HOTO7002 MSc International Hotel And Tourism Management Assignment sample 2023
Introduction
Apex Hotels ltd is a chain of hotels that operates in the United Kingdom. The company has ten hotels operating in the United Kingdom. The company has a fair base of employees and has indulged in various innovative techniques to expand the business in the domestic market. The company has also been rated high in terms of services being provided to customers. The group of hotels operating across the United Kingdom has reported an increase of 9.5 % in its annual turnover accompanied by an increase of 51% in the pre-tax profit to over 11.7 million pounds. The chain of hotels offers customers with various amenities to the customers including food and lodging services. Apex Hotels has come up with a decision to expand its business in Spain as the country is not only ideal for the hotel industry but also a growing and booming Eco-tourism centre. This assessment will also be focused on the PESTEL factors which have six factors. these all factors have helped to expand the tourism market from the UK to Spain.
This paper will address the needs of modifying the operational as well as managerial activities, along with the assessment of the company’s presence in Spain through the PESTEL analysis. The paper will also address various theories and methods to be involved in HRM practices as well as increasing the engagement of the employees through various models and approaches. This will also affect the policies and regulations, where the employees might be under the recruitment process as well as training processes to successfully implement the business dynamic in Spain.
1.1 Political
Although there have been implications of the pandemic in the hotel industry in Spain, the assumptions and the expectations of the global economy as well as the Spanish government is that the hotel industry is going to flourish with the passage of time as it was prior to the COVID-19 pandemic. Since the year 2009 to the year 2019, Spain has witnessed 19.1 million international arrivals which has been evident because of the reason that the political condition of the country has been favouring the hotel industry in a way that the economy of Spain also elevates (Collinsonet al. 2020). The different political regulations in Spain may seem to be intimidating but the tax policies and specific hotel industry policies are quite profitable for the business being conducted there (Palit, 2020).
Although the political conditions in the United Kingdom are stabilizing, the growth perspectives for the hotel industry provided in Spain are much more diverse. Having said that, the unrest in the country is also a vulnerable aspect to consider when acknowledging the expansion in a different country. The threats of terrorism are quite high in the United Kingdom which many a times become a drawback for the hospitality industry to thrive in the best of circumstances and also threatens the international arrival to a high extent (Chiang, et al., 2020). In addition to this, the post-Brexit condition have made it difficult for the migrant workers to enter the country or even settle in the place. As the restaurants, hotels, entertainment and leisure businesses employ more than 4,000 migrant workers Brexit has been a major cause of worry among them. The revenues associated with hotels have also been greatly affected due to the increased supply of rooms and a gradual decline in the rate for occupancy. This has also affected the entry of the tourists from the European) countries which eventually leads to the Apex Hotels Ltd to focus on the expansion of the business in a different country where such hindrances are absent (French, 2018). Based on a macroeconomic angle, the investments will be specified and the pound will increase as soon as the relationship between the European Union and Britain becomes more appropriate and transparent. Apex Hotels have embraced exceptional technologies to fulfill the ever-growing requirements related to personalization of guest and client experience. Considering the competitive landscape and the ongoing pandemic, the scope associated with global chain penetration is quite difficult and growth based on this scenario is quite limited.
1.2 Economy and Labor Market
Tourism and hotel industry in Spain is one of the key contributors to the economy. The GDP for the year 2009, represents 4% contribution of the tourism industry which reflects that the international arrivals in Spain are very significant and successful. Spain has although suffered an economic drawback the recovery process has been as such that it had planned to expand the hotel industry in the coming 10-20 years. The money supply has also been very enhanced affecting the interest rates simultaneously but the growth of revenue has been elevating. The government has also been very supportive and motivated towards the growth of the hotel industry in the country. The country provides various central business regions for the hotel and the tourism industry to flourish and grow (Mubinovna, 2020).
See Appendix 2
The slow GDP in the United Kingdom and the high uncertainty in the economic condition resulting from the political instability in the country has to be considered for the survival of the business in the United Kingdom for the Apex hotels Ltd. It is to be understood that the risk factors for the economy in the United Kingdom have grown since the application of Brexit because the major part of transport as well as supply chain has been restricted. This inclination is a vital factor to consider the expansion of the business in foreign markets that provide more success parameters (Parutis, 2014).
