Middle-East Journal of Scientific Research 24 (4): 1449-1456, 2016 ISSN 1990-9233 © IDOSI Publications, 2016 DOI: 10.5829/idosi.mejsr.2016.24.04.23465

The Influence Factors to Courses’ Successful in Thailand Context

12Thaweewat Thaweephon and Prangtip Yuvanont

1Candidate Doctor of Business Administration, Graduate College of Management, Sripatum University, Bangkok, Thailand 2Assistant Dean of Graduate College of Management, Sripatum University, Bangkok, Thailand

Abstract: The study of influence factors to golf courses’ successful in Thailand context. Thai had very important for Thai economic development. Thai golf course was on the seventh rank in the world and the first rank in Asia, due to the golf course quality, service quality and suitable fee to pay more than others countries in Asia. This research aimed to study on influence factors to golf courses successful. The research method was qualitative research that data collection from 3 groups of 24 key informants; tourism and country policymakers, Asian Tour standard golf course administrators and professional golfers and golf specialists. The sampling of the interviewees was nonprobability in purposive sampling. The question items were semi- structured and used the Face to face interviews. The result indicated that the internal factors have described by 7’s of Mckinsey. Also, external factors have described by PEST analysis model. Both had the direct effect on golf course management (GCM) that consists of location, design & construction, maintenance and financial management. The GCM can build the customers satisfaction and effect on business successful in profit, sales growth and ROI.

Key words: Golf Course Management (GCM) Golf Course Successful Influence Factors

INTRODUCTION and become popular on the broadcasting rights cost, souvenirs or advertisings. The local income distribution Tourism industry serves as a role industry that can among golf business in America, most of incomes gain by promote countries’ economic growth, become the main golf business in the State of California. The gross source of foreign currency and increase high employment domestic product of Canada was 110,000 million Canadian rate in many countries which they focus on promoting Dollars, the most rates gain by the employment in a tourism industry in their countries [1]. Tourism industry domestic business. And Spain was selected to be the grows up at higher rate than other industries after the most popular golf course in the world [3]. Nowadays growth comparison. Because of the Free Trade Policy in tourism in Thailand obviously develop in several many countries, tourism industry growth percentage was principles, for example; unique culture, beautiful and increased to 6.6 during 2006-2011. Tourists amount were attractive natural places and sports tourism also very increased to 952 million. All of them spent on their journey interesting for Thai and foreign tourists. Plenty of tourists 989,000 million Euro and the tourism industry growth travel with their family and play golf in Thailand [4]. percentage in Asia was increased to 8 while Europe and Furthermore, the increasing percentages of tourists in North America were increased to 4 and 3 [2]. In foreign Thailand were 38.56 from China, 35.60 from Japan, 32.35 countries, there are various promotions on tourism from South Korea and 31.46 from India. The tourist industry with sports tourism, for example; the football amount was in accord with the Eleventh National matches in England make greatly income to develop Economic and Social Development Plan (Year 2012-2016). country. The matches that broadcast live in worldwide The plan was aimed to develop urgently in sporttourism

Corresponding Author: Thaweewat Thaweephon, Candidate Doctor of Business Administration, Graduate College of Management, Sripatum University, Bangkok, Thailand.

