Business Environment of NHS and IHG

INTRODUCTION

This study is based on business environment of UK with special context to NHS. It explains the concept of purpose of various organizations- objectives, mission, vision and NHS vision and purposes. The study also discusses how NHS meets its stakeholder’s expectation, social and environmental responsibilities of NHS, IHG’s mission, vision and purpose have been comparatively studied and it also indicated how IHG is impacted by the stakeholder’s and how it is full filling their expectation as compared to NHS, the market forces and global market impact have also been explored with comparison to NHS and economic system of UK, impact of fiscal and monetary policy, competition policy of UK, market structure, market forces and NHS responses towards it, cultural diversity and organizational behavior, Significance of international trade for UK business organization, impact of global factors on UK business organizations, impact of European Union (EU) laws on business organization of UK.

COMPANY PROFILE

NHS encourages patient as well as public participation towards NHS, treating them courteously as well as position their interests first. The aim of NHS England is to get better outcome in health improvement for the people in England. It will develop future strategy for primary care (NHS England, 2015).

 1: PURPOSE OF DIFFERENT TYPES OF ORGANIZATIONS

 Objectives

According to Morphew & Hartley (2006) organizational objectives may be of several character. Even key objectives remain multiple by nature. Therefore, it is necessary for an organization to set objectives towards many areas. But, whatever objectives are there must fulfill three criteria: (1) it should be constant with the management values of an organization. (2) It should pinpoint such organizational strengths and weaknesses. (3) It should tackle forces from external environmental. From this standpoint organization would establish its objectives towards many areas. For instance, the focus has been given by Peter Drucker area’s that an organization should focus like its objectives. They are innovation, market standing, physical as well as financial resources, productivity, profitability, performance and development, worker attitude and performance, as well as public responsibility.

 Mission

The concept of mission could be considered earlier as scope of business activities of an organization pursues. Such meaning of mission could gradually be extended in representing a concept which embodies purpose of existence of an organization. It defined mission like a vital purpose of an organization, regarding specifically why this is in existence, such as the nature of businesses of it and consumers it wants to serve as well as satisfy. Mission remains reason or purpose of existence of an organization (Morphew & Hartley, 2006).

 Vision

According to Forbes and Seena (2006) a company’s vision is somewhat an everlasting statement expressed by a CEO of any company or by the Managing Director, Chairman, President etc. The drive of a vision statement remains towards (Forbes and Seena, 2006):

a.         Communicating with organizational people as well as to them those are linked or concerned with the organization regarding its very presence in terms of corporate purpose, competitive leadership and business scope.

b.         Casting an outline which would lead towards developing interrelationships between a company and its stakeholders such as shareholders, employees, suppliers, customers as well as several communities which might be indirectly or directly engaged with such firm.

c.         Defining broad objective about the firm’s performance and its progress in several fields essential towards such firm.

Vision remains a subject that provides an emphasized outlook of a company. This is a combining statement as well as a vital challenge for every different organizational units which might be busy in pursuing their individual objectives. This comprises a sense of attainable principles as well as remains an origin of inspiration to perform day to day activities. This motivates an organization’s people to behave through such a manner that would be compatible with corporate ethics as well as values (Forbes and Seena, 2006).

Mission, Vision and Purpose of NHS and IHG

NHS

Mission

To give high quality treatment towards future generation.

Vision

According to NHS England (2015a) when it comes to vision of NHS, everyone has a greater control of quality health and care services which are empathetic, inclusive as well as continuously improving.

Purpose

NHS create culture as well as conditions towards health as well as care services as well as people to deliver a utmost standard of care as well as guarantee that valuable public resources remain effectively useful to obtain the best result for individuals, society and community presently as well as for coming future generations (NHS England, 2015a).

IHG

Mission

Compared to the other organization, the mission of IHG is to engage young owners as well as operators through combined strategies, initiatives and programs of IHG and IHG Owners Association, strengthening the existing competitive advantage in the industry. By means of emphasized efforts, such Emerging Leaders Council would offer valuable understanding towards key decisions that are taken by the IHG community as well as makes effort to deliver training, techniques and organized events which may play an important role to develop young owners as well as operators (Owners, 2012).

