MGMT20144 Management and Business Context

Describe the Hospitality and food Industry functions in market ,food demands  However, setting up aims and managing organization is primary but what factors will affect to start new business and during the run business that ought to be remember. There is main two principal forces which could be affect on business.

Provide variety of foods and will focus of large number of customers form multi culture. The Internal organization environment comprise of forces within the business which impact.

The system of rules, practices and regulations through which a company is run have a huge impact in determining the success or failure of a business. Corporate governance involves a delicate balancing act, in which the interests of all stakeholders should be met satisfactorily. Through transparent corporate governance, industry best practice is promoted. However, bad governance results in situations where ethical conduct is not observed. At the same time, the firm’s reliability, integrity and ability to meet its obligations is severely compromised by negative governance by the stakeholders in charge of directly managing the business – the board of directors (Brickley, Smith & Zimmerman, 2003).

In the hospitality industry, the same concerns and aspects of governance are applicable. However, the industry has to grapple with additional concepts which tough on governance and the survival of the firm in a highly competitive industry. For instance, mergers and acquisitions are increasingly common in the business; companies try to exploit unique sources and capabilities possessed by their rivals. At the same time, franchising has also spread across the world, with more and more businesses opening franchises n places hitherto inaccessible to them (Mustapha, Ghazali & Muhamad, 2015).  

Corporate governance and organizational structure

Corporate governance and how it succeeds depends on the organizational structure which the organization has chosen in to help manage itself. While there are several types of organizational structure, it is ultimately upon the management to decide on their best structure to meet their objectives. At the same time, the management must realise the central role of a structure in implementing strategy. Corporate governance is dependent on organizational structure. This relationship is most apparent in the span of control that organizational structure gives the directors, and how it enables the organization to function in a way that helps meet the desires of other stakeholders. In the hospitality industry, and in the business I intend to start, the role of organizational structure will be critical. Issues involving efficiency and the implementation of strategy will determine the sort of structure to be adopted. In turn, this will have an effect on organizational culture, and governance practices (Paiva, Reis & Lourenco, 2016).

In the organizational structure that I propose, my colleague and me will be at the top of the organizational structure. We will be directly responsible for a number of issues, including business management and support. Under us, there will be specific managers for finance, marketing, operations and human resource. The organization of the institution along these lines will be done in a way which injects efficiency into the organization, while allowing for innovation and professionalism (Safari, Mirshekary & Wise, 2015).

Survival and expansion

Organizations are initially concerned about their survival. As business goes on however, focus shift to long term expansion including entry into new markets and possessing of particular attributes which cannot be attained through organic growth. Through the whole process however, businesses must consistently ensure that they have the right governance principles on place. These principles should be aimed at promoting efficiency, ethics and stability (Lasisi, 2017). At the same time, corporate governance is critical in ensuring the confidence of other stakeholders. Hotels depend on the goodwill extended on them by other stakeholders to survive. For instance, suppliers are encouraged by a policy which takes care of their interests and business commitments. At the same time, shareholders are driven to invest more money if they are satisfied that the company will employ the best corporate governance practices in place (Omolade & Tony, 2014).

As noted further by Omolade and Tony (2014), corporate governance has developed as direct reaction deficiency in ethics and sound management practices in organizations.  Corporate governance is increasingly seen as an important way through which institutions can improve their performance, attract investment, as well as the best stakeholders. These stakeholders – customers, suppliers and others is the key to organizational success, survival in a highly competitive environment and eventual expansion.

Internal growth will be encouraged. The organization will be built on the belief that people who intimately understand the dynamics of the organization are more suitable to lead the organization than external recruitments. This belief is in part backed by research by Parker, Peter and Turesky (2002). The research finds that firms which hire outsiders as CEOs are more than twice as likely to experience bankruptcy. On the other hand, owner participation in operations of the business is a positive force which helps guarantee long-term business survival.  

In the long-term, sound corporate governance will make the organization more attractive to other parties. As discussed before, it is difficult for a company to reach all the goals it has set for the long term without joining forces with other organizations. Corporate governance helps in portraying the organization as the best place to do business, to work and invest. When forming mergers, joint ventures and other collaborations, the role of corporate governance is critical. Potential partners will consider this before they eventually agree to join the hotel, after satisfying themselves about the hotel’s long term survival and expected growth.

Legal requirements

Like other industries, the Australian hospitality industry is highly regulated through several acts of parliament and government rules and regulations. The legal framework must be well adhered wit to avoid legal penalties r other adverse action that may even threaten the survival of a business. The liquor licensing act is one of the most important regulations. The act aims to regulate the sale of alcohol in hotels and other hospitality establishments. It sets different licenses for different types of business. For our particular needs, a general license would be most appropriate (Davidson, Manning & Timo, 2001).

Other important regulations are contained in the Food Act. This Act governs the way in which food and beverages are to be prepared in the hotel. Additionally, the act sets out the rules to be followed when including additives to the food, as well as ensuring that the food will be properly labelled to show what was used in its preparation. Related laws are meant to control the accessibility of particular type of foods to people in certain classes such as teenagers. As the hotel manager, it is my responsibility to acquaint myself with the legal framework. At the same time, it is my responsibility to sufficiently train employees so that they can also observe the said laws (Altin, Schwartz, Uysal, 2017).

