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Advantages Of Operating Small Hotel Business In Britain Tourism Essay

Advantages Of Operating Small Hotel Business In Britain Tourism Essay

Published: 23rd March, 2015 Last Edited: 23rd March, 2015

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Princess Hotel runs as a sole proprietorship type of business where the owner is the manager and the controller of the business. In Britain most entrepreneurs start businesses as sole traders where they mange the business on their own and employ a few people to assist in the day to day running of the business (Swarbrooke, 1999). For the entrepreneur of Princess in London, being a sole trader is among the simplest ways to start a business. The processing of starting a hotel business in London is one of ht simplest ways to start a business since all one is required to get is the professional advice plunging into business.

According to the entrepreneur of Princess Hotel among the advantages of he gets by being a sole entrepreneur include, the business was easy to start since the entrepreneur does not require to consult other people, the registration requirements for sole business are also low together with statutory requirements, lower national insurance costs and the entrepreneur can use the profits for expanding the business.

The proprietor of Princess Hotel was interviewed using a sample of the following questions about his business operations as part of a fact finding mission on benefits and the problems he incurs.

Economic growth in Britain has been fueled by rapid expansion of small and medium enterprises, which have also contributed to an increase in employment rates within cities and other major towns (Baily and Kirkegaard, 2004). The small and medium business enterprises have also contributed significantly towards the global economy. In Britain small hospitality business are faced with challenges that include lack of capital, lack of access to information and lack of proper business management skills (Wood, and Brotherhood, 2008). Research has shown that many small and medium businesses enterprises play a considerable role in the economic development of many countries including the United Kingdom. Research has also portrayed that majority of owners of these small and medium businesses do no have the necessary management skills and knowledge to run the businesses. Lack of management expertise is among the factors that hinders the marketing in these small enterprises particularly in Britain (Gang, 2006). The British government doesn’t have enough resources to provide management systems and financial resources to support the small business enterprises.

In addition Britain’s, small and medium businesses enterprises also lack to availability of capital resources which are diverted to bigger and state controlled business. Extensive suspicion by both borrowers and lenders of the threats associated with private enterprises is a major cause of the slow growth in the hospitality business in United Kingdom. British official claim that banks are too conservative to loan money to small and medium business entrepreneurs in Britain. After the subprime crisis in Europe many banks United Kingdom prefer lending to big and state owned businesses leaving small entrepreneurs to raise their finances through assistance from close family members of from local authorities.

In addition, numerous small business entrepreneurs are not approved by the central government to be listed on the London Stock exchange which is under control by state owned firms. Undoubtedly, financing problem cannot be coped rapidly by foreign direct investment due to the complex nature of the investment conditions and the problem of business expansion.

Among the opportunities enjoyed by small hospitality business in Britain is molding the completion by offering new and mutual market opportunities, improved growth by prevailing over barriers to new entry in the market, shared and enhanced brand image, there is strengthened product line management ( Boella, and Goss-Turner, 2005). Hospitality business in Britain have been able to gain a number of advantages through consortium which include, new networking prospects, economies of scale, knowledge and allocation interconnections and educational training and support, a computerized hotel booking system, and gaining referral opportunities from consortium hotels outside Britain.

Other advantages of operating a small hotel business in Britain

With increasing importance of tourism as a source of revenue and employment, and a contributing factor in the balance of payments in several countries, has made the British government to focus on developing tourism as a tool for economic development. Tourism has been a source of income, forewing exchange and in providing employment for most countries including Britain. The building and preservation of tourist and travel amenities and establishment of accompanying services are important stimulants for economic development and growth especially for those countries whose natural resources are few like Britain (Jones, 2002).

The reason for the slow rate of advancement in the hospitality industry conditions of employment are considerable including a comprehensible unwillingness of many entrepreneurs and owners to be among the first to rise the prices of services provide in British. This is in place considering that Britain has been reported to be before now one of the most luxurious tourist destination. Another reason, is that the employees of the hotel industry is comprise of mostly people drawn from the less essential labor market who use the hospitality industry on short â€"term basis such as students or school leavers and who are willing to accept low payment since they are not the sole breadwinners. In addition the trade union in Britain tends to exert less influence in the hospitality sector and therefore there is no set minimum wage for hospitality sector workers. As a result of the poor wages, lack of trade union involvement and the high number of employees who come from the secondary labor market, the hospitality industry in Britain has remained with its own problems which include; high turn-overrate of the labor, poor service principles and institutionalized pilfering in many establishments (Kusluvan, 2003).

Economies of scale stem from technical, commercial, managerial, financial, marketing and risk-spreading economies of scale (Malhotra,1997). Princess Hotel owns a single hotel in Britain. The hotel has small kitchen and just only ten rooms. The entrepreneur decides to sell the small hotel and buy two bigger hotels with bigger rooms. In this case the entrepreneur can spread his overhead costs over high level of gains.

