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HOW LEISURE AND TOURISM

ORGANISATIONS OPERATE
AS A BUSINESS
GCSE Travel and Tourism
2.1.4
HOW LEISURE AND TOURISM ORGANISATIONS
OPERATE AS A BUSINESS
Date:
Objective: To identify the types of structures that
tourism businesses may use

Warm Up: 1. Give two examples of companies


that work in the travel industry.
2. Why is structure needed in
a business?
FUNCTIONAL AREAS TASK
Use the list of tasks to write them in the appropriate
functional area.
Customer Service
Human Resources
Sales/Marketing
Research and Development
Administration/IT Support
Production/Operations
Finance and Accounts
WHY HAVE A
STRUCTURE?
All businesses have to organise
what they do

A clear structure makes it easier to see


which part of the business does what

There are many ways


to structure a business
A THREE-TIER STRUCTURE WILL
CONSIST OF:
Managerial People who organise,
make decisions, and use resources to
accomplish company goals
Supervisory People who make sure
the managers goals are
accomplished by leading people
Operative Levels jobs that fill regular
positions in leisure and tourism and
complete assigned tasks
SCHOOL AS AN EXAMPLE
Mr. Green/
Managerial
The Governors

Supervisory Mr. Tanton

Mr.
Operative
McHale
IDENTIFY IF THE JOBS ARE SUPERVISORY,
MANAGERIAL, OR OPERATIVE. WRITE S, M, OR O.

1. An airline ticket sales person - O


2. Someone who is in charge of the waiting staff at a pub -S
3. Owner of an airline company - M
4. The vice president of a tourist attraction - M
5. Someone who runs a B and B - M
6. A cabin crew member of an expensive train line - O
7. A head chef in a major restaurant - S
8. The head of an organisation that owns stately homes - M
9. Tour guides - O
10. The head of a companys office in all of Europe M/S
BUSINESS STRUCTURE
Directions:
TASK
You need to organise a tourism
business structure plan. Choose a
career, facility, or service that you find
interesting in the leisure and tourism Managerial
industry.
You need to have TWO Managerial
roles and explain what those jobs
involve.
Supervisory
You need to have TWO Supervisory
positions and explain what each of
those people manage
You need to have SIX positions under
the managers at the operative level Operative
and explain what these people do.
Draw a diagram outlining your
structure
BUSINESS AS AN OPERATION
Date:

Objective: To analyse how an example business


operates

Warm Up: 1. What are some reasons businesses


fail?
2. In what ways could you improve a
business?
UNDERCOVER BOSS:
PARK RESORTS
Complete the following as you watch:
1. Create a list of jobs that the boss has to do.
2. Create a list of problems with the company.
3. What changes does the boss want to make and why?
4. What changes would you make to improve Park
Resorts?

Under Cover Boss Resorts


BUSINESS STRUCTURE
Date:

Objective: To examine different types of


business structures

Warm Up: 1. There are many different types


of structures of businesses. What could be
one possible type of business structure?

How could a business be organised?


BUSINESS STRUCTURE OF
LEGO
Chief Executive
CEO Officer, Chief
Financial Officer,
and Four
Executive Vice
Corporate Finance
Presidents

Markets Community,
Corporate Global Supply
and Education,
Center Chain
Products and Direct
BUSINESS STRUCTURE OF HP
(HEWLETT PACKARD)

Hewlett Packard

Imaging and Personal Enterprise HP Financial


HP Services
Printing Group Systems Group Systems Group Services
BUSINESS STRUCTURE OF
TESCO
Notice the
geographic
organisation
by area.
TYPES OF STRUCTURE
Function
Product/Activity
Area

Customer
Process
WAYS TO STRUCTURE A
BUSINESS
By function: arranging the business
according to what each section
or department does

By product or activity: organising


according to the different products made

By area: geographical or regional structure


WAYS TO STRUCTURE A
BUSINESS
By customer: where different customer
groups have different needs

By process: where products have to go


through stages as they are made

What are the advantages/disadvantages


of different types of business structure?
PROS AND CONS OF DIFFERENT
STRUCTURES
This depends on the business type, size and structure
used
Lets look at a functional structure:

Chief Executive

Board of Directors

Production Marketing Accounts Personnel IT


FUNCTIONAL STRUCTURE
Advantages Disadvantages
Specialisation each Closed
department focuses communication could
on its own work lead to lack
Accountability of focus
someone is responsible Departments can
for the section become resistant
Clarity know your to change
and others roles Coordination
may take too long
Gap between top and
bottom
AN EXAMPLE OF ORGANISATION
BY PRODUCT/ACTIVITY

Hewlett Packard

Imaging and Personal Enterprise HP Financial


HP Services
Printing Group Systems Group Systems Group Services
ORGANISATION BY
PRODUCT/ACTIVITY
Advantages Disadvantages
Clear focus on market Duplication of
segment helps meet functions (e.g.
customers needs different sales force for
Positive competition each division)
between divisions Negative effects of
Better control as each competition
division can act as Lack of central control
separate profit centre over each separate
division
ORGANISATION BY
AREA
Hewlett-Packards Headquarters Worldwide

Hewlett Packard

Americas Europe, Middle East, Africa Asia Pacific


Houston, Texas Geneva, Switzerland Hong Kong
ORGANISATION BY AREA
Advantages Disadvantages

Serve local needs Conflict between local


better and central
Positive competition management
More effective Duplication of
communication resources and
between firm and local functions
customers
Product development
Marketing
McDonald's Business Strategy
Human resources
FUNCTIONAL AREAS OF
A BUSINESS
OTHER ORGANISATIONAL
STRUCTURES
By Customer:
Similar effects to structuring
by product

By Process:
Similar to structuring by function
ORGANISATIONAL
STRUCTURES
TASK: You own a business that creates toys for children
around the world.
Create three different business structures for the same
toy company and draw them. Write a conclusion
about which structure you think would be the best and
why. Include advantages and disadvantages in your
conclusion.

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