notes on hospitality business
...Considering include: Personal financial situations Management style, skills and limitations Exposure to personal liability Change is possible (even likely) Levels of management in a corporation Stockholders-buy hsares in corporation Board of directors-appointed by shareholder, sets overall policy, hires CEO, authorizes big transactions Top management-manage overall operations, appointed by board of directors, make major decisions Middle management-manage operations Supervisory management-supervise employees Organizing and operating a corporation Corperation management Stockholders-person or organization who has bought shares of stock in a corporation and is entitled to some of its profits Closed or closely help Publicly held Cooperate managemnt Stock ownership and stockholders rights Preferred stock owners have limited voting rights; receive dividend before others Common stocks owners have voting rights but only residual claims on assets and are the last to receive and income distributions Corporate management Board of directors-elected by stock holders Sets policies Corporate officers and managers Make most Employee owned corporations Employee ownership where workers buy shares of stock in the company that employs them Corporate organization stays the same Most stockholders are also employees Not for profit corporations Organizations that pursue objectives othe than returning profits to owners Education, charitable works and or some other government approved contribution to the greater good… When businesses join forces Mergers and Aqcuisitions Acquisition procedure in which one firm purchasing the property and ssumes the obligation of another Merger combination of two or more firms form one company Vertical merger-control the means of production and distibution Horizontal merger-buy more restaurants Conglomerate merger-owns everything GE When businesses join forces Join ventures: specialized partnerships Joint venture a partnership between companies for a specific undertaking Public ownership When a unit or agency of governement owns and operates and organization Governement owned corporations Used when Privated investors are not willing to invest in high risk projects When private ownership has fgailed Operating public companies can be used to foster competition Customer woned businesses Copperative: an organization whose owners join forces to collectively operate all of the functions in their industry 2/1 What is an entrepreneur? A person who seeks profitable opportunity and takes the necessary risks to set up and operate a business Categories of enteprenuer Intrapreneur-entreprenurially oriented person whod develps innovations withing the context of a large organization Intrapreneurship-process of promoting innovations within the structure of an exisiting organization Change agents-turnaround specialists-seek to revitalize established firms to keep them competitive in today’s marketplace Starting a new venture Selcting a business idea Finding something you love to do and are good at doing Determining when your idea can satisfy the market Starting a new venture Buying and exisitn gbusiness Some prefer not to assume the risks of starting a new firm Buying a Franchise Another less risky way to begin a business Find Financing Debt financing-borrowed funds that entrepenurs must repay Equity financing-funds invested in new ventures inexchange to part ownership Human resource management The function of attracting, developing, and retaining enough qualified employees to perform the activities necessary to accomplish organizational objectives. Human resource planning Planning- what the company needs to funtion Find people-how to select people Train and evaluate their performance that has meaning to it Benefits and how much you are going to pay people How to release people or when they leave and what are you going to do about that Steps in recruitment Identify job requirements, where are you going to find people, how are you going to find them, website, interview candidates and what questions are you going to ask them, ask for references, how much are you going to pay them $$$$ Recruitment and selection Finding qualified candidates Access internal and external sources Consider internal employees first Look outside if qualified candidates not available internally Employment at will-practice that allows employment relaionship to begin or end at any time at the decision of wither the employee or the employer for any reason The equal employment opportunity commission (EEOC) is dedicated to eliminating illegal discrimination in workplace hiring Orientation, Training, and Evaluation On the job training-prepares employees for job duties by allowing them to perform the tasks under the guiodance of experienced employees Classroom and computer-based training-forms of classroom instruction such as lectures, conferences, audiovisual aids, programmed instruction, and special machines to teach employees everything from basic math and language skills to complex, highly skilled tasks Performance Appraisals-evaluation of an employee’s job performance by comparing actual results with desired outcomes Based on this evaluation, managers make objective decisions about compensation, promotions, additional trainging needs, transfers, or findings 360 degree performance review: process that gather feedback from a review panel of about 8 to 12 people, including co-workers, team members, subordinates, and sometimes customers Compensation Wage-compensation based on an hourly pay rate or the amount of output produced Salary-compensation calculated on a periodic basis, such as weekly or monthly Most firms base their compensation policies on the five factors: Salaries and wages paid by others Government legislation Cost of living Firm’s ability to pay Worker productivity Employee Beneftis-rewards such as retirement plans, health insurance, vacation, and tuition reimbursement provided for employee’s either entirely or in part at the compnay’s expense Some benefits e.g. social security contributions, are required