Impact of External Environment on the Operations of Organization

External Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 2............................................................................................................................................3
2.1 Structure, operations and influence of local government on UK hotel group.......................3
2.2 Role and influence of EU and its impact on business and service industries........................5
2.3 Role of pressure group and their influence............................................................................6
2.4 Legal framework in UK and the differences between the England and Scottish systems....7
2.5 Evaluate legislative policies of UK and EU..........................................................................9
3.1 Different types and characteristics of business operate within the hospitality sector.........10
TASK 3..........................................................................................................................................11
3.2 Legal process necessary for the formulation and dissolution of registered company.........11
3.3 Structure and responsibilities that determines the responsibilities and control within a
registered organization...............................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment refers to sum total of all the factors affecting organizational
functioning. Organization gets influenced both internally and externally. External business
environment encompasses into it macro factors such as political, social, economic, technological,
legal and environmental factors which directly or indirectly affects the planning, organizing,
directing and controlling of different segments of a. Hospitality industry is one of the fastest
growing industries having significant share in Gross Domestic Product (GDP) of UK (Aziz and
Yasin, 2010). With the extensive domain of its working, it functions in wide range of sectors
such as hotels, tourism sector, events, catering and many more with the estimated contribution of
around £49 billion in 2014 to UK’s GDP. With considerable extended services in each area, it
undergoes changes with the development in economic conditions prevailing in the country.
Report is prepared to elucidate the impact of external environment on the operations of
organization running in hospitality industry. For that purpose, Hotel Marriott is taken into
account. It is the leading hotel group chain with branches all over the Globe.
TASK 2
2.1 Structure, operations and influence of local government on UK hotel group
Structure and operations of local government in UK
With the long history of legacy to govern and control the constituencies, UK possess
planned and systematic structure of hierarchy of government officials. Based on the westminster
system, UK has parliamentary form of government. IT is segmented in three parts central, state
and local governments (Needle, 2010). Local government further runs either in one tier system of
the two tier system.
Two tier system
Two tier systems includes in it county and districts councils. County councils are the
smallest unit of government which is directly linked to the public and address issues such as
waste disposal, libraries, social care, passenger transport, education, highways and many. District
councils is having larger are than this (Lucky and Minai, 2012). In this it includes the
fragmentation of several counties that is responsible of housing, recreation, environmental
health, planning applications, local taxation collections and many. Divided into smaller areas it
performs many functions with respect to the maintenance of it. Additionally, it helps in
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safeguarding the environment so that factors of sustainability can be assured. Also, local taxes
are collected in order to support development of infrastructure for the welfare of society. Apart
from it, local council is also responsible for licensing act to develop new business, food safety in
order to assure hygiene factor at restaurant and food corners. They are even responsible for
cultural promotion in order to cater the attention of travelers across the globe.
One tier system
One tier system prevailing in UK is refereed as unitary authority. With the prevailing of
only one tier system there are large towns and cities under section. These can be city councils,
borough councils, county councils or district councils. Being the single tier system authorities are
responsible for all the operations such as social care, transport, housing leisure and recreation,
transport planning, highways, local taxation collection and other related (Teece, 2010).
Influence of local government on hotel group
An operation of local government has the significant influence on the working and
functioning of the hotel group in different aspects.
 Taxation policy: Local government is entitled to collect taxes and generate revenue with
it. It has laid many taxes on the areas related to the hospitality industry such as sales tax,
income tax, corporate tax, service tax and many. These taxes directly affect the
profitability and revenue generation of hotel group (Weske, 2012). It makes the
management to make changes in tariffs and charges of the services extended by the
organization.
 Inflation policy: Organization such as monetary policy of committee of bank of England
decides the interest rates and other bank rates. It affects the investment decisions taken by
the hotel group. Low interest rates attract large number of investments which leads to the
expansion of the venture and bring betterment to the q1uality of services.
 Employment policy: Local government of UK caters to the enhancement of the efficiency
and talents of the employees working in different sections of the industry (Nofsinger and
Wang, 2011). For that purpose it has laid the policies and regulation for their protection
and addresses all the related issues such as their salaries, wages safety and precautions,
providing healthy and resourceful work culture and many other related. It enables the
Hotel group to comply with all the laws and regulations and maintain legality.
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