External Factors And Influences On The Hotel Industry Tourism Essay

External Factors And Influences On The Hotel Industry Tourism EssayA business does not function in a vacuum. It has to act and react to what happens foreign the factory and office w totally in alls. These factors that happen divulge post the business atomic number 18 known as external factors or influences. These testament usurp the principal(prenominal) cozy functions of the business and possibly the objectives of the business and its strategies.Main FactorsThe main factor that furbish ups most business is the degree of challenger how fiercely other businesses compete with the yields that another business cook ups.The other factors that stinkpot affect the business argon genial how consumers, ho delectationholds and communities be view as and their beliefs. For congressman, changes in attitude towards health, or a great number of pensioners in a population.Legal the way in which legislation in society affects the business. E.g. changes in employment laws on bring ining hours.Economic how the sparing affects a business in terms of taxation, government sp shut rarifying, general prerequisite, interest rates, swap rates and European and global economic factors.Political how changes in government indemnity might affect the business e.g. a decision to subsidies building stake-new ho holds in an argona could be good for a local anesthetic brick works.Technological how the rapid pace of change in outturn processes and product novelty affect a business.Ethical what is regarded as morally right or wrong for a business to do. For instance should it take with countries which pass a poor record on human rights.TABLE OF CONTENTS rogue NoT await 1- mission, Objectives and Responsibilities of an Organisation1a) Mission, Values and rouge objectives of the hotel crowd 1And interests of the stakeholders1b). stakeholders objectives and completion to which 2The hotel achieves these objectives1c). primal responsibilities of the hotel mathem atical group and the strategies 2Employed for achieving themTask 2 Economic, Social and global Environment (LO2)2. A) the fundamental features of aforethought(ip) and interracial economic 4Systems n impact on the trading operations of the hotel group2. B) companionable thoroughlybeing constitution and industrial policy measures in the UK 52. c) Impact of deuce macroeconomic policy measures in the UK 6And the US since the year 2011 on the hotel groupTask 3 -Behaviour of Organisations and the mart Environment3. A) shortcomings of both market place models relevant to the hotel group 7And show how they after part affect the profitability of the hotel.3b) factors of hand over and demand income, price, weather, and substitutes impact 9On the activities of the hotel group3c) demeanor and competitive strategies employed by agreements in the UK 10And the rationale for regulating the behaviour strategiesTask 4 International Trade and the European Dimension4a) the pros and con s of trade between the UK and other countries 114b) the impact of two European matrimony policies on UK organisations and 12The hotel group4c) Implications of the UK becoming a member of the European economic 13And monetary wedding (EMU) to the UK economy and to organisationReferencesTask 1- Mission, Objectives and Responsibilities of an Organisation1a) identify the Mission, Values and key objectives of the hotel group and show how they reflect the interests of the stakeholdersA Mission is the unique purpose that sets one hotel or motel lodge a bit from others. Moreover, the mission statement gives meanings and directions to hotel policies. In fact, when set almost with any problem, misunderstanding, or strategic decision to be taken, theater directors always, make sure that their decisions match the mission statement. In addition, the mission statement shall be general and broad. The mission statement shall reflect the interests of the yearsnts interacting in the hotel group .Guest Guest(s) trifle one of the most all-important(prenominal) agents in the hotel manufacturing. For no guests mean is no accommodation sector.Employee A hotel with no employees centre simply that guests would not be welcomed, registered, assisted for whatsoever specific they require have. Employees ar a primordial agent in the hotel exertionManagement Owners A hotel with no coach-and-fours resembles to an army without generals. Moreover, to have a hotel, investors shall poor some amount of money to build it, refurnish it, and operate it.Therefore, the mission statement tells how it is pass to satisfy all the above stated agents so that they continue acting in the hotel industry. (Keller, 2005)Key ObjectivesManagers shall, aim in mind the companys mission statement, come up with companys global objectives,Which are Specific numerical patentMeasurableIf objectives are general and non-quantifiable, then, it would be unfeasible at the end of a certain dot of time to see whether company actual results match with the plan objectives or not. (Grimble, 1997)1b).Identify three groups of stakeholders objectives and evaluate the extent to which the hotel achieves these objectivesProperty OwnersThey work together with property and to find innovative solutions that satisfy their economic, surroundingsal and kind objectives.EmployeesThey recognize the importance of communicating information about their business and its performance to employees. Because CR issues are central to our company values they are a prominent feature of global coun selling conferences, informal briefings, in-house popularations and our intranets. (Hahnel, 2001)In January 2011 we held a Green Day at our Atlanta Offices to raise awareness of IHGs set about to CR. During the coming year we will work with colleagues to ensure that we are following sound principles for Green Meetings and Green Training materials. We will overly set up a dedicated section on CR in our Leaders Loung e, a virtual community of IHG leaders that provides time-effective tools, tips and articles that reinforce our strategy and sustain theater directors improve their leader post. This online tool allows users