This report provides an understanding of how the macro-economic factors like political, economical, social, technological, environmental and legal factors affect the strategies and working of a company in any industry.
Impact Of Macro Economics On Business analysis gives an understanding how the macro-economic factors like political, economical, social, technological, environmental and legal factors affect the strategies and working of a company in any industry (Alizaqaizer, 2012). In this case, PESTEL analysis will help us understand how the various macro-economic factors affect the working in a hospitality industry. The Mount Steve Resort is an underground resort situated in the western part of Australia and is surrounded by big iron ore mines on all the four sides. The nature of service here is the hospitality industry. People come to these resorts to spend leisure time with their loved ones. They come here to relax and get a break from the daily routine life. It is a service industry where there are no tangible goods to satisfy the customers. Moreover it is difficult to create a point of differentiation to which the customers can relate to. Thus giving different and good customer service is very important to build satisfied and loyal customers (Lancaster, 2010). It is very important for every company to understand its external as well as internal factors of the environment to anticipate any changes which might affect the business of the company positively or negatively.