1449 Middle-East J. Sci. Res., 24 (4): 1449-1456, 2016 business that will be distributed the prosperity to local [5]. was lost in Thai economic value around 20,000 million The important thing to develop sports tourism is Baht, including more unemployment rate that affected on sufficient development and move forward to develop in social and economic in the area of golf courses. As a every sports. Especially for many groups of foreign result of the mentioned problems, the research found tourists, they prefer to travel with their family and play many factors affected in business collapse; difficulty in golf with their groups in Thailand [5]. open space development to become value added property Moreover, Thai golf course was on the seventh rank as a golf course [12], also the facilities’ and standard in the world and the first rank in Asia [3], due to the golf services’ investment and consumer satisfactions. course quality, service quality and suitable fee to pay [2] Therefore, this research would be useful for the more than others countries in Asia. Alpine Golf Resort development of golf course management and Thai social Chiang Mai got the prize from Asian Tour and repeated and economic growth and support for tourism and sports for 2 years, The Best Golf Resort Award in 2014-2015, that business development in the future. can guarantee the standard of Asian golf course and resort facilitator [6]. Golf business leads to another Objective: The research aimed to study on influence business such as; sport garment, , factors to golf courses successful. restaurant, sport shop, etc. These are important keys to move forward sports business in Thailand [7]. From Literature Review Tourism Council of Thailand statistics [8], the Internal Factor: One of the important parts of business is consideration on tourism and sports growth, golf is internal factor; management, operation and controlling popular activity not only for a person but also for group directly and appropriately to the business forward and family. Many tourists coming to Thailand and joining to be effective with the plan [11]. From literature review golf are from China, Japan, South Korea and India. In term and in-depth interview, there were 7 factors that involved of the expenditure on golf tourism and related business, the internal business administration and related to Thailand earns about 1.71 trillion Baht per year [5]. Bank McKinsey7s model. McKinsey7s model is a strategy of Thailand [9] shows the percentage of income on model that can help organization and operation tourism industry is 14 from Gross Domestic Product development. It consists of 7 factors; strategy, structure, (GDP). The information shows the relation between systems, skills, staff, style and share value. All factors can tourism industry and economic growth. There were some be used to bring the principle and key factors to focus in researches about tourism industry management in each organization. Moreover, the model can be used for Thailand, but few researches mentioned of golf the decision on new strategy, organization plan, operation tourism and it would not be according with the assessment and other relations. The McKinsey model was Eleventh National Economic and Social Development Plan developed by 2 advisors, Tom Peters and Robert (Year 2012-2016). Waterman [18], who worked with McKinsey & Co. In However, the intensive studying on tourism industry 1980, theMcKinsey model was published in the would force into the plan of sports business development. articles, “Structure Is Not Organization” [13], “The Art of The plan would distribute the prosperity, employment and Japanese Management” in 1981 [14] and “In Search of income to community. That will be the important way to Excellence” in 1982 [15]. develop Thailand economic. In Thailand, a lot of golf businesses are being expansion. Thai expansion conforms External Factor: From groups of golf course to 33,500 global golf courses. The expansion rate in last 3 administrators’ in-depth interview and research result of years of Thai golf courses increased from 223 to 243 Thaweephon & Yuwanont [11], there were findings about courses, the increasing percentages of courses were 9 external factors, the important factor that affected golf from all Thai golf courses [10]. are 2 objectives rely on course business. Golf course business administrator management; government golf course serviced for their should emphasize and consider carefully for planning or officers and private business golf course serviced for adaptable managing along with external factors. However, public [11]. When lacking of related researches, growth there were some external factors that affected golf course recession of golf course business and many golf courses management; political policy and legal, economic, social taking over by other businessmen because of loss, there and culture and technology. The researcher studied and

1450 Middle-East J. Sci. Res., 24 (4): 1449-1456, 2016 reviewed more on PEST analysis and found that it has Technology is an important innovation for golf been very popular tool for business operation and course management. Technology can help controlling marketing management for 20 years but there were some cost, course quality and course maintenance as follows; differences as follows; lawn mower can be comfortable for workers and electric Francis J. Aguilar [16] mentioned of tools or golf car can reduce air pollution. For these reasons, technique for business environmental scanning, ETPS technology affected golf course management in terms of analysis; economic, technical, political and social. Then, difference and effective management, especially resource Arnold Brown for the Institute of Life Assurance in management. America reorganized it as STEP or Strategic Trend From the literature review, many golf businesses Evaluation Process. STEP was a way to scan business applied PEST analysis to help analyzing the factors macro external environment and scan environmental affected their golf courses, for example; England Golf [18] change. Afterwards the analysis model was modified to presented PEST analysis’ importance and considered PEST or PESTLE by many specialists; Fahey, Narayanan, external factors that affected golf course and business Morrison, Renfro, Boucher, Mecca and Porter. So that operation. As Aberdour [19] considered PEST PEST analysis was approved and better off STEP. Further, analysis as all factors would be affected golf course PEST has been used thoroughly for external factor business, Nottingham Golf Club [20] presented PEST scanning while PESTLE has been used for marketing or analysis as external factor that affected organization to human resources in England only. PEST analysis consists make a plan and manage along the analysis and Douglas as follows; Club (2013) made an operation and strategic plan Political policy and legal or political instability of 2013-2018 by PEST analysis to identify external factors importantly affected tourism. Golf course business is one of golf course management [21]. of sports tourism, so the support policy about sports tourism will be beneficial for golf course business. Golf Course Management: From in-depth interview, Government political policy must be planned for a right there were some interesting and important keys to support on tourism business growth. Moreover, political concern about the beginning of golf course and to policy must be linked up transportation system to support manage for being a successful business; location, tourist traffic to golf course and other tourist attractions. design & construction, maintenance and financial A safe and convenient public transportation system is management. important factor to motivate more tourists to travel into Location; the interview found green fee of Thai golf places. course is cheaper than other countries, so it would be less Economic, economic stability and economic growth of benefits. But the administrators and golf course owners are also important for tourism business, golf course developed open space near the course and activated the management. From in-depth interview, both domestic and investment. Location is important for being a successful international economics situations also affected tourism business, so the first thing administrator should consider in the country. Although, tourism business makes high before the investment is location analysis and finding for income statements, rapidly growth and low cost because the appropriate location [22]. The location would be of the valuable tourism landscape. But it also depends on considered as many factors; beautiful landscape around the growth of microeconomic and macroeconomic. golf course, transportation from the city or downtown, Social, culture, tradition, belief and golf players’ etc. All of these elements may be more considerate of the behavior are also affected golf course management. Golf capital investment because good location would lead to is a traditional and international sport, golf rules consist high cost of the investment. However, the revision of of standard regulations and procedures. So golf course return on investment and forecasting on the property management must standardize procedure. In term of golf expected growth trend also help the administrator to clothing, golfers should be responsible for the appropriate decide on the appropriate location for the worthiness clothing regulation. Then, the regulation affected the investment. growth of golf clothing business. For example; golf The natural environment such as; mountain, river or business was popular in Korea and golf clothing business beach was considered first as golf course location. The was continuously increasing [17]. most interesting location is mountain because it will be

