hotel since that increases competition in the hotel industry within Ireland. MMuges hotel can also enable payments through mobile (Ruth & Graham, 2010). Such innovation can enhance mode of payment because of its convenience.
Environmental Factors
Most of the business practices within the hotel industry concern international advocacy and activists groups. Additionally, the customers can have expressed concerns. For that reason, the hotel must operate to hold the trust of customers. The hotel should also worry on the trend of business sustainability, increasing support for accountable sourcing, and increasing support for the products that are environmentally friendly (Ruth & Graham, 2010). The trend on business sustainability concentrates on processes, which guarantee minimal environmental degradation. Accountable sourcing, in relation, stresses corporate social responsibility (CSR) within the supply chain. MMuges hotel has chances to improve its business performance within these fields.
Legal Factors
These concerns regulation as well as laws of doing business. The hotel must guarantee that it never infringe any regulation or policy of doing business. Additionally, the hotel must be alert to regulations or policies by health authorities, which affect the operations of the hotel industry. Other factors that can affect the operations include customs or trade regulations, increasing employment policies, licensing laws in the hotel sector, and product safety regulations (Ruth & Graham, 2010). The hotel has the chance to enhance its performance through satisfying commodity safety laws. Additionally, the increasing employment policies, particularly in Ireland, threaten MMuges hotel’s access to the market of labor. It also affects the hotel by increasing expenses on human resources.
References
Peter, C. (2004). Key Marketing Skills 2: Strategies, Tools, and Techniques for Marketing Success. London: Kogan Page.
Ruth, M., & Graham, W. (2010). Management of Risk: Guidance for Practitioners. Norwich, England: The Stationery Office.
