Hospitality industry – Vertical integration, Franchise Essay
On the other hand, those who provide these services onetime have the impression that, despite their efforts, customers can sometimes be picky and ungrateful. Regardless of the position they occupy, it is clear that the scope of activities influence people life, growing up over time. International there is a constant development and continuous improvement of hospitality industries. To welcome those who travel the world, literally and figuratively extend our hospitality and it is taking up with their requirements.
For many people, facade, appearance or location determines the first impression that remains and is the most important. The capitalist industry, more than any other, is facing strong to the people. What create that lasting impression customers is effective, efficiency and hospitality of the people who by attitude and their kindness, hospitality is people oriented. But starting from the original meaning of the concept of hospitality, the hospitality industry can be defined with respect broad a range of commercial accommodation activities and / or hospitality industry By oarswoman shorter time.
In other words, the hospitality industry are not only great hotels and restaurants, but also a wide range of commercial activities such as guest houses, knack bars and fast-food establishments. The essence of hospitality
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Development occurs inns and hotels related an strict development of travel and holidays. The evolution of transport technologies allowed mass range of consumer leisure or business, creating an urgent need of accommodation and catering for people in away room home. Is generally accepted that hospitality, as an attribute of good manners, represents an primary objective of tourism. Regarded as a true art, the art of hospitality is intended to structure the customer for the service unit in such way that consumer products and services feel really wanted is treated as a guest.
In addition, more than practice it occasionally grown into a true profession. Hospitality as a profession can be defined therefore as “the process of providing psychological and physiological comfort and safety of the client, while the consumption of products required on the premises benefit. In this context, this attribute can accept industrial-scale development? Seen in terms of scale and investment characteristics and the fact that this sector of economic life is one work intensive, dedicated to the hospitality industry is similar industries.
In the specialty literature doubts persist in using this terminology, especially in relation to the scope of the hospitality industry. Thus, a series of authors consider as part of this field only food and accommodation services, perhaps because those benefits are offered under the same premises works like industrial units, other authors, however, consider it appropriate a broader approach, including leisure services and even the marketing of products. (David P. Baron Business and its environment, fourth edition) In terms of ownership, tour operators are found in both the private and public sector Private Sector.
Increasing the number of transactions and mergers within the industry came amid vertical or horizontal integration. Horizontal integration involves expanding within an industry sector, for example through the development of hotel chains or network by opening new routes. Companies grouped in this formula is in an integrated chain, controlled by a unique decision. They offer a homogeneous integration means not only achieve these general goals, but also contribute to better accommodate certain geographical dimensions of tourism.
Purchase of tourism enterprises in the coastal and mountainous areas, for example, may allow the transfer of staff and a seasonal effective use throughout the year human and material resources. Vertical integration within an organization bringing together various industry sectors, for example, when a company buys hotel or tour operator travel agency opened retailers. Integration can occur from within by developing a ewe product or activities of the company’s internal resources or external acquisition or takeover by other companies.
As with other industries, the expansion through integration of technical and financial benefit. Increase the size of a firm enables him to take full advantage of computerizing, a very important element in terms of travel bookings or may mean developing scientific research that would provide a competitive edge. The public sector is required at different levels, to pursue the public interest and provide goods and services whose cost cannot be covered by the private sector.
The public sector is involved in tourism, directly or indirectly, for different reasons: economic; social and cultural; the environment; Police; Tax. Types of ownership in the industry of hospitality are the followings: sole-trader, partnership, private or public companies (limited liabilities), franchise. Sole -trader- a form of business in which the owner has the unlimited liability , Partnership – can be two or more people who share skills and workload, Company – it has to be registered before to start the business, the owners are its shareholders who puts funds in the company by buying share .