1451 Middle-East J. Sci. Res., 24 (4): 1449-1456, 2016 related with golf course design and it will be affected Maintenance; golf course area is very large, it is the increasing of property value around golf course necessary for the green keeper to care and keep green [23]. Mountain landscape will be great fun and because the grass will be easily invaded by weeds. It will challenging for golfers and then the landscape with be increased cost of operation; removing weed costs, water resource or near the river was considered. The recovery time of lawn and physical change. So the proper interviewees defined that “Water is money”, because the of golf course maintenance control will lead into high principle of golf course maintenance is green keeping. A business growth rate. Golf course maintenance will large amount of enough water is the most important to directly affect quality of golf course and be the main point water the grass. If the course location lacks of water, golf for customers’ satisfaction. And the satisfaction will relate course will be dry, non-standard and golfers will be to the green fee and golf course income. In terms of unsatisfied. So water is for green keeping and standard supporting on golf course maintenance, the green golf course can make more income for golf administrators should concern about additional business. knowledge of golf course maintenance for all of related Furthermore, information from the interview related to workers and bring new innovation or technology in some researches as follows; Maliene, et al. [24] mentioned company with the operation to support for the effective to the importance of golf course location and the golf course maintenance administrator should consider about it because location Although, golf course maintenance is so important would support for golf development. In England, location for the business [35], including golf management, revision is important too, as Falkenbach [25] mentioned to sustainable environment around golf course [36] and golf course location that property investments will profit animals especially for amphibians habitat. So the from good location. So location is one of important factors maintenance should be attentive for environment because for property investments. From the 2 researches of the maintenance is main activity to do daily after golf Wyman & Sperry in 2010 and 2012 supported on the course service [29]. Maintenance routine is green keeping importance of location that golf business will gain high and especially planting Turf grasses [37], because of the income and value added of property business around golf important for green area and golf competition, so golf course. Moreover, the revision of return on investment for course should be kept green and ready to serve all location also involved with financial management [26]. the time [38]. It has to concern on green keeping Design and construction of golf course can be great techniques and the course readiness ([39]; [40]; [41]; [42]), fun and challenging through nature landscape or because the maintenance always affects golf competition landscape architecture. As golf course landscape effects [43]. on point and game so the course should be designed for Financial management; from the interview found intelligent challenging and strategic planning. Then the important factors about golf course investment, because selection of standard construction materials and types of it was a long term investment, spent high invested and grasses should be compatible with local environment. took times to return the investment to investors. The Owing to risk protection on long-term green maintenance, interviewees told about golf course financial management the completely green golf course would be accepted in in the past, it was the golden age of Thai golf course course quality and directly affected customers’ demand during 1988 - 1995. Most golf courses managed and and impressive. promoted along membership system and got the return Graves & Cornish [27] likewise mentioned on golf investment within 2 - 3 years. After the economic effects course design that the expert architect will design golf since 1997, it has been decelerated and affected golf course into the exciting place for game and it will lead into course businesses. The membership system could not be successful business. Andreou [28] supported that golf worked anymore. Nowadays, the interviewees give their course management should be designed for challenging opinions about new golf course business, it has to expect golfers, because the appropriate golf course design is the on property business around golf course area. Because important strategy for golf course management ([29]; [30]; most of operation income can be covered monthly and [31]). However, the best golf course design should annual expenses and became circulating money for concern about animals or environment around golf course business. Meanwhile, the property development income ([32]; [33]; [34]). is a real reward for golf course investors.

