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Impact of Competition in Hospitality Companies - Report
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Added on 2020-01-23
Impact of Competition in Hospitality Companies - Report
Added on 2020-01-23
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Research Project1
TABLE OF CONTENTSTask 1 Proposal.................................................................................................................31.1 Rationale of research...............................................................................................31.3 Review of literature..................................................................................................31.4 Proposed methods for research...............................................................................51.5 and 2.1 Gantt chart .................................................................................................7Task 2 Project implementation and presentation .............................................................82.2, 2.3 Justification of research methodology that has used and collate and analysedata to address the research question and objectives..................................................83.1 Description and evaluation of factors that affected the achievement of presentresearch project............................................................................................................173.2 Interpret and analysis of the results.......................................................................183.3 Recommendation based on findings .....................................................................21References.......................................................................................................................23Appendix .........................................................................................................................232
TASK 1 PROPOSALAim“To assess the impact of competition and regulation on market performance ofhospitality companies”- A study on Marriott UK. Objectives To assess the impact of competition on sales of Marriott UK. To identify the effect of regulation on the profitability of organization. To recommended ways through which Marriott can enhance its marketperformance.1.1 Rationale of researchIn the present scenario, it has become very difficult for the organizationsoperating in hospitality industry to attract customers and increase sales(Jones, Comfortand Hillier, 2006). Further, it can be stated that along with high growth rate, industryalso experiences intense level of competition among all the businesses (Jin-zhao andJing, 2009). The present research will help to assess what kind of impact doescompetition have on the sales of business operating in hospitality industry. On the otherhand, in last few years lots of regulations have been developed which all theorganizations in this industry are required to follow (Blomme, Van Rheede and Tromp,2010). This research will also result in identifying the effect of these regulations on theoverall profitability of businesses. Two factors which inspired researcher to select thisresearch are increasing competition and strict regulations in the hospitality industry. 1.3 Review of literatureImpact of competition on sales of businesses in hospitality industry In the modern era, high level of competition in hospitality industry has emergedas one of the biggest threats for all the businesses. Nowadays, it is not easy forcompanies to retain their old customers and attract new ones. People in market areavailable with a wide variety of products and services available to choose from. As perthe view of Claver-Cortés and et.al., (2007) competition has direct impact on the overallsales of business enterprise. A competitive market is the one which has many buyers
and sellers. Almost all the businesses provide same kind of products and services in thehospitality industry (Claver-Cortés and et.al., 2007). Zhu and Sarkis, (2007) hasexplained that low number of firms increases sales of businesses as people in markethave very fewer alternatives available with them (Zhu and Sarkis, 2007). However,Barrows and Power, (2008) argued that high level of competition can force a firm topush its efforts to exceed its normal limits. Along with this, it also encouragesorganizations to think something creative and innovative. Businesses in hospitalityindustry always try to offer something new and unique so that they are get rid of intensecompetition and increase their sales (Barrows and Powers, 2008). It can be stated thatcompetition has affected the overall sales of organizations and now they are finding itvery difficult to attract customers. 4
Affect of regulation on profitability of the organization Nadiri and Tanova, (2010) has explained that businesses are required toconsider lot of codes, regulations and laws before operating in hospitality industry.Regulations related to fire, working environment and food hygiene need to be followedin the best possible manner (Nadiri and Tanova, 2010). It can be also stated that breachof all the laws and regulations can result in heavy fines and penalties on businesses.This lowers down the entire profitability as majority of their profits are being spend onpaying fines and penalties (Tavitiyaman, Qu and Zhang,2011). In hotels, one of themajor threats to employees, customers and property is associated with fire. Therefore,regulations such as (Fire) (Safety) Regulations 1988, Gas Safety (Installation and Use)Regulations 1994 etc. have been developed. As per the view of Cho and et.al., (2006)organizations are required to use effective measures to deal with issues related to fire atworkplace (Cho and et.al.,2006.). On the contrary has Becerra, Santaló and Silva,(2013) argued that Health and Safety at Work Act 1974 is one of the major regulationsamong all of them. Organizations operating in hospitality industry are required to takenote of those substances which can result in illness, harm or injury to all the workers(Becerra, Santaló and Silva, 2013). Businesses also need to provide workers withprotective clothes at the time of handling any kind of harmful substances. This increasesthe overall cost of businesses and lower down their profitability. Therefore, it can bestated that such regulations are negatively affecting the overall profits of businesseswhich are operating in the hospitality industry. 1.4 Proposed methods for researchResearch approach: Research approach can be defined as the way in which ascholar carries out his/her study (Chilisa, 2011). In the present research,inductive approach will be used to accomplish objectives of this study in the bestpossible manner. One of the main reasons behind using inductive approach isthat it will provide more accurate information regarding the impact of competitionand regulation on market performance of hospitality companies. Research philosophy- There are two different types of research philosophieswhich are interpretivism and positivism that can be used by the scholar to carry5
out study (Terrell, 2012). For the present research, interpretivism philosophy willbe used. The reason behind using this philosophy is that it will help indetermining what kind of impact does regulations and competition have on theoverall market performance of Marriott. This will also allow the researcher toaccess information from the managers of hotel.Data collection- Researcher will be using both primary and secondary sources tocollect information regarding the subject matter. Rationale behind using theabove stated sources is that it will help in getting more reliable information on theimpact of competition and regulation on market performance of hospitalitycompanies. Secondary sources will provide researcher with generalizeinformation related to the topic. On the other hand, primary sources will help ingetting more specific information about the selected organization. Primary datawill be collected by five managers of Marriott UK with the help of a well-structuredquestionnaire. Books, journals and online articles are some of secondary sourceswhich researcher will be using to collect information. Sampling- Sampling can be defined as the process in which researcher use anappropriate method to collect data from primary sources (Hine and Carson,2007). Non-probabilistic and probabilistic are the two common types of samplingmethods which can be used to collect information. In the present study,purposive sampling which is a technique of non-probabilistic sampling methodwill be adopted. Further, reason behind choosing this technique is that it willsupport in getting the best and more reliable information suitable with thepurpose of this research. The sample size is going to be five managers ofMarriott. It can be stated that selected sample will help in getting usefulinformation about the topic under investigation. Data analysis- Data analysis can be termed as the method of analyzinginformation collected from various sources in order to get the findings (Terrell,2012). In the present study, qualitative technique of data analysis will be used.The reason behind this is that information will be present in non-numeric form6
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