Research Korner: Problem Statement

Development of the Hotel Industry in Taiwan

Chapter 2 Review of Related Literature 2.1 Development of the Hotel Industry in Taiwan             The service industry has greatly contributed to the economic growth of Taiwan. Basically, Clark, H. (2001) stated that the hospitality and tourism industry is expected to continue growing within the succeeding years. Actually, the success of the industry is partly attributed to the external factors providing an environment suitable for business such as the political and economic stability of the market and tourism efforts of the government to encourage and draw visitors from other countries and partly from the management and business practices developed and maintained by the individual businesses conducive to customer satisfaction and customer loyalty.             The vibrant hospitality industry developed after passing through an industry cycle due to both external and internal factors affecting the number of tourists whose needs the industry meets. The hotel industry in Taiwan is delineated into international and domestic hotels based on business ownership and domestic hotels are also subdivided into domestic company owned hotels and family owned hotels depending on the scale of operation and ownership of the hotel (Dennis et. al, 2003). These hotels differ in a variety of ways according to the manner that they utilize their available and created resources and business strategies to actualize their business goals.             Despite the differences in the scale of operation, organizational structure and business strategies of international and domestic hotels, the common objective is to utilize and maximize their resources to achieve a high brand equity founded upon efficient and excellent quality of service that results to customer satisfaction and eventually to customer loyalty.  According to Nguyen and Leblanc, (2001), international and domestic hotels build a strong industry through their ability to cater to the diverse needs of customers in terms of price, customer relationship, accommodation arrangements, and other diverse hospitality needs of customers. Although there is competition among international hotels, international and domestic hotels, and among domestic hotels it cannot be denied that these hotels provide distinct hospitality services giving customers options for their service preferences.             As discussed, the Taiwan hospitality industry developed after experiencing a business cycle with its initial high during the implementation of the Six-Year National Development Plan applicable for the years 1991 to 1996, but becomes low with the outbreak of severe acute respiratory syndrome in 2003, and a rise again in the performance of the hospitality industry at present (Global Hospitality News Archive, 2003).             During the initial high of the hospitality industry in the mid 90s, the Tourism Bureau of Taiwan reported that building the hospitality industry requires leadership on the part of the government and the leading hotels within the industry to provide both administration and guidance to direct the industry towards growth; comprehensive and holistic facilities planning for the industry; and sufficient goal-oriented training for the employees of the hospitality industry (Chen, 1996).  The result of the Six-Year National Development Plan is the increase in the gross domestic product of the country by 1.1 percent for the period 1990 to 1994 (Bailey, 1996) and .7 percent in 1997 (Hsieh, 1998). The economic growth spurred the development of the hospitality and tourism industry in Taiwan. The 1997 Annual Report on Tourism showed that the composition of the visitors to Taiwan were mostly from other Asian countries who were also experiencing growth. Close to 76 percent of the tourists in Taiwan were Asians with the remaining percentage from North America, Europe and other regions. Apart from international tourism, the economic growth that Taiwan experienced also proved helpful to the hospitality industry by encouraging domestic tourism (Wise, 1993). In 1996, the average number of trips within Taiwan was 2.99 increasing to 3.2 in 1997 as a result of economic growth and the policy of declaring public holidays (Hsieh, 1998). Economic growth translates to income for households and the empowerment to spend not only on their needs but also for leisure activities such as travel. The five-day workweek implemented in 1998 limited the time available for international travels resulting to the consumption of domestic hospitality and tourism industry services. The Tourism Bureau is strengthening international tourism through innovative leisure resorts and tourism packages. The visitor expenditure of foreign tourists amounted to 3.4 billion in 1997 with a US $193.56 average daily spending for every visitor. The cost of hotel accommodations amounted to around 50 percent of the daily spending. (Lu, 1999) The bureau also sought to create an environment conducive to the hospitality business by releasing a promotional brochure in different languages, using the internet as a marketing strategy, and participating in organizations for international tourism cooperation such as the East Asia Travel Association, American Society of Travel Agents and the Asia Pacific Economic Cooperation. The industry expects to gain external support through government efforts to help the industry grow. In 2003, the industry experienced a rapid decrease in the occupancy rates because of the outbreak of the severe acute respiratory syndrome or SARS in the region.  