Contemporary Hospitality Industry: Functions, Franchising, and Economy

This report provides an overview of the contemporary hospitality industry, focusing on the interrelationships between operational and functional units within organizations like Radisson Blu. It explores the use of franchising and licensing agreements as strategies for business expansion in the international market, highlighting their role in increasing market share and customer base. The report also examines the hospitality industry's significant contribution to local, national, and international economies, including its impact on GDP, employment generation, and the growth of tourism. The analysis includes examples of major international hospitality companies and discusses the industry's overall growth and influence on global economic conditions.

CONTEMPORARY HOSPITALITY INDUSTRY
Contribution of hospitality industry to local, national and
international economies:
Hospitality industry is a fasting growing business, which provide opportunities to
others to expand their business at international level. This industry make easy to
visitors to travel from one to another and stays there effectively (Gin, Kwon and
Kim, 2013). This industry contribute near about 10 % to the GDP of world. The
respective sector is growing rapidly and developing its presence at worldwide i.e.
international, nation and local level. There are various hospitality companies,
which are operating at international level such as Radisson Blu, Marriott, Hilton
and many more. By analysing data, it is evaluate that there are approx. 699 million
visitors travel and visit to diverse places, which help country in growing their
economy. Along with this, they also help in generating employment for local,
national and international peoples such as in United Kingdom near by 12 %
employment is generated through hospitality industry. The main reason behind
this is fastest growing of food as well as hotel chain such as Burger King, KFC,
Hilton, Radisson Blu, Pizza Hut, McDonald’s and many more. This will also help
in generating employment as well as enhancing economy of country. Through this
international economy, get increase, which also help, in improving living
condition of populations.
Review the interrelationships of operational and functional units
In every organization operation and function department is necessary because they
help in conducting work in effective manner. When respective departments conduct
their work properly, company able to attain their goal as well as satisfying
customers in proper way. Along with this, operational and functional department
are interrelated, which help in conducting work properly. Such as if, Radisson Blu
is organizing an event so in this functional department plan all the activities as well
as budget, which are required to conduct event successfully. After planning
operational department conduct work in order to execute plan effectively that leads
to accomplishment of work in proper way.
Use of franchising and licensing agreements
Every organization want to expand its business at international level because
through it they able to enhance high profitability, market shares, customer's ratio
and many more. So in order to grow globally company may adopt various methods
such as franchising, licensing, partnership and so on. Through franchising as well
as licensing hospitality industry able to expand their business in international
market. In this, they mainly provide authority to another party to sale their products
on their name and logo. Through this, company able to develop their presence at
various country which help in enhancing customer's base as well as profitability
ratio.