External Business Environment - Assignment Example

External Business Environment Table of Contents Task Discuss the Structure and Operation of the UK Economy 3 Task 2: Analyse the Current Government Economic Policy and Its Effect on Business and Service Industries 4 Task 3: Discuss Income, Wealth, Employment and Occupational Distribution In Relation To the Provision of Business and Service Operations 5 Task 4: Assess the Demographic Trends That Influence the Employment Patterns in the Hospitality Industry 6 Task 5: Analyse the Social Structure of the People Employed In a Major UK Hotel Group 7 Task 6: Discuss the Structures, Operations and Influence of Local Government on a Major UK Hotel Group 8 Task 7: Evaluate the Role and Influence of the EU, And Its Impact on Business and Services Industries 9 Task 8: Assess the Role of Pressure Groups and Their Political Influence in Relation to National and Local Issues in Regards to the Hospitality Industry 10 Task 9: Analyse the Legal Framework within the UK, Identifying the Main Differences between the English and Scottish Systems 11 Task 10: Evaluate The UK And The EU Legislative Process As It Affects A Major UK Hotel Groups Business And Services At Both Local And National Level 12 Task 12: Discuss the Legal Process Necessary for Formation and Dissolution of Registered Company 13 Task 13: Analyse the Structure and Process, Which Determines the Responsibilities and Control with a Registered Company 14 References 16 Task 1: Discuss the Structure and Operation of the UK Economy Recent economic review of the UK depicts a growth of 0.8% within the consecutive three months period since September 2013. The growth rate acceleration has been much apparent in the fields of service sectors, construction along with the production industries and the manufacturing secretors functioning within the UK economy (Wales & Jowett, 2014). In this respect, it has been considered that the UK travel industry dimension along with the tourism sector contributes five times more than that of the automotive and the manufacturing sectors within the nation. This reflects about the wider size of the UK’s hospitality industry contributing more in comparison to many other prospective sectors towards its economic growth (World Travel & Tourism Council, 2012). Furthermore, as the national governance structure takes into account the protection of the people’s interest with utmost significance, its regulations attempt to provide ample opportunities for the private sectors to flourish within the local economy. The effective application of the UK regulations has also fostered greater investments within the economy for its development. Perhaps, it is owing to this particular understanding that the UK is often considered as an arable land that supplies adequate amount of natural resources to help the industries flourish, both in the short-run and the long-run. Besides, the UK has also been considered as the 32nd largest oil reserves that further conveys about the strength and security of the UK economy (World Travel & Tourism Council, 2012). Task 2: Analyse the Current Government Economic Policy and Its Effect on Business and Service Industries Considering the various operations in the nation, the UK government has enacted ‘The New Deal’ with a motive to provide employment opportunities to the society. This particular policy measure has proved useful for the UK government to preserve a competitive environment within the national market, creating job opportunities for the society and ensuring better flow of wealth within. Accordingly, the government has implemented the regional polices by providing job opportunities in the UK’s hospitality industries including the Warner Leisure majority hotel groups. One of the inflation policy framed by the UK’s government is Monetary Policy Committee. This particular governmental policy monitors the general rise in the prices. In-fact, the governmental policy related to inflation also monitors the excessive borrowing and the spending of the businesses by implementing higher interest rates. This will create a hurdle for Warner Leisure majority hotels groups to borrow or lend monetary fund excessively. The education and the training policy have also been transformed by the government to provide the business establishments with skilled labours. Furthermore, the government is also spending in infrastructural development schemes to enrich the business environment within the UK. These measures have certainly been beneficial for accelerating the growth of the UK hospitality industry, by increasing its tourism value. The taxation policies implemented by the government have also been noteworthy and beneficial for the nation (OFallon & Rutherford, 2011). Task 3: Discuss Income, Wealth, Employment and Occupational Distribution In Relation To the Provision of Business and Service Operations The income generation possibilities of the hospitality industry are deemed to be based on its users largely, who are also regarded the end customers. For instance, the online review websites plays a vital role in the income generation for the hotel industry. In this respect, the reviews reflect about the encouraging spending along with the longer stay in the hotels of the UK. This particular factor influences the customers to enjoy the services, thereby creating income opportunities for the hotel industries. In accordance to the hotel sector, wealth can be identified in terms of the resources and the capitals have been utilised effectively in various segments of the hospitality sector. The hotel industries are greatly interrelated with the hospitality sector as a whole. Therefore, the resources have been divided in the sectors such as hospitality services, catering, pubs and bars among others. Notably, these sectors are important as it altogether helps in the generation of income pertaining to the hospitality industry (Nicholls, 2012). The UK hospitality industry services include event organisation and restaurant along with bar services for 24 hours and