Monetary Policy and its Impact

This assignment delves into the multifaceted world of monetary policy. Students are tasked with analyzing the core principles and mechanisms of monetary policy, evaluating its influence on business environments and economic growth. The assignment encourages critical examination of various viewpoints and schools of thought surrounding this crucial economic tool.

EXTERNAL
BUSINESS
ENVIRONMENT
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Table of Contents
EXTERNAL BUSINESS ENVIRONMENT..................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in PPT.......................................................................................................................3
TASK 2............................................................................................................................................3
2.1 Influence of local government on Marriott......................................................................3
2.2 Evaluating the role of European Union along with its impact on business and service
industry...................................................................................................................................4
2.3 Role of pressure groups....................................................................................................4
2.4 Legal frameworks within the UK and the main differences between the English and
Scottish systems .....................................................................................................................5
2.5 Evaluation of UK and EU legislative process and its effects on a major UK hotel group’s
business and services at both local and national level ...........................................................6
TASK 3............................................................................................................................................7
3.1 Different types and characteristics of business that operate within the business and
services with a focus on the Marriott International................................................................7
3.2 Legal processes necessary for formation and dissolution of a registered company.........8
3.3 Structure and processes which determine the responsibilities and control within a
registered company.................................................................................................................9
CONCLUSION................................................................................................................................9
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INTRODUCTION
External business environment of enterprise consists of those factors that are outside the
firm and influences its ability to carry out its operations in an effective manner. It can be
assessed that such factors are uncontrollable and even after implementing the strategies, it cannot
be managed by the management of firm. Therefore, it is crucial for the manager of organization
that they should constantly collect the information regarding different external factors and
implement the same in order to attain desired outcomes. With the help of such type of fact, it can
be complied that management is able to take the best decision in regard to not affect planning,
organizing, directing and controlling the different parts of firm (Frynas and Mellahi, 2011).
In the recent study, hospitality industry has been undertaken because it is currently one of
the fastest growing sectors of the economy. Marriott International has been selected which is a
luxury hospitality firm of UK. Moreover, hotel operates in varied destinations and provides wide
range of services to the customers in order to attain their satisfaction. As hotel is operating in
different countries, it is affected by the external environment that causes direct impact upon the
activities of business. Here, it showcases the direct impact upon the socio-economic change on
the development of business. Further, it also affects the legal and political environments upon the
business and service industries. Along with this, statutory requirements are essential for
establishing and developing the business operations in hospitality firm (Gitman and McDaniel,
2008).
TASK 1
Covered in PPT
TASK 2
2.1 Influence of local government on Marriott
Here, the influence of local government upon Marriott hotel is being assessed. However,
the local government of England is being divided into different parts such as county council and
district, borough or city council. Thus, in certain parts of the country it involves only one unitary
trier of local government is being seen. It involves unitary authorities such as London Borough
and metropolitan borough etc. However, it can be assessed that the local government of England
is responsible for different type of services. As the decision regarding the transportation, waste
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management, education and trading etc. is undertaken by the county council. Similarly, the
responsibilities related to the tax collection, recycling of waste and housing facilities etc. is
fulfilled by the city council (Fraser and Pong, 2009).
While, the local government causes essential impact upon the operations of Marriott
hotel. For instance, county council handles all the waste management operations. Thus, it is
essential for hotel to follow the guidelines provided by government to attain desired targets. For
instance, it is essential for hotel to follow the rules and regulations formulated by the UK
government in order to attain results. As all such authorities plays a major role in influencing the
functions of enterprise (Lenza, Pill and Reichlin, 2010). However, before introducing any new
type of products or services within country, hotel is required to obtain prior permission from the
government. Because it helps firm to deliver best services to clients and attain satisfaction.
2.2 Evaluating the role of European Union along with its impact on business and service industry
The role of EU states that it is essential for businesses to follow the regulations
formulated by the country. However, the member who works within the stated union needs to
comply the regulations of the country so that best results can be attained. Thus, it states that the
law derives by the EU possess significant impact upon the business and service industries.
