Answer to Question #265811 in Management for suhas

Question

Lemon Tree, a premium chain of hotels across the country has suffered tremendous losses during this pandemic and have hired you as a consultant in order to analyze the same

a. Can you explain Political, Economic and Social forces which have had an impact on the business?

b.Can you also help them apply the contingency approach of Modern approach in order to face the pandemic effectively?

Answer 1

(a)   The nationwide lockdown and the government's requirement that hotels not overcrowd are affecting the lemon tree hotel line during this epidemic. Hotels are only permitted to admit a limited number of people, not as previously, to preserve the social distance guideline.

 Political forces that affect lemon tree hotel line during this pandemic is the nationwide lockdown and the perseverance of the government for hotels not to overcrowd therefore they are only allowed to admit a certain number but not as before to maintain the social distancing rule.

Economic force that affects Lemon tree line of hotels at this time during pandemic is that due to low customer numbers, the benefits of the business have dropped hugely and they have had to reduce some workers which in turn lead to slow services as the number of employees has reduced.

Social forces that have affected Lemon tree are the fears many people have been contracting the virus. Many people have stopped visiting the hotel premises since hotels always have a lot of traffic of people coming from different places which people fear makes the hotels a hotspot for the contraction of the virus.

(b)  I would help them apply the contingency approach of Modern approach in order to face the pandemic effectively by encouraging the management to consider setting up a dedicated team, that will be reporting to senior management, and take responsibility for assessing and managing the potential impact of Covid-19 and also ensure that the team has representatives from support functions including HR, IT, purchasing, procurement, security and legal and is split across different regions and time zones. In addition, in order to face the pandemic effectively, there is need to introduce policies prohibiting or limiting business travel, particularly to high-risk areas, and consider alternative communication solutions and introduce policies on the self-isolation of staff.