seven days a week. Furthermore, the hospitality services also render effective operational facilities such as IT, human resources services and financial services among others that provide ample opportunities to the UK population. Considering the employment opportunities within the UK hospitality industry includes general management roles along with the food service as an aspect. There are further huge opportunities for the operational staff, finance officers along with the business managers, which particular reflects about the occupational distribution within the UK’s hospitality industries. Within the UK hotel industry, the pubs and clubs also provide various opportunities to the licensed providers such as event organisers and the retailing opportunities. These service operation related to the business activates remains similar for the Warner Leisure Hotels (Rook, 2011; Warner Leisure Hotels, n.d.). Task 4: Assess the Demographic Trends That Influence the Employment Patterns in the Hospitality Industry Demographic trends usually reflect the composition along with the development of the human population, with strong influence on the employment scenario within the society. The demographic changes within the UK’s hospitality sector can also be observed to impose significant impacts on the employment patterns. Correspondingly, it has been ascertained that the employment prospects within the UK hospitality sector is likely to accelerate within the coming years. As per the projected data, the demand for the graduates in the labour market of the hospitality industry is likely to amount at 69000. In the recent scenario, the trends within the hospitality sector further reflects a decline in the percentage of the bar staff by approximately 30% since the year 2005 (Rook, 2011). Furthermore, it has also been determined that employment opportunities for the budget operators, such as takeaways, cafes and the food outlets among others is likely to accelerate in the coming years. The other factors that might have a strong impact on the hospitality sector are weak currency rates, the rising costs of the goods and services, latest immigration controls and the ageing population. Consequently, it has also been determined that demand for the skilled chefs along with managers is accelerating in the recent scenario. The change observed within the dimensions of the hospitality sector is due to the loopholes, such as communication, multi-tasking, customer’s service and marketing (Rook, 2011). Task 5: Analyse the Social Structure of the People Employed In a Major UK Hotel Group The social structure of people employed in the UK hospitality industry, which also imposes a strong influence in the human resource functioning of Warner Leisure Hotels (i.e. a major Hotel Group operating in the UK), is built on the principles of equality, security and human dignity among others. These societal factors play a vital role in assisting the low-skilled labourers with limited industrial knowledge to adapt the new workplace maintaining parity between the organisational culture and the social norms followed within the external social environment of the UK. There are other sociological factors to assist the hotel chain to mitigate the workplace challenges effectively having a better control on the people employed. In this respect, the workplace challenges related with the social structure of the people employed can be identified in terms of occupational safety and health, shift in the work regulation, wages, gender equality and the job classification among others. In accordance with the societal structure of the employees, observable within the Warner Leisure Hotels, it can be inferred that principally owing to inadequate adherence with the societal structure, a degree of communication gap between workers and the management exists (Warner Leisure Hotels, n.d.). This further hampers the effectiveness of the entire human resource management practices followed in the organisational chain. Correspondingly, the European Union has undertaken an initiative for strengthening the employees’ societal structure within the workplace, which has also affected the human resource management practices in the major hotel chain impacting the social structure of the people employed. In this respect, the directive undertaken refers to European Work Council (EWC) that mainly aims at gaining knowledge about various management issues globally (International Labour Organization, 2010). It is worth mentioning in this context that the UK hotel sector is experiencing low level of women participation, which further reflects about the societal structure of the workforce. In this respect, it has been further determined that participation of women in the managerial level is also ascertained to be low in this sector, as can also be observed in Warner Leisure Hotels (International Labour Organization, 2010; Warner Leisure Hotels, n.d.). Task 6: Discuss the Structures, Operations and Influence of Local Government on a Major UK Hotel Group Warner Leisure Hotel Group was first opened by Harry Warner at Hayling Island. The hotel chain entails a number of other hotels that provide comfort services to the guests from all around the world. As observed, it caters to young customers aged 21 years and above. Correspondingly, the various operations being undertaken by Warner Leisure Hotel groups includes booking-in, check, in, exclusive room services, cleanliness, food, activities and the value for money among others. Based on these operations, the concerned majority UK hotel group has become quite famous amidst the national as well as international guests (OFallon & Rutherford, 2011). In recent years, it has been observed that wider range of changes occur within the hospitality industries of the UK. In this respect, the Warner Leisure Hotel group also faced similar changes due to the continuous up-gradation of the UK economy. Local government reforms also play a vital role in the policies of the UK hospitality sector. Accordingly, the local government