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Group of people working together with a common goal is called organization.

The factors that affect the organization in any way are called environments of the organization.
Environmental factors play a major role in determining an organization's success or failure.
Every organization has to face two environments,

Those factors which affect any organization directly and internally are called internal environment. The
major factors that affect the
internal environment of any organization are,
>pressure groups

Those factors which affect the organization externally are called external environments. It affects the
organizations ability to function properly. The major factors that affect the external environment of an organization are
>political and legal
>demographical factor

A hotel is an organization that provides paid lodging on a short-term basis. It also provides dining facilities to its customers. A hotel
had to face all the factors of internal and external environments. In this assignment we will consider a hotel and explain its factors.


Marriott is a 5 star, top leading international hotel operating in Islamabad, Pakistan. It is providing
excellent services in Pakistan from the last several years. As an organization Marriott also have to face
internal and external environment factors.

A customer is an individual who buy the product and services of any organization. The success of any
organization depends on the customers. The organizations have to fulfill customer needs. For example the
customers for Marriott are of many kinds. People who travel for their business and people who are on
vacations stay in their lodging, people and other organization who book their halls for different ceremony
or conference rooms, and those people who come to the hotel for dining and other facilities like fitness
club, pools and other social activities that they provide etc.
Suppliers are those people who provide raw material to the organization, which is then converted into
finished product and sold to the customer. For example suppliers for Marriott hotel are those people who
provide them raw material like vegetables, fruits and other eatable item, people who provide them with
good kitchen utensils, who provide them people to hire them in their staff, who provide cars for renting,
those who provide lavatory products etc.
Any organization which is a rival against another will be called its competitors, which provide same services and products to the
people at fewer prices. For example the competitors for Marriott in Pakistan are Pear continental hotel, Serena hotels, Avari hotel
which can provide more services to people at fewer prices.
All the organizations are looked after by pressure groups or government authorities to implement their laws and to regulate them.
The organizations have to work in the limits provided by the pressure groups. For instance Marriott hotel is regulated by food
department of government which makes sure that the food they provide is halal and its quality meet it standards. Other
department like environment control, security department is also the pressure group for a hotel.

Globalization means to move business from domestic and national markets to other international markets around
the globe. They work in their home country as well as host country. For example Marriott was established in

In 1927 and now it have opened 74 hotels in different countries. Globalization has had the effect of increasing not
only international trade, but also cultural exchange.

Economic factor play an important role in success of an organization. It is a business cycle, as an economy goes
through expansion and contraction. If an economy of a country is going down, or it is facing inflation the organization
have to face many problems. For example Marriott open its hotel in a poor country, very less people will visit the
hotel, and it would be a failure. Marriot will emphasize for opening its hotel in rich countries where economic
conditions are stable.
Use of technology had been increased for the last several years, now every organization emphasize for using
technology like computer, internet mobiles and other electronic gadgets. Marriott had been using technology for
many years, you can check-in or check-out using internet via their website or pay through your card. Fire alarm
system is installed in every corner of the building. Latest technology is being used now a day.
Demography condition tells the characteristics of the population such age, gender, income, geographical location etc.
For an organization it is important to study the demographical condition of the area before commencing its business.
Marriott is operating in Islamabad, the management knows the interest of people living in Islamabad and other
surrounding areas. It will provide such entertainments and other facilities and what food they like.

mean A set of beliefs, customs, practices and behavior that exists within a population. International
organizations often include an examination of the socio-cultural environment. For instance Marriot as a hotel will organize such
event which are related to our culture such as Eid Milan party etc, not those festivals that are celebrated in other countries like
Halloween, and offer food that which is halal.

Political and legal law and other countries laws influence laws which they can or cannot do. They stop any organization working off
limits. For example Pakistan government and the laws of Islam had banned the use of pig in food. In non-Islamic countries
Marriott provide ham dishes, but in Pakistan if Marriott provide ham dishes it will be banned over here.

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