D2318564 V1-MBA7000- People and Organizations

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Nov 24, 2024

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MBA7000- People and Organizations Student name: Student ID: Reference style: Lecturer name: 1

Table of Contents 1. QES1 ............................................................................................................................................ 2 1.1. Introduction about the company ........................................................................................... 2 1.2. PESTLE analysis .................................................................................................................. 2 1.3. Two PESTLE drivers and their importance .......................................................................... 7 2. QES 2 ........................................................................................................................................... 8 2.1. Organizational changing model ............................................................................................ 8 Reference ....................................................................................................................................... 13 2

1. QES1 1.1. Introduction about the company Hotels Viva is a Spanish hotel chain that comprises hotels geared toward sports enthusiasts, families, and the general public. Though another part of the chain offers service to adults only. This hotel is providing great hospitality for 25 years (Hotels Viva 2023). Formerly this chain had 12 hotels upto the year 2016 then it has been expanded. The primary aim of this chain is to provide ultimate consumer satisfaction with great hospitality, solidarity, and sustainability (Hotels Viva 2023). In the year 2023, this chain has completed its 25 years successfully. This hotel never made anyone unsatisfied as it has a variety of activities available for families, sports lovers, and children as well. Everything in this hotel chain is designed by taking both children and adults into consideration for that people can come for their Holiday vacation and get extra comfort and services. Cycling stations, semi-Olympic pools, massage centers, and much more fun and relaxation are available in this hotel. As per the overview report Signal Hire.com (2023), more than 1000 people are currently working under this hotel chain. As per the (Hotels Viva 2023), the Pascual family is in charge of the hotel management which does value for their employees and clients. Starting from the year 1998, this hotel has now been expanded all over Europe with a variety of other services apart from hotel hospitality like an airport transport facility along with the service like cars and bike rental options for the customers to explore the city and heritage of Europe. 1.2. PESTLE analysis Pestle analysis table External factors (Drivers) Issues relevant to the hotel and business context  Political  As per Trading Economics.com (2023), Spain’s political stability index 3

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is nearly 0.57 which is low and impacts negatively on Hotels Viva  According to Barnett, (2023), the Hotel tax on tourism increases up to €6.25 in 2023.  Employment laws in Spain hotel industry employees are not that satisfactory with minimum wage, overtime work reflects on their performance level and company growth in the future.  As per Competition Policy international.com (2023 ), competition in Spain is governed by the Act 3/2013 shows higher competition impacts on bigger political challenges for Hotels Viva to sustain the hotel business.  Economical  Spain has faced an economic crisis in the year 2009 caused a decrease in expansion opportunities for Hotels Viva  As per ycharts (2023), the rate of interest in Spain has fallen to a 3.40% which reflects on Hotels Viva like other hotels face a weak economy to attract more visitors.  As per the report Trading economics (2023), Spain has faced increasing 4

money supply reflects on Hotels Viva with economic instability.  As per Worlddata.info (2022), in the year 2022, the rate of inflation of the country was nearly 8.39% which impact negatively impacts Hotels Viva  Social  As per Kemp, (2023), the Total population of Spain in the year 2023 is nearly 47.54 million which increases market competition risk for Hotels Viva along with risks like overcrowding, limited availability, increasing operation cost urbanization, overdevelopment, and infrastructural strain.  The quality of education in Spain is low than in other Western European nations which impact on the level of wages, and less payment in the hotel sector leads to lower performance contribution.  Spanish wealth gap is known to be higher than other European countries where this unequal income distribution impacts negatively on hotel industry like Hotels Viva  MacroTrends (2023), states Spain's poverty level in 2019 accounted for 2.80% which comparatively higher than many nations in Europe and this 5

negatively reduce the demand for the Hotels Viva service and accommodation among people to some extent.  Technological  With new inventions in the business which can be used positively by Hotels Viva and other hotels in the nation but due to budget cuts caused by the crisis the chain cannot utilize new inventions up to the limit.  Spanish system for technological upgradation heavily depends on the public sector which makes it susceptible to changes in the economic status of the country and its hospitality industrial unit.  As per Hotels Viva (2023), being a 25- year long Hotel chain service operator, Hotels Viva use their website for booking and secured payment and AI- based consumer support system offer the consumers a smooth and satisfactory experience.  Use of social media for advertisement, and promotion impact on Hotels Viva’s reputation either positively or negatively.  Legal  Competition Act 2013 in Spain prohibited anti-competition practices and it impacts both positively and 6

