Bank Concentration and Financial Constraints on Firm Investment in UK

The assignment content discusses financial constraints on firm investment in the UK, and explores various aspects of business environment including externalities in social environmental accounting, market structure, and technological change. It also touches upon monetary policy, fiscal policy, and stabilization. Additionally, it covers international business research on foreignness, global strategic management, and entrepreneurial ventures. The content emphasizes the importance of understanding the external business environment, its impact on firm investment decisions, and the need for effective management strategies to navigate these challenges.

EXTERNAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1: Assessing the UK economy’s structure and operations .........................................1
TASK 2: Analyzing the current government economic policy .............................................2
TASK 3 Discussing the income, wealth and employment distribution in relation to the
provision of services ..............................................................................................................4
TASK 4 Analyzing the demographic trends that influence the employment pattern.............5
Task 5 Analyzing the social structure of people who are employed within service industry 5
TASK 6 Influence of local government on UK hotel ............................................................6
Task 7 Evaluating the role of European Union along with its impact on business and service
industry ..................................................................................................................................7
Task 8 Role of pressure groups..............................................................................................8
Task 9 Difference between English and Scottish system ......................................................8
Task 10 Evaluating the legislative process of UK and EU..................................................10
Task 11 Assessing the type and characteristics of business ................................................11
Task 12 Discussing the legal process which is necessary for the formation and dissolution of
registered company...............................................................................................................12
Task 13 Analyzing the structure and process of registered company .................................13
CONCLUSION .............................................................................................................................13

INTRODUCTION
External business environment consists of factors which cause major impact on the work
of enterprise (Meaning of external business environment, 2015). This is because, these factors
are uncontrollable and it cannot be managed by the manager of corporation even after
implementing the number of strategies. Thus, it is necessary for the manager that it must
constantly gather the information regarding different external factors. It is due to the fact that, it
is by complying with the given type of activity only, an effective decision can be taken by the
manager of corporation.
For the present report, famous hotel of UK named as Ritz Carlton is selected. It is a
luxury hotel which was found in the year 1983. Furthermore, the hotel has its operations that are
present in number of countries and thus, different external environmental factors of nation causes
direct impact upon the activities of cited firm. The present report will showcase the impact that
economic policy has on the activities of organization. Furthermore, the report will also state the
impact that activities of European Union have on the operations of service firm. The report will
also evaluate the impact that legislative policies of United Kingdom and other nations have on
the selected hotel.
TASK 1: Assessing the UK economy’s structure and operations
There are number of factors analyzed which will help in determining the structure and
operations of United Kingdom’s economy. It consists of taxation, population, security measure,
regulation and size of UK economy, etc. In accordance with the given context, on the basis of
analysis, it has been identified that with specific reference to GDP (Gross Domestic Product) and
market exchange rate, UK is being counted as the sixth largest economy. Furthermore, the
United Kingdom’s agricultural sector gives 0.7% contribution in the nation's GDP. This nation is
having the fastest growing economy (Brinkman, Navarro and Harper, 2014). United Kingdom
resides at ninth position in the category of world’s largest exporters.
In addition to this, the taxation policy of UK also depicts about the operations of nation.
In accordance with the given context, it is analyzed that the nation’s taxation policy is
transparent and simple. The government of country has framed its taxation policy in such a
manner that will lead to provide significant support to the nation’s modern business practices.
Furthermore, the taxation system of UK perfectly suits with the globalized trading world. The
1

