Enterprise
It is possible to distinguish a further factor of production – enterprise. Enterprise comes from people who have the ides, are willing to take the risks and who bring together the other factors of production. Enterprise can be seen as a division of the factor of labour or it can be seen as a factor in its own right. In either case production could not take place without it. Entrepreneur is person who organizes other productive resources to make goods and services. Some economists regard entrepreneur as a specialist form of labour input. Others believe that he deserve recognition as a separate factor of production in his own right. The success and/or failure of a business often depend critically on the quality of entrepreneurship. An enterprise can be successful by utilising the land, labour and capital in a good way, because they are essential aspects that build a good company. The other thing is to having the skills required to be an entrepreneur such as: Risk taking, energy to work, creative thinker and good leadership qualities. Finally the most important thing of how can an enterprise be successful is by employing qualified and experienced employees, because they are the main power of the business. In the Canal Court hotel we can clearly see how the managers are enterprising. Managers are working on floor as ordinary staff member; it helps them to see themselves from the first hand and estimate what standard they are providing and what needs to be improved. They are democratic, because they always involved all members of staff into new ideas or events. However on the other hand they are also autocratic, because they have to be like that to efficiently manage the whole company and quickly making decision for their own. They also perfect in dealing with customers complaints and considering their views and opinions, because it helps them to think and making changes or improvement inside the hotel. Managers in the Canal Court have new ideas that are making their company better and friendlier for the customers for eg. coctail bar, extended bar menu.
Ownership
In economics, the private sector is that part of the economy which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state. By contrast, enterprises that are part of the state are part of the public sector; private, non-profit organizations are regarded as part of the voluntary sector. In related to the Canal Court Hotel which is the private sector, because had been open by two brothers as. There are different types of ownership in a private sector. The first one a partnership consists of a minimum of two people and a maximum of twenty who jointly own a business. On some occasions an additional partner may be brought in to contribute capital but not work in the business or to take any part in its organisation. Like the sole trader’s business, a partnership is easy to set up and requires only the agreement of the partners about how their business would be organised. Sole trader is the most common form of business ownership. They are found in every town and district throughout Northern Ireland, running small and medium-sized shops as well as providing services eg, hairdresser. It is a popular form of business organisation because sole traders are their own bosses and own the businesses themselves. The next type of ownership is a private limited company is called “private” because its shares cannot be bought by members of the public. Instead shares in a private limited company are held by a small group of people A Private limited company is called “private” because its shares cannot be bought by members of the public. Instead shares in a private limited company are held by a small group of people who are able to keep control of the business. A private limited company is attractive to shareholders because they retain control of the business while, at the same time, enjoying the benefits of limited liability. However a public limited company is the largest type of private sector organization, and must have a minimum capital of £50,000. A public limited company may have thousands of owners, although the number of shares owned by each person may be quite small. However the total capital in the company is very large. Finally co-operatives often are formed by workers because a business has failed and is closing down. The employees, in an effort to save jobs, form a co-operative to try to keep the business open. The profits or losses of the business are equally shared amongst all workers, and each one is jointly responsible for its success or failure. The Canal Court hotel is in the private sector because it is a construction business and service provider (hotel – accommodation). They are a Private Limited Company Mc Parland Bros Ltd. This type of ownership has advantages and disadvantages. The advantages are that because this business is on a larger scale, it is easier for it to borrow money and can benefit from economics scale. The amount of capital available is much greater than to sole traders and partnership and it has limited liability. The business has also a separate legal identity from that of its owners and may take legal action on its own behalf without involving the owners. There are a number of directors and managers in the business, so responsibility and workload are shared between them. In private limited company there are opportunities for specialization and division of labour and finally the business has continuity which means that if one shareholder dies the business is not affected. However private limited company has also some disadvantages. One of them is that shares are not available for wider sale, so expansion may be difficult. Shareholders are entitled to receive a share of the profit in the form of dividends. Some of the financial information of a private limited company must be available for inspection by members of the general public. This may give competitors valuable insight into the affairs of the business. Finally the process of forming the company is more involved that it is in business organizations such as sole traders and partnerships.
Organizational Structure
Every organisation made up of more than one person will need some form of organisational structure. An organisational chart shows the way in which the chain of command works within the organisation. The way in which a company is organised can be illustrated for a packaging company. The company will be owned by shareholders that choose directors to look after their interests. The directors then appoint managers to run the business on a day-to-day basis. In the company structure outlined above: The Managing Director has the major responsibility for running of the company, including setting company targets and keeping an eye on all departments.