Franchise – the franchiser is selling the right to operate under its company license to the franchiser. The diversity of the Hospitality industry consist in its different types of products and services it is offering such as different food and beverage products (e. G diversity of cuisine, vegetarian meals, nutrient level of the dishes, hall meat, etc), different types of accommodation(e. G. Hotels, guests houses, campus accommodation, villas, apartments, cottages), leisure services, conferences, meetings and banqueting. (DRP. Sam handout) 1. /PA Systemic analysis reveals multiple functions and businesses increasingly important hat they have the organizational structure as the main organizational subsystem. If hospitality organizations known two dimensions of organizational structure; horizontal dimension; vertical dimension. The horizontal dimension reflects general division of labor in specific activities or components. Working in horizontal organizational structure can be grouped into: functional structures and autonomous units, drives hybrid matrix units.
Structure functional groups similar positions to produce and sell a service. Functional stable also. Structure of a small restaurant is shown in figure below Structure-based autonomous units grouped under a single manager, whose positions work occupiers unlike running, but focuses on: distinct service or group of services; a customer or customer group, geographic area. Organizing such autonomous units is adopted by large enterprises, transnational, operating in an unstable environment and heterogeneous. Also learn which political factors affecting hotel industry
Example: Hilton International.
Structure incorporates hybrid autonomous units and functional departments centralized and located at headquarters. A hybrid organizational structure is typical for a large company that faces an uncertain external environment and heterogeneous. A strength of this type of structure is that it takes advantage of concentration and coordination of autonomous units and functional departments are centrally such as research department – development mixing functional structure or structure-based autonomous units. A new feature of this type of structure is that some workers should report more people and not a single manager.
Matrix organizational structure is designed to determine collaboration between product managers and functional managers. Function Management Product Managers Production Manager Director Marketing Manager CEO Hotel A 2 3 CEO Hotel B 5 6 CEO Hotel C 7 8 9 Matrix cells numbered in the diagram above represents workers or teams of workers from the three hotels. Of note is that the hotel manager had to work with three functional managers and each functional manager must cooperate with each of the three managers of hotels.
Conditions requiring matrix organization are:
1 . Strong pressure for dual focus on technology and product;
2. Pressure related to the amount of data and its processing capacity;
3. Pressure on the general resources of the enterprise.
After their content, the relationships within an organization are: Relationships determines the effective exercise of authority. They are divided into: Hierarchical relationships ensure unity of action, giving the enterprise, from this point of view, the operational departments, hierarchically subordinated them.
Staff relations are independent of the first two categories are established as a result of the delegation by senior management, usually on the top hierarchical organization of the task to solve their behalf problems affecting multiple compartments. Cooperation relations established between stations on the same hierarchical level, but belonging to different compartments. Control relationships arising between specialized departments control and other departments of the company. Spontaneous relations are a consequence of the existence of the informal organization structure. Tear R. , Adams D. , Messenger S. CLASSES Managing Projects in Hospitality Organizations 1992) 1. 3/PA The national trade association for hotel, restaurants and catering sector is represented by the British Hospitality Association (BAH). Almost every public hotel group or independent hotels, restaurants, pubs food services, motorway services and many hospitality associations are members of BAH, who promotes the interests of the ole hospitality sector to the EX. commission, government, ministers MSP, Maps, MSP, and media.
Exist 16 additional committee working with the sector and its specific issues such as Management of food and service Forum, Local Hospitality Association, National Committee of Restaurants Association, Club Panel, Committee of Area Operations Motorway Services. It is offering support and development for more than 40,000 establishments and over 500,000 employee were trained in order to improve their skills and get qualifications in the hospitality sector. The hospitality sector in UK boost its profitability with a series of events like Olympic
Games 2012 and will be delivering world class service to the Ryder Cup and Commonwealth Games in 2014 and the Rugby World Cup in 2015. (wry. Bah- online. Org. UK) People 1st is delivering a World Host customer service training (e. G. The successful event 2010 Vancouver Winter Olympics). Modern and energetic offering a comprehensive training the program can be found on DVD and CD scenario. People 1st is offering training and development for a series of industry but regarding the hospitality sector its focus is on the success key of the business, quality front-line “customer service”.