in the UK have been observed to enact provisions with respect to the hotel services that aids in attaining the desired objectives of providing accelerated services to the customers. Additionally, the government has also been framing policies pertaining to sustainability (Warner Leisure Hotels, n.d.). In the midst of the global competitiveness aspects persisting within the hotel sector, the sustainability policies shall assist Warner Leisure Hotel group to provide adequate and advanced services to its clients. Task 7: Evaluate the Role and Influence of the EU, And Its Impact on Business and Services Industries The European Union (EU) policies have laid greater impact on the employment factors within the hospitality industry. Europe is considered as one of the vital tourist attraction places, which has further attracted considerable attention from the government to develop strategies that could be helpful in binding the operations of the hospitality industry. In this respect, the EU possesses an influential factor for attracting the hotel sector and delivering accommodation and leisure services to the customers. To state from a critical point of view, the development of the EU policies and the reforms with respect to the hospitality sector have given a new height to the hotel sectors in providing advanced opportunities to the customers. Furthermore, it has also been ascertained that the hotel along with the bar sectors in the UK provides larger employment opportunities to the society. It has been further observed that the hospitality sector of the UK has enjoyed an accelerated employment growth in recent years. The EU’s employment reforms have contributed in deriving the accelerated economy with respect to the hotel industry. It has been considered in this regard that the EU employment reforms have delivered considerable impacts on attaining the new opportunities for the younger generation (Andriotis, 2004). Hence, it can be asserted that the EU reforms and the regulations are influencing the member states by binding them directly, without taking into account the national legislation regulations. The EU regulations impose taxation rate, international trade reforms and other business regulations, which the hospitality sector needs to comply. In the recent scenario, it has been observed that the EU regulations and reforms are imposing unnecessary costs over the UK business activities, which has become a concern for the UK government. In this respect, it has been further noted that the government has undertaken numerous measures to monitor the high costs being imposed by the EU on the UK hospitality sector. The UK government has also established few Regulatory Fitness and Performance Programme (REFIT), apart from extending the applications of evaluations related to the existing legislations. Furthermore, it has also been strategically involved in the acceleration of the common commencement dates with regards to the latest EU legislations. The role and the implication of the EU on the hotel industries of the UK can be well ascertained from this particular fact (Crown copyright, 2013). Task 8: Assess the Role of Pressure Groups and Their Political Influence in Relation to National and Local Issues in Regards to the Hospitality Industry Pressure groups are considered as the vital part for enduring a healthy democracy. In this respect, it can be further ascertained that the rapid as well as sustained expansion of the activities of the pressure groups has given a new way to governmental policies. In this respect, it can be further noted that the involvement of the pressure groups within the political system of the UK has also impacted the regulations on the context of national and local issues. The functions of the pressure groups involve promotion of discussion along with the mobilisation of public opinion pertaining to the key issues. Apart from this, the pressure groups also play a vital role in providing education to the citizens with respect to specific issues, as the pressure group activities mainly enhance the democratic participation and diversity among others (Pearson Education, 2010). The pressure groups also articulate the issues, which the political parties usually take into consideration due to its sensitiveness. Besides, the pressure groups also prove to be a vital access point for the redressed of the grievances. These influences led by the pressure group can be easily identified within the hospitality sector in the contemporary scenario of the UK. In this respect, it can be further noted that the pressure groups tend to have their radical influence on the formation and reformation of regulations, which in turn helps the services industry to mitigate their rudimental problems. The pressure groups also cause a significant degree of impact on the common laws that create new reforms and minimize the EU costs pressure witnessed by the UK hospitality sector (Pearson Education, 2010). Task 9: Analyse the Legal Framework within the UK, Identifying the Main Differences between the English and Scottish Systems The UK laws are based upon four vital sources, i.e. legislation, common law, European Union Law and European Convention on Human Rights. The legislation entails the activities of the legislature, while the body entails the power of passing a particular law amidst the concerned countries. Common law is hereby considered as the legal system of England and Wales. In consideration with the European Union, its regulations usually take precedence of the reforms conducted within the framework for UK legislations. Furthermore, the European Convention on Human Rights has enabled the UK courts to protect the fundamental rights that have been identified within the ECHR (ILEX, n.d.). Consequently, there are certain differences between the English and the Scottish laws. For instance, as per the Scottish law only the hotels and not the bars are permitted to serve alcohol 24 hours a day. However, according to the English law both bars and the hotel are allowed to serve alcohol