Business Environment and Global Challenges

This assignment requires students to critically examine the multifaceted nature of the contemporary business environment. It delves into various influencing factors, including legal frameworks, ethical considerations, environmental sustainability, and the complexities of operating within a globalized market. Students are expected to analyze these factors, demonstrating their understanding of how they shape business practices and strategies.

External business
Environment
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TABLE OF CONTENTS
Introduction .....................................................................................................................................3
TASK 2.1 The structure, operations and influence of local government on major UK hotel
group............................................................................................................................................3
TASK 2.2 Role and influence of the EU and its impact on business and service industries.......4
Task 2.3 Role of pressure group and their influences in national and local issues ....................4
Task 2.4 Legal frameworks within UK along with difference between English and Scottish
system .........................................................................................................................................5
Task 2.5 Evaluation of UK and EU legislative process affecting Apex Hotels .........................6
Task 3.1 different types of businesses and their characteristic in hospitality industry ...............7
Task 3.2 Legal process to form and dissolve a registered company ...........................................8
Task 3.3 Process which determines responsibility and control in registers companies..............9
Conclusion ......................................................................................................................................9
References......................................................................................................................................10
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INTRODUCTION
In the present scenario, hospitality sector is considered as one of the leading and most
potential sector in the entire world. Further, it also contributes to the growth and development of
a country's economy (Wang, 2011). Along with high growth rate, the sector also faces high
degree of competition. The present report is based on Apex hotels which is a renowned chain of
three and four star hotels in UK. The brand operates with total 8 hotels all across the country.
Further, it also depicts structure and operations of UK economy. Along with this, it explains
current economic policy of the government and its impact on Apex hotels. The report also
highlights the social structure of the people employed in the hotel group.
TASK 2.1 The structure, operations and influence of local government on major UK hotel group
In the contemporary environment, local government of UK plays vital role in influencing
the activities and operations of Apex hotel. It has been also reviewed that the local councils
affect the business operations that further results in changing their strategies as well as policies
of hospitality organization (Wellington, 2012). Apex hotel based in Edinburgh operates in 8
different regions thus; the local authorities existing within UK support the hotel in changing and
modifying their operations as per the requirement of the government. The different councils such
as district councils, local councils, London Boroughs as well as unitary authorities etc. are
considered as some local council which affect the functions of Apex hotel that further result in
changing their overall organizational structure (Xiao, 2009). In order to expand or focus on the
international trade, Apex hotel need to take permission from the different local councils.
Therefore, it can be said that there is high influence of local government on UK hotel group.
The different operations of local government are to devise and frame different policies
which are required to be followed by the organization so that they can easily operate and render
services to their guests and customers (Jordan, 2005). Furthermore, the local government also
plays vital role in imposing various limitation and regulation that in turn result as the major issue
for Apex hotel. For instance; local government imposes higher tax rates on the services of hotel
organization that help in increasing the prices of their food items. Thus, it results in decreasing
the demand of eating food within the hotel.
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TASK 2.2 Role and influence of the EU and its impact on business and service industries
The European Union is regarded as politico-economic Federal or union that consists of
28 member states within Europe. The foremost purpose of developing the union is to ensure that
there must be proper free flow of individual, products, services etc. among the all 28 member
states. Furthermore, European Union has formulated different policies that directly impact
business as well as service industries of EU region (Koutrakos, 2006) It can be also stated that all
the businesses whether small or large have direct impact of policies and regulations framed by
European union. Policies such as EMU has affects the operation and activities of all the firm in
service sector of the country. Businesses are required to ensure the fact that they all the
transactions and deals are carried out in Euros not in pounds. This clearly means that any kind of
changes in exchange rate of euro will make impact on transactions of these businesses or service
sector.
Other than this, European Union has also developed regulations related to anti
discrimination and fair competition. All businesses are required to ensure that they do not use at
any kind of unfair or illegal practises at the time of carrying out their operationsn (Richardson,
2006). On the other hand, organizations are also bound to provide fair and satisfactory wages to
their workers along with safe and healthy work environment. Therefore, it can be stated that in
order to survive and stay competitive in external business environment, businesses needs to
follow all the rules and regulation developed by European Union.
Task 2.3 Role of pressure group and their influences in national and local issues
Pressure groups are also termed as influencing group or protest groups and its main
motive is to influence decisions making process of government without becoming part of it.
