Hospitality purchasing essay

Marketing in Hospitality Assignment Title: The UK hospitality industry is highly competitive where consumers have the opportunity to from a range of outlets during buying process. The UK hospitality is consistently expanding to attract new and retain customers.

Hospitality purchasing essay

It has been argued that "the purchasing function is not strategically important in enabling organisations to gain competitive advantage. This stance has been taken following a thorough literature review and consideration of the statement relative to pertinent models, tools and techniques. Furthermore, it has been considered with a view towards current thinking and debate in the field of strategic purchasing.

The traditional model of purchasing was that of a tactical process - no more than a clerical function. However, purchasing is now seen as a function which plays an important role in achieving the strategic objectives of the organisation for reasons which we will go on to clarify. The work of Porter - specifically his 5 Forces Model of external factors from which a firm's strategy may in part be derived - led to a realisation of the link between some of the key features of this framework and the purchasing function.

Three of these forces - namely, the bargaining power of suppliers, the bargaining power of customers and the threat of new entrants all implicate a linkage with the purchasing role.

In terms of the threat of new entrants, if an organisation does not manage their suppliers well, they may involve themselves in downstream investment - thereby becoming competitors of the firm Mol, Therefore, through the work of Porter and the identification of factors which determine industry profitability, the importance of the purchasing function began to be appreciated.

This realisation led to a growing awareness of the strategic significance of the function in assisting the organisation gain and sustain competitive advantage. The firm's purchasing function can use this model to determine strategy so that it can exploit purchasing power and reduce risk - thereby providing a strategic contribution towards gaining competitive advantage.

Hospitality purchasing essay

It is a holistic approach to purchasing which encompasses consideration of more than just quantitative factors or transactional costs of products and services in establishing what represents value to the organisation. Cousins et al identify TCO as a strategic initiative which has led to firms creating dedicated strategic purchasing departments due to its benefits and contribution towards achieving competitive advantage.

This has come about as a result of a move away from vertical integration towards outsourcing. Part of this movement towards outsourcing has involved a shift from product purchasing to solution purchasing.

This has resulted in the nature of this process being less transactional and more strategic. To a large degree, companies now have access to similar resources. With this comes the realisation that the competitive interface pitches supply chain against supply chain, with purchasing becoming vital due to the impact it can have on a company's bottom line Heinrich, Consequently, it becomes a critical factor in achieving sustainable competitive advantage.

Globalisation is also a factor in the increasingly strategic nature of purchasing. Global purchasing is now seen as a weapon in the pursuit of enhanced profitability and performance by way of technological improvement and price advantage Fagan, It has led to the role of purchasing becoming more strategic due to international competition for resources and raw materials on the one hand and lower labour costs on the other.

Sheth et al, Firms are increasingly looking to suppliers to create added value. They have seen their management of supplier relations bring about cost advantage Taylor, - triggering a greater appreciation of the strategic value of purchasing.

Buyer-supplier relationships have clearly become an integral part of the purchasing function. Their management has assumed greater importance, meaning that reactive relationship management is no longer effective Hallikas et al, Relationships built up with existing suppliers are likely to be strategically relevant due to the part they have the potential to play in the development of capabilities over time.

Present day organisations depend heavily on their supplier network - therefore, supplier sourcing is critical, playing a pivotal role in the achievement of corporate competitive objectives.

Accordingly, the identification, selection and control of suitable sources of supply are of strategic importance for that very reason. In recent times, adoption of Japanese production systems has gone further than simply a focus on supplier relationships.

Managing supplier capability effectively leads to improvements in terms of operational flexibility and a technology based point of advantage Clark, This has contributed to the need for strong supplier relationships as it involves a rationalisation of supplier base - which requires stronger supplier commitment and cooperation Lamming, Dependency on fewer suppliers together with the lean concept of carrying minimal inventory increases supply risk.

This is compounded further due to the move towards globalisation and outsourcing.Visit Hospitality Net for up-to-the-minute hotel industry news, opinion articles, breaking news, hotel openings, appointments, industry events and .

Organisations in hospitality industry like hotel and resorts are paying maximum attention on food and beverage production and operations. Through this assignment several aspects associated with food and beverage department would be discussed from the view point of a food and beverage manager of a five star hotel in Manchester.

Sociology and Hospitality Essay. Hospitality Around the World Providing Care and Kindness to whoever is in Need By Vivian H ospitality refers to the relationship process between a guest and a host, and it also refers to the act or practice of being hospitable, that is, the reception and entertainment of guests, visitors, or strangers, with liberality and goodwill.

In the hospitality industry, purchasing may be defined as ” a function concerned with the search, selection, purchase, receipt, storage, and final use of a commodity in accordance with the catering policy of the establishment”.

(Davis and Kotas, ) Davis and Kotas () suggest that.

Hospitality Net – Europe

Essay Hospitality Management. 1.

Hospitality purchasing essay

Prepare a brief report based on set task number 1. Investigate the range of hospitality businesses in your district. Hospitality management: purchasing and cost control As the assistant food & beverage manager at the Waldorf Astoria Hotel, you have the mandate to instruct your staff on the application of control process in the food service establishment.