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The Business and Legal Environment


 Every business organisation made of people needs an organisational structure. An organisational structure outlines the way in which chain of command works within an organisation (Zhang et al., 2017). It is necessary for an organisation to have a sound organisational or formal structure. With the help of a formal structure, the organisation can be able to meet its desired objectives (Benzer et al., 2017). The criterion for structure formation inside an organisation can be according to functionality or by specific area or by product or process.

A tourism and travel organisation works with limited financial investment. With the limited capital and resources, it has to establish a business structure. It has to comply with Competition Laws and Fair Trading Laws too.

The various business structures inside a tourism and travel based corporation include the following.

1. Marketing unit: This unit will take charge of promoting the tourism and travel plans, hotel accommodations etc. Marketing of travel offers is done by posting advertisements on tourism related portals (Cronin et al., 2017). Since international students are the target market, the marketing team must stay in touch with educational institutions like schools and colleges.

2. Management team: It takes due responsibility of the number of travel ready people and contracts hotels to provide them the best stay options.

3. Research team: This section will undertake the responsibility of knowing about the various sightseeing destinations spread all throughout this world. The research team collects relevant information about such destinations and prepare information reports for students (
Lambert et al., 2017).

4. Line management: This niche will monitor performance of employees like caterers, travel attendants, safety executives, IT team etc.

5.Database management: This unit will deal with databases of aspiring tourists and their travel plants. This department also takes care of Enterprise Resource Planning(ERP) (
Micucci and Rossi, 2017).

6. Human Resource Department (HRD): This department takes care of the recruitment and selection of new employees in the team.

7. Quality service management (QMS) system: This team is in charge of ensuring the team conforms to quality standards in all its operations. Any company has to apply TQM in all its operations (Benzer et al., 2017).

8.Travel agents:These are specialized professionals who contact customers and provide them detailed information and travel itineraries.
Case study of Travel and Tourism enterprise

Outcome: The basic objective of the company is to gain profit or increase company turnover beyond annual value of 80,000 USD.


Before the start of the company

Assets in hand: 40,000 USD

Loan: 40,000 USD

Nature of business: Partnership
Nature of Company: Private Limited Company

Expected turnover: 1,00,000 USD.


Swot Analysis

Strength: With growth in the number of international students, there are more customers to be targeted at. There is open market in top quality institutions for best tourism services provider.

Weakness: Being a new company it does not have a track record or established clientele.

Opportunities: With exploration of new sightseeing features, the company can provide new travel and tourism offers for interested clients.If it can create the right impact in the market, it can achieve its long term goals of a unique brand presence in the market.

Threats:Being a newly established firm, the company has to invest a lot in infrastructure. So it is at the risk of suffering from grave financial losses, if things do not turn the expected way. 

Instead of travel business, if the team has an alternative plan, it must consider additional aspects including the following.

Inventory management: The Company must take care of in-stock products and provide efficient logistics services to targeted customers. The company must recruit responsible support staff (Janićijević, 2017).

Customer Relationship management (CRM): For any sort of operation whether manufacturing or services, the firm is required to maintain regular contact with the clients (
Cronin et al., 2017).

Contract management: The Company has to sign business deals carefully and the contract papers must be safeguarded. Before applying for a contract, the unit must make sure the terms and conditioned are properly followed (Zhang et al., 2017).

Financial management: The company must be able to regulate its assets properly to generate maximised income.

Legal implications in Business structures formation

Business units must comply with the following laws. The aim of these federal statutes is to sustain competitive behaviour of firms in the market. These also serve to regulate business to consumer and business to business transactions. Legal policies also ensure the assets of companies stay protected and secured.
1. Australian Consumer Law (ACL) : This law serves to maintain consumer protection rights and is inclusive of the repair or replacement of inferior quality product.
2. Competition and Consumer Act(2010): This law serves to maintain competition in market with a long term aim to raise or maintain product quality standards.  

If the business firms comply with the terms and conditions of the stated laws, the regulatory bodies provide comprehensive advice to client regarding rights and responsibilities to consumers.

Case study of Butlers

Butlers Group specialises in providing contract formulation to various companies dealing in merchandising and trade. The consumer will get guaranteed rights of getting replaced or repaired goods from the manufacturer or service provider. Both manufacturers and consumers can stay assured of product safety as well. This case is about a firm which purchased a customer built vehicle from an Australian manufacturing corporation. The vehicle did not meet the required performance standards (Butlergroup.ie, 2018).

Dissatisfied by vehicle performance, the client attempted to apply for return or repair of the vehicle to the other party. The stipulated time period was 4 months. The investigations were then conducted by Butlers Corp with a view to find if the manufacturer is guilty of non conformity to Australian standards of manufacturing. The client has also forwarded the case to NSW Civil and NSW Civil Administrative Tribunal(NCAT) (
Butlergroup.ie, 2018). After the conciliation of the case, the client party sought valuable advice. During the course of investigation, few electrical and mechanical faults were actually found in the vehicle. The manufacturer was found guilty of breach of Australian Consumer Law(ACL). Instead of a legal hearing, Butlers suggested a negotiation. The client was paid an amount of 89,000 USD which was equal to full refund of invoiced purchase and extra costs involved. The manufacturer gave money but its business standing remained safe.

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