Handbook of Hospitality Strategic Management This Page Intentionally Left Blank Handbook of Hospitality Strategic Management
Total Page：16
File Type：pdf, Size：1020Kb
Handbook of hospitality strategic management This page intentionally left blank Handbook of hospitality strategic management Edited by Michael Olsen Virginia Tech Jinlin Zhao Associate Professor, School of Hospitality and Tourism Management, Florida International University, USA AMSTERDAM • BOSTON • HEIDELBERG • LONDON • NEW YORK • OXFORD PARIS • SAN DIEGO • SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO Butterworth-Heinemann is an imprint of Elsevier Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP, UK 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA First edition 2008 Copyright © 2008 Elsevier Ltd. All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone (ϩ44) (0) 1865 843830; fax (ϩ44) (0) 1865 853333; email: [email protected]. Alternatively you can submit your request online by visiting the Elsevier web site at http://elsevier.com/locate/permissions, and selecting Obtaining permission to use Elsevier material Notice No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress ISBN: 978-0-08-045079-7 For information on all Butterworth-Heinemann publications visit our website at elsevierdirect.com Printed and bound in Hungary 08 09 10 11 12 10 9 8 7 6 5 4 3 2 1 Contents List of contributors viii Acknowledgements xvii Preface xix Part One Strategy in general 1 Travel 2015: scanning the environment—the next big thing in travel and tourism 3 Marvin J. Cetron, Frederick J. DeMicco and Owen Davies 2 Scanning the business environment 15 Jorge Costa Part Two Strategy as investments in competitiveness 3 The development of international hotel chains in Europe 41 Paul Slattery, Ian Gamse and Angela Roper 4 Industry critical success factors and their importance in strategy 69 Nicolas S. Graf 5 Hotel investment risk: what are the chances? 103 Elie Younes and Russell Kett 6 State-of-the-art cost of capital in hospitality strategic management 115 Melih Madanoglu 7 Competitive methods of multinational hotel companies in the new millennium (2000–2007) 149 Jinlin Zhao and Wei He 8 The importance of intangible assets: trends and patterns 181 Francis A. Kwansa, Cynthia Mayo and Tevfik Demirciftci v ● ● ● ● Contents 9 Recent findings regarding hotel brand and strategy 203 John O’Neill and Anna Mattila 10 Strategic alliances in the hospitality industry 215 Prakash K. Chathoth Part Three Core competencies 11 Resource allocation decisions and organizational structure 235 Robert J. Harrington and Michael Ottenbacher Part Four Functional competencies 12 Strategic human resource management: high performance people system as core competencies 267 Kevin S. Murphy and Michael D. Olsen 13 Investing in information technology to grow firm value 301 Daniel J. Connolly 14 Strategy execution and implementation— achieving strategic goals through operations 333 Peter Jones and Alan Parker Part Five Decision-making 15 Leadership in the hospitality industry 357 Joseph J. West and Sabina Tonarelli-Frey 16 The organizational culture and its role in executing strategy 375 Chris Roberts 17 Measuring co-alignment 391 Marcia H. Taylor and Michael D. Olsen Part Six Implementation 18 Innovation and strategy implementation: the key challenge in today’s competitive atmosphere 407 Sander Allegro and Rob de Graaf 19 Strategy models and their application to small- and medium-sized enterprises 425 Amit Sharma ● ● ● vi Handbook of Hospitality Strategic Management Part Seven Strategy and multiunit issues 20 Factors influencing entrepreneurial orientation of ethnic minority small- and medium-sized hospitality enterprises 453 Levent Altinay and Fevzi Okumus Conclusion 479 Index 481 vii ● ● ● ● List of contributors Sander M. Allegro, M.Sc., BHA (The Netherlands, 1968) com- bines his directorship of innovation at Hotelschool The Hague, international University of Hospitality Management with his privately held consultancy firm Allegro INN ovations. Sander is an accomplished consultant and trainer to the hos- pitality industry and is experienced in strategic management, workshop facilitation, and the field of organizational learn- ing and development. Sander is visiting professor at vari- ous hospitality colleges and is a columnist to two hospitality publications. Dr. Levent Altinay is a Reader in Strategic Management at the Oxford Brookes University Business School. His research