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Higher National Diploma in


HOSPITALITY MANAGEMENT

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Contents
Introduction......................................................................................................................................4

Different types and purposes of organizations: Public, Private and Voluntary Organizations &
Legal Structures...............................................................................................................................5

The size and scope range of different types of organizations..........................................................7

Different functions, objectives and structure and their relationship in an organization..................9

Positive and negative impacts the macro environment has upon business operations, supported
by specific examples......................................................................................................................11

Internal and external analysis of specific organizations to identify strengths and weaknesses.....13

How strengths and weaknesses interrelate with external macro factors........................................14

Conclusion.....................................................................................................................................15

Bibliography..................................................................................................................................16

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Introduction

Every business organization is impacted by factors such as environment, business strategies,


competitors, cultures, society, market, functions, structures, employee divisions, etc. And these
factors should be properly evaluated so that the managers get the best insights before making an
organizational decision fitting accordingly to a situation. This paper includes discussion about
various business environments, different types of business structures along with some other
factors that may impact on a business organization.

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Different types and purposes of organizations: Public, Private and
Voluntary Organizations & Legal Structures.

Among many types of organizations in the world three are discussed in this paper and those are
public, private and voluntary business organizations along with the legal organizational
structures.

Public Business Organizations

Organizations that have their shares offered to the general public and have limited liabilities are
the public business organizations recognized as LLC, PLC, Ltd, etc. Organizations of this
category offer stocks to the public that can be acquired by any individual. The main reasons
companies go public is to raise their capital and to spread out the liabilities and risks. In the UK,
an enormous amount of public business organizations run their business operations and these
organizations mostly include banks, public transportations, the manufacturing industry and so on.

Private Business Organizations

Companies with limited liabilities are commonly known as private business organizations.
Organizations under this category provide legal shareholder protection but are owned by certain
individuals. The McLaren Group, for instance, they have businesses of different sectors that
include a renowned technology brand all over the world known for making the world’s most
illustrious high-end technological products. McLaren Racing was formed in 1963 and they have
been pioneering innovation at this competitive stage of F1[CITATION bri19 \l 1033 ].

Voluntary Business Organizations

Organizations that provide services as an aid to certain individuals and organizations by


providing integrated structural development advisory services to businesses. For example, a
struggling business farm hires a voluntary firm that will do the needed research and provide the
best possible solutions. There are different types of voluntary organizations in existence. Oxfam
can be a good example of a voluntary organization. Oxfam is also known as a global platform of

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people working to ensure a future of equal human rights and to erase poverty. They work with
partners over 90 countries in the world to save, protect lives in fragile times and crises, providing
solutions to poverty through research and to bring equality. They work mostly in the parts of
conflicts, natural disasters, climate change, etc. for the right of sustainable livelihood of the
people suffering those. The main focus is bringing people and governments together to work on
the same platform to ensure the right to life and security, the right to a sustainable livelihood, the
right to essential services, the right to be heard, the right to an identity. Oxfam responded to the
Rohingya crisis in Bangladesh by installing sewage facilities as well as toilets and showers. They
installed solar-powered lights and torches and lanterns. [CITATION www \l 1033 ]

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The size and scope range of different types of organizations.

The organization can be different in form based on the activity and the size. As mention Dove
operates a bus coach service. Right his business is a sole proprietorship business. He faces lots of
challenges in the business but he cannot increase the service quality. As he operates his business
as a sole proprietorship he can't manage all the things alone. There arises a public limited bus
service that takes all the customers of Dove. So he wants to change the structure of his business.
so different types of business are described below:

 Sole proprietorship business: In sole proprietorship business there have only one owner
who operates the whole business. the loss and profit rights go to the owner directly. But
the main problem of this business is an unlimited liability. The personal property of the
owner is liable for the debt of the business. Dove operates his business in a sole
proprietorship. So he can’t manage all the things alone[CITATION acc181 \l 1033 ].
 Public Business Organization: A public limited company has its liabilities spread to a
large extent. It includes a large number of investors, shareholders, employees and other
forces that play a role in the organizations. Public limited companies can sell and trade
their shares freely on the stock market, unlike the private limited companies. Such
organizations usually appoint two directors and a secretary and an annual report file is
submitted every 12 months. The advantage of setting up a PLC is that capital rises
through share sales. There are certain regulations that an organization must follow before
going public. The public limited company is large. They sell their share to the public and
collect funds from the public. This is the best advantage of the public limited company.
 Private Business Organizations: a private limited company formed by the lowest 2
members and highest 50 members. The scope of the business is very high as there have a
large amount of capital and good numbers of people. As Dove operates a bus service
alone he wants to change his business structure and make it a private limited company.
After that, the amount of capital also increased and he can increase the service quality
and face the competition by the public limited company. As there have many members
the can take a good decision and can implement it very easily. They can look over their

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company. In the private limited company, there has a management board that operates the
whole business. this board is selected by the member of the organization.

