Sample Research Paper on Structures and Operations of The UK Economy

3.0 Introduction

United Kingdom is considered among the largest national economies in the world. This can be affirmed after it was ranked the ninth largest importer and exporter in 2014 and second largest economy in Europe based on the nominal Gross Domestic Product and Purchasing Power Parity. The economy is therefore the most globalised in the world comprising of Northern Ireland, Wales, Scotland, and England in an ascending order. Financial service industries contribute at least seventy-eight percent of the economy’s Gross Domestic Product, hence being considered the most important especially in London as it hosts the largest financial centre. This is followed by the aerospace, pharmaceutical, and automotive industries as well as oil and gas production. During the 2007/2008 financial crisis, the economy was on recession after experiencing a deep downturn. It has however been recovering and expanding its socioeconomic territories, especially since 2010 during when the government commenced the project of pursuing austerity programs in attempts to cut budget deficit. The government is therefore greatly involved in activities controlling and measuring the United Kingdom economy (Wholehouse, 2014, p. 1). This dissertation will therefore discuss various aspects of the economy based on the question posed on each task.

4.0 Essay Body

4.1 Task 1

Discuss the structure and operation of the UK economy (size, features, philosophy, regulation, taxation, security, efficiency, direction)

The United Kingdom economy can be grouped into two categories, namely the private and public sectors. Private sectors in the nation are set up by entrepreneurial groups and individuals seeking to make profits based on the activities undertaken from the business ventures they have set up. The private sector is therefore controlled by people who own, finance, and control individual organizations. They also strive to provide job opportunities for the unemployed, achieve job satisfaction and accumulate power, prestige, and wealth.  Conversely, the public sector comprises of companies owned, financed, and controlled by either the local or central government. This sector of the economy is tasked with providing communities with products and services through the local government, public corporations, and statutory agencies. Statutory agencies in United Kingdom include the National Health Service (WET, 2013, p. 1). Thus, this sector is not driven by the desire to make profits. Instead, it is based on the sole purpose of ensuring that communities are able and empowered to meet and fulfill their needs and wants. This is achieved through the use of funds supplied from taxes and financial assistance from government borrowing (BHA, 2011, p. 15).

The economy is recognized as the sixth largest in the world, according to the Gross Domestic Product prices of 2012. The nation being a member of the G7 has been able to achieve economic expansions despite facing major setbacks during the 2008 global financial crisis. This has been achieved through implementation of austerity measures aimed at reducing global debts while facilitating long term economic recovery and growth. Thus, the country has been striving to lower the budget deficit from eleven percent to nearly one percent by 2015 although this can be revised to 2018. The economy encompassing England, Wales, Scotland, and Northern Ireland has offshore banking statuses. United Kingdom being part of the European Union has been enabled to be part of a single market ensuring free movement of products, services, people, and capital across member states (WET, 2013, p. 4).

It has however strived to ensure it maintains its individual economy by choosing to consistently use the Pound Sterling as the national currency instead of converting to the Euro. The economy is also sustained by a healthy supply of natural resources including iron and coal in the past and the manufacture of steel and automobile as well as aerospace equipments presently. The taxation groups in the country are unevenly distributed between fifteen and sixty four years old. This however has not reduced unemployment rates despite the country’s labor force being considered the twentieth largest in the world. The country’s economy is directed by agricultural activities. Thus, it is fueled by the philosophy that mechanization, efficiency, advanced technologies and modern farming activities can enhance economic growth and expansion in United Kingdom (BHA, 2011, p. 23).

4.2 Task 2

Analyze current government economic policy and its effect on business and services industries (focusing on a major UK hotel group e.g Hilton Hotel)

The United Kingdom economy also comprises of service industries such as hotels and restaurants, creative industries, tourism, and wholesale or retail trade among others. In 2013, the Blue Book Reports affirmed the hotel and restaurant industry played a key role in ensuring the economy accounted for an added gross value of over thirty six million pounds in 2011. This gross value was mainly attributed to activities being undertaken by major hotels and restaurants in the country including the Hilton Hotel. The current economic condition in the country is based on various policies undertaken to recover from financial recession. As a result, the country has adopted the strong policy of ensuring the economy recovers and expands to reduce deficits. OECD has predicted the economy will only recover and expand by creating job opportunities, underpinning growth from private consumption and investment and reduced inflation rates. These predictions affirm the government economic programs will shift counteracting the negative effects of inflation. High interest rates should however be retained as they support stronger growth in productivity (Dudovskiy, 2015, p. 1).

The Hilton Hotel has therefore strived to ensure it participates in the nation’s strategy to achieve economic recovery and expansion. As a result, it has been utilizing business approaches aimed at increasing and expanding the corporation’s activities. This will ensure the corporation continues to grow and expand, provide more employment jobs, and plays a key role in reducing inflation. These plans however have involved some financial borrowing. In order to avoid the high interest rates, the Hilton Hotel has had to rely on short and medium term loans. These are capable of bolstering economic growth within the organization enabling it to empower the government to undertake other measures and strategies such as enhanced consumer spending and corporate capital investment. This will play a vital role in achieving national economic growth and expansion both on short and long-term basis (BHA, 2011, p. 17).

