The paper 'The Enchanted Vineyard Bed and Breakfast Hospitality Business' is a perfect example of a business term paper. The Enchanted Vineyard Bed and Breakfast hospitality business are found in Sydney. It is highly known for the vast services it offers to the public. It is located in a valley that is well known for its beauty. The Enchanted Vineyard bed and breakfast is a sole proprietorship business managed by Missy Stewart. She has devoted all her lifetime resources to run this business. She uses her newly renovated home to settle down her ambitions in providing hospitality services through the Enchanted Vineyard bed and breakfast. Despite all the favorable conditions to the location of the bed and breakfast business, Missy Stewart is faced up with other factors that are beyond her reach.
These factors are to be considered in order for the business to prosper. Current External Environmental Factors Current external environmental factors are conditions, events, or entities that surround business practices to maximize risks and opportunities. These external factors I have enumerated them affect the Enchanted Vineyard bed and breakfast hospitality industry. In order to determine these factors, we engage the use of PESTEL analysis which describes all environmental factors affecting business performance.
These factors are: Political factors. These are factors that arise from government policy. The political nature of a government influences the performance of business activities either positively or negatively. These government processes include trade restrictions, tax policies and political stability (Williamson, (2010). The Enchanted Vineyard bed and breakfast enjoy a lot of progress during stable political conditions in Sydney. A stable country provides a good environment to exercise business activities. Political instability on the other hand will render business activities less productive.
Business activities in Sydney will enjoy better working zones only if there will be political stability in the country. Trade restrictions are also political concerns that affect business practices. Businesses are guided with this principle where they are to conduct their activities in a certain location and under certain jurisdiction of their services. They are limited to offering the stated service only registered by the relevant bodies. In breach of this policy, business owners are to face the law. Lastly, there are tax policies in which all business organizations are to pay taxes to the government from what they earn.
Failure in paying taxes, serious consequences including imprisonment business owners will be subjected to. It is therefore clear that the Enchanted Vineyard bed and breakfast business should study correctly the political factors that are to affect the service delivery from its business. Better political factors in Sydney will give good conditions for business development while bad political factors will be a hindrance to business prosperity. Economic factors. Economic factors are concerns that enable a business to impact decisions on how the business will operate.
Economic factors include inflation rates, exchange rates, interest rates, and economic growth. The inflation rate is the increase in the price of commodities over a certain period of time. The inflation process hinders business performance and development since a lot of money will be used yet they hold less value. Businesses will not gain considerable profit during this period of inflation. Exchange rates of a country's currency also affect business performances (Richard, 2013). When the currency rates appreciate, business units gain profits.
And the currency depreciates they suffer losses. The exchange rate is a determinant of business progress. Also, the interest rate is an economical factor that affects business growth and development. When interest rates increase business owner suffers loses since they have to put up with the increased level of standards. When there is a reduction in interest rates many of the business owners will be relieved and they will find the value of their money and develop their business organizations. Economic growth also depicts the level of the current economy.
A country that has a good economy is always good to place to establish a business. Businesses that are carried out in countries that have a good economy are likely to prosper compared to those in a poor economy (Cooms, 2008). The establishment of Vineyard bed and breakfast in Sydney where the economy is better, it will prosper and develop much more. Missy Stewart will enjoy the profit from this hospitality business when she observes economic factors.
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