Vision

The Emerging Leaders Council remains an organization consisting members of IHG Owners Association as well as IHG corporate communities which gives a vehicle towards young owners, operators as well as brand team members for developing their network with other owners, skills, as well as offer younger generational perspective as well as input towards critical decisions to support improved owner return on investments as well as attaining objective of IHG-“Great Hotels Guests Love” (Owners, 2012).

Purpose

The purpose of IHG concentrates on three main objectives (Owners, 2012):

Leadership Development – comparatively IHG’s Emerging Leaders Council remains an approach towards IHG Owners Association as well as IHG to address systematically activation, engagement as well as nurturing younger members which represent the next generation of company as well as association leadership as well as would be attained by:

• Giving opportunities to affiliated young owners as well as operators to obtain skills, training and knowledge that require to be for effective hoteliers
• Creating future leaders throughout IHG Owners Association community, promising that every Owners Association Chairman as well as committee chair remains “better than the last”
• Partnering with seasoned owners as well as operators with the members of Emerging Leaders Council in creating a more effective process of mentoring (Owners, 2012)

Stakeholders’ Impact and Corporate Social Responsibility Adopted By IHG

Understanding Stakeholder’s Impact

IHG’s stakeholders are engaged to obtain insight about key impact of stakeholders as well as these are pertinent to the company. The company analyzed such issues or impacts of stakeholders stated mattered to them as well as together with individual business understanding, compared to the other organization it conducts a materiality assessment in prioritizing areas acknowledged as getting such highest impact towards stakeholders as well as the business. Such issues could be taken as the very important or material, generate focus towards CR strategy as well as approach. The company continues using stakeholder feedback in developing stakeholder engagement programme as depicted below in key issues matrix (IHG, 2015a).

Figure: Stakeholder’s Impact

Source: IHG (2015a)

The company gives attention towards activities which gives IHG a chance to carry on right thing as well as better manage impacts when building shared value for the owners, the local community and the environment. To assist the company finding as well as tackling such priorities that IHG engages with their stakeholders. The current priorities remain:

• energy efficiency
• carbon costs/opportunities
• climate change
• availability of skilled staff
• water efficiency (especially in areas of water scarcity)
• local community resilience and Disaster relief
• employability and hospitality skills development

Compared to NHS, at IHG, the concept of acting responsibly remains fundamental in everything it does. This denotes conducting the right things through right way as well as considering long term business through a manner by which it is mutually beneficial towards IHG, its stakeholders as well as society as well as protect the company’s brands. In this purpose, the company consider CR like a strategic issue in business, thinking that this only creates sense when this aligns to the purpose making Great Hotels Guests Love.

MEETING STAKEHOLDERS’ EXPECTATION BY NHS

Hertfordshire Community NHS Trust (HCT) could be cited as it was created during 2010, as a division of national parting of provider establishments from Primary Care Trusts.  The vision of HCT remains becoming an effective Community Foundation Trust, specially to remain the best organization in community health care of England, giving high quality care towards homes of the patients as well as the community, delivering dedicated as well as empowered staffs and thus fulfilling expectations of stakeholders of this segment (NHS, 2013).

Stakeholder Analysis

According to NHS (2013) a power or interest matrix may be applied towards evaluating expectation as well as impact of specific stakeholders through conducting an assessment against such questions below: – • How every stakeholder group is interested in the decision of the organization? • What power and impact may be exercised by them upon those decisions?

 

Figure 2: Stakeholder’s Management

Source: NHS (2013)

 NHS (2013) has indicated that using this analysis of matrix has been carried out for HCT. This is  acknowledged that within entire stakeholder groups ‘sub groups’ are there, for instance, Hertfordshire Directors of NHS  remain a major group within PCT having power as well as interest (group A) such as commissioning team, but other groups like information team for instance have lesser direct effect upon HCT with context of their influence and power. Towards the purpose of such strategy like stakeholder group would review towards dominant facet of such grouping, though this is acknowledged that ‘sub groups’ might fall through various groupings. This is expected that once HCT gets more mature towards its approach in managing stakeholder this would additionally refine such analysis for allowing better targeting of such strategies.

