Based on the article entitled "Negotiating the Hotel Management Contract" (Crandell et al.

1988), explain the general process of management contract negotiation. (25marks)

The article outlines the following steps in the process of negotiating a hotel
management contract:
1. Define the scope of the project:

• The first thing to do when negotiating a contract for hotel management is to

determine the parameters of the overall project. This includes determining the size
and type of hotel, as well as the target market and the location of the hotel. It is
critical to provide as much detail as possible in order to forestall the possibility of
confusion at a later time. The declaration of the project's scope is an important
document since it gives all of the stakeholders a crystal-clear knowledge of why the
project was begun and identifies the project's primary objectives.

2. Determine the objectives of the project:

• The next step is to figure out what the goals of the project are going to be. What
are some of the hotel's primary objectives? What are the goals that the management
organisation wants to accomplish? Once more, it is of the utmost need to be as
explicit as is humanly possible. In order to determine objectives, one strategy is to
first investigate the goals of the project. The long-term outcomes of initiatives are
referred to as goals or aims. They highlight the goals that an organisation hopes to
accomplish through a project. The achievement of goals can be broken down into
more manageable steps called objectives. The difference between goals and
objectives is the first thing that project managers need to establish, and then they
need to make sure that objectives are meaningful milestones on the way to
achieving goals.

3. Identify the key stakeholders:

• The third step entails the search for the most significant stakeholders. Who exactly
will be affected by the project? Who has a stake in the outcome, whether it be a
success or a failure? It is critical to first identify all of the relevant stakeholders and
then gain an understanding of the perspectives they hold. Your decisions will start to
have an impact on a greater number of individuals as your professional life
 progresses and you achieve greater levels of success. And the more individuals you
have an impact on, the higher the probability that some of those people will have
substantial authority and influence over the work that you do. These individuals are
considered to be your stakeholders. Because you need to determine who your
stakeholders are and win them over as quickly as you can, because they have the
potential to either be strong supporters of your projects or to prevent them, they
need to be identified.

4. Conduct a needs analysis:

• Carrying out a need’s assessment is the fourth phase in the process. To accomplish
this, it is necessary to comprehend the requirements of all of the stakeholders. What
are their objectives, exactly? What exactly are their worries? What do they anticipate
will happen? A "Needs Analysis" is a methodical process that is comprised of a
defined sequence of steps that are completed in sequential order. The Needs
Assessment places more of an emphasis on the goals (or results) that are to be
accomplished as opposed to the methods that will be used (i.e., process). Reading
achievement is an example of an outcome, whereas reading education is an example
of a means toward achieving that outcome.

5. Develop a negotiation strategy:

• The formulation of a bargaining strategy constitutes the fifth step. This requires
having an awareness of both the goals of the project as well as the requirements of
the stakeholders. Creating a strategy for how those goals can be achieved most
effectively while also satisfying the requirements of the stakeholders is another part
of the process.

6. Negotiate the contract:

• The process of negotiating the contract constitutes the sixth phase. This is the
point in the process where the plan for negotiating is put into effect. The objective is
to negotiate terms of a settlement that are satisfactory to each of the many parties
concerned. A legally binding agreement on the conditions of a relationship between
two or more parties can be reached through a process known as contract
negotiation. This process takes place when two or more parties deliberate over the
terms of a contract in order to come to an agreement. The primary objective of
 contract talks is to ensure that both parties are happy with the rights and
responsibilities that have been allotted to them.

7. Ratify the contract:

 The ratification of the contract is the seventh and last step in the process. This
requires both parties to sign the contract and agree to its terms in order for this to
take place. A person ratifies a contract in the eyes of the law of contracts when they
accept the advantage that the contract promises, which makes it possible for the
contract to be legally enforced. This may include signing an official contract, but
one's behaviour may also ratify a contract.

2. Explain the cultural factors which make international hospitality marketing

more complex than a single market marketing. (25 marks)

The decisions that people make, the way they live their lives, and the religious, familial,
educational, and societal systems that they are a part of all have an impact on those
decisions. Every instance of marketing takes place inside an environment that is culturally
specific. The following are the cultural aspects that contribute to the increased difficulty of
international hospitality marketing as compared to marketing in a single market.