to connect with and bundle go around practices with peers and senior IHG leaders around the globe.SuppliersFeedback from suppliers helps us to offend understand how we perform against our peers and gain a peeer picture of our risks.Wherever possible we encourage our hotels to source goods and services locally. In addition to IHG supporting local suppliers, we also need to rear responsible business practices by those same suppliers. One area we are working on with suppliers is procurement find out more in our Supply Chain section. (Myers, 2004)1c). formulate three key responsibilities of the hotel group and the strategies employed for achieving them.Hotel ManagerA hotel manager who is responsible for the day-to-day counselling of a hotel and its staff, They have commerci al accountability for budgeting and financial management, planning, organising and directing all hotel services, including front-of-house (reception, concierge, and reserves), pabulum and beverage operations and housekeeping. In larger hotels, managers often have a specific responsibility (guest services, accounting, and merchandise) and make up a general management team. While taking a strategic overview and planning ahead to maximise profits, the manager must also pay attention to the details, setting the recitation for staff to deliver a banal of service and presentation that meets guests needs and expectations. Business and people management are equally important elements. (Keller, 2005)The manager of a large hotel may have less make contact with guests but will have regular meetings with heads of department to coordinate and monitor the progress of business strategies. In a meeker establishment, the manager is much more involved in the hands-on day-to-day running of the h otel, which may include carrying out reception duties or serving meals if the need arises.Sales coordinatorOften seen as a dynamic and social working environment, hotels offer an attractive career path for numerous people. For those interested in the business side of hotels, a career in gross sales may be suitable vocation for them. Hotel group sales coordinators are commonly the link between the guests and the hotel company. Their roles involve a mixture of customer service, team management and check building for their hotel group.Group sales coordinator has many an(prenominal) responsibilities. Among them is the preparation of correspondence such as customer appreciation letters, helping to facilitate promotions such as half-price rooms and scheduling staff rotas to make sure the sales department is operating sufficiently. Other responsibilities include ensuring that the sales team meets its targets, liaising with individual customers and groups for expand feedback on the ho tels facilities and analyzing sales statistics to provide an accurate musical theme for the sales director.Hotel marketing managerA hotel marketing manager works with the hotels advertising and sales managers to promote the hotels services and facilities. Lower-level managers, the likes of market research managers, work together with hotel marketing managers to come up with ideas for creating new clientele such as offering hotel deals and incentives like free welcome drinks, a approving massage at the hotel or complimentary use of a business center. Marketing managers and researchers learn what travelers want and estimate the cost of including those services. (Hahnel, 2001)Task 2 Economic, Social and Global Environment2. A) address the fundamental features of planned and sundry(a) economic systems and explain how each system rotter impact on the operations of the hotel group. Use examples of the hotel activities to support your answer.Planned thriftinessA planned economy is an economic system in which the government or workers councils manage the economy. In such economies, the state or government controls all major sectors of the economy and decide all decisions about their use and about the dispersion of income, much like a communist state. The planners decide what should be produced and direct enterprises to produce those goods. Planned economies are in contrast to unplanned economies, such as a market economy, where production, scattering, pricing, and investment decisions are make by the private owners of the factors of production based upon their own and their customers interests preferably than upon hike uping some overarching macroeconomic plan. (Anthony, 2007)Mixed EconomyA mixed economy is an economic system that incorporates surveys of more than one economic system. This is typically office an economy that contains both privately-owned and state-owned enterprises or that combines elements of capitalism and socialism, or a mix of market ec onomy and planned economy. (Myers, 2004)Impact on planned and mixed economyThe centrally planned economy operates under the rules whereby the means of production, such as the hotels, are deemed to be owned by the public and all forms of economic bodily function are controlled by the government. This means that the central planning authorities are responsible for assigning production goals of the tourism industry as well as the allocation of factors of production. Within such a system, the residuum of total output absorbed as investment as opposed to private consumption, together with the distribution of income and the range of tourism activities produced, becomes a problem of social control rather than market forces. Therefore, in centrally planned economies the decision to produce particular levels of output of tourism products is a social and policy-making rather than an economic decision. The mixed economy is helpful in increasing national production in the country. some(pren ominal) public and private sector work hard to bring about more production. The problem created by free enterprise and too much public control are solved through mixed economy. It provides freedom of enterprise ownership profit earning as well as social welfare and political freedom .However Mixed economy is is not helpful in achieving optimal use of national resources .The mixed economy suffer from the drawbacks of both the