inter- ests include internationalization, international franchising, intrapreneurship, and ethnic minority entrepreneurship. He is currently leading a research project investigating the interac- tion between culture and entrepreneurship. Dr. Altinay is the co-author of the book Planning Research in Hospitality and Tourism. Dr. Marvin J. Cetron is founder and president of Forecasting International. Over a career that spans more than 40 years, Dr. Cetron has consulted for more than 350 of the Fortune 500 corporations, 200 academic and professional organizations, and 100 agencies of the US and foreign governments. He has been an advisor to the White House in every administration from the time of President John F. Kennedy to that of Bill Clinton. Dr. Cetron’s long-standing corporate clients include many multinational hotel companies. His published more than a dozen of books. His Encounters with the Future sold more than 140,000 copies and was translated into nine languages. ● ● ● viii List of contributors Dr. Prakash K. Chathoth is an Assistant Professor in the School of Hotel and Tourism Management at the Hong Kong Polytechnic University. His research area includes strategic management, applied corporate finance and service manage- ment. Prakash received his Ph.D. in 2002 from Virginia Tech, Virginia, USA. Daniel J. Connolly , Ph.D. is an Associate Professor of informa- tion technology and electronic commerce at the University of Denver’s Daniels College of Business with a dual appointment in the School of Hotel, Restaurant, and Tourism Management and the Department of Information Technology and Electronic Commerce. Dr. Jorge Costa is President of the Institute for Tourism Planning and Development, is also Professor of Strategic Management, Founding Director of the Centre for Trends Research in Hospitality & Tourism (CETS-HT) and Post Graduate and Research Director at Fernando Pessoa University, Porto, Portugal. He continues to be actively involved in applied research and management consultancy as a Founding Partner of Future Trends Ltd. Owen Davies is a forecaster and freelance writer. He has written six books with Dr. Cetron and five books on his own. His independent works include The User’s Guide to NEXIS (St. Martin’s Press), a manual for users of this complex online database system, and The OMNI On-Line Database Directory (Macmillan), which was a main or alternate selection of seven book clubs, including the Book-of-the-Month Club. A former senior editor at OMNI Magazine, he has written articles for periodicals ranging from Medical World News and Managing Automation to Forbes, Self, and Newsweek International. Rob de Graaf is innovation facilitator, entrepreneur, and assist- ant professor the University of Groningen, The Netherlands, at the department of Economics and Business. He is also a free- lance teacher at the Hotelschool The Hague, The Netherlands. He holds a Ph.D. in Technology Management and an M.Sc. in Industrial Engineering, both from Eindhoven University of Technology, The Netherlands. In his work, Rob focuses on col- laborative innovation processes, ranging from developing strat- egies, managing innovation projects, to successful introduction of new products and services. He also runs the Innovation Leadership management development programme, which he co-developed. ix ● ● ● ● List of contributors Dr. Frederick J. DeMicco is Professor and ARAMARK Chair of Hotel & Restaurant Management at the University of Delaware and Conti Professor of Hotel and Restaurant Management at Pennsylvania State University. Dr. DeMicco is author or co-author of more than 75 publications in the area of hospital- ity. He is ranked 12th among the 119 most cited international hospitality faculty members. Tevfik Demirciftci completed his undergraduate stud- ies at Bilkent University, Turkey and his graduate studies at University of Delaware specializing in hospitality information management. His area of interest is hotel revenue management. Dr. Nicolas S. Graf is an Assistant Professor of Hospitality Finance and Strategy at the Conrad N. Hilton College of Hotel and Restaurant Management at the University of Houston. Dr. Graf received his Ph.D. from Virginia Tech and his MBA from the Ecole hoteliere de Lausanne. His research interests include hotel and restaurant valuation and financing. Dr. Robert J. Harrington is the 21st Century Endowed Chair in Hospitality at the University of Arkansas, USA. He holds a Ph.D. in Strategic