given information assessed is beneficial for the organization that is operating in the country. This
is because; due to the presence of this system, it will become easier for the manager of enterprise
to take an appropriate decision (Chang, Hughes and Hotho, 2011). However, the government of
UK makes constant efforts with regard to perform changes in its existing taxation system. This is
done with an aim to ensure the compatibility of nation’s taxation policy with other external
factors.
In addition to this, United Kingdom is the 22nd largest country by population (United
Kingdom population 2015, 2015). From the population statistics of 2015, it is identified that at
present, UK’s population is around 64,454,853. Furthermore, it has also been analyzed that
majority of United Kingdom’s population is aging. The current demographic of UK may create
problems for the firms which are operating its operation in the country. This is because; in the
given circumstances, it will be difficult for the enterprise to fulfill their young employee’s related
demand in an effective manner (Fernando, 2011). However, with an aim to meet the same,
corporations will have to call employees from other nations. This will raise the cost of respective
enterprise.
British Intelligence Authority has the authority to maintain the security of country. This
agency handles covert activities, espionage and counterterrorism, etc. They also make sure that
the nation will be protected from an ineffective circumstance such as terrorist attract. Through
this way, only agency ensures the safety and security of citizens who are living in country. In
addition to this, UK follows mixed economic system in which all major decisions about the
allocation of scare resources are collectively taken by both government and private firms that are
functioning within country (Fryans and Mellahi, 2015). This system is effective as it works for
the benefit of both nations’ citizens and for the private corporation that is prevailing within
United Kingdom. Besides this, different industries has also given immense contribution in the
United Kingdom economy. For example, travel and tourism industry has played very important
role in raising the economic condition of UK. In this context, on the basis of analysis it is
identified that as per the year 2011 travel and tourism contribution to the total GDP of UK was
101 billion euro which is 6.7 percent of total GDP. In comparison to this, automotive
manufacturing contributes 2.3 percent of total GDP. However, chemical industry contributes
around 4.1 percent of total GDP. Thus, it can be said that among all travel and tourism sector is
2

playing very important role in terms of improving the economic condition of nation in an
effective way.
TASK 2: Analyzing the current government economic policy
Economic policy is regarded as the action that government takes while making decision
in the economic field (Meaning of economic policy, 2015). It covers the areas such as setting the
level of taxation, making the decision about government budget, deciding the interest rate and
establishing control over the supply of money, etc. In this regard, there are two different types of
economic policies assessed which have their impact on the business such as Ritz Carlton hotel. It
consists of fiscal and monetary policy. The detailed explanation regarding the same is depicted
as below: Fiscal policy: It is the mean with the help of which government adjusts its spending level
and tax rate. In simple words, it can be said that fiscal policy influences the
macroeconomic condition of nation. For any country, the given policy plays a very
crucial role. This is because, with the help of this, government of nation controls inflation
improves unemployment rate as well as stabilizes the business cycle. Here, the economic
scenario of nation is changed by performing some adjustment in the tax rates and
government spending (Carroll and Buchholtz, 2014). Thus, it can be stated that the fiscal
policy of UK possess significant impact upon the activity of Ritz Carlton hotel. For
example, the demand of hotel services will be decreased if UK will go through with the
condition like recession. It is the condition which causes direct impact on the purchasing
power of customers and due to this; they avoid using expensive goods and services. Here,
with an aim to raise the demand of Ritz Carlton hotel services, fiscal policy plays an
important role. The demand of hotel can be increased if government of UK decreases the
rate of service tax. By complying with the given type of activity, government of UK can
raise the demand of all luxury and five star hotels which are prevailing in the country.
Through this way, Ritz Carlton hotel will be impacted in the form of increased profits and
sales (Cong and Hongming, 2012). For example, the current interest rate on bank loan in
UK is 6% which is less than the nation like India. The given thing will provide
opportunity to the hotel with regard to get the higher loan from the UK market. However,
the current corporate tax in UK is 20%. The given thing will lead to cause the significant
impact upon the profits of the firm. The thing will also force the enterprise with regard to
3

charge the high prices upon the services as being given by corporation in an effective
way.
 Monetary policy: It is the macroeconomic policy which is used by the monetary authority
of country with an aim to control the supply of money in an effective manner (Meaning
of monetary policy, 2015). Main objective of monetary policy is to control or stabilize the
price level. The monetary policy of UK is maintained by performing varied types of
actions such as modification in interest rate, changing the bank amount and selling the
bonds of government, etc. The activities of Ritz Carlton hotel is influenced through the
demand and supply of money. Customers will prefer to spend more money in the
circumstances when government increases the supply of money. In this situation, the
sales and profitability condition of hotel can be improved. In the similar way, demand of
Ritz Carlton hotel services will be decreased when government controls or decreases the
supply of money (Giechaskiel and et. al., 2012). Overall, it can be said that fiscal and
monetary policy of country plays an effective role in influencing the economic condition
of nation.
TASK 3 Discussing the income, wealth and employment distribution in relation to the provision
of services
The type of services as being given by the firm largely depends upon its customers
income and wealth. Income is the money received by the person on regular basis in return of
doing some work. With the help of income, individual will be able to direct its efforts with
regard to fulfill its needs and demands in an appropriate manner. Ritz Carlton hotel is the
luxuries hotel which delivers its services at high prices. The services which firm give cannot be
afford by all type of customers (Hamilton and Webster., 2015). Thus, the people who belongs to
the upper income class can be consider as the buyer of respective firm. In this context, it can be
said that the provision of Ritz Carlton hotel services thoroughly depends upon its upper income
class customer only. So, with an aim to maintain the satisfaction of these customers manager of
cited firm tend to direct its efforts with regard to enhance the quality of services which is being
delivered by it. In this context, there are some facts and figures is being identified with specific
reference to the Great Britain. The individual who resides in the upper income class category has
44% of the total aggregate wealth. Likewise, 55% of the people who reside in the lower income
category had no wealth. The given thing will lead to cause necessary impact upon the provision
4

