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Every organization at some time faces the need to change quickly and to survive in a changing environment. Many companies recognize the need for greater product and service innovation to keep pace with technological and societal advances and compete with the growing power the other companies. Rather than focusing of ways to improve efficiency and cut costs, today's companies are rewiring their organization for creativity and innovation.
Our hotel also needs to change in order to survive in a rapid changing environment and to keep its competitiveness in the market because competition in our days is more intense than ever before. The possible reasons for our hotel to change are: the sales of its product forms and brands have reached to the decline stage. Sales decline for many reasons, such as technological advances, new more attractive products appear in the market and increased competition. Perhaps the product is not up to scratch, perhaps the quality is poor, maybe the price is too high, so to keep this weak product can be very costly to the hotel and not just in terms to reduce profit. Falling sales is a sign that there is something wrong with the product or the price. Sometimes the fall in sales might be as a result of the competition providing a better product or service. The failing reputation of the product can shake customer confidence in the hotel and its products. Management has now to decide whether to maintain or drop weak products to avoid a decrease in its profitability. Another reason for a hotel change is to provide its customers more innovative products and by doing this it will allow it to best achieve its objectives. The demand of the guests has reached higher levels and their expectations are increased as for the goods and services, thus our hotel in order to respond to changes in demand, to keep up with the new technology and to satisfy customers' wants and needs has to change its product. Also as the new requirements from the customers come up, the hotel must change the facilities which offer and to develop more amenities in order to attract more customers.
Another key reason for change is a change in technology in the organization's production process, that means how the hotel does its work as for how developed is the equipment which is used in the different departments, the reservation systems etc., technology has always played an important role in products and services provided to customers. Hotel management had to ensure that they are offering the most recent technologies to customers regardless of their industry. Today's technology offers great possibilities for increased efficiency, control and marketing. For example computers offer many efficient applications for document creation, creating marketing materials, record keeping and storing customer information. Hotels can research markets, competitors and create databases of customer email addresses for newsletters and direct marketing. Technology changes are designed to make the production of a product or service more competent and well-organized.
Poor planning is another reason for change a hotel. "Glocal Vantage, Inc "describes planning as follows: "Planning is not about what you will do in the future. It is about the future implications of present decisions and actions". It is very important to research the demand for a product or service, identifying the target market, calculating necessary capital and selecting a location and all are critical factors of planning that lead to determining a clear business plan. Another area of planning that should be considered is the managerial duties that will be required in day-to-day operations. The hotel management will not simply be selling the product and talking to customers but they will be concerned in all aspects of the business and should not underestimate the impact of these activities on their time and availability. Proper planning plays a critical role in the success of a company and should not be overlooked.
Globalization in our days is more rapid and the distance is becoming a shrinking barrier. Markets are globalizing so quickly as the hotels that compete in them. The game of every company in today's global economic, technological and social change is to survive. If a company is going to bear harsh and continuously in growing global competition, needs to be different and change the way of doing business. They should give up with the old ethics and customs and start creating a new management model, switch from management to leadership, build trust and drive out the fear of failure.
Weak and inexperienced management is one of the major reasons of business change. Managers have to work extremely hard trying to understand the needs of their customers' and to understand the philosophy of the hotel that they are in if they want to be successful.
Another reason for change is to find ways to expand your business by making a strategic acquisition (when you buy another business and end up you controlling it) or merging with another business (when you integrate your business with another and share the control with the other owners).
Our goal is the guest satisfaction, so by changing our product we will succeed to provide greater products to our guests and to increase our profitability. The main changes within the hotel will focused on employee-participation teams, introducing new products and provide new training systems. Our hotel must develop improved production technologies; create new products and services which are desired from the guests and to upgrade the skills from our employees.