Evaluating Impact of External Environment on Corporate Operations in England - Essay Example

Evaluating Impact of External Environment on Corporate Operations in England AFFILIATION: Contents Introduction 3 Current Economic Policies and Their Impact on Financial Performance of the England 4 Present Situation of Hospitality Industry in the England 5 Demographic Influences on Employment in Hospitality Industry 6 Social Background of Employees working in the English Hospitality Industry 6 Governmental Influence of the English Hospitality Industry 7 European Union’s Impact on Hospitality Industry 8 Pressure Groups in Hospitality Industry 9 Comparison of Scots and the English Law 9 European Union’s Legislative Process and its Influence on the English Economy 10 Analysing Operations of Different Operators in the Hospitality Industry 10 Formation of Companies in England 11 The Process of Incorporation 11 Conclusion 12 References 13 Evaluating Impact of External Environment on Corporate Operations in England Introduction The English economy is no doubt one of the most important ones in the global economy. However, it has lost considerable amount of fiscal lead in the international arena because of it made some irrational choices lately. The economy of England is the sixth largest one in the world whereas; it is the third largest in the Europe. The services sector of the country overpowers other areas of industrialisation in the country by producing 78% of the total GDP. The banking sector of the nation creates major highlight, and London is the most powerful center of financial services in the world. The national aerospace industry is already considered as the second largest one in the world. The country is also housing internationally renowned pharmaceutical activities as well. The overall level of GDP is calculated to be more than 2.6 trillion in US dollars, and we can ascertain the degree of financial prosperity in the country by observing the abovementioned figure. The current and prevalent direction of the economy is going to incorporate more services in the near future, but lack of pure industrial works is hindering the economy from growing significantly in the past few years (Anishenko, 2014). The foreign investors do not find anything valuable in the local economic system, and therefore, they least value the research and development efforts of the educational sector. The research and development that England is presently producing is theoretical in nature, and therefore, the investors have to convert it into practical knowledge on their own. The British society does not have a profound capability to industrialise itself because of lacking financial productivity. The financial services are crunching profitability by swapping currencies, and charging interest rates that have nothing to do with the consumer needs of the masses (Clemons, et al., 2002). Additionally, the economy is working towards becoming a service-based one without exploiting its entire industrial potential. The trend of industrialisation did not reach its intended mark because the political government decided to stand against the tide of globalisation in the latest decades. The English products and services have to compete with those of all other nations. The products of China and Japan defeated the English ones on the grounds of cost leadership. The English economic community has to take a turnaround regarding their geopolitical standpoint in order to let globalisation play a powerful role in terms of writing its destiny. Current Economic Policies and Their Impact on Financial Performance of the England The government is working to incorporate more of the services into the economy so that they can fight the battle against globalisation. The English citizens have a flaw in their thinking that makes them believe that they are socially, economically, racially, and politically stronger than other national systems in the world of economics (Ferreira, et al., 2005). The English refused to join European Union as well because they considered the word of their closest ally in the world that is America in this regard. The close knottiness of Europe under the umbrella of EU created more problems for already troubled economic system in the world. The government has to part with the EU in order to ensure survival in the long-run perspective. The only kindle of hope for the country lies in the form and shape of FDI. The English government has to create confidence, and trust in the investors so that they can take a decision of investing in the local market. The aerospace industry of the England offers great level of energy that the country can use in order to revitalize the process of economic growth. The figures are optimistically high, but they are not communicating strong sense of development to the investors, and therefore, they are reluctant in terms of investing in the England based businesses. The investors also have other investment options in China that offer them with great levels of return. They have significant level of creditability to their names as well. In this way, the English economy will live in turmoil in upcoming years because the global competition will overwhelm them. The current technological outfit of the globe will grow outdated in a few years and the nations will move in to get their hands on state of the art developments. By then, the English researchers would have generated conceptual products and services (Goes & Park, 1997). In a few years, the English nation will resurface as technological leaders of the world. In present situation, they have to keep on investing into technologies of various sorts so that they can develop arsenal for a futuristic economic battle. The hospitality and tourism industries hold the key to economic independence of the nation as well. Present Situation of Hospitality Industry in the England The industry of tourism and hotels form a formidable section of the English economy because more than forty million tourists came to visit the country in past year alone, and therefore, the market of tourism developed into a leading generator of foreign exchange for the nation as well. More than 80% of the traffic had an interest in visiting the London because it is the most valuable city in the world as far as tourism is concerned. The government developed a keen interest in the area of tourism lately, and it has taken some bold steps in terms of strengthening the market as well. The government has created alliances and joint ventures with the private partners in order