Types of Business Ownership: Sole Trader (01:16)
Sole proprietors assume all business risks. London taxi driver Nick Bell enjoys freedom, but does not have paid sick days or vacation time. Sole traders have minimal paperwork.
Partnerships are groups of people setting up a business to achieve joint aims and objectives. They share responsibility, skills, ideas, and investments.
Limited Company (03:33)
A limited liability company is a legal entity that can sue people, be sued, and hold contracts in its own name. InterContinental Hotels Group Corporate Affairs Head Leslie McGibbon describes updating shareholders on financial progress. Learn about flotations.
A franchise entails buying into a brand, buying the right to own and operate a unit within an organizational network, and following that organization's rules. Franchisees avoid the mistakes of starting a business, but are not allowed to make changes.
Business Functions (04:33)
Tourism companies like the Marriott Group have finance for management accounting and budgeting; human resources for recruitment and training; operations; executive strategy for group branding; and marketing for brand development, communication, and customer relations. McGibbon outlines the IHG management and operations structure.
Organizational Hierarchy (02:26)
Organizational structures are typically portrayed as pyramids with CEOs at the top and employees at the bottom. Learn about the chain of command and span of control.
External Pressures and Industry Reports (08:58)
Political factors impacting the tourist industry include deregulation, international security, and infrastructure policy; economic factors include the credit crunch, international exchange rates, and inflation; social factors include ethics, sustainability, cultural exchange, and global travel demand; and technological factors include transport infrastructure, ICT, and social media.
Business Opportunities and Growth (04:51)
The travel and tourism industry attracts entrepreneurs. Growing organically requires generating new customers and sales from within. Inorganic growth entails acquisitions, mergers, and diversification. International companies like hotel groups create global brands; airlines form strategic alliances for economic protection.
Mission statements describe a company's vision; Amanda Marks explains Tribes Travel's code of ethics. Aims are identified objectives. Success is measured by achieving aims like increasing turnover, increasing net profit, growing market share, increasing shareholder value, or achieving investment.
Credits: Travel and Tourism Business Environments (00:51)
Credits: Travel and Tourism Business Environments
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