Discuss about the Innovation and Entrepreneurship in Hotel Company.
The part A of the assignment discusses the origination of a new hotel business in the industry. In continuation with the task, the part B of the assignment provides a description of how the hotel organization can use innovation and entrepreneurship techniques to survive in the competitive market. Different techniques of innovation can help the organization to achieve competence in the market. Further entrepreneurship in alignment with innovation can help the company in resolving the issue efficiently and managing human resources as well (Tidd, & Bessant, 2015). Thus, the essay gives an overview of the techniques of innovation and entrepreneurship which can help the company to gain benefit by optimizing market share.
Talking about the hotel company which was explained in the part one of the tasks, the hotel industry is a diversified business which includes various aspects on the basis of which growth of a company depends. The hotel company is highly flourished attractive company. As it is the demand of the target market, the company needs to maintain a reputation and goodwill in the market; also it shall provide good hospitality to their clients to make the repetition of sales (Spieth, Schneckenberg,& Ricart, 2014). The hotel company needs to particularly focus on the managerial system of the organization, as it is known to all that if the internal system of the company would have drawbacks than the external factors cannot align with the mission the company that is to satisfy the needs of the customers.
The aim of the assessment is to initiate the use of innovation and entrepreneurship techniques in the working of the organization; so that the hotel company can gain the competitive advantage in the market.
Innovation and entrepreneurship help the companies to creatively carry on their activities and make use of every opportunity available to them. From the past two decades, it has been noticed that innovation is shaping the future of many emerging companies and assisting them to generate competitive advantage in the market. Thus this tool helps the market to develop and gain maximum satisfaction out of the available resources.
Innovation refers to the process of doing things differently with the use of available resources. The terms innovation and entrepreneurship are interlinked with each and they work properly when they are aligned in the same direction. For an entrepreneur, innovation is an important tool which helps them to achieve their objective defined. Opportunities available to the organization will get wasted if they are not used innovatively (Sart, 2014). Thus, it is said that in today’s market a company can only achieve success by implementing innovative techniques in the organization’s activities. Authors namely Hamel & Valikangas (2003), explained the levels of innovation and its implementation in an organization. The levels are explained below:
Revolution: it refers to the process of creating a destructive innovation path, which shall be used by the outsiders. This process changes the fundamentals of the whole industry.
Renewal: it refers to the process of changing the mandatory and already prevailing business model in an organization.
Resilience: it refers to the process of continuously reconstructing the values, process, and behaviors which are implied in an organization (Sahut, & Peris-Ortiz, 2014).
Just like innovation, entrepreneurship is not just a topic which can be defined easily; instead, it is a wider term which requires debatable discussion. Entrepreneurship refers to the process of carrying business activities innovatively and turning the risks into opportunities for the company. The entrepreneurs in an organization use the innovative tools to make an effective change in the organization by utilizing the opportunities and exploiting optimally the resources available to them (Saebi, & Foss, 2015). And all these activities are done with a view to making profit for the organization.
Comparatively, innovation is a broader concept than entrepreneurship. An entrepreneur cannot survive in the market without using innovation. Therefore the entrepreneurship and innovation are interlinked activities. The entrepreneurs in the market use the innovation to create an opportunity for the business which can help the business to grow in the competitive market (Qin, Li,& Yu, 2015). The process of entrepreneurship produces financial benefits for the company by using the innovative technology. The blend of both the techniques helps the company in bringing success for them.
The process of innovation plays a vital role in making the performance of the hotel business strategic and effective. There are many businesses which grew and gained the position in the market with the use of this innovation and entrepreneurship techniques only. In a hotel industry, a customer will always look for aspects which will provide them greater benefits out of the services they are using. So, the organization shall make sure they optimally use the resources so that they can drive maximum benefits to the customer (Soriano, & Huarng, 2013). This process will help them to utilize the maximum resources available to them and create incentives for the company. Talking about the process of entrepreneurship in a hospitality business, it is the duty of the manager to evaluate the market conditions and the preferences of the customers for the services and then work accordingly.
It shall be taken into accounts that the hospitality industry is highly demanded in the by people nowadays, so more and more customers are entering the market. Also the competition I the market is also increasing with a high speed. Resulting to which if the company will not provide differentiated services to the customers then, it will become difficult for them to survive in the market. So, in order to gain the maximum market share of the market the company needs to implement innovation and entrepreneurial practices in their management system (McLuskie, & McLuskie, 2017).