See Appendix 3
Now, considering the labor market of the United Kingdom, it provides a diversity of jobs and perspectives for the seeking youth and they are indulged in the hotel industry because it is one of the thriving sectors of business in Spain. The employees are provided mostly with their expected salaries and also with their better remuneration from the hotel industry as well. The government has invested in the employee market in order to improve the conditions and well-being. They are provided with various perquisites and the laws of the market are also in favor of the labor working in this industry (DiPrete et al. 2006). Whereas in the United Kingdom market, mostly the dependence is on the domestic labor market. The three aspects that the United Kingdom is currently focusing on are job security, training and the opportunities of growth for the employees working in this arrangement. Having mentioned that, the human resource has been failing in providing the company with high end as well as progressive employees who would indulge in communication and hospitality training in the hotel industry, eventually resulting in high turnover of the employees (Fisher and McPhail, 2021).
See Appendix 4 and 5
1.3Social
There are various social factors that affect the hotel industry in the United Kingdom. This also impacts the sustainability of the business through different parameters. It is to be noted that the education of the consumers, their income and their word of mouth helps the hotel industry thrive. The COVID-19 impacts and the Brexit regulation have made it difficult for the hotel industry in the United Kingdom to affect the consumers and the people appreciating or indirectly marketing the hotels to decline at alarming percentages. It is difficult for the Apex Hotels Ltd as well to consider that the domestic people would address the hotel due to the harsh economic impact of the pandemic. The international arrival has also been compromised and leading the industry to face regression in terms of affecting social factors in the United Kingdom(Goodwin & Francis, 2003).
In Spain, it is not only the hotel industry but also the government that is taking the initiative to promote the business among the international customers. The country has been highly indulgent in leisure activities which eventually lead it to better hotel industry business. The high diversity in the landscapes also attracts a great number of tourists creating more opportunities (Tikly and Barrett, 2011).
1.4 Technological
Technology in the hotel industry in Spain shines and sings. The adaptation of high-end technology is a method of survival for the hotel industry in Spain. There has been exclusivity added in the Spain hotel industry that the customers find appealing making the business more authentic, presentable as well as growth induced. The visitor experience has been elevated and enhanced in the hotel industry of Spain in order to offer more diversity as well as a fun element for the customer. The vision of Smart hotels has been added by the government to the infrastructure of the company which makes it more profitable for the hotel industry since the customers stay satisfied as well as find comfort in the place of stay. Not only this, the hotel industry in Spain has been intensifying the use of technology in the operations as well. The hotel industry has also included the cashless payment systems as well which comforts the customers (OpenGov Asia, 2019).
The hotel industry in the United Kingdom on the other hand has not been high in terms of implementing technological advancements in all its operations. The post-Brexit conditions in the country have limited the resources as well as the sources of revenues have been disrupted. Although the technology advancements could have saved the situation, the hotel industry in the United Kingdom has not been able to process the technology in their operations or their infrastructure for the customers to experience authenticity(Itproportal.com, 2020).
1.5Legal
There are various legislations and legal regulations that bind the hotel industry in the United Kingdom as well as in Spain. As much as these laws bind or restrict the activities of the hotel industry, they also act as the guiding principles. In the United Kingdom, the licensing Act, the Food and Hygiene Act and the Fire regulations control the hotel industry in the United Kingdom. These laws are mandatory for all the hotels to follow in this country. The taxation policy can greatly influence the expansion decision of Apex Hotels. Besides, the “Special Urban Plan along with the newly developed hotel regulations, the expansion policy might face a problem to establish their hotels in Spain. (Assetsure, 2021).
However, the hotel industry in Spain is flexible in terms of stringent laws and regulations. The laws in Spain do not restrict the customers from following their schedule or their agenda in order to meet the country’s policies and laws. But the laws relating to the current pandemic situation apply to all the customers in every country. It is certain that the safety of the customers is more important along with their personal data being safeguarded by the hotel industry in Spain. Corporate social responsibility is one of the key laws that the hotel industry in Spain is indulged in (Punitha & Rasdi, 2013).
