External Environmental Analysis of London City Hall
In order for the business to properly excel, there are needs to come up with a perfect work map that envelops all the major factors of operations. A business situated in attractive environment attract more customers and also is likely to sell to the investors. London City Hall’s is one of the areas where many people visit when they go to London meaning that the area is attracting many people more so the new investors and the customers. It is however, important to carry out the analysis of the external environment to establish the factors that are likely to impact on the operations of the organization (Bowdin et al 2006). An external environment of a particular business consists of all outside factors that affect the functioning of a particular business. The business must effectively react to these factors affecting it to maintain its normal flow of operations. However, the business itself does nit have impact on these factors. Such external environmental factors affecting London City Hall’s operation are Political & Legal factors (COVID 19, Brexit and GDPR), Economic factors (Exchange rates, Interest rates and Unemployment), social factors (Consumer trends, Population demographic) and Environmental factors (Sustainability) (Bowdin et al 2006).
Political and Legal Factors
Political and legal factors are those that are influenced by the government towards a particular business. Political factors are are led by the policy of the government while legal factors are those a particular business must compile with for it to operate. Such Political & Legal factors affecting London City Hall operation are COVID 19 and the introduction of the Brexit and GDPR policies in London. COVID 19 is one of the most deadly pandemics the world has ever dealt with. The virus has highly impacted negatively to several of a particular nation (Bowdin et al 2006). First, London City Hall is termed as a historical Centre and currently the Landmark of the great London. It currently accommodates the office of the Mayor, various hotels, business and acts as a tourist attraction Centre for both local and foreign tourists. Before the deadly virus struck, many tourists across the world came in just to have a glimpse on the uniquely built structure. Just from its magnificent appearance of its glass made walls, suspended spiral staircase and an amazing view of London from its top floor from the viewing deck, a number of tourists were able to come to enjoy the building (Bowdin et al 2006). The fear of people contracting this deadly virus and it spreading amongst them has made various nations put their countries and states on lockdown. As a result, the tourists getting in to London to visit the great London City Hall has largely reduced over the past two years since the virus struck. Revenue from these foreign tourists has been lost as only a few local tourists visit the place. A number of large companies in London also used the London City Hall in conducting their meeting conferences. Due to the government’s restriction to avoid gatherings, these conferences have had to be reduced to help curb in the spreading of the virus. In the process, revenue that was earned from these conferences has also largely reduced affecting its operation due to threats of a financial crisis.
Bretix is termed as when the United Kingdom withdrew from the European Union (EU) and the European Atomic Energy Community. The Bretix policy has affected several workers who had either been employed seasonally or permanently in the London City Hall. This is because business such as foreign hotels wishing to have their branch at London City Hall will have to go through detailed bureaucratic procedures so as to earn money in the United Kingdom (Dowson Bassett, 2015). The local businesses within the facility may also have to incur large costs in hiring foreign staff. This has largely discouraged such foreign and local business for instance hotel companies from establishing their branches in London City Hall. As a result its exposure in its outside population has also reduced.
The General Data Protection Regulation is a legal substructure that outlines guidelines for collecting and processing of personal data from people who reside in the European Union (EU). The GDPR has given more powers to customers, prospects, contractors and employees regarding their personal data and information from such organizations that gather and use their data for monetary gain (Dowson Bassett, 2015). As a result revenue that was initially collected from such information and data by organizations in the London City Hall, has reduced as the employers have the obligation to be responsible on how they collect and use these personal data. Its day to day operation has also been affected due to a reduction of finances they used to obtain from this information and data.
Environmental factors
Another important factor to consider is the environmental factor which focuses on the sustainability. The aspect of sustainability well explains of London City Hall has been positively impacted from the environmental factors. Sustainability is termed as meeting our own wants without affecting the ability of others in the future to also meet their wants. It explains how we can conduct our businesses normally without negatively impacting the surrounding environment (Natural Resources, the workforce available and the Community at large) (Dowson Bassett, 2015). Years back, London City Hall has been emitting large tones of carbon just like other similar buildings but the percentage has drastically reduced of late. This is because London City Hall has maintained high sustainability levels. With the help of the Office of the Mayor that is in it, they have been able to ensure it is a carbon-free facility. For instance, the building has installed solar photovoltaic panels that generate zero carbon emissions. This has protected the workforce in the facility, customers coming in for conferences and also its surrounding environment. The employees are guaranteed good health as they work hence a smooth and efficient conduct of operations. This has increased the revenue earned from businesses within the facility and tourists that come in to see it (Dowson Bassett, 2015). Boiler Optimization in the facility has also ensured no excess heat is generated that what is needed. The workforce are thus guaranteed comfort ability as they conduct their duties and customers as they are being given different services. As the business run smoothly within the business more customers come in and revenue is earned thus impacting it negatively.
