Introduction about Business Environment
Business environment depict about the factors that causes significant impact on the working of the enterprise (Business environment, 2015). In order to operate in the competitive business scenario manager of the enterprise has to analyze the aspect that is prevailing in the environment. However, if organization will not perform it then in the given situation direct impact can be seen on the sales and profits of corporation in an effective way. For the given essay hotel Hilton is chosen. The given essay provides description regarding the various factors that affect the operation of the selected enterprises.
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1.1 Purpose to different organizations
The organization that operates in the business environment possesses varied types of purpose. In this respect, different forms of enterprise are identified. It consists of following such as public, private, cooperative, and partnership as well as charitable. Public limited company has the main purpose to work towards the benefit of society. These corporations do not comply with achieving high amount of profits related to the principle. However, private limited company main objective is to earn high amount of profits within the enterprise (Goal of private company, 2015). In order to fulfill the given aspect these corporations analyzes the needs and demands of their customers. After analyzing the factors goods and services are being produced by them. Hotel Hilton relies on the given category. Both private and public limited company possesses similar type of legal structure. In this regard, there are various types of documents are identified which is being prepared by both the identified forms of organization. It is inclusive of memorandum of association, article of association and submitting the form number 10 and 12 etc. In addition to this, partnership firms have the main objective to share the profit and loss of the enterprise (Kryzanowski, 2006). The given firm possesses following type of legal structure such as there must be minimum 2 partners or maximum it could be 20 and the profits must be shared between partners in their profit sharing ratio. Charitable firms have the main objective that is to fulfill the need and requirement of other firms or individual through donation. Their legal requirement states that corporation must obtain funds through valid or authenticated sources. Community firm has the main aim to work towards the benefit of community members or person who is living in the society.
1.2 Extent to which hotel meet the objectives of its stakeholders
The stakeholder of Hotel Hilton possesses varied type of objectives. However, in order to fulfill the same, organization play very crucial role. In this regard, Hilton group of stakeholders consists of following such as employees, suppliers, customers and government etc. Employees of the hotel Hilton expects that they should get a working environment which leads to their career growth. In order to comply with the given expectation, hotel organizes different type of training and development programs on the regular basis. In the similar way, supplier expects that they must get payment of their services within the specified time. Hotel fulfills their expectation in an effective manner (Oberholster, 2010). However, difficulties occur when hotel does not possess sufficient amount of funds due to continuous losses.
Customers believe that the enterprise must provide them with utmost quality of services. Hilton fulfills the given expectation by developing the skills of their workers. This is because; it is with the help of workers that only needs and demands of the buyers can be met in an effectual manner. Moreover, the government of UK expects those corporations that are functioning within their nation must comply with all the type of legal laws and regulations. The given objective is being met by Hilton by paying timely payment of taxes.
1.3 Explain the responsibility of hotel
Hotel Hilton has its responsibility towards the stakeholders. It has the responsibility to maintain the satisfaction of its customers and provide them with all the kind of information that is being occurring within the enterprise. Providing the healthy and cooperative work environment to the workers is regarded as another responsibility of hotel. Further, with this hotel also possess its responsibility towards supplier. In this regard, it has following responsibility such as framing an effective policy for supplier and strengthening the partnership relationship with the supplier (Comfort, Jones and Hillier, 2007). In order to fulfill the given responsibilities hotel Hilton has employed different type of strategies. For example, with an aim to maintain the satisfaction of its customers hotel organizes training and development related programs for its employees. With the help of these type of programs, improvement in the skills of workers can be carried out. As the result of it they will be able to direct their efforts in terms of delivering their effective services to the buyers. There are various persons involved in the formation of given strategy and these are of human resource manager of hotel and the trainer etc. In addition to this, maintaining the open environment of working is being regarded as another strategy that is being used by hotel with an aim to fulfill its responsibility towards employees (Yildirim and Philippatos, 2007). This type of environment provides opportunity to workers in terms of presenting their views in front of the management of the organization. Such type of environment is being maintained by following individual such as HR and operation manager of hotel. Organizing meeting with the supplier of hotel is being considered as another tactic with the help of which an effective relationship with them can be build up by hotel.
2.1 How economic system attempt to allocate resources effectively
The economic system attempt to allocate its resources effectively. In the context, three basic type of economic system identified and it is of planned economy, market economy and mixed economy. In the planned economy all the decision relating to what, when and how to produce the goods and services for nation is being taken by the government. In this type of economy resources are being allocated by the government through the centralized plan. Here all the decision regarding the allocation of resources is being taken by the central planning authority (Thampapillai, 2010). However, with an aim to allocate the scare resources of the nation such as land, labour and material, market economy takes assistance from the market forces. Here in the market economy, resource allocation is being identified through the demand of customers and the supply of producer etc. In the given type of economic system demand is being considered as one of the most influential factor. Further, mixed economy is another system. In the given economy decision with regard to the allocation of resources is being collectively taken by both private and public individuals. Here private sector allocates the resources through market forces whereas public sector prepare the centralized plan with an aim to allocate the scare resources of nation. The country like UK where hotel Hilton function its operation possess mixed economic system. In the given economic system, government takes decisions on following aspects such as road building and construction of hospitals etc. However, the decision regarding the production of goods and services is being taken by private individual (Kryzanowski, 2006).