to drive down the consumer costs of the industry. The government has also provided subsidies to local providers in order to facilitate expansion of tourism in the country. The major patron of the English hospitality industry is by far the government, and it is using students, foreigners, and part-timers as workers in the industry so that the costs of the market can be kept under control (OFarrell & Moffat, 1995). The field of hospitality is a central piece towards the latest economic theory of the English community. The ethical considerations are higher in this regard because it causes the students to neglect their studies in order to make an extra buck. The hospitality industry will create more than two million jobs in the year of 2015. Demographic Influences on Employment in Hospitality Industry The young population of London is working as the major percentage of workforce in the country of the England. The hospitality industry does not need intensive education in order to engage as a worker, and therefore, the students find it rather fulfilling in terms of generating efficient income. The level of income offered is reasonable in nature, but the abovementioned trend is blessing the youngsters with short-term benefits only. They have to invest themselves in order to attain long-term educational goals and objectives because this line of course will help them regarding development into middle and top level managers in due time. Significant number of youth is migrating to national capital in order to find jobs, and because of this reason, the city is developing into corporate center as far as hospitality industry is concerned in the country (Stephenson, 2014). The government needs to create more hotels in order to create employment in distant parts of the country. The geographical locations of Nottingham and other adjacent areas required to be promoted as tourist spots in order to expand the reach of the industry in the local economy. The political leadership has to follow the rules and regulations of social entrepreneurship so that social considerations should be served during the completion of corporate goals as well. Social Background of Employees working in the English Hospitality Industry As mentioned earlier that the students are working as employees in the industry because they need to generate quick buck as soon as possible. The people with criminal record are also engaged in the profession because it is not skill intensive in nature. The tourism is promoting into notable sector of the economy because English fiscal system is down in comparison to other national mechanisms in the region. The tour to England does not involve higher costs, and the country is having beautiful sceneries in the world so it is developing into powerful house of the country that possess an economic outlook. The God has been fulfilling his promise of enduring the survival of humanity (Ferreira, et al., 2005). He created such a fiscal climate in the nation that created employment opportunities for even the most suppressed sections of the society. The educational world of the country does not have the ability and power to create highly sophisticated professionals due to lack of financial power. The entire country is operating as hub for services of various kinds, and in the given scenario, it is the best economic strategy to follow for the national system that is working in order to fight globalisation. The services and entertainment industry is going to create the historical nature of success. However, the economic change that England is going through will take a long span of time. The results will be worthwhile as well. Governmental Influence of the English Hospitality Industry The governmental influence remained powerful in the history of the industry, and the government is the chief patron of the hospitality industry because it remained and emerged as the defining source of foreign exchange in the country. The government was definitively looking for an edge, and that was provided by the industry of hospitality in the recent history. The government does not make a significant effort in terms of strengthening the global position of the local market. They have to expand the limits and boundaries of the industry to different areas of the country so that multiple streams of revenue can be created in due time. The government has to offer packages of tourist programs that can assist and facilitate them in visiting historical locations of the country. There are multitude of historical monuments present in the country, but they need proper promotion and marketing in order to gain fame in the global community of nations in the modern era of the 21st century. Human development and economic one go hand in hand, and therefore, the creation of wealth can be achieved by diversifying the investments in different industries so that fiscal growth can continue in various fields of life (Clemons, et al., 2002). The English government knows that for the fact that the economy is going to become a service-based one in recent future years, and because of this reason, there is no point in fighting the trend. They must support it in order to standalone in the world of economics. The inward flow of foreign exchange into the country will create a cornerstone of upcoming financial strategy of the country. European Union’s Impact on Hospitality Industry The overpowered presence of EU compromised the economy of the England to the point of no return. The problem transformed into a greater one with the passage of time when the country has to compete in different markets with various product lines of the sister nations that have developed the capability of cost control with great detail in the recent years. The Chinese and Indian products won the battle of price competition, the customers are thinking of the English products as expensive, and they are lower at productivity and performance. The national system cannot survive without integrating and knitting a well-balanced services and industrial sector in the modern times because the services are expensive no doubt (Goes & Park, 1997). However, they have a limited scope, and therefore, they do not have the strength to offer the economy with benefits that are associated with scope and scale of the operations. The human resource development needs of the industry lie within the acquisition of chefs who have gained global fame. The only source of customer value in the industry comes from the personal competencies of the chef and his or her team. The hotels and restaurants