capitalism and the socialism. Mixed economy seldom achieved progress. It suffers from continues backwardness. (Alec, 1997)2. B) Identify and explain two social welfare policy and industrial policy measures in the UK that impact on the activities of the hotel and similar organisationsSocial policy means the study of social services and the welfare state. Social insurance and Administration is an pedantic grammatical case furbish uped with the study of social services and the welfare state. It developed in the early part of the 20th century as a complement to social work studies, aimed at people who would be professionally involved in the administration of welfare. In the course of the last forty years, the range and largeness of the subject has developed. The principal areas relate topolicy and administrative practice in social services, including health administration, social security, education, employment services, community care and housing managementsocial problems, including crime, disability, unemployment, mental health, learning disability, and old ageissues relating to social disvantage, including race, gender and poverty andthe range of collective social responses to these conditions.Social Policy is a subject area, not a discipline it borrows from other social science disciplines for develop study in the area. The alter disciplines include sociology, social work, psychology, economics, political science, management, history, philosophy and law. (Nyheim, 2004)Industrial policy means in essencean activistic approach by the state towardssupport for and development of the economy. In the UK, state activism in this area was brush aside in the 1970sbecause extensive state financial support for the defunct UK car industry failed at2. c) Evaluate the impact of two macroeconomic policy measures in the UK and the US since the year 2011 on the hotel groupThe main policies of economic management that are impact on the hotel group in UK.Fiscal PolicyFiscal policy involves the use of government spending, taxation and borrowing to influence both the pattern of economic activity and also the level and growth of aggregate demand, output and employment.Monetary PolicyMonetary policy involves the use of interest rates to control the level and rate of growth of aggregate demand in the economy.Here are some differences in the economic effectuate of monetary and financial policy, on the art object of output, the effectiveness of the two kinds of policy in meeting the governments macroeconomic objectives, and also the time lags involved for fiscal and monetary policy changes to take effect. We will consider each of these in turnEffects of Policy on the Composition of National Output from the hotelsMonetary policy is often seen as something of a discourteous policy instrument affecting all sectors of the economy although in different ways and with a changeable impact.In contrast, fiscal policy can be targeted to affect certain groups (e.g. increases in means-tested benefits for low income households, reductions in the rate of corporation tax for small-medium sized enterprises, investment allowances for businesses in certain regions)Consider as an example the effects of using either monetary or fiscal policy to achieve a inclined increase in national income because actual GDP lies below potential GDP (i.e. there is a negative output gap) (Buchanan, 1996)Task 3 -Behaviour of Organisations and the Market Environment3. A) Explain the shortcomings of two market models relevant to the hotel group a nd show how they can affect the profitability of the hotel.SWOT Analysis of Hilton HotelsAll major hotel corporations, is move to recover from the events of September eleventh. This tragic human event also delivered a financially devastating drag to the travel industry as a whole and to the hotel industry in particular. In order to full recover and thrive in the coming years, HHC must assess its overall all strengths and weaknesses as it moves forrader through the new millennium. The following SWOT Analysis sheds some light on some of the pitfalls and opportunities that face the Hilton Hotels Corporation. (Porter, 2001)StrengthsHilton Hotel Corporation (HHC) is a well established organization and industry leader in the hotel, hospitality and maneuver industryHHC is well diversified across the industry with hotels in the high end, business and mid-priced classes in their product mixHHC also possesses solid integration features such as owning the companies that manufacture its fu rniture and has invested in online reservation travel enterprisesWeaknessesHHC may be two narrowly focused making it vulnerable to a downturn in the global economy and other world-wide catastrophes that could limit global travel such as the bird-flu and a significant terrorist strikeHHC may be vulnerable to workers strikes and crack down on undocumented workers in the U.S. Most of its holdings are in the U.S.OpportunitiesHHC should offer an array of distinctive and specialized services to the high end guests and high rollers such asWedding planning hostingSpas that specialize in personal services ain trainersHHC should look to expand into or acquire a cruise lineA cruise ship is little more than a hotel that floats this would essentially match what it latestly does with its leased propertiesGaming activities would escape regulation, etc.Take advantage of emerging markets, especially with business class and mid-priced marketsThreatsHHC must be careful not overextend its efforts to mix entertainment and gamingAlso the extension of credit and other side effects of gaming can slowly but surely nibble away profitsSeptember 11th was a major blow to the hotel industry. A similar event could result in another down turn.By studying national and regional industry trends, HHC will be able to take advantage of opportunities that will enable growth while identifying threats that may affect profitability. Growth in the hotel and hospitality industry will include a continued focus on gaming, international expansion and using all media to promote its products to potential customers. One recommended strategy for Hilton is to emphasize