In the May 2003 new report of the China Post, around 84 percent of hotels in Taiwan had a lower than 30 percent occupancy rate and 96 percent of the hotels in Taiwan incurred losses. In the survey made by Pan Asia Human Resource Corporation, 79 percent of the 2,452 hotels questioned viewed the effect of the SARS outbreak as very severe. The quarantine measure implemented in the Ho Ping Hospital resulted to the deterioration of 79.01 percent of hotels represented by 50 to 60 percent drop in occupancy rates resulting to losses. In an effort to prevent further losses, many of the hotels requested some of their employees to take unpaid leaves or take their annual leave, implemented salary cuts, and suspended the payment of salaries until business performance improves. The owners of firms have asked the government for a bailout plan. (Global Hospitality News Archive, 2003)             In just a few months, the industry development that the government and business owners sought to achieve was brought down by the SARS epidemic. Between April and May, all hotels tried to alleviate their losses by offering large discounts up to 70 percent of the original price in an effort to maintain the operations of the industry. Inter-industry collaborations were also in place such as the offer of a package that includes hotel accommodations as well as air fare for a discounted price. (Dennis et. al, 2003)             The government held an emergency meeting to develop a plan to help the hospitality and tourism industry. A plan to rescue the ailing airline transportation sector was implemented through the reduction of the fees for local airlines at the expense of government revenue. Tax cuts and exemptions were also planned for the other sub-sectors of the tourism industry. The legislature also approved the proposal preventing the local banks from not approving loans needed by the businesses within the tourism industry for short-term financing. (Dennis et. al, 2003)             In 2004, the SARS outbreak has been controlled leaving behind bankruptcies for the hotels and other businesses unable to cope up with the economic cost of the epidemic. By the end of 2004, the hospitality industry in Taiwan is still in the verge of development but fairing well because of the growth in economy with the vibrancy in the different industries after the arrest of the SARS epidemic.             At the end of 2005, the November 12 issues of Asia Times reported that the tourism industry in mainland China, Taiwan and Hong Kong continue to grow as observed through the rampancy of hotel construction in the different business and tourism centers of the country. The rate of arrival of international visitors increased by 16 percent as a result of the increase in occupancy in the hotel industry. The growing hotel industry in Vietnam is expected to grow with China hosting several international events such as the 2005 Miss World and the upcoming 2008 Olympics. With a favorable business environment, the competition is expected to heat up requiring the management of the different hotels to develop and establish management and operations strategies to draw customers and achieve customer satisfaction and loyalty.               2.2 Building Brand Image             International and domestic hotels will be able to keep up with the demands of a growing market for the industry by making the industry service-based instead of price-based. International and domestic hotels set their respective prices based on service and not on price alone. The key component to brand management is the implementation of an integrated approach where companies are able to say what they can offer relative to their competition, do what they offer and promise to customers and confirm it through consistent practice. The value of saying, doing and confirming should be internalized in the company culture. (Cai and Hobson, 2004)             Building brand image to achieve competitive advantage in the hotel industry requires management to treat the service as experience goods (Nguyen and Leblanc, 2001).  In treating hospitality service as experience goods, establishments focus on providing a pleasant experience for customers to create the image that the hotel wants to portray to the market. However, the image is only established once the hotel is able to consistently do what it says to the satisfaction of the different needs of customers. Management will then direct all efforts of the company towards the creation of a company culture that provides a satisfactory service that meets the experience requirements of customers and eventually to achieve customer loyalty. It is after the achievement of a good brand image that the hotel can justify its price. The brand image justifies price and not the other way around.             Brand image is one of the factors that hotels should consider if they plan to achieve consumer-based brand equity. Brand image affects the development of a customer base of the hotel and the consequent improvement in financial performance (Kim, Kim & An, 2003). The development of a brand image should be based on the customer’s viewpoint. This means that a hotel should initially have updated information on the current trends in market demand before the company can formulate a plan to develop its brand image through customer satisfaction. The practice of providing total customer satisfaction was developed within the industry from knowing that customers require a hotel service that integrates accessibility and delivery of material needs with service.             Brand image is dependent upon the feelings that consumers and other establishments have about the organization in relation to the evaluation of other competing brands. Marketing activities, such as advertising and promotions, falls under the general image of the organization. Once the organization has built its brand image, it should maintain this image because a negative change in the way that the brand name is regarded reflects on a decrease in customers and consequently of revenue. It takes twice as hard to rebuild a good brand image rather than initially building it. There are different management areas that the business should focus on in developing a good brand image. The people tasked to build brand image should think of two things in planning a strategy. These things are first is to sell the service of the organization as a short-term goal and second is to build image in the long run. During the process of promoting the brand name, the company should apply integrated marketing communications to ensure the efficient introduction of the quality of service that the organization stands for. Image is related to the strengths and weaknesses of the organization. The company should integrate all available resources and recognize opportunities such as combining a strong image with an external opportunity to create a strategic advantage. A comprehensive analysis of the image of the organization and its strengths and weaknesses should be integrated to solidify the connection with customers. The brand image should consider the different consumer behavior to be able to introduce a consistent message with the target market. To be able to effectively communicate the brand image to the public, it is important that within the organization the message and the brand image are clearly defined. The image should identify the values or principles of the organization and the extent that the organization has established its position. The purpose of communicating brand