Furthermore, these groups are not part of government or other regulatory bodies. When the
policies and regulations framed by government are not satisfactory then these groups starts
protesting to make modification in the same (Grant, 2005). Pressure groups have also contributed
a lot of efforts in issues at national and local level. Hospitality industry has a great impact on
society and environment in which it operates. These groups encourage and even forces
businesses in the industry to lower down their negative impact on environment. People in the
country are well aware of the fact that the natural resources are limited in number (Fey and
Birkinshaw, 2005). Thus, pressure groups also encourage effective use of resources so that they
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can be conserved for future generations. One of the example of pressure group is Greenpace
which have its direct impact on all small, medium and large businesses operating in hospitality
industry. It also forces firms to carry out more sustainable operations which can benefit both
environment and people living in society. Pressure groups such as Amnesty international
operates in order to protect human rights of people working in different organizations (Hsieh,
2012). In many critical situations, pressure groups have so powerful impact that government and
regulatory bodies are required to change their entire regulations or rules.
Task 2.4 Legal frameworks within UK along with difference between English and Scottish
system
It can be stated that UK is having various kinds of legal system such as in Scotland,
Northern Ireland and in England & Wales. In terms of the highest authority, supreme court is the
one which is having all the major powers. All the other courts fall under supreme which takes the
final decision. The legal framework has been developed in order to deal with different types of
cases and situations. Furthermore, the court and legal system is also required to take fair decision
without doing any kind of partiality (Johnson, Lenartowicz and Apud, 2006). There are various
kinds of differences in English and Scottish system. It can be explained that Scottish system,
related to legal framework is somewhat different and it is also unique in its own terms. All the
policies and regulations which has been developed by European Unions has made direct impact
on this system. Situations such as criminal justice and establishment of policy is taken care by
cabinet secretary. Other than this, both criminal cases and civil cases are treated separately by in
Scottish system. In majority of districts, sheriff courts has been developed (Ingulli, 2014).
The cases which are taken care of by sheriff courts includes bankruptcy, problem
between landlord and tenant, claims related damages etc. On the other side of this, there are
different courts which has been developed by English court system. Some example of this
includes high court, UK supreme court, crown court, family court etc. In addition to this,
different court deals with different kind of cases and situations. For instance magistrate court
deals with both civil and criminal cases in the English law system. Crime and cases related with
people between age group of 10 to 17 years are taken care by The Youth court. In situations
when a person feels that his/her human rights are getting exploited, then they can appeal in
European court of human rights (Fey and Birkinshaw, 2005). Other than this, as per English law
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there are many public places where people are allowed to drink and smoke. On the other hand,
people are not allowed to drink and smoke in public places. Further, as per Scottish law
individuals of age 12 or above can make will whereas according to English law people must be
18 or above to make will.
Task 2.5 Evaluation of UK and EU legislative process affecting Apex Hotels
Apex hotels is one of the popular group of hotels which are based in UK. The hotel
strictly follow all set of rules and procedures which has been developed by government and
European union. It can be also stated that if Apex hotels do not follow all rules and regulations
then it is possible that it has to pay various kind of fines and penalties (Wellington, 2012). The
hotel is also considered as the part of Economic and monetary Union which is often termed as
EMU. The impact of this is that it has forced the hotel to adapt for a single currency. The impact
of UK and EU legislative process on Apex hotel is mentioned below as:
 It has become compulsory for Apex hotel to under with a permanent license
 The organization is also required to make sure that all information and data related o its
hotel guest are kept confidential and not provided to any other party.
 All the practices related to operations are required to be fair and transparent. In case if
Apex group is uses any kind of unfair practices then its license will directly get canceled.
 Apex Hotels needs to have a fair policy for recruitment and selection (Jordan, 2005). This
means that the organization is not allowed to have any kind of discrimination or partially
at the time of selection as well as promotion.
 According to the Minimum Wage Act developed in the year 1998, the hotel is required
provide fair and adequate pay to workers against their work done.
 UK and EU legislative process has forced the organization to make sure that it do not hire
minors for doing any kind of work.
 The hotel needs to take corrective measures in order to ensue health and safety of
workers. This means that Apex hotels needs to provide safe, healthy and positive working
environment to all its staff members.
 Apex hotel is also required to take care of all its stakeholders such as customers,
investors, employees, managers etc.
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 The EU legislation process has encouraged Apex hotel to maintain price level in order to
compete fairly. This means that in order to gain competitive advantage it cannot reduce
prices to the lowest.
