A Flow-Through Analysis of the US Lodging Industry During the Great Recession

Purpose – The objective of this exploratory study is to investigate the “flow-through” or relationship between top-line measures of hotel operating performance (occupancy, average daily rate and revenue per available room) and bottom-line measures of profitability (gross operating profit and net operating income), before and during the recent great recession. Design/methodology/approach – This study uses data provided by PKF Hospitality Research for the period from 2007-2009. A total of 714 hotels were analyzed and various top-line and bottom-line profitability changes were computed using both absolute levels and percentages. Multiple regression analysis was used to examine the relationship between top and bottom line measures, and to derive flow-through ratios. Findings – The results show that average daily rate (ADR) and occupancy are significantly and positively related to gross operating profit per available room (GOPPAR) and net operating income per available room (NOIPAR). The evidence indicates that ADR, rather than occupancy, appears to be the stronger predictor and better measure of RevPAR growth and bottom-line profitability. The correlations and explained variances are also higher than those reported in prior research. Flow-through ratios range between 1.83 and 1.91 for NOIPAR, and between 1.55 and 1.65 for GOPPAR, across all chain-scales. Research limitations/implications – Limitations of this study include the limited number of years in the study period, limited number of hotels in a competitive set, and self-selection of hotels by the researchers. Practical implications – While ADR and occupancy work in combination to drive profitability, the authors' study shows that ADR is the stronger predictor of profitability. Hotel managers can use flow-through ratios to make financial forecasts, or use them as inputs in valuation models, to forecast future profitability. Originality/value – This paper extends prior research on the relationship between top-line measures and bottom-line profitability and serves to inform lodging owners, operators and asset managers about flow-through ratios, and how these ratios impact hotel profitability.

No Joke: Understanding Public Sentiment Toward Selling and Salespeople Through Cartoon Analysis

Unflattering representations of salesmanship in mass media exist in abundance. In order to gauge the depiction of selling in mass media, this article explores the nature and public perceptions of salesmanship using editorial cartoons. A theory of cartooning suggests that editorial cartoons reflect public sentiment toward events and issues and therefore provide a useful way of measuring and tracking such sentiment over time. The criteria of narrative, location, binary struggle, normative transference, and metaphor were used as a framework to analyze 286 cartoons over a 30-year period from 1983 to 2013. The results suggest that while representations of the characteristics and behaviors of salespeople shifted very little across time periods, changes in public perceptions of seller–buyer conflict, the role of the customer, and selling techniques were observed, thus indicating that cartoons are sensitive enough to measure the portrayal of selling.

Proactive Marketing – Concept Development and Empirical Analysis

In this thesis, proactive marketing is suggested to be a broader concept than existing research assumes. Although the concept has been mentioned in the context of competitive advantage in previous research, it has not been comprehensively described. This thesis shows that proactive marketing is more than investing in marketing communications of a company. Proactive marketing is described as a three-phased process that contains different customer value identification, creation, and delivery activities. The purpose of proactive marketing is essentially to anticipate and pursue market opportunities that bring value to the company’s stakeholders. Ultimately, proactive marketing aims at acting first on the market, shaping the markets, and thus reaching competitive advantage. The proactive marketing process is supported by the structures of an organization. Suitable structures for proactive marketing are identified in the thesis based on existing research and through an empirical analysis. Moreover, proactive marketing is related to two management theories: the dynamic capabilities framework and the empowerment of employees. A dynamic environment requires companies that pursue proactive marketing to change continuously. Dynamic capabilities are considered as tools of the management, which enable companies to create suitable conditions for the constant change. Empowerment of employees is a management practice that creates proactive behaviors in individuals. The empirical analysis is conducted in an online company operating in the rapidly changing marketplace of the Internet. Through the empirical analysis, the thesis identifies in practice how proactiveness manifests in the marketing process of a company, how organizational structures facilitate proactive marketing, and how proactive marketing is managed. The theoretical contribution of this thesis consist of defining the proactive marketing concept comprehensively and providing further research suggestions related to proactive marketing.