have to invest in training and development of their staff so that their skills remain updated with the changing needs and wants of the customers. The government will have fiscal development on their hands in upcoming years because the indirect FDI will create surplus that in turn can be redirected into various industries as seed money. Pressure Groups in Hospitality Industry The private side of the businesses has grown considerably in terms of their political power in recent years. The government is operating through a set of privately owned vendors that are providing services in the industry (Milman, 2010). The companies such as Premier Inn have gathered power and societal impression in the country because the government cannot replace them easily. The monopolistic trends are getting stronger and stronger with the passage of time, and therefore, the government cannot influence the decisional and strategic outlook of the vendors significantly (Mittal & Baker, 2002). Economic development is a far more superior goal in the eyes of the government rather than the need to establish rid over corporate sector of the nation. (Choi & Chu, 2001) The government is playing a dormant role in terms of managing the hospitality industry because the corporate area is critical towards economic success of the country in recent years that are yet to come. Comparison of Scots and the English Law The Scots law is the defining legal system of the Scottish land. The featured system has some sort of resemblances with the Irish and English systems of judiciary, but it maintains its unique identity as well. The Scottish system has been divided into two distinct types. The common and civil legal statures are two branches of Scots law. The Scots law claims four sources of legal framework that are customs, legal decisions, legislation, and educational works in the field. However, the English law does not consider legislation as the source of law, but it takes a very conventional approach in this regard. The legal decisions and customs are the driving forces of the system even in the modern day. The Scottish legal system is greatly influenced by European Union’s legal precedents as well, but the English does not take that into account because it wants to hold on to its separate national identity. European Union’s Legislative Process and its Influence on the English Economy EU does not have the power to influence the English economy directly. However, it does have the strength to impact the contextual environment of the nation. The EU has brought the trend of unity in Europe, and therefore, the entire region is fighting in order to minimize the cultural consequences of Americanisation in the recent times. The England has close ties with the American nation, and therefore, it is standing against EU as well. The EU’s latest economic policies have let the local businesses gain cost advantages, but the English companies do not have that kind of facility on their disposal. The England is fighting against Americans, Chinese, Japanese, and even Indians. They are outnumbered and outgunned as well. The EU’s fiscal policies have been influencing the English economy by guiding indirect influences towards it. The international institution is working to facilitate other European nations to have cost benefits, but in the course of doing that, it is hurting the suffering economy beyond repair. Analysing Operations of Different Operators in the Hospitality Industry The hotels and motels operate in order to provide various types of services to the guests. However, the tourist spots offer detailed services such as skiing, historical visits, and entertainment to the visitors. The tourist spots commercialise a specific spot that has a significant attraction for the tourists, and then build relevant services centers around it. Multiple businesses operate around a tourist spot, and they form a network of teams that collaboratively work in order to provide various services to the tourists. In this way, there is no organisational culture and structure of formal nature and every one of the participants enjoys working at a tourist spot because it involves a lot of fun during the process. The pleasure of the customers is the only source of income in the field of hospitality, and therefore, the clients receive extra care from the vendors, and they are often pampered as well. Formation of Companies in England The individuals, agents, accountants, and other organisational entities can form companies in the English territory. Nowadays, most of the companies are formed in the period of one day electronically. The candidates are bound to submit Articles of Association, Memorandum of Association, and Form IN01. Articles of Association set the rules and regulations that will govern the operations of the business. The profit’s division formula is established by the same document as well. At the same time, the Memorandum of Association consists the names and signs of partners of the business. The overall structure of the company is established by the abovementioned document, and finally, the Form IN01 identifies the location of the business. MoA determines the controls and management teams, but the structure of the company can be changed by gaining support of the partners. The companies operate within the framework of democracy. The Process of Incorporation The process of incorporation is the one that establishes the overall structure of the company. The law treats the organisation as a separate legal entity with legal rights. The court of law can award fines and punishments to the company except death sentence. The managers have to act as agents of the companies if it is facing capital charges. The Bubble Act of 1720 prohibited the creation of new companies in the England, but by 1825, the enforcement of the document was repealed, and the philosophy of Liassez-Faire became the leading one in the field of modern business world. Persons create the companies, and there is no prohibition in this regard now. Conclusion The England as an economy is working under great level of social and economic stresses because the country is left alone in the global community. The patterns of decisions have played a notable hand in the creation of miserable communal situations in the country. The government decided to stand against the powerful trend of globalisation, but that proved to be the greatest undoing of the country that was once considered greatest of all. References Anishenko, N., 2014. 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