Factors Influencing St. James' Court's External Business Environment

This report provides a comprehensive analysis of the external business environment impacting St. James' Court, a hospitality organization. It examines the structure, operations, and influence of local government, assessing its impact on the business. The report further explores the role and influenc...Read More

External Business
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TABLE OF CONTENTS
INTRODUCTION ...............................................................................................................................3
TASK 2.................................................................................................................................................3
2.1 Discussing the structure, operations and influence of local government on St. James' Court...3
2.2 Role and influence of the EU and its impact on business and service industry .......................4
2.3 Assessing the roles of pressure groups and their political influence in relation to national and
local issues regarding hospitality industry.......................................................................................5
2.4 Analysing the legal framework within UK, with the main differences in English and Scottish
systems.............................................................................................................................................5
2.5 Evaluating the UK and EU legislative process as it impact St. James' Court business and
services at both local and national level..........................................................................................6
TASK 3.................................................................................................................................................7
3.1 Assessment of different types and characteristics of business which operates within hospitality
industry............................................................................................................................................7
3.2 Discussion of legal process necessary for formation and dissolution of registered company...8
3.3 Analysing the structure and processes that determine the responsibilities and control within a
registered company..........................................................................................................................9
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10
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INTRODUCTION
External business environment is considered as combination of diverse factors that impacts
overall operational activities which has been carried out by the organisation. Improper consideration of
external business factors can influence the achievement of targeted objectives. Business organisations
that operate business in hospitality sector also faces number of challenges to accomplish the objectives.
Classification of key environmental aspects can be as social, economic, political, etc (Wellington,
2012). It is essential for the business firm to control activities according to needs of external elements.
In order to understand the concept of external environment, the current study will focus on
work culture of St. James' Court. It will provide information regarding structure and operational
activities of hospitality sector within UK. It will also focus on the demographic trends that influence
the employment patterns in the hospitality industry. Further, it will also analyze EU and its impact on
service industry. The report assesses role of pressure groups and their political influence in relation to
national and local issues. Furthermore, it also focuses on different characteristics of business that are
related to hospitality sector.
TASK 2
2.1 Discussing the structure, operations and influence of local government on St. James' Court
Local government is referred as public administration which operates number of managerial
activities in the particular state. It has been spotted that the authority performs its duties as per the
regulations by considering the legal aspects. There are number of local authorities present in UK that
perform various governing activities at the local level (Persson, 2006). British hospitality association is
also one of the governing authorities which is responsible in meeting the standards of hospitality sector
within UK. Moreover, state government also plays a key role in effective management of diverse
activities by providing direction to municipal authorities. It further renders large number of services to
local communities like, employment generation, public health facilities, education, local area
development, transportation connectivity within local areas etc (Mohan, 2009). Number of legal
policies and procedures has been established by regional governance which may influence the work
culture of hospitality organisations. Therefore, it can be stated that service organizations are directly
affected by the structure and operations of the local government.
Moreover, the local government authorities make sure about various factors such as London
borough, metropolitan, etc. Government focuses on various activities that can provide better assistance
to local development. Their key role is to effectively identify various types of expenditure and meet the
key needs of local individuals. It assists in deciding the local taxation and other rules. Changes in these
kinds of practice of policies can influence the overall working of St. James' Court (Hurn, 2011). It has
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been spotted that the recycling of waste material policy can also impact the work culture of the
hospitality organisation. Moreover, various standards are also required to be maintained within hotel as
per guidelines of local government in order to meet goals effectively. Classification of few standards
can be fire and public safety and social care (Joseph and et.al. 2013).
In addition to this, it can be stated that the local government activities influences the work
culture of St. James' Court. Changes in taxation policies will force the management to make some
changes as per new guidelines in order to maintain stability aspects. For example, advancement in local
tax will increase the overall cost of operational activities and influence profit margin ratio in diverse
manner. In order to expand business within UK, the management requires expansion permission from
local authorities (Ingulli, 2014). Any kind of avoidance may lead business to failure and conflict
situation. Furthermore, employment policy of local authorities forces the organisation to create job
opportunities within sector so that social development aspects can also be accomplished. In this, it is
necessary for management of St. James' Court to focus on recruitment and selection process.
2.2 Role and influence of the EU and its impact on business and service industry
There are number of EU policies that need to be followed by the management of St. James'
Court in order to have sustainable growth. In addition to this, it is considered as a political and
economical body that controls various trade activities within UK. It promotes fair trade opportunities in
the market so that ethical aspects can be balanced in appropriate manner (Ghannadian, 2006). Number
of standards has been introduced by EU in the market to develop fair trade environment.
