Unit 1 Business Environment Assignment (Doc)
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Added on 2020-02-05
Unit 1 Business Environment Assignment (Doc)
Added on 2020-02-05
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External Business Environment
Table of ContentsINTRODUCTION ..........................................................................................................................3LO 1: PPT.......................................................................................................................................3LO 2: ..............................................................................................................................................3Task 2.1: The structure, operations and influence of local government on IHG hotels..............3Task 2.2: Role and influence of the EU, and its impact on business and services industries .....4Task 2.3: Role of pressure groups and their political influence in relation to national and localissues with regard to hospitality industry.....................................................................................4Task 2.4: Legal framework within the UK, identifying the main differences between theEnglish and Scottish systems.......................................................................................................5Task 2.5: UK and EU legislative process as it affects a major UK hotel group’s business andservices at both local and national level .....................................................................................6LO 3:................................................................................................................................................7Task 3.1: Different types and characteristics of business that operate within the business andservices with a focus on the hospitality sector. ...........................................................................7Task 3.2: Legal processes necessary for formation and dissolution of a registered company....8Task 3.3: Structure and processes which determine the responsibilities and control within aregistered company......................................................................................................................9Conclusion ....................................................................................................................................10REFERENCES .............................................................................................................................11
INTRODUCTION Hospitality industry has its major contribution to the UK economy. Operations of firmsfalling in this sector are affected by both internal and external environmental forces. Here, thisreport is going to deal with the external environment factors that are uncontrollable and directlyinfluence the organization (Gupta, 2013). This unit will analyse the external environment of UKhospitality industry therefore; a leading hotel group named as “InterContinental Hotels Group(IHG) PLC” has been taken into consideration. The influence of local government and legalframework of UK on IHG hotels will be studied here in this report. The manuscript is furthergoing to assess the role and influence of the European Union (EU) and its impact on serviceindustry. In addition to this, different types and characteristics of hotel business are explained. LO 1: PPTLO 2: Task 2.1: The structure, operations and influence of local government on IHG hotelsInterContinental Hotels Group PLC operates within UK thus; it conducts business in freemarket economy. However, this hotel group has experienced number of restrictions from localgovernments (Mellahi and Frynas, 2015). The arrival of visitors and tourists is influenced by thepolitical stability that further affects the revenue generation of IHG hotels. For an example; it canbe said that the political situation of Northern Ireland is unstable, which is the major reason forthat tourists reluctant to visit different places. As a direct consequence, the revenue generation ofhotels operating in such areas is low. To a wider era, local government of UK has developedvarious laws including consumer protection act, employment law, competition law, etc whichaffects the operations of hotels. Due to existence of competition laws, hotels cannot setaggressive prices or possess monopoly structure in the market. Application of competition law has restricted the monopoly situation in the marketplace.Companies are entitled to follow the regulations designed by government bodies (HazlinaAhmad and et.al., 2010). The cited hotel group is benefited by the steps taken by the localgovernment for example; local bodies have initiated for hosting London Olympics therebyprovided opportunities to IHG hotels for earning good revenues in order to serve more number of
tourists. In addition to this, profitability of business is also affected by the laws designed in localregion. Government of UK provides sufficient opportunity to business for expanding itsoperations and gain more profitable outcome. In this regard, IHG is suggested to conduct roleanalysis of local government and must design its strategies in accordance with local laws(Björklund, 2011). Task 2.2: Role and influence of the EU, and its impact on business and services industries European Union, also known as EU is a politico-economic union which is responsible formaking regulations for corporate entities which operates in European region. Laws andregulations designed by EU influence the business of corporate entity to a major extent with anaim of establishing EU to provide benefits for the organization however; policies now havebecome more challenging (Boons and Lüdeke-Freund, 2013). The companies have lost theirflexibility in operation and have to follow the laws of EU. By the cited authority, EMU policy isdesigned that has affected the service sector a lot. The hotels of IHG group are also affected bythis policy, as the hotels now have to transact in Euro rather than trading in home currency. Dueto this policy, the hotels have to monitor every change in Euro rates. To the other hand, anti-discrimination policies designed by EU government haveprovided equal opportunities for hotels to operate in a healthy environment (Aziz and Yassin,2010). The people working in service industry are benefited in terms of having a quality workculture. The cited union is responsible for designing and monitoring competitive polices fromwhich the organizations have developed harmony and peaceful environment. The policiesassociated with remuneration, workplace health and safety are external factors that affectbusiness of service industry.Task 2.3: Role of pressure groups and their political influence in relation to national and localissues with regard to hospitality industryPressure groups are also denoted as interest or protest group. The major function of theseunions is to influence the government for making changes in rules and policies. However,pressures groups also protest against the companies which do not follow the regulationsdeveloped by government (Wang, Chen and Chen, 2012). The major advantage of having thisgroup in an economy is that the people may access the best services and the rights of consumers
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