A PESTLE Analysis of the UK Hospitality Industry

1490 Words6 Pages
In this essay I will be discussing and critically analysing each element of the PESTLE analysis within the hospitality industry, with examples to reflect each point. Also this essay will discuss how marketers should adapt to changes in the macro-environment. The PESTLE analysis is a marketing principle used to understand the relation between a company and the external environment. Murray-Webster (2010:88) states PESTLE analysis will help to capture understanding about aspects of the context by using the prompt political, economic, sociological, technological, legal and environment. The political element in PESTLE represents how the government can influence the economy by setting rules and regulations which they have to adhere. An example of this is that the national minimum wage increases and now due to a new law in place, companies must provide pensions to eligible employees and every company needs to comply with this and stay within the law. Another factor is the political unrest in certain countries. This can take effect on the hospitality industry which can in turn affect the economy and business environment. The threats of terrorism are still very much alive; an example of this was the terror attacks in London on the 7th of July 2005 where the suicide attacks left more than 700 people injured according to The Guardian (2005) which brought concern for the people and the economy. It leaves a fear in people’s minds and the way the marketers can adapt to this is by promoting UK based hotels and holidays companies, with the increased threat of terrorism and political instability people will be more concern about their safety and decide not to travel abroad. The economy affects the marketers in many ways and the economy’s perf... ... middle of paper ... ...on. The Stationery Office. Page 88. • Palmer, A (2000), Principle of Marketing, Oxford University Press, USA . Page 27 • Perkins. C (2014) Big Hospitality. [ONLINE] Available at: http://www.bighospitality.co.uk/Business/Starwood-s-keyless-mobile-check-in-not-the-end-for-human-interaction . [Accessed 25 February 14]. • The Telegraph. (2005). July 7 inquiry: timeline of the 7/7 terror attacks - Telegraph. [ONLINE] Available at: http://www.telegraph.co.uk/news/uknews/terrorism-in-the-uk/8055112/July-7-inquiry-timeline-of-the-77-terror-attacks.html. [Accessed 01 March 2014]. • Young. F and Pagoso.C (2008) Principles of Marketing, Rex Bookstore Inc,1st Edition. Page 63 • Yum (2014) Water Conservation Goal. Yum! Brands CSR Report. 2014. Water Conservation Goal [ONLINE] Available at: http://www.yumcsr.com/environment/water-conservation.asp. [Accessed 09 March 2014].
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