Unit 19 External Business Environment Assignment


Unit 19 External Business Environment Assignment

Over the past few years, Europe has seen a dominance in the hospitality industry. The hospitality sectors have grown, particularly in the UK, in response to the external business environment (Becker et al., 2010). Hotels, amusement, and lodging have all made significant economic contributions. Numerous firms have prospered as a result of the hospitality sector’s long-lasting impact. The business sector has been significantly impacted by social and economic changes in the United Kingdom. There are rules and legislation in place to control how the hospitality industry is run. The managers are then need to determine what the clients want and how they might be customised to match their needs. 

Task 2

2.1 Structure, operations and influence of local government on a major UK hotel group

The development of the cultural, economic, environmental, and social well-being of local communities is one of the duties of local governments, thus their involvement in the travel and tourist sector must be related to that. Local governments have the authority to design their own tourism strategies that specify their aims and how they intend to contribute to the community’s well-being (Mathias, 2012). The strategy must outline the community’s outcomes from the growth of tourism, how those outcomes were decided, and the role played by the local government. Plans for local government tourism contribute to those for regional and national growth. The founder and shareholders of the UK’s Horsley Park Hotel are responsible for making operational choices. By contributing to the costs associated with promoting the hotel worldwide, local government helps to promote the cultural and social welfare of the hotel community. In order for the hotel to reach its overall aims and objectives, it is essential. It safeguards the business against unfair competition, which is likely to endanger its expansion and advancement in the hospitality and tourism sector. The hotel’s security is guaranteed by the local government since it makes sure that everyone who enters the area and stays there has been screened for any security threats.

2.2 Role and impact of EU on business and service industries

The EU has an impact on industries through its single market policy, which permits free movement of labour, goods, services, and capital within and outside the markets of the European Union. The EU and tourism industries are highly interdependent on one another, with significant levels of spending and travel going both ways. These are the four guidelines:

Free flow of goods: With the help of this policy, the European Union will function as a single market with unrestricted trade. The European Union became a single country with internal borders in 1993 once the restriction on the movement of goods inside the internal market was lifted. The elimination of customs, tariffs, and other external regulations will result in their removal. This will encourage intracommunity commerce, which increases imports and exports both within and outside the European Union member states. 

One of the tenets of the European Union is the freedom of movement of individuals across national boundaries. This policy ensures that every person of the EU has the freedom to travel, reside, and work in another member state. However, there are still some exceptions. The issue of immigration control is another one that needs to be resolved. The UK is unlikely to demand visas from current EU members. This supports the tourism sector, which generates significant employment and expands the economy. Services should be allowed to move freely between different providers, as there will likely always be a need for knowledgeable personnel in the tourism industry due to high turnover rates and expected growth (Johnson et al., 2014). Due to the high demand for workers, the majority of businesses claim that their staff lacks essential skills. It is realistic to infer that in the event the EU secedes from its member states, there would be a staffing shortage, which will drive up labour prices for businesses and lower the standard of services offered to consumers. This regulation applies to governmental institutions and professional organisations that are permitted to offer cross-border services.

Removing all limitations on the movement of capital both inside the EU and its member countries as well as with other countries is guaranteed by this policy, with a few exceptions. Additionally, it describes the many forms of capital included in free flow movements.

Unit 19 External Business Environment Assignment

Regulations: The law produced by the EU is intended to support the main objective of the union. As a result, the tourism sector is impacted by EU legislation. The outcome of discussions with the EU may have a secondary impact on business travel. There is a chance of a decrease in business travel associated with these corporations moving their headquarters to an EU state if the outcome doesn’t mesh with their business models.

2.3 Role of pressure groups in the hospitality industry

Pressure groups are organisations created to promote and sway change. They might carry out campaigns and finance political party activities to achieve this. They share the desire to alter something about society. They accomplish this by applying pressure to parliamentarians. Members of pressure groups think that through cooperating, desired changes would be attained (Kent, 2014). They raise awareness using social media and by sending letters to newspapers and magazines as part of their campaign. Other means through which pressure organisations can accomplish their goals include;

Meetings and Magazines: Pressure groups have frequent meetings for their members to keep them informed of events and what needs to be done. Members receive national magazines in the mail.

Concerts and music festivals enable participants and supporters to mingle and have a nice time (Lockwood and Walton, 2013). Additionally, it demonstrates that people are capable of coexisting peacefully and enjoying themselves. Speeches might be given at the event to raise awareness and outline a course of action.

Arts: Pressure groups may utilise a variety of media, including films, songs, poems, photography, and sketches, to spread messages and raise awareness. They can be employed to advance a cause as well.

By the time Scotland was unified with Wales and England, it was already independent and had its own legal system. This meant that although preserving its legal systems and laws, it now had a legislative that was comparable to that of Wales and England. Acts of parliament in Scotland were used to enact new laws, but they did not modify or replace Scots law.

Scottish law recognised marriages that did not involve religious rites or ceremonies. Up until 1938, mutual consent and consummation were prerequisites. In Scotland, the legal drinking age is 16, whereas in England it is 18 years old. Parents’ approval was not necessary for the marriage to be recognised.

