MANAGEMENT

“There is a strong relationship between business development and success in the hospitality industry”

“There is a strong relationship between business development and success in the hospitality industry”

Introduction

The business growth aspect is the most important activity that lets hospitality organizations such as hotels to satisfy their target markets. There is a need for constant development of hospitality business as it is vital for survival in the competitive markets. Further, business development has become a criterion to judge the effectiveness of the performance of a particular hospitality business. The procedures that are employed in developing the business should be strong and employ straight forward process. The goals and objectives need to be smart which make use of the right resources for the right time. However, careful planning is required as this is a very challenging tasks for an organization.

Discussion

The term business development means a process which improves the performance of the company through modifying, developing the features of the products and services, entering in new markets and forming strategic partnerships. This means that all this in the hospitality business means usage of all kinds ofinside, outside and combined resources to improve the overall performance of the business. The development of an organization is looked from various angles and thus, this way hospitality business can accelerate its sales and positioning in the market.

The business development feature of the hospitality business becomes important because this way the structure and activities of the hospitality business are changed. The activities that are ongoing in a hospitality business are the outcomes of previous development plans and creation of new offerings in the market requires constant increase in new plans. There are many advantages of this as most vital it increases the revenue generation in the business, improves customer satisfaction, enhances quality and reduces costs which in turn all benefit the organization. The success of the company largely depends on aligning all these objectives into company's goals. Thus, formation of business development should be through a strategic framework in the business plan of the hospitality business.

Motives in a hospitality business

There are various motives that a hospitality industry has to look before making any business decision. The most important is the profitability. The return on investment is ultimately the main objective of the business. A profitable organization is only possible when right decisions about the product costs and processes of marketing are seen. Thus, setting of a budget is vital for the hospitality industry.

Next is the improvement of the business in relation to its market share Market share is basically the proportion of sales that a business has in given market sector. This is in relation to its other competitors in the industry.Many at times increase in the market share is achieved through acquiring other businesses in the same sector. This way the organizations are quick to grow in areas where they have limited presence. The third motive of this industry is the growth of the business. The main aims are to set themselves as the leaders in ...