4.3 Task 3

Discuss income, wealth, employment and occupational distribution in relation to the provision of business and services operations (consider who are the users of the Hospitality Industry’s’ services and who are the providers; who are the patrons and who are the workers)

The main users of the hospitality or service industry are mainly tourists and shoppers. The providers on the other hand are hotels and restaurants including the Hilton Hotel Group. Conversely, the patrons are investors, partners, and shareholders investing their wealth and power to ensure the hospitality industry remains relevant and influential to the country’s economy. Levels of income and capital in ensuring business operations and functions are effectively and efficiently undertaken in the service and hospitality industry are often high. This is because the industry faces constant changes due to factors such as advancing technologies and changing consumer needs and demands that require finances and time to be met and fulfilled. Wealthy investors and partners willing to commit their finances and assets towards ensuring the business operations and functions are consistent therefore have to be promised and guaranteed great returns. In order to achieve this, the business venture has to ensure adequate and skilled employees are hired to offer high quality and standardized products and services attracting and retaining consumers while achieving a competitive advantage (HN, 2015, p. 2).

The occupational distribution is mainly allied to the process of attracting and retaining consumers. The Hilton Hotel Group for example targets high-end consumers seeking to access and receive high quality products and services, as they do not face economic constraints. In order to achieve this, the business venture ensures the goals and objectives of the corporation are based on a national and international level. This attracts consumers from internal and external boundaries providing the business with economic strength to grow and expand. Consequently, the company’s tax contributions enhance the government’s ability to utilize the earnings towards addressing economic crises affecting the nation’s economy (HN, 2015, p. 2).

4.4 Task 4

Assess the demographic trends that influence the employment patterns in the hospitality industry. For example Hilton Hotel

The population growth rates in United Kingdom have been slowing for decades. This has led to decreased number of workers further leading to the number of work force leaving employment higher than that of entering. More so, the aging or retirement age of the workforce has continued to create a huge void that is still expected to grow larger in the future. The Hilton Hotel comprising of at least ten brands across the world provides employment opportunities to over three hundred and fourteen employees across ninety-one nations (Stewart & Wintour, 2015, p. 1).

The PESTEL analysis in United Kingdom however indicates political factors especially in Northern Ireland allied to acts of terror and insecurity threats have been impacting the economy adversely. Coupled with economic sanctions, the United Kingdom faces the possibility of exiting the European Union. The economic factors on the other hand are based on the national macroeconomic situation in United Kingdom. The extent of economic growth has not improved the growth of GBP against other currencies. This is mainly attributed to high rates of inflation. The social factors mainly refer to family patterns and shifting values among societies in the country. Coupled with the role played by social media, Hilton Hotel affirms social demographic factors are greatly changing and influencing the United Kingdom economic structure (Dudovskiy, 2015, p. 3).

Technological breakthroughs and advances especially within the service industry have increased integration of the internet across various aspects of life. For example, Hilton Hotel is enabled to rely on advanced technologies to meet and fulfill its hotel booking activities. Thus, they have played a positive role in improving economic recovery, growth, and expansion. Environmental factors are based on weather changes. In United Kingdom, the changing conditions have the potential to damage brands’ images mainly due to high rates of pollution. This further hinders seasonal catering business ventures to meet and fulfill their socioeconomic duties. Coupled with natural disasters, environmental factors have not favored economic growth and expansion. Lastly, the legal factors refer to changes in United Kingdom rules and regulations within the service industry. The consumer protection and immigration rules and regulations are considered stringent to the service industry. Based on this PESTEL analysis of the Hilton Hotel, it is viable to assert the United Kingdom economic recovery and expansion is greatly challenged by various demographic factors hindering development and increase of employment opportunities (Dudovskiy, 2015, p. 5).

4.5 Task 5

Analyze the social structures of people employed in a major UK hotel group. Hilton Hotel

Based on the PESTEL analysis undertaken in task four above, it can be asserted social structures with regards to family patterns, social media, and societal values plays a key role in influencing employment. The Hilton Hotel is recognized as an international brand. The United Kingdom brand is however acknowledged among the popular destinations in the world targeting tourists and shoppers. Social factors impacting on the Hilton Hotel include emerging consumer lifestyle trends, demographic variables, impacts from role models and celebrities, consumer decision making procedures, and population growth rates. They also influence the entire service industry in United Kingdom (HN, 2015, p. 1).

For example, family patterns, values, and sexual preferences have been influencing employability at the service industry while impacting business performance especially at the Hilton Hotel. This is because most corporations just like Hilton Hotel employ persons with family, personal, and professional values promoting the firm’s values, goals, and objectives. Thus, if employees neither meet nor fulfill the social factors influencing levels and opportunities of employment they are likely to fail (Stewart & Wintour, 2015, p. 1).

