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Macro-Micro Issues of Business Environment- City Hotel

University: University of West London

  • Unit No: 2
  • Level: Post Graduate/University
  • Pages: 9 / Words 2298
  • Paper Type: Assignment
  • Course Code: BUSS403
  • Downloads: 371
Question :

This assessment will cover the following questions:

  1. City hotel is a renowned hospitality and service industry of the United Kingdom. What are the core macro issues which affect the business environment of the City Hotel?
  2. What are the emerging issue which may impact the performance of the organisation.
  3. What are the challenges faced by the City hotel in dealing with the competitive market?
Answer :
Organization Selected : City Hotel


Business environment refers to all the external and internal factors that affect the operational and executional ability of an organization as well as the functions of a company including their suppliers, customers, management, employees, etc. (Business environment, 2018). It is important for every firm to analyze such factors and identify causes of a negative impact and find out the solution of these factors to turn into a positive impact. This report is based on London City Hotel which was located in London, UK. In this report, key issues of macro factors on the business environment are discussed and their impact on the micro-level environment is discuss. Apart from this, some challenges and proper ways to overcome these challenges are discussed.

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Main Body

A. Three key macro issues in the business environment that are significant for the ‘Travel & Leisure’ Sector:

The travel and tourism sector are undertaken the alteration at large scale. Issues are major affect the business operations of tour and travel companies. It has a broad level of connection with the social changes as well as technological changes.

Technological advancement:

It is a major issues which is changed the attribute of travel and leisure sector at large scale. This is clear that with the aid of definite feature the enterprises can better their service quality. For example- hospitality sector provide facility of reservation of advanced booking and it is possible only via high technological advancement. This sector improve their quality of services and add some features that put positive and effective impact on consumers. In the travel and leisure sector, technological advancement and online platform are huge or immense. The London city hotel use innovative and new technologies for better productivity and customer satisfaction (Clair and Milliman, 2017). These advanced technology can increased the profit and customers, if travel and leisure company is using these types of technology. Search engines and social media provided the best plan and destination for the holidays which can be made by the this company. It allows the virtual tour to the visitors. The hotels and tour operators are creating complete use of it. The technological advancement has a broad level of significance in order to bringing the changes in leisure and travel sector.

Increased environmental awareness: 

It is another important factor that is driving changes within the leisure and travel sector. It has a broad level of importance within the hindrance of nature from any type of harm. The tourism tends to be developed or fostered that promote the protection and safety of the environment. The environment consciousness has been circulate among the companies as well as tourists active into the broad scope of travel and leisure sector. The London city hotel should contribute for the protection and safety of environmental resources. The wastage is need to be trash properly (Davies, 2017). Due to broad level of travel and leisure sector, the level of pollution is also increasing really fast. They clear that efforts are create in this company to save unique environments and there should not any type of physical harm. It support to increasing and improving the knowledge about surroundings awareness. So, its clear that the changes are noticed in this sector.

Increased security and social welfare:

Security is an preparation for the protection against any type of threat for any community or society. In this sector, it is increasing on the daily basis so rising the protection measures has become major challenges in front of the travel and leisure sector as well as the local government. The people is spend their income on travel and leisure because their income is high. But the terrorism and social security put its affect at the development and growth in the ratio of domestic tourism and international tourism. The London city hotel have a high level of security and protection for the safety of international tourist. Different countries have a various and high level types of frisking processes that has create the security and protection layers very stringent and strict. Thus, this types of security measures is very important and have a huge impact on the travel and leisure sector. These three factors are driving the alteration at very wide level.

All the above elements impact on the business environment (Fineman, 2017). All the elements are made the issues for this company because they are related to the environment of these sectors and have power to influence the activities of business.

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B. Impact of macro issues on micro level

There are different issues arises in macro environment which make great impact on micro level in context of travel and leisure sector. Impacts are determine as under:-

Technological factor

It is a macro issue in business environment. It refers to enhancement in productivity of goods and services in an organisation. Now a days technologies are changing very fast which make impact on micro level. Impact of technological factor at micro level are as follows:-

Suppliers- Suppliers are those people and firms who who supply goods and services from various location to organisations in travel and leisure sector. If the exchange rates are changes than it is difficult for suppliers to provide stock in low price. Sometimes, possibility of charging high prices is increase to match with exchange rate (Kolk, 2016). At the time of technological advancement, suppliers charge high prices for equipments and material but innovative technology helps to reduce cost and time and it also increase productivity of an organisation. For instance: if suppliers of London City Hotel are provide goods or services to their clients with the help of new technology. It increase profitability of a firm and suppliers get more profit from technological factor.

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Competitors: All the competitors affected by macro factors. If company has to adopt new technology then it will give advantage from their competitors and helps to beat competition. Every organisation make strategy to take advantage from competitors. When London City Hotel upgrade their technology then it is helpful to attract more customers and earn more profit in compare to their competitors (Silvestre, 2015). Sometimes, this factor create issues more than opportunities because advance technology needs more maintenance which increases cost of an organisation.

