Hospitality industry and entrepreneurs

Introduction In the current days, a number of factors continue to serve as impediments and opportunities for entrepreneurs when setting up businesses. More particularly, the upheavals that the entrepreneurs face when they attempt to establish businesses in the hospitality industry are increasing exponentially.Advertising We will write a custom report sample on Hospitality industry and entrepreneurs specifically for you for only $16.05 $11/page Learn More In this report, there is going to be exploring of various factors that may act as either opportunities or risks for entrepreneurs seeking to start businesses in the hospitality industry. There is going to be examining of both external and internal factors that may affect an entrepreneur who wishes to set up a business in the hospitality industry. In the conclusion, some recommendations are going to be given that may serve to help overcome challenges that may be faced when setting up a business in the hos pitality industry and capitalising on opportunities. The business environment The business environment impacts in a significant way on the growth of the SMES that are just coming up (Delmar and Wiklund, 2008). A larger number of the business organisations in the hospitality sector are SMEs. The definition for the business environment is given as the entire variables or factors, internal as well as external to the firm, which may have a continued victorious existence of the firm (Smit et al, 2007). These factors, both internal and external, may either offer opportunities or challenges and risks to a business organisation (Shane Cable, 2002; World Bank, 2006). An argument was presented in which it is pointed out that in order for an SME that is just coming up to expand, it is imperative for it to not just make the inside environment to be stronger but to as well make the outside environment to be strong as well (Beck Demirguc-Kunt, 2006). Internal environment These refers to those f actors in an organisation’s environment that are, to a large extent, under the control of the organisation (Phillips Wade, 2008). One of these factors is access to finance. The firms in the hospitality industry, just like in any other industry, require financial resources so that they can be able to start trading and to finance business growth. As Cassar (2004) points out, lack of availability or access to finance can serve as a big constraint to business growth. New SMEs can receive finances from the owner’s wealth, or from the external sources which may include friends and family members and this are informal sources. Finances can also be obtained from the lending institutions such as banks or from private equity organisations as well as venture capitalists which are formal sources of funding (Olawale Garwe, 2010, p.731).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More An other internal factor is management skills. It is pointed out that decision-making competencies involves having attitudes, skills as well as knowledge which make a contribution towards developing personal efficiency (Hellriegel et al, 2008, p.31).It was found out by Martin and Satines (2008, p.1) that not having management understanding as well as skills are major causes of the new firms failing. Location is another factor that can be largely under the control of a firm. It is pointed out that where the business is located has an impact on market prospect and expansion opportunities of the business organisations that are just coming up (Olawale. Garwe, 2010, p.731). The geographical closeness to the critical suppliers or buyers creates a kind of better environmental scanning which makes it possible for the new businesses to identify opportunities in the market in a more easy way and be able to capitalise on them (Mahadea, 2008). According to Dahl and Sorenson (2007), this has an im pact on the market potential of the new businesses. Another factor that a firm should consider is â€Å"investment in technology and cost of production† (Olawale. Garwe, 2010, p.731). Investing money in technology and ensuring that there is keeping up with IT is, on an increasing level, imperative for any firm. The role that is played by technology is critical for the development of an SMEs that is just starting up (Wong, Ho Autio, 2005). Technology does not just assist in developing of a â€Å"multi-pronged strategy†, it as well assists in the maximisation of the business opportunities†( Olawale. Garwe, 2010, p.731). The external environment The political, legal and technical factors and Government Policy The theories give a demonstration of the impossibility of separating the outside or external environment from the process of entrepreneurship (Zapalska Brozik, 2007, p.143). External environment concept is meant to encompass the influencing factors as well as elements that are external to the boundaries of the organisation which have an effect on the actions of the organisation. It as well encompasses wide-ranging technological, economic, political-legal, and socio-cultural factors which offer wider context for the entrepreneurial development as well as growth (Zapalska Brozik, 2007, p.143).Advertising We will write a custom report sample on Hospitality industry and entrepreneurs specifically for you for only $16.05 $11/page Learn More For instance, evidence was found the outcome of the â€Å"government regulations, policies, and procedures as well as political and legal forces, attitudes, and public support for entrepreneurship† (Fogel, 2001, p.105). The external forces may have an effect on entrepreneurship through loan