Analysis of Business Organizations in Hospitality and Tourism Industry

This report provides a comprehensive analysis of business organizations, focusing on their structures, functions, and organizational culture within the context of the hospitality and tourism industry. It begins by defining business structures and then delves into the advantages and disadvantages of various legal entities, including sole traders, partnerships, and limited companies, with examples such as Friendship house hotel, London Hilton, and Inter Continental Hotel. The report further explores organizational structures, contrasting tall and flat structures, and examines key business functions such as marketing, human resources management, and operations. It also evaluates organizational culture, including Handy's model and its application in the hospitality sector. The report concludes by summarizing the key findings and comparing different business structures and functions within the industry.

Understanding
Business
Organizations

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES:...............................................................................................................................8
Books and Journals.....................................................................................................................8

INTRODUCTION
Business structure can be defined as how the business organisations are carrying out their
business in the market by using specific structures. It is a legal entity that is formed by their
owners with the purpose of generating profits by selling of the goods and services in the market.
In this report, there will be the discussion on the advantages and the disadvantages of the various
business legal entities like sole trader, partnership and the limited company in relation to the
hospitality and tourism industry (Di Vaio and et.al., 2021). These legal entities helps the business
owners to carry out the operations and generate more revenues in the future. There will be the
comparison on the various organisational structure. Along with that the functions of the
departments like Human Resources Management, marketing, production and operations will also
be discussed. There will be the evaluation of the organisational structure. At the end of the
report, there will be the evaluation of the various examples of the industries practices from
various organisations.
MAIN BODY
Sole trader means when the business in owned and run by the single person. These types
of business are generally small in size because single individual makes investment in order to
start the business. Advantage of this type of legal entity is that only one person enjoys whole
profit. Decisions in this type of business are generally taken fast and one personal have the
control over the activities of the business (Sarja, Onkila and Mäkelä, 2021). Disadvantages of
this type of structure is that only single persona have to bear the risks and there is unlimited
liability to the owners. Huge investment can not be made in this type of business entity. For
example, Friendship house hotel is run by the single owner and they are generating good profits
in the hospitality industry.
Partnership business structure can be explained when two or more than two individuals
come together in order to carry out the operations of the business. One of the main Advantages
of this business structure is that it can easily formed as it requires very less legal formalities. Risk
in this type of structure is shared by the partners (Kim and Kim, 2018). This type of structure
allows the owners to expand the business in the market. Disadvantages of this type of structure
is that there is unlimited liability because all the profits and the losses are shared by the partners
of the business. Partner faces difficulty in taking decisions in this type of structure as there can

be different types of ideas and thoughts that can cause conflicts amongst them. In relation to the
hospitality and tourism industry London Hilton has collaborated with the Bompas and Parr in
order to make their rooms more vegan friendly. Limited company are the business structure that
is managed by the directors and owned by the shareholders. This is carried out by shares of the
stock for the purpose of trade. For example, Inter Continental Hotel is a limited company that has
listing on the London Stock Exchange. Advantages of this business structure is that huge
investment can be done through issue of shares. Funds in this type of legal entities are easily
transferable through sharing of the shares. It has more growth opportunities compared to the
other business structure. Disadvantages of this structure is that it while forming the the public
company there is a requirement of huge capital (Andrews and et.al., 2019). There is requirement
of many legal formalities that delays the process of production in the companies. Public limited
company generally focuses on short-term profits.
Organisation structure can be defined as the system in which the activities of the
business are carried out with the purpose of achieving the goal. Main structure of the business is
the Flat and the tall structure. Tall organisation structure can be defined as when the structure is
completely broken in the various sequence. In relation to the Inter Continental hotel they used
this structure which helps the managers of the organisation to have full control over the different
portions of the business. This type of structure facilitates the managers to take full control on the
lower level. It also defined the clear distribution of the roles and the responsibilities. On the other
hand the flat stricture can be explained as when the organisation have few and don't have middle
management among the employees and executives (Hankammer and et.al., 2021). This type of
structure have various benefits such as they focus on the customers, few management levels,
more delegation of the authority to the subordinates. In relation to the Little French Restaurant
they practise this structure that allows them to provides more opportunities to their employees in
order to promote the aim of the business. It facilitates the employees to become more potential
and responsible towards the work.
Business activities can be defined as operations in the workplace that are carried out with
the purpose of generating income. Inter continental hotels performs various types of functions
that are operations, marketing and the human resources management (Zehoul, 2021). On of the
key functions of the business organisations is the marketing through which they become able to
promote their products and services in the market. It helps in reaching the mass audience in the

