Hotel and Resort Industry in Egypt Essay Example | Topics and Well Written Essays - 2000 words

Hotel and Resort Industry in Egypt - Essay Example According to Kanter (1995) such an action will not constitute an adequate response. This is so because success is based on an organization’s ability to create, rather than predict the future by developing those products that will literally transform the way the world thinks and view it self and the needs (Kanter 1995:71). Through an environmental analysis will understand how a firm’s competitive position is affected by different forces. More and more companies are engaging in corporate social responsibility reporting, which helps major stakeholders to better understand how the company interacts with its society. (Sacconi, 2004). This essay uses the PESTLE framework to analyse the hotel and resort industry of Egypt. There after, attention is shifted to another analytical model, the SWOT matrix. The PESTEL framework can only be used to look at the future impact of environmental factors and that this impact might be different from the past. Thus, an understanding of how the factors in the above framework may drive change is only a starting point (Johnson et al. 2006).There is a need for an understanding of the key change drivers and Looking at the PESTEL framework shown above one can observe that the hotel and resort industry of Egypt is affected by all the environmental factors in the framework. Under political the industry will be affected by both taxation and social welfare policies. Given the fact that consumer’s income is dependent on government taxation policies, it is evident that take home income might either increase or reduce depending on the taxation policies adopted by the government at anyone time. In addition, government spending is greatly affected by its taxation policy. The political environment of Egypt is very stable, though there are some opposition. Today Egypt is seen as an emerging economy in the Middle East. This has attracted