Employment policy of EU is established to create better job opportunities in the market. It
means management of St. James' Court must design activities according to guidelines of the policy. It
helps in reducing the unemployment and poverty level of country. Equal opportunities must be
provided to all candidates during recruitment and selection process. Any kind of legal avoidance may
impact the operational activities of St. James' Court in negative manner (Craig, 2012). EU employment
policy also motivate firm to conduct training program to improve skills of workforce. Moreover, EU
also focuses on developing diverse regional policies to ensure that the ethical practice is being
promoted within the environment. In addition to this, the key motive of regional policy is to cut down
the unemployment ratio and provide better opportunity to infrastructure development. It means while
business expansion activity it is essential for management of St. James' Court to consider regional
policies in appropriate manner (Harrison, 2013).
For example, the business organisation is looking for business expansion but management has
not considered regional policies in appropriate manner. In this situation, St. James' Court can face
ethical issues and may lead business to conflict situation. Other than this, local authorities can also
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impact business of hospitality organization in positive manner (Dascalu, 2010). For instance, the
government has decided to bring some positive changes in fiscal policy. Decrease tax rates will provide
benefit to the management of St. James' Court. This is because it will force organisation to invest more
in market so that business can have impressive level of success (Mariappanadar, 2012). Monetary
policy of UK government will directly affect the internal and external operations of St. James' Court as
it brings changes in the interest rates that are set by the government.
2.3 Assessing the roles of pressure groups and their political influence in relation to national and local
issues regarding hospitality industry
As per the structured study, it can be said that the pressure group is considered as a combination
of various individual factors that share common belief. In addition to this, it can be stated that the
interest of thoughts can also influence the activities and policies formation of government. These kinds
of changes can also impact the operational activities of hospitality industry. Perception of social groups
plays a significant role in determination of diverse needs. In policy design process the government
consider social, political and religious factors in order to meet objective (Wang, 2011). It means it is
also necessary for management of St. James' Court to ensure about these factors in appropriate because
it can influence the overall activities of organisation. Therefore, to impact government and public
opinion varied actions are used by pressure groups. Classification of activities can be as media
campaign, publicity actions, etc. In addition to this, improper design of policies can influence the brand
image in negative manner (Hayes, 2012).
Furthermore, it has been spotted that the management of St. James' Court must maintain public
relationship with government authorities of UK. In other aspect, it can be stated that the business
organisation can pay taxes on time in order to maintain good relations with government. With an
improved level of relationship the business firm can force authorities to provide some assistance by
decrease in taxation, etc (Xiao, 2009). Improved level of focus on CSR activities also forces
government to provide some relaxation in taxes and other aspects. It indicates that political influence of
pressure groups impacts the work activities of government and local authorities.
2.4 Analysing the legal framework within UK, with the main differences in English and Scottish
systems
There are number of legal frameworks in UK that can impact the business opportunities for St.
James' Court. In other aspect, it can be stated that in order to have better business opportunities, it is
essentials for management of St. James' Court to focus on various legal frameworks. With an improved
focus on legal aspects the management of hospitality organisation can assure that functional activities
are accomplished in ethical manner (Lenartowicz, 2009).
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Legal frameworks also assist business organisation to raise funds in transparent manner. This
kind of business activity increases the brand image in the market. In UK there are three major legal
systems that are applicable, England, Wales, Scot law, Northern Ireland etc. It has been identified that
these kinds of legal systems follows number of regulations while dealing in the market.
According to common law the judges of legal system have rights to take any kind of fair
decision. It is essential to ensure that the decisions are taken into account as per the conditions.
Number of legal aspects must be considered in appropriate manner and judge must have capabilities to
take unbiased decision. In addition to this, the European Policies also need to be consider by hospitality
organisation while operating business in European nation (Grier, 2006). Therefore, laws and
regulations framed by EU should have more priority over UK law. Other than this, the human rights
policies can also influence business operational activities so management of hospitality organisation
must consider it as critical aspect. Proper safeguarding must be provided to all employees according to
examination of human rights.
English law Scottish law
It is a legislation document that is followed by
states of England and Wales. Common laws are
constituting in order to meet standards.
It is considered as hybrid system in which
number of common civil laws are constituted.
It is also essential for hospitality firm to serve
hard drinks according to law of licensed
premises.
As per the Scott laws, pubs are not allowed to
serve alcohol 24 hours a day. It means pub in
hotel can not serve hard drinks for 24 hours.
It is essential for hospitality firm to design
lobby and specific are where individuals are
permitted to smoke.
According to consideration of Scot law the
hotel can allow individual to smoke only in
public places. Such as hotels, restaurant and
pubs.
