Sales figures do not necessarily indicate how a firm is performing relative to its competitors.

Rather,
changes in sales simply reflect changes in the market size or changes in economic conditions. The hotel
firm’s performance relative to competitors can be measured by the proportion of the market that the firm
is able to capture.

            There can be an increase in market share if they have good Economics of scale, sales growth in
stagnant industry, reputation, good product/service and price elasticity.

                          Some Important Variables in the Societal Environment

Economic Technological Political-Legal Socio-cultural

Globalization of New developments in IT Stability of government E-life, N-generation
Markets
Total national spending Environmental protection Life-style changes
E-commerce for R&D laws
Career expectations
GNP trends Total industry spending Tax laws
for R&D Rate of family formation
Interest rates Special incentives
Focus Consumer activism
Money Supply of technologicalefforts Foreign trade regulations
Growth rate of population
Inflation rates Patent protection Attitudes toward foreign
companies Age distribution of
Unemployment levels New Products population
Laws on hiring and
Wage/price controls New developments in promotion Regional shifts in
technology transfer from
population
Depreciation/ lab to market place Fair trade laws
Appreciation of Life expectancies Birth
Currency Productivity
rates
improvements through
Energy availa-bilityand automation
cost

Disposable and
discretionary income