Social Factors
These are those factors the spending and habits of consumers. Such factors include lifestyle, taste and preferences of these consumers. Consumer trend is termed as the survey of consumer’s habits toward a particular product or goods. They analyze what they buy, the amount of money they spend, how they use a particular product and their interaction with a given brand. It is crystal clear that COVID 19 has had effects on the economy of different nations and in turn impacted the consumer trends in these countries (Evans, 2018). London City Hall being amongst the historical cites in London, has hardly received foreign and local tourists who come in to see the area and visit the hotels. This is because the pandemic has greatly affected the Economy of various nations making life more expenses. People now have to shift the priorities to primary essentials other touring and visiting hotels. They have to cope with the expensive lifestyle the pandemic has brought and put their secondary wants on hold. For instance, prices of some primary wants shooting high due to the economy being affected (Evans, 2018). This has reduced the revenue earned from this sector as business like the hotels within the London City Hall, have been highly affected affecting its operation.
Population Demographic is another social factor that has impacted London City Hall in the course of its events. It is termed as the statistical data about the details and characteristics of a population. This may include gender, age and income of the people within the population. Due to the ongoing pandemic, high mortality rates has been experienced. Many have died of the virus affecting the population within London City Hall and even question the future population. A number of those who passed on were workforce within different departments in the facility hence a reduction in the workforce’s efficiency and at the end affecting the businesses. Revenue earned from these businesses reduce affecting the course of events in London City Hall (Evans, 2018). The surrounding population where their customers come from has also been struck by a high mortality rate that could exceed in the future if the virus does not stop spreading. As a result, the interest rate remains at equilibrium within the London City Hall due to lack of customers for businesses within the facility and the workforce to smoothly run its day to day activities.
Recommendation: Differentiation from Competitors USP
Differentiation from competitors is termed as the ability to be distinct amongst other related business. This is the strategy I would recommend the London City Hall to use to help develop its sales and marketing strategies. First they should be able to distinct themselves from other related buildings by putting in more budget fir success. Enough resources should put in place to help curb on the current pandemic. For instance, the may put more capital in installing sanitizers and making small posters that create COVID 19 awareness within the facility. They may also hire health expertise to help advice them on how they should restructure their operation to adjust with the ongoing pandemic and still make revenue (Evans, 2018). They may also be distinct by upholding ideal customer profile and personal identity that make them profitable and enjoyable to work with. This will create a good customer relations with the businesses within the facility benefiting from their success financially. This can be also be done by upholding the GDPR policy. Another method is through confirming its differentiators. They should make sure that they are clear on what differentiates them from their competitors. This can be done through talking with to their customers and find out why they choose to associate with them and what could make them switch to their competitors.
Task 2: Identify a Solution to one Specific Barrier
One of the problem identifies is the social problem as a factor that may impact on the operations of the organization. Under the social barrier as an issue there are a number of problem which can be addressed. One of the problem is the change in the consumer habit and trends. As an areas which was majorly for the tourists, there is a trend that the current customers are depicting. Some want new things since the building has been in existence for a long time. Some have just lost the taste of the place. This leave the areas to only attract customers from different countries which are also finding it difficult to visit the country due to the current conditions. There is therefore an urgent need to solve these problems which may consist of the renovating the place in order to include a number of current technologies and a number of beautiful things which are required by the current customers. Because the place has actually loss the customer taste. It is also important that marketing is done properly to help the customers to gain more and need to visit the place. The enhancements of the place will help even attract the local customers who are already getting detached to come back. For example during this period of Covid-19 only few people can visit because there are no foreigners. Likewise, it is important that the prices charged be reduced to help attract even those who are in lower social classes to visit the place. These solutions if placed to use will see the place improving in the functionality.
References
Bowdin et al (2006). Events Management. 2nd Edition. Oxford: Butterworth Heinemann
City Hall (2020). London’s Living Room at City Hall.http://www.londonslivingroom.co.uk/ [Accessed on 7 July 2020)
Dowson, R; Bassett, D. (2015). Event Planning and Management: A Practical Handbook for PR and Events Professionals. London: Kogan Page Ltd
Evans, N. (2015). Strategic Management for Tourism, Hospitality and Events. 2ndedition. Abingdon: Routledge
Nolan (2018). Working with Venues for Events: A Practical Guide. Oxon. RoutledgeWood (2015). Key concepts in Hospitality Management. London. Sage Publications
