Business Environment Analysis and Organization Chart

This assignment provides a comprehensive analysis of the business environment, including various topics such as the impact of globalization on business, entrepreneurship in fragile states, and service business development. The document also includes an organization chart for the Housekeeping Department, showing its hierarchical structure. Relevant sources from academic papers and books are cited to support the analysis.

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION..............................................................................................................1
TASK 1 ............................................................................................................................ 1
P1. Different types and purposes of organisations with their legal structures..........1
P2. Size and scope of a range of various types of enterprises................................2
TASK 2.............................................................................................................................3
P3. Relationship between different organisational functionalities and the way they are
associated with organisational structure .................................................................3
TASK 3.............................................................................................................................7
P 4 Positive and negative impact of macro factors..................................................7
Covered in PPT....................................................................................................... 7
TASK 4.............................................................................................................................7
P 5 SWOT analysis of Intercontinental hotel ..........................................................7
Covered in PPT....................................................................................................... 7
P 6 How strengths and weakness interrelate with external macro factors.............12
CONCLUSION............................................................................................................... 13
REFERENCES...............................................................................................................14
...................................................................................................................... 15

INTRODUCTION
Business environment consists of internal and external factors that affect various
functions of organisation like their customers, workers, management, delivery,
legislations of business, etc. There are various factors present in a business
surroundings such as political, economical, social, legal, technological and
environmental factors. These all affects on the functioning as well as performance of the
companies (Erving and et. al., 2011). The present report is based on the business
environment of Inter-Continental hotel groups. In this report, different types of
organisations including their size and scope will be explained with assessing the
relationship of various functions within organisation and positive and negative impact of
macro environment on business operations. Further, internal strengths and weaknesses
of specific businesses and their interrelationship with external macro factors will also be
discussed.
TASK 1
P1. Different types and purposes of organisations with their legal structures
There are commonly three types of organisations namely private, public and
voluntary sectors which are explained as below:
 Private sector: Such types of firms are owned by private owners and they hold
the economy of nation and play a role of distributing market shares for people.
They need to follow all the norms and legislations that are important for
company. Main purpose of this type of firm is to earn higher profits and expand
their business in all over the world (Scheer, 2012). They also wish to increase
their market share and maximise the sales. The businesses of trade holders,
partnership, franchises, etc. are included in their tasks. Such type of company
can have minimum 2 members and maximum two to three hundred members.
Inter-Continental hotels fall under the category of private sector which is located
in United Kingdom. They are providing hospitality services to their customers.
There are various partners of this company such as Holiday Inn, Crown Plaza,
Hotel Indigo, etc.
 Public sector: This sector commonly comprises of those ventures which are
owned as well as run by government bodies. Their objective is to serve the
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citizens of their country. They are not keen to earn profitability. The major
purpose or aim of such types of organisations is to offer several types of public
services to the civilians for their welfare. These type of firms consist of minimum
7 members and maximum of unlimited people. NHS (National Health Service)
comes under this sector.
 Voluntary sector: This is a non - profit organisation that works for the well-being
of people present in society. They are not owned and run by government bodies.
Such types of institutes are owned by an individual or a group of people. Main
aim and purpose of this type of organisation is to fulfil the basic requirement and
demands of citizens. They also give their focus on different types of social issues
and health related problems. They are known as non-government (NGOs) and
non-earning organisation which are associated with the voluntary sector. The
number of workers of this type of firms are not fixed (Robbins, Judge and
Campbell, 2010). They can even start with one member and can have more than
one. OXFAM is the best example of such type of firm. It is a multinational charity
enterprise which is located in the UK. It works for offering help to the needy
people and also, aids government in minimising illiteracy, poverty and several
other major problems. They also fight for the right of common people for
providing them safety, food and livelihood. Oxfam works in approx. 90 nations
and controls or manages long term programmes.
P2. Size and scope of a range of various types of enterprises
The size and scope of a range of different types of organisations are listed as below:
Inter-Continental Hotel
group
Red Carnation hotel
Number of employees 28, 589 10, 000
Number of consumers 35, 0000 per year 1.5 million consumers
annually
Net income of firm $417 million (2016) $ 25, 0000
Areas served by company All over the world London, Europe
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The stakeholders of Inter-Continental Hotel group includes colleagues, guests
and corporate customers, IHG owners association, NGOs, government and community
organisations, academic institutions, suppliers, employees and shareholders.
While, the stakeholders of Red Carnation hotel consist of suppliers, guests and
corporate clients, investors, shareholders, workers, etc.
TASK 2
P3. Relationship between different organisational functionalities and the way they are
associated with organisational structure
Different organisations have various organisational functions but they consist of
similar motives of earning profits and enlarging their market. There is a relationship
among all the functionalities of Intercontinental hotel group that are described as below: Production: IHG is offering best quality services and products to their customers
so that large number of consumers get attracted towards their hotel for the
purpose of staying and enjoying holiday vacations. Research and development: IHG is investing a large sum of money in the
sector of research and development. Employees present in this department are
having the responsibility of conducting surveys on global level. They examine
current demands and living style of people so that they can provide services
accordingly. Venture is also concentrating on selection or choice of their food
items that is done by them in order to provide the same during their staying
period. On the basis of those results, they modify their services so that in future,
they would not face any kind of problem (Klapper, Lewin and Delgado, 2011).
This department is having a link with the production sector as both of them wants
to increase the number of clients so that maximum profits can be achieved. If
they focus on the life style of people and provide them service as per that then
definitely a large number of travellers get attracted towards them and prefer it for
staying in their holiday vacations. Purchasing: Company tries to purchase raw materials of best quality such as
royal and luxurious beds, sofas, healthy food materials for cooking delicious
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dishes, comfortable transportation services, etc. They want to purchase these all
on the lower prices so that they would offer their hospitality services at affordable
costs. By this way, they also want to seek attention of visitors as everyone wants
services at minimum cost. So, this department is also connected with other
sectors like production, research and development, etc. Human resource management : Inter Continental hotel group are also using
human resource department in their firm so that they can recruit large number of
skilled and talented employees. They wishes to make their brand and services
famous in the entire world so they are interested in hiring best staffs in their
enterprise who consist of fluent communication skills, courtesy in their behaviour,
better interpersonal as well as intra – personal skills, etc. Human resource
management also provides training and development programmes to the newly
joined workers so that they can learn all their regular job or duty very easily
(Guglielmetti, 2011). They offers around 6 month training to the freshly hired
employees so that they receive experience of their work and do not face any kind
of problems at the time of working for their company. After that they can
contribute in increasing the turn over of venture. For recruiting the best
employees, HR manager needs to visit different universities and institutes. This
would consume a lot of money as well as time. So, managers can also conduct
interviews via online system as this would take less time and also saves costs of
travelling. So, it can be concluded that this sector also wishes to earn more
profitability by taking help of their recruited employees. So, they are also
connected with other departments like production, purchasing , etc.
 Accounting and finance : IHG maintains their task of accounting and finance
efficiently so that there would be no error in this work as the whole calculation of
income and profit earning is relying on this. The income earned by venture is
being entered in the software via computers on regular basis and at the last of
month or year they check earning made by themselves. By this way, they decide
how much profit are earned by them or are they suffering from losses.
Intercontinental hotel follows the divisional organisational structure. Under this
structure, they spread out their functions across branches or divisions (Gebauer, Paiola,
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and Edvardsson, 2010). As the venture has different product lines, thus each product
line is divided into several or different areas such as sales, marketing, finance, research
and development departments, etc. The advantage of this approach is that every
divisions consist of departments for performing different and important functions. But
there is a limitation of this approach. Here each and every branches are performing the
same functions and this creates a lot of redundancy. By using this organisational
structure, they wanted to establish an effective and simple organisation via which they
can arrange or do allocation of job in a proper manner. Therefore, the main motive of
the divisional structure is to provide services to the customers in attractive and effectual
manner so that they show interest or prefer their venture for the purpose of staying and
enjoying their holidays (Fernando, 2011). Hence, it can be said that organisational
structure of the IHG is also linked with different functionalities.
(Source : Housekeeping Department Organization Chart, 2017)
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Illustration 1: Housekeeping Department Organization Chart