They offer support from the new entry peoples in the industry to the experience staff in order to increase their chances to promote to the top positions. People 1st created the successful lead GIF (growth and innovation funds) businesses in order to promote training, innovation and career in the industry and also economic growth. It advice the employers how to use the employees skills and gives them a high quality training program. It support also the government ministers, associations and multinational business. (www. Peoples. Co. UK) (HTTPS://www. Google. Co. UK/search? )
HASP is a non-profit organization with the aim to help and support education, it support the careers development in management, finance, IT, marketing, accountancy and is keeping up to date with the industry new trends. Its monthly magazine focus on its members reflecting the new trends, offering topics to the professional resources. BIBB is the owned BI organizations who offers qualifications to the license retail sector available across I-J. “Members should be clear that we represent them and their views in influencing Government policy and importantly other key stakeholders in the industry.
It’s important that BI looks, to the next generation of members and establishes a credible route to market for young people who aspire to work in this great industry’. Tim sees the role of BI as raising the reputation of the industry as a valued career, said Tim Helmet BI, Chief Executive. (http://Bibb. Bi. Org/Bibb- supplementation/whoso-who-in-Bibb) City and Guilds of London has been the main provider of qualifications for those waking in food preparation and cooking, food and beverage services, front of the house and accommodation services.
On average its awards between 50,000 – 60,000 artifices a year in the sector. 2. 1/PA It is well documented that the hospitality industry is an important part of the I-J economy. Is an estimate that over 500,000 people are employed in the industry. As the industry grows not only need more staff, are required a variety of skills for different occupations, who needs to expand and meet the customer expectations. E. G. The hotel managers are no longer seen as “good hosts” . Hey need to be good team leaders with strong technical and financial skills, capable to assume a wide variety of responsibilities from training to the development of customers and staff relations. They need to have as well a multi-cultural approach to business operations and the ability to cope with stressful situations. It is estimate that the number of young people will increase so training and development is crucial in order to support the industry and also for volunteers, seasonal workers or part time workers.
For the new entry in order to start a career in hospitality the minimum requirement are a good command of English, good communication skills, positive attitude, friendly approach, customer oriented and hard working. An increased attention need to be given to the ethos of advertising, selection, recruiting, induction and training specially for the staff who comes from outside I-J due to the establishment of European single market, and finding solutions to the problems of a decreasing supply of young people coming in the industry and the effort directed towards reducing the high level of labor turnover experienced by the sector.
If for new entry staff are not any specific academic requirements Just the willing to work hard and a positive attitude, for public facing role employers prefer candidates who have previous experience even certifications and qualifications in a customer revive environment and show good skills and the appreciation of service quality.
The industry offer possibility to work in a full time or part time basis, fix program or shifts, employing many woman’s and young people and allow them to move throw the certain areas of the industry. (Managing Projects in Hospitality Organization, Tread Richard and Co. , CLASSES) Core occupations The sector employs both a large number of core occupations (specific to the sector) and additional occupations (found in most sectors).
The following provides employment numbers for the sector’s core occupations: Kitchen and catering assistants (402,200) ; Chefs and cooks (273,200) ; waiting staff (235,200) ; Bar staff (196,100) ; Restaurant and catering managers (158,200) ; Housekeepers and related occupations (59,800) ; Hotel and accommodation managers (58,400) ; Travel agents (47,600) ; Publicans and managers of licensed premises (43,500) ; Leisure and theme park attendants (24,000) ; Conference and exhibition managers (22,400) ; Travel and tour guides (16,600) ; Hotel porters (12,100) ; Travel agency managers (8,500 (www. People’s. Co. UK/research) 2. 2/PA City and Guilds London Institute offers qualifications for front of the house services, food and beverage operations, chefs and food preparation, accommodation. The Business and Technician Council (BITE) is another key organization which provides awards for all level of competence. The number of individual obtaining qualifications year. Hotel and Catering Training Company (HCI) and the Hotel, Catering and Institutional Management Association (WHICH) are others institutes who offer qualifications for the industry staff.
