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External Factors And Affects AROUND THE Hotel Industry Tourism Essay

A business does not function in a vacuum. It has to act and respond to what happens outside the manufacturer and office surfaces. These factors that happen outside the business are known as external factors or affects. These will have an impact on the main inner functions of the business enterprise and perhaps the goals of the business and its own strategies.

Main Factors

The main factor that impacts most business is the degree of competition - how fiercely other businesses contend with the merchandise that another business makes.

The other factors that make a difference the business are:

Social - how consumers, households and communities behave and their beliefs. For example, changes in frame of mind towards health, or a greater number of pensioners in a society.

Legal - the way in which legislation in contemporary society affects the business enterprise. E. g. changes in job laws and regulations on working hours.

Economic - how the economy affects an enterprise in terms of taxation, federal spending, general demand, interest levels, exchange rates and Western european and global economic factors.

Political - how changes in federal policy might have an effect on the business enterprise e. g. a choice to subsidies building new residences within an area could be good for an area brick works.

Technological - the way the rapid tempo of change in creation procedures and product innovation affect an enterprise.

Ethical - what's regarded as morally right or incorrect for a small business to do. For example should it operate with countries which have a poor record on human being rights.


Page No

Task 1- Quest, Objectives and Tasks of an Organisation

1a) Mission, Ideals and key aims of the hotel group 1

And passions of the stakeholders

1b). stakeholder's aims and extent to which 2

The hotel achieves these objectives

1c). key obligations of the hotel group and the strategies 2

Employed for obtaining them

Task 2 - Economic, Social and Global Environment (LO2)

2. A) the fundamental features of planned and mixed financial 4

Systems n impact on the procedures of the hotel group

2. B) sociable welfare policy and industrial coverage measures in the UK 5

2. c) Impact of two macroeconomic plan measures in the united kingdom 6

And the united states since the year 2011 on the hotel group

Task 3 -Behaviour of Organisations and the Market Environment

3. A) shortcomings of two market models highly relevant to the hotel group 7

And show that they make a difference the success of the hotel.

3b) factors of resource and demand - income, price, weather, and substitutes impact 9

On the activities of the hotel group

3c) behavior and competitive strategies utilized by organisations in the UK 10

And the rationale for regulating the behaviour strategies

Task 4 - International Trade and the European Dimension

4a) the pros and drawbacks of trade between your UK and other countries 11

4b) the impact of two European Union insurance policies on UK organisations and 12

The hotel group

4c) Implications of the UK signing up for the European monetary 13

And monetary union (EMU) to the united kingdom economy and to organisation


Task 1- Mission, Objectives and Obligations of an Organisation

1a) identify the Objective, Prices and key targets of the hotel group and show how they reflect the hobbies of the stakeholders

A Objective is the initial purpose that sets one hotel or motel company apart from others. In addition, the mission declaration offers meanings and directions to hotel plans. In fact, when confronted with any issue, misunderstanding, or proper decision to be studied, managers always, ensure that their decisions match the objective statement. Furthermore, the mission declaration shall be standard and extensive. The mission statement shall reflect the passions of the agents interacting in the hotel group.

Guest: Guest(s) symbolize one of the most crucial realtors in the hotel industry. For no guests mean is not a accommodation sector.

Employee: A hotel without employees' means simply that guests would not be welcomed, listed, helped for whatsoever specific they needs have. Employees are a primordial agent in the hotel industry

Management & Owners: A hotel without managers resembles to a military without generals. Additionally, to truly have a hotel, shareholders shall poor some amount of money to make it, refurnish it, and operate it.

Therefore, the objective statement says how it is going to satisfy all the above explained agents in order that they continue acting in the hotel industry. (Keller, 2005)

Key Objectives

Managers shall, bearing in mind the company's objective statement, come up with company's global objectives,

Which are :

Specific & numerical



If goals are general and non-quantifiable, then, it would be unfeasible by the end of a certain time period to see whether company actual results match with the organized objectives or not. (Grimble, 1997)

1b). Identify three sets of stakeholder's goals and evaluate the extent to which the hotel achieves these objectives

Property Owners

They interact with property also to find innovative alternatives that satisfy their monetary, environmental and interpersonal objectives.


