An organization’s success depends greatly on internal and external factors. By implementing strategies that can manipulate these factors, companies can influence these factors to their advantage. Macro environment factors are factors operating in an organization’s external environment. This environment is dynamic and changing and holds both threats and opportunities for the organization. They affect the overall operation of the organization and organizations cannot control them but manage their impact. The acronym PESTEL stands Political, Economic, Social, Technological, Environmental and Legal. These are the factors that make up the macro environment. Managers can use this analytical tool to identify how different environmental factors may influence business performance now and in the future.
Organization selected is LIAT-Leeward Island Air Transport. (Tourism Industry)
LIAT is an airline head-quartered on the grounds of the V.C Bird International Airport in Antigua. It operates high frequency inter – island scheduled services servicing 21 destinations in the Caribbean. The airline’s main base is V.C International Airport in Antigua, with bases in Barbados and Trinidad and Tobago.
Air travel remains a large and growing industry .It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries.
Question 1 looks at how factors affect this airline company using the PESTEL framework.
Political- Political factors include government and their activities. There are rules and regulations that customers and their organization have to abide by. Politics also affect the stability of the market place. If people are unhappy with the government’s actions they may protest through strikes, marches, riots etc. This can disrupt business activity. If riots break out in St. Lucia for whatever reasons, then LIAT may have to suspend flights there...