of services as being given by firm. Here, on the basis of available customers only Carlton has to
set the prices for its services. This is because, if not settled at that time it will become difficult
for the firm with respect to attract different type of customers towards the firm in an effectual
manner. Here, with an aim to perform the same firm take assistance from different quality
measures. In addition to this, Ritz Carlton hotel take regular feedback from its customers. This is
done with an aim to perform necessary changes in the services of hotel (Joardar, Kostova and
Wu, 2014).
In addition to this, the wealth of company is also affected through the type of services
which is being provided by the manager of Ritz Carlton hotel. Wealth is the value or worth of all
assets which is being owned by the person or individual. The wealth of the company largely
depends upon the services which is being given by firm to its respective buyers. For instance,
manager of Ritz Carlton hotel does not deliver high quality services to its buyers in return of
taking their huge money. The given type of circumstance will tend to cause direct impact upon
the satisfaction level of buyers. As a result of it they will not prefer to gain use the services of
hotel in an effective way (Klapper and Parker, 2011). Due to this, wealth of Ritz Carlton hotel
will be affected in a negative way. However, wealth of hotel can be enhanced by giving high
quality services to the buyers. Through this way, firm can enhance the satisfaction level of its
customer. As a result of it they will be influenced with respect to gain use the services of
corporation and because of it cited company can get benefit in the form of increased profits and
sales.
The services as being given by firm also depends skills and capabilities of employees.
Here, with an aim to give an immense experience of luxury hotel services to the buyers, cited
firm will require number of workers such as house keeping staff, HR manager, receptionist and
highly qualified chef etc. The services which is being given by these individuals largely depend
upon their skill (Lenza, Pill and Reichlin, 2010). Thus, it is being require by the firm that it must
take constant efforts with regard to enhance the skills of its employees. This can be done by the
manager of Ritz Carlton hotel by organizing continuous training and development programs for
the workers. With the help of these programs, improvement in that particular skill of workers can
be carried out in which they are hindering. Due to this, employees of cited hotel will be able to
carry out their efforts with respect to deliver their best performance to the respective customers.
With respect to employment, it is assessed that 6% of the individuals works in the sales
5

and customer service occupation. This depict that Ritz Carlton has very small number of
workers who will be employed by it when it has vacancy in hotel.
TASK 4 Analyzing the demographic trends that influence the employment pattern
It can be evaluated that there are varied demographic trends that influence the
development and changes which may occur among the individuals within enterprise. It involves
age, income, gender and marital status etc. which are some effective demographic trends.
However, in regard to this it can be stated that employment patters within hospitality sector is
influenced by the demographic trends prevailing within nation. For example, the manager of Ritz
Carlton is required to recruit young and skills workers in order to carry out the operations at
reception counter (Mariappanadar, 2012). However, it can be assessed that the given objective
will not be able to fulfill by business if the prevailing demographic trends of the country possess
more number of old people as compared to young individuals. Hence, employment patterns
possessed by Ritz Carlton is highly influenced through the current demographic trends of
country.
Another demographic factor is income level, in which workers who fall under lower
income group are needed to search for better job opportunities while individual who possess high
income group will not prefer to leave the job for long time period. Thus, it will affect the
employment patterns of hospitality firm. Furthermore, if any individual is highly qualified
obtaining different skills and abilities will not prefer to work on lower grades such as reception
counter or room attender (Milner and Tingley, 2011). Therefore, it is crucial for the management
of hotel to provide appropriate job position as per the skills and abilities of worker so that desired
goals can be attained. Additionally, it is essential for hotel that they should carry out anti-
discrimination policy that assists them to not discriminate the workers on the basis of age, gender
or religion. Further, they should provide them equal opportunities that helps in improving their
performance so that required growth and development can be attained (Singh and Mahmood,
2014). Increase in the percentage of elderly population is another demographic trend which will
influence the employment pattern in the hospitality industry. In this context, it has been assessed
that UK is the country where majority of population resides in the age category of 50- 70. The
given thing will lead to affect the employment pattern of Ritz Carlton. For example, hotel has set
the specific percentage of employees which needs to be recruit by it from the nation where it is
working its operation. The firm will have to change the given employment policy if country
6