In a small hotel such as Princess Hotel the hotel production techniques are very fundamental. For instance, all the booking is done using a manual process using hands. Kitchen utensils are also washed by hand and also the washing of bed sheets is also done through the in the traditional method of front loading laundering machine. In addition, the staircase for hotel takes part of the hotel room together with the reception area.

When the entrepreneur of Princess Hotel purchased a larger hotel he was able to benefit from improved production techniques, computerized customer reservation system, proper hotel set-up and used of mechanized dish washing and use of a centralized laundering machine. In addition, by increasing the size of the hotel the entrepreneur of Princess Hotel was able to gain from more rooms with centralized stair case (Needham, 1999). In addition with, expansion of Princess Caterers the entrepreneur will b able to recruit more qualified staff such as receptionist, cleaners, porters and waiters, who are more specialized in the field and will enhance in meeting customer needs of Princess Hotel.

Managerial economies of scale

By expanding and purchasing larger hotels Princess Hotel will be capable of employing trained workforce as compared to when the small hotel hat can only employ secondary labor.

Financial economies of scale

Majority of business raise finances by bank loans or through overdrafts or selling shares to the public. A small hotel such as Princess Hotel can borrow money from a bank but at a higher interest. Form the entrepreneurs’ point of view a chain of hotels will have a better advantage in borrowing loan form a bank as compared to a small hotel. A chain of hotels such as Princess Hotel which borrows money in bulk is likely to be a good client to the bank and banks are likely to lend money to Princess Hotel at a lower interest rate.

Commercial economies of scale

Business economies of scale are associated with buying and selling. From the point of view the entrepreneur of Princess Hotel, a bigger hotel will be able to purchase its supplies in better terms as compared to a smaller hotel. For instance, the larger Princes Hotel, can manage to purchase 4000 eggs per week as compared to the smaller hotel which could only purchase 200 eggs per week. In addition, with larger business the entrepreneur will be capable of getting substantial discounts from suppliers who supply repeatedly ( Stockes, Wilson and Robb, 2010). In addition, the cost of transporting large quantities of supplies such as eggs, fruits will lees when compared to small volumes.

Marketing economies of scale

According to the proprietor of Princess Hotel, the unit cost for marketing the bigger Princess Hotel will be lower than for the smaller hotel. For instance the charges of doing marketing research, promotion and advertising can be spread over a larger number of customers. For a small hotel setting the cost of marketing are high and prohibitive and only minimum level of marketing can be accomplished.

Risk-spreading as economies of scale

Since the hotel business is seasonal and is easily affected by fluctuations. The proprietor of Princess Hotel by diversifying into other business such as offering casino services and meeting conferences can provide revenue even when sales from the Hotel are low. On the contrary, a smaller Hotel has fewer options in seasons of revenue fluctuations, such lowering accommodation prices, which in the end have negative effects on the business.

Among the diseconomies of scale the can affect the Hotel business include; in case the expansion of the hotel does not tally with the number of expected customers then the operating costs will be high. This is because the costs will be spread over a few numbers of customers. In addition, by expanding a Hotel business to many locations for a sole entrepreneur it would lead to inefficiencies in management and administration and may eventually lead to business closure.

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Essay on advantages of small family

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Essay advantages small family room

1. What is better big or small family? 2. Family 2+1.

1. Nowadays small families are the most popular but there are still some people who decide to have big family. Both kinds of families have good and bad sides. In large family there are always someone to play, talk or help. It’s also easier to solve a problem if many heads are thinking about this. If you have a lot of siblings it is more probably that somebody of them will have the same hobbies. On the other hand in large family, parents mustn’t spend enough time with each of their children. It’s also difficult for parents to control numerous ramping kids. In small family children gets more attention. Parents have less chores than in big family and they can spend more time with kids and they can go together to different places. It’s also easier to keep things well organized. Small families often have more money, because there are less costs for food, clothes and other things. I prefer living in small family because I don’t like when someone all time disturb me. Living in family with small number of people is more comfortable for me because I can watch on TV what I want. I like also spending my free time alone so this kind of family is much better in this situation.
2. Nowadays almost in the whole world parents decide to have only one child. It is more comfortable for parents wanting make occupational career but this situation isn’t always favorable for their child. Firstly when young person hasn’t siblings it gets bored and loneliness when parents are busy, because it hasn’t partner for game. It also can’t ask brother or sister for advice. In families with one kid all chores falls on one person. Another disadvantage is that parents often allow their child to do what he wants and they carry out all it’s wishes, so child are spoiled. Next drawback is that parents require their child will be the best in all fields so kid are under pressure and it’s life is very stressful. On the other hand being only child may have some advantages. Lonely person, without siblings must learn to cope with adversities himself so he is later resourceful. Only child hasn’t such problems as fighting against siblings for TV or computer. He also doesn’t have to share things with brothers and sisters. Only child’s parents have a lot of money because they don’t have to spend money on clothes. In conclusion there are some advantages of being only child, but I think that disadvantages are significantly worse.

