Strategic Analysis of the External Environment and the Importance of the Information- Research on Perceptions of Hotel Managers

March 29, 2018 | Author: Kim Jaenee | Category: Strategic Management, Tourism, Correlation And Dependence, Supply Chain, Information


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Available online at www.sciencedirect.com Procedia Social and Behavioral Sciences 24 (2011) 1060–1069 7th International Strategic Management Conference Strategic Analysis of the External Environment and the Importance of the Information: Research on Perceptions of Hotel Managers O uz Türkaya,*, Seyit Ahmet Solmaza, Serkan engülb a Sakarya University, Faculty of Business Administration, Department of Tourism Management, Esentepe Campus 54187, Sakarya, TURKEY b Abant Izzet Baysal University, Department of Tourism and Hotel Management, 14800 Mudurnu, Bolu, TURKEY Abstract Information gathering from external environment is very important in order to create competitive advantage for hotels. Because of this, hotels are very sensitive to the external information and sustain the systems gathering, disseminating information and transforming it into the response. Furthermore the mean of information will change in parallel with the area which information related on. In this study different types of information based on different components of external environment were considered. Importance levels of different kind of information were determined. On the other hand, the sources of information were asked to rank by considering the level of importance. The most important types of information for hotels are information about computerization, automation systems and satisfaction levels of their customers. Thus, information based on technological environment, about tourists, about suppliers and legal environment were percept as relatively more important. As an information channel customers, internet, rivals working same location and employees were percept more important sources. © Ltd. Open access under CCpeer-review BY-NC-ND license. © 2011 2011 Published PublishedbybyElsevier Elsevier Ltd. Selection and/or under responsibility 7th International Selection and/or peer-review under responsibility of 7th International Strategic Management Conference Strategic Management Conference Keywords: Strategic Management, Strategic Analysis of the External Environment, Environmental Scanning, Hotel Managers 1. Introduction Effects of globalization, technological innovations, new markets which are developing and eliminating the borders, increase the importance given to information, changes on customer expectations lead organizations to be better than yesterday (Temel et al, 2007: 28). Rapid changes created by the phenomenon of globalization put pressure on organizations to adapt to these changes. As open systems organizations were become more affected by the environment and found them in the middle of a global race in the globalization process (Öneren, 2008: 164). * Corresponding author. Tel.:+90.264.295 63 29; fax: +90.264.295 71 30 E-mail address: [email protected] 1877–0428 © 2011 Published by Elsevier Ltd. Open access under CC BY-NC-ND license. Selection and/or peer-review under responsibility of 7th International Strategic Management Conference doi:10.1016/j.sbspro.2011.09.103 Strategic management was defined as a set of managerial decisions and actions that ensure organization's compliance with its surroundings and long-term success is a process in which organizations’ competitive advantages have been maximized and disadvantages have been minimized (Efil. 2010: 3972). 1993: 29). hotel companies need to analyze the current status in the marketplace. rapid changes in environmental conditions are able to turn possible strategies inadequate. it can be mentioned that the number of studies addressing the strategic management in hotels is relatively low. In this respect. In the process of adaptation to the external environment a basic function was taken upon by managers. the businesses are required adapt to changes and up-to-date information which they have. The results of the study will offer a significant contribution to the literature by revealing the points of view of hotel managers to strategic management. In this respect. 2008: 531). to create adaptation. / Procedia Social and Behavioral Sciences 24 (2011) 1060–1069 The environment where organizations in is complex. to problem-solving and to create core-competencies (Liao et al. Zhang et al.. 2006). In rapidly changing world. 