The strategic business impact of the environment
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A study conducted indicates that Shangri la hotel is a multinational hospitality company founded by a Malaysian tycoon named Robert Kuok in 1971. The company has managed to open over 100 hotels based in the Middle East, Africa, Europe, and Asia. Based on its international standards, Shangri hotel has managed to get a five-star ranking. Shangri hotel in Paris provides appointed rooms that are comfortable and well fitted with amenities. The hotel is located across the seine and faces the Eiffel tower providing a beautiful view (Chorna et al., 2020). The hotel targets to display both Asian and French hospitality in general. Shangri hotel of Paris is an international figure that has two restaurants and one bar in it. It also provides a fantastic view of the Eiffel tower and river seine that is so attractive to its customers. Most of the rooms have a glamorous idea of the Eiffel tower and contain international amenities. The hotel has managed to keep its international standards due to the perfect external environment that exists. Therefore, changes in the external environment have significant impacts on the hospitality of the hotel.
A survey done using the analysis tools showed that the hotel was directly affected by the external environments’ changes. Analysis tools used include; SWOT, pastel, porter’s five forces, value chain, and micro-macro analysis. SWOT involves the study of the strengths, weaknesses, opportunities, and threats that the hotel faces. It presents the study that is a simple two grid in a perfectly organized list. The swot analysis tool was able to identify the various external environmental factors and how they impacted the hotel. Pestel analysis tools were used to determine and monitor the macro-environmental aspects and the magnitude of the impact they had on the hotel. The pestel analysis tool’s results were used to identify the threats and the weaknesses in the swot analysis tools (Onyshchenko et al., 2020). Porter’s five forces tools were applied to analyze the competitive factors that result from environmental conditions that the hotel faces. The tools indicated the competitive intensity and the attractiveness of the hotel regarding the external environment’s impacts. Reports from the value chained analysis tools presented how the hotel improved profits by installing mechanisms that curbed the external environment’s adverse effects. Therefore, macro micro analysis displayed the results of both the large scale and the hotel’s small scale interactions.
According to analysis tools surveys, Paris’ external environmental factors play a significant role in managing the hotel. Some of the external environmental factors include political and regulatory environment, economic environment, competitive environment, technological environment, and the social and cultural environment. Swot analysis showed how the external politics of France affected how Shangri la hotel conducted its business. According to reports from the swot analysis, changes in the country’s political status affected customers’ accommodation rate (Hasbi et al., 2020). Analysis displayed that the customers preferred a stable environment free from political instability and unnecessary military coups. Thus, having a stable political situation in Paris resulted in an increased customer rate at the hotel.
Reports showed that the regulatory environment involved the national government, setting some regulations that control the hotel businesses. Such restrictions are put in place to prevent the consumers, and the companies carried out by the hotel. Hence, reasonable regulatory measures have enabled the hotel to conduct its business without any hindrance whatsoever. Changes in regulatory standards are said to either raise or lower the hotel’s productivity (Hapsari, 2019). Swot analysis indicated that reasonable regulatory measures served as a strength to the hotel. Therefore, due to good regulatory contracts between the company and the government, the hotel can thrive in its business, thus attracting customers worldwide.
Studies conducted in the hotel exposed that Paris’s economic environment changes had direct impacts on the hotel. According to the pestel analysis tools, the hotel’s economic climate is bound to keep altering every day. Thus, the managers can adequately digest the news and access their possible impacts. In many situations, it forces the managers to change the marketing plans to accommodate changes in the economic environment. When the economy in Paris is growing, then the impact on the hotel is that it also registers profits and upward trends (Ivanov et al., 2019). But when France’s economic environment is dwindling, then the hotel business is also affected by registering losses. According to pestel analysis tools, during situations of inflation, interest rates of business rise. This impacts the hotel by pushing it to increase its rates, which may negatively affect some customers. Therefore, business in the hotel thrives when the economic environment of Paris is growing and vice versa.
Several surveys conducted within the Shangri la hotel show that changes in the competitive environment affected its business. Porter’s five forces analysis implemented at this stage showed how the competitive environment within Paris involves the dynamic external system in which the Shangri la hotel competes and functions. According to porter’s five forces analysis, any business must note its competitor’s moves to ensure they develop measures that counteract the competitors and beat them (Wang et al., 2020). In Paris alone, several other hotels offer the same services as Shangri la hotel. This means that the hotel must devise strategies that will see it beat its competitors and turn out to be outstanding. As a result of competition within Paris, several other hotels are seen to cut costs, improve services’ efficiency, and increase the hotels’ level of innovation. These measures are aimed to attract more customers and retain the already present customers. Thus this has impacted Shangri la hotel by ensuring that it raises its standards to emerge the best. Hence, Shangri la hotel has boosted its innovation levels and incorporated five-star class services that retain their customers.
Over recent years the current market for hospitality and tourism has continuously been changing and evolving. These changes include incorporating artificial intelligence, improving guest personalization and experience, and more friendly client accessibility. Reports show that most guests are demanding an increase in technological innovations within the industry. Due to this reason, there have been incorporations of robots to be used as receptions at hotels. Robots with artificial intelligence are considered more effective and efficient (Köseoglu et al., 2019). Micro and macro analysis tools show that most customers appreciated better the experiences they received from robots. Therefore, current evolution has seen some hotels apply the use of robots to offer better hospitality services.
Research conducted in the current market for hospitality and tourism shows that customers demand more personalization and hospitality experiences. Porter’s five forces have projected this evolution to create stiff competition in the industry. This has resulted in continuous innovations and implementations of strategies to increase the customer experience within the industry. The current century market wants to have better hotel hospitality experiences (Tavakoli & Wijesinghe, 2019). They are looking for an extra achievement that has been made by the company that makes them makes it outstanding. It has led to the situation where personalization is now considered a must. Personalization has helped to increase the integration of clients and hotel systems. Therefore, value chain analysis showed that applying technological measures in the hospitality sectors has also improved client personalization.
In conclusion, evolution in the hospitality and tourism market has led to friendlier client accessibility. Client accessibility has been achieved by having efficient websites that allow the customer’s easy navigation. Incorporating a system that enables clients to connect the hospitality services to their tourism places of interest is the current evolution in the market today (Leung, 2019). Swot analysis has predicted this to be one of the major strengths that will impact the tourism and hospitality industry. These platforms enable the clients to access the hospitality and tourism services at the comfort of their locations. Hence, through the implementation of these services, customer satisfaction is achieved, and more customers are attracted.
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