Further, it is essential for the hotel to form different regulations in regard to labor that works
within business. However, such policy works in order to gain advantage for employees so that
they can accomplish objectives. It also helps employees from being exploited by the employer of
business (Mariappanadar, 2012). Thus, it is essential for Marriott to undertake such type of
policy effectively in order to make sure that employees are safeguarded within hotel. EU also
formed competition policy of UK. However, such policy focuses upon the developing
competitive business environment in order to overcome the issues faced by similar industries. It
is essential for firms to follow the laws as per guidelines so that competitors policies cannot be
affected. Thus, business is required to comply with different ethical practices at the time of
formulating strategy in order to compete with certain other business operating within the nation
(Milner and Tingley, 2011).
2.3 Role of pressure groups
Here, pressure group can be stated that such type of group do not elect any person but
influences the regulations which are being formulated by the UK government. Further, such
group also possess the ability that influences the rules and policies imposed by the government.
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Also, it is crucial for UK government to involve such groups in the business so that goals can be
attained. For instance, such groups also carry out their protest against the major causes that
happens within country. Thus, it is essential for Marriott to follow proper environmental
practices so that it does not get affected otherwise it affects the operations of firm within nation.
It also imposes pressure upon the illegal acts undertaken within firm (Giechaskiel and et. al.,
2012). However, it is crucial for both hotel and government to execute effective policies so that
influence of pressure group does not affect its functioning. Pressure group also organizes
different campaigns such as protecting food from contamination, waste management, safety of
workers etc. Thus, it is essential for hotel to follow different rules and regulations formulated by
the pressure group in order to function well. Hence, by carrying out such campaign it forces firm
to improve the services and products being offered and attain desired targets (Hult, Hurley and
Knight, 2004).
2.4 Legal frameworks within the UK and the main differences between the English and Scottish
systems
UK government has formed various rules and regulations and it is essential to
follow in order to maintain the authenticity. There is varied range of legal frameworks that
is necessary to follow. Within this context, EU is responsible for the formulation of varied
legislations and also helps in taking certain decisions for nation (Whitelaw and et. al.,
2009). There is an appropriate difference between English and Scottish system such as:
English system Scottish system
Accountabilities
It can be stated that the
regulatory authorities are
responsible to the act carried
out by them (Meaning of
monetary policy. 2015).
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
In the Scottish system they do
not consider the stated type of
cautions (Smith, 2008).
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their process of prosecuting.
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 (Frynas
and Mellahi, 2011).
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
(Kaplan and Norton, 2001).
As per the above discussion, it can be determine that both English and Scottish systems
are different from each other.
2.5 Evaluation of UK and EU legislative process and its effects on a major UK hotel group’s
business and services at both local and national level
There is a set legislative process which is being followed by the EU and UK and it highly
affects the business operations of Marriot at both the local and national level. However, EU
follows more complex process as compared to UK systems. Within the UK system, government
introduces several regulations through which they can easily protect the hospitality business such
as Environmental Protection Act, Minimum wage Act etc. With the help of these acts, Marriot
employees feel motivated and their salary and wages are not affected in any terms (Lenza, Pill
and Reichlin, 2010). Further, it can be determine that it is the most effective act due to which
employee rights does not get affected.
Moreover, individual is having full rights to protect against any type of business activity
of hotel which is not relying as per their promise. However, they do not complaint about such so
small activities. On the other hand, there are different Act followed by hospitality firms of EU
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such as Right to Equality and Right to Employment etc. In order to comply with all these laws it
is necessary to maintain equality among all the workers by satisfying their needs.
TASK 3
3.1 Different types and characteristics of business that operate within the business and services
with a focus on the Marriott International
Within any hospitality industry there are various types of business. One of the main
objectives of all these businesses is just to provide high quality services to their customers. In
this context, it can be determine that by conforming the any given objectives, Marriot is able to
enhance the motivation level of their customers (Kew and Stredwick, 2005). Within this respect,
there are different types of business which function within hospitality industry such as:
Food and beverages as well as accommodation: These are two most important functions and
which includes businesses such as club, restaurant, spa, luxury suits etc. Here, both the
international and domestic buyers can easily achieve better quality products within the area of
food and beverages. It is quite essential for Marriot to comply with all the rules and regulations
with respect to quality. On the other hand, accommodation is one of their important types of
business process which requires being very luxury. It another most crucial element of hospitality
which involves lodging services as well as luxury suits. Both of these businesses highly help in
maintaining the living related demand of customers. At the same time, they require to maintain
the personal information of customers very confidential.