They recognize the importance of conversing information about their business and its performance to employees. Because CR issues are central to your company values these are a visible feature of global management conferences, casual briefings, in-house magazines and our intranets. (Hahnel, 2001)

In January 2011 we held a Green Day at our Atlanta Office buildings to raise awareness of IHG's approach to CR. During the coming year we will work with fellow workers to ensure that people are following acoustics guidelines for Green Meetings and Green Training materials. We will also set up an ardent section on CR in our Market leaders Lounge, a exclusive community of IHG leaders that provides time-effective tools, tips and articles that reinforce our strategy and help managers improve their control. This online tool allows users to hook up with and share guidelines with peers and senior IHG leaders around the world.


Feedback from suppliers helps us to raised know how we perform against our peers and gain a clearer picture of our own risks.

Wherever possible we encourage our hotels to source goods and services locally. Furthermore to IHG supporting local suppliers, we also need to promote liable business routines by those same suppliers. One area we are working on with suppliers is procurement - find out more in our Resource Chain section. (Myers, 2004)

1c). Explain three key responsibilities of the hotel group and the strategies employed for reaching them.

Hotel Manager

A hotel manager who is responsible for the day-to-day management of a hotel and its staff, They have commercial accountability for budgeting and financial management, planning, organising and directing all hotel services, including front-of-house (reception, concierge, and reservations), food and beverage functions and housekeeping. In greater hotels, managers often have a specific responsibility (visitor services, accounting, and marketing) and constitute an over-all management team. While going for a strategic overview and planning ahead to maximise earnings, the manager must pay attention to the details, arranging the example for personnel to deliver a typical of service and demonstration that meets guests' needs and targets. Business and people management are equally important elements. (Keller, 2005)

The director of a big hotel may have less make contact with guests but will have regular conferences with heads of division to coordinate and screen the progress of business strategies. In a very smaller establishment, the director is much more involved in the hands-on day-to-day running of the hotel, which might include carrying out reception responsibilities or serving dishes if the need arises.

Sales coordinator

Often seen as a dynamic and social working environment, hotels offer an attractive career path for many individuals. For those enthusiastic about the business side of hotels, a job in sales may be appropriate vocation to them. Hotel group sales coordinators are generally the link between the guests and the hotel company. Their assignments involve a mixture of customer support, team management and brand building for his or her hotel group.

Group sales planner has many duties. Among them is the prep of correspondence such as customer understanding letters, assisting to facilitate marketing promotions such as half-price rooms and scheduling staff rotas to make certain the sales section is operating sufficiently. Other duties include ensuring that the sales force meets its targets, liaising with specific customers and teams for detailed feedback on the hotel's facilities and analyzing sales figures to offer an accurate survey for the sales director.

Hotel marketing manager

A hotel marketing manager works with the hotel's advertising and sales professionals to market the hotel's services and facilities. Lower-level professionals, like market research managers, work together with hotel marketing managers to come up with ideas for creating new customers such as offering hotel bargains and incentives like free pleasant refreshments, a approving massage at the hotel or complimentary use of any business middle. Marketing professionals and analysts learn what travelers want and calculate the cost of including those services. (Hahnel, 2001)

Task 2 - Economic, Sociable and Global Environment

2. A) Discuss the fundamental features of prepared and mixed financial systems and describe how each system can effect on the functions of the hotel group. Use examples of the hotel activities to aid your answer.