availability, physical facilities, technical assistance and information on the achievement of firms that are just starting up (Zapalska Brozik, 2007, p.143). There has been adva ncing of a number of models which make an attempt to label and offer explanation of the several development stages of the entrepreneurial firms. The organisational lifecycle models as well as development stages give out information in regard to the kinds of problems that are faced by business organisations in the course time and give out a suggestion that every development stage is linked to particular problems (Zapalska Brozik, 2007). The researchers in the field of entrepreneurship have committed much effort to have the understanding of the relationship that exists between business environment, the strategy for the fresh venture, as well as performance (Zapalska Brozik, 2007). As on one hand there has been a discussion about these relationships in a theoretical as well as empirical way in the market economies, on the other hand, it is imperative to have consideration of the relationship that exists between business achievement and the business environment within transitional eco nomies (Porter, 1989, p.51). Several features of the business environment have been shown to have an influence of the performance of the new business enterprise (Zapalska Brozik, 2007, p.144). Among the environmental influences which have been identified are the existence the factors like the accessibility to capital, other entrepreneurs, technically skilled labor, suppliers, clients, government motivation for setting up business, equipment, plant, supportive home culture, support services as well as desirable living conditions (Zapalska Brozik, 2007, p.144). Other studies undertaken in various nations show that entrepreneurs indicate that the nations can bring up the level of the chances of new business enterprise start-ups business expansion in several ways (Zapalska Brozik, 2007, p.144). These encompass maintaining rules or regulations at a lower level, giving out tax breaks among other possible incentives, and availing financial resources to the start-up entrepreneurial ventu res offering training as well as counseling services to them (Zapalska Brozik, 2007, p.144). There are also studies which show that entrepreneurs encounter a number of obstacles like not having adequate information about a number of business aspects, large taxes, inflation rates which are high, and not having financial support (Zapalska Brozik, 2007, p.144). Such findings give a suggestion of a number of policy decisions for setting up businesses that are small in size.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The policy decisions may encompass offering business enterprise capital funds, offering incentives that are tax-based and government procurement programs, protecting propriety ideas as well as innovations, encouraging entrepreneurship through educating organisations, and bringing down the level of barriers to entry (Zapalska Brozik, 2007, p.144). Cultural Factors Jordan (1997, p. 529) points out that, at the outset, various factors may act as challenges, when attempting to venture in hospitality industry. Cultural and gender considerations have been in the forefront in running business. While it is recognizable that the world has made strides in enhancing equal opportunities for both men and women, the latter are still challenged in the hospitality industry (Birley,1989, p. 35). Women experience clash of roles in the workplace and at home which render them unable to manage such firms effectively. According to Kirby (2003, p. 121), it is difficult for women to strike a balance betwe en work and home responsibilities. Research has shown that European women who have ventured in the business sector devote a huge amount of time to the fulfillment of domestic roles. This represents three folds of men’s time that goes to performing domestic roles (Morrison Thomas, 2004, pp. 23: Purcell1997, p. 123; Schein 1973, pp. 95-100). It is pointed out that when women combine both domestic and work roles, it is an uphill task for them to begin entrepreneurial endeavors (Jackson, 2001, pp. 31-40). As such, it denies women entrepreneurs the opportunity to gain insightful experience of establishing a business in hospitality industry. This is not only a challenge in the short run, but it limits women from exploring other opportunities within the hospitality industry that may require such experience (Liff Ward 2001, p. 31; Vianen Fischer 2002, p. 327). Demand Seasonality The firms in the hospitality sector are normally affected by the cyclic demand fluctuations (Baum Lund torp, 2001, p.20). It is pointed out that the seasonality in tourism demand leads to having fluctuations in the tourism volumes in the course of the calendar year â€Å"and must be differentiated from longer-term business cycles and short-term changes related to weekly and daily travel patterns† (Zapalska Brozik, 2007, p.143). Demand seasonality is normally brought about by natural or institutional forces with the pattern typically staying to be stable in the course of a large number of years (Carter Rosa 1998, p.225). This seasonality predictability enables businesses as well as investors and lenders to engage in anticipating a large number of seasonal impacts (Zapalska Brozik, 2007, p.144). Small Businesses in the Central and Eastern Europe It is pointed out that the small business organisations in such places as in the Central and Eastern Europe (CEE) face a number of uncertainties because of the ongoing lack of stability of the basic regulations of the market economy m