possess majority of old age population. Due to this factor, firm will have to carry out the
recruitment of employees from other nation.
Task 5 Analyzing the social structure of people who are employed within service industry
The social structure of Ritz Carlton employees who are working within corporation is
being analyzed as well as evaluated. Social structure of people entail about the pattered social
arrangement in society. It basically gives information about the age, gender, caste and religion of
people who are living in society. It is very important for the firm that it must gather the
information about the social structure of its employees. This is because, with the help of given
information an effective human resource plan can be developed by firm (Titheesawad, 2012).
In accordance with the given context, on the basis of analysis it has been identified that
the Ritz Carlton hotel possess combination of both old and young employees. In this regard, it is
also analyzed that manager of hotel make efforts with respect to establish the balance between
the young and experienced employees. Ritz Carlton needed experience employees with an aim
to resolve the critical problems which may occur within enterprise. In addition to this, the given
type of worker will also provide assistance in making the right and appropriate decision about
the company (Meade, 2012).
On the other hand, Ritz Carlton also has the team of young and talented workers. These
workers help in giving the innovative and creative ideas to the company. Here, it is with the
assistance from the given type of employees only, firm has build the positive brand image in the
mind of its respective buyers in an effective way. In addition to this, Ritz Carlton does not
discriminate its employees on the ground of age, caste and religion etc. Thus, it possesses the
team of such employees who belongs to different religion and caste. The social structure of
people can also be analyzed with the help of ABC 1 social grading system. In this context, it is
assessed that hotel give employment to the following type of people who resides in different
categories:
A: managerial and professional
B: Intermediate manager
C1: Supervisor
C2: Skilled worker
D: Semi skilled and unskilled workers.
7

In addition to this, manager of Ritz Carlton follows different type of employment
practices. It consists of part and full-time employment. The part-time employment approach is
being used by the hotel during the peak season when its services are highly in demand. Through
this way, firm can save its cost of maintaining its employees.
TASK 6 Influence of local government on UK hotel
Before assessing the impact of local government on the cited firm, the detailed
description regarding the structure is presented. The local government of England is being
divided into parts such as county council and district, borough or city council. However, in some
parts of the country there is only one unitary trier of local government is being seen. It consists
of unitary authorities, London Borough and metropolitan borough etc. The local government of
England is responsible for the different type of services. For instance, decision regarding the
transportation, waste management, education and trading is taken by county council. In the
similar way, the responsibilities related to tax collection, recycling and housing is fulfilled by the
city council. The given government causes necessary impact upon the work of Ritz Carlton. For
example, county council handles all the waste management functions. Thus, it encourages the
firm to comply with the same. However, if not complied then in the given situation direct impact
will be seen upon the operation of the enterprise in an effective way.
The local government of UK is intended to develop an effectual relationship with public
and for that develop effectual rules and regulations in order to provide greater advantages to
residents of country. However, in regard to this it can be stated that both the structure and
operation followed by the UK government that causes necessary impact upon the Ritz Carlton
hotel. UK government carries out varied functions such as country council, district council and
London Boroughs etc. All these authorities plays a major role in order to influence the operations
of hospitality firm (Mugurel-Alin, 2014). For instance, before introducing any new type of
products or services within country hotel is required to undertake prior permission from
government. It helps them to carry out best results in the form of success and thus attain
objectives. Hence, it became challenging for Ritz Carlton to introduce new range of products or
services within firm if the responsible authorities deny to grant permission to operate the same.
Furthermore, the rules and regulations formulated by the local council affects the
operations carried out by the hospitality sector within UK. For example, UK government has
passed certain legislation in regard to develop varied sustainability measures that helps in
8

