MGBBT0UBN Understanding Business Organisations Assignment Sample

Exploring Business Organizations: Assignment Insights

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Introduction Of Understanding Business Organisations

Imperial London Hotel is a 4-Star inn situated in the core of London. The lodging was laid out in 1837 as well as has been dishing up its clients for more than 180 years. The lodging offers extravagant convenience, occasion spaces, cafés, along with bars to its visitors. The ongoing setting of the lodging business is challenging because of the effect of the Coronavirus pandemic (Imperial , 2022). The pandemic has caused a huge decrease in the travel industry in addition to hospitality, prompting diminished income and employment misfortunes. The pandemic has significantly curtailed travel and hospitality, which has resulted in lower income and employment losses (The World Bank, 2021). New health and safety laws, a decline in the need for hotel services, and modifications in consumer behaviour have all required the hotel business to adapt. Despite these difficulties, the Imperial London Hotel keeps running and serving its clients while also taking steps to lessen the pandemic's negative effects on its bottom line.

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The organisational structure, duties, and culture of Imperial London Hotel will be analysed in this case study. To determine the internal and external variables that the pandemic has on the hotel's business, we will utilise SWOT and PESTLE analysis. The PESTLE study will help us understand the political, economic, social, technical, legal, and environmental aspects that have an impact on the hotel's operations while the SWOT analysis will help us understand the hotel's strengths, weaknesses, opportunities, and threats.

We'll talk about the hierarchy of the hotel's management, which consists of the general manager, departmental managers, and staff members. The roles of the hotel's departments, including marketing, finance, human resources, and operations, will be examined to see how they affect the establishment's performance. In order to understand how the hotel's culture affects employee behaviour and organisational success, we will also look at its values, beliefs, and conventions.

Business Organisational purposes

The organisational goal of Imperial London Hotel is to give its customers with opulent lodging, event spaces, restaurants, and bars while providing exceptional customer service, as already indicated in the introductory section. The hotel's goal is to provide its customers with a singular and unforgettable experience by providing them with high-calibre services that go above and beyond their expectations. The hotel's goal is to establish itself as the top choice among tourists looking for comfort and elegance in London (Imperial London Hotel, 2022.).

The Imperial London Hotel's main goals include giving guests opulent lodging and amenities, delivering first-rate customer service, and giving visitors an exceptional and enduring experience. The hotel strives to accomplish these goals by hiring highly qualified and committed employees, upholding a high level of sanitation and hygiene, and utilising cutting-edge technology to improve the guest experience. Increasing its market share by luring more visitors and clients is one of Imperial London Hotel's main goals(Roberts, 2013). The hotel hopes to accomplish this goal by stepping up its marketing and branding initiatives, expanding its internet presence, and offering consumers alluring promotional deals. The hotel's continued status as a leading accommodation in London is a key goal. By continually providing high-quality services, maintaining client pleasure, and putting forward measures for continuous improvement, the hotel hopes to accomplish this goal(Savitz, 2013). In addition, Imperial London Hotel wants to improve its profitability by boosting sales and cutting expenses. By lowering operating costs, increasing productivity, and optimising its pricing strategy, the hotel hopes to accomplish this goal. The Imperial London Hotel is also firmly committed to environmental practises and social responsibility. The hotel strives to have as little of an impact as possible on the environment by utilising ecologically friendly goods and materials, cutting back on energy use, and minimising trash. Through a number of programmes and events, the hotel also supports regional non-profits and communities(Porter, 2011).

