Business Types and Functions in Hospitality and Tourism Industry

This essay discusses the advantages and disadvantages of different legal identities in business, comparison of organisational structures, functions of human resource management, marketing, operations and production, and evaluation of organisational culture in the 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

cannot be made in huge amounts. For example, Friendship house hotel is owned by a single
person and they become able to earn good revenue in relation to the hospitality industry.
A limited company can be defined as the structure in which all the activities are
managed by the directors and the company is owned by the shareholders. A limited company is
executed by sharing the stock for the aim of trade. In relation to the intercontinental hotel, they
are a limited company that is listed on the London stock exchange. One of the main advantages
of this structure is that huge investment can be made by issuing of shares to the public. Funds
can easily be transferred through shares to any person (Ronquillo, Popa and Willems, 2021). This
type of legal entity has more scope in the future which can generate more profits. There are
disadvantages to this structure as it requires a huge amount of capital in order to start the public
company. It requires so much legal formalities that delays in order to start the company. This
type of business structure only focused on the short-term goals and profits.
Organisational structure can be referred as the system in which all the activities of the
business are carried out for the purpose of generation of the profits that helps the business
organisations to become more successful in the future. Tall organisational structure can be
referred to as the system in which all the activities are broken in different sequences. For
example, Inter Continental hotel used this structure through which the managers of the company
have control over the activities in the workplace. It also facilitates the managers to effectively
defines the roles and the responsibilities to each and every employee of the company. On the
other hand, flat structure can be referred to as the organisation when they don't have middle
management above the employees and the executives (Zehoul, 2021). This organisation structure
has various benefits like they mainly focus on the customer satisfaction, few management levels
and effectively delegation of the authorities to the different employees of the organisation. For
example, little French restaurant uses this structure that facilitates them to serve various
opportunities to their staff through that they can promote the aim of the business.
Business activity can be defined as the operation activities in the organisation through
which they become able to generate profits. For example, an Intercontinental hotel carries out
various functions like operations marketing and human resource management. The marketing
department is one of the major segments of the hotel through which they become able to promote
their services to their customers. This helps a manager of the company to reach more audience
through which they can generate more revenue. Human resource management is another function

of the organisation that facilitates them to higher productive employees in the workplace. For
example, London Hilton hotel heaven effective department of human resource through which
they become able to critically analyse the need of the staff in the place and this has them to
eliminate the delay of services (Sharma, Agrawal and Khandelwal, 2019). Operations is also another
major function through which they convert the raw material into the finished goods. In relation to
the hospitality industry the management department focuses on to provide effective services to
their customers. It is one of the valuable parts of the organisation that has them to satisfy the
needs of the customers by providing them quality services. For example, the intercontinental
hotel carries all these activities in an effective manner through which they are able to make
valuable brand image in the market. This helps the managers and the leaders of the company to
lead the actions of the employees towards the accomplishment of the goal.
Organisational culture can refer to the behaviour of the employees towards the goal of the
company. It is a very wide concept that includes expectations and working together through
which they convey the information to each and every member of the team. Organisation culture
is highly manipulated by the managers and the leaders of the company and they are the main
people who shape the behaviour of the staff. For example, intercontinental hotels the applied
Handy's model in their company through which they become able to influence the behaviour of
the employees towards the achievement of the goal (Dwikardana and Teressia, 2019). It facilitates
the managers to clearly define the roles and responsibilities and in task culture they focuses on to
increase the engagement of the employees towards the specific projects and the work. In relation
to the person culture the staff does not put much pressure in order to carry out the activity. For
example, intercontinental hotels use task culture because their employees are very professional
and skilled. By using this culture organisation becomes able to achieve their goal. It also has
been evaluated that more positive work environment in relation to the hospitality industry
increases the job satisfaction of the staff and keeps the employees more engaged with the goals.
CONCLUSION
From the above report it has been analysed that for carrying out the activities in the
workplace there are several laws and regulations that help the managers to run activities
smoothly. It has also been evaluated that various types of actions have to be carried out in the
organisation through which they can achieve the goals and the target. It has also been evaluated

that leaders and manager and the leader of the company plays an important role in carrying out
the activities towards the goal. In the above report there has been discussion on the various types
of business structures that business preferred according to their investments. Comparison of the
flat and tall structures has been undertaken in relation to the hospitality and tourism industry.
Different types of functions of the business have also been evaluated like marketing, operations
and human resources. At the end part of the report the concept of organisational culture has been
analysed in relation to the hospitality and tourism industry.

REFERENCES
Books and Journals
Di Vaio, A and et.al., 2021. Understanding knowledge hiding in business organizations: a bibliometric
analysis of research trends, 1988–2020. Journal of Business Research, 134, pp.560-573.
Sarja, M., Onkila, T. and Mäkelä, M., 2021. A systematic literature review of the transition to the circular
economy in business organizations: Obstacles, catalysts and ambivalences. Journal of Cleaner
Production, 286, p.125492.
Andrews, T.G and et.al., 2019. Corruption in Asia Pacific business organizations: insights on causes,
conditions, consequences and treatment. Asia Pacific Business Review, 25(4), pp.459-469.
Ronquillo, J.C., Popa, A. and Willems, J., 2021. Toward an understanding of the role of human resources
in cultivating a climate for innovation in nonprofit and public organizations. VOLUNTAS:
International Journal of Voluntary and Nonprofit Organizations, 32(5), pp.1126-1138.
Zehoul, A.B., 2021. Under Pressure: Understanding How and Why a Multinational Firm Reacts to
Consumerist Organizations in Brazil’s Business Context. Latin American Business Review,
pp.1-22.
Sharma, A., Agrawal, R. and Khandelwal, U., 2019. Developing ethical leadership for business
organizations: A conceptual model of its antecedents and consequences. Leadership &
Organization Development Journal.
Dwikardana, S. and Teressia, A., 2019. Crisis-based transition and family-business organization’s growth
in 5 Indonesian middle-large family-business organizations. In Global Competitiveness:
Business Transformation in the Digital Era (pp. 293-296). Routledge.