Introduction
Entrepreneurs should be aware of the major laws and legislation that have the potential to affect business performance. They can engage in lifelong learning to identify emerging policies and combine them with past legal pronouncements that might affect their investments directly or indirectly. Olde Worlde Charm is a small boutique hotel that serves different clients, including international tourists, local people, adventure runners, and orphans. Since this is a partnership business that has different stakeholders, it is appropriate for the owners to consider all laws, strategic models, and principles in an attempt to record positive results. This paper presents a case study explaining how the application of business law principles can affect Olde Worlde Charm’s success and performance.
Potential Impact of Law and Business Strategy
The case of this small boutique echoes some of the unique opportunities and challenges that dictate the future of many businesses. Firstly, the nature of a business entity will dictate the roles of different partners, how losses and profits are shared, and the level of liability. For this example, it is agreeable that the decisions and expectations of the three college friends could have significant implications on their performance. If one of them decides to sabotage the business, chances are high that the individual will succeed since they should all be involved in decision-making processes (Patel & Cespedes, 2016). This happens to be the case since partners are characterized by binding legal agreements.
This small firm has 11 workers who provide services to different customers. With the emergence of employment laws in this country, it is evident that the three partners will have to consider such stipulations to ensure that they provide competitive wages to their workers. Additional areas to consider include the provision of a clean working environment, personal protective equipment (PPEs), and insurance cover (Bayern, 2016). These requirements are essential and will force the boutique hotel to readjust its model and use the accrued profits to meet the needs of these casual laborers. Failure to follow such a piece of advice will increase the chances of becoming obsolete and failing to achieve the intended objectives.
Olde Worlde Charm serves local and international customers by providing accommodation and food. This practice means that the firm’s leaders should be aware of the implications of the Competition and Consumer Act. As studied in class, Section 2 indicates that business entities have a role to protect the people of Australia by ensuring that all forms of competition are fair and promote the needs of the consumer (Patel & Cespedes, 2016). Those who choose to ignore such a provision will have to be fined accordingly. The partners should, therefore, consider the existing law to focus on the diverse needs of every orphan and other customers who receive food supplies and catering services.
Within the field of business strategy, firms and entrepreneurs are expected to do what is right and ensure that both their employees and customers receive the intended support and care. In the event of any injury or harm, tort law becomes a reality whereby a certain error will eventually trigger huge fines (Bayern, 2016). For example, many scholars reference the Donoghue v Stevenson case of 1932 to explain why malpractices or failure to consider the “duty of care” concept can affect the success of businesses (Patel & Cespedes, 2016). Tort laws have in the past disoriented the performance of many companies for injuring employees or companies.
Business strategy is something critical since it dictates how any given organization pursues and achieves its aims. When executed properly, the managers and followers will be willing to consider the power of principles that dictate performance. For instance, the past two decades have informed a new tendency whereby companies are starting to become ethical and consider the importance of protecting the integrity of the natural environment. According to the studied class materials, firms that pursue ethical practices will have increased chances of remaining legal and adding value to the targeted customers (Patel & Cespedes, 2016).
Olde Worlde Charm needs to pursue this idea to introduce new practices that will safeguard the integrity of the natural environment. It can partner with the Blue Mountains World Heritage National Park to protect different plants and creatures in accordance with established business laws.
The concept of corporate social responsibility (CSR) remains critical in any business as part of supporting different stakeholders and giving back to society. Olde Worlde Charm needs to follow such a model to continue to allow more adventure runners to use its trails. Such an initiative can attract more potential customers and eventually maximize profits (Mota, Carvalho, Gomes, & Barbosa‐Povoa, 2020).
It will also consider new approaches to ensure that there are more free days for beneficiaries from the Inner City School for Orphans. Such a model makes it possible for companies to become more admirable and attractive to the greatest number of people. Firms that take this issue seriously double their chances of adding value to their clients and increasing their competitive advantages.
The PESTEL framework has become one of the widely utilized tools to guide managers whenever focusing on new markets. Olde Worlde Charm’s managers can focus on this model since it provides new opportunities for analyzing the political, economic, social, environmental, technological, and legal factors that have the potential to facilitate or disorient performance. This emerging boutique hotel will have to focus on this tool to make evidence-based decisions and introduce a superior model that is informed by the environmental and legal forces experienced in the selected region (Tasgit, Şentürk, & Ergün, 2017). This knowledge will ensure that future challenges and obstacles that might affect profitability are identified and addressed.
The liquor Act of 2007 is a law that Olde Worlde Charm needs to take seriously since it operates in the hotel industry. The main aims of legislation include minimizing cases of alcohol use and abuse, supporting the expectations and needs of the wider community, and making sure that the established controls and restrictions resonate with the demands of the industry (Mota et al., 2017). Since alcohol is one of the common products sold at this hotel, it would be critical that all employees are aware of the Liquor Act and work tirelessly to deliver the intended aims. This kind of practice will ensure that this boutique hotel is in a position to achieve its objectives.
Recommendations
The case of Olde Worlde Charm is a clear indication that business law and strategy are necessary attributes that organizational leaders should stop ignoring. This hotel should consider each of the above laws that have the potential to disorient or support performance (Peterson & Griffin, 2019). The initiative will make it possible for the three partners to develop a superior model to transform operations and maximize the services available to all customers. The inclusion of training programs focusing on the above aspects will empower the casual laborers to work in a competitive manner and eventually deliver the intended results.
The concept of business ethics needs to be the leading principle for ensuring that Olde Worlde Charm operates in a legally acceptable manner. The partners can introduce a Code of Conduct that will outline what every person needs to complete within the stipulated period. The document will also describe how this firm will address emerging issues and eventually improve the experiences of different customers.
A new business model informed by the above legal, ethical, and business laws will be needed to streamline operations (Tasgit et al., 2017). The move will ensure that all workers understand how to relate with different stakeholders, including customers, suppliers, tourists, and community members. The firm will have to focus and promote the integrity of the natural environment since it is close to a national park. The knowledge of these issues will be the first step towards overcoming the legal implications and lawsuits that might affect this hotel.
Conclusion
The above discussion has outlined various legal and strategic aspects that are critical for entrepreneurs and investors who want to record increased profits within a short period. Olde Worlde Charm is a partnership business that faces diverse challenges, opportunities, and obstacles that might impact its future performance. The nature of this firm’s model requires a detailed analysis of every legislation and strategic principle if it is to become sustainable. If the three partners consider the above suggestions, chances are high that they will be prepared for potential risks while at the same time delivering high-quality services to the targeted customers.
References
Bayern, S. (2016). Three problems (and two solutions) in the law of partnership formation. University of Michigan Journal of Law Reform, 49(3), 605-633.
Mota, B. A. E., Carvalho, A. I. C., Gomes, M. I. A., & Barbosa‐Povoa, A. P. F. (2020). Business strategy for sustainable development: Impact of life cycle inventory and life cycle impact assessment steps in supply chain design and planning. Business Strategy and the Environment, 29(1), 87-117. Web.
Patel, B. N., & Cespedes, F. V. (2016). Introduction to business strategy. Journal of the American College of Radiology, 13(6), 747-749. Web.
Peterson, E. A., & Griffin, C. (2019). Building long-term strategic value by addressing barriers to future-oriented legal thinking. North East Journal of Legal Studies, 39(3), 38-58.
Tasgit, Y. E., Şentürk, F. K., & Ergün, E. (2017). Corporate culture and business strategy: Which strategies can be applied more easily in which culture? International Journal of Business and Social Science, 8(6), 80-91.