to the customers 24 hours a day (OFallon & Rutherford, 2011). Task 10: Evaluate The UK And The EU Legislative Process As It Affects A Major UK Hotel Groups Business And Services At Both Local And National Level The basic laws as per UK legislation are related to the common laws, administrative agencies, constitution and legislative statutes and the ordinances. These basic laws incorporate the international, civil and the criminal law within it. In this respect the common legal issues, which the hospitality sector faces are civil rights with respect to the customers. Furthermore, it has been noted that most of the civil case filed against the hotel industries involves ‘claims of negligence’. This particular claim of the customers reflects about breach of the responsibility of hotel sector. In accordance to the UK and the EU legal process, it involves certain regulations to prevent the UK major hotel groups from conducting any breach of operations. This particular regulation also requires the compliance of the Warner Leisure majority hotel groups under any breach of responsibility. Accordingly, the European Convention of Human Rights implements laws and regulations to protect the fundamental rights of the people. In this respect, both the UK and the EU regulatory bodies have frame their policies keeping in mind the benefit of customers as well as the hotel sector. These norms are also applicable in case of Warner Leisure major hotel groups (OFallon & Rutherford, 2011). Task 11: Assess the Different Types and Characteristics of Business That Operate Within the Business and Services with Focus on the Hospitality Sector The UK hospitality sector depicts a wider view of the industry ranging from a single-person organisation to the corporations operating globally. The various sectors being involved within the hospitality industry are hospitality services, hostels, contract catering, membership clubs, pubs, bars along with the nightclubs, travels services and events among others. The hospitality sector is considered an important source of income for the economy. In the contract catering, which is a part of the hospitality sector within the UK involves the provision for catering of the meals to the hospitals staff members and the community schools within its local periphery. Besides, the UK hotel industry have observed high turnover rate of 31% in recent years reflecting the size of the industry along with its significance in boosting economic growth. Other vital characteristics of the UK hospitality sector include the employment opportunities, which were observed to be around 4.5% to the society (Companies House, 2014). Task 12: Discuss the Legal Process Necessary for Formation and Dissolution of Registered Company In accordance with the UK Companies Act 1985, a company can be established by any person under the condition of getting one subscriber to the Memorandum of Association. A registered company usually undergoes the incorporation procedure, where the company needs to be registered under the Companies House. After the completion of the incorporation procedure, the other documents are to be duly filled in order to obtain the registered number. The documents, such as applications and the allotments, registers of the transfers, share certificates, Memorandum of Association and Minutes among others are required for the completion of the registration of a company (UK, 2014). As it has been observed, a registered company is usually dissolved under section 1003 of the UK Companies Act 2006. The requirements for the company dissolutions state that it must have traded for at least three months. Furthermore, the company must endure the same name within three months without altering it. The company must not be subjected to any kind of legal proceedings and/or disposal of value pertaining to property or the rights. In the completion of the aforementioned criteria, the company is required to fill the application form of disclosure and continue to follow the procedure of dissolution (Companies House, 2014). These provisions can also be observed as persistent in the UK hospitality industry. Task 13: Analyse the Structure and Process, Which Determines the Responsibilities and Control with a Registered Company After the completion of the company registration, the legal person needs to undergo certain procedures that determine its responsibility towards the society. The company name along with the address frames a vital part at this stage, as all the official dealings and the transactions take place in the registered address under the registered company name. Furthermore, the registered company needs to appoint directors for ensuring proper functioning of the operational procedures of the company. In this respect, it can be further noted that it is the responsibility of the company’s director to monitor as well as plan strategies effectively, for the development and the success of the company amidst the society. Furthermore, it has also been determined that company directors further attempt to select the stakeholders of the company for its normal undertakings. Besides, the Articles of Association is formed to have an idea about the general rules to be followed for running the business. The registered company hereby requires following the aforementioned structure and the procedure for effectively performing its responsibilities (Crown Copyright, n.d.). References Andriotis, K., 2004. European Union Influence over Tourism Employment. Tourism. An International Interdisciplinary Journal, Vol. 52, Iss. 3, pp. 277-284. Crown copyright, 2013. 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Office for National Statistics, pp. 1-21. Warner Leisure Hotels, No Date. Warner Leisure Hotels - The Company. Home. [Online]. Available at: http://www.warnerleisurehotels.co.uk/warner-breaks-holidays/the-company.aspx [Accessed April 09, 2014]. World Travel & Tourism Council, 2012. Tourism in the UK Contributes More to GDP than Automotive Manufacturing. The Authority on World Travel & Tourism. Read More