Planned Economy:

A planned overall economy is an financial system in which the government or staff' councils control the overall economy. In such economies, the state or government controls all major areas of the market and make a decision all decisions about their use and about the syndication of income, much like a communist state. The planners decide what should be produced and immediate enterprises to produce those goods. Organized economies are as opposed to unplanned economies, like a market market, where production, distribution, prices, and investment decisions are created by the private owners of the factors of development based upon their own and their customers' pursuits rather than upon furthering some overarching macroeconomic plan. (Anthony, 2007)

Mixed Economy:

A mixed economy is an monetary system that has aspects of several economic system. This is typically means an economy that contains both privately-owned and state-owned businesses or that combines components of capitalism and socialism, or a variety of market overall economy and planned current economic climate. (Myers, 2004)

Impact on planned and blended economy

The centrally organized economy functions under the rules whereby the means of production, like the hotels, are considered to be had by the public and all varieties of financial activity are controlled by the federal government. Which means that the central planning specialists are in charge of assigning creation goals of the travel and leisure industry as well as the allocation of factors of development. Within such a system, the proportion of total outcome utilized as investment instead of private consumption, alongside the circulation of income and the number of travel and leisure activities produced, becomes a problem of social control rather than market causes. Therefore, in centrally prepared economies the decision to produce particular levels of output of travel and leisure products is a interpersonal and political somewhat than an financial decision. The merged economy is helpful in increasing national production in the country. Both general public and private sector work hard to effect a result of more production. The trouble created by free organization and too much general population control are fixed through mixed market. It provides flexibility of enterprise ownership profit getting as well as cultural welfare and political freedom. However Merged economy is is not helpful in obtaining ideal use of national resources. The combined economy have problems with the downsides of both the capitalism and the socialism. Combined economy rarely achieved improvement. It is suffering from continues backwardness. (Alec, 1997)

2. B) Identify and describe two social welfare coverage and industrial coverage measures in the UK that impact on the activities of the hotel and similar organisations

Social Policy means the study of cultural services and the welfare express. Social Policy and Administration is an academic subject worried about the analysis of cultural services and the welfare point out. It developed in the early area of the 20th century as a complement to communal work studies, targeted at people who be professionally mixed up in supervision of welfare. Throughout the last forty years, the range and breadth of the topic has developed. The main areas relate to

policy and administrative practice in communal services, including health supervision, communal security, education, job services, community care and real estate management;

social problems, including crime, disability, unemployment, mental health, learning impairment, and old age;

issues relating to social downside, including contest, gender and poverty; and

the range of collective social reactions to these conditions.

Social Insurance policy is a subject area, not a discipline it borrows from other cultural science disciplines for develop research in the area. The contributing disciplines include sociology, social work, psychology, economics, political technology, management, history, beliefs and legislations. (Nyheim, 2004)

'Industrial plan' means in fact an activist strategy by the state of hawaii towards support for and development of the market. In the united kingdom, state activism in this area was discredited in the 1970s because extensive status financial support for the defunct UK car industry failed at

2. c) Evaluate the impact of two macroeconomic coverage measures in the united kingdom and the US since the yr 2011 on the hotel group

The main regulations of economical management that are impact on the hotel group in UK.

Fiscal Policy

Fiscal policy includes the utilization of federal government spending, taxation and borrowing to effect both the structure of economic activity as well as the level and development of aggregate demand, output and occupation.

Monetary Policy

Monetary policy consists of the utilization of interest levels to control the level and rate of growth of aggregate demand throughout the market.

Here are some dissimilarities in the financial effects of economic and fiscal insurance plan, on the structure of output, the potency of the two types of insurance plan in meeting the government's macroeconomic objectives, and also the time lags included for fiscal and financial policy changes to take result. We will consider each one of these subsequently:

Effects of Coverage on the Composition of National Outcome from the hotels

Monetary insurance plan is often viewed as something of your blunt policy instrument - affecting all sectors of the overall economy although in several ways and with a changing impact.

