Law Exam Notes
International Hospitality
Management (IHM)
Environment Module
With these notes I got a 9.2
These are based off the lectures and additional content given in class. I recommend you
watch the prerecorded lectures as well since they are a great help.
Table of Contents
Week 1:..............................................................................................................................2
LEARNING GOALS WEEK 1:...........................................................................................................2
OVERVIEW MANAGEMENT IN HOSPITALITY.................................................................................5
Week 2...............................................................................................................................6
LEARNING GOALS WEEK 2 CSR......................................................................................................6
Week 3:..............................................................................................................................9
LEARNING GOALS WEEK 3 GDPR...................................................................................................9
Week 4:............................................................................................................................15
Week 4 Learning Goals...............................................................................................................15
Week 5:............................................................................................................................22
Week 6:............................................................................................................................23
Example exams with answers:..........................................................................................24
Exam 1:.......................................................................................................................................24
Fill in BEFORE the test.......................................................................................................24
Fill in while HANDING IN the test......................................................................................24
Important notes for the student before making the test:..................................................24
Exam 2:.......................................................................................................................................49
,Week 1:
LEARNING GOALS WEEK 1:
public/private ltd, franchise/management contract, referral
You are able to:
describe the set up of a big company, who are the organs, what are their main tasks?
o Shareholders: They own shares/stocks so they own the company
o Supervisory Board: Chosen by shareholders, keep an eye on management and
CEO
o CEO: managing director of the company- services and reports to board of
directors. Face of the company – communicator between stakeholders.
o Executive Board: control the operation of the business on a daily basis, chief
managers report to CEO- leads the company
o Board of directors: supervisory plus executive board
One tier board (one organ divided in executive and non executive)
Two tier board (2 organs divided in management and supervisory)
Give 3 differences between private ltd and public ltd
o Public can offer shares for sale to the general public
o Private limited cant transfer shares freely while public can.
o More of Public’s information has to be made available.
o Public has no maximum members while private does
Private Limited Public Limited
Legal person, limited liability: company Legal person, limited liability: company
assets and private assets separated assets and private assets separated
Capital divided in shares: shares are named, Capital divided in shares: shares are
not freely tradable: anonymous and freely tradable:
The board of directors decides who van buy The public limited’s are the companies
shares. That gives more control you’ll find at the stock market
Private vs public: expanding is usually Public vs private: expanding the business
harder and slower can be fast and at large scale by issuing
shares. That is an advantage of public
shares.
Because shares are named, board doesn’t The dynamics are different because there is
have to please shareholders: more control, a distinction between supervisory
more freedom and flexibility (check out the (shareholders) and management board.
article on Mars on BB, it explains why Mars There interests might conflict and thatmakes
is still a private limited company) the public limited less flexible, more
bureaucratic and slower.
Easy and cheap to start, just 1 cent starting Very expensive to set up: Netherlands €
capital required, the foundation act will cost 45000 starting capital is required
€ 900,00 more or less.
Also suitable for starters Not for starters
, Give 2 advantages and disadvantages of a public ltd and of a private ltd
Public Limited Company
Adv Disadv
- Can raise a high share capital - More regulatory requirements
- Spread the risk - Have higher transparency with
- Expanding fast company information
- Ownership and control issues
- More vulnerable to takeovers
- Less flexible
Private Limited Company
Adv Disadv
- More control over shares - Expanding is harder and slower
- Easy and cheap to start - Less share capital
- Flexible
Briefly explain the features of a franchise company, a management contract and a
referral contract
Fra - Well established business
nc - Needs limited investment
his - Easy entry in new markets
e - The continuing relationship between parent company(franchiser) and an
Co individual business unit (franchisee)
mp
an
y
Ma - Legal agreement between investors/owners of a project, and a management
na company hired for coordinating and overseeing a contract
ge - Diff than a franchise as the franchisee acts as a separate business that pays the
me parent. In management contract, the company pays the management company
nt to take over operational control.
Co - 3 parts: conditions, duration, and payment/compansation.
ntr - Adv: save time and resources, distribute responsibility
act - Disadv: surrendering company information, conflict of interest.
Re - lower cost than franchise
fer - Some hotels choose to become a referral property. This means that the prope
ral rty is being operated as an independent hotel in association with a certain chai
Co n. These hotels refer guests to one another’s properties and share a centralised
ntr reservation system, a common logo, image, oradvertising slogan. Hotels pay a
act n initial fee to join a referral association and further fees are based on services
required.
Describe 2 pro’s and 2 con’s for a franchise company, both for franchisor and
franchisee
, advantages disadvantages
Franchisor Fast expansion Finding motivated
possible. franchisees that don’t
Easy way to expand damage the chain’s
capital reputation
Control is in your You will share the profit
own hands Administrative
Low-risk chain resources/capital/knowledge
expansion may be needed
achieved You need a solid and
Franchising fees and profitable plan or product to
royalties collected attract franchisees
regularly provide the Innovation is harder with
resources necessary franchisees than employees:
for chain more negotiation/you might
development. need to adapt formula
In many cases, the You have more control over
business performance employees than the
of franchised units is managers that are your
better than that of franchisees
company-owned It is harder to make
branches, franchisees work together
Accelerated since they are all
contribution to the independent and not
company’s market
reputation.
Franchisee Solid business plan Loss of freedom
More support, you Franchise fee
are not alone strict rules
proven concept Might be more expensive
more facilities not flexible
less investment franchisor dominant
known brand name franchise contract often
complicated
you can describe 1 pro and 1 con for a hotel management contract and a referral
Hotel management contract:
Pro Con
Versatile, individual design Expensive, share profit, complicated
contract
Professional team, knowledge of hospitality, Risk staff is not involved, doesn’t feel at
accounting, marketing home, conflicts
Possibility to exploit many companies with Risk of losing your identity if there is too
the help of a professional team much outsourcing or if the management
team does not execute your ideas
Lot of different hotel management The professional team has to know
companies to choose from everything about your business, less privacy
