Elements in global hospitality expansion
- Authors: Van Oudtshoorn, Clive Niel
- Date: 2012
- Subjects: Hospitality industry , International business enterprises , Strategic planning
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8838 , http://hdl.handle.net/10948/d1019970
- Description: This study reflects an investigation into four elements that could affect global expansion strategies within the hotel industry. In both emerging and developed economies, the increased growth within the services sector has become more apparent. There is considerable knowledge and literature available on the process of internationalisation, globalisation and expansion within the services sector and as this information is important to understand the internationalisation process itself, the decision to expand (cross border) presents a number of opportunities and challenges to the hotel industry. Hotels are comprised of a number of divisions and departments, which collectively offer unique services and facilities to various markets. Within this context, careful consideration is required with respect to an organisation‟s overall strategic objectives, the internal structure and how government and cultural influences and differences affect global expansion. Organisational matters such as strategic objectives as well as operational functions such as financial, marketing and sales, human resources and organisational design must also be considered as hotels require synergy within each of these various components in order to function optimally. When international or globalisation opportunities present themselves or are proactively sought, organisations need to ensure that various factors are clearly understood, analysed and identified. These include the most appropriate strategy required, the organisations own internal capacity levels, governmental influences and cultural dynamics. An in-depth literature review regarding the internationalisation process was conducted where-after a review was compiled and interviews set up with directors of hotel groups who are responsible for global expansion within their respective organisations. The sample included three local South African and two international hotel groups who either were contemplating or who had already expanded internationally. It is evident that hotel companies have a preference to non-equity based expansion either through management contracts or joint ventures. In addition, expansion into emerging markets required a different approach to that of developed markets and a unique understanding of the government and cultural influences of the host country was required.
- Full Text:
- Date Issued: 2012
- Authors: Van Oudtshoorn, Clive Niel
- Date: 2012
- Subjects: Hospitality industry , International business enterprises , Strategic planning
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8838 , http://hdl.handle.net/10948/d1019970
- Description: This study reflects an investigation into four elements that could affect global expansion strategies within the hotel industry. In both emerging and developed economies, the increased growth within the services sector has become more apparent. There is considerable knowledge and literature available on the process of internationalisation, globalisation and expansion within the services sector and as this information is important to understand the internationalisation process itself, the decision to expand (cross border) presents a number of opportunities and challenges to the hotel industry. Hotels are comprised of a number of divisions and departments, which collectively offer unique services and facilities to various markets. Within this context, careful consideration is required with respect to an organisation‟s overall strategic objectives, the internal structure and how government and cultural influences and differences affect global expansion. Organisational matters such as strategic objectives as well as operational functions such as financial, marketing and sales, human resources and organisational design must also be considered as hotels require synergy within each of these various components in order to function optimally. When international or globalisation opportunities present themselves or are proactively sought, organisations need to ensure that various factors are clearly understood, analysed and identified. These include the most appropriate strategy required, the organisations own internal capacity levels, governmental influences and cultural dynamics. An in-depth literature review regarding the internationalisation process was conducted where-after a review was compiled and interviews set up with directors of hotel groups who are responsible for global expansion within their respective organisations. The sample included three local South African and two international hotel groups who either were contemplating or who had already expanded internationally. It is evident that hotel companies have a preference to non-equity based expansion either through management contracts or joint ventures. In addition, expansion into emerging markets required a different approach to that of developed markets and a unique understanding of the government and cultural influences of the host country was required.