1.6 Cultural
Implying culture in the workplace is one of the key elements that help the business to grow, especially in the hospitality industry. With that being said, the cultural diversity in the workplace is also vital for the business and its operations. There has to be cohesiveness in the working structure as well as the operational management irrespective of the cultural diversity (You, et al., 2000). In the British Nationals like the Unite Kingdom, the cultural discrimination definitely exists. The immigrants are allotted and placed at the lowest level of employment in the hotel industry, which represents the biasness. This also reflects the culture of the people in the country which does not allow the employee intelligence and knowledge to thrive but the cultural diversity is placed at a priority (Pantelidis& Wrobel, 2008).
In Spain, on the other hand, culture in terms of representation in the hotel industry is very specifically growing and appreciatively added in their management as well as operational levels to represent themselves and attract people and make them aware of the culture in Spain (Romero & Martínez, 2010). Not only this, in Spain, the cultural discrimination is also lesser in comparison to the United Kingdom. There are several immigrants that have been working in designated posts for the various prestigious hotels.
Hofstede Cultural Model
Power distance Index: With a power distance ranking of 57, of Spain and 35 in comparison to the United Kingdom, it is understood that in Spain the system of powerful positions will impact the work of subordinates and the working culture will be dependent on the hierarchical method.
Masculinity:The score of Spain in respect for masculinity is 51 whereas in the UK it is 66. This factor will create a difference when the company will operate in Spain. The drive to become successful would be less in comparison to the drive to do what they want.
Uncertainty avoidance: The uncertainty avoidance in Spain is ranked extremely high with 86 because of the change in the laws and the undefined situations. Apex will have to take into consideration this fact and will have to create an infrastructure accordingly. Reports suggest that Britain is quite comfortable when it comes to ambiguous situations. The processes associated with planning an expansion would be quite flexible and fluid. Their way of planning is not entirely focused on details and based on the expansion Apex would be able to overcome confrontation and lay more emphasis on innovation.
Individualism: In the United Kingdom people are more directed towards being private and this is why individualism has been rated as 89 whereas in Spain the people are more directed by the community and the society which led their ranking to 51 (Hofstede,2011). As Spain follows a policy of Collectivism, they find it quite convenient to relate with specific cultures. However, the country faces complexities to relate with European countries. Nevertheless, as the United Kingdom is considered to be an individualist country some limitations might come in the way of the expansion. However, considering the heavy consumerism for both the countries it would not be a very complex problem to solve.
Trompenaars Cultural Model
Universalism versus particularism: This aspect will help the company in balancing individualism as well as particularism, creating a different approach from the Hofstede Model. Spain has been indulgent towards Universalism though. The United Kingdom as well as Spanish culture is a devoted follower of universalism. As both the countries follow universalism, they would be able to focus more on realistic apprehensions and on formal rules.
Individualism versus communitarianism: People in Spain have been very indulgent with the community but this approach will help in establishing Individualism as well.
Specific versus diffuse: The community culture in Spain has led to its preference towards being diffusive as well, where the Apex Hotel will need to take this into consideration as the UK is more inclined toward being specific. As Spain follows a more diffuse culture they tend to overlap the professional and personal life and emphasizes on developing relationships rather than focusing on business goals. This strategy may hinder the business objectives of Apex as it poses a threat to the expansion policy. Regardless, Apex should seek to align their business objectives to that of Spain for an active engagement.
Neutral versus emotional: People in Spain believe in Emotional culture in comparison to the UK where people believe in remaining neutral (Trompenaars, Prud’Homme& Trompenaars, 2004). The strategy for Apex is to try and get accustomed to the culture and to engage in active and potentially animated meetings to respond and greet the Spanish people as cordially and warmly as possible. This would be a critical approach in implementing their expansion strategy in Spain.
2. Part B
2.1 Strategic Orientation: EPRG Model
The EPRG framework was initiated by Perlmutter, Doughlas, and Wind solely emphasizing on international operations associated with marketing. It also involves the varied attitudes that a company’s management usually perceives about International Markets. The EPRG model is basically a business strategy that is used by the companies in order to expand their business in the international market. This strategy helps in ascertaining the management of the operations in the international market with optimum use of resources from the host country (Drachal, 2014). The Framework requires companies to make decisions for choosing the most suitable approach for obtaining successful outcomes in countries abroad.
The ERGP expands to Ethnocentric, Polycentric, Regiocentric, and Geocentric.
