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You are here: Home > Educators > BTEC Travel and Tourism > Management Structures within the Travel and Tourism Industry - Activity |
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Management Structures within the Travel and Tourism Industry - Activity
Image copyright: Bjarte Kvinge Tvedt, stock.xchng Disillusioned coach driver, Sheila McCarthy decided that enough was enough. She'd always tried her hardest for the most important people in her job - the customers, but in her opinion the company she worked for would have struggled to organise a coach trip in a car park! She decided to set up on her own. Taking out a long-term loan helped Sheila get the capital she needed to get started. Out of these funds she leased a reconditioned coach and with the necessary paperwork and licences in place, she was ready to go. As a one-person business, she worked hard for twelve months, taking groups away on touring holidays across Britain. She loved the freedom of working for herself, but found it hard to juggle all the demands of the role. After one year as a sole trader she decided to take on a business partner. Her long-standing friend Ellie Longhurst agreed to join her as a 50% partner. Ellie provided half of the capital of the partnership, so there was more finance to invest in the business. With Sheila focused on her driving role, Ellie's work was mainly office-based, involving administration and marketing. As the business grew, so the demands on Ellie and Sheila's time became more pressured. They recruited additional staff to take on some of the burden of running a successful firm. Over the next five years the firm expanded, as demand for short break holidays from the over-50s increased. The company had grown significantly during this period. 
Image: As long-standing friends, Sheila and Ellie often discuss business on a night out. Copyright: Madarász Krisztina, stock.xchng
Sheila and Ellie had never drawn an organisation chart for their firm, but the staff they now employed were organised in the following way:
This was all a far cry from the early days of the firm, when Sheila would do many of these jobs herself. She liked to share the responsibility for organising the staff, but the fear of losing control of the business worried her. Then came the bombshell: Ellie wanted to quit. The couple's partnership agreement contained a clause setting out the rights of the two partners, and they split amicably, leaving Sheila in charge of the entire operation. There was little chance of Sheila being able to manage the firm. It had grown too large for one person to handle and she didn't feel comfortable with being responsible for the careers of so many staff, all on her own. It was then that her bank manager had a bright idea: why not sell the firm as a limited company to friends and family? Sheila could retain a controlling stake in the business, but would be able to raise more capital as a limited company than would be possible as a sole trader. The bank helped her with the registration of the private limited company and the shares in the firm were divided as follows: 50% owned by Sheila The business was ready to take the next steps... Tasks
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