I. Language
There are about three thousand different languages spoken on this planet. It can be
challenging for marketers to produce product labels, brand and product names, tag
lines, and other marketing materials when faced with language hurdles. Businesses
that want to expand into new areas confront significant challenges because of the
limits imposed by language. Even well-established companies face the risk of having
their international business strategy jeopardised when language limitations lead to
misunderstandings with their partners or suppliers and cause communication
breakdowns.

II. Taboos and Customs

Traditions and taboos are ingrained in every culture around the world. In order for
marketers to identify what is appropriate and inappropriate to include in their
marketing campaigns, it is essential for them to have a solid understanding of the
various conventions and taboos that exist.
III. Different perspectives on business etiquette
Colleagues hailing from a variety of cultural backgrounds can bring to the workplace
a wide range of perspectives, values, behaviours, and standards of etiquette. In a
dynamic professional setting, these factors may be invigorating and even useful; but
they also have the potential to lead to misunderstandings and unfavourable feelings
among members of the team.

IV. Religion
"A way of life that is weaved around people's ultimate concerns," and is
characterised as "a socially shared system of ideas, thoughts, and behaviours that
relate to a reality that cannot be scientifically proved yet impacts the path of nature
and human events." People in many parts of the world attach significant significance
to their religious beliefs and practises, and this is true around the globe. Even
people's perspectives on work are shaped by their religious beliefs. As a
consequence of this, religion has a huge influence on the culture of businesses and
corporations. Many businesses modify their internal operations to reflect the
dominant religion of the nation in which they are based, including adjustments to
things like holidays, working hours, preferred cuisine, and clothing.

V. The society's attitude toward foreign business

The attitudes that society as a whole and governments have toward international
business, and more specifically international businesses and the products they
produce, is one of the social factors that has the potential to have a significant
impact on the success of multinational enterprises. There is a spectrum of responses
that can be seen from residents and the government of a country toward foreign
firms and the products they produce, ranging from total acceptance and trust to
complete mistrust and hostility.

VI. Political factors such as trade restrictions and tariffs can also impact
international hospitality marketing.
When it comes to the operation of international trade, politics are an essential
component. The ability of a corporation to join a foreign market and make a profit
will be affected by factors such as political stability, the attitude of political leaders
toward foreigners and international trade, and the degree to which the state
intervenes in the economy.
VII. Each country has its own set of laws and regulations that must be
followed.
Because of this, marketing goods or services in certain nations might be challenging.
Additionally, the importation and exportation of goods may be made more difficult by
the trade restrictions imposed by some nations.

3. "Understanding which aspects of social responsibility that should be applied to

international hospitality service operations is paramount". Explain this statement
in the context of business ethics with examples. (25marks)