minimizing the impact of hotel on environment (Pizam, 2010). Thus, in regard to overcome this
business is required to undertake varied measures so that performance of firm can be enhanced.
On contrary, if required improvements have not been taken then the UK government has full
right to cancel the permit of the running the hospitality business all around the world. Therefore,
it is stated that business is required to effectively follow the rules and regulations framed by the
UK government in order to attain desired goals.
Task 7 Evaluating the role of European Union along with its impact on business and service
industry
European Union is the politico and economic union that consists of 28 member states.
The EU operates through super national institution. The members who works within the given
union has the objective to formulate the regulations for the country which are operating its
function in the European region. In this regard, it has been identified that the law which
European Union frames possess significant impact upon the business as well as service industries
(Claessens and et. al., 2010).
In order to explain the given point, number of examples are quoted from the legislation
which are being framed by the members of EU. The organization has formed regulations with
respect to the labors who works in the company. This policy work for the benefit of workers. In
this regard, the given policy depict that firm must carry out its efforts with regard to provide an
effectual environment of working to the employees. This policy saves employees from being
exploited by the employer of firm. Thus, it can be said that the given policy has its implications
upon Ritz Carlton Hotel. This is because, it forces firm to make such type of measure which
ensure the safety and security of the person (Dascalu and et. al, 2010). This can be done by the
manager of Ritz Carlton Hotel by performing necessary changes in its human resource policy.
Furthermore, the European Union has also formed the competition policy of United
Kingdom. This policy is formed with an aim to build a favorable competitive environment within
country. In this context, the given policy depict that the enterprise must use fair and suitable
method with an aim to compete with the respective competitor. The application of given policy
restrict the cited firm with respect to adopt an ineffective method for competing with the other
hospitality corporations (Fernando, 2011). As a result of it, firm has to comply with all ethical
practices while framing strategy for competing with some other firm functioning within country.
9

Task 8 Role of pressure groups
It can be stated that pressure group is the type of group that do not put any candidate for
election but affects the regulations being framed by the government of country. However, such
group possess the ability to affect the rules and policies imposed by government in UK.
Therefore, it is essential for UK government to involve such groups in business so that best
outcomes can be provided in order to achieve results. Such type of group also protest against the
major causes that occurs within nation (Abubakr and Esposito, 2012). For instance,if pressure
groups found that the local environment of country has been affected due to ineffective
environmental protection practices being carried out by Ritz Carlton that it affects the
functioning of firm within UK. Thus, in order to deal and overcome such situation pressure
group will impose force upon business to gain best results.
On the contrary, if pressure group found that UK government is imposing bad policies
and regulations on hotel than they can affect the government by cooperating with hotel to not
follow the regulations. Therefore, it is essential for both hotel management and government to
carry out best practices so that pressure group does not influence the operations of firm in UK
market. Ritz Carlton is also required to undertake effectual measures so that they can overcome
the issues faced by them in regard to pressure group (Jones, Hillier and Comfort, 2007).
Furthermore, such group also organizes different campaigns such as protecting food from
contamination and disposing waste at safe place etc. Thus, through carrying out such campaigns
it forces business to enhance the type of services being offered by firm. Therefore, it is essential
for business to follow all the rules and regulations formulated by the pressure groups.
Task 9 Difference between English and Scottish system
It involves varied type of legal systems assessed within business that needs to be
followed by UK system. Northern Ireland, Wales and Scotland etc. are the countries which are
required to follow such type of legal system so that best results can be attained. However,
European Union is accountable in regard to formulate different legislation that helps in taking
major decision for the nation (Kew and Stredwick, 2005). Additionally, it can be assessed that
there are two different courts which have been identified in UK i.e. criminal and civil court.
Furthermore, it can be identified that civil court possess magistrate family court, chancery
division and Queen's Bench etc.
10

Following is the comparison which is being assessed among English and Scottish system.
Below given is the detailed description regarding the same-
Basis English system Scottish system
Responsibilities It can be stated that the
regulatory authorities are
responsible to the act carried
out by them.
While, the regulators here does
not possess the right to
prosecute their rights but they
can breach the issues.
Formal cautions Here, the regulators are
required to carry out their duty
in regard to publish formal
cautions while carrying out
their process of prosecuting.
In the Scottish system they do
not consider the stated type of
cautions.
Legal system Such system follows common
law (Manral, 2010). In
English law the children under
the age of 18 are protected
from the legal cases. Both
hotels and bars have the legal
power with regard to serve the
alcohol 24 hours a day.
While, such system complies
with both civil and common
law. In the Scottish law the
children under 16 are protected
from legal cases. As per their
law only hotel have the
authority with regard to serve
the alcohol 24 hours a day.
Witness statement They play crucial role at the
time of carrying out criminal
process and acts such as
evidence.
Such system does not consider
as evidence in the court of law.
Thus, from the above discussion it can be stated that both English and Scottish system
differ from each other. Also, they both possess different legal system like English system follows
common laws while, Scottish system follows both common and civil laws (Smith, 2008).
Moreover, they also possess varied responsibilities in order to regulate the laws and attain
11

