Pros and Cons of the Hotel Design in China - Research Paper Example

Resort Strategic Management Resort Strategic Management Introduction The ability of a resort to attract large numbers of customers depends on a number of key factors. For instance, strategic management of resort wellness Spa services can effectively contribute to the growth and optimization of profitability of service industries by drawing the attention of significant number of customers. The efficacy of this strategy can be realized irrespective of the harsh economic situations and stress related conditions derived from homes and workplaces. Ideally, quality service is one of the major success determinant factors in the business planet. As such, ensuing that different aspects of services provision are matched with the preferences of the customers is very essential. This implies that the service design ought to be developed with a clear focus satisfying the needs or demands of the customers. This paper analyzes the impact of profit-maximizing and competition- based theory and human resource-based theory of management on the service provision, customer satisfaction and the subsequent effects on elevating the business competitiveness as well as the contrasting theories. Strategic management of Resorts and Spas According to Riduan et al (2009), effective and strategic management entails provision of conceptual frameworks that enable organization of knowledge and provision of blueprints that guide the actions directed towards achievement of organizational goals. Strategic management is embedded within organizational systems and culture. As such management of spas can elevate the growth of the industry specifically if the managers are aware of their roles as the flag bearers of organizational growth. Theoretically, scientific management can be viewed as the genesis of systematic analysis of the managerial aspects of any industry. It also creates enabling environment for improvement of practical application of daily running of organizations. The profit maximizing and competition based theory has been believed to have impact on the general performance of an organization. This theory of strategic management is based on the assumption that the min objective of any organization is to maximize profits in the long term. Similarly, the profit maximizing and competition based theorists believe that this theory can help organizations to develop and sustain competitive advantage over the rival organizations within the external market place (Riduan et al 2009). This theory is grounded within the basis of industrial-organization (IO). In this case it stresses the positioning of the firm in the market place as the key factor for achieving and sustaining competitive advantage. Ideally, this theory advocates for strategic management model for assessing completion within any industry (Riduan et al 2009). Crandell, Dickinson and Kanter (2012) argue that for hotels to maximize profits and grow effectively they should be located within strategic locations in the market. Basically, this commences by identification of the appropriate target market and subsequent positioning of the service provision at the right location. This theory can significantly help in improving customer satisfaction. For instance, spas that are located within in the middle of financial centre such as in a place within or near office and work places have the potential of prospering compared to those located far away from such areas. In this case, the clients may not have to travel for long distances to access the services. It is also observable that in such locations different clients can walk in for the services at their own preferred time of the day. Therefore, by focussing on a particular group of consumers, specializing the services on a specific geographical location as well as focussing on meeting the standards demanded by different groups of buyers has positive impacts. For instance, it ensures the growth and development of resorts and spa industry through provision of customer oriented services. This aspect compels the customers to continue purchasing the products therefore establishing customer loyalty. Another aspect through which the profit maximizing and competition based theory can optimize the growth and development of Spa industry is through appropriate branding. According to Landor (2011), brand identity refers to the verbal or visual articulation of a product, service or a company. The brand identity includes every pertinent design which communicates the value position of products and services offered by different companies such as logos and mission statements. A brand selection has vital implications not only on the positioning of a firm but also the nature of services and the types amenities offered. According to Crandell, Dickinson and Kanter (2012), the choice of the brand also affects the perception that a spa is accorded from customers’ perspective. This implies that brand choice can be an effective tool for harnessing competitive advantage, influencing pricing and the operational cost. Owing to the strict competitive atmosphere that resorts and spas are associated with, the survivability and prosperity of this industry is determined by successful strategies that put in place. According to Kipiki (2013) effective management is driven by the need to satisfy market demands. Such requirements are characterized by the market demands such as desires of the customers and the market factors influencing success, the environmental factors and the competencies of an organization. The environmental factors are associated with factors such as technological innovations, government regulations and competition. The organizational competency consists of organizational culture, the core capabilities and the strengths and weakness of the organization. With regard to market requirements, effective management