The management must also acquaint itself with labour laws applicable to them. While there are general laws regarding procurement and how else labour should be obtained and treated, specific laws are applicable to hospitality industry employees (Bray & stewart, 2013). These issues include medical insurance, leave days and compensation per hour. The manager should ensure that they also apply human resource management principles which are adapted to their organization. Workplace safety regulations are also an important element in ensuring that organizations are able to properly take care of their employees’ safety and welfare. Organizations must invest in making the work environment safe, and training their employees so that they can more effectively take care of the safety (Gow & Frazer, 2014).

Conclusion

Governance is an important element in organizational performance and success. To ensure it is so, management must have the correct organizational structure in place. Additionally, a culture which is intolerant to unethical behaviour and corruption should be promoted. Organizations which are able to practice high levels of integrity are able to attract the best efforts of stakeholders. This helps the organization overcome initial survival challenges, and eventual efforts at growth and sustainability. An intimate understanding of the legal environment is also key in ensuring that the organization in question conforms to the law in its business operations.

References

Altin, M., Schwartz, Z., Uysal, M. (2017). “Where you do it” matters: The impact of hotels’ revenue-management implementation strategies on performance. International Journal of Hospitality Management, 67,46-52.

Bray, M., Stewart, A. (2013). From the Arbitration system to the fair Act: The changing approach in australia and the United Kingdom. Adelaide Law Review, 34 (1), 1-20.

Brickley, J., Smith, C., Zimmerman, J. (2003). Corporate Governance, Ethics, And Organizational Architecture. Journal of Applied Corporate Finance, 7 pages.

Davidson, M., Manning, M., Timo, N. (2001). Are Customer Satisfaction and Performance in Hotels Influenced by Organisational Climate? Australian Journal of Hospitality Management, 8(1), 1-10.

Dumas, M., La Rosa, M., Mendling, J., & Reijers, H. A. (2013). Fundamentals of business process management (Vol. 1, p. 2). Heidelberg: Springer.

Geppert, M., Matten, D., & Williams, K. (Eds.). (2016). Challenges for European management in a global context: Experiences from Britain and Germany. Springer.

Gow, A., Frazer, A. (2014). Discretionary benefit or entitlement? Hospitality workers and the ownership of customer tips in Australia. Australian Labour Law Association Conference, 2-25.

Grünig, R., & Kühn, R. (2015). Global Environmental Analysis. In The Strategy Planning Process (pp. 89-96). Springer Berlin Heidelberg.

Lasisi, T. (2017). The Relationship between Corporate Governance and Organizational Performance in Nigerian Companies. Walden Dissertations and Doctoral Studies, 4-30.

Loorbach, D., & Wijsman, K. (2013). Business transition management: exploring a new role for business in sustainability transitions. Journal of cleaner production, 45, 20-28.

Mustapha, I., Ghazali, N., Muhamad, N.(2015). The Influence of Corporate Governance and Organizational Capacity on the Performance of Malaysian Listed Companies, Mediterranean Journal of Social Sciences, 6(3), 28-33.

Omolade, O., Tony, O. (2014). ct of Corporate Governance on the Survival and Sustainability of Banks In Nigeria. American Journal of Engineering Research,3(2), 73-83.

Paiva, I., reis, P., Lourenco, I. (2016). Research in hospitality management and accounting: a research synthesis and analysis of current literature and future challenges. Problems and Perspectives in Management, 14(4), 83-91.  

Parker, S., Peters, G. Turetsky, H. (2002). Corporate governance and corporate failure: a survival analysis. Corporate Governance: The international journal of business in society, (2), pp.4-12, https://doi.org/10.1108/14720700210430298.

Safari, M., Mirshekary, S. Wise, V. (2015). Compliance with Corporate Governance Principles: Australian Evidence. Australasian Accounting, Business and Finance Journal, 9(4), 3-19. 

Tian, Q., Tian, Y. (2013). Organizational Structure: Influencing Factors and Impact on a Firm. American Journal of Industrial and Business Management, 3, 229-236.

Paulin, M., Perrien, J., & Ferguson, R. (2015). Organizational Culture in a Professional Business to Business Service Context: Implications for Business Performance and Long-Term Relationships in Mexican Commercial Banking. In Proceedings of the 1998 Multicultural Marketing Conference (pp. 478-478). Springer International Publishing.

Van Der Aalst, W. M. (2013). Business process management: a comprehensive survey. ISRN Software Engineering, 2013.

vom Brocke, J., Zelt, S., & Schmiedel, T. (2016). On the role of context in business process management. International Journal of Information Management, 36(3), 486-495.

Zou, W., Kumaraswamy, M., Chung, J., & Wong, J. (2014). Identifying the critical success factors for relationship management in PPP projects. International Journal of Project Management, 32(2), 265-274.