Selling customer value in B2B markets - Case KONE JumpLift

Skepticism of promised value-added is forcing suppliers to provide tangible evidence of the value they can deliver for the customers in industrial markets. Despite this, quantifying customer benefits is being thought as one of the most difficult part in business-to-business selling. The objective of this research is to identify the desired and perceived customer benefits of KONE JumpLift™ and improve the overall customer value quantification and selling process of the solution. The study was conducted with a qualitative case analysis including 7 interviews with key stakeholders from three different market areas. The market areas were chosen based on where the offering has been utilized and the research was conducted by five telephone and two email interviews. The main desired and perceived benefits include many different values for example economical, functional, symbolic and epistemic value but they vary on studied market areas. The most important result of the research was finding the biggest challenges of selling the offering which are communicating and proving the potential value to the customers. In addition, the sales arguments have different relative importance in studied market areas which create challenges for salespeople to sell the offering effectively. In managerial level this means need for investing into a new sales tool and training the salespeople.

Terminal defect analysis and classification methodology for automotive industry

The impact of end customer quality complaints with direct relationship with automotive components has presented negative trend at European level for the entire automotive industry. Thus, this research proposal is to concentrate efforts on the most important items of Pareto chart and understand the failure type and the mechanism involved, link and impact of the project and parameters on the process, ending it with the development of one of the company’s most desired tool, that hosted this project – European methodology of terminals defects classification, and listing real opportunities for improvement based on measurement and analysis of actual data. Through the development of terminals defects classification methodology, which is considered a valuable asset to the company, all the other companies of the YAZAKI’s group will be able to characterize terminals as brittle or ductile, in order to put in motion, more efficiently, all the other different existing internal procedures for the safeguarding of the components, improving manufacturing efficiency. Based on a brief observation, nothing can be said in absolute sense, concerning the failure causes. Base materials, project, handling during manufacture and storage, as well as the cold work performed by plastic deformation, all play an important role. However, it was expected that this failure has been due to a combination of factors, in detriment of the existence of a single cause. In order to acquire greater knowledge about this problem, unexplored by the company up to the date of commencement of this study, was conducted a thorough review of existing literature on the subject, real production sites were visited and, of course, the actual parts were tested in lab environment. To answer to many of the major issues raised throughout the investigation, were used extensively some theoretical concepts focused on the literature review, with a view to realizing the relationship existing between the different parameters concerned. Should here be stated that finding technical studies on copper and its alloys is really hard, not being given all the desirable information. This investigation has been performed as a YAZAKI Europe Limited Company project and as a Master Thesis for Instituto Superior de Engenharia do Porto, conducted during 9 months between 2012/2013.

Use of business analysis in beef businesses to direct management practice change for climate adaptation outcomes

Beef businesses in northern Australia are facing increased pressure to be productive and profitable with challenges such as climate variability and poor financial performance over the past decade. Declining terms of trade, limited recent gains in on-farm productivity, low profit margins under current management systems and current climatic conditions will leave little capacity for businesses to absorb climate change-induced losses. In order to generate a whole-of-business focus towards management change, the Climate Clever Beef project in the Maranoa-Balonne region of Queensland trialled the use of business analysis with beef producers to improve financial literacy, provide a greater understanding of current business performance and initiate changes to current management practices. Demonstration properties were engaged and a systematic approach was used to assess current business performance, evaluate impacts of management changes on the business and to trial practices and promote successful outcomes to the wider industry. Focus was concentrated on improving financial literacy skills, understanding the business’ key performance indicators and modifying practices to improve both business productivity and profitability. To best achieve the desired outcomes, several extension models were employed: the ‘group facilitation/empowerment model’, the ‘individual consultant/mentor model’ and the ‘technology development model’. Providing producers with a whole-of-business approach and using business analysis in conjunction with on-farm trials and various extension methods proved to be a successful way to encourage producers in the region to adopt new practices into their business, in the areas of greatest impact. The areas targeted for development within businesses generally led to improvements in animal performance and grazing land management further improving the prospects for climate resilience.

