External Business Environment - Assignment Solution
26 Pages8618 Words232 Views
Added on 2019-12-03
About This Document
This report is on "business environment of UK hospitality industry". The present report mainly focuses on the whole contemporary hospitality industry UK as it is considered the fastest-growing sector. The study also analyses and measure the meaning of the external business environment as it mainly affects the operations of the organization. Along with this company also measures the modern economic policy and its impact on the services and operations of the hospitality industry UK. The present study also measures the impact and effect of change in the socio-economic aspect on the performance of organizations within the hospitality industry.
External Business Environment - Assignment Solution
Added on 2019-12-03
ShareRelated Documents
Externalbusinessenvironment1
TABLE OF CONTENTSINTRODUCTION ..........................................................................................................................3Task 1: The structure and operation of UK economy..................................................................3Task 2: Current government economic policy and its effect on business and service industries4Task 3: Discuss income, wealth, employment and occupational distribution in relation to theprovision of business and service operations...............................................................................5Task 4 Demographic trends that influence employment patterns in hospitality industry............5Task 5: The social structures of people employed in business and services industries...............6Task 6: The structure, operations and influence of local government on a major part UK hotelgroup............................................................................................................................................7Task 7: Role and influence of European union and its impact on businesses.............................7Task 8: Role of pressure groups...................................................................................................8Task 9: legal framework within UK and difference between English and Scottish system........8Task 10: UK and EU legislative process and its effects .............................................................9Task 11: Types and characteristic of business that operates within hospitality industry ...........9Task 12 Legal process necessary for the formation and dissolution of company ....................10Task 13 structure and process which determines the responsibilities and control within aregistered company....................................................................................................................11Conclusion ....................................................................................................................................12References......................................................................................................................................142
INTRODUCTIONBusiness environment is combined with two factors that are internal and external factors,both the factors influence the decisions of businesses (Kew and Stredwick, 2005). Internalenvironment includes the factors that exist within the company and put its impact on theprocesses as well as the success of organization. Another component of business environmentinclude external environment of an organization are those components those exists outside thecompany an impact the establishment ability to function. Managers generally have no controlover the external environment factors which are uncertain and indirectly affect the operations ofbusiness. However, external environment directly affects the processes of planning, organizing,directing and controlling of business. Present report mainly focuses on the whole UK hospitalityindustry as it is consider as the fastest growing sector. The study also analyse and measure themeaning of external business environment as it mainly affect the operations of the organization.Along with this company also measures the modern economic policy and their impact on theservices and operations of the hospitality organization (2014 Index of Economic Freedom, 2014).Therefore, present study also measures the impact and affect of change in the socio-economic aspect on the performance of organization within the hospitality industry. Study alsofocuses on measuring the role and influence of EU on the operations of Hilton while operatingthe activities across the border. Report will also measure the different impact of external factorsthat is political, social and legal environment on the activities and operations of HiltonInternational. Task 1: The structure and operation of UK economyHospitality industry is considered as the major employer that provides job opportunitieswithin the service sector. This industry encompasses an extensive variety of services thatcommonly include food service, tourism and hotels services. Therefore, the key strength ofhospitality industry is that it mainly focuses on creating wealth and job opportunities throughoutthe countries and get benefits from the different activities of restaurant and hotels or othercatering businesses (Economic System, 2013). In the contemporary scenario, it has been statedthat UK economy is consider as fastest growing and largest economy that features increasingGDP rate (United Kingdom GDP Annual Growth Rate, 2016). Therefore, for operating theservices there are various form of market structure under which organization perform their3
activities (Harrison, 2013). From the different form of market structures selecting the suitablestructure directly affect and influence the behaviour and culture of organization. The differentvariety of market structures available in the UK economy are imperfect competition structure,perfect competition, oligopoly etc. Market structure of UK hospitality industry mainly focuses onthe perfect competition market as there are too many buyers and sellers present within themarketplace and has control on the activities (David, 2000). Under UK economy, there is nobarrier for entering or existing in the market as they are free to enter in the market and exist fromthe market. It has also stated that UK economy directly employs over 2.4m people in 17000commercial establishments. Moreover, range of hospitality industry is vast as it features varioussections that mainly include hotels, restaurants, pubs, motels, clubs etc. Therefore, UKhospitality industry mainly contributes their market share in the up-liftment of UK economy andthus, outcome in creating various job opportunities. However, it has been stated that 32£travellers across the globe often visit the tourist destinations in the UK. Therefore, it has beenstated that UK hospitality business mainly impart £4.25bn within economy that support theeconomy in developing their destinations and places that are often visited by travellers (Britton,2009). however, there are different sectors and industries that mainly