Polycentric Orientation
The Polycentric Orientation can be considered to be the most suitable in this aspect as it greatly aligns with the idea of adapting the business needs of the host country. The fundamental purpose for considering the polycentric approach for Apex is to encourage a gradual reduction in the costs required for foreign operations. This technique would work in favour of the company and the utilization of this technique would also help create competitive advantage in the foreign country by using their marketing strategies and their resources to attract the customers. The marketing technique used in the United States might not appeal to the customers to reach out to the Spain hotels. Also, the company will have to follow the rules and the regulations of the Spanish government in order to conduct business in that country and also to match the preferences of the customers in the international market.
The polycentric orientation suits Apex Hotels best for the reason that the company will have access to information from the local officials that are hired along with less manpower cost since there would be no need of specialized officials in the country. Having mentioned that, for Apex it is important to understand the difference in demands of the customers in the United Kingdom and the ones based in Spain. The operational plans and the marketing strategy to establish business in Spain would best be established through Polycentric orientation.
Based on the polycentric approach, as the hospitality industry of Spain is expanding effectively and the ‘brand penetration for chain hotels’ is relatively high, there is a huge scope for expansion of Apex Group of Hotels in Spain for attracting more international tourists. As the hotels offer accessibility to rooftops which is a growing trend in most of the hotels in Madrid, it will be an added advantage for the expansion strategy and Apex group to gain overall popularity in Spain.
2.2 People Management Approach: Training and Development to enhance Quality
People management generally begins with talent acquisition and the development of effective teams. It is important for the managers operating in the Apex group of hotels to be aware of the objective of each team and the responsibility of each member for successfully expanding their business in Spain. The company should hire the best talent for managing the international functions related to marketing and transform their skills sets. Employee training and development will work in the favor of the business along with the EPRG model, which will eventually help in addressing the international policies that the employees will definitely adapt (Cohen, 2017).
Apex Hotels greatly believes in the concept of providing consistent and development to all the employees for successful operation. Recently, it was reported that the “Apex City Quay Hotel & Spa” located in Dundee would effectively train the new apprentices in all the prospects of the hotels including food and beverage, housekeeping, kitchen as well as the reception. The company also organized training programmes in collaboration with the “Independent Training Consultants” which witnessed the participation of education centres, hospitality business owners, tourism bodies, and charities to signify the advantages of operating in the hospitality sector.
Therefore, a HRM strategy based on training and development would be the best suited in this scenario as it will attract new talents in the expansion process and will also help in developing the skills and maturity of the people who are already residing in the managerial positions of Apex. Also, the employees who would be operating in Spain will be required to participate in technical training sessions, conferences, role-playing and language and cultural training for exploring more about the culture, people, and the business environment of Spain.
2.3 Recruitment
Based on ‘Cole & D.H, 2015’, views on the polycentric approach of the EPRG framework, recruitment is considered to be a reflection of the polycentric orientation of the organization or company. Recruitment is a process to recognize the need for human resources in a particular job position, analyzing the requirement for the job position, screening, reviewing applications, and choosing the most suitable candidate. After the organizational set up it is very important to hire key members for the various departments of the organization. Hiring and recruiting a workforce for the business is identified as one of the most important milestones which the management of the organization needs to take into consideration. Therefore, the human resource management of the organization needs to take some important and serious decision making. The hiring and recruiting process requires certain procedures that both the human resource manager as well as the employee are required to adhere to. It is very important for Apex Hotel Ltd to attract new personnel with attractive personalities who are capable of adapting as well as responding quickly to changes within the workplace. It is very important for the human resource manager to identify the potential candidates through adopting the most suitable channel of recruitment (Al-Kassem, 2017). The manager also needs to understand that recruiting employees from a single source is not a good decision as personnel for different levels of management need to be targeted on different platforms. Most experienced individuals could be found on different platforms as compared to the freshers who are new to the employment.