The Distribution Manager is responsible for controlling the movement of goods in and out of the warehouse, supervising drivers and overseeing the transport of goods to and from the firm. The Production Manager is responsible for keeping a continuous supply of work flowing to all production staff and also for organising manpower to meet the customers' orders. The Sales Manager is responsible for making contact with customers and obtaining orders from those contacts. The Company Accountant controls all the financial dealings of the company and is responsible for producing management accounts and financial reports. Every business should have a well going organisational structure, because it is very important and beneficial for the company. One of the reason why it is so important is because it aware the employees of who their supervision or manager is, they should know who they will ask and report any problems at workplace. It let also employees as well as employers feel familiar with the route by which communication passes. It also highlights the composition of all the departments and lines of communication within the organisation and enables a business to meet its aims and objectives. The beneficial thing for the company is that it organisational structure helps to implement effective organisational skills and makes it easier to communicate. There are two main types of Organisational Structure: Tall (hierarchical) Structure and Flat Structure. The first one the person at the top of the pyramid (it is illustrated in this way) is the most powerful and authority comes from the top of the organisation. Decisions are made at the level while the workers on the bottom layer have little responsibility. Employees on each level are accountable to the level above them and are controlled by the people working at that level. The advantages of the hierarchical structures are that authority and responsibility and clearly defined so everyone understand where fits into it. There are also clearly defined responsibilities and promotion path. There are specialists managers and the hierarchical environment encourages the effective use of specialist managers and also employees are very loyal to their department within the organisation. However there are some disadvantages of this structure the organisation can be bureaucratic and respond slowly to changing customer needs and the market within which the organisation operates and communication across various sections can be poor especially horizontal communication. Departments can also make decisions which benefit them rather than the business as a whole. The advantages of flat structure are that it is a greater communication between managers and workers and also better a team spirit. There is also less bureaucracy and easier decision making. And the last one that fewer levels of management which includes benefits such as lawyer costs as managers are generally paid more than workers. However there are also some disadvantages like workers may have more than one manager so they might be quite unsure to whom they supposed to reports any problems or this works only in small organisations. The Canal Court Hotel had chosen hierarchical structure to well organise their business. It’s mean that the top person is the most important. In this structure the chain of command is long and has to pass through many levels of management. This is because all decision is made at the top level in a hierarchy and it takes time for those decisions to reach the lower levels. For the Canal Court Hotel the benefit of has a hierarchical structure are that it is very clear and everyone understand where fits into it. Areas of responsibility are clearly defined. It is clear management structure, because of the narrow span of control. Employees are closely monitored and they are aware of who their supervisor and managers and therefore who they reported to. They also have more opportunities for promotion so employees are motivated. Function for each layer will be clear. However it also has some disadvantages that are related to the Canal Court hotel. It might be too many layers between top and bottom. People on different levels don’t know each other. Employees’ freedom and responsibilities are restricted. Communication can be poor between different levels. Finally employees at the lower levels have little opportunity to use their initiatives.
Management
The management styles that the company adopted has main impact of the success of management in motivation employees to meet the business objectives they have set. There are three main management styles: autocratic, democratic and lassie-faire ranging in a wide spectrum. The style adopted by a manager will fall somewhere within this spectrum. The autocratic manager is the main decision maker. He or she sets objectives allocates tasks and expects the workforce to do exactly as required. This does normally make for happy or motivated workers. It also works well in tall organisational structure. The democratic manager allows the employees to take a part in decision making. They are consulted and made to feel part of the final decision-making process. This helps to motivate the workers and also ensures that they are well aware of the objectives of the business and will work hard to achieve them. At the lassie-faire style the manager allows the workers to get on with whatever has to be done and has little input in the way of direction or control. This can work well in a smaller team like flat business. In the Canal Court Hotel the management style is balanced between democratic and autocratic. It is very beneficial for the company to management in this way, because no one from this management style is in 100% perfect so they are trying to balanced and in some situation using different style. Autocratic style gives the managers of the Canal Court gives them law to make important decision without staff involvement it is important because for company as big as hotel it could more difficult and time taking to get involved staff in case of the decision has to made very quickly. However the democratic style let the managers of the Canal Court more motivated the staff as they are feeling important in the business when they can voice their own opinion and involved in some decision making.