desired targets. Thus, it can be conferred that both the English and Scottish systems carry out
different legal frameworks.
Task 10 Evaluating the legislative process of UK and EU
Following is the legislative process which is being followed by the UK and EU. Thus, it
influences the operations of Ritz Carlton at both local and national level. In regard to this it has
been evaluated that the legislative process being followed by the European Union is more
complex as compared to UK system. Government of UK introduces different laws and
regulations in order to protect the hospitality business. There are different legislation being
followed by business such Minimum Wage Act, 1998 and Environmental Protection Act etc.
Business is required to undertake Minimum Wage Act so that it assists employees to receive
appropriate wages form Ritz Carlton and thus do not affect their employment rights. However,
the implication of such act affects the business enterprise in order to follow proper wage rate so
that employees right does not get affected (Mendonça and Pires, 2010).
Furthermore, if business fails to perform such act then individual possess the full right to
file complaint against the hotel. As compared to this, European Union undertakes different types
of legislative practices such as Right to Equality and Right to Employment etc. For instance, it is
essential for business to undertake such right in order to carry out effectual practices and satisfy
the needs of workers to attain best results. The Right to Equality act states that business should
not discriminate among their employees and thus provides equal opportunities to them. However,
they should consider the skills and capabilities of their workers and provide them proper tasks so
they can provide best services in order to satisfy the needs of workers. However, if assessed that
business carries out discrimination among its workers then EU authorities possess the power to
undertake appropriate action against hotel.
Task 11 Assessing the type and characteristics of business
There are different types of business operates within the hospitality industry. However,
these all given business pursue the main objective that is to give high quality of services to the
buyers. This is because, it is by complying with the given type of activity only firm such as Ritz
Carlton can maintain the motivation as well as satisfaction level of its customers. In this regard,
following are the type of business identified which function within hospitality industry. The
detailed explanation of the same is depicted in below:
12

 Food and beverage: The structure of hospitality industry possess the given sector also.
This includes the business such as club, restaurants and bars etc. This particular section
helps in fulfilling the food related needs and demands of both domestic and international
buyers. Here, with an aim to provide high quality of food services to the buyers, these
firms follows all the food quality related rules and regulations. The selected firm such as
Ritz Carlton also possess this section (Oberholster, 2010). Producing and offering the
best quality food to the buyers is being regarded as the main feature of this section. Accommodation: It another most crucial element of hospitality. It includes the firm such
as villas, lodgings and hotels etc. These all given business helps in fulfilling the room
related demand of customers. To give utmost quality of services to the client is being
regarded as the major feature of given business. They also make sure that the personal
information of workers remains confidential. Travel agent: All the travel agents also resides in the given category. They book the
ticket as well as arranges holiday travels for the buyers. To resolve the traveling related
query of buyers is being consider as the major feature of this business (Perry, Serven and
Suescun, 2008). Sole trader: It is the individual who set up ans run its own business. This individual have
full control over its business. Thus, it can be regarded as the major advantage of the given
type of enterprise. However, sole trader have very limited capacity with regard to raise its
profits within short period of time. Partnership: It is the type of business in which two or more person make investment and
pool skills and resources with an aim to achieve high profits. Here, an individual alone do
not have any control over the enterprise which is being consider as biggest disadvantage
of given form of business. However, by adopting the given form of business firm will not
face any problem with regard to raise their capital from the different sources in order to
start the new business. Private company by shares: It is the private limited company in which firm gives its
share to the shareholders and thereby it delivers some ownership to them. Through this
way, firm fulfill its money related requirement. It is being regarded as one of the most
popular method of obtaining finance. However, by using this form of business firm tends
to lose its control over the operation.
13