 Voluntary Organizations: There are many voluntary organizations all over the world
such as Red Crescent, Oxfam, HRW, etc. These organizations have billions of volunteers
working as a part of movement such as eradicating poverty, making people aware of
climate change, environmental campaigns, ensuring basic human rights and so on. These
organizations play a vital role in a time of crisis, conflicts, war, natural disasters and
directing governments in situations such as the Rohingya crisis in Bangladesh and the
refugee crisis in Europe. Usually, these organizations have a large network of donations
and charity funds which they spend to help a suffering population. There are no limits of
volunteers in this category of organization in which anyone with a good intention to help
others can work as a part of the organization. There are business voluntary firms who
provide solutions to other firms.

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Different functions, objectives and structure and their relationship
in an organization.

A business company contains lots of departments. Each department function is different but they
are linked with one another.

 Marketing: Marketing creates value for a product and organization. Strategic marketing
plays an important role in a product's growth and existence in the market. Marketing
employees analyze and research possibilities, conditions and they provide better insights
to the managers to take the right decision. Marketing department segment the market for
its product and target that segment. But all the departments related to one another. Like
every year the finance department gives the budget to the marketing department. They
have to complete their activities within this budget. If the company want to increase their
sale the marketing department needs more people. Then the HR department gives people
to the marketing department.
 Finance: A finance department allocates the resources according to the research and
analysis provided by the marketing and strategy department. The finance department
allocates and manages the money in an organization. The investors, revenue, costs and
making necessary investments are part of the finance department's tasks. In today's
competitive world, the finance department highly recognized and appreciated and
maintained by every company as it is what makes the decision making easy and fruitful.
 Human Resource Management: Job is to bring the best-talented recruits and to manage
the vast human resource and. HRM focuses on managing employees and workers. They
recruit the best employees who will strengthen the workforce and bring the best results
out of them. Factors such as employee motivation, workforce diversity, norms and
measuring employee feedbacks are the major tasks of HRM.
 MIS: Management Information System, MIS department handles all the information and
technological issues such as CRM software, integrated computer networks to maintain a
smooth flow of internal and external communications. MIS department provides other

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managers with the tools to organize, synchronize and evaluate the necessary data and
information to efficiently manage the organization. MIS helps in strategic planning, for
example, information of employees, departments, projects, clients, investors, etc. data are
kept, provided accordingly to organization managers by this department.

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Positive and negative impacts the macro environment has upon
business operations, supported by specific examples.

PESTLE analysis is a tool for analyzing macro environments:

a) Political factors

b) Economic factors

c) Social factors

d) Technological factors

e) Legal factors

f) Environmental factors

 Political Factors: political factors determine the government rules and regulations on the
business. if the nations have good relations with their nation than it helps to make
business there. Sometimes the government imposes a different policy like impose tax,
bank rate policy. Those have a great impact on the business.
 Economic Factors: Economic conditions, infrastructure, economic cycle, growth, and
other factors decide how an organization may approach in a certain market.
Organizations design their operational plans by the economic conditions of a country or
region.
 Social Factors: A society’s culture, value, perception, lifestyles are part of an
organization’s strategic approaches to that certain market. For example, many global
food chains sell beef or pork in western counties, but here in any part of the world
religion and social values matter a lot and which is why they don't sell pork in the
Muslim countries. Coca Cola's diet drink did well in Japan’s market but failed in the
other parts of the world and thus social factors impact organizations to design
sophisticated market strategies. Due to the social factors, some organizations couldn’t

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survive in many markets with their parallel strategy. Gloria Jeans saw they couldn't
survive in this market just by selling coffees so they added rice and other local items in
their menu. This is how social cultures and values impact an organization. Policies and
strategies that worked in the UK might not in the Indian subcontinent. This is why social
factors are analyzed by most of the organizations.
 Technological Factors: Technology strengthens and fastens the organizational works
and processes. Sophisticated software such as CRM helps organizations to maintain
proper customer relationship and communication. Technology provides data to analyze
and make organizational decisions. It makes things easy and clear for the managers to
maintain workforce harmony. Technological updates or innovations are often done by the
organizations so the productivity enhances cost-effectively. Efficiency, just in time
delivery, the flow of communication and data became possible through technology.
 Legal Factors: Legal factors are important as the organizations have to maintain their
business by following certain laws and regulations and support. Legal factors may vary
among countries. For example, it is not allowed to sell wine in many Muslim countries
and organizations have to follow that rule. Also, legal factors apply to some business as
well, such as public company regulations, legal protection and so on.