contribute in growing theUK economy that is agriculture sector it mainly contribute the UK economy by producing thefood needs around 60% within the economy. The agriculture industry in the UK also contributearound £9,438 million within the economy that increases the GDP rate. Furthermore,construction industry also primarily contribute and impart their gross value to the UK economythat is approximately £86 billion. The construction industry progressively result in contributingto the development or processing of infrastructure in the UK (United Kingdom NationalAccounts, The Blue Book, 2013). Another industry that contribute in the GDP of UK economyfocus on production industries that generate electricity, gas and water supply that boost or addthe gross value around £33,289 million in economy. Task 2: Current government economic policy and its effect on business and service industriesAuthorities mainly frame legislations and rules that need to be enforced by the businessesthat are operating in the service industry. However, UK government from time to time modifythese policies and rules that directly forces to change their processes and procedure. The aim ofcurrent government policy is to raise the sustainable growth and achieve rising economic4
condition by creating opportunities (Grier, 2006). In the present scenario, UK economy mainlyhave higher unemployment rate. Thus, UK government enforced the different employmentpolicies for lowering or reducing the rate of unemployment and creating the job opportunitieswithin the environment. The UK government economic policy will positively outcome indeveloping the hospitality industry with creating vast job opportunities. For instance, if the neweconomic policies results in changing the interest rates, thus it will results in modifying thepolicies and strategies (Buthe and Milner, 2008). Therefore, in the situation if hospitalityorganization increases the rate of interest visitors will relatively spend low income on consumingthe luxurious and leisure services that are provided by the hospitality organization. On thecontrary, if they reduces the interest rate it will outcome in attracting more travellers and visitorstowards the hospitality organization that directly result in attracting more customers that outcomeon generating high net income. Hence due modification in existing economic policy, hotels hasbeen focusing on the adequate pricing strategies where in the hotel mainly regard the purchasingpower of their guest and customers. Therefore from the entire discussion, it is has been clearedthat government policies often impact the economic position of business organization (Matthews,2005). The affect of UK economic policy is adversely on the business and activities of Hiltonhotel. For instance; with the increase in rate of interest hotel management would modify theirrates that outcome in affecting rate of visitors and customers towards their hotel. However, withthe gain in interest rate management would also not able to take loan from the banks or otherfinancial institutions as due to high rate of interest. On the other hand, if government lowers orreduces the interest rate of the banks it will positively impact the hotel organization in takingloan from the commercial banks and financial institutions at relatively low interest rate that isbeneficial for the organization. UK government economic policy generally focuses on fiscal and monetary policy. Fiscalpolicy is defined as policies that are mainly enforced by the government on the spending ofindividual and taxes. Taxes are consider as the key source that generates revenue for the UKgovernment. Therefore, government has focused on the fiscal policy so that it can positivelyimpact the overall economy. However, the economic policy generally effect the decisions of anindividual regarding spending in the businesses. There are three main stances of the fiscal policy5
that neutral, expansionary and contradictory fiscal policy. The current economic policy of UKgovernment that is fiscal policy generallyaffect the services and hospitality organization that is itdirectly affect the labour productivity within the Hilton hotel. For instance; the increase in the taxrate will directly affect the overall efficiency of individual as taxes are often deducted from theiroverall compensation packages that cut down their productivity. Furthermore, fiscal policy ofUK government also benefit the Hilton hotel in taking effective decisions regarding theirbusiness investment. For example, in the case of lower tax rates and other business taxes Hiltonhotel can investment their capital spending in the business that positively result in expandingtheir services. On the other hand another current governmental economic policy is monetarypolicy that is being defined as technique that is commonly used by central bank of UK to controlthe inflow and outflow of money within the UK. Monetary policy of UK government willdirectly effect the internal and external operations of Hilton Hotel in UK as it brings changes inthe interest rates that are set by the government. Task 3: Discuss income, wealth, employment and occupational distribution in relation to the provision of business and service operationsIn the contemporary marketplace hospitality industry is considered as the emergingindustry as it mainly contribute in increasing the economic GDP (Fernando, 2011). Hospitalitysector mainly focuses on employing large number of employees so that they can satisfy the needsof their customers. Income refers to amount that an employees receive in consideration with theirservices those they renders within the organization. For instance, manager provide sum of moneyto their staff that is waiter in order to compensate their services. However, wealth refers to anabundance or plentiful of valuable and priceless resources that have been occupied with theorganization. Moreover, the wealth may consider as the total market value of their tangible andintangible resources The income in relation to the provision of business and service operations isquite high with the increasing competition in the hospitality sector. With the higher income levelin the hospitality industry employees prefer to stay committed with the organization and renderquality service to attain success in the competitive market. It has also stated that with the changein the economic condition of UK wealth of people also keeps on changing (Carter, 2007).therefore, it will ultimately results in changing the requirement of different hospitalityorganization. It has been also stated that growth of hospitality industry is primarily depends upon6
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Structure and Operation of the UK economy - Assignmentlg...
|12
|5466
|278
External Business Environment Assignment Samplelg...
|11
|4191
|259
External Business Environment Assignmentlg...
|17
|6142
|33
The External Business Environment of UK Economylg...
|22
|6743
|74
External Business Environment : Assignmentlg...
|33
|9694
|586
External Environment- St. James' Courtlg...
|12
|4951
|36