Hospitality Establishments

Introduction

The hospitality industry is recognized as the propeller of the developing countries. Many business analysts gave importance to the hospitality industry as an emerging industry that can help the development or maintain the balance in the economy. Because of the recognized contribution regarding the application of the hospitality to be a necessary aid of the country, many projects are established with the same objective. Fostering the overall economic development is not an easy task, therefore the business leaders’ attempts to tend first the improvement of the hospitality industry.

Background and Problem Statement

The global hospitality sees the various qualities in service and flexibilities in order to answer the globalization and the challenges. Improving the quality and boosting service levels, the customer satisfaction can be increased. In addition, gaining the flexibility to scale up fast in the face of seasonal volume peaks can be the most likely result. However, still most of the hospitality businesses are still suffering in losses, and as an answer, there will be an action for merging and acquisition.

Research Objective

The objective of the study is to understand the reasons why most of the hospitality businesses are undergoing in the merging and acquisition as their option to avoid the total losses.

Literature Review

A variety of factors, including difficulties in recruiting sufficient numbers of challenges that led to less than optimal quality, capacity and flexibility in the hotel company’s contact centre operations. With the corresponding peak in travel, the company experienced huge surges in reservation and transfer-related calls—and found it unable to deal with the calls as successfully as it would have liked. The company was eager to ensure higher quality and service levels in its inbound customer contact. Time was of the essence. Aware that the client’s needs and the resulting solution had to be fully identified as soon as possible in order to begin implementation, multiple levels of management attended client meetings from the very beginning, bringing their vast, coordinated expertise to the table and there are other still various problems that can happen in the hospitality industry (Anderson, Carlsen, & Getz, 2002).

The action for merger and acquisition is one of the answers towards the globalization, technological developments, and deep market competition. Making this action also deserves to face various challenges and strategic planning. Part of the scope is acquiring the needed strategic tool that is appropriate for expanding and entering in a new market, which involves the acquisition of new technologies and establishing a new organization with power and resources (Bhat, 2009).

Merger and acquisition can be the appropriate answer in the economic changes and challenge, the main idea for the business venture is eliminating the competition. With the joint powers and process, the competition in the market will lessen and the new business might make it on the top. Another factor might be in the sense of cost efficiency which is good in the business. As addition that they can even control the market behavior because knowing what the real preferences of every individual are is the start of success. The improvement of earnings and stability for a business is always the main focus of the business. Without improvement, all the efforts and expenses is nothing. It is important that the business is capable in dealing with the business issues and challenges because if they endure all the problems, the stability of the business will be secured (Mullins, 2001). The people should understand the objectives of the business when entering the territory of merger and acquisition. It is essential that they comprehend to the factual needs of the business especially when company is the one being acquired. The new business is expecting to have a proper utilization of all the available resources. In coordination to this is the prevention for exploitation of the utilized and even the unused resources and assets. As the improvement of the business became successful, the improvement of the profit generation will results in the achievement of target savings and the costs will be monitored. The entire objective of a merged and acquisitioned enterprise is like a domino-effect, the lost of one will affect the other (Bhat, 2009).

Methodology

The proposed method of the study is the use of the secondary information. From the past literatures and application of the various strategies of the business leaders, the appropriate answer regarding the hospitality and the action of the merging and acquisition can be met.

References:

Anderson, T., Carlsen, J., & Getz, D., (2002) “Family Business Goals in the Tourism and Hospitality Sector: Case Studies and Cross-case Analysis from Australia, Canada, and Sweden”, Family Business Review, Vol. 15, No. 2

Bhat, P., (2009) “Impact of Mergers and Acquisition on Employees and Meaning of Mergers and Acquisition”, India Law News Accessed 22 March 2010, from http://www.indlawnews.com/display.aspx?4495

Mullins, G., (2001) “Mergers and Acquisitions: Boon or Bane? Central Wisconsin Economic Research Bureau”, Division of Business and Economics. Accessed 22 March 2010, from University of Wisconsin http://www.uwsp.edu/business/CWERB/2ndQtr01/SpecialReportQtr2_01.htm