 Environmental Factors: Environment is a major issue in the present day. The world's
climate has changed, pollution, overconsumption of the resources, are causing problems
almost in every part of the world. As for the organizations, it has become vital to design
their products as eco-friendly and sustainable. Companies that produce plastic and
packaged goods, should apply their strategic approach to the market by making aware
campaigns as plastic is a major issue now and it does damages to nature. Many car
companies are focusing on making more economically sophisticated cars that cause no
harm to nature. Certain environmental geography matters in business expansions,
marketing strategies and so on. Countries such as Singapore, Philippines are focusing
more on environments these days by banning plastic use, providing electric transport
vehicles in the tourist spots and whatnot. Companies need to focus on that part as well as
making profits. It has become a vital factor, probably the most important global issue.

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Internal and external analysis of specific organizations to identify
strengths and weaknesses.
SWOT (Strength, Weakness, Opportunities, and Threats) of Leadway consultancy firm.

Strengths

 The leadway consultancy firm offers lots of departments to solve their problems.
 They give consultancy on the tax issue, Accountancy and finance, management and
leadership training and business planning and corporate strategy.
 They provide multi-language service to their customers for a better understanding of the
solution.
 They visit the firm of their customers and find the problem.

Weakness

 As the business world is complex, arise many complex problems. Sometime their
solution may not work in the organization.
 In the UK there have more than 10000 consultants so the leadway consultancy firm faces
heavy completion.

Opportunities

 In the UK the business sector is very large and there was a huge number of companies.
Which face problems regularly.
 The future of the consultancy firm in the UK is very bright.

Threats

 In the UK the consultancy firm face huge competition. This is an important threat to the
Lead away company.
 The consultancy firm has only one activity to consult the clients. But it is very risky to go
forward with one service.

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How strengths and weaknesses interrelate with external macro
factors.

 Strength: The leadway consultancy firm offers lots of departments to solve their
problems. They give consultancy on the tax issue, Accountancy and finance, management
and leadership training and business planning and corporate strategy. They provide multi-
language service to their customers for a better understanding of the solution. They visit
the firm of their customers and find the problem. This consultancy firm earns form only
one side. Their income is not so high. If the government impose different condition like
increase the tax rate. Because of that, those consultancy firm cannot earn so much profit.
On the other hand, if the government impose condition like the national consultancy firm
cannot make their foreign client that this may create a big issue for the consultancy firm
like leadway.
 Weakness: As the business world is complex, arise many complex problems. Sometime
their solution may not work in the organization. In the UK there have more than 10000
consultants so the leadway consultancy firm faces heavy completion. If the UK
government impose hard rules for the business the people of the UK demotivated to enter
the business, as a result, the client of those consultancy firm reduces.

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Conclusion
The business environment is a vital part of an organization to enter and operate in a market.
Proper study and research will help to achieve an organizational goal. Emphasis on uprising
climate issues should become a part of product designing and production. Different organization
structure has different scope. So before entering the business the entrepreneur must justify the
structure of business and its scopes.

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Bibliography
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[Accessed 02 11 2019].

airlineportal, 2018. airlineportal. [Online]


Available at: http://www.airlineportal.org/flybe.htm
[Accessed 1 11 2019].

britannica, 2019. britannica. [Online]


Available at: https://www.britannica.com/topic/public-enterprise
[Accessed 03 11 2019].

Christian, C., 2009. Legal Aspects of Doing Business in Europe. s.l.:Cengage Publishing.

collinsdictionary, 2017. collinsdictionary. [Online]


Available at: https://www.collinsdictionary.com/dictionary/english/voluntary-organization
[Accessed 03 11 2019].

flyberichardyoung, 2018. flyberichardyoung. [Online]


Available at: https://image.slidesharecdn.com/flyberichardyoung-160719084611/95/flybe-case-
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[Accessed 2 11 2019].

Oxfam, 2019. www.oxfam.org. [Online]


Available at: https://www.oxfam.org/en/what-we-do/emergencies/bangladesh-rohingya-refugee-
crisis
[Accessed 01 11 2019].

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