Business Types, Functions and Organizational Culture in Tourism Industry
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This essay covers different types of business, structure, functions and culture in tourism industry. It discusses the types of business, structure of an organization, business functions and organizational culture with examples from InterContinental Hotels Group and The Little French Restaurant.
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Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 CONCLUSION................................................................................................................................4 REFERENCES................................................................................................................................5
INTRODUCTION Business organisation refers to the entity settled for the aim of carrying on commercial company. The objective of business is to attain and accomplish their desired goal on particular time. The purpose of the essay is to gain understanding of internal or external environment of company in which it operates. In tourism industry, main criteria opted by the business establishments includes effective sustainable planning making, enhancing culture heritage, maximising economical and social benefits and minimizing negative effects to the environment. This essay covers different types of business, structure, functions and culture. MAIN BODY Types of business For every individual it is important to decide the form of business to establish(Arce, 2021). First kind of business is sole proprietorship which is least expensive and simplest way to open a business in the market. It helps The Little French Restaurant owner in achieving overall revenue for their own as they are a single owner of the entity. Their business gross flow straight with their private tax return. The establishment and operation of The Little French Restaurant is simple and easy. The Little French Restaurant owner can easily make changes in their legal and business structure. At the same time, there is no legal differentiation between business and personal aspect so entrepreneur have unlimited liability for debts(Vyakina, 2019). Their capability to increase capital is limited. For all the day to day decision making and operation management, the owner is responsible(Bovven, 2019). Second business type is partnership which is a formal arrangement by two or more individual and parties with the aim of operating and managing a company and share its revenue or profit at the fixed percentage of share. For Hilton London Bankside it is easy to start the business without any registration in companies house (Hilton London bankside,2022). It aids all the partners of Hilton London Bankside in gaining skills, knowledge, contacts and experience. It assess Hilton London Bankside partners in taking better and proper decision for the day to day operations. At the same time the partners have to face unlimited liability as the entity do not have separate legal personality(Bugdol, 2018). There can be conflicts and differences in the business between partners. They have limited access to capital as they find it difficult to invest money. The third type of business is limited company which is a general form of incorporations and legal structure that limits the 1
liability of company subscribers or shareholders by the way of commitments and investments (Weaver,YardleyandEmmerich,2021).InterContinentalHotelsGroupmanagershave minimum personal liability as the losses are the companies responsibility only. The professional image and status of InterContinental Hotels Group is going to improve (Intercontinental Hotels Group,2022). With higher profits in business shareholders is going to get higher personal remuneration. At the same time members of company have to pay incorporation fee. The accounting requirements of InterContinental Hotels Group is going to be time consuming and complex and they have to hire accountant for their tax affairs. Structure of an organisation There are two type of structure first one is tall structure, in this there is a top level management or CEO sits on the top of the organisational chain and directs and give command to the workers with different level of management underneath(Carroll and Gillen, 2019). For example, tall structure is followed in InterContinental Hotels Group and it provides more opportunities for promotion which helps managers of InterContinental Hotels Group to motivate their employees. The managers completely and properly support and directs their workforce to attain organisational goal and success(Davydova and Koneva, 2020). It also have some disadvantage as this structure is less flexible, every communication and decision have to travel through many managerial stages. Their will be less creativity because employees have to wait for the orders and complete task according to their top managers. Whereas the second one is flat structure, it is very flexible and includes fewer management levels and more autonomy of workforce in the process of decision making(Den Hertog and Bilderbeek, 2019). For example, flat structure is followed in Little French Restaurant and it improves the cost structure of the organisation. There is a less miscommunication between people working in it and increase the morale of their employees. At the same time this structure can limitLittle French Restaurant productivity. Due to less people there is lack of responsibility as employees have to perform a lot of work at the same time(Wu, Buyya and Ramamohanarao, 2020). Business functions Business functions are related to the day to day operation that are carried out by the organisation in order to attain higher goal and income(DePaula, Dincelli and Harrison, 2018). In reference to InterContinental Hotels Group, the important business functions are human resource, marketing and operations. The first function is human resource management which is 2