of market factors that determine the success of resorts and spas can influence the rate of consumption of their service. This entails delivery of quality services which leads to creation of outstanding competitive environment. According to Bordean, Borza and Glaser-Segura (2011), strategic management enables organization to sustain competitive advantage. Competitive advantage refers to the unique values created by an organization that makes it standout from its competitors (Petzer, Steyn & Mostert 2008). Quality services have the potential to reduce the costs of services being delivered in any service based firm. This is because the quality services provides extra competitive advantage and enlarges the customer base. Bordean, Borza and Glaser-Segura (2011) notes that cost leadership is very crucial in the development of hotel industry and improvement of customer experience. Some hotels utilize this strategy through provision of quality services. For instance, resorts with clean rooms, decorated with fine linen and equipped room facilities that provide significant level of comfort such as television sets, telephones and comfortable beds achieve quality service provision. Therefore, it is evident that resorts and spa centers that provide services which surpass the basic quality standards have the capacity to keep low prices. In this way, their customers can receive optimum experience at favorable costs. It is therefore evident that the strategic competitive environment can create room for development and improvement of spa industry. As various companies struggle to outperform each other, they the end result is that they improve the quality of the services that are provided. This raises the standards of the services through adoption of advanced techniques and acquisition of facilities and amenities that improve the customer experience. The human resource management approach, which employs the psychological realm of the human nature can also be used improve spa and resort industry. The human resource-based theory emphasizes the significance of human components on the strategy of organizations. According to Paauwe and Boselie (2002), it is generally conceptualized that human capital can be used as a source of competitive advantage. Dunford, Snell and Wright (2001) point it out that this is probably due to the assumption that some business strategies require some sets of unique behaviors and attitudes from employees that are fostered by certain human resources management policies. According to Boxall (1996), strategic human resources management has dual advantages to the development of industries. Foremost, through strategic management, organizations such as spa and resort industries can develop policies to capture and retain talented employees who possess rich skills to deliver on the goals of an organization. Additionally, effective management of human capital ensures proper alignment of interest. This enables organizations to match the talents with the right tasks to establish a committed workforce. The second task of strategic human resources management in the development of spa industry can be observed through development of employees and integrating them into team. Lack of proper training impedes the employees from delivering quality services. Consequently, since human capital is the backbone of organizational performance firms with poorly trained employee base are arguably anchored on weak grounds and may not sustain their development and existence in the market place. Employee development entails improvement of skills and knowledge of the employees through activities such as workforce training. In this case, the work force is equipped with relevant skills that are prerequisite in provision of customer focused services. Furthermore, frequent training enable spa companies to effectively handle the emerging trends in the industry as well as reducing or eliminating the complexities that may be associated with the provision of spa services. Therefore, subjecting the spa therapists to quality training impacts them with standard skills which improves the quality of services they provide thus improving the customer experience. It is notable that recruiting the right workforce with the right skills and qualification will elevate the quality of products and services offered by any organization. This can similarly be strategically employed within the resorts and spas to spearhead the growth of the industry. According to Johnston, Tennant and Kohwells (2012), one of the major factors that are derailing the development of spa industries is the inability to find the sufficient personnel with proper skills to manage spa firms. This implies that finding the managers, directors and employees with right qualifications, skills, talents and experience in the spa industry is very crucial. In extreme cases, qualified spa personnel can be imported from countries with spa therapists and managers who can maintain quality standards. For instance, a country like Thailand is well known for the type of culture which portrays willingness to provide ambient treatment for various purposes like wellbeing of the body and peace of the mind. This aspect has created high demand of Thai spa workforce globally. According to Stewart (2010), management of human resources is characterized by two competing theories X and Y based on the human nature. Theory x maintains that humans are generally lazy, are resistance to change, needs to be instructed on what to do, are self-cantered and do not have ambitions. In this instance, this theory can be employed top develop and improve any organization if the managers understand how to handle such aspects of human nature. In the spa and resort industry, the managers can strategically absolute control and provision of performance based incentives to motivate employees. On the other hand, theory Y asserts that humans