odel, the environment profile continue to be of great importance (Johnson Loveman, 1995, p.215). It is also pointed out that there is increasing interest in carrying out the measurement of the failures as well as successes of the transition processes in the CEE countries. There have been a small number of studies that examine the family entrepreneurial business enterprises, especially the ones that operate in hospitality and tourism sector of an economy that is reforming (Butler, 2001, p.10). There is need to have an all-inclusive investigation of entrepreneurship in the family enterprises in hospitality and tourism business which are operated in CEE. There is holding of a belief that the detailed and incorporated scrutiny of entrepreneurs as well as their business enterprise will offer more insights which can be helpful in the formulation of the public policy on the development of entrepreneurship. Conclusion Various factors have presented hospitality industry with challenges and opportunities. There are both external and internal factors. It is imperative for the new businesses in the hospitality industry to understand both the internal and external environment in order for them to be able to capitalize on the opportunities and to avoid risks. There is need for the government to come up with the appropriate policies and allow these businesses to operate efficiently and effectively. Such other factors as the cultural one are supposed to be overcome. There is need to ensure that the managers have adequate experience and skills to run the business. There is also need to have a suitable location for the business to operate effectively and profitably. There is also need to understand demand seasonality in order to come up with the appropriate decisions to ensure successful operation of the businesses. References Beck T, Demirguc-Kunt A, 2006, Small and Medium Size Enterprise: Access to Finance as a Growth Constraint. J. Bank. Fin. Vol. 30 no. 1, pp. 2931-2943. Birley, S 1989, â€Å"Female entrepreneurs: are they really any different?† , Journal of Small Business Management, vol. 27 no. 1, pp. 32 – 37. Butler, R., 2001, â€Å"Seasonality in tourism: issues and implications†. In: Baum, T., Lundtorp, S. (eds) Seasonality in tourism. Pergamon, Amsterdam, pp. 5-22. Carter, S Rosa, P 1998, â€Å"The financing of male- and female-owned businesses†, Entrepreneurship and Research Development, vol. 10 no. 3, pp. 225 – 241 Cassar G, 2004, â€Å"The Financing Of Business Start-Ups†. J. Bus. Venture  Vol. 19, no.2, pp. 261-283. Dahl MS, Sorenson O (2007). Home sweet Home? Social capital and location decisions. Web. Delmar F, Wiklund J., 2008, â€Å"The effect of Small Business Managers’ Growth and Motivation on Firm Growth,† Entrepreneurship Theory Pract. Vol. 32 no. 3, pp.437-453. Hellriegel D, et al, 2008, Management. 2nd South Africa edition. Oxford University Press. Oxford. Fogel, G., 200 1, â€Å"An analysis of entrepreneurial environment and enterprise development in Hungary†, Journal of Small Business Management, Vol. 39, No. 1, pp. 103-10. Hellriegel D, et al, 2008, Management. 2nd South Africa edition.Oxford University Press. Oxford. Johnson, S., Loveman, G., 1995, Starting over in Eastern Europe: entrepreneurship and economic renewal, Harvard Business School Press, Boston, pp. 212-220. Jordan, F 1997, ‘An occupational hazard? Sex segregation in tourism employment’, Tourism Management, vol. 18 no. 8, pp. 525-534. Kirby, D 2003, Entrepreneurship, McGraw-Hill Education, New York. Liff, S Ward, K 2001, â€Å"Distorted Views through the Glass Ceiling: The Construction of Women’s Understandings of Promotion and Senior Management Positions†, Gender, Work and Organization, vol. 8 no. 1, pp. 19-36. Mahadea D, 2008, The Environmental Context for SME Entrepreneurship in Kwazulu-Natal, University of Cape Town, Cape Town. Martin G, Staines H (2008). Managerial competencies in small firm. Web. Morrison, A Thomas, R 2004, SMEs in tourism: an international review, Association for Tourism and Leisure Education, London. Olawale, F. Garwe, D., 2010, â€Å"Obstacles to the growth of new SMEs in South Africa: A principal component analysis approach. African Journal of Business Management Vol. 4 no.5, pp. 729-738. Phillips P.A, Wade M.A, 2008, Performance Implications of Capital Structure; Evidence From Quoted U.K Organisations With Hotel Interests Service Industries J. vol. 24 no. 5, pp. 31-51. Porter, M., 1989, Competitive Strategy, New York: Free Press. Purcell, K 1997, Women’s employment in UK tourism: Gender roles and labor markets, Routledge, London. Schein, V 1973, â€Å"The relationship between sex role stereotypes and requisite management characteristics†, Journal of Applied Psychology, vol. 57 no. 2, pp. 95-100. Shane S, Cable D, 2002, Network Ties, Reputation and the Financing of New Ventures, Ma nage. Sci. Vol. 48 n.3, pp.364-381. Smit P.J, Cronje G.J, Brevis T, Vrba M.J., 2007, Management Principle: A Contemporary Edition for Africa. Juta and Co Ltd. Cape Town. Vianen, A Fischer, H 2002, â€Å"Illuminating the glass ceiling: the roles of organizational culture preferences†, Journal of Occupational and Organizational Psychology, vol. 75: no. 2, pp. 315-337. Wong P.K, Ho, Y.P, Autio E., 2005, â€Å"Entrepreneurship, Innovation and Economic Growth: Evidence from GEM data†. Small Bus. Econ. Vol.24, no.3, pp. 335-350. World Bank, 2006, World Development Indicator Database. Web. Zapalska, A. M Brozik, D., 2007, â€Å"Managing family businesses in the tourism and hospitality industry: the transitional economy of Poland†. Zb. rad. Ekon. fak. Rij. vol. 25 no. 1, pp.141-165. This report on Hospitality industry and entrepreneurs was written and submitted by user Keaton Irwin to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Product and pricing essays