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negatively on the investors and hotel chain.  Hotels Viva is mandatorily required to follow Royal Decree 1801/2003 law to provide services to the customers which are eligible to the mentioned regulations (The law reviews.co.UK 2023)  Occupational risk prevention law 31/95 in Spain makes sure that Hotels Viva like other hotels and business sector in Spain follows the law to prevent workplace risks (Croner 2023).  Strict employment law with fewer holidays and overtime work at Hotels Viva and other Hotels in the country might affect the employee performance contribution  Environmental  Mountainous and Unique Geographical location of Spain positively impacts Hotels Viva to attract more visitors.  As per Law 38/1972 , Hotels Viva and other hotels in Spain contributes a higher extent of pollution which impacts negatively on its future sustainability (Mondaq 2023)  Hotels Viva like other existing hotels in Spain finds the necessity to follow 7

the zero-carbon emission rule before the year 2045  Hotels Viva also finds the necessity to participate into zero net greenhouse gas emission by the year 2050 1.3. Two PESTLE drivers and their importance Two most important PESTLE drivers of Hotels Viva and their importance to the company’s current and future performance and position are the Political factor and Economic factor. Political driver: The political driver in pestle analysis can be considered as one of the most important drivers for the given context of Hotels Viva and the main reason being that this driver shows the impact of Tax level in the Hotel industry upto €6.25 in 2023. for which the rate of tourism decreases as tourists want to avoid unnecessary higher taxes on hotels and shift to better and cheaper staying options (Barnett, 2023 ). This driver also consists of the impact of employment law on the hotel and other existing business content which shows that the minimum wage for a full-time employee in Spain is nearly 1,125.83 EUR per month and they need to serve 40 hours working in a week with only 21 business holidays which is lower than other parts of Europe (Multiplier 2023 ). The political driver also includes the impact of competition policy in the country on the defense of competition where this law promotes a fair environment for all the competitors in the country’s hotel industry (Competition Policy international.com (2023 ). As per Economics.com (2023), Political as well as Government instability in the country implies a risk for the existing industry as it makes the industry and country less attractive to foreign visitors. Economic driver: The economic driver is another crucial driver for Hotels Viva under PESTLE analysis as it directly shows the impacts of economic factors like the business cycle, rate of inflation, rate of interest, income level, and other relevance. The economic driver includes the impact of economic crises like the 2009 recession, the Covid-19 pandemic, and its direct impact on the slow growth of the hotel industry. Low rate of interest to 3.40% and its impact on the concerned hotel chain and like other hotels face a weak economy to attract more visitors (ycharts 8

2023). Increasing the supply of money in the country also indirectly falls the rate of interest. This economic driver with a low-interest rate is considered to be an important driver to measure Hotels Viva’s current and future performance as it reduces the returns on savings and investment which makes the business less appealing for the potential tourists to seek higher returns on their money. This economic driver is significant to consider here with a higher inflation rate as it weakens the country’s currency level, and disposable income and leads to an increase in the hotel industry cost for the foreign visitors. 2. QES 2 2.1. Organizational changing model McKinsey’s 7S process for change 9

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Figure: McKinsey’s 7S process for change Source: (Expert program management.com 2022) The McKinsey 7S model has been chosen as the change in management model which can be used to assess the company’s alignment and effectiveness across seven different key elements including strategy, system, structure, shared value, skills, staffs, style. Strategy Advantage: According to Harvard Business Review (2017), A clear and focused strategy is the first element of this model which helps differentiate any organization from the existing competitors and allows any particular business to target a particular consumer segment and build a strong brand identity. Disadvantage: Apart from the advantage of this, it can be worked as a disadvantage for any business as overemphasis on any single strategy can rigid the company’s capability to adapt in changing market conditions. 10