The word "social responsibility" encompasses all of the humanitarian concerns at the
heart of a hotel's operations. Good customer service and developing the correct value
proposition for your company are crucial aspects of social responsibility, as stated in the
statement. Understanding which components of social responsibility should be applied to
international hospitality service operations is critical, according to this statement Business
ethics is a collection of rules by which an organization's management should control their
work and behaviour, aiming for sustainable development, ethical production, public
responsibility, and integrity in the workplace.
The majority of business sectors have made the decision to implement corporate
social responsibility (CSR) in some form or another as a mechanism by which these issues
can be overcome in order to meet these challenges. However, it is essential for all leaders in
business to have an understanding of how their company competes in today's increasingly
competitive market, in which businesses strive to establish themselves as socially
responsible or environmentally concerned enterprises. This can help them determine which
areas or elements are particularly crucial in contributing to the success of CSR projects.
When running a hotel in a different nation, for instance, it is essential to have a solid
understanding of the local customs, as well as the cultural norms and expectations that
pertain to social responsibility. While it is common practise in some societies to expect local
firms to make charitable contributions to the communities in which they are based, in other
societies this may not be seen as an extremely significant aspect of doing business.
It is absolutely necessary to the accomplishment of the company's goals to acquire
an awareness of the anticipations of the neighbourhood and to adjust the business's
approach to corporate social responsibility so that it fulfils those anticipations. Business
ethics refers to the guidelines for morally right and incorrect action in organisations. The
terms "legal" and "ethical," albeit not often synonymous, do influence behaviour to some
extent. Business ethics make the law stronger by outlining proper conduct that is not
governed by the government. "Philanthropic obligation" is a concept used to describe the
type of behaviour that society rewards, which includes charitable giving, volunteering, and
doing things for the community.
Society expects those who are legally responsible to act morally responsibly,
upholding both the text and the spirit of the law. The upholding of the law as well as actions
that safeguard consumer rights, the environment, and contractual duties are all examples of
ethical responsibility that society expects from its members. Economic responsibility is a
social requirement that comprises actions intended to boost income and cut costs. Business
ethics have an impact on a company's principles, goals, and day-to-day operations. A few of
the values that lead an ethical business include honesty, integrity, fairness, dependability,
responsibility, and respect for others. Being honest is part of social responsibility in the
hospitality sector. The ideal marketing strategy is a high-quality product. Instead of
overstating the social impact you achieve or "greenwashing" your hotel, let your
environmental and community-based activities speak for themselves.
Visitors may do their own research and leave if they believe they were misled. They
might even publish a review that puts off potential customers. Today's travellers are more
conscious than ever of their impact on the environment. They favour staying at hotels and
shopping at businesses that work to improve their neighbourhoods. Put social responsibility
initiatives in place at your company. It will have a significant positive impact on the world
and your brand. Using a cloud-based property management solution is also environmentally
friendly. More than simply paper is saved by contactless check-ins and emailed receipts.
Furthermore, it eliminates the requirement for onsite servers, which reduces energy
consumption, especially when used across numerous residences.
Furthermore, smartphone housekeeping reports help save energy by alerting staff
members in real-time when a room is empty so they can quickly turn off the lights and air
conditioning. Next, volunteer work and donations to charities. Social responsibility
encompasses more than just environmental protection. It involves supporting both people
and communities. It makes sense to me as a hotelier. Your community, which attracts
tourists, makes your neighbourhood exceptional. Create initiatives or activities that will help
the area you love. For instance, Accor received a 2021 Hospitality Award in the category of
social responsibility for establishing the All Heartist Fund to help anyone experiencing
trouble as a result of Covid-19 in terms of their health or money. They helped about 94,000
people, and their brand became well-known as a result. The experience of staying there has
advantages. Cash is not necessary from your end. A contender for this award, Odalys
Group, gave studio apartments in kind to women suffering domestic abuse. A different
hotel, The Berkeley, opened a drive-through delivering free hot meals to emergency
responders during the pandemic. Start by inquiring if there are any leftovers that you can
donate to your local food bank.
Disability Access is the only thing else. One in four potential tourists have a disability.
Provide comfortable accommodations to make everyone feel at home. Closed captioning,
fonts that are simple to read for dyslexics, accessible ramps, and alternative menu options
may all be helpful to those with disabilities. Despite the fact that one in four potential guests
is disabled, not all of them have the same impairment. Pay attention to their requirements
while they are being described. Additionally, there is a staffing shortage in the hotel
industry. Housekeeping personnel are giving up their Lysol because they make less than
$30,000 year and cannot support their families in a decent manner on that sum. Visitors will
be happier when they know that you give your staff a living wage. Benefits are also
advantageous. Health insurance allows for a lot. In order to make your employees' working
days run more smoothly, provide them with the tools they need to complete their
responsibilities proficiently. Using your cloud PMS will help departments coordinate better
and expedite procedures like check-in and housekeeping.
Finally, the company ought to already be aware of this information from research,
surveys, and secondary data. Having said that, these data can be used to assess which
factors are crucial for a corporation to have an impact on social responsibility. The most
important part of social responsibility is making sure that every visitor may enjoy their time
with your business in a safe atmosphere for their physical and emotional well-being.

