Strategic Management in Hospitality and Tourism sector

Strategic management has turned into a common phenomenon in today's manufacturing sectors and services industries. Now, with the increasing globalization effect not only the developing industries but also the assistance sectors have demonstrated success of tactical management. Through the recent downturn period the majority of the hoteliers found it difficult to load all their hotel room. This is false with one hotel or an individual country, every country was facing the heat of financial meltdown. The amount of occupancy rate atlanta divorce attorneys hotel was suprisingly low let it be a 5 star hotel or without the star, sill there is difference in the occupancy rate on the list of hotels within the country. The sector or the industry that includes a competitive benefit can appeal to more customer compare to other. Hospitality and Tourism areas can also develop core competency for permanent sustainable expansion.

The competitive advantage is a state where the manufacturer of something or produce has captured the entire marketplace talk about over its challenger. However, the producers are often come in contact with two impasses for the forming of a competitive gain. First of all the superior industry option has recently gone and the second reason is that small institution does not have capability to support in accordance with bigger companies. But both these hypotheses are wrong! On the other hand, the accessible companies, whether they are big or small, do not need rivals (Dess, et. al. , 2005). Corresponding to Porter (1998), there are two way to build up competitive advantages; differentiation and cost control. By developing little advantages and being the average competition is a stuck in the mid way position. Various other writers dispute that the polarized approach like this is very dangerous to follow. There is proof that it is possible to attain Porter's both types of competitive advantages. Tourism sector and hospitality are one of the sectors where both the competitive advantages like improving on cost, dependability, technology and quality. Its very long time now from when developing companies are formulating strategies to achieve competitive advantages. But now the services sectors have also regarded the worthiness of proper management for achieving competitive advantages. In a very services corporation the concentration remains on organizational resources and skill for developing competitive advantages. The hospitality and tourism sector is one of the same industries where the competitive advantages can be achieved through formulating an appropriate strategy which will not only improve its resources performance but also helps to develop new skills in its manpower (Bharawaj et. al. , 1993). The decrease in the costs of travel and communication have accelerated the expansion of global trade and beginning new possibility for world-economy. These reducing costs assist in smoothing the progress of the trade motion of goods, service and also to provide tourism services. The boost in the service of IT areas has given go up to get hold of and broaden services throughout the world. Consequently a complete selection of services is becoming easy to copy and tradable, in the worldwide market. This Global financial incorporation helps in improving the globe status and starting new vistas of job opportunity across the world (IBM, 2006).

As the competitive edge grows, the market became more adoptable with this regular challenge. It will help the enterprise to target more on the on growing tendencies and demand of the business enterprise. This method seeks an endlessly record of your competition and their future plan of action. This example may be recognized after passage of certain time period and by the demand of consumers in regard to volume of situation. The company must choose a stretchy patterns so that to endure in a specific situation (www. va-interactive. com). Sustaining the competitive advantages in hospitality and tourism industries is more difficult than developing a competitive advantages. Sustaining competitive advantages is a continuous process, this process can be divided into two parts the first is to work in the same path and the second reason is to develop some other competitive advantage before the time the competition discover its competitive advantages and copy them. The assessment of both the techniques by their degree of difficulty may show that the next process is more challenging than the first one. In the event the rivals are successful to duplicate that competitive benefit, it would not stay with the business for long (Ulwick, 1999). So, it must improve its competitive benefits continuously for retaining it for long term. Along with that an organization also offers to pay proper attention to keep its competitive gain secure. In hospitality and tourism sector this can be more difficult than creating a new competitive advantages over a period. So, an organization needs to create a new competitive advantages over and over to be forward among its competition.

The rising need of strategic management is induced by numerous ongoing operations. The growing contest in every industries has made the task complicated for fighting in those atmosphere. The rises in the most advanced technology, communication and inexpensive travelling and have given rise to numerous world-wide business. This technical growth has gather speed in the worldwide economic climate (Ulwick, 1999). During, the previous 20years people have shown their much attention in deliberate management. A strategy can be designed based on two actions: By causing a managerial strategy in order to attain the brief or long - term goals or as an example that come in some result as time passes and, finally, it's the basic reason. However, in several cases some businesses do not have an effective plan based on the fast shifting atmosphere of the term (www. advertising. wiley. com). The managers however, grab the options because they are getting more aware with the defined procedure created by the organization. In such cases, the planning points out the summary of the plan of the owner of the business, and it becomes even clearer after passing of time. Regarding to Harrison and John (2008), the conventional view of school hold the idea that the managers do retort to such services, that helps in forming decisions which is reliable with a fixed plan. However, it is also said that the ideas must be purposeful. This kind of mindful strategy helps the managers to plan regarding to his proposed strategic path. Yet in dew circumstances the plan quite simply comes out from a movement of opinion. Professionals do study while they are really on work. A growing strategy is reported to be one that was not either designed or planned. According to this thought, the professionals get an possibility to learn by the procedure of doing the task (Harrison and John, 2008).

