The Enchanted Vineyard Bed and Breakfast Hospitality Business - Term Paper Example

THE ENCHANTED VINEYARD BED & BREAKFAST Current External Environmental Factors Name. Class. Date Introduction The Enchanted Vineyard Bed and Breakfast hospitality business is found in Sydney. It is highly known for its vast services it offers to the public. It is located in a valley which is well known for its beauty in a concentration of vineyards. The Enchanted Vineyard bed and breakfast is a sole proprietorship business managed by Missy Stewart. She has devoted all her lifetime resources to run this business. She uses her newly renovated home to settle down her ambitions in providing hospitality services through the Enchanted Vineyard bed and breakfast. Despite all the favorable conditions to the location of the bed and breakfast business, Missy Stewart is faced up by other factors that are beyond her reach. These factors are to be considered in order for the business to prosper. Current External Environmental Factors Current external environmental factors are conditions, events or entities that surround business practices to maximize risks and opportunities. These external factors I have enumerated them affect the Enchanted Vineyard bed and breakfast hospitality industry. In order to determine these factors we engage the use of PESTEL analysis which describes all environmental factors affecting business performance. These factors are: Political factors. These are factors that arise from the government policy. The political nature of a government influences the performance of business activities either positively or negatively. These government processes includes trade restrictions, tax policies and political stability (Williamson, (2010). The Enchanted Vineyard bed and breakfast enjoy a lot of progress during stable political conditions in Sydney. A stable country provides a good environment to exercise business activities. Political instability on the other hand will render business activities less productive. Business activities in Sydney will enjoy better working zones only if there will be political stability in the country. Trade restrictions are also political concerns that affect business practices. Businesses are guided with this principle where they are to conduct their activities in a certain location and under certain jurisdiction of their services. They are limited to offering the stated service only registered by the relevant bodies. In breach of this policy, business owners are to face the law. Lastly, there are tax policies in which all business organizations are to pay taxes to the government from what they earn. Failure in paying taxes, serious consequences including imprisonment business owners will be subjected to. It is therefore clear that, the Enchanted Vineyard bed and breakfast business should study correctly the political factors that are to affect the service delivery from its business. Better political factors in Sydney will give good conditions for business development while bad political factors will be a hindrance to business prosperity. Economic factors. Economic factors are concerns that enable a business to impact decisions on how the business will operate. Economic factors include inflation rates, exchange rates, interest rates and economic growth. Inflation rate is the increase in price of commodities over a certain period of time. Inflation process hinders business performance and development since a lot of money will be used yet they hold less value. Business will not gain considerable profit during this period of inflation. Exchange rates of a countrys currency also affect business performances (Richard, 2013). When the currency rates appreciates, business units gains profits. And the currency depreciates they suffer loses. The exchange rate is a determinant of business progress. Also interest rate is an economical factor that affects business growth and development. When interest rates increases business owner suffers loses since they have to put up with increased level of standards. When there are a reduction in interest rates many of the business owner will be relieved and they will find value of their money and develop their business organizations. Economic growth also depicts the level of the current economy. A country that has good economy it is always good place to establish a business. Businesses that are carried out in countries that have good economy are likely to prosper compared to those in a poor economy (Cooms, 2008). The establishment of Vineyard bed and breakfast in Sydney where the economy is better, it will prosper and develop much more. Missy Stewart will enjoy profit from this hospitality business when she observes economical factors. Social factors. These are factors that are attributed from the cultural aspects of life. They include career attitudes, age distribution, population growth rate and emphasis on the safety. Age distribution as a social factor mainly shows the market target of the business. Many business activities have restrictions to observe while offering out services to their customers. Under-aged customers are subjected to limits when business activity requires adult consideration due to its complexity in parental guidance. The emphasis on safety too is a social factor to be taken into consideration. The location of the business can determine the level of security being offered to the customers. Security controls are major concerns as they provide guidelines in protecting the lives of customers while on vacation at the Vineyard bed and breakfast hospitality industry. The study of career attitudes reveals the social factors that can affect in the running of these hospitality industries. Many people who are located in Sydney near the Vineyard bed