Organizational Performance Of Hotels In Malaysia Marketing Essay

Organizational Performance Of Hotels In Malaysia Marketing Essay ariseThis ponder investigates the birth among war-ridden outline and foodstuffplace place penchant on organisational exercise of hotels in Malaysia. This refreshings report provides an overview of the interrogation in terms of background of the oeuvre, problem statement, questions and objectives of the study. Additionally, this paper presents the hypothetical good example and hypotheses growing. Finally, this paper discusses about the signifi bungholeces, limitations and conclusion.Keywords Cost leadership, Differentiation, Customer predilection, Competitor orientation and Organizational execution of instrumentBackground of the studyIn the present cable purlieu, Malaysian hospitality industry has graspd more attention. In line with, Malaysian governments policies to convert the Malaysian economic purview from production based to companionship based, has made the improvement arena became onenes s of the pillars for the national economic egress. found on productiveness Report 2010/2011, the service sector contributed almost 48.45 percent of the Gross municipal Product (GDP) and 4.74 percent of productivity growth in the year 2010. Additionally, the statistic by Department of Statistic Malaysia shows that service sector remained as a major device driver of the Malaysian economy by recording 7 percent growth in Third Quarter of 2011. One of the crucial components of the service sector is hospitality industry.The hospitality industry consists of the accommodation, transportation, restaurant and entertainment sector which liner tremendous competition. In Malaysia, the hotel industry is a one of electromotive force industry. The role of the hotel industry to the national economy is plentiful. The hotel industry is not only contributed to a variety of economic sectors but also a labour intensive industry with the capacity to create job opportunities. The Ministry of Tourism of Malaysia is encouraging development of hotel industry in Malaysia by planning and implementing various valuable events and policies. Based on Malaysian Tourism Industry Outlook, tourism is the second largest ratifier to Malaysian economic development. Additionally, Malaysia has a strong tourism position as the 9th most visited country in the world and gain RM 1 one one jillion million million receipts per week from the foreign tourist.A total of 24.6 million tourists were arriving in Malaysia and spent RM 56.5 billion in 2010 compared to previous years, the number of tourist arrivals was 23.6 million and spent RM 53.4 billion. Furthermore, the ground Tourism Ranking by United Nations World Tourism Organization shows that Malaysia is a second largest tourist arrival ending in Asia Pacific in 2010. Additionally, the domestic tourism also gained tax revenue of RM 25.98 billion in 2009. By 2011, the Malaysian Tourism Ministry is forecasting 25 million tourist arrivals and earn RM 60 billion in tourism receipts. By 2020, the Malaysian government under National Key sparing Area (NKEA) expecting the tourism industry pass on contribute RM 103.6 billion in Gross Nation Incomes (GNI) by increasing the number of tourist arrivals from 24.6 million to 36 million.Based on the report by Malaysian railroad tie of Hotel (MAH), in November 2011 thither are 888 one sentiency to five star hotels around Malaysia. The MAH report shows that there were 264 terce to five star hotels in Peninsular Malaysia, 102 ternary to five star hotels in Sabah and Sarawak and 77 three to five star hotels in federal territories. Thus, currently there were 443 three to five star hotels in Malaysia. This figure shows growing of hotel industry in Malaysia.Problem statementNotwithstanding the rapid growth, the hospitality industry is liner various challenges from external and internal factors in a business environment which modify the organizational performance. This terrific combativ e business environment needful the organization to adopt the finest competitory outline and market place orientation which croupe be best strategic fit for the organizational strategic billing and practices in send to achieve greater organizational performance and competitive advantage (Kumar, Subramanian Stradholm, 2011 Parnell, 2011 Zhou, Brown Dev, 2009 Abdullah, Mohamed, Othman Uli, 2009 Allen Helms, 2006 Prajogo, 2006 Javalgi, Whipple Ghosh, 2005 Vazquez, Santos Alvarez, 2001). In fact, the above two factors fix the potential to establish the competitiveness take aim and organizational performance (Nandakumar, Ghobadian Regan, 2011 Ainrafas, Irabkha Isabba, 2011 Bordean, Borza, Nistor Mitra, 2010 Fierro, Mur, Hart Redondo, 2010 Bordean, Borza, Plescan Mitra, 2010 Seedee, Sulaiman Ismail, 2009 Vazquez, Santos Alvarez, 2001 Porter, 1980, 1985). notwithstanding so, a very limited empirical study has been conducted in examining the alliance mingled with the se combinations of proteans which highlighted by this study. The framework proposed in this study considers the generic competitive system as business level strategies and go away be the mugwump variable and the marketing orientation considers as functional level strategy and apply as a mediating variable and their effects on organizational performance as a dependent variable. The previous literature reviews revealed that researchers lease been using monetary and non- financial method to measure the organizational performances. The financial measures such as withdraw on Assets, Return on Sales, Return on Equity, profitability, market share which using instruments of Ramanujam Vengkataraman, Dess Robinson and Lee Miller (Nandakumar, Ghobadian Regan, 2011 Seedee, Sulaiman Ismail, 2009 Allen Helms, 2006).On the otherwise hand, some researchers used financial and non- financial instruments to measure the organizational performance (Bordean, Borza, Nistor Mitra, 2010 Abdul lah, Mohamed, Othman Uli, 2009). Evans (2005) used the Balanced circuit card (BSC) method in come in to measure the performances of service industry. The Balanced Scorecard method found by Kaplan Norton (1992) is a useful tool of performance measurement for the hotel industry. This balanced Scorecard equipped with four dimensions namely financial perspective, client perspective, internal butt perspective and learning growth perspective. Actually, there were very limited studies have been conducted using the Balanced Scorecard to measure organizational performance of hotels in