Introduction to Business - Assessment 2 Individual Report

This report covers topics regarding different types of businesses namely sole trader, partnership and private limited company. Furthermore, the report will include business structure of the newly start-up business. Moreover, the report will analyse micro and macro environment of start up business by undertaking various types of business models such as PESTEL and porter five forces.

Your Name & student ID Introduction to Business – Assessment 2 Individual Report
Title Page
Introduction to Business
Assessment 2 – Individual Report
Start-up Business Type & Business Name
Student Name
Student ID number
Your Lecturer’s Name
Your Cohort /Batch number (class code)
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Your Name & student ID Introduction to Business – Assessment 2 Individual Report
Table of Contents
Introduction...................................................................................................................3
Overview of the Report..............................................................................................3
Background of the Company.....................................................................................3
Main Body (Business Plan)...........................................................................................4
Different Types of Businesses...................................................................................4
Your Business Structure...........................................................................................4
Macro Environment...................................................................................................4
Micro Environment.....................................................................................................4
Impacts on your Business.........................................................................................4
Conclusion....................................................................................................................5
Overall argument summary.......................................................................................5
Recommendations.....................................................................................................5
References List.............................................................................................................6
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Your Name & student ID Introduction to Business – Assessment 2 Individual Report
Introduction
Overview of the Report
Business is a legally recognised organisation comprising of different group of
people intended to achieve common company goals and objectives. According to
Prof. Owen,” A business is a process engaged in production and distribution of final
goods and services for a price” It is indispensable for business organisation to have
a vision that implies its future aim and values that shows organisation's integrity. The
report will cover topics regarding different types of businesses namely sole trader,
partnership and private limited company. Furthermore, the report will include
business structure of the newly start-up business. Moreover, the report will analyse
micro and macro environment of start up business by undertaking various types of
business models such as PESTEL and porter five forces. After analysing the
business models, the report will further study the impact of macro and micro
environmental forces on the business of start up.
Background of the Company
The newly established start up “Bella vista hotel” is a medium size, 5-star
luxury hotel run by Alexander Cojocaru and Andreea Cristina and located in St.
Albans. The hotel is focused on providing clean and modern structured rooms in
order to attract business visitors of the area. Moreover, the rooms are deployed with
modern accessories such as furniture and high end technology. The hotel is in
operation since 2018 covering around 85 employees in the business. Furthermore,
the company provides luxurious restaurants with three bars and a set of beautiful
lounges in which the customers can enjoy afternoon tea. Moreover, the business
provides wide range of rooms namely classic,superior and deluxe rooms with ultra
modern amenities such as HD LED TV , high speed Wi-Fi and many more. The hotel
provides its customer a luxurious and wonderful suites options which is steeped in
royal history. Furthermore, the company provides its customers an unforgettable spa
treatments which includes different types of massage and facial services. In relation
to it, the hotel provides unique facilities such as fitness studio, exercise studio,
swimming pool and many more.
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Your Name & student ID Introduction to Business – Assessment 2 Individual Report
Main Body (Business Plan)
Different Types of Businesses
As discussed above, A business is a legally driven organisation established to
provide goods and services to the potential parties such as consumers, businesses
and governmental entities(Swaffield and et. al., 2019). The following are the most
popular business types in order to run operations of business are:
Sole proprietorship: It is one of the simplest form of business ownership as this
type of business runs by a single person with no requirement of registration and long
taxation process. The business owner have to bear all profits, liabilities and legal
issues as there is no difference between business and business owner.
Partnerships: It is a type of business ownership operated by more than one party. It
provides the business owners with a pool of resources and talent along with a secure
private funding. Furthermore, Parties involved under partnership act needs to
register their business under the law of the state in order to establish their official
business name.
Private limited company: This type of business is owned by multiple shareholders
by involving in day to day operations of the business. In this, the business owner
doesn't have to bear all liabilities and legal issues as there is a distinction between
business and its owners. Furthermore, Company is built by filing articles of
incorporation with the state laws. This type of business is managed by a board of
directors and ownership is distributed among shareholders by issuing shares of the
stock in market.