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Batxillerat Collaborative Class Blog: Advantages and disadvantages of being a large family

Advantages and disadvantages of being a large family

Maybe almost everybody has asked this question to himself once in a life. If you have a small family, you wonder what it is like is having a large one. In contrast, if you have a large family, you wonder what it is like having a small one. In any case, there are advantages and disadvantages of being a large family.

On the one hand, having a large family could be difficult 'cause you have to share your parents’ attention with all your siblings, and this could be really difficult, especially when you are a toddler. And of course, it is most likely that you have to share your toys and stuff too. In addition, in a large family there are a lot of things to do at home, so that means that you have to do your chores on a regular basis.

Another disadvantage could be the space in the house and privacy. That could be a problem if you live in a not pretty big house or in a normal flat, as almost everybody in our city. In that case, you would have to share a room with one sibling at least, and sure there would be a lot of problems with the bathroom.

On the other hand, having a large family could be so cool and sure you could have a lot of fun. One of the clearest advantages is that you will always have someone to talk with. Besides, if you have a problem, you have a lot of siblings who can help you. You will always have someone who will take care of you, who will protect you.
Another advantage is that as you have more chores and responsibilities with other people, that make you more responsible and considered.

To sum up, having a large family has some disadvantages, but in my opinion, the advantages are more satisfactory, so this makes up for it.

PS: pic of cheaper by the dozen

The Best Benefits of Having a Big Family

Big or Small? Benefits of Having a Big Family

Catalina 6 months ago - in Family

Whether you grew up in a large family or your own family is big, there are many benefits of having a big family. I do agree there are some disadvantages too. Money and space are some of the major problems of large families. Luckily, those problems don’t prevent people from having large families. I’ve always believed that the bigger family, the more love it has. When you have five siblings or kids, you never think you are alone and no one loves you. When something happens, there’s always someone who is ready to support you anytime you need it. If you are currently having problems with your family and you wish you had a small family, here are a few reasons why a big family is better than a small one. I hope, these benefits will help you realize you are lucky to live in a large family.

1. You have many friends

If you have many siblings and cousins, chances are you have many friends. All families fight. In a small family, it’s hard to find someone that you can get along with so you feel lonely and desperate. When you have a big family, you always have someone that you can spend some quality time with. Plus, all your siblings and cousins have friends who may become your friends too.

2. You always have a support

No matter what happens in your life, there is always someone who can help you and support you. In a big family, children can be both selfish and unselfish. If your brother doesn’t care about you, your sister can risk her life to help you. If one of your children is selfish, there is always a child who appreciates you regardless of your character. Moreover, if you have lots of uncles and aunts, you have a huge support. Appreciate each member of your family, even if they don’t appreciate you. Having a big family is a blessing!

3. You can do any work faster

A big family can accomplish any household chore faster than a smaller one. I grew up in a large family and I remember how my parents divided responsibilities between my siblings. I was responsible for keeping my room clean, and planting and watering flowers. My sister was responsible for keeping our living room clean, my brother enjoyed cleaning our yard, and our little sister helped our mom in the kitchen. Our house was always clean and bright and we were not afraid of the word “cleaning.”

4. The holidays are more festive

What can be better than a big family around the big holiday table? It’s hard to keep in touch with every family member all year long (when you have a large family). The majority of people live busy lives and don’t have enough free time to call or text each family member they have. Thanksgiving dinner or Christmas dinner is always so special and festive that you look forward to this family event the whole year.

5. You mourn and celebrate together

Whether it’s a wedding or funeral, you always mourn and celebrate together. Big families tend to support each other when they hear about good or bad news. Speaking about news, news in a big family travels so fast that you don’t need to call each member of your family. Everyone will know about your happiness or grief in a matter of twenty minutes!

6. You will have the company in your old age

There are many older people who are trying to cope with loneliness or have to live in nursing homes. It’s sad but they don’t have another option. When you have a large family, you will definitely have someone that will care for you. That’s one of the biggest reasons to have at least three children.

Having a big family is a luxury these days. Most couples have one child or even don’t have any child. People are focused on their careers and money, forgetting the most important thing in life – a family. If you are lucky to have a large family, appreciate it. I know there are many problems a large family has to deal with, but you can cope with any problem faster if you stay together. Do you have a big family? Do you think a small family is better than a big one?