image is to instill a consistent and stable impression among customers. The general impression that hotels should develop is quality of service in terms of amenities, personnel and meeting the particular needs of customers for the market to develop an impression of the organization. The significant perception is that of the consumers rather than the view of the managers about the organization. Brand image is consumer-based because their perception about the organization determines their propensity to make decisions in choosing a particular hotel and in enlisting again the services of the hotel in the future. Brand image in the hotel industry has different components, which are tangible and intangible. The tangible components include the services offered by the organization; the different hotel branches in terms of location and accessibility; the marketing communications strategy of the organization; the name and logo of the organization representing the brand image; and the employees of the organization who are the forerunners of brand image. The intangible components include the operational and human resource policies of the organization; the organizational culture determining the beliefs and practices of company personnel; the external environment and location of the company such as the accepted personal and business practices of the particular country where the organization operates; and the publicity that the organization gets especially from the media. Brand image plays an important role in the perspective of the consumer. The brand image gives an assurance to the customer that the decision to obtain the services of the chosen organization in unfamiliar settings is worth it. Brand image also assures the customer of quality service when the latter has no previous experience of the organization. The image perceived of the organization also lessens the time spent looking for accommodations when the image meets the experience needs of the customer. The brand image also determines the nature and extent of connection that the customer develops with the organization based on the perceived openness of the organization.                          Brand image also plays an important role from the point of view of the organization. A good brand image ushers the acceptability of change and developments within the organization such as the introduction of new services and the putting up of new branches in different locations. The brand image determines the ability of the organization to determine the price of its services. A consistent brand image and consistently meeting the needs of customers results to the return of customers and positive endorsements through word-of-mouth. The brand image not only attracts customers but also qualified employees willing to work to maintain the brand image. A good brand image attracts favorable reviews from industry experts. 2.3 Delivering Quality Service             Competitive advantage is achieved by many organizations through their offer of superior service quality (Schmenner, 1995), which is a harder thing to do than offering product quality because there are a lot of service factors that are intangible and cannot be completely controlled such as the decisions and actions of employees and the result of the interaction between employees and different customers. Moreover, the customer judgment on the quality of service is based on the perceptions of the service recipient’s perceptions and expectations causing a difficulty in identifying and correcting service failures. (Hays and Hill, 2000).             Achieving service quality requires the organization to focus on building and transmitting the importance of service quality to the members of the organization. The efforts and contributions of management and personnel should be directed towards a clear vision of delivery of superior service quality. Employees should be motivated to provide quality service in all aspects of the operations of a service organization such as hotels. Outstanding service organizations have strong vision, initially market their offered service internally, evaluate service and publish results. (Albrecht and Zemke, 1985) There are two factors that affect perceived service quality, which are employee motivation and vision and organizational learning (Hays and Hill, 2000).             Quality is a significant predictor not only of profitability but also of the respective market share of organizations in the market (Buzzell and Gale, 1987).  The primary actors involved in ensuring quality are the personnel of the organization. The attributes of the personnel of the organization directed towards the achievement of quality plays an important role in consequently achieving customer satisfaction. The attributes emphasized in the field of service are commitment (Farber and Wycoff, 1991), organizational culture (Collier, 1994), and service delivery environment (Schneider, 1980). Employee attributes in the achievement of quality service is significant because service quality starts with people (Hostage, 1975).             The qualities of empathy, courtesy and responsiveness of employees in service delivery when combined in the interaction of personnel and customer influence the perceptions of customers on quality. Service personnel plays a significant role in service delivery that they are perceived to be an integral part of the service. Service employees not only create service but they also form part of service delivery (Czepiel et. al, 1985). This highlights the importance of motivating employees to become conscious of improving their performance and maintaining a standard quality of service based on organizational goals.           Developing a standard quality of service of the organization requires the determination of the goals of the company and the process of learning and improvement until such that the organization is able to establish a service quality that substantiates its brand image. Learning can be done in two ways, which are learning from employees and learning from customers. The organization should implement both an internal and external approach to learning (Marquardt and Reynolds, 1994). The rate that organizations learn constitutes a competitive advantage for the organization (Senge, 1990).              