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Furthermore, golf course business needs good Government political policy must be planned for a financial management that supports on related tourism right support on tourism business growth. Moreover, strategy for value-added of money from many activities in political policy must be linked up transportation system to golf course potential [44]. Because financial resources are support tourist traffic to golf course and other tourist essential for the successful of golf course management attractions. A safe and convenient public transportation ([45]; [46]; [47]) and the smart administrators should system is important factor to motivate more tourists to manage golf course and recognize among marketing and travel into places. customers need. Economic, economic stability and economic growth are also important for tourism business, golf course Methodology: This research is a qualitative research; the management. From in-depth interview, tourism business information collected from in-depth interview on 3 groups is so important because it makes high income statements, of 24 key informants; tourism and country policymakers, rapidly growth and low cost. But it also depends on the Asian Tour standard golf course administrators and growth of economic. professional golfers and golf specialists. The sampling of Social, culture, tradition, belief and golf players’ the interviewees was nonprobability and purposive behavior are also affected golf course management. Golf sampling. The question items were semi-structured and is a traditional and international sport, golf rules consist used the Face to face interviews. Before the interview, the of standard regulations and procedures. So golf course researcher sent the interviews to the experts for management must standardize procedure. Then, the assessment on questions’ validity with research regulation affected the growth of golf clothing business. objectives. After the interviews, all data was concluded in For example; golf business was popular in Korea and golf content analysis. clothing business was continuously increasing [17]. Technology is an important innovation for golf RESULTS AND DISCUSSIONS course management. For example; Japan golf course used golf sensor machine to show , it can reduce the From the interviews on 24 key informants, there were because of population restriction and number of both internal and external factors that affected the golf courses in Japan. For these reasons, technology successful of golf course management. The internal affected golf course management in terms of difference factors consisted of strategy, structure, systems, skills, and effective management, especially resource staff, style and share value which were in accord with management or course maintenance. McKinsey7S model. The internal factor result was in Furthermore, the study found performance indicator accord with the studies of Naipinit et al. and Spaho [48], of golf course management that can indicate the business; they found the utilization of McKinsey7S model in many financial indicator. Financial indicator consists of 3 businesses management. The usage of McKinsey7S factors; net profit, sales growth and return on investment. model affected the successful of project management. In First, net profit means excess of income after expenses addition, Dixon’s study [49] found McKinsey7S model is deduction. It indicates the important profit of the tool for assessing the situation and classifying all organization. Next, sales growth means quantity groups factors of the company. The model directly affected of product and service gross sales in high growth management and successful of the organization to create organization against previous year. Last, return on and operate on the strategy. Moreover, the study found investment means the indicator for assessing the the revision and the improvement of the organization’s investment efficiency or the quantitative comparison of strategy need McKinsey7S model to adjust organization’s the difference of each project and customer satisfaction. structure. All businesses must bring out product or service to the expectation and satisfaction of the customers. The Result about External Factors Found as Follows: Nevertheless, the increasing of buying or service was Political policy, legal and political instability passed along customers and their companions. importantly affected tourism. Golf course business is one The conclusion of the study as mapping “The model of sports tourism, so the support policy about sports of influence factors to golf courses’ successful in tourism will be beneficial for golf course business. Thailand context” was in Figure1.

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Internal Factors Golf Course - Strategy Management - Structure - Systems - Systems Business Successful - Skills - Location - Net Profit - Style - Design & Construction - Sales Growth - Share Value - Maintenance - ROI - Financial Management

External Factors - Political & Legal Policy - Economic Customer - Social & Culture Satisfaction - Technology

Fig. 1: The model of influence factors to golf courses’ successful in Thailand context

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