The process of planning approach, Strategy formulation is generally grouped into three levels like as industry, efficient and corporate level strategy. The vital aspects of corporate - level strategy are to describe a company's activity in a specific field by the assortment of areas where a business can do its trade in order to cope with other company competitor (www. mass media. wiley. com).

Business - level strategy formulation provides clear -cut view regarding which area should get more emphasis for doing businesses in order to get the required results. The business enterprise - level strategies sometimes are also known as as competitive strategies. The Practical - level strategies helps in keeping all the information intact with it so that to make clear how this functional wealth may be employed to do company - level planning and attain spirited advantage in relating with the marketing, businesses, and finance. On the whole, the efficient - level approach are completed to be able to increasing, obtaining, and administering organizational functions. These features are over decrease, but sometimes they are constructive for the organization -Level insurance plan where it expresses "how to deal with in those areas, " and the sensible - areas will be administer so that business targets may be fulfilled through the use of other industry planning (Ulwick, 1999). All these three level of strategy can be applied in hospitality and tourism sector, where strategy is developed for different purposes to contend and confirm their existence on local, nationwide and international level. Every level needs a different treatment which includes the answer by formulation and applying strategy of different level for attaining defined aims. Hotel industry is highly dependent on tourism and level of tourism also is determined by the quality of the assistance available in the area, in this way both these industries are inter based mostly and need strategies which can lead them on the path of progress while generating good rate of earnings. A good tactical formulation and implementation can save these industries even in the time of downturn or financial meltdown like the one the world has experienced.

Hotels and tourism business is the fast growing network among the world competitive businesses. The hospitality industry is mainly comprising businesses offering their services in providing accommodation, food and beverage, plus some kind of mixture of these activities. The business enterprise of hospitality industries provides such services, which is different from materials foodstuffs because they are made for the goal of immediate intake (Olsen, et. al. , 2008). In addition they vary from other service in amount of ways by giving accommodation for those who are traveling away from home in regard to the local home, However, restaurants generally provides services for both travelers from outdoor and local visitor. Providing an event also takes on an important role in the hospitality portion of business. Hence, for expanding the size of the business constructions of hospitality industry has increased the world-wide development, such as franchising, property management, direct possession by chains, and consortia. In today world the hospitality industry is becoming more sophisticated and sophisticated in terms with their section of work and movement. The term "Travel and travel and leisure" is thought as an extensive term used for the intended purpose of number of interconnected industry works supplying their hospitality services. Tourism is acknowledge as the largest unit across the world, in fact it is believed to be the second major work professional to the export business and the 3rd biggest to retail sales in the US (Olsen, et. al. , 2008). It is also said to be the first, second, or third major workplace in 30 out of 50 state governments. As well as the conventional form of hospitality trade of hotels and eatery, the travel and leisure sector are also spreading in the areas like diversion firms, travel representative, tour worker, re-creational project car rental firms and airlines, cruise lines (www. media. wiley. com). The main area of matter in this textbook is to capture those areas of hospitality businesses that are chiefly affianced in offering food, destination to stay and going facility to their guests.

Schuler and Jackson (2007) has worked to develop a role model between the competitive strategy and HRM, so that to know a link between competitive strategy to be able to get the competitive edge. The HRM approached was adopted to learn where the firm seeks to build up product or services which are different from their competitors. The main target is given on what the companies are offering in order to establish themselves new and various from others. Group adopts such method of develop a host where technology is permitted to boost the business. However, the employee seeks the role habit in such circumstances where there is bare minimum risk factor included. The HRM strategy targets the quality improvement strategy wherein companies seek to get competitive edge by enhancing the grade of product and services. These solutions once again factors to certain HRM tactics to provide quality support to the organization. These practices includes the encouragement of reviews system, decision making, teamwork and taking responsibility which is said to be the vital part of employee's job information and versatile job categories. The objective of these techniques help in setting up a co-operative atmosphere for the attainment of organizational goal (Nickson, 2007).