In order to initiate such practices, the entrepreneur shall firstly gain adequate knowledge about the target market considering the taste prevailing in the market. After such analysis, the entrepreneur needs to innovative ideas and implement them in their organization. Such ideas shall include features which can differentiate their product and services from others competitors prevailing in the market. Innovation refers to the process of creating a new idea for the business. And entrepreneurship refers to the process of using such innovations in the business and drive the human resource in the correct direction so that maximum satisfaction is derived by the customers. The main focus of an entrepreneur is to generate maximum profits for the company through risk taking measures (Lee, Hallak, & Sardeshmukh, 2016).
Innovation helps the organization in creating new outcomes for the business whereas entrepreneurship helps the organization in resolving the problems efficiently and motivating the human resource to gain individual as well as organizational profit. So in order to enhance the capabilities of the business, the company shall provide quality and cost effective services to the customers. Along with regular hospitality services, the entrepreneur shall ensure that the internal management of the system work efficient and it optimally uses all the available resources as well. Activities like tourism, traveling, food etc. are some of the services which are connected with the hotel company, so in order to create a position in the market; the company shall focus on providing such services which are not provided by other competitors (Henkel, Schöberl, & Alexy, 2014). This will build goodwill of the company in the eyes of the customers and also drive them to enjoy the services of the company repeatedly.
It refers to the type of innovative activities which the business precedes so that highest position is created by the company in the market. In disruptive innovation a new product is created and placed in a new target market. The product or services are designed innovatively so that they stand differently in the eyes of the customers (Drucker, 2014). As the hotel company is a new and emerging company so it shall make use of disruptive innovation technique in the market. With this effect, the customer will get attracted towards the company due to which the sales will increase. The entrepreneur shall make sure that the disruptive innovation activities are properly implemented in the market otherwise the company can face failure (Fraj, Matute, & Melero, 2015).
Open innovation refers to the process of innovation which includes all people connected with the company to work together to gain benefit. Not only the smart people are required but all people shall come together and perform the business functions. The company can also use this type of innovation as they already have an entrepreneur who is creative enough to lead the company. So with the guidance of a creative leader and a team manager, the company can grace the market (Drucker, 2014).
Conclusion
Thus in the limelight of above events, it shall be noted that the hotel management company is a new company need to do effective entrepreneurial activities in order to gain market capitalization. Along with entrepreneurship activities, the management also needs to innovatively carry on their business functions to gain success. So, it shall be concluded that it is important for an entrepreneur to initiate innovation and entrepreneurship in the activities of the business, so that maximum benefit can be achieved.
References
Drucker, P. (2014). Innovation and entrepreneurship. Routledge.
Fraj, E., Matute, J., & Melero, I. (2015). Environmental strategies and organizational competitiveness in the hotel industry: The role of learning and innovation as determinants of environmental success. Tourism Management, 46, 30-42.
Henkel, J., Schöberl, S., & Alexy, O. (2014). The emergence of openness: How and why firms adopt selective revealing in open innovation. Research Policy, 43(5), 879-890.
Lee, C., Hallak, R., & Sardeshmukh, S. R. (2016). Innovation, entrepreneurship, and restaurant performance: a higher-order structural model. Tourism Management, 53, 215-228.
McLuskie, P., & McLuskie, P. (2017). Innovation and Entrepreneurship. International Journal of Entrepreneurial Behavior & Research, 23(1), 159-162.
Qin, Y., Li, B., & Yu, L. (2015). Management innovations in a Chinese hotel company: the case of 7 Days Inn. International Journal of Contemporary Hospitality Management, 27(8), 1856-1880.
Saebi, T., & Foss, N. J. (2015). Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions. European Management Journal, 33(3), 201-213.
Sahut, J. M., & Peris-Ortiz, M. (2014). Small business, innovation, and entrepreneurship. Small Business Economics, 42(4), 663-668.
Sart, G. (2014). The new leadership model of university management for innovation and entrepreneurship. Eurasian Journal of Educational Research, (57).
Soriano, D. R., & Huarng, K. H. (2013). Innovation and entrepreneurship in knowledge industries. Journal of Business Research, 66(10), 1964-1969.
Spieth, P., Schneckenberg, D., & Ricart, J. E. (2014). Business model innovation–state of the art and future challenges for the field. R&D Management, 44(3), 237-247.
Tidd, J., & Bessant, J. (2015). Innovation and entrepreneurship (No. 3). Wiley.
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