The organization should consider feedback from the employees in evaluating the effectiveness of a service because it is the personnel who directly observe the reaction and hear the complaints and praises of customers. Organization should also consider the views of customers by integrating a feedback system in service delivery. On the part of employees, the regular meetings and evaluations may be considered as the venue for collating employee experiences and comments on the service delivered and the system of delivery. On the part of customers, quality control is a system of getting the feedback of customers (Argyris and Schon, 1978). The hotel can establish a customer service booth or provide a form or a telephone number where their complaints can be voiced and addressed. The organization should use the records of complaints to assess and investigate the validity of claims, determine areas requiring change and device the most effective manner of making the change within a reasonable span of time.             In the delivery of quality service requires both internal and external consideration.  Internal consideration involves the creation of an organizational vision, the motivation of employees towards the realization of the visions and the establishment of a system for evaluating performance to facilitate learning. External consideration refers to information on the service expectations of customers, the integration of these expectations in the goals of the organization, and the establishment of a feedback system to solicit the participation of customers in evaluating the quality of service of the organization and enhancing organizational learning. Offering quality service to substantiate the brand image of the organization is primarily used to achieve customer satisfaction and eventually customer loyalty. 2.4 Achieving Customer Satisfaction             Customer satisfaction is what sustains the operations of the organization because an unsatisfied customer will not do business with the organization again and dissatisfaction may also dampen potential referrals to the friends and business associates of the unsatisfied customer. Even if the organization implement the newest technology in building the hotel and designing individual  rooms, offer the most expensive items for the use of customers, and train their personnel but if these do not meet the particular needs of customers, then satisfaction is not attained. The measurement of customer satisfaction is through the perception of customers and their propensity to engage the service again.             There is a direct connection between service, satisfaction, sales and profit (Gerson, 1993). However, these cannot be achieved without the imposition of measurements for performance. Measuring the customer satisfaction is important because everything that the organization measures are completed, improved and mastered. Having a measure of customer satisfaction also provides a detailed learning of the factors considered by customers as crucial to their satisfaction that will form the basis for identifying areas for improvement and the efficient change management. Every aspect of customer satisfaction should be centered on the customer.             The definition of customer satisfaction is based on the service that the customer expects to receive to become satisfied. A customer is satisfied whenever an expectation, whether real or perceived, is met or superseded (Gerson, 1993).  It is important for the organization to know the expectations of the customer and to know this the organization should ask the customer. This is the reason why in all service organizations, the personnel always ask for the preference of the customer. Starting from the reservation of hotel accommodations, the customer is asked about his or her preferences from the type of rooms, the amenities that comes with the room and other special arrangements. During the receiving and stay of the customer, there may be particular requests that the service personnel have to meet. An organization is able to provide satisfactory service by knowing the preferences of customer and anticipating the possible requests that customers may make.             For the organization to measure the value of customer satisfaction, the company must first measure the cost of delivering a poor service. There are several measures for determining the cost to the organization of poor service. First is lost customer revenue, which refers to the money that the organization will loose because of the loss of customer to a competitor because of poor service. Second is lost opportunity revenue that is the loss of money because of the decrease in the revenue that could have been achieved when the customer engages the services of the organization again and when the satisfied customer refers the service organization to friends and business associates. Third is customer replacement cost, which refers to the expenses that the organization will incur in looking for new customers. If the organization full comprehends the implications of these losses, then the company will start to recognize the role of customer satisfaction and profit.  (Gerson, 1993)             In the hospitality industry, customer satisfaction is based on the expected ultimate hotel experience of the customer (Sigala and Leslie, 2005). People no longer engage the services of hotels for board and lodging but customers seek a hotel experience that includes the amenities of the hotel, the services offered, the attitude of personnel, the completeness of service, and the manner that the organization values its customers. Although price still remains to be the consideration of customers, there are customers who are willing to pay a higher price for hotels with an excellent brand image but they also expect top service in return.              A hotel experience becomes measurable in terms of revenue when it is deemed a memorable. The organization increases the value of its services by including memorable experiences to service delivery. This is because the decisions of customers to consume and choosing a particular hotel are determined by hedonistic and psychological aspects (Gretzel and Fesenmaier, 2003). The ultimate hotel experience is that which satisfies the hedonistic expectations of customers. The experience creates a connection between the organization and its brand image and the lifestyle of the customer in the context of the intentions of both parties. There are physical and psychological considerations in achieving the ultimate hotel experience, which are the physical components of the service such as amenities and comforts and the psychological components such as the ambiance of the hotel, attitude of personnel and the drive to fulfill the emotions that people want to feel in a hotel. 