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Global Hospitality Environment

Week 2 Blended Learning

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Introduction

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Weekly Aims and Learning Outcomes

Aims

  • Research on Micro and Macro-environment.
  • Share ideas in groups for case study task.
Learning OutcomesLO1 Explain the characteristics of a specific hospitality business and its response to global market forcesLO2 Determine the contemporary issues and challenges faced by hospitality businesses. LO3 Discuss the effects of global factors on business decision making, using specific examples.

Businesses and market strategies Padlet post

Analysing an Organisation's Microenvironment

"Political instability and tourism in Egypt: exploringsurvivors’ attitudes after downsizing"

Macroenvironment Case Study

Revise macro- and micro-environment concepts

Micro and Macro Environments

Index

The macro-environment provides a broader context for the hospitality industry, while the micro-environment focuses on specific factors directly affecting individual businesses. Both macro and micro factors influence marketing strategies, operational decisions, and overall performance in this dynamic sector.

Micro and Macro-Environment in Hospitality

Macro-environment: Key components

Micro-environment: Key components

Go to Padlet

Analysing an Organisation's Microenvironment

"When we say microenvironment (or alternatively, Competitor Environment) we are referring primarily to an organization’s industry, and the upstream and downstream markets related to it. " (Morris, 2020)

Study the examples on Porter’s Five-Forces Analysis of Market Structure in the article linked below. Can you think of a related case with any UK hospitality business? Discuss and share your ideas on Padlet, leaving comments under 2 of your classmates' posts.

Figure 3.1 Porter’s Five Forces (Morris, 2020)

Macroenvironment Case StudyCrisis management in Egypt's hospitality industry: from political instability to post-pandemic recovery

Read through Ibrahim A. Elshaer & Samar K. Saad's article (2016) for a case study on political instability and tourism in Egypt. Explore the following content that picks up the thread on crisis management and applies it to post-Covid recovery and risk management strategies implemented in the Egyptian hospitality sector in line with government policy-making.

Elshaer, Ibrahim & Saad, Samar. (2020). "Political instability and tourism in Egypt: exploring survivors’ attitudes after downsizing." 10.4324/9780429451942-2.

Macroenvironment Case StudyGovernment’s and hotels’ response to the COVID-19 pandemic in Egypt

Pay attention to the structure of this next article, "A content analysis for government’s and hotels’ response to COVID-19 pandemic in Egypt."

Q:What makes a well-structured case study/analysis in this context? How is data used to substantiate the arguments presented in the text?

  • Literature Review
  • Methodology
  • Figures
  • Discussion

Salem, I. E., Elkhwesky, Z., & Ramkissoon, H. (2022). "A content analysis for government’s and hotels’ response to COVID-19 pandemic in Egypt." Tourism and Hospitality Research, 22(1), 42-59. https://doi.org/10.1177/14673584211002614

Thanks

Demographic Factors: These include population size, age distribution, income levels, and cultural diversity. For instance, an aging population might lead to increased demand for senior-friendly accommodations.Economic Conditions: Economic trends, such as recessions or economic growth, affect consumer spending on travel and leisure. Businesses need to adapt their strategies accordingly. Political and Legal Factors: Government policies, regulations, and political stability impact the industry. For example, changes in visa requirements or taxation policies can influence tourism. Natural Environment: Climate change, weather patterns, and environmental concerns (e.g., sustainability) affect hospitality operations. Hotels may need to adapt infrastructure to withstand extreme weather events.Technological Changes: Advances in technology impact how businesses operate. For instance, the rise of online booking platforms has transformed the way travelers make reservations. Cultural and Social Factors: Cultural norms, social attitudes, and lifestyle trends influence consumer preferences. Understanding cultural differences is essential for providing excellent service.

Customers: Understanding customer needs, preferences, and behavior is critical. Businesses must tailor their offerings to meet customer expectations. Suppliers: Reliable suppliers are essential for maintaining quality and efficiency. Negotiating favorable terms with suppliers impacts cost and service quality. Competitors: Analyzing competitors’ strengths, weaknesses, and strategies helps businesses position themselves effectively. Competitive intelligence guides decision-making. Intermediaries: These include travel agents, tour operators, and distribution channels. Collaborating with intermediaries affects market reach. Publics: Publics refer to various stakeholders, such as the media, local communities, and interest groups. Managing relationships with these groups is crucial. Internal Factors: These include organizational culture, leadership, and employee performance. A positive internal environment contributes to overall success.