Organisational Structure

The Imperial London Hotel's organisational structure is a large, hierarchical structure. There are many levels of management in this system, and each level has a distinct chain of command as well as certain tasks and responsibilities. The hotel's layout is intended to facilitate the provision of top-notch services and preserve a uniform standard of performance across all departments. Clear authority and communication channels allow for effective resource and employee management, which is one of the advantages of a tall organisational structure. Due to each department's ability to concentrate on its unique roles and areas of expertise, the structure also promotes greater specialisation (Imperial London Hotel, 2022.). The hierarchical structure makes sure that the right decisions are made with input from the right stakeholders at the right level. A lofty organisational structure might, however, also have significant disadvantages(Daft, 2018). In addition to this the organisational framework enables more specialisation because each department may concentrate on its unique roles and areas of competence. By doing this, the hotel is able to maintain a uniform quality of performance across all departments. The disadvantages of this structure, however, are the possibility of a workplace that is rigid and inflexible and might stifle creativity and innovation. Due to the several levels of administration, communication and decision-making may also slow down and become bureaucratic, delaying the implementation of improvements and resolving problems. The framework could provide a stiff, unyielding atmosphere that prevents creativity and innovation. Due to the several levels of administration, communication and decision-making may also slow down and become more formalised. This may cause delays in making adjustments and resolving problems(Luthans2022). The graphic below shows the Imperial London Hotel's organisational structure:

As shown in the diagram, the structure of the hotel is divided into various departments, including front desk, housekeeping, food and beverage, and human resources. Each department has a department head who reports to the general manager. The general manager is responsible for overseeing the overall operations of the hotel and ensuring that it achieves its strategic objectives. Overall, it can be said from the above discussion that the organization's structure encourages the provision of high-quality services and upholds a uniform level of performance across all areas.

Organisational functions

Planning, organising, leading, and regulating resources to accomplish organisational goals effectively and efficiently is referred to as management. Management at Imperial London Hotel is essential to ensuring that the hotel's operations function without a hitch and that it meets its strategic objectives.

  • The administration of the hotel's financial resources, including budgeting, financial analysis, and investment choices, is one of the primary responsibilities of management. In order to maintain the Imperial London Hotel's long-term financial viability, the finance department is in charge of monitoring the hotel's income sources, projecting future financial performance, and creating financial plans.
  • Another crucial management task is marketing, which entails highlighting the hotel's goods and services to draw in and keep guests. The marketing department of the Imperial London Hotel is in charge of creating marketing plans, gathering market data, managing the hotel's reputation, and creating advertising campaigns.
  • Managing the hotel's employees, including hiring, training, performance monitoring, and remuneration, is one of the key responsibilities of management. The HR department at Imperial London Hotel is in charge of making sure that the hotel has the appropriate employees in the right roles and that they have the knowledge and training needed to accomplish their jobs well.
  • Another crucial responsibility of management is operations management, which entails controlling all daily operations at the hotel, including guest services, housekeeping, food and beverage, and maintenance. The operations department of the Imperial London Hotel is in charge of making sure that everything at the hotel runs smoothly, effectively, and efficiently and that visitors enjoy their stay.
  • The administration of the hotel's sales and manufacturing processes, as well as the creation of goods and services, are essential management tasks. The sales department of Imperial London Hotel is in charge of creating sales strategy, locating new clients, and closing sales. The production function is in charge of making sure that the hotel's products and services are of the appropriate calibre and are delivered to clients on schedule.

The above management function is described in detail below for clear understanding of the hotels functioning:

Finance Managing the financial resources of the hotel, including budgeting, accounting, financial reporting, and financial analysis.
Marketing Developing and implementing marketing strategies to promote the hotel's products and services, including advertising, sales promotions, public relations, and direct marketing.
Human Resources Managing the hotel's workforce, including recruitment, training, performance management, compensation, and benefits.
Operations Ensuring the smooth day-to-day operations of the hotel, including front desk management, housekeeping, maintenance, and security.
Sales Developing and maintaining relationships with clients and customers to drive sales and revenue growth for the hotel.
Production Overseeing the production and delivery of goods and services offered by the hotel, including food and beverage, room service, and event planning.

These roles' interdependence has an effect on the Imperial London Hotel's overall effectiveness. Finance, for instance, supplies the tools needed to assist marketing and sales, which in turn boost earnings. HR makes ensuring the hotel has the staff on hand to carry out its operations and supports the provision of top-notch guest services. Operations management makes ensuring that the hotel's everyday operations go without a hitch and that visitors enjoy their stay. In conclusion, management is key to the success of the Imperial London Hotel, and its diverse responsibilities are necessary for the smooth operation of the establishment. These functions interact with one another, which affects the hotel's overall performance. For the hotel to succeed, these functions must effectively coordinate and collaborate.