 Private company by guarantee: It is the type of business in which firm do not have any
shareholders. Here, liability of members of company is very limited.
 Public limited company: It is the company whose objective is to work for the benefits of
each members of society. The advantage of this form of business is that firm can raise the
large amount of capital within a very short period. But, while adopting given business, an
individual has to follow different legal obligations such as public limited company must
have at least 2 directors.
Task 12 Discussing the legal process which is necessary for the formation and dissolution of
registered company
The individual who make decision with regard to open the new company or enterprise
has to follow certain legal procedure. This is because, if not followed then the company
formulated will not being consider as the valid company. In accordance with the given context,
following steps identified which needs to be followed by manager while forming new registered
company: Memorandum of association: The process of forming the registered company starts with
the memorandum of association. In this document, detailed description regarding the
name of company, location of firm head quarter and liability of the parties will be
provided. It is very essential for the corporation with regard to form the given type of
document. This is because, with the help of given document only, the company can be
establish in an effectual way (Stackelberg and et.al., 2010). Articles of association: After preparing the memorandum of association, in the next step
manager of corporation will prepare the article of association. The given document
specify about the rules and regulations which is being followed by the respective
company. This document is effective as it helps in setting the direction of company
towards the ethical and regulatory path. Form 10 and form 12: On preparing the both type of document, in the next phase the
respective individual will have to prepare the two different type of forms. The form
number 10 give information about the date of birth of members, home address of
members and passport number etc. In the similar way, the form number 12 is the type of
declaration. Here, the respective director of firm will give the declaration that in the event
of bankruptcy they will be consider as accountable.
14

 Deciding the company name: After fulfilling all the given things, in the last phase the
name of company will be decided.
Besides this, following steps identified which needs to be followed by manager while
dissolving the registered company (Fernando, 2011). Creditor’s voluntary liquidation- In the given form of dissolution, stakeholders as well
as director of company mutually make decision that whether they want to dilute the
company or not. In the given form of liquidation, members do not possess any liability
with regard to pay the loan as well as debt of company.
 Member’s voluntary liquidation- This form of dissolution occur when board of director
of company give statutory declaration of solvency. Here, members will be consider as
liable for the payment of loan and debt of company.
Task 13 Analyzing the structure and process of registered company
The company with limited structure possess the members such as director, secretary of
company and shareholder etc. The given person has to abide number of roles and responsibilities.
For instance, broad of director of the firm will be held responsible for arranging annual meeting
of company. They are responsible for the shareholder of company. In addition to this, they make
all the important decision about the firm and guide it towards the increase sales and profits.
Furthermore, broad of director of the firm also give timely and important information to the
stakeholders. Here, it is by complying with the given type of activity only corporation maintains
the satisfaction of its stakeholders (Mendonça and Pires, 2010).
On contrary to this, secretary of company has to fulfill different type of roles and
responsibilities. This make sure that enterprise must comply with all legal practices as well as
financial standards. Furthermore, shareholder of firm assist manager in the process of making the
decision about the company in an appropriate manner. In addition to this, the firm organizes
different type of meetings such as statutory meeting, annual general meeting and meetings of
members etc. These type of meeting is arranged by the broad of director of company.
Shareholder of the firm have the voting right. Their votes will be taken in the general meeting of
the company.
15

CONCLUSION
Articulating all the facts and figures from the whole report it can be concluded that it is
very necessary for the manager that it must gather the information about the factor which are
operating in the external environment of company. This is because, by gathering the information
about the given factor an effective decision can be taken by the manager of cited hotel. In
addition to this, by getting the information about the current economic policy of country manager
of Ritz Carlton hotel can form varied type of strategies with an aim to deal with the same in an
effectual way.
In the similar way, in order to make an appropriate employment decision, it is being
require by the hotel manager that it must gather the information about the population
demography of country. Through this way, firm can make decision that whether there is a need
to recruit employees from outside the boundary of nation or not. Furthermore, by improving the
knowledge regarding the legislation followed within country, manager of Ritz Carlton hotel can
set its direction. Moreover, it is through this way only hotel can form such type of business
strategy which abide with the rules and regulations of the country.
16