(A) Key Players

Significant stakeholders are there– they are having high power as well as high interest towards HCT as well as its activities. These stakeholders require involving towards every appropriate developments as well as might have a considerable effect in over HCT’s future. The very crucial relationship towards HCT entirely remains its relationships towards GP consortia (as well as GP group’s accountable officers) those would be the key commissioning groups in the future towards community health services. For HCT other major players comprises- Commissioners o PBC Groups, specialist commissioners (Neuro), Local Officers those are full time and belong to  Recognized Unions – representative groups of patients- HCT employees (i.e. East of England SHA), GP’s,  Local Acute Trusts etc. (NHS, 2013).

(B)  Keep Satisfied

According to NHS (2013) such relationship with stakeholders towards group B might be tough. Towards such group, regional representative or legislative bodies are generally found. Such people generally behaved inactively, however it may use a vast effect on such organization. This is thus required analyzing possible intentions as well as responses of such groups towards every major developments as well as involving them as per their interests. MPs,  Health Scrutiny Committee, Interest Groups,  CFT members, Local Strategic Partnerships, Local media,  Hertfordshire Health as well as Well Being Board, Professional bodies.

(C) Minimal Effort

As depicted in Figure Stakeholders belong to group D are having less interest towards corporate plans of HCT or power towards using much influence. This is thus suitable to keep such groups informed, however, not devote very much effort towards them (NHS, 2013).

• Police
• Housing
• National media

 RESPONSIBILITIES OF NHS

Social & Environmental Responsibility

When it comes to the context of social and environmental responsibility NHS buildings consumes more than £410 million value of energy as well as generate 3.7 million tonnes of CO2 each year. Energy usage contribute towards 22 percent of the overall NHS carbon footprint as well as gives several opportunities to save and efficiency, letting such savings to remain directly reinvested towards additional reductions with context to carbon emissions as well as improved patient care (RUH, 2010).

In England NHS spends £20 billion annually towards goods as well as services. Emissions through such consists the major contribution towards NHS carbon footprint adding more than 11 million tonnes of CO2 annually: almost 60 percent of the overall NHS carbon footprint. Like a responsible organization, NHS require taking each opportunity towards managing their procurement proficiently, thus minimizing wastage as well as carbon from the beginning. Sustainable procurement remains a dynamic consideration towards the hospital since it creates social, economic as well as environmental sense.

According to RUH (2010) for ensuring procurement policy it reflects the organization’s desire towards lowering carbon footprint, it needs to be considered the approach towards commissioning, buying and sourcing. It comprises if such product must be bought during the first place, such level of application, the very appropriate levels of stock and revising if an item may be reused or recycled before ordering new articles.

 2: NATURE OF THE NATIONAL ENVIRONMENT

 ECONOMIC SYSTEM OF UK

According to Economy Watch (2013), presently UK remains the 6^th largest economy of the world during 2012 as per GDP (current prices) as well as the 8^th biggest in the world as per GDP (PPP). UK has been a member of the G7 (presently growing towards the G8 as well as G20), the OECD (Organization for Economic Cooperation and Development) and the EU.

Though the economy of UK confronted additional major obstacle at the time of global financial crisis in 2008, the UK government could implement severity measures for lowering its global debt and facilitate towards long-term growth in the economy. Such plan looks towards reducing budget deficit of London from more than 11 percent of GDP during 2010 to closely 1 percent within 2015. But it has subsequently been revised by the government for 2018 (Economy Watch, 2013).

According to Economy Watch (2013) UK’s economy currently comprises its home countries – England, Wales, Scotland as well as Northern Ireland.  The Channel Isles and The Isle of Man are too measured to remain a segment of the British Isles however are having offshore banking statuses. Like a member of EU, such UK remains segment of a single market which safeguards such free movement of people, services, goods as well as capital within such member states. However, the UK still preserves its individual economy as well as has selected to carry on use of the Pound Sterling as country’s national currency instead of converting towards Euro.

