India is a major and a well known pub for tourism of all kinds and also the hospitality it offers. The huge historic values, diverse culture, intense political condition, high environmental issues, fluctuating economy, overgrown population and mixed market makes this country a more complicated and competitive environment for business establishments trading in hospitality sector, especially the hotels. Thus application of analytical theories is beneficial for finding close solutions to all the problems related to the business environment components.
These analyses could be established on the SOOT analysis for internal factors, like he strengths, weaknesses, opportunities and threats possessed by the hotel and the PESTLE analysis for the external factors like the political, economic, social, technological, environmental and legal factors affecting the business of the hotel.
According to Nominal et al (2010) “Business environment analysis is an aid for an organization to plan and frame trade structure in order to battle the competitors flourish in competitive business market. According to Gain et al (2010) “Micro environmental factor consists of keys that lay on the internal structure of the business and affects in directly”. Depending on these the hotel creates and alters approaches to control their market and rum the commerce effortlessly.
According to Noninsured and Russo (2009) “Macro environment consists of factors that are afar of the power of the business management and thus the development and growth depends on the dependableness of the business association. Evaluating these factors helps to create an arrangement so that they can be used for the hotel’s advantage and also consider the political, social, environmental, economic, legal risks that might cause business collapse.
According to Campbell and Houston 2002) “Market is a place where goods and services are sold by sellers and bought by buyers against a price in form of cash or kind”. Understanding market and market segmentation can fetch more trade as India is a country with diverse social and cultural positions requiring different criterion’s for services and value for money.
Varied types of hotels can attract consumers from all the segmentations and capture the entire population as well as the external tourists An evaluation of the business environment thus gives a power of market speculation and in turn helps in framing of business functionality. It not only helps in changing environment adaptation but also in economic stability and growth for the business.