Functional Areas of the business
There are many tasks every business needs to do if it is going to succeed. Each of these tasks is described as being a function of a business. The following is a brief introduction to each of these functions: Human Resources - ensures the business has the best staff for the job and that they are able to work effectively in a safe environment; Finance - will keep a record of all money coming in and going out of the business. They have responsibility for securing finances for future expansion and paying staff and suppliers; Administration and ICT support - ensure the smooth running of the business on a day-to-day basis. They have responsibility for clerical duties, cleaning, computer and software support, security and health and safety; Operations - have the take of producing the goods or service in the most efficient way. This is done by making best use of the business's staff, machinery, building and raw materials; Marketing and sales - will try and maximize the level of sales by carrying out market research and promoting the goods or service through a motivated sales team; Customer Service - will help the customer before and after a sale has been made by providing information, giving advice, providing credit facilities, delivering goods and providing after-sales support; Research and development - will help the business remain competitive by developing new goods and services and updating the existing ones; Use of ICT - ICT will be used in each of these functional
Role of Management
Managers have an important role in medium and large businesses because they are too large to be controlled by the one person. They have areas of responsibility depending on the structure of the organisation. Managers must forecast and plan the work of the department in order to achieve the business’s objectives. Organise the department’s resources to achieve the objectives. Manager must also command people below them in the hierarchy. They also co-ordinate the people and resources in their area of responsibility and finally control activities so they can check that objectives are being achieved. Managers are responsible for making the part of the business under their control work effectively. They clearly need to know what is going on and use their interpersonal skills to encourage people to work together. They are also an excellent source of information because they see the day-to-day workings of their section of the business. Their leadership skills often determine success in achieving objectives. The managers has a wide range of different functions of management the main are planning which involves the setting of objectives and making plans that will achieve those targets within set timescales. The role of managers is also to set up structures and procedures within the business which will enable the objectives to be achieved. Directing is another function of manager where the job is to co-ordinate the workers and direct what they are doing often throughout delegating tasks. The last one is the controlling where manager must control the activities that they are directing. This means that they must monitor and measure what is being achieved. Managers are highlighted in an Organisational Structure, because staff will feel comfortable when they know who is responsible for each duty and managers are also co-ordinate in various departments. There are different types of managers within an enterprising business. A managing director is someone who is responsible for the daily operations of a company or organization. Regional managers are employees who are granted jurisdiction and responsibility for specific actions that take place within a given geographical location. Area managers are responsible for the management and overall profitability of a group of stores. They promote the generation of sales and form an important link in the management communication chain, by leasing with store managers as well as with key departments at head-office. Functional managers, also known as line managers, can manage the performance reviews for a particular department or an entire organization. A General Manager has broad, overall responsibility for a business or organization. Whereas a manager may be responsible for one functional area, the General Manager is responsible for all areas. The primary responsibility of the assistant manager, as indicated in the title, is to aid the manager in completion of his duties. The specific duties can range greatly by industry. If the manager supervises production and employees while reporting to upper management, the assistant manager often works more closely with the line employees and customers.
Communication
Communication is the giving and receiving of information from one person (the sender) to another person (the receiver). Communication is very important in business. People in business have to communicate all the time. Good communication is important because of it business can survive, also receive and deliver important information as well as fulfil duties and requirements from the stakeholders, Inform, advice, sell and promote products or services. It is also important to overcome competition and research new and existing ideas. Communication may be either external or internal. External communication is between someone who works for the business and someone outside it. However internal communication is between people who work for the same business. However these people need not necessarily work in the same building or the same branch of the business. The purpose of both those communications is that stakeholders are have clear objectives and are informed about changes and developments in business. It is also leads to higher productivity and lower levels of employee turnover. The Canal Court Hotel is using a wide range of different methods of communication. The first one face-to-face is a very effective method since body language can be interpreted as well as what is actually said.
Marketing Application to CC Hotel
In the Canal Court Hotel the responsible people for marketing are Patrick Murtagh and Deborah Ferguson. Their main duties are marketing and promoting hotel in the way how they are caring out the task and customer satisfaction. To promote their hotel they advertising it in local newspapers in less busy time on the Canal Court’s Calendar, but also on the bigger time like Christmas or Valentine’s Day they put more effort to advertise their special events at this time in year. They also offer to the customers their special weeks and deals like for e.g. deals on meals at restaurant to encourage more people to try their restaurant’s menu. The next thing that makes promote the Canal Court Hotel is involvement in sponsorship in local events and fundraising, because they are supporting Newry City football team they puts their advert into the T-shirts. They also are organizing the charity matches between staff members or different hotels to raise money for charities in local community like for e.g. Newry Hospice. They promoting thing is also corporate image, because it makes Canal Court social responsible. The first unique market position of the Canal Court as a high class hotel is provide a high quality service which try to always satisfy their customers. There are some strategies that the hotel uses to maintain its market position. The first one is the total focused on their customers and they needs and wants to provide the best possible service. Deborah Ferguson has mentioned that they do everything to be perfect from bar and toilets up to restaurants and accommodation. The other strategy of the Canal Court Hotel is good location that helps them to stay in competitions which is very little, because there are no other 4 star hotels around Newry. Hotel is situated in centre of Newry between two capital cities Dublin and Belfast, its provide also easy access to local attractions like two the biggest shopping centre and local transport. All those things are made that the popularity of the Hotel had extremely increased.
Marketing Mix
The marketing mix is the combination of factors that affect a customer’s decision to buy. The price has to be right, the product has to be right, the product must be distributed to the right places and its has to be promoted in the right way. The factors in the marketing mix have to work together. Businesses may have to compromise on some elements – the budget for a product might not allow top dollar spending on all elements of the mix. The marketing mix puts the marketing strategy into practice.
Product
The products are whatever’s being sol like goods and service and it is the most important thing in the Marketing Mix. Marketing folk usually see the product as the most important ingredient of the marketing mix. A lousy product isn’t likely to meet the needs of customers, even if the price, distribution and promotion are great. Products give tangible benefits that can be measured. Products also give intangible benefits that can’t be measure like reputation or corporate image. The features of a product are important but so are things like reliability, customer service, money back guarantees and how easy it is to get hold of spare parts.
Price
Price is the part of the mix. Price determines the revenue that businesses get. Price is balance between being competitive and being profitable. Too high and people won’t buy. Too low and you won’t make enough profit. In a competitive market, customers have lots of choice, so price is an important factor. In a monopoly, there’s only seller in the market, and customers have no choice. A monopoly seller can charge high prices. The price must fit in with the other aspects of the marketing mix e.g. the quality and desirability of the product.