How Mixed Economy May Effectively Allocate Resource for NHS and IHG

NHS has been facing funding gap, when demand can continue to grow and budget is frozen (till £30 billion) by 2021 as indicated, however King fund could be a timely contribution to utilize resources and determining the way to address financial challenge.  The future of the organization will remain as mixed economy wherein govt. will be clearly unresponsive be it provision towards services in private of public sector. The vital difference in the hospital finance may be underwritten through a manner that could be unimaginable. But, relaxing restrictions upon borrowing powers of trusts that has been apparent to direct inevitably towards commercialized services, as trusts may be thinking basically in context of the way resource repayment (loans). It would direct towards rivalry between trusts in capturing market share (Pearce, 2014).

When it comes to IHG, economic opportunity towards developed countries like UK could be a paradox. However, IHG could enhance its customer experience by combining commercial practice and local investment. Also, getting rich experience as well as comparative advantage of these 2 worldwide resources of two leading hospitality and finance, the company could significantly provide free hotel stay as well as wide range of service alternatives to the frequent travelers (China– Britain Business Council, 2011).

IMPACT OF FISCAL AND MONETARY POLICY

As per fiscal and monetary policy of UK, the Corporate Tax Roadmap during 2010 explained the way UK plan towards making UK corporate tax policy further competitive. From that time, reforms could be included (Gov. UK (2013) :

• Lowering the key rate of corporation tax in 2010 from 28% to 23% during 2013 – by 2015 it was projected to be 20%, such joint lowest level towards G20
• Reducing corporation tax rate for companies having low profits from 21% to 20%
• Altering the system of the UK taxes overseas profits for emphasizing upon taxing profits through UK activities
• Starting a new ‘Patent Box’ that denotes a 10 % of tax rate would be applied to profits through development as well as exploitation of patents
• improvements towards the design as well as generosity of research and development relief schemes of UK, giving more support towards innovative investment of both large  and small companies
• Giving a tax relief of £100 million to creative as well as high-tech industries
• Doubling such investment amount businesses may obtain a 100% straight tax relief  called ‘annual investment allowance’ from the month of April 2014 to December 2015 for assisting small as well as medium sized businesses (Gov. UK, 2013).

 Impact of UK Taxation on NHS

The Taxation impact on NHS could face an increase in 10% in the amount that they pay towards taxes for funding Gordon Brown’s revamp. The chancellor requires raising £10billion yearly for helping rasping health service of the Britain and bring to European standards. A signal till date have been to increased taxes. It is believed by the experts that this is improbable that Labour’s pledge to keep rates of income tax untouched. Rather, it is expected that National Insurance as well as probably VAT needs to increase revenues required. Funding towards such health service at European standard might indicate towards an additional £450 in taxes in Britain’s every household. It is seen that National Insurance is a favored tool to raise big revenues since this is vastly linked with the public attention with the NHS – although there is no direct connection (Brummer and Hughes, 2015).

Tax and Exchange Rate Impact on IHG

According to Barrett (2014) the impact of Tax as well as exchange rate on IHG can be seen that the company has aided 29 percent towards corporate in UK, which is higher than the average. Apart from that the recent currency exchange movements, disposals as well as damages receipts could contribute towards a decline on 18.4 percent in their pretax profit ($377m) compared to previous year. The overall decline in revenue was 3 percent ($908m) and it impacted to the operating profit also to go down. During early trading in London shares of IHG fell to 2.25 percent (£23.12).

 IMPACT OF COMPETITION POLICY

Economic regulation in UK has intended towards promoting effective competition in which it is possible as well as to give a proxy towards competition through a protection of interests of the consumers towards its heart, in which this is not significant to introduce competition. Such regulation has characteristically topped such prices which dominant companies may charge towards promoting fairness and efficiency, whereas giving them a return upon their assets as well as investments. To do so, such regulators have provided noteworthy advantages to customers (BIS, 2011).