2.5 Achieving Customer Loyalty             A loyal customer is a client that engages the hospitality services of a hotel every time an opportunity arises. Customer loyalty refers to the fidelity that a customer has for a particular organization as a result of a consistent experience of satisfaction from the services of the particular hotel. (Bowen and Shoemaker, 1998). Mutual trust develops based on the expectation on the part of the customer that the hotel will consistently meet the needs of the customer and on the part of the organization that the customer will patronize its services.              Achieving customer loyalty and retention involves the implementation of plans that prevent customers from changing their hotel preference. There are three considerations in preventing customers from changing their preference. First is the context of the engagement of the services of the organization. The needs and requirements of customers change depending upon the change in their circumstances and it is important that a hotel can accommodate the expectations of customers despite the changes in the context of the service engagement. The quality of service should still be consistent despite the fact that the customer previously visited the hotel on business and returns for leisure. Second is the control that the organization has on the marketing mix to efficiently maximize resources to provide a pleasurable experience to the satisfaction of customers. Price, location, promotions and services are the different aspects of hotel operations that the organization can control. Management should ensure that the operation of the hotel is synchronized in the direction of achieving customer loyalty.  Third is the consideration of the customer in terms of the background and the demographics of the customer. The background of the customer determines the service expectations of the customer, the fulfillment of which determines the propensity of the customer to return to the hotel in the future. Hotels should customize their services to accommodate cultural differences. There are cultures that require separate accommodations for men and women or the particular preparation of food. These aspects should be known and considered by the organization in providing service to international customers. (Morgan and Dev, 1994)                Service considerations include the physical and psychological aspects. The physical aspects include the accessible lay out of the rooms, elevators and stairs, bathrooms, foyers, restaurants and bars, and other significant aspects that contribute to the achievement of loyalty. The technical aspects of functionality also includes cleanliness and orderly placement of furniture in the room, the size and comfort of the bed, wall paper and decorations, quality of bathroom, facilities of the room. The functional aspects of the service include the style of service delivery, the presence of a customer service area, cleaning service and food delivery service. The psychological aspects of service delivery are the friendliness of the service personnel, speed of service, the attitude of employees towards customers, the ambiance of the hotel and the overall service reputation of the establishment. (Lewis and Pizam, 1981)             Price is a factor that contributes to customer loyalty. Pricing a hotel service is difficult because of the intangibility of the thing being valued (Dearden, 1978) Price that the organizations impose for their services primarily depends upon their official rating. A five star hotel has a higher price than a two star hotel. Generally price setting is cost-based. However, there are instances where price can be used as a competitive advantage for some sectors of the market. Whether the pricing system is cost or competition based or both, the organization should consider their target customers and decide based on the pricing that would effectively draw customers and maintain their loyalty. Price is also based on a good brand image that contributes to the motivation for customer loyalty.                          The location of the hotel is another factor that contributes to customer loyalty. Hotel location is a significant consideration depending on whether the customer is traveling for business or leisure purposes. A customer engaging the services of a hotel because of a business engagement in the area looks for a hotel that provides all his or her services especially the proximity to the venue of the business engagement. Businessmen travel with considerations for time and they would not ordinarily engage then services of a hotel that is far from the business areas. Leisure customers on the other hand consider the proximity of the hotel to the tourist locations and leisure activities that they want to experience. Location also matters to customers who are passing by the place and merely looking for transient accommodations. The smaller, more homely hotels located near major routes are usually the choice of accommodation for travelers and the small budget groups. (Hall, 1999)              Promotion is the other factor that contributes to customer satisfaction. Promotions in the hotel industry are classified into loyalty strategies, branding and relationship marketing. The common loyalty strategy is the issuance of loyalty cards that represents perks for frequent customers. This may work for some and not for others but if it works then the company expects to gain profit. Retaining 5 percent of customers will increase profit by 100 percent (Reichheld and Sasser, 1990). This is an excellent incentive for organizations to find a promotional program that efficiently retains at least 5 percent of customers for it to gain profit.

Development of the Hotel Industry in Taiwan

Chapter 2 Review of Related Literature 2.1 Development of the Hotel Industry in Taiwan The service ind...

MORTGAGE LAW: TRACING