Malaysia. (Razalli, Dahlan T.Ramayah, 2007 Jusoh Parnell, 2008).Thus, this study ordaining use the BSC method to measure the organizational performance of hotels. Indeed, it has been very common practice to study the integrating issues from a wide of the mark range of perspectives. However, conducting a research involving various strategic issues in one particular theoretical framework is still consi dered as unusual and a la mode(p) (Yang Huang, 2000). In short, the previous literatures show that the researchers have conducted various studies on these above mention variables independently. Hence, this could be the key inadequacy in prior researches where for each one study conducted on a particular basis. Even though, the past studies add valuable information to the existing knowledge but it is still inadequate studies which integrating these three constructs in one theoretical framework. Thus, in order to address this inadequacy and bridge the existing gap this study will investigate the brilliance of the race between competitive strategy and market orientation and the consequences on organizational performance of hotels in Malaysia. This study will examine the context of research more holistically from the strategic concern perspective for the best decision qualification process in order to achieve sterling(prenominal) organizational performance among hotels in Malay sia. interrogation QuestionsBased on the problem statement, the following questions will be used as a fundamental guidance to conduct this study which stated belowRQ 1 Is there a relationship between competitive strategy and market orientation?RQ 2 Is there any mediation effect of market orientation on competitive strategy and organizational performance?Research ObjectivesThe general objectives of the study are to examine the influence of competitive strategy and market orientation on organizational performance. The specific objectives are as followsRO 1 To investigate the relationship between competitive strategy and market orientation.RO 2 To investigate the influence of market orientation as mediating variable in the relationship between competitive strategy and organizational performance.Overview of abstractive FrameworkBased on the research gaps identified from the prior literature, this study will investigate constructs in the context of competition among the hotels in Malays ia. epitome 1.1 illustrates the theoretical framework and hypotheses relationship in an endeavour to address the research objectives as mentioned before.Figure 1.1 Relationship of militant Strategy and Market orientation on Organizational Performance.Organizational performanceMarket orientationCompetitive strategyCompetitor orientationCost leadershipCustomer orientationDifferentiationHypothesis development of studyBased on the theoretical framework, this study formulates eight hypotheses to examine the relationship. The hypotheses are as followsH1 There is a relationship between cost leadership and competitor orientation.H2 There is a relationship between differentiation and customer orientation.H3 There is a relationship between cost leadership and organizational performance.H4 There is a relationship between differentiation and organizational performance.H5 There is a relationship between competitor orientation and organizational performance.H6 There is a relationship between cu stomer orientation and organizational performance.H7 Hotel pursuing cost leadership mediating by competitor orientation produce better performance.H8 Hotel pursuing differentiations mediating by customer orientation produce better performance.Significance of studyThis study emphasizes the importance of competitive strategy and market orientation and their relationships towards organizational performance. Specifically, it is predicted that the adaptability of these combined factors will contribute major impact to the organizational performance. This significance of study can be viewed from two perspectives practical and theoretical significance. Below a design elaboration on how this study able to contribute to the body of knowledge from the strategic management perspectives specifically on the process of decision making. practical(a) significance This study will determine some imperative issues and the gaps in the literature related to the strategic relationship between competitive strategy and market orientation on organizational performance, especially in hotels of Malaysia. These analyses will shed some lights to the hotel industrys competitiveness. The findings of this study shall formulate better strategic management choices and strategic decision making in order to gain competitive advantage. In order for that, this study will generate a framework which shall enhance the confidence and potential of top executives and managers for making very concrete decisions.Theoretical significance This study will contribute to the competitiveness conjecture development and it is envisaged to be further input to the process of decision making. The new framework which proposed would expand the existing body of knowledge.Limitations of studyThe only localise of this study is on the strategic relationship between competitive strategy and market orientation on the organizational performance of hotels in Malaysia. For that reason, the cathode-ray oscilloscope of the s tudy is on the hotel industry in Malaysia only, with a particular pore on three to five star rated hotels in Malaysia. Finally, other aspects or factors excludes from the scope of the study. It is undeniable, contribution from other factors or issues may perhaps affect or provide valuable information for the managerial decision making process, so if such situation occurs that will consider as limitations of the study as well.ConclusionIn conclusion, it is predicted that the findings of this study will give a strong message to top management regarding the decision making of business level strategy and functional level strategy for the hotel industry. In other word, the top management should carefully derive best strategic choice for the hotel by making alignment between business level, functional level and operational level strategies. If all the hotels in Malaysia continuously strive towards big(p) importance to strategic decision making of the above mentioned factors, then there is no doubt the Malaysian hotel industry will generate superior organizational performance and competitive advantage which lead our hotel industry to be positioned in world class hospitality business.