are naturally active. They have the self-will and apply self-direction towards achievement of organizational goal. These two theories of can be strategically employed to develop spa and resort industry. Firstly it begins by understanding the nature of the nature of the employee base. Subsequently, employing the right strategy after establishing the classification of the nature of human capital is very critical. If in case the nature inclines towards theory X, application of harsh disciplinary actions comes in handy. The change of perception from theory X to theory Y is also vital. This is because theory X encourages autocratic leadership in which the leaders dictate terms to the junior staffs. Such incidence incidences spur resistance from the employees thus eradicating job satisfaction. On the contrary, theory Y fosters participative leadership style. In this case, besides motivation the subordinates are given chance to contribute their opinions during decision making processes. Therefore, since the employees are first persons that the customers come into contact with in most cases, creating room for their opinions in the management system is paramount. This is because their opinions represent the preferences of the clients. Upon fulfilment such opinions improves customer experience and in the long run elevates the organizational performance. The Contradicting perspectives There are compelling literature that opposes the theories that have been put forward to suggest enhancing cost reduction through provision of quality services generates development of resorts and spa industry. According to Townley (2002), observes that cost leadership, which is the capability of a company to underprice its competition, is detested as a guarantor of success and profitability. In this case, although customers are likely to use price as a major determinant while purchasing goods and services, the nature of competition in this niche is always flooded by many companies. In most cases, the firms are lured by the need to maximize the profitability. As a result, many organizations would tend to lower the prices of their products slightly below the margins of their competitors’. Consequently, despite meeting the needs of the customers satisfactorily, enhancing competitive advantage strictly on this segment does not promote growth of spa and resort industry. The theoretical framework which upholds the human resource as a potential factor in generating competitive advantage has also been contrasted. Stewart and McGoldrick (1996) argue that human resource-based theory is influenced by the availability of resources. This implies that firms can only achieve and sustain development through this approach only if they have the resources. In this case, factors that generate organizational development such as training, performance appraisal and employee involvement systems fall prey to setbacks during financial difficulties. In this instance, the human resource-based theory is viewed as looking for quick and easy answers rather than paying keen attention to the significance organizational structure. In addition, while analyzing application of value, sustainability, inimitability and rareness, Wright, McMahan and McWilliams (1994) argue that human resource based theory cannot sustain organizational development. Ideally, this is because every individual human resource practices and principles can easily be imitated by rival company. This implies instead of championing organizational development through innovation in the spa industry, different organizations would simply be copying other strategies employed by other firms. Subsequently, there would be no significant difference in terms of improvements. The capacity of the theory Y to elevate the development of industries has similarly been criticized. The criticism is based on the grounds that it is a form of seductive and manipulative management style. Despite matching the job tasks to the motivational needs via participative management, job enlargement and rotation, managers placed much interest on the organizational performance as opposed to the well-being of the employees. According to Bobic and Davis (2011), this model of management is a condescending scheme which enhances increased productivity from employees without proper systems of rewarding their efforts. In the long run the employees may loose morale. If employed in the spa and resort industry, the benefits would only be short-lived. Once the employees realize that they are being undervalued, they may develop the feeling of being exploited and reduce the level of the performance. Ultimately, if not mitigated appropriately this may result in crumble of the industry. Conclusion This article began by analyzing the strategic management theories that that can be effectively employed to elevate the development of spa and resort industry. The paper has critically analyzed the profit-maximizing and competition- based theory and profit-maximizing and competition- based theory and human resource-based theory of management profit-maximizing and competition- based theory and human resource-based theory of management of management and has established how they can be utilized to within management of spa and resort industry. In the first section, the paper demonstrated that strategic positioning of spas and resorts is very important on the development of the industry. Other strategies aimed at improving competitive advantage so as to enable provision of spa services has also been pointed out as strategies that creates room fro more customers. Secondly, the paper analyzed human resource-based theory of management. In this case, management of human capital has been as one of the key factors of organizational development. Finally, the paper examined the contradicting perspectives that oppose strategic management. 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