External Business Environment - Assignment Example

External Business Environment Task 1 Discuss the Structure and Operation of the UK Economy (Size, Features, Philosophy, Regulation, Taxation, Security, Efficiency, and Direction) The economy of the United Kingdom is one of the largest economies in the world, coming sixth among the largest national economies of the world, and coming third within Europe when measured against parameters of nominal GDP. On the other hand, it comes eight among the largest economies of the world when the measurement parameters follow the concept of Purchasing power Parity (PPP), which also puts it second best within Europe. The economy of the United Kingdom combines smaller economies of its constituent states, which are England, Scotland, Wales, as well as Northern Ireland, arranged in order of size in a descending portfolio. The industries dominating the UK economy include the service sector, the automotive sector, and the pharmaceutical industry. The service sector in particular contributes more than three quarters of the country’s GDP, with the booming services within the industry being the financial and aerospace. Being the first county to adopt industrialization, the country boasts of one of the largest globalized economies of the world, and the city of London plays an instrumental role as the business hub for this economic giant. The UK is part of the G8, which is a group of some of the leading economies in the world in terms of economic strength and power. The UK has an elaborate tax system that promotes both internal and foreign investments within the country. So far, the UK boats of being the leader in the following industries across the world, owing to its policies and attractive strategies geared at enticing investors within the country. One, London City is the Hub of financial services in the world, owing to the elaborate banking system adopted by the country, and evidenced by some of the leading multination banking corporations in the world such as the Barclays Bank, and the Standard Chartered Bank. Second, is the Barclays Premier League, adopted after the main sponsor, Barclays Bank, which is the most followed football league in the entire globe. Task 2 Analyze Current Government Economic Policy and its Effect on Business and Services Industries (Focusing on a Major UK Hotel Group) The UK always comes up with economic policies that promote business activities and investments within the country. The hospitality industry plays a major role in the UK economy as it contributes almost 25% of the GDP of the country, comprising of companies such as clubs, hotels, restaurants, leisure outlets and holiday resorts. The intercontinental Hotels and resorts is one of the major hotel groups in the UK, with an international disposition of its chains of hotels and resorts across various countries and cities of the world. As such, as a leading hotel group in the United Kingdom, the economic policies set by the government affect its operations adversely, either positively or negatively. A good example of such a policy is the Bed Tax, introduced in York, Edinburg, and Scotland. The bed tax refers to a tax levy collected by the government for each visitor staying in a hotel. As such, this specific tax affects the costs of rooms in a hotel, as most will pass on the extra cost to their customers in order to contain the operational costs. By passing on the taxes to the visitors lodging in hotel rooms, the rooms become more expensive and almost unaffordable for certain customers, especially the middle and lower class who might want to be guests in the hotels. This in turn reduces the booking within these hotels, because the customers find the services offered by these hotels expensive, and as such, opt for cheaper hotels. The Intercontinental Group of Hotels losses greatly because of this since the taxes makes their services more expensive and unaffordable to some of its customers. Task 3 Discuss Income, Wealth, Employment and Occupational Distribution in Relation to the Provision of Business and Services Operations (Consider Who the Users of the Hospitality Industry’s Services are and, who are the Providers, Who are the Patrons, Who are the Workers) As mentioned earlier, the hospitality industry is among the leading sectors in the UK economy, contributing to almost one quarter of the country’s economy. The industry generates a considerable volume of wealth by providing the market with the necessary services such as food and drinks by restaurants, rooms, as well as holiday inns by bigger hotels. However, it is imperative to note that most of the clients making use of the services provided by the hospitality industry are high-end clients, and in some cases the middle class society. This is because they have a substantial income through which they can spent on hotels and related services, as opposed to low-income earners who have little to spare on such luxuries. As such, the hotels industry is a clear expose of the parameters of income distribution within the United Kingdom. Most customers of the hospitality industry, as mentioned earlier, are high-end customers, as evidenced by most of the clients who book into the Intercontinental Hotels and Resorts for their services. The industry providers include hoteliers, restaurants, clubs, as well as leisure resorts whose main line of business is to provide services and entertain customers in exchange for a little fee for luxury and fun away from home. These industry players enable the provision of the right services for its customers, depending on the tastes and preferences, as well as the choices made by each client. The patrons of this industry ensure that the services provided conform to the highest standards set by the governing bodies to oversee and regulate the industry, such as the environmental