According to Chisholm (2015) in this year, the Competition as well as Markets Authority (CMA) could turn to be completely operational towards its role since lead of UK’s competition and consumer authority. Such new body could be the outcome of a merger between few function of the Office of Fair Trading (OFT) as well as Competition Commission (CC) like setting out towards Enterprise as well as Regulatory Reform Act (2013).

However, the creation could be far more compared to a merger. Beside such organizational reform could go for several adjustments towards powers as well as duties of new body. It comprised (Chisholm, 2015):

• Stricter timetables towards various segments of the competition process;
• stronger investigation power as well as gathering information towards competition circumstances;
• a power towards emphasizing a market investigation (Phase II) towards a specific feature covering various markets;
• imposing stronger powers towards interim measures in case of mergers as well as markets, includes for mergers, better ‘hold separate’ powers as well as powers towards undoing past integration when appropriate as well as
• Elimination of the dishonesty need towards criminal cartel offence, however with new exclusions as well as defences permitted.

Such reforms show an important enhancement towards UK competition system that would allow further effective competition enforcement towards consumer’s benefits, businesses as well as the economy (Chisholm, 2015).

 3: MARKET ENVIRONMENT

 3.1 MARKET STRUCTURE

Markets vs. Monopoly: Health Care Market

According to Civitas (2009) health care, because of its high costs as well as centrality towards humankind which is generally considered ‘different’ as well as the best left outside such markets domain. However, this blanket opposition overlooks effective reasons towards not dismissing such value markets that might bring (Civitas, 2009):

i.          Efficiency. Towards a market environment consumers may show their preferences towards various products as well as services through exercising choice. It both creates highly specific information regarding their preferences, consequently providers are encouraged to deliver services that people demand (allocative efficiency) as well as gives incentives towards providers for remaining an efficient as much as possible to weaken competitors (technical efficiency).

ii.         Customer service and innovation. There is always an opportunity in the market towards people for coming forward through new ideas for fulfilling an unmet requirement i.e. a powerful incentive towards innovate, experiment as well as emphasize directly upon service users.

iii.        Resiliency. It is a major condemnation of government action concerning public policy is something that this has followed ‘utopian social engineering’ causing towards a wrong decision being sensed hard as well as universally. In markets, in which several participants are there, it will be significant when all created such similar mistakes (Civitas, 2009).

iv.        Voluntary co-operation. Markets create a segment of a scope which is dependent on voluntary co-operation, in which decisions of businesses, researchers and individuals are not enforced upon anybody else. It differences with monopoly in which few alternative options are there (Civitas, 2009).

v.         Equity. In case of centrally-planned systems in which no formal choice is there, middle as well as upper class consumers typically remains better towards generating choices as well as negotiating a better transaction. Through an appropriate redistribution of resources, markets provide each one such opportunity (Civitas, 2009).

Market-driven Health Care

The vital challenge towards policymakers in case of health care, it is the best outlined lesser as a choice between markets as well as alternatives; more with regard to the optimal balance between them. Markets may provide actual benefits, however only through an environment which is both committed towards allowing them work; as well as regulated carefully for correcting market failure as well as sustain certain collective selections (Civitas, 2009).

How Market Structure can Impact Pricing Decision of NHS AND IHG

NHS: Traditionally microeconomic literature depicts that competition may lead towards very efficient outcomes in welfare. But, presently it can be noted that possible for price as well as quality competition could give a damaging impact towards quality in the markets (healthcare), when hospitals (like NHS) are having freedom towards setting quality of the service delivery and it further impacts on pricing decision. Ultimately, such simultaneous price as well as quality competition outcome can be relied on whether people remain correspondingly sensitive towards both quality and price which in turns impact pricing decision and price control in UK (Cooper et al., 2009).