2004: 305). this study is important because it is addressing the strategic management process in hotels. Information is a unique resource for individuals and organizations as well. In fact. before they develop a strategy. Adaptation to the external environment and to achieve long-term success in hotel enterprises depends on the development of appropriate strategies. strategic management conceptualization was appeared as a term pointed out that the organizations living in an ever-changing business environment need to anticipate these changes and ensure harmony between the external environments (Dinçer. 1997: 2). In this context. 2. it is tried to determine how the information obtained by the strategic analysis of the external environment was percept by hotel managers and which kind of information was evaluated as strategic. Although the literature on strategic management is quite expansive. Okumu et al. When the changing environment was taken into consideration in which hotel enterprises are working. the most important source of enterprises to know the potential opportunities and threats and in terms of utilization of these in favor of the organization is information (Özdemir. “It is therefore important for enterprise management to understand the variety and characteristics of the external environment and forces relevant to policy formulation and decision making” (Morden. 1993: 29). Hotels should analyze the external environment effectively for response to the changing needs and desires of customer and adaptation to the market conditions. 2007: 1450. Strategic Analysis of the External Environment In fact. In this study. every business starts its activities with a clear mission and specific goals. at the same time competition is very intense.. it was obviously seen that the hotels need to develop reliable strategies in order to work efficiently and effectively (K[l[nç. and in a rapid change. However. 2010: 1095). it is possible to say that each business consciously or unconsciously begin to operate in direction of some policies and strategies. Such a close contact will empowered managers to capitalize on opportunities and avoid threats in the external environment (Stahl and Grigsby. strategic management could be considered as providing proper tools ensuring adaptation of hotels to the external environment. At this point. In such an environment dominated by uncertainties. in order to sustain their competitive force (Liao and Wu. organizational activities enforced to gain information from external environment are researched. In this respect. 2010: 719). 1061 . However. managers must direct the relations of organization with external environment and retain a clear interaction of organization among actors of external environment. to learn new business forms. 2004: 4-5).Og˘uz Türkay et al. Most of the researchers have pointed out that the external environment of tourism enterprises is changing rapidly and at the same time this complex environment forms competitiveness of firms (OrejaRodriguez and Yanes Estevez.. This is very important to know the extent to which it must be prepared to adapt to effects and pressures that come from external forces (Morden. 2008: 538. Adema and Roehl. 2003. capabilities related to marketing and R&D are such basic elements are examined in business analysis (Ülgen ve Mirze. To know and re-evaluate the strengths and weaknesses compared to its competitors is very important for managers to facilitate strategic choices (Eren. 1993. 2004. 2007: 115-127. Strategic analysis is a process consisting of investigation made on the current situation of the general and industrial environmental elements and re-evaluation of business elements in the internal environment (Ülgen and Mirze.. 2007: 1450). threats and some unexpected progress. According to Okumus (2004: 125) environmental scanning is seen as an essential managerial tool which through employing systematic scanning procedures. in many cases. 2004. the external environment was divided into two part as the far/ macroenvironment. They evaluate. Changing conditions requires the hotel managers to analyze the external environment continuously and in a systematic way. 2004:71. However. and close / micro-environment. 2005: 117). Oreja-Rodriguez and Yanes Estevez. In addition. In addition. 2003. Evans et al. Pearce and Robinson. the most situations executive of the hotels is reluctant to engage with environmental scanning the most significant reason of that. 1997). 2003: 3.. Costa and Teare. 1994.al. They also express concern over their inability correctly to assign . economic environment. Scanning of each categories of the environment may provide a path to the executive to decide on the appropriate sources of information and using information both personally and non-personally. control and disseminate this information with the rest of company (Eren.. it was understood that a second kind of classification made as the industry environment and the business environment. customers and substitution goods and services (Olsen et al.. It comprises the activities such as definition of objectives. This stage is the process of identifying and tracking trends that lead to business opportunities and threats and involves several important management decision (Olsen et. developing activities and structure of firm (Pearce and Robinson.1062 Og˘uz Türkay et al. 2005: 169). 