Answer to Question #270970 in Management for raj

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 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. Political- Any laws imposed by local, state or federal government such as amendments in taxes or increase in the cost of production in food or essential items vital in the hotel industry can affect the sector substantially.

Economic- Any slight change or variation in the regional or global economic environment such as the recent disruption of the economy by Covid-19 pandemic can increase or decrease people's spending in the hospitality sector hence determining the performance of the industry.

Social- Any change in customers, communities or families attitudes or behaviors for instance changes towards wellness can affect the hotel industry.

b. The Covid--19 pandemic has irrefutably caused tremendous challenges to the hotel industry. Consequently, consumers are more cautious about their health hence increased demand for higher standards of hygiene, health and sanitation. Hence, Lemon Tree ought to adopt innovative ways to mitigate the losses incurred following the closure of most hotels and possible future losses in case of another pandemic. They can do this by establishing measures that promote less face-to-face interaction with consumers by digitizing check-ins, dedicating different facilities for different clusters of customers like families, investing robot butlers tp deliver crucial items like newspapers to guests, and offering exclusive BnBs in different towns.