Rangeland profitability in the northern Gulf region of Queensland: understanding beef business complexity and the subsequent impact on land resource management and environmental outcomes

The farm-gate value of extensive beef production from the northern Gulf region of Queensland, Australia, is ~$150 million annually. Poor profitability and declining equity are common issues for most beef businesses in the region. The beef industry relies primarily on native pasture systems and studies continue to report a decline in the condition and productivity of important land types in the region. Governments and Natural Resource Management groups are investing significant resources to restore landscape health and productivity. Fundamental community expectations also include broader environmental outcomes such as reducing beef industry greenhouse gas emissions. Whole-of-business analysis results are presented from 18 extensive beef businesses (producers) to highlight the complex social and economic drivers of management decisions that impact on the natural resource and environment. Business analysis activities also focussed on improving enterprise performance. Profitability, herd performance and greenhouse emission benchmarks are documented and discussed.

Using importance-satisfaction analysis in evaluating student satisfaction: a case study of economics and administration Faculty of Qafqaz University

Education is one of the main industries in the world, which needs to focus more than other types of industries. As Mandela said, “Education is the most powerful weapon, which you can use to change the world” (www.brainyquote.com). Global economic recession era put serious pressure on private Higher Education Institutions (HEI), which resulted as decrease in the university spending`s budget. Therefore, HEI forced to develop more competitive ways to find new financial resources for rapid technological and organizational changes (Savsar, 2012). Students are the motive of being of Higher Education. The aim of this study is to implement İmportance-Satisfaction Analysis (IPA) matrix to evaluate the student`s satisfaction and assess importance of different attributes in terms of student`s perception. The students that participated in this study enrolled in the present academic year, 2015/2016, in the Economics and Administration Faculty-Qafqaz University. In order to perform study, survey method applied to collect the data and number of received valid questionnaire were 266. Questionnaire used to collect demographic information of students, identify importance given to each attribute and satisfaction degree of each attribute. Descriptive analysis used to identify profile of respondents, also find satisfaction and importance degree for each attributes. To evaluate differences between groups, built association between variables, find relation between variables and answering to the research hypothesis inferential analysis applied. Moreover, IPA matrix was been used to explore the attributes that needs improvement that perceived as attributes that are more important for the students. The result showed that generally students are satisfied with service quality offered by HEI-on sample of the Qafqaz University. In addition, research found that there are no differences in overall satisfaction and importance by department, gender, academic year and grade point average. IPA matrix highlighted the main attributes, which performs well, namely Academic Services and Teaching aspects, and in another hand needs to concentrate in Undergraduate program and External Relations. In addition, research found that loyalty of students is very low and there is a negative correlation between loyalty and satisfaction.

Comprehensive economic and financial analysis of the enterprise activity: approaches, methods and implementation

This thesis intends to analyse the performance and the efficiency of companies and to identify the key factors that may explain it. A comprehensive analysis based on a set of economic and financial ratios was studied as an instrument which provides information on enterprise performance and its efficiency. It was selected a sample with 15 enterprises: 7 Portuguese and 8 Ukrainian ones, belonging to several industries. Financial and non-financial data was collected for 6 years, during the period of 2009 to 2014. Research questions that guided this work were: Are the enterprises efficient/profitable? What factors influence enterprises’ efficiency/performance? Is there any difference between Ukrainian and Portuguese enterprises’ efficiency/performance, which factors have more influence? Which industrial sector is represented by more efficient/profitable enterprises? The main results showed that in average enterprises were efficient; comparing by states Ukrainian enterprises are more efficient; industries have similar level of efficiency. Among factors that influence ATR positively are fixed and current assets turnover ratios, ROA; negatively influencing are EBITDA margin and liquidity ratio. There is no significant difference between models by country. Concerning profitability, enterprises have low performance level but in comparison of countries Ukrainian enterprises have better profitability in average. Regarding the industry sector, paper industry is the most profitable. Among factors influencing ROA are profit margin, fixed asset turnover ratio, EBITDA margin, Debt to equity ratio and the country. In case of profitability both countries have different models. For Ukrainian enterprises is suggested to pay attention on factors of Short-term debt to total debt, ROA, Interest coverage ratio in order to be more efficient; Profit margin and EBITDA margin to make their performance better. For Portuguese enterprises for improving efficiency the observation and improvement of fixed assets turnover ratio, current assets turnover ratio, Short-term financial debt to total debt, Leverage Ratio, EBITDA margin is suggested; for improving higher profitability track fixed assets turnover ratio, current assets turnover ratio, Debt to equity ratio, Profit margin and Interest coverage ratio is suggested.