1998. Dinçer. 2004: 40). For this purpose the managers working on strategic planning gain information from the different resources in external environment in order to sustain the competitive advantage of firm and to be aware of opportunities. Elenkov. According to the studies.. its resources and capabilities were analyzed (Dinçer. while the task or micro-environment consists of competitors. suppliers. Financial situation of the business. The general or macro-environment of hotels is composed of the parts such as the factors of socio-demographic environment. “But. / Procedia Social and Behavioral Sciences 24 (2011) 1060–1069 Environment covers all factors which remain out of the firm but closely related to firm (Dinçer. Olsen and Roper. Evans et al. 2007). 2011). 1998. 2004: 107-135). political . Olsen. Olsen.. Harrington. 2004. 2010). executives are worried about information that comes from the source they use.. Current business conditions were evaluated in internal environmental analysis. 1993. The main purpose of strategic analysis is to learn any change occurring in the environment of organization by collecting information on these changes and to develop cultural or structural competency which enables adaptation (Evans. a lot of studies available in which the external environment of tourism businesses is analyzed (Costa. Okumu . Dincer. 1995... 1999. Strategic analysis was realized in two stages: internal and external environmental analysis (Morden. tangible and intangible assets. 1982. Adema and Roehl. Suramanian et al. and some applications on analysis of external and internal environment (Dinçer. As mentioned above. External environment was defined as the whole of factors which are not under the control of the management but influences the processes such as decision-making. Hambrick. Wu et al. 2011: 81). 1994: 3). Oreja-Rodriguez and Yanes Estevez. There are many studies treated on the external strategic analysis conducted by firms (Fahey et al. The second stage of strategic analyses is conceptualized as environmental scanning. et al. Ülgen and Mirze. 2007: 64).legal environment. 2003. the quality and quantity of its work-force. 2000. Okumus. 1981. 2010: 200). 2011). technological and ecological environment. Pearce and Robinson. hospitality firms can identify opportunities and threats and then develop successful plans. 2004. businesses were faced up to changing environment and cope with change by developing new processes and performing strategic analysis (Dinçer. 2004. choosing strategies compatible with objectives. these concepts refer to the same phenomenon (Evans et al. 2004: 71). 2004: 70). 2007. By age distribution.9%). and others (17. from 1-Not all important.6%). The distribution concerning of participant’s features 1063 . assistant general managers. Thus it is often easier to make decisions about more immediate threats and opportunities than long-term trends” (Olsen et. Based on length of service. majority were 5 star hotels (62. and number of rooms which the participant is working for. As the nation is managers’ perception. Aegean. The results gained after statistical analyses are offered. The questionnaire form includes two parts of questions. (2000).7%). For this purpose. 2004: 3-4). most hotels are 5 to 9 years in service (42.9%). considered or perceived as more strategic by hotel managers.Og˘uz Türkay et al.1%).4%). 3. / Procedia Social and Behavioral Sciences 24 (2011) 1060–1069 probabilities to the likelihood of events actually occurring in the environment and what effect they will have on the firm. As a main form of educational level most of the participants have bachelors degree (68. respondents were group into positions of general manager (14. A questionnaire was employed. the factors and propositions were ranked.7%). age.4%). Table 1. In this study it is aimed to research how managers were percept the information related on the external environment of a hotel. Based on the hotel type where the participants working for. Findings Demographic statistics of respondents were depicted in Table 1. Managers from 35 qualified hotel enterprises from the different parts of Turkey joined the study. assistant GM (5. Methodology The aim of this study is to determine which kind of information gained in the analysis of external environment.6%. marketing manager (22. Based on ownership of hotel. Comparison between male and female respondents. male was represented by 60% and female by 28. As only one part of strategic analysis. most of the hotels were group into local-independent category (45. the strategic external analysis was discussed.9%). Marmara and Middle-Anatolia Regions).4%. respondents that categorized between 36 to 40 years old contributed the most with 31.3%). a field study was conducted to analyze the perceptions of managers of hotels located in some different cities of Turkey (Mediterranean. Finally by the age distribution. 