Product and pricing essays Nowadays, price-related promotion is a common topic in many markets. In addition, price-related promotions have been criticized in many published business literatures. In this essay, it will identify the range for reasons that price-related promotions might be used, why the firms spend budget on price-related promotions? In addition, if there are some good reasons of using price-related promotions, how it fulfills the objectives and what are the benefits of the price-related promotions? According to White (2002) the reasons of price-related promotion need to be considered as the purposes of the firms. The main reasons are to accelerate the distribution of quantity of the products, to attract new customers for the brands, to increase the awareness of the firms brands, and to encourage the loyalty of the exiting customers of the brands. Price-related promotion does not fulfill well on all the objectives which mentioned above, however it works well for some of them. There are some literatures points that the price-related promotion has not long-term effect for the brand maintenance. According to Ehrenberg, Hammond s subsequent sales or brand loyalty. It is because almost of the buyers, who buy the brand on promotions, are the brands long-term or loyal customers. It only few new customers are attracted by the promotion. Moreover, Ehrenberg, Hammond For the objective to attract new customers, price-related promotion is not so powerful. However, the achievement of price-related promotion on other objectives should not be ignored. According to White (2002) price promotion will not attract new buyers to a brand, but can increases short-term purchases by some the br ...

Promotional Aspects of Rolex Company Research Paper

Promotional Aspects of Rolex Company - Research Paper Example Adopting an effective marketing mix ensures the satisfaction of customer’s needs thus success. However, knowing the needs of customers and meeting them is normally very challenging undertaking. Therefore, before launching a product in the market, a company must take into consideration all the marketing mix, including product, price, place, and promotion. The careful evaluation of all the elements of the marketing mix ensures the development of a product that meets the needs of customers in a market. Even though there may be countless of organizations that have excelled in marketing services and products, Rolex watch company stands out as the greatest marketing genius of the 21st century. Founded in 1905, Rolex has grown to become one of the world’s most valuable brands. The company ranked as Forbes’ 68th most valuable brands in 2013 (Beckwith, 2011). Rolex specializes in the manufacture of wristwatches in the world. Most of the best watches in stores today are ma nufactured by the company. Rolex was the first company to manufacture a waterproof watch in 1926. The company’s watches are not just appealing in terms of appearance, but also in terms of quality. Rolex watches are worn by some of the world’s most famous athletes, including Tiger Woods, Roger Federer, Phil Mickelson and Lindsey Vonn, just to name but a few. The success of Rolex is mainly attributable to the promotional strategies that the company adopts. The company has adopted an aggressive promotional campaign that encompasses advertising, sales promotion, public relations and individual sales. The promotional strategies that the Rolex have adopted over the past years has ensured that its product become a household brand. In creating brand awareness for its watches, Rolex have adopted some of the best promotional strategies ever witnessed. Advertising Rolex advertising campaign is just exceptional. The most striking feature about Rolex is that it has narrowed its mar keting campaign messages, which are consistently relayed across all mediums. In fact, Rolex has stayed away from the use of the mainstream advertising mediums, such as radio and television ads that are not targeted at a precise audience (Stevenson, 2011). At the same time, Rolex has stayed away from using broad strokes of ads that are occasionally used by large promotions such as the purchasing time commonly used during big sporting events. Instead, Rolex has largely focused on major events that attract special consumers with the ability to buy its expensive watches whose prices range from $5,000 to $100,000 (Beckwith, 2011). For instance, the Rolex Sports car Series and the Rolex 24 Hours held in Dayton attracted both race fans and sport car owners with the ability to spend large sums of money participating in the event. This also offered Rolex a perfect opportunity to advertise its quality and expensive watches. Rolex also advertises it watches during golf tournaments, as well as during yachting events that normally attract wealthy audiences with the ability to buy its expensive watches (Stevenson, 2011). Apart from sponsoring sports series that attract wealthy audiences with the ability to purchase expensive items like its watches, Rolex also, sponsor individual sport personalities to help promote its watches. Currently, Rolex has signed great deals with famous golf giants such as Tiger Woods, Gary Player, Arnold Plamer, and Jack Nicklaus. Rolex has also signed great deals with famous tennis players, such as Roger Federer as a means of promoting its expensive watches. A closer look at the past commercial ads that Rolex had run in the past, it is clear that the company has a