BUS3005 - Strategic Drivers

Strategic drivers
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TABLE OF CONTENTS
Introduction .....................................................................................................................................3
Identification of drives and barriers affecting development of hospitality industry .......................3
Conclusion ....................................................................................................................................10
References......................................................................................................................................11
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INTRODUCTION
In the present scenario, hospitality industry has become one of the leading
and most potential industries in the world. Further, it can also be explained that this
sector has a significant impact on the economic growth and development of a
country (Kusluvan, 2006). It also provides aid to local economies and supports them
to overcome from issues such as unemployment. The present report explains
identification and analysis of important drivers and barriers which affect the
hospitality industry. Along with this, it also highlights the comparison between
hospitality industry of UK and USA. Two different models which are cage model and
the Yip model has been used in this study to become aware about the key drivers
and major challenges which has been faced by the hospitality industry.
IDENTIFICATION OF DRIVES AND BARRIERS AFFECTING
DEVELOPMENT OF HOSPITALITY INDUSRTY
Hospitality industry provides a wide range of products and services to people
in the market. It includes restaurants, hotels, amusement parks, country clubs,
resorts, cruise ships, etc. One of the main purposes of businesses operating in this
industry is to gain high degree of customer satisfaction (ENZ, 2009). This is the only
reason why hospitality organizations make frequent changes in their products and
services in order to meet the needs and demand of people in the market. In last few
decades, the entire industry has grown significantly as more private organizations
have entered in it. Parsa, (2015) has explained that the entire image of a country
get affected by the operations and activities of hospitality industry. In simple words,
it can be stated that better products and services will enhance the overall image of
a nation whereas poor services will result in degradation of the same (Parsa, 2015).
Key drivers in hospitality industry
In UK, hospitality industry contributes a lot in the overall development of the
country. However, Lee-Ross and Lashley, 2010 has argued that like other sectors,
hospitality industry is also facing various kinds of issues and challenges. The nation
is having more than 10000 hotels which are operating with the purpose of satisfying
needs and demand of tourists (Lee-Ross and Lashley, 2010). As per the views of

Sloan, Legrand and Chen, (2013) key drivers include marketing, sustainability,
technology, etc. It can be stated that marketing has started to play an important
role in the success of businesses that are operating in hospitality industry. The
growing rate of internet and mobile users has provided organizations with more
potential and cost effective platforms to advertise and promote their services
(Legrand and Chen, 2013)). Nowadays, businesses are able to interact with
customers with the help of social networking sites such as Facebook and Twitter.
Organizations are able to display their new products, services or any offers with the
help of these sites. According to Pizam and Holcomb, (2010) one of the major
benefits of using social media to market products is that it helps the firms to reach
at mass audience easily. Another key driver linked with hospitality industry is
sustainability. Further, it can also be explained that with the increasing rate of
pollution and scarcity of resources, businesses are now required to utilize resources
in an appropriate manner (Pizam and Holcomb, 2010). In addition to this, they are
also required to ensure the fact that their operations and practices do not have any
kind of negative impact on environment as well as on society under which they
operate.
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