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related to hiring, motivating, administering andretaining people. In InterContinental Hotels Group, human resource management mainly focus and work on needs of their people and deals with documentation for inquiries to motivate them in order to attain organisational goal. Another function is marketing, its main aim is to promote companies offering and providing goods and services to the large number of customers(Fayziev, 2020). It helps organisation in attracting more people all over the world and in gaining sustainable advantage over others in the market. Another function of business is operations, it includes all the day to day functioning in the company. It converts inputs into fished goods to sell them to the customers. In InterContinental Hotels Group, managers manage and handle their daily operations and manufacture goods and services according to their customers satisfaction in order to achieve goal and success. Organisational culture It is the accumulation of values, activities and expectations that gives map to employees behaviour and understanding in the business organisation(Freudenreich, Lüdeke-Freund and Schaltegger, 2020). It mainly have impacts on the organisational success. Every business must have strong efforts that makes their people feels themselves the component of something finer. Organisational culture contains different sources in the business like their structure, ethics and rights according to their employees. Having harmonious relationship and financial stability in the business is also a part of organizational culture(Helfat and Raubitschek, 2018).InterContinental Hotels Grouphave very reputed organisational culture in the UK market. Their management also working to improve it continuously by implementing different strategies. Having a good organisational culture benefits this hotel to attract more customers.Tourist comes to United Kingdom for tourism purpose or people come for any other work chooses this hotel only due to great organisational culture(Humphrey, 2020). So, we can also say that it have contribution in tourism industry of the economy. It have expertise staff, who provides great hospitality to the customers that enhance their cultural reputation in the hospitality industry. Management also framedifferentstrategiesfortheirorganisationalculturetoimprovehospitalityin InterContinental Hotels Group. This hotel is using clan culture in their business premises which is people oriented organisational culture. This culture made friendly relations between customers and organisation that leads in influencing profitability of the business organisation(Lin, Bruning and Swarna, 2018). InterContinental Hotels Grouphave crucial role in contributing to both hospitality and tourism industries of the UK economy. 3
CONCLUSION From the above essay, it is concludes that the company operates their operations according to the laws, contracts, rights and many more which is signed in the organisation. There are various type of business which includes sole trader, partnership and limited company. The structure of the company is very important to be followed which are of two types, first one is tall andsecondoneisflat.Thefunctionsofbusinessplaysanimportantroleinattaining organisational goal and success. Some of the functions are human resource management, operations, marketing and many more. Organisation culture influence nature of plans and build workplace environment which helps business in long term sustainability. 4
REFERENCES Books and Journals: Arce, D., 2021. Integrating Giving Voice to Values across Business Fields and Functions. InGiving Voice to Values(pp. 56-71). Routledge. Bovven, T., 2019. FUNCTIONS AND USAGE OF THE DEBT CAPITAL. InColloquium- journal(No. 13-10, pp. 15-16). Голопристанський міськрайонний центр зайнятості= Голопристанский районный центр занятости. Bugdol, M., 2018. The Definitions, Types and Functions of Discipline as Well as Factors Influencing Discipline. InA Different Approach to Work Discipline(pp. 1-53). Palgrave Macmillan, Cham. Carroll, S. J. and Gillen, D. J., 2019. Are the classical management functions useful in describing managerial work?. InManagerial Work(pp. 291-304). Routledge. Davydova, A. A. and Koneva, A. A., 2020. Small Business: Essence And Functions.Business Strategies. Den Hertog, P. and Bilderbeek, R., 2019. The new knowledge infrastructure: the role of technology-based knowledge-intensive business services in national innovation systems. InServices and the knowledge-based economy(pp. 222-246). Routledge. DePaula, N., Dincelli, E. and Harrison, T. M., 2018. Toward a typology of government social media communication: Democratic goals, symbolic acts and self- presentation.Government information quarterly.35(1). pp.98-108. Fayziev, T. R., 2020. FUNCTIONS AND TYPES OF MANAGEMENT IN SMALL BUSINESS.Мировая наука, (3), pp.48-51. Freudenreich, B., Lüdeke-Freund, F. and Schaltegger, S., 2020. A stakeholder theory perspective on business models: Value creation for sustainability.Journal of Business Ethics.166(1). pp.3-18. Helfat, C. E. and Raubitschek, R. S., 2018. Dynamic and integrative capabilities for profiting from innovation in digital platform-based ecosystems.Research policy.47(8). pp.1391- 1399. Humphrey, D. B., 2020. Distance functions, bank output, and productivity.Journal of Productivity Analysis.54(1). pp.13-26. Lin, H. C., Bruning, P. F. and Swarna, H., 2018. Using online opinion leaders to promote the hedonic and utilitarian value of products and services.Business horizons.61(3). pp.431- 442. Vyakina, I. V., 2019. Security of business operations and supervisory functions of the state as characteristics of the business environment.J. Advanced Res. L. & Econ..10.p.1696. Weaver, G. A., Yardley, T. and Emmerich, D.P., 2021, October. Continuous Infrastructure Assessment for Key Business Functions in Changing Environments. In2021 Resilience Week (RWS)(pp. 1-8). IEEE. Wu, C., Buyya, R. and Ramamohanarao, K., 2020. Modeling cloud business customers’ utility functions.Future Generation Computer Systems.105.pp.737-753. 5
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