In English law, legal rights are available to
individual on completing the age of 16 (Carter,
2007).
The legal rights can be acquired under Scott
law only after age of 18 year.
Proper accomplishment of health and safety act
is essential. Legal aspects must be considered
while providing doctrine services.
In Scott law the policies are formed under
union consideration.
2.5 Evaluating the UK and EU legislative process as it impact St. James' Court business and services at
both local and national level
As per the structured study, it can be said that legal policies of UK and EU impacts the business
and services of St. James' Court in diverse manner. It clearly indicates that national and local policies
have direct effect on the operations of organisation. It has been spotted that the hospitality industry is
generating high ratio of contribution in UK economic development. In this respect, authorities are
focusing on decrease in taxation and other rates so that business organisations can have better
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opportunities (Brinkman, 2014). In order to have sustainable development the management of St.
James' Court must focus on various legal policies because it avoids legal consequences.
Moreover, competition policy of EU is significant for hospitality organisation because it helps
in maintaining fair trade environment. It also allows business firm to understand ethical aspects in
appropriate manner so that healthy competition environment can be maintained. This policy aims at
enhancing the competition in market so that customer can be benefited. It is essential for management
of St. James' Court to follow legal aspects under the policy because it provides competitive advantage
and lead business to impressive level of success (Adhikara, 2012). However, it can also increase the
overall operational cost of hotel which will influence profit margin ratio in negative manner.
Other than this, anti-discrimination act also provides better job opportunities to UK market. If
organisation will not provide equal opportunity to candidates then it will influence overall operational
activities in negative manner. It is essential for management of St. James' Court to ensure that the work
culture is not having any kind of discrimination activity. Key factors that need to be consider as
classified as age, gender, occupation, colour, caste, etc. Furthermore, the license policy also need to
consider as significant aspect in order to operate licensing activities (Adhikara, 2012). St. James' Court
needs licence for bar services, any kind of avoidance in this may impact business in negative manner.
To avoid number of legal issues all the polices must be strictly considered by hospitality organisation.
TASK 3
3.1 Assessment of different types and characteristics of business which operates within hospitality
industry
It has been spotted that there are number of business organisations that operates business within
hospitality industry. In addition to this, it can be said that the business organisations can have same
characteristics but their service features can be different within industry.
Hotels are considered as essential section of hospitality sector and they function number of
activities. In this respect, it can be said that the hotel firms mainly focuses on accommodation, meals
and other supportive services in order to meet key needs of customers. In addition to this, hotels also
provides some other services (Brinkman, 2014). Classification of services can be as laundry, swimming
pool, entertainment facilities, luxurious services, etc. It has been spotted that the hotels are also
generating high ratio of turnover in hospitality sector.
Other than this, restaurant are also essential part of hospitality sector. It plays a key role in
meeting food and beverages needs of travellers. There are number of restaurants in UK hospitality
sector that provides specialised meals according to specific needs of customers. One of interesting
factor is that every hotel contains restaurant but any restaurant do not have hotel facility. It also attracts
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more and more customers towards hotel business so it can be considered as supportive system of hotels
(Carter, 2007). Moreover, pubs are also essential segment of hospitality industry. Number of hotels
provide pub and bar services to its customers in order to meet customers needs. It is referred as
entertainment source where travellers can spend their free time. Liquor and other services also
provided in pubs so that people can feel relaxed and entertained (Grier, 2006).
3.2 Discussion of legal process necessary for formation and dissolution of registered company
As per structured study of legal procedures, it can be stated that there are number of legal
procedures needs to be followed by organisation during expansion and dissolution. In order to have
registration of services and brand the St. James' Court requires consideration of few steps.
 In initial stage the company needs to incorporate its activities with an purpose and expectations
of owner. It is also essential for organisation to get registration of activities under Company
Act. Company name, address and other necessary information need to be registered for ethical
working (Lenartowicz, 2009).
 It is also necessary for organisation to register its online portal in order to meet the standards.
List of share availability also need to be provided.
 After application of registration the company needs to ensure that operational activities are
started within 3 months. Registration under corporation authority is also significant for
organisation.
 The company can also be registered by post using form IN01 or by using an agent or third party
software (Xiao, 2009).
 Proper communication regarding company registered address is essential. Official statements
must be communicated among all members and regulatory authorities in order to meet
standards.
 After this, appointment of company secretary and other governing bodies will take place. After
which shares can be issued to individuals. Shareholders selection must be in ethical manner by
the authorities.