In context to Bella vista hotel, the company follows partnership form of
business ownership in order to run its day to day business operations. It allows
business owners to exchange pool of necessary skills and financial resources in
order to enhance growth and development of the hotel. Moreover, this form of
business provides owners to share equal amount of profits and risks in a long run.
Your Business Structure
As discussed above, a partnership is a type of business in which two or more
parties are mutually engaged in order to run a business organisation (Oliva and et. al
2019). There are the following three main types of partnership that exist in business
arrangement are:
General Partnership: This form of partnership is easier to form and maintain as it
includes no official paperwork in order to begin business activities. The business
owners who are engaged in general partnership are mutually interdependent on
each other by sharing equal amount of profits and losses. Additionally, all partners
are fully responsible for the actions of other partners involved in the business setting.
Limited partnership: This type of partnership involves one general partner who is
responsible to manage day to day operations and is also fully liable for the risks and
liabilities. On the other hand, the remaining partners left are limited partners who can
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Your Name & student ID Introduction to Business – Assessment 2 Individual Report
take part in decision making process but are only liable for the loss as much as they
hold shares in the business. Furthermore, Unlike general partnership it is compulsory
for the owners to register their business in the law of the land(Leminen and et.al.,
2020).
Limited Liability Partnership:It is the type of partnership where a partners is not
liable for the actions of other partners in the business setting. Unlike other forms of
partnership, all the partners are only liable to the risk in relation to the investments
they have made in the company through buying shares of the stocks. Moreover, this
type of partnership is restricted to certain types of professions such as lawyers,
doctors and accountants.
In relation to Bella vista hotel, the firm follows general type of partnership in
conducting their business activities and process. This means that the partners have
unlimited liability towards risk of the company. Furthermore, the partners are
mutually interrelated with each other in terms of sharing equal amounts of profits and
losses.
Macro Environment
It is crucial for the business enterprise to focus on macro factors of business
environment in order to gather required information necessary for growth and
development of business. For this, the following PESTEL model is taken into
consideration:
PESTEL analysis tool:
It is a strategic process to identify and evaluate the external factors which can
influence growth and development of the business. This tool helps business firms to
analyse risks and opportunities present in the market in order to develop suitable
business strategies. In context to Bella vista hotel, the firm practices PESTEL model
for analysing risks and opportunities that can impact its growth strategies and future
action plan(Lam and Wong, 2018). The following factors which can impact the
decision making capability of the Bella vista hotel are:
 Political factors: The unexpected change in government policy and actions
can impact the business development strategies of the hotel. The change in
tax policies, tariffs rate , trade restrictions and unnecessary government
intervention can influence the performance of organisation. Furthermore, the
proper analysis of political factors support the decision making ability of firm.
 Economic factors: The sudden change in interest rates of loan can influence
the growth strategies of the hotel business. The inflation rate and exchange
rates can impact the purchasing power of the business organisation in order
to increase its production process. Furthermore, timely analysis of economic
forces provide support for its future plans(Nurmi and Niemelä, 2018).
 Technological factors: The rate of change in technology in the hotel industry
can impact the day to day operation of the company. Change in the
technology associated with billing of customers and booking of hotel rooms
can have a big impact on decision making process of the organisation.
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Your Name & student ID Introduction to Business – Assessment 2 Individual Report
Micro Environment
The micro environmental factors are crucial for the organisation to analyse its
competitive position within industry. For this, the following Porter five force model is
taken into practice to identify strengths and weakness of the company:
Porters five force model:
This model helps the business firms to evaluate and analyse its competitive
position in the market by undertaking certain strategic measures.. In context to Bella
vista hotel, the company uses this model in their day to day strategic decision
making in order to know its current competitive edge in the market. The following key
modals are:
 Bargaining power of buyers: It is an assessment of how easy it is for the
buyers to drive prices down and demanding more service at an existing price.
