Globalization and Hospitality Industry

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Table of content

Table of content
Introduction
1. Globalization and its definition
2. Globalization and Hospitality Industry
3. Challenges brought by Globalization
3.1 Globalizing marketing
3.2 Global promotion
3.3 Global advertising
3.4 Global e-marketing
3.5 Global pricing
3.6 Global ethics
4. Strategies and tends toward Globalization
Conclusion
References

Introduction

World maps define national boundaries, but those lines belay the increasingly clear nature of the global economy. As recently as 30 years ago the international enterprise was a relatively rare phenomenon, and the term multinational was seldom heard (Gomes, 1991). Today, many companies have transcended the multinational phase and operate as trans-national or global companies. These labels reflect a major shift in the structure of the world market for goods and services - a shift to a competitive framework that has far-reaching impacts for almost all industries. Experts have predicted that by the year 2015, global corporations will control approximately half of the world’s assets. Сompanies are in the process of internationalizing the production of a vast array of manufactured goods, with mega-companies controlling factories all over the world. Globalization has become an umbrella word for a number of political, sociological, environmental and economic trends which present challenges on a worldwide scale. The world as it was known long time ago, does not exist any longer, now we experience “shrunk" world (Dr. M.Cho, 2005). The globalization of business and lifestyles is characterized by communicating over vast distances in foreign languages, frequent travel to overseas countries, dealing in many currencies, and coping with a variety of political and social systems, regulatory environments, cultures and customs. While these aspects of globalization are easy to identify, understanding the underlying current and future trends can be problematic. Analysis, however, reveals that a number of issues are reshaping the global hospitality industry, although there are clearly some complex questions that are still to be resolved: ·International expansion with common product and brand position; ·Sales and marketing programs that fully capture global economies of scale; ·Organizational structures that allow global delivery of services with local operational control; ·Cross-border employee training to support operations (Cline R.S. n.d.). Globalization is typified by the rapid movement of people, information and capital across national borders worldwide in ways that would have been difficult to envision not too many years ago. Yet 'globalization,' accepted though it is as a fashionable force, is a big concept requiring careful definition. As many experts you as many definitions you will get, therefore in this paper I will challenge to point out different definition of globalization and what is behind it. This paper will outline such issues as globalization vs. Internationalization and its difference. Globalization has huge influence on Hospitality Industry, and it brought lots of challenges, consequently Hospitality Industry should and does keep up with rigid business by defining strategies and tends toward Globalization.

1. Globalization and its definition

In order to understand globalization, after defining it, we should have a look at how it got started. “During the 1970s the word “globalization” was never mentioned in the pages of the New York Times. In the 1980s the word cropped up less than once a week, in the first half of the 1990s less than twice a week - and in the latter half of the decade no more than three times a week. In 2000 there were 514 stories in the paper that made reference to “globalization”; there were 364 stories in 2001 and 393 references in 2002. Based on stories in the New York Times, the idea of being “anti-globalization" was not one that existed before about 1999. Turning from the newspaper to the internet,...
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