Researching Tourism and Hospitality Operations Essay

Researching Tourism and Hospitality Operations - Essay Example In 2007, Isadore Sharp sought an exit from this long-term investment, selling the multi-national Four Seasons properties to Kingdom Holding, owned by Al-Waleed bin Talal from Saudi Arabia and Cascade Investments, controlled by the software and technology guru Bill Gates. Upon taking this business private, Four Seasons Hotels and Resorts were able to internalise international expansion efforts, redevelop the business model, and restructure financial governance of the business without undo pressures from international investors in the stock market. However, this acquisition of Four Seasons in 2007 came at a time just prior to the global recession occurring between 2008 and 2010, which radically changed the predictability and revenue growth opportunities for this luxury hospitality business. The business’ long-term profitability has been impacted by a series of government-imposed austerity packages in European nations, reforms in the banking sector in Asian and North American cou ntries, and changes to consumer sentiment about luxury travel and tourism and its correlation to their personal finance availability. Hence, the economic and social conditions in the luxury tourism sector suddenly changed, creating a new set of pressures on Four Seasons to sustain its existing business model whilst still considering redevelopment of its long-standing brand to better service the contemporary consumer in the post-20th Century tourism sector. This report examines the macro- and micro-level factors impacting many dimensions of the Four Seasons value chain, its strategic focus for long-term sustainable growth, and marketing in a very saturated and dynamically competitive international hospitality sector. The report further examines the marketing prowess of Four Seasons, the business’ current and long-term operational strategies, and the characteristics of consumer behaviour that impact Four Seasons’ service ideology, and cost structures impacting profitabil ity with this business. 2.0 Macro and Micro Analysis of the Industry To better understand the performance and productivity of the current Four Seasons Hotels and Resorts business model, it is necessary to examine the macro- and micro-level factors that impact sustainability of competitive advantage influenced by industry conditions. 2.1 PESTLE Analysis POLITICAL The influence of political factors for Four Seasons is disparate, due to the dynamics of being a multi-national business with presence in North America, Asia, Europe and Australia. In Asia, the hospitality sector has significant difficulties sustaining hospitality-centric operations without the direct support of government. For instance, in India, the government imposes substantial taxation on luxury hotels, which raises the costs of operations and increases prices along local supply chain networks. It is even difficult to establish strategic alliances or joint ventures with major tourism airline carriers in many Asian count ries where Four Seasons operates, thus impacting co-branding strategy opportunities and the ability to create periodic promotional incentives to entice more consumer interest in bookings due to the government influence and government-imposed costs. However, in some countries, such as Canada (Four Seasons is headquartered in Ontario, Canada) and Europe, governments provide incentives for consumers to engage in shopping with guarantees that they can reclaim the

Supply chain management and SC partnership Essay

Supply chain management and SC partnership - Essay Example He also believed that companies should own and control virtually every aspect of its business. Late 1970's and early 1980's witnessed the development of the manufacturing strategy paradigm. The thinkers of the time argued that a company should devise a focused strategy, creating a focused factory that performs a core activity that the company is best at. Late 1980's saw the development of quality management for setting international quality standards. The International Organization for Standardization created the ISO 9000 certification standards with this purpose in view. Innovations in the process of operations led to the development of Business Process Reengineering in the 1990's. Companies saw the need to become lean in their manufacturing process to remain competitive and BPR aided by helping them eliminate the non-value added steps in their manufacturing process and computerizing the remaining ones to achieve low-cost and higher quality. Then came the Supply chain Management; applying a total system approach to managing the flow from suppliers through factories and warehouses to the end customers. Internet aided the progression during the late 1990's bringing supply chain management to its current level as an essential element of business activity (Chase, Jacobs and Acquilano, 2004). Supply-chain management (SCM) is a method for integrating a manufacturer's operations with those of all of its suppliers and customers and their intermediaries. SCM seeks to integrate the relationships and operations of several-tier suppliers in meeting necessities such as quantity, delivery and the timely exchange of information (Gunasekaran and Ngai, 2004). Supply Chain Management Supply chain management is the discipline of managing the movement of raw materials into an organization and the finished products out of the organization. SCM is an approach that encompasses every process concerned in manufacturing a product, from source to consumption. There has to be a linkage between the suppliers that provide inputs, manufacturing and service support operations that transform the inputs into products and services, and the distribution and local service providers that localize the product (Chase, Jacobs and Acquilano, 2004). This involves building a network that allows a flow of materials, without a break or hitch, throughout the process of production. This flow is fuelled by co-operation, and co-ordination among the diverse channel partners. Supply chain management thrives on improving efficiency and reducing cost of production by focusing on the core competencies of a company. Functions such as procurement of raw materials and distribution of products are outsourced to companies that are better equipped and more cost-efficient to perform them. Strategic planning is necessary to develop a network to monitor the supply chain so that it is efficient, costs less and delivers high quality and value to customers. Information technology has helped integrate the various components of SCM by building a network that aids in sharing necessary data between all supply chain partners within a system. A company