4. to 5-Very important). Scale was developed by adapting the previous scale of Eren et al. It was tried to evaluate how these hierarchies percept the importance of information gained from external environment. This part consists of statements about types of information and judgments were scaled in parallel with the style of Likert (evaluation will made by the ranks of importance. Hotels are grouped in much closed numbers of rooms but most of them have rooms more than 350 (31. front office managers and marketing managers were determined. front office manager (40 %). Second part consists of questions developed in order to determine personal and demographic situation of participants and some qualifications of hotels such as type.al. In the first part. majority of the respondents were in the range of 1 to 2 years (31. The thoughts of persons in managerial teams of hotels such as general managers. 9 31.7 62.9 2 4 24 1 4 5.7 8.4 3 14 11 2 3 1 1 8.4 14.7 25.6 2.7 .4 2.3 5.9 11.1 3 11 5 5 2 9 8.7 22. / Procedia Social and Behavioral Sciences 24 (2011) 1060–1069 Features Sex Male Female Missing Age 30 and less 31-35 36-40 41-45 46-50 51 and over Missing Educational Level Elemantary-Junior High School Vocational and Technical High School Bachelor’s Degree Post Graduate Missing Position in the Enterprise General Manager Assistant General Manager Marketing Manager Front Office Manager Other* Length of Employment in the Enterprise Less than 1 year 1-2 year 2-3 year 3-4 year 4-5 year More than 5 year Types of Hotels S Class 4 Star 5 Star Number of Rooms Less than 40 40-79 Rooms 80-119 Rooms 120-199 Rooms 200-350 More than 350 Rooms Missing Ownership of Hotels Local-Independent Local-Chain Foreign-Chain Management License Franchising Frequencies (N) Percent (%) 21 10 4 60 28.7 3 10 22 11.3 14.6 5.9 2.9 40 17.9 17.4 5 2 8 14 6 14.6 31.7 22.7 11.9 1 5 5 4 8 11 1 2.3 14.6 2.5 25.6 11.4 68.3 5.6 40 31.9 14.3 11.1064 Og˘uz Türkay et al.4 5.1 8.9 16 8 6 3 2 45.4 22. 22 4.73 1.80 1.24 1.87 Socio-demographic features 4.05 4.74.65 0.54 4.61 2.1065 Og˘uz Türkay et al.77 0.78 1.31 1. abt. heating d Automation systems employed Additional services offered Wages of employees Workforce training activities Employment policies of rivals Quality of workforce Communication channels in business Suppliers Relations with suppliers Level of service quality Information abt.79 1.17 1. fiscal affairs manager.74 4.74 3.57 3.42 3. Technological Environment Computerization ration in hospitality Automation systems developed for hotels Hardware and devices which may be used in Systems which may be used in meeting halls S.71 4.51 4.37 1.d. Rivals Market share Size Customer profiles Strategies Strengths and weaknesses Reservation systems Room prices Occupancy rates F&B menus of rivals Room capacity Furnishings of the rooms Pricing policies of rivals Discounts and promotion prices Expenditures of rivals for water.05 0. 3.11 4.24 1.17 3. Natural Environment Soil.78 0.69 1.74 4.01 0.71 3.74 0.22 0.09 0.38 0.05 4.37 3.68 0.74 0. customer relations manager. water and air pollution 4.74 4.74 1.5 4.37 1. Respondents were asked to indicate the value on their perception on the importance of different kinds of information was depicted in Table 2.97 3.17 4.77 0.37 4.25 3.01 1. / Procedia Social and Behavioral Sciences 24 (2011) 1060–1069 * Other five are each financial manager.71 4.23 .51 0. It is indicated that the most important information for hotels are “Computerization ratios in hotels”.87 0. S.d.45 4.54 4.60 1.52 0.99 0.18 0.20 4.25 0.87 3.48 4.47 4.31 4.42 3. Following these.25 1. information about “market share of rivals” and “customer profiles of rivals” are very important (mean 4.57 4.22 4.14 4. Tourists Number of tourists visited the region Average overnights in region Purchasing profiles of tourists Purchasing power of tourists New purchasing trends of tourists 4.66 0.48 0.00 1.87 0. Frequencies.21 1.88 4.34 4.23 4.8 4.25 4.47 3.96 4 1.18 0.68 4.2 4.37 1.42 3.93 0.6 3.96 0.90 0.62 0. size and quality level of suppliers Prices of suppliers Prices and discounts offered by suppliers to h i l Substitution possibilities of supplier goods Conditions for getting substitute goods from different industries Inf.23 0.48 3.62 4.65 0.49 0.44 1. accounting manager.58 0.83 1.65 0.45 3.57 4.64 4.95 1. Table 2.4 3.83 1. “Automation systems