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Unit 19 External Business Environment - level 5 in business

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Unit Name: Unit 19 External Business Environment

Level: level 5 in business

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Task 1

(a) Dscuss the market structure as it exists in England and identify its impact on the hospitality industry at both national and local levels.

Answer: Perfect, monopolistic, and oligopolistic competition coexist in England's market structure, with differing levels of market concentration across various industries. Monopolistic rivalry is prevalent in the hotel sector, as numerous businesses provide unique goods and services. Large chain hotels and restaurants dominate the hospitality sector nationally, controlling a sizable portion of the market and influencing consumer tastes. On the other hand, small and medium-sized enterprises (SMEs) and independent companies thrive locally, offering unique experiences and stimulating local economies. The way the market is structured has a complicated impact on the hospitality industry. While national chains encourage efficiency and uniformity, small and medium-sized enterprises (SMEs) encourage creativity, diversity, and community participation. In addition, the growth of online review and booking platforms has raised price transparency and competitiveness, which is good for customers but puts more pressure on companies to uphold their reputation and quality. In general, the market structure of the hospitality sector in England strikes a compromise between the advantages of competition and the requirement for distinctiveness and regional identity.

(b) Analysis of the effect that the initiative is likely to have on the development of hospitality related businesses in the area.

(c) Discuss the variety of ways that income/ wealth / the demand for labour/ the types of jobs available might affect the development of the hospitality sector in Hoxton.

(d) Make an assessment of the ways in which the change, in this country from a heavy/ manufacturing industry base to a service industry base has influenced employment patterns in the hospitality industry in the Docklands area of London.

(e) Analyse the different types of people likely to be employed in the hospitality and catering industry in relation to labour turnover / levels of pay / demographic background in:

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Task 2

(a) Discuss the structure and operation of local government as it is likely to influence the development of hospitality business at local level in England.

Answer: The structure and operation of local government in England, comprising county and district councils, unitary authorities, and metropolitan boroughs, significantly influences the development of hospitality businesses at the local level. Local authorities are responsible for delivering various services, including planning, licensing, and environmental health, which directly impact hospitality establishments. For instance, councils determine planning permissions, alcohol licenses, and food safety standards, thereby affecting the operation and expansion of hotels, restaurants, and bars. Moreover, local government initiatives, such as tourism strategies and town center regeneration projects, can enhance the business environment and attract visitors, benefiting hospitality businesses. Additionally, local authorities collect business rates, a significant revenue stream, and provide support services, like business advice and training, to local entrepreneurs. Effective collaboration between local government and hospitality businesses is crucial, as it can lead to the creation of vibrant local economies, improved customer experiences, and increased investment in the sector.

(b) Evaluate the role and influence of the EU as it affects the hospitality industry in England:

(c) Make an assessment of the role and political influence of pressure groups by focusing on:

(d) Legislation & regulations strongly influence the hospitality industry

(e) Evaluate the changes in the legislative process in England as they have affected the hospitality industry at both national and local level.

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Task 3

(a) Assess the different characteristics of the three types of hospitality business listed below:

(b) Discuss the legal requirements involved first of all in setting up a registered company to build and run a 500 bedroom hotel and then in dissolving the same company at a later date.

Answer:
Setting up a registered company to build and run a 500-bedroom hotel requires compliance with various legal requirements, including company registration with Companies House, preparation of Memorandum and Articles of Association, issuance of share capital and appointment of shareholders, directors, and a registered office. Additionally, necessary business licenses and permits, such as planning permission and environmental permits, must be obtained. Employment laws, including contracts, health and safety, and data protection, must also be adhered to. Conversely, dissolving the company involves passing a winding-up resolution, appointing liquidators, notifying relevant parties, disposing of assets to settle debts, and meeting tax obligations. Employee redundancies must be handled fairly, and final accounts must be prepared and filed with Companies House. Ultimately, the company can be struck off the register, marking its official dissolution. Throughout both processes, professional advice from solicitors, accountants, and experts is crucial to ensure compliance with all legal requirements, avoiding potential pitfalls and ensuring a smooth transition.

(c) Analysis of the structure and internal processes which would determine responsibility and control in the hotel.

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