Structure and Operation of the UK economy - Assignment
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Added on 2020-01-15
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This external business environment report is based on the external business environment of the UK. We will discuss the structure and operation of the UK economy features the external environment of the United Kingdom (UK) hospitality sector. The business environment of the Hilton hotel also discusses here. Here we discuss the external business environment and the structure, operations, and influence of local government on a major UK hotel group. A present report analyzing current government economic policy and its effect on business and services industries. We evaluate the role and influence of the EU, and its impact on business and services industries. You can also check "A case study on Hilton hotel" for more information.
Structure and Operation of the UK economy - Assignment
Added on 2020-01-15
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ContentsTask 1 : PPT.........................................................................................................................................31.1 Structure and operation of the UK economy..............................................................................31.2 Analysing current government economic policy and its effect on business and services industries..........................................................................................................................................41.3 Income, wealth, employment and occupational distribution in relation to the provision of business and services operations......................................................................................................41.4 Assessing demographic trends influence to employment patterns in the hospitality industry...41.5 Analyzing social structures of people employed in a major UK hotel group............................5Task 2...................................................................................................................................................52.1 Discuss the structure, operations and influence of local government on a major UK hotel group.................................................................................................................................................52.2 Evaluate the role and influence of the EU, and its impact on business and services industries62.3 Assess the role of pressure groups and their political influence in relation to national and local issues in regards to hospitality industry...................................................................................72.4 Analyse the legal framework within the UK, identifying the main differences between the English and Scottish systems...........................................................................................................72.5 Evaluate the UK and EU legislative process as it affects UK hotel group’s business and services at both local and national level..........................................................................................8Task 3...................................................................................................................................................83.1 Assess the different types and characteristics of business that operate within the business and services with a focus on the hospitality sector.................................................................................83.2 Discuss the legal processes necessary for formation and dissolution of a registered company.93.3 Analyse the structure and processes which determine the responsibilities and control within a registered company.........................................................................................................................10Conclusion..........................................................................................................................................10References..........................................................................................................................................11
INTRODUCTIONExternal Business can be referred to those external environmental conditions, events,entities and factors that surround hospitality organization which significantly affect its decisions andoperations, consequently determine its opportunities and threats. The external environmental factorsaffect company’s ability to function. The present report features the external environment of theUnited Kingdom (UK) hospitality sector. The hotel group chosen for study is Hilton Hotels andResorts located at various locations in UK (Bruneel, Ratinho and Groen, 2012). The first part of thereport is consisting of power point presentation which entails discussion over structure andoperations of UK economy. In addition to this, it also analyses demographic trends that impact theemployment patterns in hospitality sector in UK. The second part of the report explores the effect oflegal and political environment on the operations of Hilton Hotels and Resorts. In this, evaluation ofUK and European Union (EU) legislative processes is done to find out their influence on the chosenhotel group. The third part of the study talks about the statutory requirements for establishing anddeveloping a business and service operations. TASK 1: PPT1.1 Structure and operation of the UK economyThe economy of UK is the most globalized economy of the globe. It is considered as thefifth largest national economy in terms of GDP and is the second largest in EU. The UK economy iscomposed of economies of England, Wales, Scotland and Northern Ireland. The economy isexpected to grow at a rapid pace than its G7 peer nations as per the recent studies of InternationalMonetary Fund (IMF). According to the data of the year 2014, UK was the fifth largest importerand ninth largest exporter in the world. Besides this, it has the second largest inward as well asoutward foreign direct investment. It has been observed that the service industry dominates UKeconomy which contributes nearly 78 percent of GDP. Among service sector, financial services playvery vital role in the economic growth (UK Economic Policy, 2016). British Economy is exercised by HM Treasury and the Department for Business, Innovationand Skills. The Bank of England is the central bank of UK and is responsible for controlling theflow of money in UK economy by using tools like monetary and fiscal policies. Taxation policiesinclude payments at two levels of government; one is at local and other is at central government.The central government earns revenues mainly from income tax, corporation tax; value added tax,fuel duty and national insurance (Aragon-Correa and de la Torre-Ruiz, 2015). On the other hand,local governments are financed through council tax, business rates, funds from central governmentand various fees & charges.
1.2 Analysing current government economic policy and its effect on business and services industriesIn order to analyze current economic policies of UK and its impact on business of HiltonHotels and Resorts, following passage can be elaborated:The economic policies in UK are formulated by national governments, Bank of England andits Monetary Policy Committee in order to regulate the operations and services of services sectorsthat also include hospitality industry. It can be analyzed that after the devastating economic crisis of2008, leading economists of UK lay emphasis on incorporation of stringent corrective measures inorder to combat the adverse effects of global financial recession. The Bank of England has reducedthe interest rate to 1 percent in order to facilitate lending and making finances rapidly available tohospitality organizations (Hospitality Sector, 2011). This will help Hilton Hotels and Resorts tolend money from bank at lower interest rates which will be very useful for the hotel group toexpand its business in potential markets in UK. In addition to this, the national government in UKhas formulated economic policy to promote growth of service sector including hospitality industry.According to the new policy, the rate of value added tax has been reduced to facilitate consumers tospend more money and help service sector to flourish. 1.3 Income, wealth, employment and occupational distribution in relation to the provision ofbusiness and services operationsIncome of customers significantly affects the operations of Hilton Hotels and Resorts. Theclient base of the organization consists of High Net worth Individuals (HNI) clients who belong toupper socioeconomic class. Individuals of this class are usually businessmen and professionals atvery high designations. Thus, in order to enhance their experience, Hilton Hotels and Resorts haveto invest generously in improving the quality of hospitality services of the firm. It can be observedthat Hilton Hotels spend huge sums of money in building attractive infrastructure and facilities toattract customers and increase sales to earn huge profits. In addition to this, the Hilton Hotels andResorts also provide good employment opportunities to young and eligible candidates. It alsoprovides sound remuneration to its employees. Talking about the occupational distribution in HiltonHotels and Resorts in UK, it has been estimated that 10 percent of workforce consists of Managers,directors and senior staff. In addition to this, 14 percent of occupations comprise of administrative,secretarial and clerical jobs. Besides this, sales and customer service occupations contribute to 6percent of the workforce in the hotel company. Apart from this, it has been observed that caring andleisure occupations contribute to 3 percent of the total workforce in Hilton Hotels and Resorts (UKEconomic Policy, 2016). 1.4 Assessing demographic trends influence to employment patterns in the hospitality industryAge is the demographic trend that significantly affects the employment patterns in thehospitality sector in UK. According to the report of Hospitality Sector in UK, 48 percent of
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