Answer to Question #268226 in Management for ruchi

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

Concerning political impacts, change in the political factors can affect business plans for the following reasons; the constancy of a political system can affect the petition of a particular local market. In the concern of governments view business organizations as a critical vehicle for social reform. Concerning the economic impacts, there are economic forces such as monetary and fiscal policies, interest rate, occupation, inflation rate, demographic changes, political changes, dynamism, safety, and natural tragedies. Such forces have a direct effect on how businesses produce and distribute their products or services. Furthermore, concerning the social issues, social details that involve ethnicities, values, societal trends, consumer mindset, and a society's expectations of business are vital for an organization to survive; the product or service must be wanted; thus, consumer behavior is considered as a separate environmental behavior.