Change is not any easy process; it need full commitment and co-operation from the real human resource department to deal with manpower issues, which might create problems in the road of strategic change (Jackson, 2009). The change in the tactical route would be initiated by the very best management, just as most of the organizations top management is responsible for taking strategic decisions. Any change in direction of tactical would also be possible after their arrangement. Multiple issues can emerge whenever a business wants to improve it strategic position (Pettigrew and Whipp, 1998). The issues can be human, financial, and Infrastructural resources related. Out of most of them the human resources related issues are the main as the efficiency of the business will rely upon the efficiency of its employees. It is human resource who grips all the actions from decision making to the execution. The common issue which increases due to change in strategic course is non-acceptance of the decisions by the professionals. The managers who will be the really visitors to implement strategies feel that the change may affect their performance (Denison, 2001). Moreover, they think it is tiring and difficult to persuade their staff to change the process of their work time to time. In the event the change relates to the procedure efficiency and automation, operation personnel would be ahead of everyone to oppose your choice as the decision will impact their jobs and the business may cut the jobs down the road. The other organizational personnel may not find the strategic direction change favorable to their long lasting occupations (Jackson, 2009). The hospitality and tourism sector can create manpower established competitive advantages, which wouldn't be possible if it manages to lose it real durability.

An organization can easily deal with these human resources issue by firmly taking some basic step before initiating the change process. The very best management would take note about the process that soon they will formulate and put into action a new strategic or going to change the strategic way. The top management need to take the director along with them and make them understood the necessity and need for change. After the midsection level management would be involved in the formulation process they can easily persuade their subordinates (Jackson, 2009). For taking leading level employees with the process, let supervisors and junior managers to deal with them and take rigorous activities against them who are not prepared to follow the direction (Pettigrew and Whipp, 1998). This is actually the easiest way to control change process. The alternative way can be the autocratic procedure where all the employees are required to follow the guidelines of the senior management or they need to face strict actions. Making the employees aware about the need of the change in the strategic process and providing them training to put into action the desired change can also get their heart and soul. Once employees understand the importance of change they could take interest in the proper change process and take the other fellow employees along them who are not ready to participate in the procedure (Pettigrew and Whipp, 1998). In this way this process of handling employees issue seem to be the most suitable where the HR division is efficient and also have good relations with employees. Hospitality and travel and leisure sector is totally reliant on the manpower which method adopts a smooth strategy to persuade the employees (Denison, 2001), which can work wonders if put in place properly with the sincere efforts.

Implementation of the strategic change is as difficult concerning formulate and execute a fresh strategy. The broad view also implies that change in the strategy is also the implementation of a fresh strategy, because when a business evaluate and adjust or change the strategy it must follow the same process which it follow while formulating a fresh strategy (Jellison, 2006). The first concern that an company will face would be huge investment of human being and money. Strategy formulation and implementation process is a time consuming process which requires whole lot of man hours (Denison, 2001). Implementation of proper change may end up being a financial burden for the business if it must replace the technology. Execution could also require some new skill set for this an organization has to educate its employees which may establish a costlier affair for the organization. More than that execution of strategic change may create misunderstandings on the list of employees that the organizational command is not efficient, when they take their own steps back what will happen if this current strategy would also not work. These concerns in the employees hamper their performance and hence the complete organizational performance (Jellison, 2006). This tendency may bring about the high rate of attrition leading to skilled manpower crunch. Hospitality and travel and leisure sector is highly dependent on the manpower and required specially group of skills without productive manpower it might be very difficult to sustain for any organization. Information technology may also be helpful in the execution process. If the very best management connect the change process to the every single degree of management the process would become easy to use. Step-by-step communication will keep the middle and lower level management up to date about the decisions that would be taken in the longer term (Coghlan and Brannick, 2005). This will help the management to build up mind set for the strategic change since from the initial stage so when the decision is finally approved the easily accept it and follow it.

In the finish, it could be figured the competitive advantages are extremely important for every industry and sector. Now with the change available models and increase in the globalization, hospitality and tourism sectors also has come under the same umbrella where they need to develop competitive advantages to contend in the service sector. Competitive advantages not only helps an organization to stand forward than it competitor but also to earn more by providing better cost effective service. Developing competitive advantages in the hospitality and tourism sector is not a simple process, but to preserve those competitive advantages is more challenging than that. There will vary ways by which a business can flourish in developing and sustain its competitive benefits for long-term and make them sustainable dynamic competitive advantages. In this process of change human resources play very important role, which is also the main tool for the hospitality and travel and leisure sectors.

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