Pest And Its Concepts

The concept of PEST analysis seems quite simple. Indeed, there are 4 components of PEST analysis such as political, economic, social and technological factors. It is difficult to say which factor plays the most important role in PEST analysis. It depends on the company, its mission and goals. It for one company technological factors play the most crucial role, the other company should pay the most attention to political changes and economic factors. It also depends on where the company wants to be in near and long term future. This is to say that PEST analysis is very often combined with strategic planning. However are, strategy implies both internal and external factors while pest analysis focuses mostly on external factors and company position and mission in external environments. Now lets analyze concepts of PEST analysis and its key components.

Every company, whether it is small business or a large corporation, is registered or operating in a certain country. Sure, the company may be registered in some exotic islands, while it is actually operating in a European country. Anyway, every company should take into consideration political factors. Why politics? How does it influence business environment? Politics seems to be only about people making statements and declaration which we see mostly on TV. However, every word articulated by a prominent politician may have very serious consequences for national and in some cases even international economy. Thats why analytical departments of major companies analyze statements of political leaders and their possible consequences for their particular business. Those who ignore and refuse to analyze political developments and news may pay a high price, because political constituent is very important in strategic planning. Political instability they result in economic changes and thus a chosen strategy w
ill simply not work. This argument takes us to economic factors.

That should be mentioned that national economy directly influences customer purchasing power. People must have money to be able to pay for services or products. Thats why, before launch of the new product or service offering, the company needs to analyze economic conditions in the country. There are various indicators and indexes that evaluate national economys well being. In the economy is on the rise, people and businesses have money, access to cheap loans and financial programs, and thus, they can afford paying reasonable prices for products and services. Armed with figures it will be easier to design strategic plans pay on general economic situation in the country. Believe it or not, but it is possible to make very attractive offers even in a post crisis economy.

As to the social aspect, it should be noted that society forms the face of business, as business is an inseparable part of the society. In order to be successful it is really necessary to evaluate and assess social trends in terms of generating profits for the company. Were living in the age of social media so, it has become easier to keep track of all social trends and tendencies. It goes without saying that no progress is possible without an effective use of latest technologies. This statement is even not disputed.

Hospitality Industry Hotels Business Current And Future Trends

Hospitality has long been synonymous with the hotel industry. Any changes in trends of hotel business have wide scale implications on an otherwise diverse industry. What might be an opportunity for a traveler can be a matter of survival for hotels? It will not be an oversimplification to suggest that the emerging concepts in hotel industry reveal an atmosphere of stiff competition. Here is a look at a few major issues:

Is Green better?

Amid growing concern over environment friendly services, a majority of travelers now prefer Green and Eco lodgings. Recent surveys by trade associations such as Partnership Travel Industry Association and online retailers like Yahoo revealed that nearly seventy percent of the tourists are willing to pay extra when it comes to environmental friendly lodgings. These surveys further revealed that these guests will pay anywhere from nine to ten percent premium on the already advertised prices.

What can be stated as a welcome relief for the educated traveler might pose real challenges for the hotel business. To better understand the scenario, it should be noted that hotels are presently facing severe shortages in occupancy rates which are at their lowest since 1971. Such a crisis and lack of funds can definitely hamper any efforts to install appliances that comply with the LEEDS standards (Leadership in Energy & Environmental Design). Some experts agree that a trade off may lead hotels into removing free amenities that include little bottles of shampoos, jams and free basket of fruits; all of which are the hallmark of these eco lodgings.

Where are the Workers gone?

The hotel industry gives employment at a very large proportion of part time workers, who after gaining substantial experience, leave for other lucrative jobs at restaurants and outdoors. Low wages in the hotel industry is one of the primary reasons for low retention rates.

Hotel industry Gurus are already thinking of ways to attract and retain qualified workers by increasing the pay scales and by reducing the long working hours. The top management is now devising constructive methods that will retain the existing workers by sponsoring education and creating attractive career paths.

Mega Hotels

The rising cost of construction and a struggling real estate has prompted hoteliers to deploy the pre-fabricated and cost effective solution in the construction of new hotels. In fact they are fighting back by producing highly efficient designs that utilize a greater proportion of space for revenue generating purpose. Future trends in the hotel construction will seek to maximize the use of building areas by constructing a multi purpose facility that will include Casinos, shopping outlets and Theatres. The stand alone hotel concept is likely to vanish as the new properties will be constructed as a mixed use development to provide guests with facilities such as Church, Hospitals and Theme Parks. Such a variety will ensure that guests remain at one spot which will help generate revenue for the entire hotel complex.

The evolution of savvy traveller

The evolution of internet has given rise to a phenomenon where travelers are becoming ever more demanding. Industry professionals suggest that an increase in a trend, to review properties online, will make travelers less forgiving as they are able to post their travel experiences. Such an overemphasis on web may even lead to stiff competition and price reduction strategies where only large players may be able to survive.

To ward of such threats, the small business owner is now turning towards opening a boutique establishment as an alternate to 70,s style motels. Such niche properties are popping up everywhere by advertising a more personalized “home away from home” kind of experience. The introduction of such boutique properties has also given rise to the popular and widely accepted theme of modern hostels. These hostels are keen to provide a clean and safe environment for budget conscious travelers. Their goal is to wipe out the myths associated with cheap motels and dingy guesthouses.

Whatever may be the case, one thing is for sure that constant remodeling of the hotel industry has made it more functional and practical not only for the guests but also for the hotel owners.

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