Task 3.1 different types of businesses and their characteristic in hospitality industry
Hospitality industry contributes a lot in the growth and development of UK's economy.
Some key businesses along with their characteristic is mentioned below as:
 Private limited- These are owned and managed by individuals or parities which are
seeking for higher profits. Further the decision making and strategic formulation process
is concentrated in hands of private parties. One of the major benefit of private limited
businesses in hospitality industry is that it has wide scope available in terms of growth
and expansion. Along with this, it can be also stated that a private limited company can
be established in hospitality industry only by 2 stakeholders (Wang, 2011). Operations of
a business enterprise are also not affected by the nature and status of entrepreneur. The
drawback of operating with a private limited business in hospitality industry is that owner
cannot transfer shares to any other or third party.
 Partnership firms- These are the businesses developed on agreement between two or
more person or parties which have agreed upon to share mutual profits and loss. The
process of decision making and strategic formulation is in the hands of all individuals or
parties associated in partnership firm (Richardson, 2006). One of the major benefit of
having a partnership firm in hospitality industry is that it generates large amount of
capital. This means that the businesses not find any kind of shortage related to funds for
carrying out their various activities in partnership firms. On the other hand, its
disadvantage is that debt liability of all the partners is unlimited.
 Sole traders- These are those people or parties in hospitality industry which manages and
takes care of businesses by their own. Furthermore, these are they are the only one which
are responsible to make a business successful by their efforts and hard-work. The benefit
of having such type of business in hospitality industry is that profit is not distributed
among others and is enjoyed by a single person (Hsieh, 2012). Its disadvantage is that
due to single person or party, such kind of businesses are not able to raise adequate
capital.
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 Public limited- These are the businesses which are owned and managed by government
or other regulatory bodies. Further it can be argued that the core aim of public limited
organizations is to provide people in market with quality products and services at very
convenient prices. Raising of large amount of human and financial resources is one of the
major benefit associated with public limited in hospitality industry. On the other side of
this, the main drawback of such kind of businesses is that the maximum number of
stakeholders permitted in this business is fifty.
Task 3.2 Legal process to form and dissolve a registered company
The legal process to form a company is mentioned below as:
 Individuals are required to submit all legal documents and registration fees which has
been determined in section 9 of Companies Act 2006.
 Companies are required to fill and submit documents such as Memorandum of
association and Article of association which is must in order to register a company (Katz,
and Green, 2007). Businesses are also required to fill form such as IN01 which consists of various kind of
information such as location of company, its operations, nature, size along with all
important details associated with owners.
The legal process to dissolve a company is mentioned below as:
 Providing a valid reason for dissolution- It is the first step which is required to dissolve a
company in legal terms. In this process, people are required to provide a valid reason
along with proper justification regarding dissolution. Along with this, they are required to
clarify the fact that the process of dissolution is mandatory or has been carried out
voluntary (Kew and Stredwick, 2005).
 Taking appointment with liquidator- The next step to dissolve a company legal terms is
by appointing a liquidator. Further it can be stated that his main role is to value the all
assets and liability of company.
 Realizing assets of company- It is one of the most important part of dissolution process of
any company. All the assets are being evaluated in most effective manner in this stage.
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 Payment of liability- In legal terms it is required by every company to clear all its liability
before closing itself. At the time of paying liability business need to ensure that payment
is done on preferential basis.
 Closing of books- It can be termed as the last step in dissolution of a company legally.
All the due payments are being cleared and books of accounts are being closed.
Task 3.3 Process which determines responsibility and control in registers companies
In order to make a business enterprise successful there are various effective control and
responsibilities are required to be developed. The owner needs to make sure that all the need and
expectations of all its stakeholders are satisfied in the best possible manner. He is also
responsible to make effective plans and strategies at regular intervals (Zahra, 2003). Along with
this, defining aim and objectives of businesses are also important responsibilities of owner.
He/she also needs to arrange meeting with all stakeholders at regular intervals in order to
communicate the growth and future plans of business.
CONCLUSION
From the above report it can be concluded that it is very essential for businesses such as
Apex hotels to take care of its external business environment. It can be explained that the
organization is affected by various kind of policies framed by Europeans union and government
of the country. It can be also concluded that in order to form or dissolve company, businesses
are required to follow appropriate and legal procedures.
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REFERENCES
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