IHG: In market structure, when there is a perfect competition, IHG has no option rather to go for charging its guest the market price as the monopoly rate. Such companies are price takers towards market structure as well as should charge similarly like everyone does. In every other market structures, travel companies have been controlling over their pricing decisions. IHG has been giving attention towards competitors’ pricing decisions, however it actually need not to go for monopolistic competition. Thus, market structure impacts pricing decisions of the firm, however organizations such as IHG can never get free towards setting their individual prices when they prefer maximizing profits (Hardison, 2015).

 3.2 MARKET FORCES

How demand and supply elasticity and consumer perception can impact on cost control of NHS

Though the National Health System gives worldwide access towards health care facilities, a substantial share in population select several options in existing private health care. A clarification towards demand and supply of facilities in private health insurance market, could depend upon public apprehensions about any quality related gap between the NHS as well as private health care. Since price elasticity increase in the age group of 60 years old which begins lowering. People living towards non-urban zones as well as those places which can perceive a good quality system, higher price can be seen in NHS care (Costa and García, 2015).

How demand and supply elasticity and consumer perception can impact on cost control of IHG

The consumer perception towards room rates as well as levels of occupancy in IHG has been unpleasantly impacted through events which lower international or domestic demand of travel due to real or threatened travel-related industrial action and it increased the efforts of cost control towards fuel as well as transportation as well as natural disasters management. The reduction in demand for worldwide travel as well as local factors impacting IHG on its cost. Demand towards hotel rooms decreased and impacted operations as well as financial results of IHG (IHG (2008).

3.3 CULTURAL DIVERSITY AND ORGANIZATIONAL BEHAVIOR

Significance of Comparative Advantage and Economic Growth at NHS          

The comparative advantage of NHS in UK was to unlock benefits of the patient through new genomic revolution arises through unique combination towards a large as well as varied population, having worldwide access towards health care, world-class medicine as well as science funding system at NHS showed cutting-edge 100,000 Genomes Project.  Unfortunately, this don’t denote that NHS is secured financially- a £2 billion shortfall appears during 2015 as well as NHS England has been struggling constantly to execute £20 billion towards savings. Certain significances towards serious circumstances do not praise the English model that does eviler on severe cancer treatment compared to Canada, Sweden and Australia as indicated by King’s Fund- which is a health-care think-tank located in London (NHS England, 2015).”

Significance of Comparative Advantage and Economic Growth at IHG

The significant comparative advantage of IHG has been building a profitable scale that shows favorable environment as well as opportunities for growth in different markets as well as UK through branded scale player and high capacity utilization, economies of scale through frequent travelers as major competitive gain (IHG, 2010).

 4: SIGNIFICANCE OF GLOBAL FACTORS

 4.1 SIGNIFICANCE OF INTERNATIONAL TRADE FOR UK BUSINESS ORGANIZATION

According to Dudovskiy (2013) International trade remains an important aspect, which comprises exchange of product, capital, and services across borders. Benefits of international trade comprises better utilization of resources, import of products which may not be manufactured locally, and growing range of choices to customers. But, international trade can be linked to disadvantages and a loss of local jobs as well as higher level of dependency upon foreign markets.

Dudovskiy (2013) has stated that significance of international trade in case of UK business organizations may be described through denoting such notion of comparative advantage. According to such understanding trade between two nations may be developed through a mutually beneficial way, when every country has comparative advantage towards manufacturing products that need to be traded.

 4.2 IMPACT OF GLOBAL FACTORS ON UK BUSINESS ORGANIZATIONS

Political

Governments in UK might be affected to change their rules and regulations that may impact the business UK organizations. For example, since 21st century, the UK is turning to be more emphasized on corporate compliance.  It was a response towards social environment which called towards such change for making public organizations further accountable (Pondent, 2015).

 Economic factors

Such aspects include shifts in global economy. A growth in living standards will finally indicate a rise in demand towards products thus, giving more opportunities towards businesses for making profits. Fluctuations are observed by an economy in economic activities. It will indicate that in context to a rise towards economic activity such demand of product would grow and hereafter such price would increase. With context to lowering the demand the prices would move down. Business strategies might be developed considering such fluctuations. Other economic changes will impact business comprise changes towards interest rate, the rate of inflation and wage rates. With context to low interest rates as well as rise in demand business would be encouraged towards expanding as well as take risks. Thus, business strategies would have room towards such variations.