In comparison, fiscal coverage can be targeted to affect certain organizations (e. g. rises in means-tested benefits for low income homes, reductions in the rate of corporation tax for small-medium sized businesses, investment allowances for businesses using regions)

Consider as an example the effects of using either financial or fiscal insurance plan to achieve specific increase in national income because real GDP lies below potential GDP (i. e. there's a negative output gap) (Buchanan, 1996)

Task 3 -Behaviour of Organisations and the Market Environment

3. A) Explain the shortcomings of two market models highly relevant to the hotel group and show that they make a difference the success of the hotel.

SWOT Evaluation of Hilton Hotels

All major hotel firms, is continuing to recuperate from the events of Sept 11th. This tragic individuals event also provided a financially devastating blow to the travel industry all together and the hotel industry specifically. To be able to fully restore and flourish in the returning years, HHC must assess its overall all talents and weaknesses as it moves frontward through the new millennium. The next SWOT Evaluation sheds some light on a few of the pitfalls and opportunities that await the Hilton Hotels Company. (Porter, 2001)


Hilton Hotel Organization (HHC) is a more developed organization and industry head in the hotel, hospitality and game playing industry

HHC is well diversified over the industry with hotels in the high end, business and mid-priced classes in their product mix

HHC also possesses stable integration features such as buying the companies that manufacture its furniture and has committed to online reservation travel enterprises


HHC may be two narrowly targeted making it susceptible to a downturn in the global economy and other world-wide catastrophes which could limit global travel such as the bird-flu and a significant terrorist strike

HHC may be vulnerable to workers' strikes and crack down on undocumented staff in the U. S. The majority of its holdings are in the U. S.


HHC should offer a range of distinctive and specialized services to the top quality friends and high rollers such as

Wedding planning & hosting

Spas that focus on personal services

Personal trainers

HHC should look to expand into or get a cruise line

A cruise ship is little more than a hotel that floats this might essentially match what it currently does using its leased properties

Gaming activities would get away from legislation, etc.

Take good thing about emerging market segments, especially with business school and mid-priced markets


HHC must be cautious not overextend its work to combine entertainment and gaming

Also the expansion of credit and other area effects of game playing can gradually nibble away profits

September 11th was a significant blow to the hotel industry. A similar event could bring about another down change.

By studying national and regional industry tendencies, HHC can take good thing about opportunities that will allow growth while discovering threats which may affect profitability. Progress in the hotel and hospitality industry includes a continued concentrate on gaming, international growth and using all multimedia to market its products to customers. One recommended technique for Hilton is to highlight the value of family in every its hotels, including the gaming and gambling establishment locations. Las Vegas has spent thousands to attract individuals with the addition of children's destinations as well as the original casinos for the men and women. Most of the hotels have at least a tiny area dedicated to arcade games. However, some hotels have complex arcades, game areas, and child-care centers designed for those traveling with children (Hilton Hotels Company, 2007). Hilton must ensure these are right in the middle of this demographic of parents going with children. As the focus can be on the high dollars that are tossed around in the casinos by the parents, it will be critical that the hotel have the facilities available that will get parents with children to remain at the property. Since there is a greater demand and holiday time is becoming one of the few times that family members have the ability to spend quality time mutually, Hilton must capitalize upon this market section. (Buchanan, 1996)

Market Segmentation

Market Segmentation means wearing down the full total market into do it yourself comprised and relatively standardized subgroups of customers, each having its own special requirements and characteristics. This allows the company to change its end result, advertising announcements and promotional methods to match the needs of particular segments. Accurate segmentation allows the company to pinpoint offering opportunities and to tailors it's marketing activities to fulfill on consumer needs. Through the process of market segmentation, there are specific variables to identify customer teams, such as needs, income geographical, location, buying practices and other characteristics. (Hahnel, 2001)

3b) Make clear how these factors of supply and demand - income, price, weather, substitutes impact on the activities of the hotel group.

When negotiating a hotel contract for conference or convention, some factors are inspired.

First, factors that affect room blocks and room rates derive from supply and demand. So, if the hotel is within their optimum season, they have more clients asking for the same space and can make who gets the space and can place their price.

