Feedback: SITUATION ANALYSIS For the PESTEL good start overall. However, a few i

Feedback: SITUATION ANALYSIS For the PESTEL good start overall. However, a few important areas of feedback: Remember that for a PESTEL analysis to be truly effective and actionable, it is essential that you identify very specific trends, events, or changes happening in the present or imminent future to which operations must adapt and respond. As an example of this, instead of mentioning current laws already “on the books” or with which the business is already complying (for “P” you noted “The business has to comply with local regulations on labor, and taxation”), please remember that for “P” or “L” you need to identify current political changes, pending legislation, laws about to go into effect, changes to laws, anticipated events, etc. that are impacting your business operation now, or will impact it in the future. Complying with health and safety laws is a standard practice that has been in place for some time and this operation would have already adapted to such laws/has already been complying with these laws. However, if there are any current issues, events, or changes you can explore them here. For example, a recent rise in safety or health concerns that the business must address/respond to could be addressed here, just be sure to expand on any such concerns and cite source to support your work. For social you noted “Consumers are more and more interested in the artisanal coffee experience and Vietnamese coffee culture, in which not only drink coffee but also eat something for breakfast or brunch”. Please ensure you cite a source or more fully discuss how this is a current event, issue, or trend impacting this business. Also, you noted “Hello Em chose to serve house-made sandwiches and external suppliers.” It sounds like they have responded and the products they serve and suppliers with which they work would represent something internal to the organization rather than external. Remember, PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors, all of which are external to an organization. To help clarify, I will relate PESTEL to the SWOT analysis: • S (Strengths) and W (Weaknesses) in SWOT are internal factors (microenvironmental forces). These pertain to the internal workings and capabilities of an organization. • O (Opportunities) and T (Threats) in SWOT are external factors (macroenvironmental forces). These are what you identify in a PESTEL analysis. Opportunities and threats arise from the external environment, just like the PESTEL factors. I always recommend conducting the PESTEL before the SWOT because you simply take the PESTEL and place it into the appropriate SWOT category (opportunity for those macroeconomic forces that can help the organization and that organization should leverage and treat for those and threat for those macroeconomic forces that can harm the organization and that organization should thwart of mitigate). To help, I can provide an example of each: External Factors (PESTEL Analysis – Go into the Opportunities & Threats of your SWOT Analysis) Political: Changes in visa or tourism policies that can affect international travelers’ inflow. Economic: Economic downturns or recessions that result in fewer people traveling or staying in hotels. Social: Changing preferences of consumers, like an increasing demand for eco-friendly accommodations or wellness tourism. Technological: Rise of online booking platforms and aggregators that change how customers reserve accommodations. Environmental: Climate change leading to fewer tourists in certain destinations (e.g., fewer ski tourists due to less snow). Internal Factors (SWOT Analysis – Strengths & Weaknesses) Staff Training & Expertise: The quality of staff training programs and the overall expertise of employees in delivering top-notch service. Infrastructure & Facilities: The age and quality of the physical buildings, rooms, and amenities. For instance, an outdated heating system or a newly renovated spa. Financial Health: The current financial standing of the business, including liquidity, debts, and overall profitability. Brand Reputation: The public perception of the brand based on previous guest experiences, reviews, and any potential past controversies. Operational Processes: Efficiency of internal operations, such as how quickly rooms are cleaned and ready or the effectiveness of the reservation system. Location: Location plays a critical role in the success or challenges of many businesses, especially within the hospitality and retail sectors. In a SWOT analysis a strategic location, like being in a tourist hotspot or a bustling city center, can drive significant foot traffic, enhance visibility, and provide easy accessibility for customers, making it a strength. However, a location in a less frequented area or one with limited accessibility can hinder customer visits and potentially increase operational costs (e.g., delivery charges, commute for staff) and this would be a weakness. Now, location could also fall under opportunity or threat if, let’s say emerging neighborhoods or areas designated for future development present opportunities for businesses willing to invest early, anticipating future growth (opportunity) or external factors like urban development plans, increased competition in the vicinity, or changing neighborhood demographics can pose threats to a business based on its location (threats). Understanding the distinction between internal and external factors is crucial in hospitality marketing because: PESTEL helps businesses identify and prepare for external changes or trends that might impact the hospitality industry. For instance, understanding potential legal changes can help a hotel prepare for new regulations. By recognizing external opportunities and threats, hospitality businesses can strategically position themselves in the market to capitalize on favorable conditions or mitigate potential risks. Combined with internal analysis, understanding the external environment via PESTEL provides a comprehensive view of the market landscape, enabling informed decision-making. You demonstrated a good foundational grasp of the PESTEL framework. However, while the observations made are pertinent, there is a need for some deeper exploration, especially when tying in current events and future implications. Please revisit your PESTEL analysis, ensuring you focus exclusively on current and external factors. By bringing in contemporary examples, seeking firsthand insights from local entities, and cross-referencing with broader PESTEL elements, your PESTEL analysis can be significantly enhanced. Remember, the true power of PESTEL lies in its ability to provide a holistic, forward-looking perspective. It is important to keep this in mind moving forward. Good start on the SWOT. However, there is some room for improvement here. To begin, the identification of internal strengths and weaknesses should be very clear and specific. Strengths are the characteristics of the business that give it an advantage over others. These are inherent qualities or assets that give it an edge. Strengths need to be tangible and very specific. For instance, ” Our team has an average industry experience of 10 years, leading to quicker decision-making.” Weaknesses are the characteristics that place the business at a disadvantage relative to others. These are areas of improvement or vulnerabilities that can hinder success. For instance, “Our e-commerce platform cannot handle more than 500 concurrent users, leading to website crashes during peak shopping hours, which has resulted in a 15% drop in online sales during promotional events.” I also encourage you to use bullets to organize the work and highlight each point. For the “O” and “T” I noticed that the PESTEL was not integrated into the SWOT analysis. Please remember that you need to integrate the findings from PESTEL into the Opportunities and Threats section of SWOT. Each point from PESTEL can potentially lead to multiple opportunities and threats. For instance, a political regulation (from PESTEL) might create a threat due to compliance costs but might also represent an opportunity if it grants the company a unique advantage. Overall good work on the 5Cs analysis.