Growth Strategies Decision-Making Process in Large Hotel Chains - Dissertation Example

Globalization has brought about significant changes in the world of business and has opened new avenues for investments; however one should understand the importance of a well-planned project. To ensure the project’s survivability, the whole process of decision-making must be supervised and overseen (Armesh, n.d.). It is crucially important that proper actions should be taken at the right stages of the decision-making process and proper teams should be assigned to carry out the decisions (Armesh, n.d.) Only when the decisions are made after adequate research, the plans could be successful as highlighted by Walter (2010, p. 4) “the more information the “decision-makers” have, the better will be the decision”. Walter (2010) explained that decision-making requires balancing multiple objectives and there is an element of uncertainty in decisions where only the clarity of goals can tell the decision-maker the best alternative therefore it is always good to have information because only then decision-makers will be able to make informed decisions.
The importance of making good decisions increases even further when the decision involves the selection and implementation of growth strategies because then the stakes and risks are also high (Armesh, n.d.). Growth requires heavy investment and if things go wrong the business has to face heavy losses. Today, big hotel chains confront greater needs to invest more and more resources in the decision-making process. In globalized and yet distinguished markets, large hotels must take all factors into account and consider the best growth decision; thus, ensuring the success of the projects and return on their investment.
The increasing competitiveness of the business environment has affected the hotel industry as well and large hotel chains are seen investing more resources in research, analysis, and decision-making processes. To enter a new market or penetrate deeper into the existing one, hotels have to evaluate and make extensive research before investing in the projects. While decisions in the best interest of the hotel require the involvement of many departments from marketing to HR, it has been observed that the decision-making processes are greatly influenced by the type of hotel chains and their goals. Thus, the proper team should be gathered to evaluate the market at best, taking into account the hotel’s specifications and the difference in markets.
Besides the internal factors, external factors including local market-mix, competition, and government are among a few factors that may affect the decision-making process (Morschett et al., 2007). Globalization and advancement in technology are other factors that have had a deep impact on decisions made in the hotel industry. Deciding on the location is also a major factor the chains of hotels consider when expanding further. By considering all these factors, companies may adjust their decision-making process to maximize results with minimum costs. Moreover, there must be a clear understanding of the company’s profile, which will ensure risk minimization during the expansion process (Yan, 2007).
The fall of communism has brought about major changes in Eastern Europe with increased business opportunities and tourism being at the top of the list. Both activities demand hospitality services and the promising potential opportunities have attracted the attention of many international chains of hotels.