Tariff Liberalization

UK gives supports and facilitate trade measures, estimating such trade friction outcomes towards a de facto tariff of 7 to 10% upon international trade. Such United Kingdom helps in reducing tariff levels throughout a comprehensive range of segments, include many products as well as services. This looks for elimination of nuisance tariffs (usually taken tariffs of 2 percent or lower) as well as tariff peaks; this too favors compulsory tariffs at applicable rates. Such UK apprehends that developing countries sense that they will not benefit considerably through Uruguay Round Agreements as well as offers duty-free market access towards Least Developed Countries as well as better access commitments towards all different developing countries.

Social

Environment : According to CID Harvard, (2004), this looks for better harmonization between countries towards easing movement of products throughout the borders. Such United Kingdom will prefer a stronger confirmation about association of WTO as well as other international organizations towards work led through International Labor Organization (ILO) towards improving essential labor standards. But, this welcomes such agreement confirming Singapore Declaration as well as highlighting such significance of such issue. The UK categorically as well as explicitly rejects a sanctions-based method towards such area as well as would carry on opposing any initiative towards usage of labor rights towards protectionist purposes. Whereas identifying such ILO remains the very appropriate setting to deal with labor problems, such UK has functioned in developing a consent that labor standards must be promoted by means of all pertinent multilateral organizations – the WTO, UNCTAD, the World Bank and the ILO. Such UK too looks for better incorporation of environmental concerns towards WTO as well as desires relationship between Multilateral Environmental Agreements (MEAs) as well as WTO rules explained. The UK participates towards WTO Committee upon Trade and Environment (CTE) that inspects such interface between trade as well as environment policies.

Technological

Internet is changing and the magnitude of this transformation is unprecedented that impact UK business organizations. Since the living standard is changing, the fast economic growth can be in danger till the right investments can be made towards ICT, skills as well as innovation. New technologies could already make a transformation in the segments from healthcare to farming (World Economic Forum, 2013).

Legal

Impact Of European Union (EU) Laws on Business Organization of UK : According to Euro Move (2011) analytically, being an EU member, the UK remains a segment of the process to make such rules as well as regulations of single market.  The seat of Britain upon Council of Ministers remains vital to enable UK to keep its case upon proposed regulations as well as to argue towards reform of current rules. MEPs at European Parliament too remain significant since majority of such decisions of EU needs the involvement of parliament. Stayed the UK to leave the EU however join European Economic Area (supposing it is admitted towards EEA), UK would be bound through utmost rules of single market however not having any part towards the process of decision-making.

A major driver towards economic prosperity globally from when war has been the steady decrease in barrier of tariff like an outcome of consecutive series of world trade negotiations. Such UK, conventionally is an open, free trade economy that could be benefited through such fact that EU negotiates on the basis of largest single market in the world – providing us much better clout towards such talks compared to that would have like an individual country. The other significant benefit towards UK through EU membership remains foreign direct investment (FDI) that is received – which is, investment in towards economy from non-UK bases.  Companies generally locate towards UK specifically since it is inside such single market (Euro Move, 2011).

 Impact of Global Factors On NHS And IHG

Political

• Both NHS and IHG face global political issues that impact on their technology, equipment sourcing and customer care facilities.

Economic

• Such aspects include shifts in global economy. A growth in living standards will finally indicate a rise in demand towards products thus, giving more opportunities towards businesses for making profits. Fluctuations are observed by an economy in economic activities. It will indicate that in context to a rise towards economic activity such demand of product would grow and hereafter such price would increase. With context to lowering the demand the prices would move down. Business strategies might be developed considering such fluctuations. Other economic changes will impact business comprise changes towards interest rate, the rate of inflation and wage rates. With context to low interest rates as well as rise in demand business would be encouraged towards expanding as well as take risks. Thus, business strategies would have room towards such variations.