developed for hotels “ and “Satisfaction level of tourists from hotel” with the arithmetic mean rates of 4.61 0. Suppliers Number.88 4.05 4.24 3.80 0.54 4.20 0.82 0.50 1.71).31 4.64 4.25 4.70 0.88 0.45 4.31 0.45 4.24 1.94 0. reservation manager and assistant front office manager.94 3.88 0.77 4.10 4 0.28 4.14 1.67 4.04 Information abt.17 0. This means that hotels are very sensitive to the information on technological changes and satisfaction levels of customers.85 0.71 0.26 3. mean and standard deviations for all items related to type of information ITEMS Economical Information Inflation rates Interest rates Policies of Central Bank Ratios related to economic growth Tax ratios International relations and competition Trends to cartelization Development plans Investment incentives Socio-cultural Information Birth rates Social values and change Education and cultural level Age distribution and changes Leisure time valuing ways Age of Hotels Political trends and changes Regional tension and terror attacks International agreements Legal adjustments for employees Legal adjustments for natural environment Adjustments related to tourism legacy Adjustments for investment incentives Adjustments on customer protection Adjustments on tax rates Information abt. abt.11 4.47 Attitudes of tourists toward hotel Expectations of tourists from hotel Satisfaction level of tourists Inf.74 4.28 0.71 3.88 1.26 1.88 4.81 1. 94 1.57).* 4.18 *TUIK= Turkish Statistical Institute.57 Internet 4. by TUIK. ITEMS Employees 4.45. DPT. Therefore hotels have broad opportunities to get information from customers. journals and TV) and some publications may be on specific areas related to business world (publications by business associations. etc. “size” (mean 4.68 Rivals working in different location 3.05 1.31 1. On the other hand.79 0. Findings reveal the high importance of information on technology.01 0.12 Leader enterprise in sector 4.51). services were offered in an atmosphere in which customer and businesses are faced.32 1. how these services are being percept.67).70 1. “occupancy rates” (mean 4.70 Consultants 4. This is a clear proof of how the hotels must be aware of the importance of customers’ view to the services. gaining as mystery customer 4. etc.2 1. According to these findings it is possible to say that hotels are more focused on related actors in market and overrate the information gaining from these actors. the technological “systems which may be used in meeting halls” was percept highly important (mean 4. tourist and rival and hereafter information on legal environment.82 0.30 .37 As an information about technological environment.d.05 1. / Procedia Social and Behavioral Sciences 24 (2011) 1060–1069 Changes on climate systems Preventions against to natural pollution Degradation level of natural environment 4.57) as a third and employees (mean 4. The second is information about tourist with the mean rate of 4. “expectations” (mean 4. “number of tourists visited the region” (mean 4. TURSAB= Association of Turkish Travel Agencies S.68). which handicaps are being felt and what components needed to improve.14 1. Journal and TV 4.55) as a forth important source. Table 3.96 3. Top rated factors of information needed about rivals are “Room prices” (mean 4.54 Inf.08 Suppliers 4. For creating a competitive advantage. Mean and standard deviations for the items related to information sources ITEMS S. Respondents voted the importance of information sources depicted in Table 3.05 Rivals working in same location 4.79).48) and “strengths and weaknesses” (mean 4. thus hotels must gain information about services offered. the most important information group is technology (mean 4. and “average overnights” (mean 4.64). TURSAB.26 1.67 0. “discounts and promotion prices” (mean 4.48). 4.61 Customers 4.52).21 0. it is necessary to increase customer satisfaction.35 Publ.41 Publishing of foreign research inst.d.25 4. “pricing policies” (mean 4. rivals working in same location (mean 4.54).62). Except for these sources internet appears as very important factor used very frequently by all kind of hotels. DPT= State Planning Institution. “Regional tension and terror attacks” (mean 4.) have relatively lower importance.55 0. and third is information about suppliers with the mean of 4.47) except for “market share” and “customer profiles”.1066 Og˘uz Türkay et al. The most important factors of information needed about tourist are “purchasing power” (mean 4. Some media tools (newspapers. Other sources of information for hotels are internet (mean 4.94 0.41 Stakeholders 4. government agencies.47) is most important aspects which the hotels need to gain information about from legal environment. 