Appropriateness : As per (cvent.com), a strategy like occupancy-based pricing can work suitably for different organizations like hotel chains for attracting more visitors with its luxurious and convenient vacation options. Managers and Human resource staff can ensure that all the strategic implication decisions would align with the company’s betterment. Structure: Advantage: As per Tamplin, (2023), a well-defined structure allows for streamlined communication and efficient decision-making like allocation of resources across any particular organization. Disadvantages: a limited form of organizational structure hinders responsiveness and adaptability to market changes leading to slow decision-making. Appropriateness: Present structure of a company can be appropriate to manage multiple areas and also ensure consistency in operations and service delivery. HR staff and managers can implement this element into business practice by encouraging cross- functional collaboration to foster a culture of flexibility and innovation. Systems Advantages: This element includes efficient systems like consumer relationship management, and technology in the retail and hotel industry, and this improves the experience of customers in each industry and streamline the process. Disadvantages: As per Harvard Business Review (2023), Overreliance on technology or system upgradation can lead to a fall in customer engagement in different industries. Appropriateness : Present system and technology are suitable to manage a large size business with a higher number of outlets and a significant number of customers. Shared value Advantages: Shared value works with creating a sense of purpose, strong consumer loyalty, and positive work culture ( Menghwar, and Daood, 2021 ). This can be advantageous for Global Tech firms like Apple, Amazon, and others. 11

Disadvantages: The chances of misalignment of any organization with shared value tend to disengage workers and conflict priorities. Appropriateness: The present shared value of globally known successful firms aligned with its focus on sustainability. HR managers can reinforce these shared values in employee recognition and decision-making. Skills Advantages: As per Advanced Group Services (2020 ), A skilled workforce ensures higher quality service delivery and expands the company like Ocado and Asda’s brand image. Disadvantages: According to Advanced Group Services (2020 ), existing skill gaps among the employees in every organization can hinder operational efficiency and future possibilities. Appropriateness: Present skill set of well-known retail firms in the UK aligns with an industrial focus on premium consumer experiences. Staffs Advantages: As per Chaturvedi, (2022 ), a diversified workforce provides valuable insights and expands the cross-cultural understanding between the staff and the consumers. Disadvantages: Cultural differences and communication challenges can be increased in a diversified workplace which impacts negatively service and product quality. Appropriateness: As per Chaturvedi, (2022 ), a Diversified workforce aligns well with a company’s global clientele. Styles Advantages: As per Kuklenski, (2021 ), a consumer-centric leadership style fosters an affirmative work environment and also encourages employee engagement in every organization. Disadvantages: Overemphasis on consumer satisfaction can neglect other crucial aspects of business operations. Appropriateness: Leadership styles like transformational, and transactional leadership aligns better with the role of a global company’s commitment to a better consumer experience. 12

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HR managers and engaged work professionals can implement the above elements to seek their input and feedback on customers’ requirements. They can facilitate diversity, leadership, and relevant skills to nurture different business opportunities worldwide. 13

Reference Advanced Group Services (2020) The benefits of having a skilled workforce , Advanced Group Services . Available at: https://www.advancedgroupservices.com.au/the-benefits-of-having-a- skilled-workforce/ (Accessed: 20 July 2023). Barnett, H. (2023) Spain tourist tax - how much is tourist tax for Majorca, Benidorm, Barcelona and more , NimbleFins . Available at: https://www.nimblefins.co.uk/Spain-tourist-tax-cost- majorca-barcelona-ibiza-benidorm#nogo (Accessed: 20 July 2023). Chaturvedi, K., 2022. Impact of Cross-Cultural Diversity on Organizational Productivity. International Journal of Research in Engineering, Science and Management , 5 (2), pp.70- 73. https://journal.ijresm.com/index.php/ijresm/article/view/1747 Competition Policy international.com (2023) The spanish competition act: An evaluation and future perspectives , Competition Policy international.com . Available at: https://www.competitionpolicyinternational.com/wp-content/uploads/2019/10/CPI-Guindos.pdf (Accessed: 20 July 2023). Croner (2023) Spain: In-depth , Croner . Available at: https://app.croneri.co.uk/topics/spain/indepth#:~:text=The%20Spanish%20health%20and %20safety,(Prevenci%C3%B3n%20de%20riesgos%20laborales). (Accessed: 20 July 2023). cvent.com (2022) 14 hotel pricing strategies for effective revenue management , 14 Hotel Pricing Strategies for Effective Revenue Management | Cvent Blog . Available at: https://www.cvent.com/en/blog/hospitality/hotel-pricing-strategies#:~:text=3.-,Occupancy %2Dbased%20pricing,revolves%20around%20changing%20occupancy%20levels. (Accessed: 20 July 2023). Expert program management.com (2022) McKinsey 7s framework - strategy training from EPM , expert . Available at: https://expertprogrammanagement.com/2018/11/mckinsey-7s-framework/ (Accessed: 20 July 2023). 14