Most hotels have a preferred structure for arrivals and departures. When your pattern fits theirs, they might be willing to make a deal. However, if the design differs, you may have to pay higher rates.

Be well prepared, check with the Convention Bureau and ask what the normal occupancies are for various a few months of the entire year. That way you should have an idea of how much the hotel needs your business. When you can hold your assembly in per month that has less occupancy, you have more room to discuss.

Also, do not falter to ask for special items in the contract. The more the hotel needs your business, the greater they are prepared to quit or enhance the contract to be able to really get your personal. (Carl, 1997)

It may be easy to get that suite you wanted on a complimentary basis or at a particular rate. In the event the hotel is going to have a low occupancy and would not be advertising that suite to begin with, they have little or nothing to loose by giving it for you in your agreement.

So, what factors are participating that influence costing when negotiating a sales deal for sleeping rooms, getting together with space and food occasions?" They can be option of rooms, room habits, your ability to be adaptable and especially you being conscious of the actual hotel is looking for.

Therefore, do your homework before meeting with your hotel of choice and you will be better prepared to negotiate successfully.

3c) Clarify three behaviour and competitive strategies utilized by organisations in the UK and the explanation for regulating the behavior strategies. Use relevant cases to support your answer.

Organizations operate within a competitive industrial environment. Studying its competitiveness help to identify opportunities for and dangers to the organization from its industrial environment, SWOT evaluation is a organized analysis of the factors and the strategy that displays the best match between them.

Considering the as an example, regards to the primary competence of McDonalds, one of the largest food string companies in the world. Let us first start with the talents and the positive aspects which determine the performance of the company. Strength is a unique competence that gives the company a comparative advantages on the market place. For example money, image, market management and buyer company relations etc

The greatest durability was creating a graphic in the brains of folks and introducing them to the junk food culture. Delivery acceleration, customer care and cleanliness will be the core strengths which these stores expanded. They created a corporate and business sign and their advertisement campaigns were highly successful in creating the brand image and logo in the minds of the thousands. Two main opponents generally recognized with McDonalds will be the Burger King and the KFC. McDonalds online marketing strategy can be involved with the internal resources, exterior environment and its own basic competencies along using its talk about holders.

McDonald's product value is also its best strengths. Customers know very well what to anticipate when they walk into a McDonalds store. It gives great emphasis to human resources by satisfying both customer and the employees. Next is the creativity aspect wherein new products line up to meet up with the new tendencies and likes of individuals. Its diversity into other new business ventures can also be considered as its strengths.

One major menace to any brand is its romantic relationship between the management and the franchise dealers. Organization durability is the back bone of any concern and when that begins shaking the complete system will collapse. But slowing McDonald is dealing with each one of these weaknesses as its brand professionals can easily communicate, compare and improve their services through the latest technical innovations wherein they may use the internet to encourage, compare and improve after other centers shows.

The overall research of all external and inner strengths and weaknesses on this company should be linked in order to draft a lasting plan for the companies' further improvement. For just about any improvement or growth the inner resources must be easily available. And thus studying this aspect can lead to a modified strategy to suit its eyesight. Remember the available resources the planner should think globally. Hence utilizing all the center competencies the company can definitely preserve in the competitive market.

Task 4 - International Trade and the Western european Dimension

4a) Discuss the professionals and downsides of trade between the UK and other countries. Use the activities of the hotel group to support your answer


According to the U. S. State Department, america had implemented nine free trade agreements with a total of 14 countries and had several others awaiting final enactment by September 2009. The company reports that since the implementation of these financial pacts U. S. exports have increased exponentially and imports have become noticeably. Therefore, the State Department makes the claim that free trade supports monetary development in poor countries as well as in america.


