Private Limited Public Limited
Advantages You can choose how to Legal person and limited
operate your business liability, capital divided in
completely, private belongings shares which are freely
are separate (legal person, tradable, free to raise share
limited liability), easy and capital and therefore better
cheap to start access to capital
Disadvantages Stocks of shareholders are Not suitable for starters,
named (restricts the transfer expensive to start up,
ability of shares by its articles), distinction between
can’t issue prospects to public supervisory and management
board and may conflict and
less flexible and more
bureaucratic. Owners may lose
control.
Structure Organization Public Limited:
- CEO (heart and soul) steer company, communicator between supervisory and executive board
- Supervisory board (eyes and ears) keeps eye on management and CEO, looks out for interest of
shareholders
- Executive board (hands and feet) control operation of the business on daily basis, reports to CEO
Franchise Hotel Management Contract
Advantages Brand recognition, more Professional team, low labour
facilities and start up support, costs, lot of choice
less investment and solid
business plan
Disadvantages Stuck to contract so have No face, less atmosphere, no
restrictions (loss of freedom extra rewards when good
and franchiser is dominant), performance, complicated
poor performance from others contracts, less privacy as team
damage your name too, needs to know everything
contract may be complicated,
franchise fee
Referral
Advantages Shared marketing, a network, an umbrella but
preserves own identity
Disadvantages Costs money, more competitors under same
brand, little bis less freedom (have to comply to
marketing strategy)
People – you have an impact on, employees, customers, suppliers, etc. Related laws are labour laws,
safety laws, working times and anti discrimination. Care for employees & guests, labour conditions
and carefully choose suppliers.
Planet – The part of ‘’being green’’ or not. Laws on waste and laws on building regulations that
preserve landscape. Examples are sustainability of hotel, water use and waste management.
Profit – How well is the corporate governance. Accounting laws and laws against fraud and
corruption. Examples are transparency on how profit is made and responsible investments.
Human trafficking can be detected by one man checking in with woman behind and by cash
payments. Also, a no disturb sign and lot of room service and clean laundry. Inform management on
topic of raise awareness by training staff.
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