a) “Tracing is … neither a claim nor a remedy.  It is merely the process by which a claimant demonstrates what has happened to his property, identifies its proceeds and the persons who have handled or received them, and justifies his claim that the proceeds can properly be regarded as representing his property.  Tracing is also distinct from claiming.  It identifies the traceable proceeds of the claimant’s property.  It enables the claimant to substitute the traceable proceeds for the original asset as the subject matter of his claim…The successful completion of a tracing exercise may be preliminary to a personal claim or a proprietary one, to the enforcement of a legal right or an equitable one.”  Discuss.  (Lord Millett in Foskett v McKeown [2000] 3 All ER 97).     According to Smith (1997), tracing pertains to the process that allows the transmission of a claim upon the original asset to a new asset. The core idea of tracing is the necessity of one asset standing in place for another asset for legal purposes. As a result, the claims that should have been made relative to the specified original asset are permitted to be transmitted to a new asset.    The plaintiff exercises tracing by locating the asset to pursue pre-existing rights towards the thing. The plaintiff is allowed to make a claim over the new asset relative to subsequent possessors because the latter has interfered with the original rights of the plaintiff. In attempting to trace an asset, the plaintiff is in effect asserting that a new asset was obtained using the original asset. The plaintiff seeks to establish the relationship of the original asset over which a claim was previously made and the new asset to which the claim is aimed to be transmitted. (Smith, 1997)         The situation is exemplified by a defendant exchanging an asset, upon which a plaintiff has a claim for another asset. The plaintiff is able to assert a claim over the new asset through tracing. Tracing provides the crucial relationship between the plaintiff and the new asset by proving that the new asset was obtained with the original asset. Tracing substantiates the claims of the plaintiff over the new asset. This is because the exchange of assets implies that the defendant acquired the value attached to the new asset commensurate to the value of the old asset. What the plaintiff targets is the establishment of the fact that the value attached to the original asset is the same value of what is now attached to the new asset because the old asset was exchanged for the new asset changing the object representing the value but retaining the value per se. According to Smith (1997) what is being traced is value because it is the constant factor that exists before the exchange of assets and after the substitution of assets. Although, value is represented by a different object through the new asset it is still the same value attached to the old asset. This rationale justifies the claim over the new asset. Thus, tracing involves value and not property.   Prior to tracing, it is imperative that the plaintiff has a thing of value. The plaintiff must hold an asset exclusive to other people. The right is not necessarily proprietary in nature and it can refer to either a legal or an equitable right (Agip (Africa) Ltd v. Jackson, 1991; Lipkin Gorman v. Karpnale Ltd, 1991). This is an important prerequisite because it is the right that fuels the tracing of value.   Tracing was applied in Westdeutsche Landesbank Girozentrale v Islington London Borough Council (1996) where the court held that “when property is obtained by fraud, equity imposes a constructive trust on the fraudulent recipient: the property is recoverable and traceable in equity”. The case allows tracing to support claims of fraud in the acquisition of property. In Commerzbank AG v IMB Morgan plc (2004), the proceedings involved different claimants to the money in a single account with the petitioner bank. Tracing was made to determine which claims are supported by the process of tracing value since there are various claimants with conflicting claims.   Tracing is a distinct concept of claim because it is the process of tracing that justifies a claim. Claim is the assertion of a right as supported by the process of tracing. Thus, the process of claiming is also different from the process of tracing. Claiming is a process involving the determination of the issue on the right that the claimant is able to establish. It is only after the right has been established that the process of tracing becomes useful in enforcing the right.   Tracing is not also a remedy because the process does not constitute a legal or judicial manner through which a right is enforced or the violation of the right is prevented or redressed. Tracing is the process of supporting a claim and not establishing a right because the establishment of a right precedes tracing. Tracing makes way for the enforcement of a right.   b) Robert is a trustee of two separate family trust funds, the Childrens’ fund and the Grandchildrens’ fund. In September 2005, Robert’s personal account at his bank is £5,000 in credit. In October 2005, he withdrew £10,000 from the Childrens’ fund and paid it into his own account. In November 2005, he withdrew £15,000 from the Grandchildrens’ fund and paid it into his own account. In December 2005, he withdrew £25,000 from his own account and invested it in Premium Bonds, having seen the television advertisement. In February 2006, he won £50,000 on the Premium Bonds and paid it into his account. In March, he withdrew £50,000 and invested it in further Premium bonds. Robert has recently had judgment given against him in a libel action and as a result, he has now been adjudicated bankrupt.  New trustees have been appointed to both funds. Advise the trustees of both funds as to their respective positions concerning the recovery of the misappropriated trust funds.                 According to Commerzbank AG v IMB Morgan plc (2004), establishing a claim in order to share in a trust fund requires proof of proprietary right to the trust fund. The claimants have three possible bases for enforcing their rights. First basis is tracing by connecting the transfer of assets from the original source to another source, which in this case is tracing the withdrawal of money from the two trust funds and the subsequent deposit to the personal account of the trustee who is also the defendant. The rationale for doing so is to establish a claim over the new account because equity considers the money in the personal account as charged with repaying the money withdrawn from the trust funds (El Ajou v. Dollar Land Holdings plc (No. 1), 1993; Bristol and West Building Society v. Mothew, 1998; Bankers Trust Co. v. Shapira, 1980) regardless of the mixing of the money from the trust fund and the personal fund of the trustee.                