International Expansion: Franchising and Licensing in Hospitality

This report examines the role of franchising and licensing in the hospitality industry, focusing on international business expansion and increased profitability. It highlights how companies, particularly in the hospitality sector, utilize these methods to expand their operations globally and boost brand recognition. The report delves into the significance of operational and functional departments within organizations, emphasizing their collaboration in achieving organizational goals, such as planning activities in hotels. It also underscores the rapid growth of the hospitality industry, its contribution to the global GDP, and the employment opportunities it generates. The report references the success of various food chains, such as Burger King and McDonald's, in enhancing profitability and market share through expansion strategies. Finally, the report discusses the interrelationships between operational and functional units within the hospitality industry and the contemporary trends impacting the sector.

Contemporary Hospitality Industry
Hospitality industry is consider as fast growing industry which attract more
customers and investors. The respective industry contributes approx. 10 % at the
world GDP. This sector is growing its business and making its presence at
worldwide level i.e. local, national and international. There are various sub sectors
of hospitality industry which offer diverse range of products and services,
respective industry generates huge profit through restaurant and hotel ventures.
Through the record it can be analysis that more that 700 million tourist or visitors
visit various places which generate huge profit (Significance of Hospitality and
Tourism in a Country’s Economy, 2019). In United Kingdom approx. 10 %
employment is generated by hospitality industry. This is possible through opening
of various food chains restaurants such as Burger King, Pizza Hut, McDonald’s,
KFC and many more as well as these help in enhancement in profitability ratio and
market shares.
In an organization each and every organization plays an essential role which help
them in attaining target in effective manner. The departments are mainly divided
into two manners i.e. operation departments and functional department. These
both department work together in order to attain organisational goal and
objective. Such as for the planning for any activities which is going to conducted
in respective hotel all departments come together in order to make activities
properly. Like finance department manager finance and budget of activities and
housekeeping as well as front office help in managing activities. Through
collaboration of both department company able to conduct program in effective
manner.
Contribution of hospitality industry Interrelationships of operational and Functional unit
Use of franchising and licensing agreements
Franchising and licensing help a firm in expanding their business at international
market in order to increase profitability ratio as well as market shares. Through
this companies which are operating in hospitality industry get opportunities to
expand their business functions at worldwide market. In this method company
mainly give right to another companies to sales their products with their brand
name. By this they also able to increase their brand popularity.