Organisational culture

A group of people's common ideas, values, practises, and conventions are referred to as their culture since they influence their behaviour and attitudes. Language, symbols, and rituals serve as the means through which culture is transferred and evolved through socialisation. Culture can take many different forms, including subcultures, organisational cultures, and national cultures (Schein, 2010).

Organizational culture refers to the values, attitudes, and practises that shape the way an organization functions. It is sometimes defined as the "personality" of a business, since it determines how people interact with each other, make choices, and approach their work. Organizational culture is created through a combination of factors, including the organization's mission, history, leadership, and external environment(Cameron, 2011). It is impossible to overstate the importance of organisational culture to a company's success. A strong, supportive culture can foster innovation, encourage teamwork, and increase employee engagement. On the other side, a negative or poisonous culture can contribute to low morale, high turnover rates, and poor performance. In the case of Imperial London Hotel, the organization's culture plays a significant part in determining its success. The hotel has a strong customer-centric culture, which prioritizes the wants and desires of its customers. This culture is reinforced through regular training and development programs, which emphasize the importance of providing exceptional customer service(Deal, 2019). The hotel also fosters creativity among staff members by rewarding fresh ideas and approaches for enhancing the visitor experience. Due to this culture, new services and facilities have been created, helping the hotel stand out from its rivals. Examples include the hotel's mobile app and digital concierge service. But just like any other organisation, the Imperial London Hotel also has trouble preserving a healthy culture. The hotel's culture may prioritise the requirements of visitors over those of its staff, which might have negative effects on employee retention and burnout. Furthermore, the hotel's emphasis on innovation might foster a high-pressure workplace that is stressful for staff members(Ashkanasy,2011).

In conclusion, it can be argued that the Imperial London Hotel's culture has a big impact on how successful the company is. The hotel distinguishes itself from rivals and offers remarkable experiences to its customers by fostering a customer-centric and innovative culture. To maintain the welfare of its staff and the long-term success of the company, the hotel must continue to assess and fix any possible flaws in its culture.

SWOT Analysis

An organization's internal strengths and weaknesses, as well as its external opportunities and threats, are identified and analysed using the strategic planning technique known as the SWOT analysis. It is useful to evaluate an organization's position in its industry or market, both now and in the future.

Strengths:

The Imperial London Hotel's reputation for offering top-notch services and amenities to its visitors is one of its advantages. Due to this, the hotel has been able to keep its clientele solid even in trying situations like the Covid-19 pandemic. To further safeguard the safety of visitors and personnel, the hotel has put in place a number of safety procedures. The Imperial London Hotel's efforts in this area may provide them a competitive edge because, according to a J.D. Power survey, hotel cleanliness and safety are among the top considerations for travellers during the pandemic (J.D. Power, 2021).

Weaknesses:

The Imperial London Hotel's reliance on tourism and travel, which has been severely harmed by the Covid-19 outbreak and travel restrictions, is one of its disadvantages. The hotel's income and occupancy rates have decreased as a result of this. The hotel may also have trouble finding and keeping employees since the hospitality sector is so competitive. 2020's London Evening Standard (London Evening Standard, 2020).

Opportunities:

The predicted rise in domestic tourism as a result of travel restrictions and unpredictability surrounding overseas travel is one of the chances for Imperial London Hotel. The hotel might concentrate on attracting local clients by offering packages and discounts. Additionally, there might be opportunities for the hotel to increase the range of its services and facilities, for example, by using more cutting-edge technology and adopting eco-friendly procedures (PWC, 2021).

Threats:

The ongoing Covid-19 outbreak and the consequent limitations on travel and tourism are one danger to Imperial London Hotel. As a result, there is less of a demand for hotel services, which lowers earnings. In addition, as companies strive to recover from the epidemic, there may be more rivalry in the hotel sector (PWC, 2021).

PESTLE analysis

A strategic technique called PESTLE analysis is used to examine the external macroenvironmental elements that might have an impact on an organisation. Political, Economic, Sociocultural, Technological, Legal, and Environmental elements are often referred to as PESTLE. Organisations may utilise it to establish plans to minimise any negative consequences and seize opportunities by understanding how these external influences affect their operations.