- Full Text:
- Date Issued: 2012
Strategies engaged by a South African beverage organisation entering African markets
- Authors: Brink, Andries Petrus
- Date: 2005
- Subjects: International business enterprises , Coca-cola Sabco (Firm) , Soft drink industry -- South Africa , International trade
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8544 , http://hdl.handle.net/10948/410 , International business enterprises , Coca-cola Sabco (Firm) , Soft drink industry -- South Africa , International trade
- Description: Africa is acknowledged as a vast, untapped market for consumer goods as trade barriers are coming down and economies are starting to develop. The need for consumer goods arises with economic activity. This poses the following question, which will be addressed by this research: How can potential African consumer markets be successfully unlocked by a South African beverage organisation, thereby reducing risk of failure and eliminating the cost of a hit-and-miss approach? The secondary study focused on evaluating the aspects involved with risks and the modes of entry into foreign markets. The macro-environmental factors affecting the expansion into foreign markets were investigated to determine what influence they had on the entry mode chosen for a specific country targeted for expansion. Finally the marketing factors influencing the entry mode were analysed. The significance of trade blocs together with the advantages thereof was included in the study. The primary study was based on the theory and principles of existing literature. The Coca-Cola Sabco organisation was taken as a case study. Four countries, namely Kenya, Uganda, Mozambique and Namibia, were investigated. Questionnaires containing a set of questions to satisfy the sub-problems were sent to the various country managers and their first layers of management. Likewise, interviews were conducted with Coca-Cola Sabco head office strategic management. The empirical results obtained, indicated a strong concurrence, with the theory of entry modes and the influences of macro-environmental factors. In certain aspects, however, some contradictions with the theory pertaining to the Coca-Cola Sabco organisation, were observed. The findings concurred with the theory in that risk were minimised by the acquisition of a going concern that already possessed the infrastructure and logistics such as raw material procurement, manufacturing staff skills, distribution networks and political contacts. The empirical results contradict theory with respect to location economies and scale economies, as the Coca-Cola Company’s franchise agreement excludes the exporting of beverage products. Furthermore, Coca-Cola Sabco becomes involved in expansion initiatives only in reaction to an invitation from the Coca-Cola Company and not of its own desire. Therefore, market surveys are conducted subsequent to an invitation from the Coca-Cola Company. South African organisations planning expansion initiatives into emerging African markets need to take the specific macro- environmental factors of the country in question into consideration in order to minimise risk. A franchise agreement restricting exporting as in the case of Coco-Cola Company or any other restrictive agreement, might cause a deviation from contemporary theory, for example, where markets will be assessed for purposes of location and scale economies. Deviations from contemporary theory could also occur where a franchise opportunity is offered in a specific country that may not be the preferred market choice, due to its lack of growth potential.
- Full Text:
- Date Issued: 2005
- Authors: Brink, Andries Petrus
- Date: 2005
- Subjects: International business enterprises , Coca-cola Sabco (Firm) , Soft drink industry -- South Africa , International trade
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8544 , http://hdl.handle.net/10948/410 , International business enterprises , Coca-cola Sabco (Firm) , Soft drink industry -- South Africa , International trade
- Description: Africa is acknowledged as a vast, untapped market for consumer goods as trade barriers are coming down and economies are starting to develop. The need for consumer goods arises with economic activity. This poses the following question, which will be addressed by this research: How can potential African consumer markets be successfully unlocked by a South African beverage organisation, thereby reducing risk of failure and eliminating the cost of a hit-and-miss approach? The secondary study focused on evaluating the aspects involved with risks and the modes of entry into foreign markets. The macro-environmental factors affecting the expansion into foreign markets were investigated to determine what influence they had on the entry mode chosen for a specific country targeted for expansion. Finally the marketing factors influencing the entry mode were analysed. The significance of trade blocs together with the advantages thereof was included in the study. The primary study was based on the theory and principles of existing literature. The Coca-Cola Sabco organisation was taken as a case study. Four countries, namely Kenya, Uganda, Mozambique and Namibia, were investigated. Questionnaires containing a set of questions to satisfy the sub-problems were sent to the various country managers and their first layers of management. Likewise, interviews were conducted with Coca-Cola Sabco head office strategic management. The empirical results obtained, indicated a strong concurrence, with the theory of entry modes and the influences of macro-environmental factors. In certain aspects, however, some contradictions with the theory pertaining to the Coca-Cola Sabco organisation, were observed. The findings concurred with the theory in that risk were minimised by the acquisition of a going concern that already possessed the infrastructure and logistics such as raw material procurement, manufacturing staff skills, distribution networks and political contacts. The empirical results contradict theory with respect to location economies and scale economies, as the Coca-Cola Company’s franchise agreement excludes the exporting of beverage products. Furthermore, Coca-Cola Sabco becomes involved in expansion initiatives only in reaction to an invitation from the Coca-Cola Company and not of its own desire. Therefore, market surveys are conducted subsequent to an invitation from the Coca-Cola Company. South African organisations planning expansion initiatives into emerging African markets need to take the specific macro- environmental factors of the country in question into consideration in order to minimise risk. A franchise agreement restricting exporting as in the case of Coco-Cola Company or any other restrictive agreement, might cause a deviation from contemporary theory, for example, where markets will be assessed for purposes of location and scale economies. Deviations from contemporary theory could also occur where a franchise opportunity is offered in a specific country that may not be the preferred market choice, due to its lack of growth potential.
