Understanding Business Organizations in Hospitality and Tourism Industry

UNDERSTANDING
BUSINESS
ORGANIZATIONS

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task-1..........................................................................................................................................3
Task-2..........................................................................................................................................4
Task-3..........................................................................................................................................5
Task-4..........................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
INTRODUCTION

Business structure refers to the form or status of an organization through that it runs its
business. The essay is aimed to present deep-rooted views on different types of organizational
structures such as sole trader, partnership, limited company etc. for these different types of
business organization some advantages and disadvantages shall be deciphered in attempt to bring
deeper understanding about them (Ritter and Pedersen, 2020)
Here different organizational structured would be compared and a brief review would be
presented that how doe they work and what are some similarity and dissimilarities amount them.
Furthermore, different types of business functions such as HRM, production, operations etc. are
to be elaborated with respect to hospitality industry. Organizational cultures, and their impacts
on the performance has to be articulated. At the end of the essay some examples will be shared
with regard to hospitality and tourism industry in order to present broader picture of business
structures.
MAIN BODY
Task-1
There are multiple types of business such as sole trader, partnership and limited
company. In hospitality and tourism industry there are a range of different types of organizations
who are getting operated such as Mitchells and Butlers, CH&CO, City Relay etc. (Leminen, et
al. 2020)
Sole Trader- Sole trader means the type of business whose ownership is in the hands of a single
person, who is having all the rights, liabilities and power of making decision.
Advantages-
 On such business there is no issue of conflict of interest.
 The sole owner may make fast and independent decision.
 There is no need to share profit with others.
Disadvantages-
 Limited funds availability.
 Lower level of expertise.
 There is no support from others.
Partnership- It is form of business where more than tow people come together and run a
business. There are some firms to such as Inter Continental Hotels Group, Whitbread and
Travelodge etc.