Second basis is tracing to prove mistake in payment (Commerzbank AG v IMB Morgan plc, 2004). In cases where there is an identifiable trust fund, where the trustee could have deposited money in payment of the amount withdrawn after receiving the amount invested in premium bonds together with the money gained from the endeavour, the recipient does not have the right to retain the benefit of the money received especially since the trustee is presumed to have cognizance of the claims of the subjects of the trust funds (Papamichael v. National Westminster Bank plc, 2003). The claimants of the trust funds from which money was withdrawn establish their right to the reimbursement of the misappropriated trust fund by supporting their claims with tracing. The claimants may trace the flow of money from the trust funds to the personal account of the trustee to the purchase of premium bonds using the money and the receipt of the money and gains until the aggregate amount was reinvested again into premium bonds. Tracing is important to show that the value lost by claimants due to the withdrawal of the money is the same value attached to the premium bonds and the gains.               Third basis is tracing to support the payment of money for a particular purpose that was not fulfilled (Commerzbank AG v IMB Morgan plc, 2004) so that the trustee, who holds the money is deemed to do so in trust for the subjects of the trust funds (Barclays Bank Ltd v. Quistclose Investments Ltd,1970; Carreras Rothmans Ltd v. Freeman Matthews Treasure Ltd, 1985). This allows the action of the claimants to trace the transmission of value they rightly hold from the withdrawal of funds until the reinvestment of the money in premium bonds. The claimants need tracing in order to support their claims against the funds, held by the trustee, which is now being applied to the court order in favour of the petitioner in a libel suit to which the trustee is the defendant.                  These bases are congruent to the possible defences of the defendant. In relation to the first basis, the defendant may claim that the money withdrawn from his personal account and invested in premium bonds constitutes his personal funds. The claimants may support their claim of fund misappropriation by showing that the tracing of value shows that the amount withdrawn by the trustee is the same amounts deposited in his personal account. The defendant may also claim that there was a mistake of payment when instead of depositing the money back to the account, the whole amount after the monetization of the bonds were deposited to his personal account. The claimants support their claim for misappropriation of funds by tracing value from the trust fund withdrawals to the investment and reinvestment of the money in bonds without reimbursing the trust funds. On the third basis, the trustee may claim that the withdrawals were made to invest the money in behalf of the subjects of the trust. The claimants may support their claim of misappropriation of funds as supported by tracing value from withdrawal to the purchase of bonds and corresponding investment of the funds. The claimants have the right to claim misappropriation of funds as supported by tracing. Overall, tracing will help the claimants establish their claims for breach of trust and the reimbursement of the misappropriated funds relative to the plaintiff in the libel case and other claimants to the assets of the trustee.

MORTGAGE LAW: TRACING

a) “Tracing is … neither a claim nor a remedy. It is merely the process by which a claimant demonstrates what has happened to his proper...

The Case of China Kelon Group

Problem Statement             The issue in the case of China Kelon Group is whether they should push through their attempts to diversify their economy.    Situation Analysis             According to the case, the fundamental target of the company is the households in China. The case also indicated that there is a growth of the middle class in the country thus creating the demand for their products. The company is faced by competition from other appliance firms such as Matsushita, Sharp, Hitachi, Toshiba, Sanyo, Mitsubishi, Electrolux, Siemens, and Whirlpool. Despite the number of prospective competitors, the case has indicated that local brands still dominate the industry. In addition to this, the company is deeply ingrained in as the foremost refrigerator making brand in China. After acquiring several awards from state, provincial, and international organizations, there is no doubt on the capacity of the company to provide high quality of products and services. Similarly, to maintain this standard of high quality, the company is constantly in coordination with foreign corporations.       Alternatives             There were two other alternatives with regards to the recommendation of the proper course of action for Kelon. These include vertical integration of the firm, and geographical diversification. In the first one, it wasn’t chosen because this entails maintaining the status quo for the company. The other alternative, geographical diversification would not be probably practical for the company since China has already possesses a large market and the company has yet to realize its full potential. Recommendation             The recommendation is to engage in a horizontal diversification plan. The company has long been in the refrigerator industry and has established a name for its brand. It is high time that they move into a new industry. Although there is a great risk in entering into unfamiliar territory, the company still has a wide base from its refrigerator customers which is basically the same target market as that of the air conditioning industry. What they have to carry out is the manner in  this target market to purchase their products, given that they are a new entrant in the air-conditioning scene.    Implementation Plan As a new entrant on the air-conditioning industry, the company must be able to discern how much power it possesses. This is where the company should look into the possibility of existing national competitors of cutting down their price if they are to defend their market position. Moreover, the company should also look into national regulations regarding new entrants in the national market, particularly those which directly affects the products of the company. The company must conquer an assortment of competitive barriers such as economies of scale, capital requirements, access to distribution channels, product differentiation, switching costs, cost disadvantages independent of scale, and government policy. These obstructions lengthens the period during which active companies may be able to make use of competitive advantage devoid of laying bare the competitive rivalry or imitation from others.

The Case of China Kelon Group

Problem Statement The issue in the case of China Kelon Group is whether they should push through their attempts to diversif...