concerns, safety requirements, and hygiene standards. Task 4 Assess the Demographic Trends that Influence the Employment Patterns in the Hospitality Industry The hospitality industry provides a wide range of employment opportunities to the citizens in the United Kingdom. It requires both skilled and unskilled professionals to work in the various departments of the industry, such as management, accounting, quality and control, kitchen staff and cookery, waiting services, promotion and marketing, as well as common cleaners and pantry staff. As such, it is also imperative to consider the demographic trends that influence the employment patterns of the hospitality industry. This is because certain genders work best in particular areas better than the other genders. This is despite the diversity and equality concepts maintained in the hospitality industry, whereby there is no discrimination of persons in terms of genders or sex. The kitchen department, where all the chefs and cooking staff are, is mostly the preserve of the male staff, despite the traditional settings, which require women to be in charge of the kitchen. In fact, some of the best chef’s in the world are men. The waiting staffs, on the other hand, are mainly female because they have an attractive ambiance, and as such, have a high selling power to the customers as opposed to the men. Most butlers in the hospitality industry are men, majorly due to the strength and power required to undertake the job. The administrative departments of the hospitality industry is a combination of both male and female staff, because this uses more of their intellectual staff that their physique, and depends on the professionalism of an individual. Task 5 Analyze the Social Structures of People Employed in a Major UK Hotel Group A social structure refers to the organized pattern of social institutions as well as social relationships that come together to compose a society. Most social structures are not always visible to a common and untrained observer. Nevertheless, these social structures are always present and have a great influence on all the dimensions of human experience within the society. The social structures of people employed in the Hotel industry, such as the Intercontinental Hotels and Resorts, also follows the laid out platforms of the social structures. One very evident social structure of the people employed in this leading hotel chain is the social class. Social class helps in shaping the access that different groups have to the resources within a society, as well as shape the numerous interactions that these people might have with one another. The social class, as a social structure, helps to guide and shape the human behavior at all levels of the organization. In a hotel setting such as that of the Intercontinental Hotels and Resorts, the social levels include the owners of the hotel, the executive staff, the middle level management staff, the lower level management staff, the supervisors, the workers, the support staff or subordinate staff, and the volunteers and interns who offer their services, sometimes for free, to these hotels. People employed in each of the mentioned categories relate differently with one another, with a higher-level social class commanding more respect and attention as opposed to the lower level group of workers or subordinate staff. The difference is also in terms of job description and compensation levels, whereby the high level social class earns more for doing less, mostly paper work, such as the Chief Executive Officer of the Hotel, whilst the lower level social class earns less for doing more, such as the hotel butlers. The butlers have to carry customers’ luggage all day either to or from their hotel rooms for a little tip. Task 6 Discuss the Structure, Operations and Influence of Local Government on a Major UK Hotel Group. The hotels operate in a given setting or location governed by a given structure of government. As such, a local government has a significant level of influence in the operations of a Hotel Group within its jurisdiction. This could be through the by-laws, rules and regulations that it sets to provide a sustainable business environment for all investors within the locality, inclusive of the hotel industry. These by laws may come in relation to the hygiene and cleanliness standards that these hotels have to maintain in serving its customers, the food and drinks that it offers to its customers, the safety precautions taken by the hotel, such as fire emergency preparedness. Most local government requires that the hotels put up fire extinguishers at all level of the hotel, especially in risky areas such as the kitchen and rooms. This will enable a quicker intervention to fire accidents and in return reduce the amount of loss suffered from such events. The city of London is home to some of the biggest names in the hotel industry. As the governing structure within the locality, the council of London provides these hoteliers with the prerequisites that they have to abide in before getting a license to operate as hotels within the city. These requirements touch on the furnishing of the hotels, usually with fireproof materials, the construction of the hotel, usually one that will accommodate both abled as well as the physically challenged patrons that may seek the services of the hotels, and in some cases implement the bed tax for every visitor staying in a hotel room. Task 7 Evaluate the Role and Influence of the EU, and its Impact on Business and Services Industries The European Union is an economic body that brings together various countries, about twenty-eight, in Europe to form an economic alliance that promotes business activities and development. As such, the formation of the EU helps in opening up more opportunities and markets for the businesses and companies