Unit 19 External Business Environment Assignment

2.5 Evaluation of the UK and EU legislative process as it affects a major UK hotel group’s business and services at both local and national level

The UK has a significant role in how it influences the regular operation of the hospitality industry, particularly motels, mostly through the taxation procedures, laws, and regulations it adheres to, as well as the government providing subsidies to enterprises. Employees should be protected by a working hour limit that stops them from being overworked, according to regulations in the EU and the UK (Lovelock, 1999). The goal of this policy is to spend as little time on breaks and as much time working. The business has organised a policy change to comply with the rules as a result of the policies. The National Minimum Wage Act mandates that employees between the ages of 18 and 21 receive hourly pay.

Task 3

3.1 Different types and characteristics of business that operate within the business and services with a focus on the hospitality sector.

There are three primary segments in the hotel service industry that it focuses on and which have made it successful. One of the main reasons people stay at hotels is to eat, whether it is at one of the hotel’s upscale restaurants or one of its fast food joints. When tourists visit a certain location, the hospitality sector there focuses primarily on accommodating them by giving them a place to stay during their time there. This is the second category of accommodations (Nieves and Segarra-Cipres, 2015). The travel and tourism sectors of the hospitality industry also provide services to visitors, particularly those from other countries, where they are even able to go above and beyond and provide a guide who is knowledgeable about the area and will be able to explain to the tourist the rich cultural and heritage of a place. As part of the hospitality, the travel and hospitality industries go above and above to ensure that tourists have transportation to all of their destinations, including any detours from the airport. The longevity of the hospitality sector means that it cannot be put on hold and that it must be used properly or else it will all be wasted. It is difficult to achieve this since they cannot be regulated and cannot be scheduled to occur at the same time. Services provided in the hospitality business can be aggregated in the sense that they can be gathered and packaged as one service consisting of different services. The production and consumption of the services given also occur simultaneously, thus customers must travel great distances to consume the product. The following list includes the various sorts of firms that are active in the hospitality industry: Business with a single owner who both owns and runs the company is known as a sole trader. The lone proprietor invests the capital into the business and either keeps all of the profits or takes them out as cash withdrawals. Additional capital is also introduced by the proprietor whether by using his own funds or obtaining loans and investing as debt funds. Partnership: In this type of business, a group of people come together to form a business using a document called as a partnership deed. The terms and conditions of their partnership are set forth in this deed. The partners divide the profits in one of two ways: equally or according to predetermined ratios. To develop this type of firm, two people are required, and each partner must spend funds.

Private company: In this type of business, a group of people form a company, which is then given a separate legal personality from its members.

Unit 19 External Business Environment Assignment

The Articles of Association, the Form IN01, and the Memorandum of Association must be sent to the registrar of companies along with the registration fee during the formation of an organisation as per the Companies Act of 2006, which can take up to 5 working days to process. However, some people may choose to handle it electronically, using software connected to the companies’ own e-filing systems and creating an account. The entire company registration process can be completed online. This is the list of people whose names are included in the Memorandum of Association that establishes the organisation. All of the members of the firm should be in agreement and support the idea that the company should be disbanded during the dissolution process (Pisano, 2015). If there is disagreement, the stakeholders must cast ballots, and the outcome will determine whether the organisation should be dissolved or not. In order to prevent penalties and disobeying the law, the business should notify the tax collection authorities after reaching a consensus because they have a duty to settle tax returns. The company must also notify its creditors of its impending dissolution.

3.3 The structure and processes which determine the responsibilities and control within a registered company.

There is a hierarchy of management within the organisation. The manager, who is in control of the business, leads the path for how employees should fulfil the expectations of their clients. The management at the organisation collaborate with one another to increase accuracy while also increasing efficiency. The next in line is the supervisor, and it is their responsibility to make sure that the procedures are followed and that the services being provided have value. Then, operators are the ones who are actively involved in ensuring that all business procedures are completed successfully (Mathias, 2012).


The activities of protest groups have continued to grow in the past few years. As a result, significant progress has been made in the effort to transform societies and communities. People are more conscious of their right to express their thoughts and receive feedback from their intended audience. The European Union has a significant negative influence on the hotel sector as a result of member states breaking apart. Laws in Scotland and England differ significantly, which leads to conflicts of interest. The legislative process not only affects but also plays a significant role in the hotel sector. Laws protect customers and employees in the hotel sector to prevent exploitation. Although these laws can cause losses for the sector, integrity should ultimately be protected. It follows logically that business organisations in the UK must examine the aforementioned external business influences in order to develop strategies that will make it easier for them to achieve the targets they have set.

Unit 19 External Business Environment Assignment


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Nieves, J. and Segarra-Cipres, M. (2015), Management innovation in the hotel industry, Tourism and Management, Vol. 46, pp.51-58

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Pisano, G.P. (2015), You Need an Innovation Strategy, Harvard Business Review,Retrieved from https://hbr.org/2016/07/you-need-an-innovation-strategy