4. Explain why international hospitality is seen as a positive investment for Small

and Medium Enterprises (SMEs). (25 marks)

Hotels, resorts, and other tourism-related developments around the world are in high
demand as the industry continues to grow. Everything from new hotels and resorts to tourist
attractions, operations and administration of community assets are included in these
developments. It is becoming increasingly popular to build new hotels, resorts, and other
types of tourism-related facilities around the world. Supply chain sustainability is a critical
issue that must be addressed at every step of its development. Choosing a location that
takes climate and economic variables into account, or implementing operational techniques
that reduce water consumption and waste output, are two ways to do this. Consider
installing low-flow plumbing fixtures or providing on-site showers before visiting a nearby
beach or park, for example. Hotels should consider this. Additionally, international hospitality
providers can lower their costs by using local suppliers whenever possible, thereby reducing
the number of raw materials that must be imported from other countries.

The hospitality sector can be viewed as a great investment for small and medium-
sized businesses because it is less erratic than the manufacturing sector. When compared to
technology or manufacturing, hospitality is viewed as a low-risk industry. This is due, in
part, to the fact that accommodations and dining establishments must provide
entertainment for patrons and run smoothly to encourage repeat business. There are no
rules when it comes to technology, and there are no restrictions when it comes to
production. To keep your consumers satisfied, you need to be innovative in the hospitality
industry. It doesn't, for instance, rely on production methods that have a significant risk of
failure once products are out onto the market, like manufacturing. SME's, which might not
have access to the same level of resources, find investing in the hospitality industry
appealing due to its low risk. It has fewer capital requirements than other industries, for
instance, and less risk of financial loss in the event of a recession. On the other hand, due to
the accessibility of affordable labour, it is also one of the most lucrative sectors in some
regions. This implies that businesses can conduct their operations on a wider scale and with
greater customer ties than they would generally find in other industries.

Due to its minimal entrance requirements, the hotel sector is a desirable option for
small and medium-sized businesses. This is due to the fact that a foreign competitor's
business is quite similar to that of already established domestic rivals. The sole distinction is
that it was founded and has expanded from there rather than the customer's country. Or to
put it another way, a new competitor offers advantages that an established company can't
match without making significant investments in infrastructure and human resources, which
may not be as profitable. Additionally, nations frequently relax laws governing food safety
because they don't want foreign governments interfering with their domestic market
economies. International hospitality brands and services don't really need much more than
an office and a few employees, who may be paid relatively minimal wages due to the costs
being so low. The industry is appealing to small and medium-sized firms because of its
growth potential; as such, it is a wise investment and provides them with a chance to grow
their company by entering foreign markets.
 Because they have a favourable impact on the local economy and generate jobs,
international hospitality projects are viewed as a good investment for SMEs. These
developments also boost tourism, which can result in higher income and better tourist
services. Because it can have both short- and long-term advantages, investing in
international hospitality is frequently regarded as a wise move for SMEs. Greater motivation
among staff members, increased revenue for the company and its owners, and a second
marketing channel that might raise consumer knowledge of the brand are all immediate
advantages. Longer term gains consist of higher tourism expenditure in the region and
better customer service as a result of freshly hired talent.

The hospitality sector of the economy contributes positively. Spending on hotels,

other services, and attention from hosts and their visitors generates income for the host
industry. This sector employs a lot of SMEs, which promotes the expansion of those
companies. Aside from that, there are lots of employment openings in the hotel industry,
and these positions frequently call for applicants with expertise in a variety of fields,
including management, sales, and customer service. In addition to helping the local
economy through client spending, these occupations give people the money they need to
support themselves and their families.

Small and medium-sized businesses are seen to benefit from investing in the hotel
sector (SMEs). It provides a global setting, a variety of prospects, and simple access to a
huge consumer base. When SMEs invest in the hospitality industry, they frequently have
access to global networks and knowledge that can help them compete successfully in this
field. When investing in the hospitality industry, small and medium-sized businesses (SMEs)
have the potential to draw on global networks and knowledge, which can aid them in
competing successfully in this industry. SMEs always search for new markets and
possibilities since the expansion of their companies is constrained by a small customer base
and is frequently inhibited by costly start-up costs.