operating within the economic region, through the introduction of various economic boosts such as the single currency platform, the euro, elimination of travel and border controls, as well as reduction of interest rates and tariffs for trade across the region. This has a great influence on the performance of various business and services industries, especially the hospitality industry. The EU opens a greater and expansive market for these businesses to attend to as opposed to their local or domestic markets. The open market created by the EU enables the hospitality industry in the United Kingdom to entertain guests and visitors from across Europe. This is especially considering the elimination of travel restrictions against movements of people within the economic region. This in turn increases the customer volume of the hospitality industry, especially for those who longed to visit the city of London and had difficulties in securing a Visa. The business and service industries operating across Europe have a wide range of opportunities brought about by the formation of the European Union, and the signing of the agreement treaties by the member countries to promote and enhance both trading and economic activities, majorly through eliminating the barriers to trade. Task 8 Assess the Role of Pressure Groups and Their Political Influence in Relation to National and Local Issues in Regards to Hospitality Industry Pressure groups assert a significant level of influence, especially politically, to certain national and local issues that in some cases have a significant impact in the hospitality industry. Through their effect and influence, these pressure groups have the local and national governments form policies, rules and regulations that conform to their demands. One of the major political influences that these pressure groups assert to the hospitality industry is the adoption of eco-tourism. Eco-tourism refers to the practice of tourism activities that are friendly to the environment, and as such, lead to the prevention and conservation of the environment from pollution, or any damaging factors. As such, the hospitality industry in the United Kingdom also has to adopt environment friendly practices in order to confirm with the demands of these pressure groups, or risk missing their market share and control. This includes adoption of green practices such as using solar power to heat their water instead of diesel power, installing energy saving bulbs in all their rooms, promoting green tourism through eco-tourism practices, harvesting rainwater, as well as recycling used water in their hotel rooms. This promotes the conservation of the environment by reducing the rate of production of toxins and other pollutants to the environment, as well as reducing global warming, which is a major catastrophe in the modern world economy. Furthermore, the adoption of green practices attract more customers to a service provider in the hospitality industry, thereby increasing its market share and sales volume, as opposed to the industry players who still operate in the conventional manner. Task 9 Analyze the Legal Framework within the UK, Identifying the Main Differences between the English and Scottish Systems The legal framework across the United Kingdom is characterized by the English law system, which operates across England, Wales and Northern Ireland, as well as the Scottish law system, which applies across the land of Scotland. The country does not have a single unifying legal system because of it formed after the amalgamation of four independent states of Ireland, England, Scotland, and Wales, all of which had their own independent legal systems. The English Law is the legal system administered in courts across Wales and England ruling on both criminal and civil matters. The English law bases in the principles of common law thereby being renowned for being the mother of common law. It has its own legal doctrines that are distinct from the civil law legal systems operational from as early as 1189. Furthermore, the law has no major codification or being subject to statue. As such, the development of the law is by judges in courts who apply the statue, common sense, and precedent in ruling the cases presented before them. This enables them to provide explanatory judgments that have relevant legal principles, later reported and binding to future cases that are of a similar nature, considering the concept of stare decisis. On the other hand, the Scottish Law follows a unique legal system based on ancient Roman law. This legal system features various elements of common law with medieval sources considering its grounding on uncodified civil law that dates back to as early as the Corpus Juris Civilis does. Consequently, the Scottish legal system is a mixed or pluralistic legal system similar to the legal system operational in South Africa. The major difference, as such, in the English and Scottish legal system is their basic principles and source. Task 10 Evaluate the UK and EU Legislative Process as it affects a Major UK Hotel Group’s Business and Services at Both Local and National Level The UK as well as the EU legislative processes has a significant effect on the business and services operations of the major hotel groups in the United Kingdom, especially on both the local and the national level. A hotel group operates within a small region in which its physical location is, but still has to follow the national laws of the country in which it operates. The legislative process of both the UK and EU work with regard to the provision of a conducive business environment for the investors within the economy, as well as ensuring that the players in the industry have receive the best quality services from these hoteliers. For instance, the adoption of the green hotels systems by both EU