- Full Text:
- Date Issued: 2005
Analysis of the modes of entry into the central East Africa market for a multinational enterprise
- Authors: Knight, John Lawry Cole
- Date: 2001
- Subjects: Export marketing , Competition, International , International business enterprises
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10842 , http://hdl.handle.net/10948/38 , Export marketing , Competition, International , International business enterprises
- Description: The research problem addressed in this study is to determine the potential of selling and marketing consumer goods by Multinational Enterprises (MNE) within the African markets. The mode of entry, the timing of entry, the different modes of entry, selection of the entry mode, the political and economic risks, core competencies of the company and strategic alliance was researched. To achieve this, research was executed on the above areas of importance using relevant literature in which an understanding of the international markets and their options of modes of entry were highlighted. In this way one is able to understand the importance of the international markets and the concerns of doing business in Africa in order to select the entry mode that could best suit the company and the country or countries in Africa. The literature study was then used to develop a questionnaire to test the degree to which managers in MNE in South Africa (SA) and Central East Africa (CEA) concur with regard to the decisions, risks, procedure, modes of entry and selection of modes of entry into Africa. The empirical results obtained indicate a strong concurrence with the analysis of the modes of entry into CEA market for an MNE. The analysis of the literature study, Chapter 2 and 3, gives business a good understanding of the advantages and disadvantages of the problems and opportunities associated with the entry decisions into CEA. Many other companies are entering the African markets from other parts of the world and SA has also been seen as a launching pad into Africa. The analysis will give companies the edge in seeing the problems and opportunities in African markets and the way forward when deciding to enter.
- Full Text:
- Date Issued: 2001
- Authors: Knight, John Lawry Cole
- Date: 2001
- Subjects: Export marketing , Competition, International , International business enterprises
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10842 , http://hdl.handle.net/10948/38 , Export marketing , Competition, International , International business enterprises
- Description: The research problem addressed in this study is to determine the potential of selling and marketing consumer goods by Multinational Enterprises (MNE) within the African markets. The mode of entry, the timing of entry, the different modes of entry, selection of the entry mode, the political and economic risks, core competencies of the company and strategic alliance was researched. To achieve this, research was executed on the above areas of importance using relevant literature in which an understanding of the international markets and their options of modes of entry were highlighted. In this way one is able to understand the importance of the international markets and the concerns of doing business in Africa in order to select the entry mode that could best suit the company and the country or countries in Africa. The literature study was then used to develop a questionnaire to test the degree to which managers in MNE in South Africa (SA) and Central East Africa (CEA) concur with regard to the decisions, risks, procedure, modes of entry and selection of modes of entry into Africa. The empirical results obtained indicate a strong concurrence with the analysis of the modes of entry into CEA market for an MNE. The analysis of the literature study, Chapter 2 and 3, gives business a good understanding of the advantages and disadvantages of the problems and opportunities associated with the entry decisions into CEA. Many other companies are entering the African markets from other parts of the world and SA has also been seen as a launching pad into Africa. The analysis will give companies the edge in seeing the problems and opportunities in African markets and the way forward when deciding to enter.
- Full Text:
- Date Issued: 2001
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