EXTERNAL ENVIRONMENT
ANALYSIS IN TOURISM
AND HOSPITALITY
Present By : Group 4
LEARNING OBJECTIVES
01 DEFINE EXTERNAL ENVIRONMENT ANALYSIS;
KNOW THE IMPORTANCE OF EXTERNAL ENVIRONMENT
02 ANALYSIS IN TOURISM AND HOSPITALITY; AND
IDENTIFY EXTERNAL FACTORS THAT MAY AFFECT THE
03 STRATEGIC PLAN
External environment analysis refers to the methodical investigation and assessment
of external variables and influences that may have an impact on an organization’s
operations, competitive positioning, and performance.
This analysis is an essential part of strategic planning because it helps companies
make decisions that will maximize opportunities and minimize dangers by giving
them a better understanding of the changing environment in which they operate
According to Sujan (2002) external analysis is the process of analyzing external
factors of an organization to understand uncertainty and achieve competitiveness.
In the other hand, if the firm cannot mitigate the threats arising from the external
environment every step it takes would not give reasonable results.
It focuses more on macro-environmental forces that are external to firm and
indirectly affect the firm’s operations and performance.
IMPORTANCE OF EXTERNAL
ENVIRONMENTAL ANALYSIS IN
TOURISM AND HOSPITALITY
UNDERSTANDING CONSUMER LEGAL AND REGULATORY
TRENDS ADHERENCE
INFORMED TECHNOLOGICAL
COMPETITOR INTELLIGENCE
ADVANCES
MEETING CUSTOMER
MEETING DIVERSE NEEDS
EXPECTATIONS
IDENTIFYING AND MITIGATING ADAPTING TO ECONOMIC
RISKS TRENDS
SUSTAINABLE PRACTICES
EXTERNAL FACTORS
THAT MAY AFFECT
THE STRATEGIC PLAN
A strategic plan may be impacted by a wide range of external influences that fall into many categories.
The PESTLE analysis was developed more than
I. PESTLE ANALYSIS 50 years ago by American professor Francis
Aguilar, who specialized in strategic planning.
POLITICAL TECHNOLOGICAL
Factors that determine the extent to which a These factors pertain to innovation in technology that
government may influence the economy or a may affect the operations of the industry and the market
certain industry. favorably or unfavorably.
ECONOMIC LEGAL
These are determinants of an economy’s These are the certain laws that affect the business
performance that directly impacts a company and environment in a certain country while there are certain
have resonating long term effects. policies that companies maintain for themselves.
SOCIO-CULTURAL ENVIRONMENTAL
These forces affect basic values, behaviors, and These factors include all those that influenced or are
preferences of the society. determined by the surrounding environment such as
climate, weather, geographical location, global changes in
climate, environmental offsets etc.
II. INDUSTRY-SPECIFIC FACTORS
COMPETITION
The competitive landscape, including new entrants, market share shifts, and competitor strategies, can influence
pricing, product differentiation, and marketing efforts.
SUPPLIER LANDSCAPE
Changes in the availability, cost, and reliability of raw materials, resources, and services from suppliers can impact
production costs and product offerings.
CUSTOMER TRENDS
Evolving customer needs, preferences, and buying behaviors can require adjustments to product features, target
audiences, and marketing channels.
TECHNOLOGICAL ADVANCEMENTS SPECIFIC TO THE INDUSTRY
Disruptive technologies or innovations within the industry can create new opportunities or pose challenges to
existing business models.
III. UNFORESEEN EVENTS
NATURAL DISASTERS
Earthquakes, floods, pandemics, and other natural disasters can disrupt operations, damages
infrastructure, and affect supply chains and customer demand.
GEAOPOLITICAL EVENTS
Wars, international tensions, and political instability can disrupt travel, travel, trade, and global
market stability.
ECONOMIC CRISES
Financial crises, recessions, and market crashes can have a significant impact on consumer spending
and business confidence.
THANK YOU
GROUP 4
Baes, Ma. Emmalene R.
Campaner, Rutchel Jean
Lenares, Irvin
Llesol, Nino Christian
Manila, Frederick
