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There are a range of factors looking at internal and external which affect the way a travel and tourism organisation runs and this is all because some factors do not fit into a business as a whole. Not all factors affect a business but most of them do depending on what they do and its overall comments from customers, this could be where it is located. Over the next few paragraphs I am going to explain six different external and internal factors that affect one organisation which is the British Museum and give examples of what they are and how they affect the way the organisations runs its business.
An external factor affecting the British Museum are the prices which can vary as some products are cheaper than others and this can also depend on the value of the product especially portraits and sculptures which start from a price of £90 and above. At the museum only certain facilities and products go up in price, these are the ones which customers go for the most so therefore they know they will make more profit because the facilities which are going up in price are the ones which customers normally go for. However this could also affect their organisation because some customers may refuse to buy what they normally go for because the prices are going up every so often. The only thing that is free in the museum is to get into the entrance itself and to use their toilets, however if a customer wants to visit an exhibition inside the museum they will have to pay. The following prices are; adult is £8, senior is £8, student is £7, family of four is £17, people with a disability is £7, groups is £6.50 per person and children under 16 goes free but must be accompanied by an adult. http://www.britishmuseum.org/whats_on/past_exhibitions/2008/babylon/tickets.aspx
Another external factor which is affecting the British Museum is accessibility because most events which happen there are mainly located on different floors, there are not many on the ground floor. This therefore is very difficult for people with a disability for example they are on a wheelchair because they will have to travel up and down quite a lot of times, however lifts are available inside the British Museum. Loaner wheelchairs and portable stools are available to borrow for free but must be returned back before leaving the building. The British Museum website needs to be adjusted in order to make it an easy access for all their customers who are thinking to visit and try something new, this however has affected the way their organisation runs. The reason for this is because some customers like to found out about something before visiting to see if it is worth the while and if information is not updated customers will lose out on things and be very disappointed. This means that they need to improve on their website more often and add up-to-date information to keep everyone updated with latest news and prices of products.
An internal factor which affects the British Museum is the location and where an organisation is placed, this is very important for customers because they want to visit somewhere nearby for it to be very noticeable. The more obvious a building is the more customers will notice it walking past it or see it from a distance and will enter and found out what it is about and what goes on. A variety of different buses go to the museum however there are no stops right outside it or signs to show you the way so people will have to find their own way from the bus stop or ask people nearby for directions. As this museum is not situated in the centre of Kings Cross and is not at all noticeable it will decrease the number of visitors, some people have no interest in museums at all but if they decide they want to go one day they will not want to because they are not clear enough to show itself that it’s a museum. If the number of people decreases the money will also decrease, this means the British Museum organisation will have to move areas and find itself a new location where they are more likely to be seen.
Internal factors such as products and services can cost quite a bit of money in the museum and the reason for this is because the museum itself is free to enter so they want to make more money in the shops which are available inside. Many people buy from the shops especially if they are into art and sculptures and would spend any amount of money, whereas the other half of customers will not spend at all because it’s either too expensive or they do not like the products that they are advertising. Products and services are very important in a business because they make up the business and help it to run smoothly so without good products at a reasonable price the organisation will go downhill. It will lose a huge amount of money as well as customers, this will result in them having to close down or lower their prices and see if customers make more effort to buy something. They sell a variety of food and drinks in the three different food places inside each selling different things; there are two cafes and one restaurant all with different opening times from one another. Customers can make documentaries, films and adverts around the museum with cameras given to them or they can even bring their own cameras but it must be hand held cameras.
The third internal factor which can affect the way an organisation runs its business is the peoples appeal towards it, this means different types of people are interested in different things depending on what the business does and sells. The British Museum appeals the following people; solo travellers, families, special needs people and school students such as big groups of young teenagers. The reason for the above people to visit this museum is because it gives out a lot of information and background of the museum itself and about the different sculptures, ornaments and the world history in general. The reason to why the appeal of customers can affect this business is because the museum is not for everyone; they normally attract tourists and those people who study history because they offer loads of educational and historical information about the past. Appealing to certain individuals can put down a person’s personality and make them choose not to visit the museum because they are only attracting the people they feel will be attracted even though this is not true because everyone has a positive side to them about museums. This can affect the British Museum as a whole because it will lose a variety of different customers and will only receive the same customers every day which can get boring after a while.