the importance of family in all its hotels, including the gaming and casino locations. Las Vegas has spent millions to attract families by adding childrens attractions as well as the traditional casinos for the adults. Most of the hotels have at least a small area dedicated to arcade poles. However, some hotels have elaborate arcades, game areas, and child-care centers intended for those travelling with children (Hilton Hotels Corporation, 2007). Hilton needs to ensure they are right in the middle of this demographic of parents traveling with children. While the focus can still 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 acquirable that will attract parents with children to stay at the property. Since there is a greater demand and vacation time has become one of the few clock that families are able to spend quality time together, Hilton must capitalize on this market segment. (Buchanan, 1996)Market SegmentationMarket Segmentation means breaking down the total market into self contained and relatively standardized subgroups of customers, each possessing its own special requirements and characteristics. This enables the company to modify its output, advertising messages and promotional methods to correspond to the needs of parti cular segments. Accurate segmentation allows the firm to pinpoint selling opportunities and to tailors its marketing activities to satisfy on consumer needs. through with(predicate) the process of market segmentation, there are certain variables to identify customer groups, such as needs, income geographical, location, buy habits and other characteristics . (Hahnel, 2001)3b) Explain 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 meeting or convention, some factors are influenced.First, factors that influence room blocks and room rates are based on supply and demand. So, if the hotel is in their peak season, they have more clients requesting the same space and can choose who gets the space and can set their price.Most hotels have a preferred pattern for arrivals and departures. If your pattern fits theirs, they may be unbidden to talk terms. However, if the pattern differ s, you may have to pay higher rates.Be prepared, check with the Convention Bureau and ask what the normal occupancies are for various months of the year. That way you will have an idea of how much the hotel needs your business. If you can hold your meeting in a month that has less occupancy, you have more room to negotiate.Also, do not falter to ask for special items in the contract. The more the hotel needs your business, the more they are impulsive to give up or add to the contract in order to get your signature. (Carl, 1997)It may be easy to get that suite you wanted on a complimentary basis or at a special rate. If the hotel is going to have a low occupancy and would not be selling that suite in the first place, they have nothing to loose by giving it to you in your contract.So, what factors are involved that influence pricing when negotiating a sales contract for sleeping rooms, meeting space and food events? They are availability of rooms, room patterns, your ability to be fl exible and especially you being aware of what the hotel is tone for.Therefore, do your homework before meeting with your hotel of choice and you will be better prepared to negotiate successfully.3c) Explain three behaviour and competitive strategies employed by organisations in the UK and the rationale for regulating the behaviour strategies. Use relevant examples to support your answer.Organizations operate inside a competitive industrial environment. Analyzing its competitiveness help to identify opportunities for and threats to the organization from its industrial environment, SWOT analysis is a systematic analysis of these factors and the strategy that reflects the best match between them.Considering the as an example, relation to the core competence of McDonalds, one of the largest food chain companies in the world. Let us first start with the strengths and the positive aspects which define the performance of this company. Strength is a distinctive competence that gives the fi rm a comparative advantage in the market place. For instance financial resources, image, market leadership and buyer supplier relations etcThe greatest strength was creating an image in the minds of the people and introducing them to the nimble food culture. Delivery speed, customer care and cleanliness are the core strengths on which these stores expanded. They created a corporate attribute and their advertisement campaigns were highly successful in establishing the brand image and logo in the minds of the millions. Two main competitors generally identified with McDonalds are the Burger King and the KFC. McDonalds marketing strategy is concerned with the internal resources, external environment and its basic competencies along with its share holders.McDonalds product value is also its greatest strengths. Customers know what to expect when they liberty chit into a McDonalds store. It gives great emphasis to human resources by satisfying both the customer and the employees. Next i s the innovation aspect wherein new products line up to catch up with the new trends and tastes of the people. Its diversity into other new business ventures can also be considered as its strengths.One major threat to any brand is its relationship between the management and the franchise dealers. Organization strength is the back bone of any concern and when that starts shaking the whole system will collapse. But slowing McDonald is recovering from all these weaknesses as its brand managers can easily communicate, compare and improve their services through the latest technological developments wherein they can use the internet to motivate, compare and improve upon other centers performances.The overall analysis of all the external and internal strengths and weaknesses on this company should be linked in order to draft a sustainable plan for the companies further improvement. For any improvement or expansion the internal resources must be readily available. And thus analyzing this as pect can lead to a modified strategy to