Doing Business in UK

 

Introduction

            United Kingdom, UK, will be a good location for a business in the hospitality industry specifically the hotel sector. The UK hospitality industry which includes hotels, restaurants, tourism, travel services, and gambling, employs about 2 million people and contributes around 4% of UK’s GDP, making the industry an important source of wealth and job across the United Kingdom. According to British Tourism Authority, there are over 22,000 hotels, motels, inns and guesthouses all over UK. The hotel sector in UK has distinct categories such as luxury, business, resort, townhouse, and budget properties each with own characteristics.

            

A large Irish hotel will have a good expansion opportunity in UK. Because of the high recognition of the people in the hotel industry, there will be no shortage in the workforce. Also, tourism is a significant industry in the country; in 1999 over 25 ½ million visitors came to the UK and this number is forecasted to grow every year which will give opportunity for the hotel to attract more potential customers. Moreover, advancements in technology in UK such as hotel facilities and the internet will help boosts profitability in the UK market.

Doing Business in UK

            As a business that originated from Ireland, the hotel will definitely undergo some changes as it opens a business in UK but will not have a herd time adapting to the business environment and culture in UK. However, since UK and Ireland are just neighboring countries with Northern Ireland a part of UK, the business culture, lifestyle, and habits of the people in Ireland are not very different from the people of UK aside from the fact that UK and Ireland are both European country. UK’s basic cultural, ethical and business value and business values is important to any organization, especially in a business service like a hotel, in conducting business.

            A hotel business may include the food and beverage business, services and accommodations, resort, entertainment and gaming which are attractive to the UK market aside from the attractiveness to tourists of the places in UK such as London and Edinburgh as well as famous destinations in UK like the Buckingham Palace, Stonehenge and Windsor Castle. Also, there are many international companies and businesses in UK so business travelers are likely to be part of the market of a hotel industry.

People of UK are renowned for their politeness and courtesy; they are also traditionally reserved and avoid display of emotions. In UK, punctuality is very essential and they strictly follow established rules and practices, thus decision-making is a slow and systematic process. While in Ireland, employees should be informed first of how their tardiness can harm the organization, before they become punctual.

Most UK companies have relatively flat organizational structure and the principal decision-making unit is the board of directors while in Ireland, there is a lack of bureaucratic structure. Teamwork is very important but the feeling of individual accountability for implementation and error exists. The bosses in UK take the role of a coach, supportive and courageous to his subordinates. Partnerships and unincorporated bodies type of companies from overseas can not register in UK; the country only allows foreign investors with company structures such as limited by shares, limited by guarantee, private unlimited company and public limited company.

Unemployment rate in UK has increased by 0.3 % during the last quarter of 2005, which means that if a company like a hotel will settle in UK, it will demand for labor and will provide job opportunities to the people of UK.

In UK, an employer has responsibilities to employees like stakeholder pension provision, trade union recognition, data protection, health and safety provision, minimum ret breaks and rest periods. All businesses in UK comply with working time limits of 48 hours a week providing a minimum rest break of 20 minutes per six hours. Since a hotel usually employs working students 16 to 18 years old, this age bracket must only work 40 hours with a minimum rest break of 30 minutes every 4.5 hours. In Ireland, the same rules regarding working hours apply with Ireland’s Protection of Young Persons Act 1996. Majority of employees are not allowed to work more than the limited working time set by the UK law. Moreover, UK employees must be paid at least the national minimum wage. The minimum wage for adults 22 years or older is £5.05 per hour while young workers 16 to 17 years old are paid £3.00 per hour. Development rate of £4.25 per hour is applied to workers 18-21 years old and to new employees during their first six months at work.

Employees in UK may work permanent full-time, part-time or contractual. Employment contract can be verbal or written but it is advisable to make the contract written which includes the terms and conditions, job description and staff rules.

            UK is a known developed country with good transportation infrastructure important to a hotel business. UK has developed roads that provide easy access to major cities within UK and in other parts of Europe. However, when employees will move from Ireland to UK, they will experience a higher cost of living and more of a social structure in UK than in Ireland.

Recommendation

When investing in a country, investors see to it that the country where they will expand their business has good transportation, distribution system and infrastructures, factors which are important in doing business to provide the business ease of transaction to customers and suppliers, communication reliability and other facilities. It is also needed to look on some personal factors that are relevant to attract and retain employees and professional workers.

In UK, a hotel business would be likely to succeed due to UK’s attractive market and having met the factors necessary for the expansion of a hotel business. UK had met the factors for labor, infrastructure and access to market. However, a hotel from Ireland should expect to spend project costs and living expenses in UK a little higher than what they spent back in Ireland.

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