The power of buyers are highest when number of buyers are large relative to
the competitors in market. In relation to Bella vista hotel, the influencing power
of buyers are highest in hotel industry as there are various hotels providing
same type of services in a competitive rates.
 Bargaining power of suppliers: It is an assessment of how easy it is for the
suppliers to drive up prices. The power of suppliers depends upon various
factors such as number of suppliers of each essential input and many more.
In context to Bella vista hotel,the bargaining power in hotel industry is
considered low to moderate due to presence of high number of suppliers in
market. Hence, it have a less impact on the firm operations(Sigcha and et.al.,
2020).
 Threats of new entrants: Profitable markets are prone to new entrants which
can damage the profitable position of current players within industry. The
threat depends in the series of barriers to entry such as patents,economies of
scale and many more. In relation to Bella vista hotel, the risk of new entrants
is considered low as it requires a huge amount of capital and land to enter in
the hotel industry(NUGRAHA, 2020).
Impacts on your Business
The macro environmental factors such as technological factors impacts the
operation of hotel in long run. There are several opportunities present in the market
that Bella vista can grab such as sales through internet, allowing online check in and
out for added convenience and providing RFID card that unlocks the door based on
proximity. Adopting this opportunity leads to make services better than its
competitors within hotel industry. On the other hand, micro environmental factors
such as bargaining power of buyers can impact its growth strategies. Along with it,
the threats of new entrants can also possess a risk to the operations of the
business(Mon, 2020).
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Your Name & student ID Introduction to Business – Assessment 2 Individual Report
Conclusion
It has been analysed that business is a legally driven organisation established
in order to satisfy needs and wants of the potential customers. It has been further
determined that there are different type of business namely sole proprietor ,
partnership and private limited company. It was also discussed about the partnership
form of business structure that Bella vista has taken into consideration. It was further
concluded that, the macro and micro environmental factors provides a significant
impact in developing future growth strategies by deeply studying the two business
modals namely PESTEL model and porters five forces model.
Recommendations
It has been recommended that the company must properly analyse macro
and micro external environmental factors in order to establish its growth strategies
relating to construction of a new tent. The firm should deploy advanced technology
such as a well established website ,providing and unlocking rooms through mobile
apps for improving its customer base in the market.
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Your Name & student ID Introduction to Business – Assessment 2 Individual Report
References List
Books and journal
Lam, J.S.L. and Wong, H.N., 2018. Analysing business models of liner shipping
companies. International Journal of Shipping and Transport Logistics, 10(2), pp.237-
256.
Leminen and et.al. , 2020. Industrial internet of things business models in the
machine-to-machine context. Industrial Marketing Management, 84, pp.298-311.
Mon, C.S., 2020. Predicting VR adoption on e-commerce platforms using TAM and
porter five forces. In Understanding Digital Industry (pp. 176-179). Routledge.
NUGRAHA, I.A., 2020. PENENTUAN STRATEGI PEMASARAN KLINIK ESTETIKA
RUMAH SAKIT DAERAH MANGUSADA BERDASARKAN KONSEP STRATEGI
GENERIK MICHAEL E. PORTER (Doctoral dissertation, Universitas Gadjah Mada).
Nurmi, J. and Niemelä, M.S., 2018, November. PESTEL analysis of hacktivism
campaign motivations. In Nordic Conference on Secure IT Systems (pp. 323-335).
Springer, Cham.
Oliva and et.al., 2019. Innovation in the main Brazilian business sectors:
characteristics, types and comparison of innovation. Journal of Knowledge
Management.
Sigcha, E and et.al., 2020, July. PESTEL Analysis as a Baseline to Support
Decision-Making in the Local Textile Industry. In International Conference on
Systems and Information Sciences (pp. 144-156). Springer, Cham.
Swaffield and et.al., 2019. Connecting business with the agricultural landscape:
Business strategies for sustainable rural development. Business Strategy and
the Environment, 28(7), pp.1357-1369.
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