Factors that impact on and influence the organisation

The business environment is often an uncertain one, where managers are faced with many factors that impact on and influence the organisation. The micro-environment includes suppliers, customers and stakeholders, all of which influence the organisation directly. The macro-environment, however, includes factors that influence the organisation but are out of its direct control.

The micro-environment is often determined by the industry the organisation operates within. Competition becomes a critical influencing factor. Johnson et al (2002) states that managers should understand the competitive forces that exist between organisations in the same industry because this will determine
Marriott Hotels (cited in Harrison, 2003), considered societal trends in its development of housing for people who may require a form of assisted living. This development was due to Marriott’s recognition of the ageing baby-boom era. Technological factors are important to consider when new markets are being established. New technologies create new products and new processes. Technological developments can benefit consumers as well as the organisations providing the products. In the hotel industry, technology advancement should be centred on customer service and the experience one should expect. According to Connolly et al (2000), the hospitality industry should be preparing for the future by readying itself for technological advancements. This way, hotel companies will be well positioned to meet the needs of their customers. One of the most popular advances in technology for the hotel industry would be computer advances and the wide use of Internet. Hotels are now expected to have online booking facilities, which are easy to use, install confidence and assurances for the online customer that their booking has been received and processed accordingly. Websites are commonly an organisation’s first point of contact with potential customers. Therefore, branding and corporate image is important. Customer relationship management is possible with