Analysis of competitiveness level in an industrial company using a continuous improvement based approach

International audience

ECONOMIC PROFITABILITY OF THE BAKKEN, NORTH DAKOTA UNCONVENTIONAL OIL PLAYS BASED ON A TYPICAL WELL PERFORMANCE WITH CURRENT MARKET CONDITIONS

Increases in oil prices after the economic recession have been surprising for domestic oil production in the United States since the beginning of 2009. Not only did the conventional oil extraction increase, but unconventional oil production and exploration also improved greatly with the favorable economic conditions. This favorable economy encourages companies to invest in new reservoirs and technological developments. Recently, enhanced drilling techniques including hydraulic fracturing and horizontal drilling have been supporting the domestic economy by way of unconventional shale and tight oil from various U.S. locations. One of the main contributors to this oil boom is the unconventional oil production from the North Dakota Bakken field. Horizontal drilling has increased oil production in the Bakken field, but the economic issues of unconventional oil extraction are still debatable due to volatile oil prices, high decline rates of production, a limited production period, high production costs, and lack of transportation. The economic profitability and viability of the unconventional oil play in the North Dakota Bakken was tested with an economic analysis of average Bakken unconventional well features. Scenario analysis demonstrated that a typical North Dakota Bakken unconventional oil well is profitable and viable as shown by three financial metrics; net present value, internal rate of return, and break-even prices.

Communication across cultures? An intercultural approach to customer service in the hotel industry: a study with globally branded hotels in the United Kingdom

In a professional and business-social context such as that of global hotel brands in the United Kingdom, intercultural communication, contacts and relationships are found at the heart of daily operations and of customer service. A large part of the clientele base of hotels in the United Kingdom is formed by individuals who belong to different cultural groups that travel in the country either for leisure or business. At the same time, the global workforce which is recruited in the hotel industry in the United Kingdom is a reality here to stay. Global travelling and labor work mobility are phenomena which have been generated by changes which occur on a socio-economic, cultural and political level due to the phenomenon of globalization. The hotel industry is therefore well acquainted with the essence of different cultures either to be accommodated within hotel premises, as in the case of external customers, or of diversity management where different cultures are recruited in the hotel industry, as in the case of internal customers. This thesis derives from research conducted on eight different global hotel brands in the United Kingdom in particular, with reference to three, four and five star categories. The research aimed to answer the question of how hotels are organized in order to address issues of intercultural communication during customer service and if intercultural barriers arise during the intercultural interaction of hotel staff and global customers. So as to understand how global hotel brands operate the research carried out focused in three main areas relating to each hotel: organizational culture, customer service–customer care and intercultural issues. The study utilized qualitative interviews with hotel management staff and non-management staff from different cultural backgrounds, public space observations between customers and staff during check-in and checkout in the reception area and during dining at the café-bar and restaurant. Thematic analysis was also applied to the official web page of each hotel and to job advertisements to enhance the findings from the interviews and the observations. For the process of analysis of the data interpretive (hermeneutic) phenomenology of Martin Heidegger has been applied. Generally, it was found that hotel staff quite often feel perplexed by how to deal with and how to overcome, for instance, language barriers and religious issues and how to interpret non verbal behaviors or matters on food culture relating to the intercultural aspect of customer service. In addition, it was interesting to find that attention to excellent customer service on the part of hotel staff is a top organizational value and customer care is a priority. Despite that, the participating hotel brands appear to have not yet, realized how intercultural barriers can affect the daily operation of the hotel, the job performance and the psychology of hotel staff. Employees indicated that they were keen to receive diversity training, provided by their organizations, so as to learn about different cultural needs and expand their intercultural skills. The notion of diversity training in global hotel brands is based on the sense that one of the multiple aims of diversity management as a practice and policy in the workplace of hotels is the better understanding of intercultural differences. Therefore global hotel brands can consider diversity training as a practice which will benefit their hotel staff and clientele base at the same time. This can have a distinctive organizational advantage for organizational affairs in the hotel industry, with potential to influence the effectiveness and performance of hotels.