2.2 Assessing the impact of fiscal and monetary policies on the activities of hotel Hilton
The impact of fiscal and monetary policies on the activities of hotel Hilton is being assessed. Fiscal policies determine the way through which government uses its money that is being generated by it through taxation. In addition to this, monetary policy assist nation in terms of controlling the supply of money in an effective manner. The given policy is relating to the rate of interest. Any kind of changes in the given policies causes significant impact on the activities of hotel Hilton. For example, if the government of UK has directed its efforts in terms of increasing the rate service taxation (Lihitkar, 2013). In order to deal out with the given circumstances hotel Hilton has to direct its efforts in terms of increasing the prices of its goods and services. However, if it will not being performed by it then in the given circumstances it became difficult for the organization with regard to mark their effective presence in the competitive business environment. In the similar way, if the monetary policy like rate of interest is being reduced by the government of nation. Then in this condition high amount of profits can be achieved by the organization. This is because, such type of circumstances will allow the organization in terms of selling its services to the customers at the affordable prices.
2.3 Impact of competition policies as well as regulatory mechanisms on the activities of hotel Hilton
The competition policies as well as regulatory mechanisms causes necessary impact on the activities of hotel Hilton. Competition policies has the main aim with regard to promote the competition within nation. In this regard, there are various competition policy of UK identified. It is of antitrust and cartels, state aid control and market liberalization etc (Buğra and Savaşkan, 2012). For example, the competition policy relating to the antitrust and cartels restricts the competition within nation. The given policy hinders company like hotel Hilton in terms of building their dominant position in the market in an effective way. Thus, it is through this way only competition policies causes significant impact on the work of corporation.
In the similar way, the activity of the hotel Hilton is also influenced through the varied regulatory mechanism prevailing within the country. For example, the regulatory mechanism relating to minimum wage rate causes necessary impact the HR related policies of the hotel. The given law depict about the specific amount of wage rate. If the given wage rate will not being followed by the enterprise then in this condition strict action can be taken by the government towards the corporation (Lee, Olson and Trimi, 2012). If such type of action will be taken then in this situation direct impact can be seen on the reputation of the hotel Hilton.
Applying appropriate method of government policy
The appropriate method of government policy such as Ofcom is being applied for the hotel Hilton. For example, Ofcom is the independent regulator and competition authority for the UK communication industry. It forms various types of communication related rules and regulations which Hilton has to follow. If not followed by it then strict action towards the enterprise can be taken by the government (Fernando, 2011).
3.1 Explaining how market structure helps in terms of determining the pricing and output related decision for the business
The market structure helps in terms of determining the pricing and output related decision for the business. In this respect, there different type of market structure identified such as perfect competition, oligopoly and monopoly etc. Perfect competition is the type of situation which possess large number of buyers as well as sellers. Corporation that functions in such type of structure faces huge amount of competition. Thus, an effective presence in the given market structure can be marked by Hilton by using the competitive pricing strategy. Further, with this oligopoly is being regarded as another market structure (Goyal and Goyal, 2013). This type of market possess very less amount of sellers and in the given market, decision which is being taken by one sellers causes significant influence on the activity of other seller. The decision relating to the pricing is being collectively taken by the competitors prevailing in the given industry. In addition to this, monopoly is another type of market structure. This type of structure possess single seller of goods and services. Here, prices are set by the organization that enjoy monopoly in market. Thus, it can be said that the market structure causes necessary impact on the pricing and output decision of the company (Biggs and Kelly, 2006).
Communicate appropriate market situation and suggest suitable market structure
The current market situation of hospitality industries prevailing in UK is being depicted. In this respect, it has been identified that there are various hospitality organization functioning in UK. It is because of the presence of this aspect, huge amount of competition is being seen in the given industry. In the given situation perfect competition related market situation seems more suitable. This is because, the given market structure will allow hotel Hilton in terms of selling its services at the competitive prices. As the result of it large number of customers can be attracted by the organization (Pryke and Smyth, 2012).
