Executive summary

The business format of the International Hospitality Industry is diverse which include direct
ownership by the chains, franchising, management contracts, and consortium. Olsen and
Merna (1998) discussed that the international dimension or the globalization of the hospitality
Industry has added to its complexity. These complexities arise because of difference in the
legislative framework from country to country, economic and financial factors and market
conditions. Hospitality industry is a rapidly growing industry and there are many scopes for
the new entries. Number of employment has also risen up consecutively. In this report, the
aim is to discuss about the different organisation’s structure and their way of business. This
provides a clear view of the present market scenario. Comparative study has revealed
different structure of hotel industries. Size, scope and diversity are there in the market and
thus it creates opportunity for new entrance

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 Table of Contents
Task-1 ........................................................................................................................................ 3

Hospitality Outlets ..................................................................................................................... 3

Staffing and department structure of different organisation ...................................................... 3

Task-2 ........................................................................................................................................ 4

Classification System ................................................................................................................. 4

Task-3 ........................................................................................................................................ 4

Operational Areas ...................................................................................................................... 4

Analysis of Various Structures .................................................................................................. 4

Task-4 ........................................................................................................................................ 5

Roles of different departments ................................................................................................... 5

Conclusion ................................................................................................................................. 5

References .................................................................................................................................. 6

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Task-1

Hospitality Outlets
As per the assignment criteria description of ownership, services and facilities of different
organisations need to be analysed. Carluccio’s (provides great quality, authentic Italian food
at sensible prices), Compass Group, Expedia.com (Expedia, Inc. is one of the world’s
leading travel companies, with an extensive brand portfolio that includes some of the world’s
most trusted online travel brands), Fuller’s, Hilton Worldwide, Merlin Entertainments, and
Convent Garden hotel are the hotels, which operate their business in commercial sector in
United Kingdom. On the other hand, Mid Summer house, Holy Smoke and Sodexo Prestige
(Contract catering company) are there restaurants of catering service sector (Brotherton,
2012).

Midsummer house is a restaurant offers wide range of foods to customers. As per the data of
2013 the turnover of the restaurant £1000000 was total turnover of the restaurant. On the
other hand, Holy Smoke is restaurant located in London offer Italian cuisines to the
customers. Sodexo Prestige is a contract catering company and the company has been
awarded for providing best services to the customers. This is the most passionate catering
service company in United Kingdom. The net profit of the company is £ 9400 as per financial
data of 2011. The company offers self-service food including soft and hard services
(Instituteofhospitality.org, 2015).

Staffing and department structure of different organisation

Holiday Inn, Midsummer House and Sodexo prestige is having different organisational
structure and department structure (Jones, 2002). For hotel business staffs are required at the
kitchen and as well as in the dining area to serve. Host, cook, dishwasher, junior staff and
manager are the different types of staffs. On the other hand, in case of departmental structure
different departments are there. Starting from housekeeping department, front office
department, and food department, finance-marketing and administrative department are there.
In case of hotels service sectors varies from restaurants and catering Services Company, as
the serving area is big. Internal factors such as employees and external factors like suppliers’
influences different organisation for adopting different structures. Hospitality Industry is
complex because it is extremely complex. These complexities arise because of the
Fragmented nature of this Industry and the subsequent strategy of the Hospitality

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establishments for a bigger market share, growth and entering foreign markets. These
strategies include Strategic alliances, Consortium, Franchising, Management contracts,
multiple branding etc. (Collier and Davis, 2010).

Task-2

Classification System
Classification system is used to give rating to the accommodation, cuisine, and other
experiences (Denizci Guillet and Law, 2015). The aim is to provide information to people.
Six-classification system are used for this. Michelin Star is the first one and this is given to
the restaurant of high standard. A 3, A 2 and A 1 are the rating provided to the hotels.
Another category is “Fork and Knifes”. British tourist authority is the board, which gives
rating in diamond ratings and through the symbol AA. Five star rating represents highest
international quality accommodation. Egon Rony is one of the food critics and gives ratings.
Ratings are given form one to five stars. Gault Millau is the two restaurant critics having a
scale valuing one to twenty. According to these authors, no restaurants got twenty ratings
until date. Letters for A to F are used to provide rating to the hotels. Star S is also used for
rating (Instituteofhospitality.org, 2015).

Task-3

Operational Areas
Hotel London is going to start their business and as the as the deputy manager of the hotel
close market research and analysis have been done. The hotel is going to provide Italian food
as there is lack of hotels providing Italian cuisine in United Kingdom. In case of food
preparation, excellent techniques are going to be applied. The hotel will provide both food
and beverage services to customers (Collier and Davis, 2010). Accommodation services are
going to be provided by the hotel. Front house service will also going to be provide by Hotel
London.

Analysis of Various Structures

As proposed by the deputy manager the organisational structure of the hotel would start form
chief executive director and followed by operation manager, store manager, kitchen manager,

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maintenance manager and apart from these main chefs, dish washers, service crews will be
there for the customers. This structure is also known as hierarchical structure of hotel
industry. Each employee will be performing his or her own rules. As per the Equality Act
2010, every employee will be provided equal opportunities to enhance their performance.
Personal information of the employees will remain distinct as per the law. As it is going to be
hotel, providing Italian cuisine role of chefs is very vital. Carers and the service crew will be
responsible to supply food service to the customers (Instituteofhospitality.org, 2015).

Task-4

Roles of different departments

Different departments such as finance, customer’s service, marketing and human resources
department will be performing different roles. London Hotel is going to start its business and
to do this budget is very necessary. Pricing of the food and calculating profit are the various
duties those finance department needs to perform (Brymer, 2009). In new business,
investment is done to earn profit. Customer’s service department is another important
department responsible to offer best services and solve their complaints. Meeting customers’
needs are very important for the hotel, whenever customers are having issues; their problem
should be solved shortly. Marketing department is another important department, which looks
after the publicity of the hotel. Analysis the power of competitors and developing effective
strategies to give tough competition to the competitors is very important to handle. Human
resource department would be responsible for recruitment of the staffs, appraisal, and
employee training (Jones P, 2002). Role of human resource management is very important as
it supplies required employees for business and helps in ensuring business. Being the deputy
manager, these should be departmental structure.

Conclusion
This report has shed a light over hospitality industry in terms of their structure, business, size
of market and diversification. There are several scopes in the market to make entry in the
sector, as it is a rapid growing sector. Some market gaps have also found throughout the
report and by filling up those gaps, success could be gained.

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