In order to have dissolution of company, the application must be provided to officials. It
requires permission of directors and governing bodies. It is also essential to ensure that trade activities
must be stopped within 3 months. Proper communication about dissolution is required to all
stakeholders such as employees, shareholder, creditor, etc. Discussion must be carried out among all
members to dissolve the business (Hayes, 2012). Owner and director permission is required during
sales of assets before dissolution. Overall expenditure of dissolution activity will be covered by
directors.
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3.3 Analysing the structure and processes that determine the responsibilities and control within a
registered company
Structure is considered as hierarchical allocation of various roles and responsibilities within
organisation so that objectives can be accomplished in appropriate manner. It also helps in effective
designing of communication system. It has been spotted that every member within business have
different roles.
Board of Directors: It is essential for members to made strategic decisions for betterment of the
business. Working of board of directors helps in effective accomplishment of organisational goals and
objectives.
Non-executive Directors: Their key role is to provide assistance to board of directors by
accessing number of policies. Members also ensure about business planning activities in order to meet
the expectations of stakeholders (Mariappanadar, 2012).
Executive Directors: Board of directors also requires support from executive directors in
effective development of vision and strategic objectives. They are considered as professional advisor's
for Board of Directors.
Finance report and control: Members provides an assistance to determination of various
investment options that can lead business to impressive level of success. They also focus on
advancement in profit margin ratio of organisation by evaluating number of alternative methods
(Wang, 2011).
Roles of auditors: Evaluation of financial performance is also required to ensure about tax
policies and duties.
CONCLUSION
As per above study, it can be concluded that there are number of external environmental factors
that can impact the operational activities of business. It has been spotted that the changes in
government policies can also influence the work culture of hospitality organisation. In the support of
this, it can be said that there are number of steps that need to be followed by organisation in order meet
registration and dissolution standards. In addition to this, there are many types of business which are
operating under hospitality industry. These business firms have similar characteristic and single unique
feature.
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REFERENCES
Books and Journals
Adhikara, M., 2012. Business Economics. Excel Books India.
Brinkman, J., 2014. Unlocking the Business Environment. Routledge.
Carter, N., 2007. The Politics of the Environment: Ideas, Activism, Policy. Cambridge University
Press.
Craig, T., 2012. Organisations and the Business Environment. 2nd ed. Routledge.
Dascalu, C., 2010. The externalities in social environmental accounting. International Journal of
Accounting & Information Management. 18(1) .pp.19 – 30.
Ghannadian, F. F., 2006. Fiscal policy and political limitations in the European Union. International
Journal of Commerce and Management. 16(1). pp.41–50.
Grier, J., 2006. Recent Developments in International Trade Agreements Covering Government
Procurement. Public Contract Law. 35(3).pp. 385-407.
Harrison, A., 2013. Business Environment in a Global Context. Oxford University Press.
Hurn, B. J., 2011. Simulation training methods to develop cultural awareness. Industrial and
Commercial Training. 43(4). pp.199 – 205.
Ingulli, E., 2014. Law and Ethics in the Business Environment. Cengage Learning.
Joseph, C., and et.al. 2013. Environmental literacy and attitudes among Malaysian business educators.
International Journal of Sustainability in Higher Education. 14(2). pp. 196-208.
Lenartowicz, T., 2009. Culture, freedom and economic growth: do cultural values explain economic
growth?. Journal of World Business. 33(4).pp. 332-356.
Mariappanadar, S., 2012. The harm indicators of negative externality of efficiency focused
organizational practices. International Journal of Social Economics. 39(3) .pp.209 – 220.
Mohan, R. T. T., 2009. Competition Policy Dilemmas. Economic and Political Weekly. 35(28/29). pp.
2499-2502.
Persson, O. E. L., 2006. Time Consistency of Fiscal and Monetary Policy: A Solution. Econometrica.
74(1). pp. 193-212.
Wang, D. A., 2011. Organizational learning: Perception of external environment and innovation
performance. International Journal of Manpower. 32(5/6) .pp.512 – 536.
Wellington, C. D., 2012. The command economy cometh. International Journal of Social Economics.
27(4). pp.259 – 271.
Xiao, H., 2009. An empirical study of usage of external business services by Chinese SMEs. Journal
of Enterprise Information Management. 22(4). pp.423 – 440.
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Online
Hayes, M., 2012. You Inc. The Benefits & Costs of Incorporating Your Business. [Online]. Accessed
through <http://www.shopify.in/blog/7037600-you-inc-the-benefits-costs-of-incorporating-your-
business>. [Accessed on 18th February 2016].
United Kingdom GDP Annual Growth Rate. 2016. [Online]. Available through:
<http://www.tradingeconomics.com/united-kingdom/gdp-growth-annual>. [Accessed on 18th
February 2016].
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