External Business Environment - Intercontinental hotel UK
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Added on 2020-01-07
External Business Environment - Intercontinental hotel UK
Added on 2020-01-07
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EXTERNAL BUSINESS ENVIRONMENT1
TABLE OF CONTENTSINTRODUCTION ..........................................................................................................................4TASK 2............................................................................................................................................42.1 Discuss the structure, operations and influence of local government on a major UK group......................................................................................................................................................42.3 Role and influence of the EU and its impact on business and service industry ...................62.3 Assessing the roles of pressure groups and their political influence in relation to nationaland local issues in regards to hospitality industry.......................................................................72.4 Analyzing the legal framework within the UK, identifying the main difference between theEnglish and Scottish systems.......................................................................................................82.5 Evaluating the UK and EU legislative process and its impact on IHS at local andinternational level......................................................................................................................10TASK 3..........................................................................................................................................113.1 Assessing the various types and characteristic of business that operate in hospitality sector....................................................................................................................................................113.2 Discussing the legal processes necessary for formation and dissolution of registeredcompany.....................................................................................................................................133.3 Analyzing the structure and process that determine the responsibilities and control ofregistered organization ..............................................................................................................14CONCLUSION ............................................................................................................................14REFERENCES .............................................................................................................................162
INTRODUCTION External business environment of an enterprise refers to those elements outside the scopeof organization that impact the business ability to function in different market. These factors arebeyond the control of organization therefore, proper consideration must be given on them.Further, few of the external factors can be influenced by organization's marketing, whereas forothers, company needs to make some modifications (Brinkman, 2014). Various external factorsthat can impact the functions of company are, customers, competitors, technologies, government,economic variables, social and monetary system etc. In this respect, economic system relates tothe distribution of meager resources while monetary system assists in business dealings andexchange. Further, social system deals with factors like, attitude, behavior, lifestyle, poverty,unemployment of society and individuals residing in it. These factors have direct and strongimpact on the function ability of business entity. In this report, various aspects of externalenvironment will be studied in the context ofIntercontinental hotel group (IHG).IHG is a UK based hotel renowned for providing effective and impelling hospitalityservices in around 100 countries. IHG is a conglomerate which owns seven famous brandsincluding Crowne plaza, Holiday Inn, Candlewood suites etc. The organization has assets inform of up to 726,876 rooms in around 5000 hotels. IHG is also regarded as the largest group ofhotel in terms of number of rooms. The business generated over $1,858 mn in 2014 (About us.2016). In the present report, explanation will be provided on the structure, operations andinfluence of local government on major UK group. Further, role and influence of the EU and itsimpact on business and service industry will be explained. Also, learning will be shownregarding the legal processes that are important for the formulation and dissolution of aregistered organization. Thereafter, legal framework within the UK will be analyzed. TASK 22.1 Discuss the structure, operations and influence of local government on a major UK group.Local government is a type of public administrative body that works under the lowestlevel of management within a provided state. The duty of local government is to perform variousfunctions at local level within the powers assigned to them by UK legislation. Local governmentplays a major role in generating employment, administrating education of children, collecting3
local tax and using same in ensuring development of particular region. Further, various rules andregulations are laid down by local government that have direct impact on the operations ofbusiness (Britton, 2009). For instance, IHG wants to expand its business within London,therefore it is required to take permission from local authorities. In this respect, if local authorityrefuses to give permission then it can restrict the domestic growth of company. Likewise,increase in local tax rate can lower the profitability of company and further influence it toincrease its prices. Thus, structure and operations of local government have direct impact on thefunctioning of InterContinental hotel groups. Further, it has been identified that various businessoperations of hotel are affected by working practices and policies of local councils. Therefore,company is forced to make viable adjustments in its business policies and strategies.Structure and operations of local government In this respect, there are various councils having predominant position in the UKeconomy like, county, district, unitary authorities etc that affect the functions of hotel. It mayfurther involve other authorities and councils like, London boroughs and metropolitan authoritiesetc (Carter, 2007). The county council looks after the development of entire country and isaccountable for the services like, education, waste management, social well-being of membersetc. Thereafter, district council deals with recycling of waste, local tax collection, housing etc.Further, unitary council is responsible for the entire services provided by county and districtcouncils. Thereafter, London Boroughs and metropolitan authorities are responsible for thestrategic planning like, development of highways, improving transportation, monitoring local taxcollection etc. Overall, there are 426 local governing bodies working in the UK economy (Localgovernment of UK., 2015). Influence of local government on the operations of IHGThe local authority of UK has direct impact on the operations of hotel. Local authority isforcing IHG to provide more employment and career opportunities to the local individuals. Inthis respect, company is collaborating with big business schools so that off the job training canbe provided to the students (David, 2000). However, organization is forced to generateemployment opportunities first in home country. Thereafter, local authority also impels hotel toset up waste management system to reduce non-recyclable litter in the UK. This is furtherincreasing the overall cost of IHG as company is required to invest significant amount in4
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