REFERENCES
Books and Journals
Abubakr, S. and Esposito, F., 2012. Bank concentration and financial constraints on firm
investment in UK. Studies in Economics and Finance. 29(1). pp.11–25.
Brinkman, J. Navarro, I. and Harper, D., 2014. Unblocking the Business Environment.
Routledge.
Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and stakeholder
management. Cengage Learning.
Chang, Y. Y., Hughes, M. and Hotho, S., 2011. Internal and external antecedents of SMEs'
innovation ambidexterity outcomes. Management Decision. 49(10). pp. 1658-1676.
Claessens, S. and et. al., 2010. Cross‐country experiences and policy implications from the
global financial crisis. Economic Policy. 25(62). pp. 267-293.
Cong, C. and Hongming, X., 2012. The relationship among external business environment,
green business strategy, and competitive advantage by taking environmental performance
as a moderator. Science Research Management.
Dascalu, C. and et. al, 2010. The externalities in social environmental accounting. International
Journal of Accounting & Information Management. 18(1) .pp. 19–30.
Fernando, A. C., 2011. Business Environment. Pearson Education India.Baldwin, W. and Scott,
J., 2013. Market Structure and Technological Change. Taylor & Francis.
Fernando, C. A., 2011. Business Environment. Pearson Education India.
Fryans, G. J. and Mellahi, K., 2015. Global Strategic Managment. Oxford University Press.
Giechaskiel, B. and et. al., 2012. Measurement of automotive nonvolatile particle number
emissions within the European legislative framework: A review. Aerosol Science and
Technology. 46(7). pp. 719-749.
Hamilton, L. and Webster., 2015. The International Business Environment. Oxford University
Press.
Joardar, A. Kostova, T. and Wu, W., 2014. Expanding international business research on
foreignness: A viewpoint. Management Research Review. 37(12) .pp. 1018–1025.
Jones, P., Hillier, D. and Comfort, D., 2007. Changing times and changing places for market
halls and covered markets. International Journal of Retail & Distribution Management.
35(3). pp. 200–209.
Kew, J. and Stredwick, J., 2005. Business Environment: Managing in a Strategic Context. CIPD
Publishing.
Klapper, L. F. and Parker, S. C., 2011. Gender and the business environment for new firm
creation. The World Bank Research Observer. 26(2). pp. 237-257.
17

Lenza, M. Pill, H. and Reichlin, L., 2010. Monetary policy in exceptional times. Economic
Policy. 25(62). pp. 295-339.
Manral, L., 2010. Towards a theory of endogenous market structure in strategy: Exploring the
endogeneity of demand-side determinants of firm investment strategy and market structure.
Journal of Strategy and Management. 3(4). pp. 352–373.
Mariappanadar, S., 2012. The harm indicators of negative externality of efficiency focused
organizational practices. International Journal of Social Economics. 39(3) .pp.209 – 220.
Meade, J. E., 2012. The intelligent radical's guide to economic policy: the mixed economy.
Routledge.
Mendonça, H. F., and Pires, M. C., 2010. Gradualism in monetary policy and fiscal equilibrium.
Journal of Economic Studies. 37(3). pp. 327–342.
Milner, H. V. and Tingley, D. H., 2011. Who supports global economic engagement? The
sources of preferences in American foreign economic policy. International Organization.
65(01). pp. 37-68.
Mugurel-Alin, M., 2014. The management of external business environment interaction with the
company. Methods.
Oberholster, S. J., 2010. War on savings: modern monetary management in crisis. Journal of
Financial Regulation and Compliance. 18(3). pp. 201–223.
Perry, G., Serven, L. and Suescun, R., 2008. Fiscal Policy, Stabilization, and Growth: Prudence
Or Abstinence. World Bank Publications.
Pizam, A., 2010. International Encyclopedia of Hospitality Management. Butterworth-
Heinemann.
Singh, H. and Mahmood, R., 2014. Manufacturing Strategy and Export Performance of Small
and Medium Enterprises in Malaysia: Moderating Role of External
Environment. International Journal of Business & Commerce. pp. 3(5).
Stackelberg, H. V. and et.al., 2010. Market Structure and Equilibrium. Springer.
Titheesawad, I., 2012. The External Ties of Boards of Directors and the Execution on Directors'
Function. AU Journal of Management. 10(1).
Online
Meaning of economic policy. 2015. [Online]. Available through:
<http://economictimes.indiatimes.com/definition/macroeconomic-policy>. [Accessed on 5th
November 2015].
18

Meaning of external business environment. 2015. [Online]. Available through:
<http://smallbusiness.chron.com/five-components-organizations-external-environment-
17634.html>. [Accessed on 5th November 2015].
Meaning of monetary policy. 2015. [Online]. Available through:
<http://kalyan-city.blogspot.in/2010/09/monetary-policy-its-meaning-definitions.html>.
[Accessed on 5th November 2015].
Smith, M., 2008. The Legal System of Scotland. [PDF]. Accessed through
<http://www.consumerfocus.org.uk/scotland/files/2009/10/LSOS-Text-2008-Final-
LORES-4th-ed.pdf>. [Accessed on 5th November 2015].
United Kingdom population 2015. 2015[Online]. Available through:
<http://worldpopulationreview.com/countries/united-kingdom-population/>. [Accessed
on 5th November 2015].
19