Plan de mejoramiento a la Supply Chain de BCD TRAVEL Colombia

Mediante el acercamiento que se hizo al área corporativa de BCD TRAVEL COLOMBIA y considerando el importante crecimiento actual del Sector Turismo y más precisamente de los viajes con motivo corporativo en el país, surge la necesidad del presente trabajo. Al hacer un análisis interno en la organización y de su entorno, se evidenció que la compañía tiene carencia en procesos y establecimiento de nuevas estrategias que le permitan identificar y potencializar oportunidades en su mercado objetivo y en torno a sus clientes y proveedores, lo cual, puede amenazar y comprometer la estabilidad y prestigio de empresa y así mismo su perdurabilidad. Se elaborará un propuesta de mejora en torno a el área de mercadeo y de logística con el fin de estructurar herramientas que le permitan a la compañía tener un horizonte definido, conocer su posición estratégica en el mercado actual, a donde quiere llegar y que debe hacer para lograr los objetivos establecidos en su unidad de negocio corporativa, la cual representa el mayor porcentaje de ingresos para la compañía. . Se espera que los planes de mejora y estrategias establecidas generen servicios de valor agregado e impacten positivamente a lo largo de la cadena de suministro logrando mayor rentabilidad, competitividad y seguimiento de todos los procesos de esta unidad de negocio.

Customer Loyalty toward grocery retailing service: a multidimensional approach to costumer perceived value

Structured abstract Purpose: To deepen, in grocery retail context, the roles of consumer perceived value and consumer satisfaction, as antecedents’ dimensions of customer loyalty intentions. Design/Methodology/approach: Also employing a short version (12-items) of the original 19-item PERVAL scale of Sweeney & Soutar (2001), a structural equation modeling approach was applied to investigate statistical properties of the indirect influence on loyalty of a reflective second order customer perceived value model. The performance of three alternative estimation methods was compared through bootstrapping techniques. Findings: Results provided i) support for the use of the short form of the PERVAL scale in measuring consumer perceived value; ii) the influence of the four highly correlated independent latent predictors on satisfaction was well summarized by a higher-order reflective specification of consumer perceived value; iii) emotional and functional dimensions were determinants for the relationship with the retailer; iv) parameter’s bias with the three methods of estimation was only significant for bootstrap small sample sizes. Research limitations:/implications: Future research is needed to explore the use of the short form of the PERVAL scale in more homogeneous groups of consumers. Originality/value: Firstly, to indirectly explain customer loyalty mediated by customer satisfaction it was adopted a recent short form of PERVAL scale and a second order reflective conceptualization of value. Secondly, three alternative estimation methods were used and compared through bootstrapping and simulation procedures.

Sustainability analysis in the mining sector: a case study on new recycling technologies for sulphidic mine residues valorisation

Research has demonstrated that mining activities can cause serious impacts on the environment, as well as the surrounding communities, mainly due to the unsafe storage of mine tailings. This research focuses on the sustainability assessment of new technologies for the recovery of metals from mine residues. The assessment consists in the evaluation of the environmental, economic, and social impacts through the Life Cycle based methods: Life Cycle Assessment (LCA), Life Cycle Costing (LCC), and Social Life Cycle Assessment (SLCA). The analyses are performed on the Mondo Minerals bioleaching project, which aim is to recover nickel and cobalt from the Sotkamo and Vuonos mine tailings. The LCA demonstrates that the project contributes to the avoided production of nickel and cobalt concentrates from new resources, hence reducing several environmental impacts. The LCC analysis shows that the company’s main costs are linked to the bioleaching process, caused by electricity consumption and the chemicals used. The SLCA analyses the impacts on three main stakeholder categories: workers, local community, and society. The results demonstrated that a fair salary (or the absence of it) impacts the workers the most, while the local community stakeholder category impacts are related to the access to material resources. The health and safety category is the most impacted category for the society stakeholder. The environmental and economic analyses demonstrate that the recovery of mine tailings may represents a good opportunity for mine companies both to reduce the environmental impacts linked to mine tailings and to increase the profitability. In particular, the project helps reduce the amounts of metals extracted from new resources and demonstrates that the use of the bioleaching technology for the extraction of metals can be economically profitable.