Environmental analysis can be defined as the evaluation of the most likely or most probable effects of external forces and conditions on an organization’s continued existence and strategies for growth. Macro Environment on the other hand can be defined as the major external factors that influence a company’s decision making process, strategies and performance. The major macro environmental factors include legal, political, demographics, social conditions, technological changes and natural forces (Doole, 2005).
The discussion around this topic is constrained to a case study the Marriot Hotels and Resorts. Macro environment analysis is the first step towards strategic analysis taken by the strategic management of Marriot Hotels and Resorts. This analysis is also referred to as pest or pestle analysis (Xu, 2005). The reason as to why the Marriot Hotels and resort management team has to conduct a macro environment analysis is to establish possible opportunities as well as threats to the business as whole. It helps forecast future trends in the various market driven products and service offered by the Hotel (Doole, 2005).
PEST and PESTLE analysis
A PEST analysis is done to identify the most pressing external factors that in one or another affect the normal running of the Hotel. Analysis of PEST entails looking the political, economic, social and technological environment (Doole, 2005). The analysis should further consider adding a few more factors that are Legal and the environment (PESTLE analysis).
Political factors
This is the first element of a PEST analysis. It involves studying the political factors that can influence the success of the Marriot Hotel and Resort. It looks at how politics can play major role in creating advantage and more opportunities for growth and expansion the hotel. On the other hand, politics can cause major or impose strict obligations and guidelines for the Hotel to fulfil to be allowed to operate (Havaldar, 2005). Political factors include the following use of the following instruments; legislation such the minimum wage, anti-discrimination laws, tax levies and tax breaks, voluntary codes and practices, among others. Failure to conform to the legislative requirements can lead to serious sanctions which include fines, adverse publicity and imprisonment.
Economic factors
All businesses are in one way or another affected by the global and national economic factors. The national interest rate as well as those for global interest rate, fiscal policies are all set around the prevailing economic situation (Havaldar, 2005). How the economic status of a country is, dictates how either consumers, suppliers or any other of the Hotels stakeholder (Xu, 2005). When an economy is undergoing a period of recession it is more likely have a much higher number of unemployment, extremely low spending power and low stakeholder confidence in a business.
Social factors
This particular aspect focuses more on the issue of society in groups such as family, friends, neighbors and the media. Social factors greatly influence our attitudes, opinions and interests (Havaldar, 2005). The force of social factors is what actually causes people to be who they are. It affects how we behavior and ultimately where we travel to which hotels we visit (Xu, 2005).
Technological factors
Technology has improved the way of doing thing in the 21st century. Technology if applied properly can uplift the status of the Marriot Hotel and Resort. The society that has been created by the technology is one that expects instant results (Havaldar, 2005). The advancement of technology has also improved the speed of relaying information from one location to another which in essence is a good thing for the hotel business as people can make online reservations.
References
Doole, I., & Lowe, R. (2005). Strategic marketing decisions in global markets. London [u.a.: Thomson Learning.
Havaldar, K. K. (2005). Industrial marketing: Text and cases. New Delhi: Tata McGraw-Hill.
Xu, J. (2005). Market Research Handbook: Measurement, Approach and Practice. Lincoln: IUniverse