2.4 Senior Management:
Senior executives are often busy and their demand is huge for the most important roles. In Apex Group of Hotels, the senior executives and managers are the principal drivers for supervising the long-term operations of the business. They are in charge of monitoring the management of employees, marketing and coordination hotel services and planning the marketing strategies for the hotel. The recruitment and hiring process for the senior-level personnel is different as compared to others. Therefore, it is very important for the human resource manager to search for proficient and skilled personnel and attract them towards the organization. One of the most fundamental ways of approaching personnel for the position of senior management is through referrals. Referrals could be the most suitable form of selecting individuals. Referrals are identified as the most suitable way of discovering higher quality individuals which would help the organization to have a competitive advantage (Smart, 2020). On the other hand, the human resource manager could also make effective utilization of social media platforms. One of the most popular channels is LinkedIn. It is considered as the most powerful platform for selecting managers. Therefore, the manager needs to spend some time on this platform to search for interesting profiles and would be able to develop a talent pool. The recruiting manager could also employ the approach of succession planning. This approach would help in quickly filling the position and would boost the morale of the employee.
2.5 Middle Management:
The management of Apex Hotel Ltd would be able to outsource the recruitment of middle management executives. Recruitment process outsourcing a concept where the company could be able to outsource the management of selected functions of the personnel. Mainly the third party is involved in this process to drive quality, efficiency, cost, scalable benefits, and services. The management of the Apex hotel would be able to pass on this responsibility to BGC Group. BGC Group is identified as one of the best human resource outsourcing agencies in Spain. This agency is proficient in delivering people solutions. The particular agency would be the most favorable choice since they are able to meet the needs and requirements of the specific positions of the organization. it would enhance the quality of selecting the candidates for the particular job role. Other than this the manager could be also able to search certain skill set individuals through industry platforms (Chan & Kuok, 2011). The manager could search on industry platforms such as Behance and GitHub where they could identify executives with tailored skillset.
2.6 Operational level employees:
The operational level management is considered the last level of the business hierarchy. The employees within this stage are mainly the front-line members who need to perform the daily structured activities and tasks along with dealing with the operational units. Therefore, these individuals could be recruited from the best campuses. The human resource manager of the organization would be able to use this process of recruitment by approaching different colleges and universities of Spain that are indulged in hospitality courses (Kim et al., 2021). The human resource manager of Apex Hotel can approach the Management Development Institute of Spain or the Nanyang Institute of Management. These colleges were some of the best private educational institutions which are situated in Spain. These institutions are considered as most trusted in terms of finding the most eligible candidates. The particular approach would help the manager to choose among a pool of candidates. The manager would be having various options of candidates, with different qualities. Moreover, through this way, the organization would be able to develop its company loyalty. Talented as well as fresh graduates would work with a higher level of engagement and focus which would be better for satisfying the specific job role. These candidates which would be selected through this approach need to be provided with proper training as they are mainly freshers.
2.6 Care Workers:
The human resource manager can use social media channels for recruiting candidates for care workers. Some of the popular social media platforms are identified as Facebook, Google+, Reddit, and blogs. These are considered as some of the best sources of recruiting candidates. Advertisements in these channels would be the best way to attract candidates with a similar type of interest as compared to the job roles. The community social media is vast which has the potential to find new applicants. Blogs could be also used to source candidates by searching for candidates on a blogging platform. Google+ would help the human resource manager to find the profiles of the candidates by filtering out the specifications that the employer of Apex Hotel will specify or look forward to. These social networking platforms are a great way to engage a significant proportion of individuals all over the world and would help in developing branding. Through the effective utilization of hashtags, comments, or incorporating locations the employer would be able to source candidates. The organization could also use their websites as it is considered as a most passive form of hiring. The organization can incorporate a separate page for career opportunities which would help organic visitors who are keen to find available employment opportunities. The potential candidates would perceive that the organization is encouraging proactive seekers of the job.
Conclusion
Apex Hotels Ltd is one of the reputed hotels in the United Kingdom. The company needs to strategize the important human resource measures based on the political, economic, social, technological, cultural and legal aspects that Spain as a country provides to this chain of hotels. Considering the above discussions, the most suitable strategy would be a polycentric approach based on Training and Development. The hospitality industry in the United Kingdom accounts for more than 91 billion pounds and the internationalization policy would not only benefit its revenue but also boost its overall reputation globally. This steadily applies to the expansion policy proposed by Apex Group of Hotels. The cultural differences arising in this aspect should be addressed with a diversification approach without hindering the business practices and culture of both the countries.
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