1. By comparing means of overheads as information classes.17 Newspaper.54) in addition to “satisfaction level”.67) as a second. This kind of information could only be gathered from customers.04 New employees 3.66 Workshops 3. The most important information source which was percept by managers is “customers” (mean 4.64) and “Adjustments related to tourism legacy” (mean 4.05 1. The process of service creates contacts between customer and members of business.25. 001 .202 . As listed in Table 4.607** .683** . there is no relationship between perceptions on the importance level of different types of information and perceptions on the importance of customers as a source.256 . abt.205 -.172 . Internet is also a source for all. rivals.358* .239 . abt.211 .509** .463** . and suppliers. abt.717** .201 . but especially the businesses which attached importance to information about tourists.045 .218 . Rivals were mostly preferred while also the importance attached to tourists increases.209 .389* .169 . disseminate it among different parts of business and create new solutions and responses to the changes occurring in the market.418* . tourists and suppliers. rivals.275 . When hotels develop systems to gather information from the out.379* .425* -.457** . information about economical environment and information about socio-cultural environment and three information sources.1067 Og˘uz Türkay et al.105 . on different components of external environment were focused as highly important. abt. tourists and suppliers.001 Inf.014 .211 . Mystery customer is a significant way to gain information about rivals. abt. 5. abt.348* . they must set systems going to gather information. Natural Environment .103 -. Legal Environment .148 . to attach importance to customers as an information source has no relationship with the types of information. Conclusion Hotels extremely need information in order to sustain daily routines and develop new strategies for the future. Table 4.500** .194 .217 Inf.054 -. Rivals .217 -.281 .720** .546** . new employees and rivals working in different location were precluded.235 .719** .181 . / Procedia Social and Behavioral Sciences 24 (2011) 1060–1069 A linear correlation analysis was conducted to figure out the relationships between information evaluated as important and sources. Suppliers are a significantly related source for all type of information. Because these factors were loaded lower than 4.105 .438** .503** .237 .272 .394* Inf.286 . Suppliers . Consultants (as a person or an institution) are important sources to gain information about all kind of environmental components.297 Inf. This means that these factors were percept lower than “important”.379* . And it can be say under the light of finding about the importance of customer as a source. all businesses need to information gained from customers regardless of whether they assign high importance to the information about some environmental areas. In other words.002 -. workshops. Stakeholders are a source which was drawn attention to gain information about natural environment. Technologic Environment .111 .353* . The participant votes for this factor whether highly important or not does not reflect any aptitude related to the importance of different information areas.093 .466** .381* .174 .148 . pointed out this factor as important.283 . By considering findings from limited sample. Pearson Correlation Coefficients indicated that there are strong relations between types of information and sources of information.258 .151 -.692** .412* .321 .603** .414* . Foreign research institutions were increasingly preferred while the importance attached to tourists increases.070 Inf. Correlation matrix of correlation between information percept importantly and source Employees Consultant Customers Suppliers Stakeholders Publishing Internet Mystery Customers Foreign Research Institutions Media Leader of market Rivals Inf. it can be mentioned that .084 .019 . Thus. When comparing the factors two type of information. Tourist .180 Employees are very distinctive sources to gain information about legal environment.681** . This way was chosen to observe which kind of relationship emerges between the perception of information as important and utilized source of information. pp. “Developing environmental scanning in the hotel sector”. The comparison between types of information and sources of information reflects the relationship between perception on the content of information (context) and channel of information (tool). 12(3). King. pp. “Customer profiles of rivals”. / Procedia Social and Behavioral Sciences 24 (2011) 1060–1069 hotels are very sensitive to the information about (in rank). N. F. S. (2004). Long Range Planning. “Adjustments related to tourism legacy”. “Environmental scanning and organizational strategy”. Costa. R.. 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