and breakfast facilities are students at the university. Many of these students can seek accommodation as they prepare to travel. Also the population growth rate of Sydney can show how it affects these businesses. Increased growth rate increases the chances of customers to visits these hospitality bed and breakfast for accommodation as they seek to settle in new places. It is therefore evident that social factors in Sydney affect these business processes. The Enchanted Vineyard bed and breakfast business therefore should take into consideration of the social factors in Sydney so that the business can prosper and achieve in the long run. Technological factors. These are aspects that are based on the level technological advancement in a country. They include automation, the rate of technological change, technology incentives and ecology environmental issues. Automation involves the process of making a system to work automatically. The use of automation is a current trend where all businesses are venturing into it. The Vineyard business too should venture in and move with the current technology. Online hotel booking should be done through the portal offered in Vineyard website. This change in technology therefore should be considered as an obstacle in service delivery in Sydney. In order to overcome it, business organizations should venture in and start using the available new technology like online room book to hotel and vacation premises. Technological incentives measures have led to improvement of technology in Sydney since technological differences were part of the key concerns in realizing the external environment factors that affect business activities (Henry, 2013). All of this was brought by the ecology of the environment. Certain environment inhibit technological advancements, therefore business owners in these areas will yield loses while transacting there business activities. The location of Enchanted Vineyard bed and breakfast hospitality industry in Sydney will gain profits as it upgraded and uses current technology. These technological advancements are seen through the use of online booking portal and installation of CCTV cameras in the premises to enhance security. Other business owner should be able to change with the change in technology as they affect business activities. Environmental factors. These are factors that are obtained from the surrounding. They include climate and weather. These two elements affect the functioning of activities such as farming, tourism and insurance. The daily change in climate contributes to changes in the number of customers to receive each day. During dry season in Sydney, the valley of vineyard garden at Missy Stewart renovated home loses its beauty. This makes it unattractive to her clients thus loosing many customers during this season of drought. Environmental factors are to be taken into consideration while planning to locate a certain business. The enchanted Vineyard bed and breakfast business should therefore analyze its environmental weather and climate condition to know if these conditions will impact positively or negatively in realizing the business objective to settle in Sydney. Legal factors. They are considerations that enable a business to know how it will operate, and how its product demand will be affected. The legal factors include health and safety law, consumer law, employment law and discrimination law. Employment law provides guidelines on how the owners of business organization can employ other staff to assist in the running of the business. In the employment act laws, the rights of employers are clearly stated and employers have to follow them. Discriminatory laws are also written to avoid segregation among people living in particular areas (Monty, 2014). These laws encourage togetherness and participating together. Without discriminatory laws, members of different races and ethnicity would not be participating together in any work type. Also the consumer laws are enacted to protect them from any kind of exploitation from business owners. Their rights are stated and protected against greedy business who may exploit them. Consumers may be exploited through higher prices of commodities in the market. When the price level is increased beyond its specifications, Vineyard bed and breakfast management will be under review and maybe to be fined too. Health and safety conditions are to be considered by the management in offering services to the public. The Enchanted Vineyard bed and breakfast business should consider these legal factors as they run their hospitality business in offering vacation holiday stay inn. Failure to observe them they will face legal consequences leading to closure of business activities. Conclusion The Enchanted Vineyard bed and breakfast is a fast growing and promising business engagement in Sydney. Missy Stewart has to observe all the current external environmental factors that will either impact the business positively or negatively. These factors are to be taken into consideration for business prosperity. Hospitality industry is one service rendering industry that requires taking good care of customer needs and satisfy them. References Cooms, K. P., and Saviotti V. W., (2008).  Economics and Technological Change,  :The Macmillan Publish Henry, G. (2013). Business prosperity: current technology advancement. 2nd ED. Maidenhead: Open University Press. Medlik, K. (2009). Technology and Business. London: Earthscan Monty, B. (2014), Legal issues in business: Journal of Travel Research: Vol. 42(2): 195–199 Richard, H. C., (2013). The Problem of Social Cost:  Journal of Law and Economics. vol. 4, pp. 1 -44 Williamson, V. G., (2010). Business concerns: political stability. 2nd ED. Maidenhead: Open University Press. Read More