Harvard Business Review (2017) A better way to map brand strategy , Harvard Business Review . Available at: https://hbr.org/2015/06/a-better-way-to-map-brand-strategy (Accessed: 20 July 2023). Harvard Business Review (2023) Using technology to create a better customer experience , Harvard Business Review . Available at: https://hbr.org/2023/03/using-technology-to-create-a- better-customer-experience (Accessed: 20 July 2023). Hotels Viva (2023) About viva: Hotels viva , About Viva | Hotels VIva . Available at: https://www.hotelsviva.com/en/about-viva/ (Accessed: 20 July 2023). Kemp, S. (2023) Digital 2023: Spain - DataReportal – global digital insights , DataReportal . Available at: https://datareportal.com/reports/digital-2023-spain#:~:text=Spain’s%20population %20in%202023,of%20the%20population%20is%20male. (Accessed: 20 July 2023). Kuklenski, J., 2021. Inclusive Organizational Development. In Diversity and Organizational Development: Impacts and Opportunities (pp. 87-101). Emerald Publishing Limited.https://www.emerald.com/insight/content/doi/10.1108/978-1-83982-592- 720211008/full/html MacroTrends (2023) Spain poverty rate 1980-2023 , MacroTrends . Available at: https://www.macrotrends.net/countries/ESP/spain/poverty-rate (Accessed: 20 July 2023). Menghwar, P.S. and Daood, A., 2021. Creating shared value: A systematic review, synthesis and integrative perspective. International Journal of Management Reviews , 23 (4), pp.466- 485. https://onlinelibrary.wiley.com/doi/abs/10.1111/ijmr.12252 Mondaq (2023) New Spanish air pollution legislation - environmental law - Spain , New Spanish Air Pollution Legislation - Environmental Law - Spain . Available at: https://www.mondaq.com/environmental-law/62838/new-spanish-air-pollution- legislation#:~:text=In%20Spain%2C%20Law%2038%2F1972,both%20fixed%20and%20mobile %20sources. (Accessed: 20 July 2023). Multiplier (2023) Employment act and labor laws in Spain , Multiplier . Available at: https://www.usemultiplier.com/spain/employment-laws (Accessed: 20 July 2023). 15

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Signal Hire.com (2023) Hotels Viva Overview | Signalhire Company profile , Signal Hire.com . Available at: https://www.signalhire.com/companies/hotels-viva (Accessed: 20 July 2023). Tamplin, T. (2023) Organizational structure: Centralized vs decentralized , Finance Strategist . Available at: https://www.financestrategists.com/financial-advisor/organizational- structure/organizational-structure-types/ (Accessed: 20 July 2023). The law reviews.co.UK (2023) The Product Regulation and Liability Review: Spain , The Product Regulation and Liability Review - The Law Reviews . Available at: https://thelawreviews.co.uk/title/the-product-regulation-and-liability-review/spain#:~:text=Royal %20Decree%201801%2F2003,-Under%20Royal%20Decree&text=This%20means%20that %20each%20party,must%20take%20appropriate%20corrective%20measures. (Accessed: 20 July 2023). Trading economics (2023) Spain money supply m2june 2023 data - 1997-2022 historical - july forecast - chart , Spain Money Supply M2 - June 2023 Data - 1997-2022 Historical - July Forecast - Chart . Available at: https://tradingeconomics.com/spain/money-supply-m2 (Accessed: 20 July 2023). Trading economics.com (2023) Spain - political stability and absence of violence/terrorism: Estimate2023 data 2024 Forecast 1996-2021 historical , Spain - Political Stability And Absence Of Violence/Terrorism: Estimate - 2023 Data 2024 Forecast 1996-2021 Historical . Available at: https://tradingeconomics.com/spain/political-stability-and-absence-of-violence-terrorism- estimate-wb-data.html (Accessed: 20 July 2023). Worlddata.info (2022) Inflation rates in Spain , Worlddata.info . Available at: https://www.worlddata.info/europe/spain/inflation-rates.php (Accessed: 20 July 2023). ycharts (2023) Spain long term interest rate (I:SLTIR01) , Spain Long Term Interest Rate . Available at: https://ycharts.com/indicators/spain_long_term_interest_rates#:~:text=Spain %20Long%20Term%20Interest%20Rate%20is%20at%203.40%25%2C%20compared %20to,long%20term%20average%20of%203.24%25. (Accessed: 20 July 2023). 16

D2318564 V1-MBA7000- People and Organizations

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