4.6 Task 6

Discuss the structures, operations and influences of local government on the Hilton Hotel Group in United Kingdom

The local government in United Kingdom operates as either a one or two-tier system. This refers to unitary authorities or county and district councils respectively. Local authorities in United Kingdom can be divided into five structures namely county, district, unitary, metropolitan, London boroughs, and town or parish councils. They are however required to provide a wide range of services such as waste management, education, social care, and trading standards among others with help from other organizations. They are therefore constantly restructured to enhance their administrative and financial roles and responsibilities. Currently, the local government is striving to achieve localism in order to shift power (OGL, 2014, p. 3).

The Hilton Hotel on the other hand has been steady in achieving its goals of passionately being hospitable with integrity as they lead a team of members in owning actions and decisions to operate through the sense of discipline coupled with urgency for an exceptional experience. Since the hotel comprises of stakeholders on a local, national, and international level, the group and local government has had to diversify cultural environments providing products and services in the service industry. Thus, the local government has been encouraging and motivating the Hilton Hotel Group to achieve its goals and objectives at a satisfactory level. This will guarantee Hilton Group shifts power from the owners to consumers with support from the local government seeking to empower communities, homes, and families in order to achieve a decentralized central government providing people with power and opportunities (OGL, 2014, p. 7).

5.0 Conclusion

It is evident the hospitality and service industry has played a key role in ensuring the United Kingdom economy continues to recover, grow, and expand. Evaluating operations and functions undertaken by the Hilton Hotel Group affirms the nation’s economy relies heavily on business returns from the industry. The country should however acknowledge there are various factors hindering it to achieve its goals of recovering from financial and economic recessions and crises in the past to achieve growth and expansion. For example, the nation’s population attributing to industrial growth and expansion has been changing and declining. Rates of unemployment are still high considered the economy is among the largest in the world. The following recommendations should therefore be adopted to ensure other sectors emulate the hospitality and service industry in playing a role to achieve economic recovery, growth, and expansion.

6.0 Recommendations

Foremost, all industrial sectors in the country should join the hospitality and service industry in working together with local governments in United Kingdom towards driving economic recovery, growth and expansion. They should all play part in realizing opportunities for thriving economies the country can rely on to advance its economic growth agenda firmly. This strategy should be enhanced by developing a strategy ensuring healthy competitive behaviors are maintained among the industrial sectors in order to constantly and consistently drive economic growth and expansion even in the future (RA, 2008, p. 2).

The process of job creation should be enhanced by contributions from social, economic, political, and environmental communities. This is because job creation leads to creation and expansion of wealth. Currently, United Kingdom relies on local authorities to create jobs and wealth with little and uncooperative assistance from the private sector or structure of the economy. Total direct employment that has fallen below five percent should therefore be revived by private and public sectors as well as all four hundred and six local authorities. Current economic climate ensures visiting economy gets involved in support of tourism activities. In United Kingdom, this should involve encouraging entrepreneurs, investors, and the private sector to create and expand job opportunities. Consequently, civic and business leaders will work together in supporting visiting economies to create powerful and wealthy places people can visit for pleasure and work (RA, 2008, p. 21).

According to the England hospitality sector mainly comprising of third tier local government, local authorities such as town and parish councils should fulfill their responsibilities in providing small local services. These services include providing residents with community centers, leisure parks, war memorials, and allotments. This will have an economic and social impact across various industrial sectors that will be encouraged and motivated to make contributions towards improving the quality and standards of local lives to achieve prosperity. For example, other sectors will join Hilton Hotel in ensuring the workforce entering and contributing towards economic recovery, growth, and expansion is provided with job opportunities. Local enterprise partnerships and investors should also be identified and encouraged as economic drivers across various areas in United Kingdom. This will increase demand for job opportunities that will be created and seized by a workforce skilled and dedicated towards making socioeconomic strides (RA, 2008, p. 25).

Consequently, the amount of taxes collected by the government will increase enabling the budget deficits to decline and activities aimed at addressing challenges affecting the nation’s economy to be resolved. Thus, the United Kingdom should acknowledge that, social, political, legal, and environmental factors play a crucial role in influencing economic powers and wealth. The main strategy should however be based on creation of jobs as this enhances amount of taxes collected reducing budget deficits and enabling the government to address and resolve other diverse economic issues. Consequently, all industrial sectors will take part in ensuring the nation’s economic conditions and structures continue to grow and expand evenly and consistently (Stewart & Wintour, 2015, p. 1).

7.0 References

British Hospitality Association (BHA) 2011, Hospitality Driving Local Economies. Report by the British Hospitality Association.

Dudovskiy, J 2015, Hilton Hotel PESTEL Analysis. Hilton Hotel Annual Report Worldwide Research Methodology.

Hospitality Net (HN) 2015, Top Ten Issues in the Hospitality Industry for 2007. International Society of Hospitality Consultants.

Open Government License (OGL) 2014, Understand how your Council Works. United Kingdom Local Councils and Services.

Redhill Academy (RA) 2008, United Kingdom Economy: Changes in the UK Economic Structure. The Redhill Academy Module Resource Contents.

Stewart, H & Wintour, P 2015, UK Employment Rate Hits Highest Level since Records Began. The Guardian.

Wholehouse, M 2014, UK has Fastest-Growing Economy, International Monetary Fund Says. The Telegraph.

World Economy Team (WET) 2013, United Kingdom Structure. Economy Watch Repor