TASK 3
P 4 Positive and negative impact of macro factors
Covered in PPT
TASK 4
P 5 SWOT analysis of Intercontinental hotel
Covered in PPT
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P 6 How strengths and weakness interrelate with external macro factors
Strength and weaknesses of the IHG is directly associated with the external
factors which is explained below : Political factor : If the political situations of the UK will not be good or stable,
then it leads to minimum productivity. And as a result, turn over the venture
decreases. High taxation rates are being imposed by legal authorities that is
giving negative impact on the Inter – Continental hotel as most of the money is
going only in paying such taxes. In addition to that company is doing business in
different nations and that is why they are facing taxation rates of different
countries. Economical factor : If the enhancement in the inflation rate is occurred, this
causes decline in the number of visitors. So, firm has to keep their prices
affordable to all types of users (Boons and Lüdeke-Freund, 2013).
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 Social factor : The changes in the trends on continuous basis gives a negative
impact on the performance of venture as IHG have to change their services as
per the consumers on regular basis. This creates a complex situations in venture
as employees have to alter their strategies on regularly. Technological factors : Enterprise has adopted new techniques and
methodologies by analysing the whole scenario of market. This aids them in
managing and controlling all the training programmes effectively. Different
advanced software are used in the corporation that aids in managing their
accounting tasks very easily and saves lot of time. Legal factor : All the laws and legislations should be followed by IHG. If do not
do so then they would be punished by government (Commander and Svejnar,
2011).
 Environmental factor : Company develop the environment and also do not face
any kind of negative impact from them. In fact, hotels located at natural locations
like hilly areas attract large number of travellers. So, it can be said that natural
environment is giving positive impact on the corporation. Therefore, cited firm
also has to keep the surroundings clean and should not generate more waste
materials.
CONCLUSION
From the above based report, it can be concluded that every organisation works
in an environment. So, environmental or macro factors are playing key role in the
survival of any corporation. Intercontinental hotel group are also facing positive as well
as negative impact of various macro factors like political, social, technological, legal,
economical, environmental, etc. This is shown by taking use of PESTLE analysis. The
report has also been discussed strength, weaknesses, threats and opportunities of the
venture and are presented by using SWOT analysis. In addition to that different types of
organisations such as private, public and voluntary sector are explained along with their
size, scope and legal structures. The different functionalities and the organisational
structure of the IHG are also described in this report.
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REFERENCES
Books and journals
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Guglielmetti, C., 2011. Measuring the business environment for entrepreneurship in
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Online
Housekeeping Department Organization Chart. 2017. Available through :
<https://setupmyhotel.com/train-my-hotel-staff/hk/255-hk-dep-chart.html>. [Accessed on
16th November 2017].
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