Hi, need to submit a 1500 words essay on the topic Legal Environment Analysis.
London hotels generated daily profit – expressed as income before fixed charges (IBFC) – of 47.75 per available room compared to 57.46 the same month a year earlier.” (Hospitality Trends, 2009) Although the trends in the hospitality industry at the levels of the hotel chains are not satisfactory the company is going to be the part of the small firms which comprises 99% of the UK business community. The tourism industry of UK comprises of 127,000 businesses in which 80% of the businesses have a turnover of 250,000 pounds per annum. “The London outlook by business segment has also been revised since the Q4 2007 Hotel Market Outlook report when it was expected that the luxury market would lead the sector in 2008. The model now suggests that the mid-market sector will be the front runner, seeing revPAR growth of 7.3% during the year, before falling back to 4.2% in 2009” (Hotel Market Outlook, 2008). The main source of competitive advantage in services industry is efficient service for the customers. Supply chain plays an important role in the efficient service provision to the customers. “The goal of a supply chain should be to maximise overall supply chain profitability. Supply chain profitability is the difference between the revenue generated from the customer and the total cost incurred across all stages of the supply chain. Supply chain decisions have a large impact on the success or failure of each firm because they significantly influence both the revenue generated as well as the cost incurred. Successful supply chains manage flows of product, information, and funds to provide a high level of product availability to the customer while keeping costs low.” (Chopra & Meindl, 2004. 44) The company will also use the same competitive technique in order to keep abreast with the challenges posed due to the high level of competition in the market.
Industry Categories or types of establishment
Hotels: These are the most luxurious provision of hospitality services (including conference and banqueting), resort, budget and bed and breakfast.
Pubs, bars and nightclubs: These are the managed houses where alcoholic beverages are sold.
Contract food service providers: These hospitality companies provide services such as schools or hospital catering provision. food and drink and facilities management at different organizations. They also provide services such as housekeeping linen and security.
Hospitality services companies: These companies provide support to the provision of in house food and drink. They can be retailers or local authorities.
Restaurants: Restaurants are the most popular category of the hospitality business found in UK. These include the Fast food establishments, cafes and coffee shops, mainstream restaurants and fine dining. The proposed business will belong to the same category. The hospitality business will be a restaurant with Oriental theme. Reason for
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