Social factor

These factors are related with taste and preferences consumer which can be changed time to time. In context of travel and leisure industry, if organisations are supplying better quality services to their clients with new innovations than it helps to enhance business performance. But if firms are not capable to provide best quality service to their visitors then it make a large impact on their business operations. So, in this case, customers will switch to other firm where they get quality products and services.

Customers- Customers are the important part of micro level environment. They make a large impact on organisational activities (Konstantinov and Cooney, 2015). Demand of customers are always modify with time and they always want to get innovative services. If the companies in travel and leisure sector are not able to provide good services to the customers than it can leave an adverse impact on their profitability. Decreased number of customers can also lead the organisation toward a failure. In case of London City Hotel, if the manager of hotel will not provide better service to their visitors then it make negative impact in front of customers.

Competitors-All the competitors impact on macro as well as micro level and also affect the trading operations when they deal in same sector. Some businesses particularly those who were approximately have a fairly good appreciation on the competition in market. It is important to realise that failure to do so will impact their long term success. In case of London City Hotel, there are many competitors in travel and leisure sector. So, if firm will not contribute in social welfare and satisfy the need of customers them it make a negative impact for an organisation.

These above are the two issues of macro factors of business environment which make impact on micro level (Kopnina and Blewitt, 2018). Technology and social factors are the majors factors that affects overall performance of an organisation.

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C. Challenges faced while identifying the issues and its appropriate ways to overcome such challenges:


Every business face the difficulty while driving the business as there are several elements which impact the activities of the company. That enterprise have to deal with two leading problems that are frequent changes in exchange and economical interference that impact the prices of products and services which are purchased by the company who is operating business in travel and leisure sector.

Many companies are driving business under travel and tourism sector and facing many challenges and difficulties that is change in exchange rate, technological change, environmental change and changes in government policies (Lewandowski, 2016). All the changes are impacting the business performance activity of the London city hotel. This type of challenges can be solved with the support of proper strategies and effective planning. Some elements are the as follows that can be adopted by the London city hotel to deal with the difficulties:

Gather information about the market changes: Having appropriate and right data about marketplace changes can aid to get over the challenges that can impact the organisations because they can select those suppliers who are supply goods on lower price as comparison to others.It is very essential for the London city hotel who are a concern with travel and leisure industry to have the direct market collection in which they can change their services in respect to the market.

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Adoption of government policies: The London city hotel who are driving their concern under travel and leisure sector are recommended to follow the governing policies which are enforced by the judicial authority of the nation. This can aid to deal with difficulties that are presently originate in this sector because if the company is pursuing all the laws and regulation of government than the hindrance of them will get decreased (Quarshie, Salmi and Leuschner, 2016).

Follow market trends: It is very essential for the business of leisure and travel sector to follow market tendency to get over the difficulties because all of them can aid to increase efficiency of whole company and productivity of worker. If they effectively follow the trends of market then they easily know about

Keep information about exchange rate: This company should have the data of the exchange rate so they can switch to other supplier who are from same nation where the enterprise is directed.This can outcome in enhanced profitability because if the institution is having the sentiment of exchange rate than they can select localised suppliers to purchase same commodity on lower price (Sargeant and MACQUILLIN, 2016). It is an simple way to deal with these difficulties.

All the above define the ways which can be take over by this company to driving business under travel and tourism sector to get over the difficulties of common changes in exchange rate of the nation and government policies.

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From the above mentioned project report, it has been conclude that there are different factors in business environment including micro and macro which affect the efficiency of an organisation. There are some major issues in macro environment which impacts on productivity of a firm. In current market scenario, business have to face many challenges related to upgradation in technology, competitor's strategy and taste and preference of consumers. So, to resolve these challenges company have to make strategy and proper planning to improve their performance and enhance their efficiency. It is important for the managers of London City Hotel, to identify the issues and client's needs so that all of them can be resolved or satisfied and the business activities can be performed in an effective and efficient manner.


  • Clair, J. and Milliman, J., 2017. Best environmental HRM practices in the US. In Greening People (pp. 49-73). Routledge.
  • Davies, P. G., 2017. European Union Environmental Law: An introduction to key selected issues. Routledge.
  • Fineman, S., 2017. The business of greening: an introduction. In The business of greening (pp. 1-10). Routledge.
  • Kolk, A., 2016. The social responsibility of international business: From ethics and the environment to CSR and sustainable development. Journal of World Business. 51(1). pp.23-34.
  • Konstantinov, K. B. and Cooney, C. L., 2015. White Paper on Continuous Bioprocessing May 20–21 2014 Continuous Manufacturing Symposium. Journal of pharmaceutical sciences. 104(3). pp.813-820.
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