Travel agent: They are the most important type of business within the context of hospitality
businesses. Different travel agents reside in this category and they always resolve the queries of
customers with regards to their holiday package.
Partnership: This is considered as another crucial element of any business where a person
makes an investment with another business and tries to achieve higher profit as well. However,
by adopting the given form of business organizations will not face any problems (Mugurel-Alin,
2014). They can effectively enhance their resources and also generate more revenues.
Private companies by share: This type of business within the hospitality industry gives its
share to the shareholders and delivers some proprietorship to them. It is the most effective way to
fulfil its money related requirements and being regarded as a most popular method. With the help
of this, any public limited organization is able to obtain financial requirements effectively.
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3.2 Legal processes necessary for formation and dissolution of a registered company
In any registered company there is a standard process which needs to be following as per
their legal requirements. An individual who is running the registered company needs to make
certain decisions by following legal procedures. There is a legal process which requires to be
followed by the registered company at the time of formation such as: Memo of association: At the starting period, it gives detail description regarding the
name and location of company. It is essential to form this document as it helps firm in
appropriate establishment. Articles of association: This is second and most important step in which manager will
prepare an article. This document is enclosed with the different rules and regulations and
all the legal procedures which is being followed by the company. It provides ethical path
to the company and they are able to follow this path with the same (Jones, Hillier and
Comfort, 2007). Form 10 and form 12: After covering both the above given steps individual need to
prepare two different types of forms. In this, form 10 will give appropriate information
about the various members such as date, name, address their passport number etc. On the
other hand, form 12 is a type of declaration.
 Decision regarding the name of company: This is the most effective and important step
of legal process in which manager will decide the name of company as per their services.
After going through the identification of formation process, dissolution of a registered
company follows different stages such as: Creditor’s voluntary liquidation: At this step, stakeholders and director will take
decision with their mutual concern and understating (Frynas and Mellahi, 2011). Here,
they decide whether they want to dilute the company or not.
 Member’s voluntary liquidation: At this step board members will give the statutory
declaration of solvency. At this time, these members are liable for the payment and loan
of company as well.
3.3 Structure and processes which determine the responsibilities and control within a registered
company
Structure of a business may vary depending upon the type and nature of the business.
Therefore, at the time of setting up a business, selecting an accurate structure is really an
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important thing to work upon. As it is the essentiality of the business to give it a right path,
altogether for the success and life of the company, as well. Now, it can be analyzed that the
company having limited structure, then it will mainly include the members like Board of
Directors, Company Secretary, Shareholders and Stakeholders, etc. Although, where each one of
them are assigned with different tasks and responsibilities and where each role is interrelated to
each other (Chang, Hughes and Hotho, 2011). For example, The Board of Directors are
appointed to work on behalf of the shareholders and are directly accountable to them, where
every year individual will be held responsible for arranging an annual general meeting, providing
a report to the shareholders regarding the performance of the company and also discussing the
future plans and strategies of the company.
Along with, the directors are equally responsible for making the required decisions about
the firm and further guiding it towards making growth by increasing the sales and generating
profit. Also, they have to convey timely and appropriate information to the stakeholders, and
together they need to deal with the challenges and issues related to the corporate governance as
well. On the other hand, a company secretary needs to fulfill different set of roles, making sure
that the enterprise is abided by all legal practices and financial standards as well (Joardar,
Kostova and Wu, 2014). Besides that, a shareholders plays the role of financial supporters to the
company by assisting the manager to make correct decisions about the company in an
appropriate manner. The shareholders also attain voting rights, and which is further considered in
company's general meeting.
CONCLUSION
It can be concluded from the study, that it is essential for the management of hotel to
collect required information regarding the external factors so that best results can be gained.
However, through collecting such information it helps business to make effectual decisions.
Also, by obtaining information regarding the current economic policy of nation, manager of
Marriott can undertake different type of strategies in order to deal with the same. Similarly,
business is also required to make effective employment decision so that information regarding
UK population can be attained. Thus, it helps firm to analyze that UK consists more of older
people and thus service industries are required to hire young and skilled people from outside
countries. Moreover, business helps in enhancing the knowledge regarding the legislation
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followed within the country it helps management of Marriott to set its efforts and obtain best
goals. Thus, with the help of such type of business strategy, firm is able to follow proper rules
and regulations formulated by government.
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