My last internal factor is about profit which the British Museum makes enough of, as well as selling their products at a high price they also have a desk which is put in the middle of the museum near the entrance where customers can make a donation. They can put any amount they want and it does not have to be English money, they allow any type of currencies. This can affect the way the museum runs its business because when customers walk in, it feels like they are made to donate money otherwise they are just taking advantage of it being free. So therefore if they feel in a position of peer pressure they will give up visiting the museum and this will lose the museums trust and also they will decrease in money and will not be able to buy future products and services to update their organisation now and again. Profit is a good thing as you are making more money than usual and this could all be because products have decreased in price then everyone has noticed in and gone to buy it but however profit can affect the British Museum. I think this because the museum is already free to enter so if they lower their prices they will earn a lot of money and they will be losing out if they decrease their prices. Everyone will go and buy the same product then they will be none left in stock for the rest of the day for the other customers who may want the same product so either way making profit will not make them gain more money than they expect to earn.
M3: Using two outlets from assignment 1 assess how hospitality operations in travel and tourism organisations have responded to internal and external factors
My first outlet is Nandos down Kings Cross, they have responded to internal and external factors really well and I know this because they are one of the popular restaurants in London which everyone enjoys. They specialise in chicken dishes and offer a variety of products and services like their food and drink which they have a lot of; starters, main and deserts dishes. They meet every customer’s needs such as children as they have a separate meal for them which is just basically a smaller portion than to what an adult would normally get plus a desert of their choice. They also appeal to vegetarians because they have a separate meal for them as well so therefore meeting every type of customer’s needs they are earning loads of money and will always keep up with its good customer service and skills. The location of Nandos is convenient for everyone as it is located right in the center of Kings Cross opposite the train station, it is very obvious to see and because Kings Cross is a popular area more people will notice it and pop in there for lunch as most work people and college students do during their break. Their prices are reasonable it is normal for a plate of chicken burger, chips and a drink to cost around £10 and waiting for food depends how busy the restaurant is; if there is hardly anyone inside it is only five minutes but however if it is busy it can take up to fifteen to twenty minutes wait. Nandos has accessibility access for those who are disabled and are on a wheelchair; they have a downstairs too but if a customer is on a wheelchair and are unable to walk down the stairs staff at Nandos always make sure there is space for them upstairs as it much easier for them to get to.
My second outlet is the Travelodge hotel which is also located down Kings Cross but it is about ten to fifteen minutes walk from the station. They also offer a variety of services and products which consists of food, drink, and accommodation; they are available 24hours seven days a week and facilities for every type of customers for example they have cots for families with babies. The prices to stay at this hotel can vary looking at the nights you stay for and whether the customers wants food or is happy to go out in the mornings and evenings to buy breakfast and dinner. Travelodge hotel has worked hard to cater for loads of people a day to keep them happy and enjoy their stay with themselves; they also have separate meals for vegetarian people however they need to be told beforehand so they can buy the food. The location of this hotel is also located in Kings Cross and is also very convenient with attractions nearby however train or bus is required to get there to stop customers from getting lost especially if they have no clue about the area. They appeal to a number of people; groups, solo travellers and families, they all enjoy staying at the Travelodge either for a trip or just to explore the area and surrounding attractions and facilities. People with a disability on wheelchairs are allowed free access into the building and a member of staff will help them to their rooms on the day of their arrival as well as the other days when they leave and enter the building. Children will love the Travelodge hotel food especially as they can eat as much as they want for nothing, they have a set menu so therefore they can choose what they want on the list including drink and desert.
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