 Social

• Global burden of diseases impact NHS UK on the fact that whether they are concentrating on right type of health care or not as well as govt. support towards funding that segment.
• The global issues like terrorism, natural disaster as well as disease have been impacting travel services of IHG.

Technological

• Securing funds from the govt. to upgrade health care facilities to adopt new technology that appeared due to invention in health care segment worldwide remains a challenge for NHS.
• IHG has been spending huge amount towards technology upgrading to have its strong network globally with its travel agents as well as other branches. The next generation GRS gives IHG a basis to continue to smartly invest in technology by funded capital investments custom-built systems (Amadeus, 2015).

Environmental

• The global environment has been impacting NHS by means of migration, changing technology in treatment methods, changing nature of workforce etc. may impact towards sustainability (HEE Strategic  framework, 2014)
• IHG has to monitor global environmental condition to understand its consumer travel expectations. Financial pressure in external environment such as competition on room rent during various seasons can impact the travel business by losing customers who might choose other destination at affordable room rents.

Legal

• Medical innovation as well as discovery, rational medicine- by means of development of antibiotics as well as organ transplantation wards medical care may attract further legal approvals by NHS to follow (Skift, 2013).
• IHG has been facing legislative issues in US by constantly funding for branding in US and also for easing visa process. Legislative schemes have raised that will effectively, responsibly and accountably such federal travel guidelines to be followed (Skift, 2013).

Global Environmental Factor on NHS Vs IHG

 

NHS is facing challenges from health care policy makers. Because of changing demographics, ageing population new forms of care will be required apart from adoption of new techniques in treatment, rising demands for health care and huge pressures on budget (Monitor, 2013).

By having a groundwork in place IHG have been functioning on CR priorities to tackle global environmental impacts. The company is designing as well as functioning on additional hotels that are environmentally sustainable, developing local economic opportunity, giving shelter if disaster strikes, identifying cost efficiencies for themselves and partners, increasing brand value. IHG is already observing how the they may create a positive variance by means of key programmes includes IHG Academy, IHG Green Engage as well as IHG Shelter through a Storm Programme. Significantly, such initiatives have integral mechanisms of feedback which are assisting IHG to develop a community of franchise which is sincerely committed towards the growth approach of the company through collaboration and innovation (IHG, 2015).

Impact of Changing Economic Situation towards NHS and IHG 

The impact of poverty has impacted on NHS towards its cost management and payment system to its employees which further impacted on the behavior on the organization. The institute has been under the threat of cost burden due to rising competition in private health care services offering low cost health services.

IHG has been constantly facing changing conditions in customers spending habits that impacted the company towards in changing its spending on infrastructure and salary payment to the staffs. Investments from other brands play an economic impact to lower its room rent.

CONCLUSION

Conclusively, when it comes to vision of NHS, everyone has a greater control of quality health and care services which are empathetic, inclusive as well as constantly improving. The purpose of NHS is to deliver an utmost standard of care as well as guarantee that valuable public resources remain effectively useful to obtain the best result for individuals, society and community. Like a responsible organization, NHS require taking each opportunity towards managing their procurement proficiently, thus minimizing wastage as well as carbon from the beginning to meet social and environmental responsibilities. UK government could implement severity measures for lowering its global debt and facilitate towards long-term growth in the economy. As per fiscal and monetary policy of UK Lowering the key rate of corporation tax in 2010 from 28% to 23% was the aim during 2013, while offering a tax relief of £100 million to creative as well as high-tech industries. UK has stronger investigation power as well as gathering information towards competition circumstances.  UK competition system that would allow further effective competition enforcement towards consumer’s benefits, businesses as well as the economy. Regarding health care market forces higher indirect costs may rise towards NHS providers in which such rate of wage they provide remains below such prevalent wage rate of the part through which it pulls their people. United Kingdom will prefer a stronger confirmation about association of WTO as well as other international organizations towards work led through International Labor Organization (ILO) for improving essential labor standards.

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