External Business Environment Assignment

External Business
Environment
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1: STRUCTURE AND OPERATIONS OF UK economy .................................................3
task 2: Current government economic policy and their affect.........................................................4
task 3: Income, wealth, employment and occupational distribution in relation to provision of
business............................................................................................................................................5
task 4: The demographic trends that influences employment patterns............................................6
task 5: The social structure of people employed in a major UK hotel group .................................7
task 6: the structure, operations and influence of local government on major UK group...............7
task 7: The role and influence of EU and its impact on business and service industry ..................8
task 8: The role of pressure groups and political influence in relations to national and local issues
..........................................................................................................................................................9
Task 9: legal framework within the UK and difference between English and Scottish systems.....9
task 10: The UK and EU legislative processes .............................................................................10
task 11: Different types and characteristics of business that operate within hospitality sector.....11
task 12: Legal process necessary for formulation and dissolution of a registered company.........12
task 13: The structure and processes which determine the responsibilities and control within a
registered company .......................................................................................................................13
CONCLUSION .............................................................................................................................13
References......................................................................................................................................14
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INTRODUCTION
Business environment consists of different aspects that directly and indirectly affect the
operations of business. It basically includes internal and external factors which impact the
business (Wang, Chen and Chen, 2012). Internal factors are controllable factors that affect
company functions which mainly include employees, management, business regulations etc.
another important factor of business environment is the external factors as these are the factors
which are uncontrollable in nature and these factors exists outside the business and affect their
external business. External factors consist of change in demographic trends, political norms;
economic stability of the region etc. and manager have no control on these factors. However,
business organization may frame strategies to minimize the effect of external business factors on
the business. The present report key focuses on external business environment of fastest growing
service industry that is UK hospitality industry. The external business environment primarily
affects the planning, directing and controlling of hospitality organization.
However, the present report also covers different sections that impact of socio-economic
change on the improvement of organization operating in the hospitality industry. In addition to
this, report will also measure or analyze contemporary economic policy of UK government and
their effect on organization as well as on overall service industry.
TASK 1: STRUCTURE AND OPERATIONS OF UK ECONOMY
As per the calculated nominal GDP, UK economy is considered among the 6th largest
economy in Europe region and it has also ranked as the 7th largest service industry in the whole
world. The service industry of UK mainly contributes in resource which further helps in
enhancing the economy condition of UK (Adeoye and Elegunde, 2012). This leads to increasing
the standard of living of the individual residing in UK. In the year 2008, UK economy has faced
strong financial crisis which changed the overall scenario of the country. It lowered down the
income level and standard of customers which resulted in reducing the purchasing power of the
customers. Therefore, the situation of financial crisis has negatively impacted the hospitality
industry of UK.
There are different types of market structures existing in UK economy that mainly
include perfect competition, imperfect competition, oligopoly etc. For instance, the hospitality
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industry of UK focuses on perfect competition market structure as large number of customers
and competitors exist in the market. The UK economy deals in different operations within
hospitality industry so that they can satisfy or meet different requirement of their customers
(Gupta, 2013). The hospitality industry of UK economy focuses on different operations and
dealings which are lodgings services, restaurants, pubs & bars, travel and tourism, airlines,
banqueting and conferencing etc. all these services within the hospitality industry contribute in
the UK economy and also helps in developing the economy. Therefore, UK hospitality sector
primarily contributes in the up-liftment and development of UK economy and thus, it result in
creating different job opportunities for unemployed individuals of UK. However, it has been
measured that international travellers prefer to visit UK destinations. Thus, hospitality industry
contributed around £4.25bn within the UK economy (Neubaum, Dibrell and Craig, 2012).
There are several other corporation which contributed towards growth of UK economy.
Here, the aviation industry of UK contribute towards economic growth of nation is £52bn.
Further, tax generated by this industry is £8.7bn and it own supports 327000 job with 241000 job
with aerospace manufacturers. On the other hand, in 2011 food industyr of UK contributed
approximately 7.3% of national gross value added. Furthermore, in 2010 it contributed 7.8%. It
depicts that several industries working in UK are contributing towards economic growth and also
generating huge employment in the nation. In addition to this, fashion industry, retail and auto
mobile sector are also developing at rapid speed and helping nation to ensure continuous growth
and development.
TASK 2: CURRENT GOVERNMENT ECONOMIC POLICY AND THEIR
AFFECT
Government are the one that devise and frame different legislation and laws for the
business organization and the company is required to enforce the law and regulations within their
operations so that it can benefit them in accomplishing the objectives (Lee, 2011). In the regular
interval UK government is modifying or amending the legislation and regulations according to
the external market forces. The main purpose of devising economic policy is to raise sustainable
growth of the economy as this result in enhancing the economic condition of UK by generating
employment opportunities for the unemployed. Therefore, the current economic policy of UK is
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