by law Flexible benefit plan- cafeteria plan- benefit system that offers employees a ranfge of options from which they can choose they types of benefits the receive Flexible work plan-employment that allows personnel to adjust theior working hours and places of work to accommodate their personal lives Flextime Compressed workweek Job sharing Home-based work programs Employee seperation Employer or employee can tak the intiative to terminate employment Exit interview-conversation designed to find out why an employee decided to leave Downsizing-process if reducing the number of employees within a firm by eliminating jobs Outsourcing-practice of contracting out work preciously performed by company employees Complements today’s focus on business competitiveness and felxibillity Using contingent workers Contingent worker-employee who works part time, temporaily, or for the period of time specified in a contract Union Manangement relations Developm,ent of labor unions Labor unions-group workers who have banded together to achieve common goals in the areas of wages, hours, and working conditions Currentlu: about 17% of US workforce is unionized (but 40% of governemnet workers are union members) Collective Bargaining Process Collective Bargaining-process of negotiation between management and union representatives for the purpose of arriving at mutually acceptable wages and working conditions for employees Meditation-process whgich brings in a third part, called a mediator, to make recommendations for setting differences Arbitration-bringing in an impartial third party called an abitratot to render a binding decision in the dispute Competitive tatctics of union and management Union tactics Strike (walkout)-temporary work stoppage by employees until a dispute is been settled or a contract signed Picketing-workers marching at a plant entrance to protest some management practice Boycott-effort to prevent people from purchasing a firm’s good or services Management Tactics Lockout- a management strike to bring pressure on union members by closing firm Injunction-court order prohibiting some practice-to prevent excessive picketing or unfair wnion practices Employer’s associations-employers group that cooperates and presents a united front in dealing with labor unions Emplyee management relation nonunion organizations Non uniono comapnaies often offer compensation and benefits comparable to thos of the unionized firms to aver unionization Job securityt in nonunion companies Primary motivatin for workers to form labor unions To reduce staffing levels, firms may try to provide aleternatives to layoffs 02/08 What is Marketing Markeitng-process of planning and executing the conception, pricing, ppromotions, and distribution of ideads, goods, services, organizations, and events to credate and maitntain relationships that satisfy individual and organizational objectives AKA: Identify, Influence, Satisfy @$$ Evolution of the marketing concept Over time, marketing activities evolved Evolution of the Marketing Concept Delivering added value through customer satisfaction and quality Value added-occurs when a company exceeds value expectations by adding fearures, lowering prices, enhancing customer service, or making other improvements to increase customer satisfaction Delivering added value through customer satisfaction and quality Customer satisfaction and feedback Importnatn to find out how buyers perceive products/services by obtaining customer feedback through: Toll free telephone hotlines, customer satisfactions survery, web site message boards, written correspondance, complaints Select Target Market-group of people toward whon an organization markerts its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences Developing a Marketing Strategy Developing a marketing mic Marketing mix-blending the four elements of marketing strtategy-product,distribution,promotions, and price-to satisfy chosen customer segments Product strategy Distributiuon strategy Promotional strategy Pricing strategy Marketing Research for improved Marketing decisions 5 basic reasons for research Idnetify marketing problems and opportunities Analyze competitors strategies Evaluate and predict cusomter behavior Gauge the performance of exisiting products and potential for new ones 35 coffee shop in lansing develop price, promotion, and distributions plans Marketing research for improved marketing decisions Obtaining marketing research Researchers use both internal and external data Internal data is generated within the researcher’s orgnization External data is gathered from sources outside their firms Primary data Applying marketing research data As the accuracy of information increases, so does the effectiveness of strategies Products are improved Ads become more effective Customers are more satisfied Market segmentations Has to measureable Must be accessible form communication Large enough for profit potential How can you segment markets Geography Demographics Psychographic Product-related Product Strategy Product-bundle of physical, service, and symbolic attributes to designed to enhance buyers’ want satisfaction Includes consideration of package design, brand names, warranties,,and prooducuct image People don’t buy thins they purchase Classifying services like tangible goods, services can be and the ways they use the products services can also be convenience, shopping, or speciality products depending on the buying patterns of consumers Product Idnetifiaction Brand-name, term sign, symbol, design, or some combination that identifies the products the products of a firm and distinguishes them from competitice offerings Brand name- the part of a brand consisiting of workd or letters that form a name that idenetifies and distinguishes and offerin of competitors Trademark-A picture 2/15/05 Selecting an Effective Brand Name Communicate Appropriate image Easy to probnounce, recognize and remember Best if short Should attract attention Brand Loyalty (3 stages) Recognition-consumer is aware of a brand, but enough to cause a preference over competing bra...