External Trends
Decision Making For Hotel & Restaurant Managers
Define the term environment in this context.
We say that strategic managers within organisations must consider environmental influences before arriving at business decisions; discuss what these environmental forces are and how they would impact on the decisions made by strategic management on the future viability of the business.
As well as this, do a brief analysis of the 5 forces driving competition in the hospitality industry using Porters model as the basis of your analysis.
If there is a question: ”What must be considered for managers in the first stage of business decision making?”, one of the component elements included in the right answer definitely is analysing the external environment of the organization. As Dess commented (2008, p.37), “Strategies are not and should not be developed in a vacuum. They must be responsive to the external business environment”. Especially in hospitality – a service-based industry, the term “external environment” is extremely important cause the products are intangible, which are dedicated according to the markets’ demands. This paper will base on a concise definition of the term “environment” in hospitality in order to give a view in details of the common environmental forces as well as how they affect the business that drive the decisions made to adapt to the environment.
External environment can be simply defined by everything outside an organization that can influence its present and future. According to Davidson (2009), there are two layers composing the external environment of an organization, which are general (or macro) environment and task environment. While the general environment includes all major impacts at the industry level namely economic, demographic, technological, socio-cultural, political-legal, and international trends; the task environment contents the relevant forces at the level of individual, which directly affect the organization’s activities
Define the term environment in this context.
We say that strategic managers within organisations must consider environmental influences before arriving at business decisions; discuss what these environmental forces are and how they would impact on the decisions made by strategic management on the future viability of the business.
As well as this, do a brief analysis of the 5 forces driving competition in the hospitality industry using Porters model as the basis of your analysis.
If there is a question: ”What must be considered for managers in the first stage of business decision making?”, one of the component elements included in the right answer definitely is analysing the external environment of the organization. As Dess commented (2008, p.37), “Strategies are not and should not be developed in a vacuum. They must be responsive to the external business environment”. Especially in hospitality – a service-based industry, the term “external environment” is extremely important cause the products are intangible, which are dedicated according to the markets’ demands. This paper will base on a concise definition of the term “environment” in hospitality in order to give a view in details of the common environmental forces as well as how they affect the business that drive the decisions made to adapt to the environment.
External environment can be simply defined by everything outside an organization that can influence its present and future. According to Davidson (2009), there are two layers composing the external environment of an organization, which are general (or macro) environment and task environment. While the general environment includes all major impacts at the industry level namely economic, demographic, technological, socio-cultural, political-legal, and international trends; the task environment contents the relevant forces at the level of individual, which directly affect the organization’s activities