In November 2003 the Economic Insurance policy Institute issued a written report that significantly questions the benefits associated with free trade. According to the document, the climb in the U. S. trade deficit with its NAFTA trading partners, Canada and Mexico, caused the displacement of high-wage positions in U. S. -centered manufacturing industries. Additionally, the report expresses that workers in all three member countries have been damage by free trade, numerous Mexicans being reduced to subsistence-level work while Canadians witness a decrease in important open public spending in education, healthcare and other such services. The institute says that NAFTA recommendations tilt the economic situation in favor of investors while offering no environmental or worker-safety coverage.


While just about everybody agrees that international trade will continue, the question over free-trade economics demonstrates the lifetime of two radically disparate viewpoints; those of the firms and investors which have benefited from the adaptation of free-trade contracts and those of blue-collar workers, who look like losing ground economically. Plan negotiators might do well to consider the well- being of all concerned by implementing guidelines that assure a living wage to all or any as well as environmental and worker-safety specifications. (Carl, 1997)

4b) critically analyse the impact of two EU insurance policies on UK organisations and the hotel group, if any.

UK hoteliers are being quietly positive about the new coalition government's tourism plan priorities for the country's hotel industry.

Industry leaders are hoping for a new period of firm control reinforced by clear travel and leisure policy. Many are hopeful that the new administration will place higher emphasis on tourism plan, support new investment and provide better co-ordination of Whitehall regulations over the industry.

With clear procedures on regulation, taxes policies and interest rates, the new federal is able to provide better steadiness for hotel programmers, owners and operators, despite cuts in public spending. (Easterly, 2001)

At this vital time, the UK hotel industry needs strong, unified representation to federal government. The strongest company is most probably the British isles Hospitality Connection (BHA) who has already raised five tips on behalf of the industry, as follows:

Fewer regulations and the ones that are launched should be more effectively coasted and evaluated for their effect on small businesses.

An knowing that the industry is a potential job originator and is the main economic driver of many regions in the country - even including London. Yet, in an industry largely composed of small businesses, past fiscal and regulatory steps have inhibited private investment to a great magnitude.

Greater encouragement by the government for businesses to get, through the benefits of appropriate taxes breaks and capital allowances (eg: Hotel Building Allowance). Only through more private investment will the industry be able to meet rising international competition.

A government team (presumably the DCMS) which is better and more in a position to signify the industry with other federal government departments and throughout Whitehall.

Too many local, regional and national tourism bodies are preventing for limited amounts of funding to promote Britain internationally, nationally and locally. Only some Regional Development Agencies have seriously backed their travel and leisure industry while lots of regional travel and leisure boards have been disbanded. A far more coherent approach to the country's travel and leisure infrastructure is required.

4c) Measure the implications of the united kingdom signing up for the European economical and monetary union (EMU) to the united kingdom economy and also to organisations operating in the united kingdom. Use relevant instances to support your answer

The Economic and Monetary Union or EMU can be an umbrella term for the band of policies targeted at converging the economies of participants of europe in three periods so as to allow them to look at a single currency, . As such, it is basically synonymous with the Eurozone.

All member expresses of the European Union are anticipated to participate in the EMU. The Copenhagen conditions are the current set of conditions of entrance for states attempting to join the European union. It contains the needs that require to be fulfilled and enough time platform within which this must be achieved in order for a country to join the monetary union. A significant element of this is the European Exchange Rate Mechanism ("ERM II"), where candidate currencies illustrate financial convergence by retaining limited deviation from other target rate resistant to the euro. (Easterly, 2001)

All member state governments, except Denmark and the United Kingdom, have determined themselves by treaty to join EMU. Seventeen member state governments of the European Union, including, most recently, Estonia, have entered the third level and have implemented the euro as their currency. Denmark, Latvia and Lithuania will be the current individuals in the exchange rate device. Of this pre-2004 members, the United Kingdom and Sweden havent signed up with ERM II and Denmark remains in ERM without proceeding to the third level. The five left over (post-2004) claims have yet to attain sufficient convergence to participate. These ten European union members continue to use their own currencies.

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