market that results in the generation of more income for the business. Another function that is
most important in the workplace is the Human Resource management. These people hires the
motivated and potential employees towards the organisation that can helps the organisation to
generate more productivity at the workplace. In relation to the London Hilton hotel they have an
effective HRM departments who critically analyses the needs of the employees in the workplace
through which the services cannot be delayed in the hotel. Another function that is important in
the organisation is the operations (Ehie and Chilton, 2020). These are the people of the
organisation that converts the raw materials into the finished products. Human resource
departments plays an significant role in improvise the productivity of each departments. In
relation to the hospitality services, operations of the workplace aims to provide the effective
services to the target audience. The practices of this segment helps them to increase the
satisfaction of the customers by providing them quality services that facilitates them to generate
more revenues in the future. In relation to the Inter Continental Hotels they carries out these
activities effectively through which they become more strong in the market. All the activities of
the organisation helps the leaders to lead the actions towards the achievement of the goal.
Organisational culture can be defined as the behaviour of the employees in the
workplace that affects the operational activities. It consists various components such as
expectations, practising together in order to convey the information to all the members of the
team. The organisational structure is highly dependent upon the leaders and the managers of the
organisation. They encourage and shape the behaviours of the employees in the workplace. In
relation to the Inter Continental Hotel, Handy's model is applied in the organisation which allows
them to shape the behaviours of of the staff towards the goal. Another main feature of the is role
culture that defines the rules related to the roles and the responsibilities to the employees.
Another main feature of this model is the task culture that allows the organisations to put more
engagement and focus towards the certain projects (Howard and Ulferts, 2020). In the person
culture, the employees of the organisations does not put much pressure to perform the tasks. In
relation to the Inter Continental Hotels they practises the task culture because the employees of
the organisation are more experienced and skilled. Through this element they can easily achieve
the goal of their business. It has been analysed that the positive work environment in the
hospitality that increases the job satisfaction of the employees and also enhances the engagement

with the goal and the values of the organisation. This facilitates the managers of the Inter
Continental Hotels to establish well in the market which results in accomplishment of the goals.

CONCLUSION
From the above report it has been analysed that operations of the business are carried out
by the several laws that helps them to run the operations smoothly. It has been analysed that
there are various types of functions that has to be performed in the workplace in order to achieve
the goal and the targets. In above report various types of business structures have been discussed.
Comparison of the flat and tall structure have been undertaken in relation to the hospitality
industry. Different kinds of business functions have also been analysed such as Human
resources, marketing and the operations. At the end of the report organisational culture have been
evaluated in regard to the hospitality and tourism industry.

REFERENCES:
Books and Journals
Andrews, T.G and et.al., 2019. Corruption in Asia Pacific business organizations: insights on
causes, conditions, consequences and treatment. Asia Pacific Business Review, 25(4),
pp.459-469.
Di Vaio, A and et.al., 2021. Understanding knowledge hiding in business organizations: a
bibliometric analysis of research trends, 1988–2020. Journal of Business Research, 134,
pp.560-573.
Ehie, I.C. and Chilton, M.A., 2020. Understanding the influence of IT/OT Convergence on the
adoption of Internet of Things (IoT) in manufacturing organizations:: An empirical
investigation.
Hankammer, S and et.al., 2021. Principles for organizations striving for sustainable degrowth:
Framework development and application to four B Corps. Journal of Cleaner
Production, 300, p.126818.
Howard, T.L. and Ulferts, G.W., 2020. The Changing Value of Diversity in Organizations.
Journal of Business Diversity, 20(2).
Kim, J.J. and Kim, S.J., 2018. Women’s leadership in family business organizations. In Korean
Women in Leadership (pp. 141-158). Palgrave Macmillan, Cham.
Sarja, M., Onkila, T. and Mäkelä, M., 2021. A systematic literature review of the transition to the
circular economy in business organizations: Obstacles, catalysts and ambivalences.
Journal of Cleaner Production, 286, p.125492.
Zehoul, A.B., 2021. Under Pressure: Understanding How and Why a Multinational Firm Reacts
to Consumerist Organizations in Brazil’s Business Context. Latin American Business
Review, pp.1-22.