Political Factors:

The UK government's support of the hospitality sector through different measures, such as the decrease of value-added tax (VAT) on tourist and hospitality services, has a positive political influence on Imperial London Hotel. The uncertainty surrounding Brexit and its possible effects on the economy and transport sector, however, is one adverse political element (BBC News, 2021).

Economic Factors:

The expansion of the international tourism sector, which has raised demand for hotel services, is a positive economic aspect for the Imperial London Hotel. However, inflation, which can result in higher costs for labour and raw materials, as well as the economic slowdown brought on by the COVID-19 pandemic, are unfavourable economic factors that are having an effect on the hotel industry (2021, The Guardian).

Social Factors:

The Imperial London Hotel is no exception to the rule that social elements play a vital influence in the hotel sector. The majority of the hotel's target clients come from a variety of ethnicities, origins, and age groups. As a result, societal issues like shifting fashion trends, travel patterns, and cultural variety have a big influence on how well a hotel performs. For instance, the pandemic's current "staycation" trend has prompted more local visitors to discover the city, increasing the hotel's occupancy rate. On the other side, cultural variations may make it difficult for the hotel to accommodate a variety of client preferences (Mintel, 2021).

Technological Factors:

The Imperial London Hotel is impacted by various technological factors, including advancements in the hospitality industry such as online booking platforms and mobile check-in options. The hotel also relies on technology for its operations, such as property management systems, security systems, and communication systems. However, keeping up with technological advancements can be costly and requires significant investment. Additionally, the risk of cybersecurity threats is an ongoing concern (Makos, 2021).

Legal Factors:

The Imperial London Hotel's activities are impacted by a number of legal issues. The employment law, which establishes the terms and conditions of employment, is one key legal aspect that has an influence on the hotel. The hotel is required to abide by minimum wage legislation, safety restrictions, and other employment laws. Tax rules are another legal aspect that has an impact on the hotel. The hotel is required to abide with tax laws, including VAT and corporation tax rules. Tax law violations can incur significant fines and penalties. The hotel must also abide by rules governing environmental standards, data protection legislation, and health and safety requirements. The operations and financial results of the hotel may be impacted by these legal issues favourably or unfavourably( Mishra 2002).

Environmental Factors:

The growing trend of consumer environmental consciousness is one positive environmental aspect having an influence on the Imperial London Hotel. The hotel has incorporated a number of green initiatives, including the use of water- and energy-efficient lighting, as well as the provision of reusing towels and linens for guests. Environmentally unfavourable elements, such as pollution, climate change, and natural catastrophes, might harm the hotel's operations and image.

Conclusion

In conclusion, the SWOT analysis conducted on Imperial London Hotel revealed its strengths such as its strategic location, experienced workforce, diverse range of services, and strong brand image. However, the weaknesses identified include high competition, outdated technology, and a lack of diversification in revenue streams. The opportunities that the hotel can leverage include the growing demand for eco-tourism, the increasing trend of experiential travel, and the emergence of new markets. The threats include political instability, economic downturns, and natural disasters.

The PESTLE analysis highlighted that political factor such as Brexit, economic factors such as inflation, social factors such as changing customer preferences, technological factors such as digital disruption, legal factors such as regulations and environmental factors such as climate change all have an impact on Imperial London Hotel.

In light of the above findings, it is recommended that Imperial London Hotel should focus on leveraging its strengths to capitalize on the opportunities while addressing the weaknesses and mitigating the threats. The hotel should invest in modernizing its technology, diversifying its revenue streams, and embracing sustainable practices. By doing so, Imperial London Hotel can position itself as a leader in the industry and continue to thrive despite the challenges it may face.

References

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  • BBC News. (2021, March 1). VAT cut extension welcome, but further support needed, say tourism and hospitality bodies. Retrieved from https://www.bbc.com/news/uk-56201287.
  • London Evening Standard. (2020). Imperial London Hotel: Iconic 200-room venue near Russell Square goes on sale for £75m. Retrieved from https://www.standard.co.uk/business/imperial-london-hotel-up-for-sale-russell-square-a4512226.html.
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