Managers in the hospitality industry are educated and trained through a wide variety of routes. The awarding bodies involved at these level include BITE, the Council of National Academic Awards (CANAAN), the WHICH and the university sector. Separate arrangements exist in Scotland in the form of the Scottish Vocational Education Council (SCOTER). Exist two significant reports published who concerned mainly on management education. The first analyzed the management education in USA, Germany, France, Japan and I-J.
The founded argued that management group in the overseas are more likely to have been educated to a higher level and are more likely to have benefited from formal and systematic leslies for continuing education and development than in the I-J. The report recommended that leading organizations should act as role models of good practice and that individuals should secure higher level of education. The second report provided a thorough appraisal of management in the I-J.
Its findings showed that although there was general willingness opportunities to consider new of approaches, Britain’s management development opportunities of their competitors. It was recognized that management education could greatly improve the effectiveness of managers on average a British manager received only ewe days formal training per year. NV (National Vocational Qualifications) have been designed to offer qualifications in the industry from entry levels to the top management positions, so everyone can become better and improve skills and knowledge by getting NV accredited. Managing Projects in Hospitality Organization, Tread Richard and Co. , CLASSES, IPPP) 3. 1/PA PESTLE analysts The political environment The political environment is important for tourism companies, because there are laws, rules and tactics. Therefore, it is important to establish the place of political rower in tourism and how political power to influence the future and the effects of these tactics. It is also important to identify the level at which an organization operates in a political tour.
For example, a Belgian tour operator will face a political environment of local government, national government and EX. legislation. Additionally, you will have to face political environments in the countries whose destinations are included in bid. Economic Environment. Tourism service providers will find that international economic environment affect are given by hotel chains like Best Western (U. S. ) and Intercontinental Pan), aeries, and Routinely (UK / France) and Korean Air (South Korea) and holders of tourist attractions like Disneyland (USA, France).
Socio-cultural Factors influencing the socio-cultural tourism organizations are related to the size and population, social class, attitudes and values. Demographics deals with the study population and the population is important for tourism organizations for two reasons: First, the population is a key factor influencing demand for tourism organizations. Secondly, labor organizations supporting tourism is derived from the population. For example, a country with large population represents a potential racket for tourism services and one in which economies of scale can be achieved.
Technological environment- collecting technology, dissembling technology, shorting reprocessing and use technology is a technological environment provides tourism organizations both opportunities and threats. Opportunities resulting from technological development can be found in cheaper supplies in improvement of goods and services or to better marketing. Legal environment – such as vast protocols, rules and regulations, standards, contractual issues, planning system, facilities permitting, product stewardship isolation, landfill restrictions (liquids, tires, pretreatments.
Environmental factors – peak oil (oil reserves), virgin resource and landfill availability, exploitation impact (damages to the ecosystem), climate changes (future temperature, rise and impact), weather change, carbon balance recycle vs.. Virgin material. (David P. Baron, Business and its Environments, fourth edition IPPP) 3. 2/PA It has long been committed and only hotels under construction are increasingly using all kinds of green technologies. In addition, these environmental initiatives applies not only to expensive hotels in the world, but also in CICS countries.
One of the most developed areas – reducing the cost of electricity, more hotels now use LED bulbs, which although more expensive, but consumes 3-4 times less electricity. Life in LED too. To consume less electricity utility to create a mini panel. In regions with good wind level, many hotels are increasingly equipped with turbines. Rarely used other alternative energy sources. More hotels in Astrakhan use generators on bodiless. In the book “Gaga Nap Valley” heat lighting technologies used, increasing use of cars with alternative engines. So, increasingly, to go to a hotel used by electric vehicles