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  2.  
  3. PEARSON (PEARSON)
  4.  
  5. Travel And Tourism
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  7. Unit 2 - The Business of Travel and Tourism

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Unit 2 Assignment 2 (Distinction)

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  • September 16, 2019
  • 21
  • 2018/2019
  • Essay
  • Unknown
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  • 950

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  • BTEC
  • PEARSON (PEARSON)
  • Travel and Tourism
  • Unit 2 - The Business of Travel and Tourism
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Amaar Alyas
Unit 2: Assignment 2

Assignment 2 task 1: Virgin Atlantic




Business structure

Business structure is the different levels of power and responsibility within the
business. At the top is the CEO/chairman. This person is the final decision maker
and has full control. This person is the highest person in the business and decides
how the business is run. Below the chairman is the Executive directors who are full
time employed and run a lot of the business to assist the chairman with the
responsibilities. After these would be the non-executive directors who are paid a fee
to make decisions and to run day to day activities. With private organisations, this is
known as a board of directors. With public organisations, this is known as a board of
trustees and with schools and colleges it is known a board of governors. An example
of a business structure is Virgin Atlantic. They are in the private sector and so have a
board of directors. It was founded by Richard Branson who is the chairman. Virgin
has made a partnership with Delta agreed to give 49% of the company to Delta In
2013. Another example of a business structure is National Trust. National Trust is in
the public sector and it is a not for profit organisation. It is also a membership
organisations and takes donations and funds from membership fees.

Business Organisation

This is when companies can be integrated vertically or horizontally. Vertical
integration is when companies on different levels merge together. An example is a
tour operator and an airline. These are two different company types and therefore it
is vertical integration. Horizontal integration is when two companies on the same
level merge together. An example is an airline and an airline. This is horizontal
integration because it is the same companies merging together. Companies merge
together because it creates a better competitive advantage against other customers
and it means there is more chance a customer will choose a larger organisation that
has merged because there is less choice. An example is Virgin Atlantic who are
horizontally integrated with Delta. Virgin has made a partnership with Delta agreed to
give 49% of the company to Delta In 2013. Their integration means that they
connect to more destinations because both airlines travel to different destinations so
together they can travel to more destination and share flights as they are partially
horizontally integrated. Delta airlines was founded in 1924. This integration means
that both companies have more planes and can use each other’s planes and
customers to become a bigger company. Another example of a business
organisation is National Trust. This is an example of a company that is not integrated
with any other company. However they are interdependent with tourist information
centres and websites such as visit Britain for promotions.

Control

With profit making organisation, the board of directors have strategic control over the
business. They are also answerable to the shareholders and they have to make sure
that they work within the guidelines that is set out in the companies act. The

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