Business Types and Functions in Hospitality and Tourism Industry

Understanding
Business
Organizations

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
Books and Journals.................................................................................................................4

INTRODUCTION
Business structure can be referred to as the ways that organisations carry out their activities
in the workplace by applying various strategies and using specific structures. Business is
generally carried out by their owner and has a legal entity with the aim of generating the profits
through selling of products and services to the customers in the market (Di Vaio and et.al., 2021).
In the following report there will be the analysis on the advantages and the disadvantages of the
different legal identities that business carries like partnership, sold trader and limited company.
These will be discussed in relation to the hospitality and tourism industry. Along with that there
will be the comparison on the different organisational structures. Various functions of human
resource management, marketing, operations and the production will also be analysed. There will
be the evaluation of the organisational culture and at the end of the report examples will be taken
out in relation to the industry practices from different organisations.
MAIN BODY
Business structure that carries out partnership can be referred to as when two or more
persons come together for the purpose of carrying out the operational activities of the business.
The main advantage of this legal entity is that it requires very few formalities in order to start the
business (Sarja, Onkila and Mäkelä, 2021). There is the distribution of the risk in this type of
structure by the partners. It also provides facilities to the managers to expand their operational
activities in the market. Along with the advantages one of the major disadvantages of the
structure is that it has unlimited liability because the profits and the losses have to be shared by
the partners. There is conflict arise between the partners when there is to be taking decisions
related to the activities. For example, London Hilton has collaborated with Bompas and Parr
through which they become able to make their rooms more vegan friendly.
Sole trader legal entity can be defined as when the business activities are carried out by
the single person. The profit is enjoyed by the single person which comes out to be the biggest
advantage of this entity. The process of decision making can easily be executed in this structure
because a single person has control over all the departments (Andrews and et.al., 2019). One of the
major disadvantages of this business structure is that all the risk has to bear by the single person
and there is unlimited liability that is caused to the owner. Investment in this type of structure