Structure and operation of UK economy

This presentation provides an overview of the UK economy, its forms of market structure, GDP, service sector, and taxation policies. It also discusses the impact of government economic policies on the service industry, income distribution, demographic trends, and social structures of people employed in the hotel industry. The presentation is based on various sources such as Gitman and McDaniel (2008), Giudice et al. (2011), and Wang and Ellinger (2011).

External Environment
TASK 1

Structure and operation of UK economy
UK economy is considered to be as the fastest growing and
one of the largest economies that features GDP rate. Thus, for
operating the services in this economy, there are various forms of
market structure in which a company can perform their business
activities. Among all the forms of market structure, if the company
selects suitable market for operations then it directly influences the
behaviour and culture of organization.
The forms of market structure available in the UK economy
are perfect competition, imperfect, oligopoly, etc. St. James' Court
operates its services under oligopoly market as there are few firms
and large number of buyers in this industry. Further, when measured
in size, UK economy is 5th largest national economy and 2nd
largest in EU and in nominal GDP, it is 10th largest in the world
while 3rd largest in EU.

Contd...
The economy of UK is the fastest growing in the G7 for 3
consecutive years. Moreover, it is one of most globalized economies
in the world. The service sector of the UK contributes 78% of the
GDP in the economy. This sector includes hospitality industry,
aviation, banking and financial sector, etc.
Moreover, taxation policies of UK is low because UK economic
system stable and helps businesses in establishment of various new
ventures. It also covers number of regulatory frameworks and
provide transparency to the work culture. Therefore, job security
has been increased and this way inflation rate came down.

Government economic policy and its impact on
service industry
The economic policy includes trade, fiscal and monetary policies
which are framed by the government of UK. These policies have a direct
and indirect impact on the working of St. James' Court. It has been spotted
that the changes in fiscal policies has direct impact on the work culture of
organisation. Advancement in tax rates will impact the customer demand
because these kinds of conditions forces company to amend pricing of
services.
Furthermore, the budget policy of government also has an impact on
the working of hotel. The budget pass by the authority may increase or
decrease the prices of the products and services. Currently, the budget has
been increased for the hotel rooms and in this way prices have been
increased.
The monetary policy also impacts the company in indirect manner.
The interest rate of the UK is 0.5 percent and company can acquire loan at
least cost. Thus, there are many chances of expansion of this firm and they
can invest more in generating wealth.

Income distribution

Income, wealth, employment and occupational
distribution in relation to the provision of service
operations
The income was at top during 2009-2010 while in 2011-2012 it
has fallen down. Furthermore, the dotted line represents percentage
of the total income which are earned through pensions and
investment.
The bold line represents the proportion of total income the
employees of service industry receive after paying off taxes to the
government. Furthermore, the employment people in hospitality
sector is 2,441 which generate the turnover of ￡ 90.4bn.

Demographic trends influencing employment
patterns
Demographic factors include age, sex, nationality, annual
income, background, colour, etc. These factors put a greater
influence on the pattern of employment in hospitality industry. The
main reason behind this changing pattern is that demand of the
consumer is changing due to which employment pattern has to be
changed.
The hotel industry seeks to employ young as well as experienced
candidates. In addition to this, education also matters in this hotel.
For this purpose, educated employees are hired and this limit the
employment of people in UK. As in this sector, unskilled employees
cannot be hired.

Analysis of social structures of people employed in
hotel
Analysis of social structure of people who are employed in St.
James' Court have been done. Social structure basically refers to as the
interaction of employees who are employed in the company with other
staff members. It also involves building relationships with their
customers society.
In St. James' Court, a candidate with higher education is hired so
that they should possess the knowledge of interacting and building the
relations with the society.
Further, company also focuses on providing training to the workforce
in order to enhance the interpersonal skills among the employees. This
way social structure of the firm can be improved more

References
Gitman, L. and McDaniel, C., 2008. The Future of Business: The
Essentials. 4th ed. Cengage Learning.
Giudice, G. Kuenzel, R. and Springbett, T., 2011. UK Economy:
The Crisis in Perspective. Routledge.
Wang, Y. and Ellinger, D. A., 2011. Organizational learning:
Perception of external environment and innovation performance.
International Journal of Manpower. 32(5/6) .pp.512 – 536.
United Kingdom GDP Annual Growth Rate. 2016. [Online].
Available through: <http://www.tradingeconomics.com/united-
kingdom/gdp-growth-annual>. [Accessed on 18th February
2016].