3.2 Illustrating the way in which market forces shapes the responses of hotel
The market forces helps in terms of shaping the organization responses. For example, the market forces like demand and supply of the product causes necessary impact activities of corporation. For instance, the demand of Hotel Hilton services has increased in United Kingdom. However, with an aim to meet the demand of the buyers organization does not possess sufficient amount of rooms and other related facilities. In order to deal out with the given situation, Hilton has to response in the following way. Here corporation has to direct its efforts in terms of increasing the capacity of the enterprise in an effective way. This is being done by it by constructing more rooms and other related facilities within hotel. However, if an equilibrium is not being established by the hotel between the demand and supply factor then in this situation profits of corporation will be affected in a negative way (Poynter, 2012).
3.3 How cultural and business environment shapes the behavior of hotel
The business as well as cultural environment shapes the behavior of hotel Hilton. The cultural factor showcases the value and belief of the particular nation. For example, manager of hotel Hilton has planned to expand its operation in the country like India. Indian people gives value to the traditional culture. In order to function the operation in the given country Hilton has to carry out changes in their design of its hotel. This is being done by it by constructing its hotel in a more traditional manner. However, if Hilton will not perform it then in this situation an effective presence in the Indian market cannot be marked by it. Thus, it can be said that the cultural environment shapes the behavior of hotel. In the similar way, the condition prevailing in the business environment assist in shaping the behavior of corporation (Yu, 2012). For example, the condition like recession causes direct impact on the varied pricing strategy of firm. For instance, hotel has decided to increase the rate of its services. The given aspect will not being fulfilled by the hotel if the situation like recession will be occurred. However, in order to function the operation in the given situation, enterprise has to direct its efforts in terms of reducing the prices of its services rather than increasing it.
4.1 Significance of international trade to the UK business organization
There is the significance of international trade to the UK business organization. International trade allows organization in terms of presenting the services of corporation at the wider platform. By complying with the practices like international trade, improvement in the sales and profitability related condition can be carried out by the Hotel Hilton. This is because, with the help of given approach new base of customers can be targeted by the organization. In addition to this, through international trade Hilton can improve its knowledge regarding the use of new technology that is being occurring in the field of hospitality industry in an effective way. Thus, it can be said that the aspect relating to the international trade provides several benefits to the UK business organization like hotel Hilton (Combe, 2011).
4.2 Impact of global factors on the UK firms
The global factors prevailing in the business environment causes necessary influence on the activity of UK business organizations like Hilton. In this respect, there are different type of global factors identified such as political, social and technological etc. The operation of the hotel is influenced through the political condition prevailing in the nation. For example, the government of UK has introduced some new law regarding the minimum wage rate of workers. Then in this situation hotel has to implement the given law in its recruitment policies also. In the similar way, the existing operation of hotel is also influenced through the social factor (Kryzanowski, 2006). The given factor showcases the condition like change in the tastes and preferences of buyers regarding the hotel services. Hotel has to immediately respond towards the given situation. If it will not respond then satisfaction of the customers cannot be maintained by it. This leads to affect the profitability related condition of the firm. Further, with this on regular basis there are various types of development is being occurring in the field of communication technology. For example, introduction of 3G and 4G techniques are being regarded as the latest example of modern communication technology. Hotel has to implement all these technologies in its operation. If not done then sales and profits will be affected in a negative way.
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4.3 Impact of European policies on the UK business organization
The impact of European policies on the UK business organization is being evaluated. In this regard, European policies for the competition is being identified. The given policies restrict corporation in terms of creating their monopoly in the market. This is because, the given policy believes that interest of society will be affected in the negative manner if the monopoly in the market is being created by the firm. The given policy affect the aim of hotel Hilton. For example, if Hilton has the aim with regard to create the monopoly in the UK market by charging the prices of its services at its own choice. Then in this situation the given approach will not being fulfilled by the enterprise. Thus, it can be said that the European policy as being framed by the government of UK possess its necessary impact on the activity of business enterprise (Lee, Olson and Trimi, 2012).
Assessing the benefits from EU policies
However, there are several benefits identified that can be gained by UK business organizations like Hilton from the European policy. By using the competition policies equal opportunity can be provided to the other organization. As the result of it fair environment of working can be created within the nation. This will motivate the firm like Hilton with regard to perform in the better manner (Pryke and Smyth, 2012).
Specifying the advantages and disadvantages of the suggested recommendation
In addition to this, Justification is being given with respect to the competition policy. With the help of given policy fair environment of working can be created. However, the given policy will restrict the organization in terms of charging the prices from customers of its own choice.
Organizing and managing the activity throughout the project
I have taken responsibility for managing and organizing the activity throughout the project. In order to manage my work and complete my project within the given specified time limit I have taken assistance from the time management relate tactic. It is with the help of given technique only I will be able to direct my efforts in terms of completing my work within the given specified time limit.
It can be concluded from the given report that by assessing the expectation of each stakeholders an effective measure with regard to the same can be taken by hotel. Further, with this by assessing the market structure prevailing in the particular country an effective pricing as well as output decision can be taken by corporation.
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