suit its vision. Keeping in mind the available resources the planner should think globally. Hence making use of all the core competencies the firm can unimpeachably sustain in the competitive market.Task 4 International Trade and the European Dimension4a) Discuss the pros and cons of trade between the UK and other countries. Use the activities of the hotel group to support your answerProsAccording to the U.S. State Department, the unite States had implemented nine free trade agreements with a total of 14 countries and had several others awaiting final portrayal as of September 2009. The agency reports that since the implementation of these economic pacts U.S. exports have increased exponentially and imports have adult considerably. Therefore, the State Department makes the claim that free trade supports economic development in poor countries as well as in the united States.ConsIn November 2003 the Economic Policy Institute issued a repor t that seriously questions the benefits of free trade. According to the document, the rise in the U.S. trade deficit with its NAFTA trading partners, Canada and Mexico, caused the displacement of high-wage positions in U.S.-based manufacturing industries. Additionally, the report states that workers in all three member countries have been hurt by free trade, with many Mexicans being reduced to subsistence-level work while Canadians witness a reduction in important public spending in education, health care and other such services. The institute says that NAFTA guidelines tilt the economic detail in favor of investors while offering no environmental or worker-safety protection.ConsiderationsWhile just about everyone agrees that international trade will continue, the debate over free-trade economics demonstrates the existence of two radically different viewpoints those of the businesses and investors that have benefited from the adaptation of free-trade agreements and those of blue-c ollar workers, who appear to be losing ground financially. Policy negotiators might do well to consider the well- being of all concerned by adopting guidelines that guarantee a living wage to all as well as environmental and worker-safety standards. (Carl, 1997)4b) critically analyse the impact of two European man and wife policies on UK organisations and the hotel group, if any.UK hoteliers are feeling quietly optimistic about the new coalition governments tourism policy priorities for the countrys hotel industry.Industry leaders are hoping for a new era of firm leadership supported by clear tourism policy. Many are hopeful that the new administration will place greater emphasis on tourism policy, support new investment and provide better co-ordination of Whitehall policies across the industry.With clear policies on regulation, tax policies and interest rates, the new government is in a position to provide better stability for hotel developers, owners and operators, despite cuts i n public spending. (Easterly, 2001)At this crucial time, the UK hotel industry needs strong, unified design to government. The strongest organization is most probably the British Hospitality Association (BHA) who has already raised quintuple key points on behalf of the industry, as followsFewer regulations and those that are introduced should be more accurately coasted and assessed for their impact on small businesses.An understanding that the industry is a potential job creator and is the main economic driver of many regions in the country even including London. Yet, in an industry largely made up of small businesses, noncurrent fiscal and regulatory measures have inhibited private investment to a great extent.Greater cost increase by the government for businesses to invest, through the introduction of appropriate tax breaks and capital allowances (eg Hotel Building Allowance). Only through more private investment will the industry be able to meet rising international competit ion.A government department (presumably the DCMS) which is stronger and more able to represent the industry with other government departments and end-to-end Whitehall.Too many local, regional and national tourism bodies are fighting for limited amounts of funding to promote Britain internationally, nationally and locally. Only some Regional Development Agencies have seriously supported their tourism industry while a number of regional tourism boards have been disbanded. A more coherent approach to the countrys tourism infrastructure is required.4c) Evaluate the implications of the UK becoming a member of the European economic and monetary union (EMU) to the UK economy and to organisations operating in the UK. Use relevant examples to support your answerThe Economic and Monetary Union or EMU is an umbrella term for the group of policies aimed at converging the economies of members of the European Union in three stages so as to allow them to adopt a single currency,. As such, it is l argely synonymic with the Eurozone.All member states of the European Union are expected to participate in the EMU. The Copenhagen criteria are the current set of conditions of entry for states wanting to join the EU. It contains the requirements that need to be fulfilled and the time framework within which this must be done in order for a country to join the monetary union. An important element of this is the European Exchange Rate Mechanism (ERMII), in which candidate currencies demonstrate economic crossway by maintaining limited deviation from their target rate against the euro. (Easterly, 2001)All member states, except Denmark and the United Kingdom, have committed themselves by treaty to join EMU. Seventeen member states of the European Union, including, most recently, Estonia, have entered the deuce-ace stage and have adopted the euro as their currency. Denmark, Latvia and Lithuania are the current participants in the exchange rate mechanism. Of the pre-2004 members, the Un ited Kingdom and Sweden have not joined ERMII and Denmark remains in ERM without proceeding to the third stage. The five remaining (post-2004) states have yet to achieve sufficient convergence to participate. These ten EU members continue to use t