and UK governments was very fundamental in changing the shape of hotel services within the region. Green hotels practices promotes the adoption of conservatory structures in the systems and operations of the hotels, such as through adoption of green energy, through the practice of eco-tourism, as hotels are major holiday destinations of tourists, and the maintenance of a safe and clean environment for the future. This is by reducing the production of green house gases that lead to global warming that has adverse effects on both the economy as well as the environment of the entire region. As such, it is imperative to note that the legislative processes of both the UK and the EU have a significant effect on the operations of a major hotel group within the UK, thereby requiring the management of these hotels to be cognizant of the fact that these legal processes have an effect on their operation. Task 11 Assess the Different types and Characteristics of Business that Operate Within the Business and Services with a Focus on the Hospitality Sector. The hospitality sector entertains a wide variety of businesses, which have diverse characteristics. These include restaurants, major hotels multinational corporations, clubs, leisure resorts and entertainment centers. The hotels are the industry leaders with most of them serving a large portion of the population, and having a solid and structured platform in which they operate. This includes having a brand name, an online platform, as well as a services code and chatter in which they adhere to in order to provide its customers with the highest level of services. Some of the major characteristics of the hotels are the online platform, whereby it enables the clients to check out their services, make bookings and reservations for their stay at the hotel, as well as make online payments for their services. In addition, the hotel uses the platform to promote and create awareness of its existence within the market. The other players are the restaurants, characterized by a chain or franchise of them. This enables the restaurants to have presence across different locations in the country as well as in other overseas subsidiaries. One of the leading groups of restaurant brands is Tesco, which has over one thousand restaurants and coffee shops across the world. On the other hand, there are leisure sports and clubs whose main aim is to entertain visitors and tourists that check on their services. These provide the visitors with appropriate relaxation and leisure activities to free them of their life stresses in exchange for a fee. For instance, clubs play music for revelers who hang out to dance and have fun, share meals and drinks, as well as meet up with their friends and colleagues. Task 12 Discuss the Legal Processes Necessary for Formation and Dissolution of a Registered Company. A registered company is one that has perpetual existence, from its ownership, and as such, operates as a legal entity that can own and dispose property, as well as sue and be sued in the court of law. Formation of such a legal entity requires a disciplined follow up of the set procedures and structures by the companies Act of the United Kingdom. To begin with, the promoters of the company have to prepare two important documents, the Memorandum of Association, and the Articles of Association, which they present to the registrar of companies for consideration of registration. They also have to provide a declaration of directors, as well as the shareholders equity before their registration process can commence, after making an appropriate choice of name ending with the “limited” suffix showing the limited liability of the company. On the other hand, dissolution of the company takes various forms depending on the structure and purpose of the company. A company can dissolve when a court orders it to do so, majorly because of its failure to fulfill its legal obligations, such as failure to settle its creditors. A company can also dissolve through a consensus by shareholders to stop operating the company and liquidate it. They present a legal petition in court requesting to proceed with dissolution procedures in the company. Lastly, the company can also dissolve when it finishes its mandate, or when its period of existence expires. This is majorly the case for companies that form up in order to undertake a given periodic task, which after completion do not have any more reason to continue existing, and as such, have to wind up their operations. A good example of such a periodic company is the Olympic organization committees formed to plan and organize the Olympics held in London, and later dissolved after the Olympics ended. Task 13 Analyze the Structure and Processes that Determine the Responsibilities and Control within a Registered Company. The Articles of Association stipulates the internal operations and controls within a registered company. It designs the structure of the company, sets the roles and responsibilities of each member of the organization, as well as cut out the span of control and operations of each member of the organization. It also sets up the codes of conduct within the organization, the codes of ethics, as well as other rules and organizational culture that discerns the organization as a unique entity from other market players. The management of the company has to follow the set structure of operations through the articles of association, such as the directors, the executive team, the management team, the supervisors, as well as the ordinary workers and subordinate staff. Each person within the organization has a specific duty and responsibility to fulfill, and this ensures the continuous operations of the company. Work Cited Campbell, David and Craig Tom. Organisations and the Business Environment. London: Routledge, 2012. Print. Read More