China Hotels

INTRODUCTION Background of the Problem              In China, foreign and domestic hotels are one the country’s important economic source. People from all parts of the world visit China in order to see its famous foreign and domestic hotels and dine in its fine restaurants. In spite of the increasing popularity of China as an urban tourist destination, certain hotel business issues affect the influx of tourist and the revenue acquired from this business. The problem on competition for example, is one of the growing concerns of the foreign and domestic hotel business in China. In addition, customer satisfaction is one of the highly significant priorities in the business. Being the major source of tourism revenue, foreign and domestic hotel business owners in China are applying various strategies that will enhance the experience of visitors coming to the city.             One of the main issues relevant to the need of assessing service quality is the significant transitions that the foreign and domestic hotel business in China must undergo. One of the recognized changes in the hotel business of China was the transformation of its domestic and foreign hotels, where the once conventional hotels were converted into modernized ones. This transition implies the apparent increase of small firms providing tourism services at present, while the foreign and domestic hotel business used to be dominated by a few producers. In other words, the hotel owners in China now have a number of accesses to strategies and factors that amplify business competition. While this tendency has in many ways improved the overall state of foreign and domestic hotel business of the country, hotel owners also encounter difficulties to operate their businesses successfully, making the evaluation of service quality all the more essential. They have also stated that the competition in the domestic and foreign hotel business in China is augmented by new strategies introduced and implemented by various hotels. With the introduction of information and communication technology (ICT) as well as other technological facilities, tourists have more options and control over they type of hotels they want to stay. Hence, with the present advancements, foreign and domestic hotel businesses in China are giving more importance to specialized and enhanced forms of services for tourists, especially the service quality of the restaurants in these hotels. Another issue that is related to the need for evaluating service quality is the tendency of consumer behavior to change drastically. This has been observed by several researchers. According to these researchers, the changes in the consumers’ cultural values are among the most influential factors that affect the foreign and domestic hotel business in China. The difference on how consumer responds to products or services given to them is significantly dependent on their cultural origins and values, which naturally affects visitor experience. There are a number of interconnected issues that falls under the foreign and domestic hotel businesses in China. Competition, new strategies and changing consumer trends are among these issues. The main focus however, is on the comparison of the service quality of the foreign and domestic hotels in China. One way of doing so is by means of assessing the visitors’ expectation and satisfaction. Enhancing the quality of foreign and domestic hotel services given to the customer or tourists naturally leads to satisfaction. This essential business element is highly significant in combating the problems and issues cited. Hence, consumer studies in the foreign and domestic hotel business of China are very important.             By means of evaluating service quality and visitor satisfaction, developing new strategies for tourist hotel facilities that will augment customer satisfaction in China can be done. China is a popular tourist destination. Nonetheless, tourism issues affect this industry in one way or another. The local government should then adopt strategies and methods that will prepare the country for tourism. The comparison of China’s foreign and domestic hotels’ service quality and visitor satisfaction will facilitate the achievement of this objective. In this proposal, focus will be given on the tourists’ expectation and satisfaction upon staying in the foreign and domestic hotels in China. Specifically, this proposed study will evaluate the different hotel features offered by the foreign and domestic hotels in China and determine the level of satisfaction among randomly selected tourists within the vicinity. In order to evaluate the service quality, the survey and interview method will be used. This particular study will be of significant value to the foreign and domestic hotel businesses in China as it will provide an overview of the current status of the foreign and domestic hotel industry in China as well as ways on how its foreign and domestic hotels may be enhanced. Statement of the Problem  The foreign and domestic hotel industry in China is placed in a highly competitive business environment. Various strategies and marketing means must then be employed by entrepreneurs in order to enhance the services they provide. China is among the most popular tourist destinations in the world. With the abundance of historical tourist spots and archaeological sites, China is one of the countries in the world with the highest number of visitors. Nonetheless, considering the changing consumer trends as well other tourism-related issues, China must apply ways on how to enhance its foreign and domestic hotel industry and increase tourists’ satisfactory experience. Studying service quality is then necessary for this issue. This study will then attempt to answer the following inquiries: <li class="MsoNormal" style="COLOR: #333333; LINE-HEIGHT: 200%; TEXT-ALIGN: justify">How did China respond to the changing trends in the hotel industry? </li> <li class="MsoNormal" style="COLOR: #333333; LINE-HEIGHT: 200%; TEXT-ALIGN: justify">How do tourists describe their experience upon staying in the foreign and domestic hotels in China in general? </li> <li class="MsoNormal" style="COLOR: #333333; LINE-HEIGHT: 200%; TEXT-ALIGN: justify">What hotel features do they find most satisfying? </li> <li class="MsoNormal" style="COLOR: #333333; LINE-HEIGHT: 200%; TEXT-ALIGN: justify">What hotel features in the hotels need improvement? </li> <li class="MsoNormal" style="COLOR: #333333; LINE-HEIGHT: 200%; TEXT-ALIGN: justify">In what ways can the facilities, features and services of the foreign and domestic hotels of China be improved? </li> REVIEW OF RELATED LITERATURE The domestic and foreign hotel business is among the fastest growing economic sectors in China. In fact, the domestic and foreign hotel business by itself is recognized as multi-million dollar and still a progressing business in China. The domestic and foreign hotel business is among the major economic forces in the country as its enables growth and creation of job opportunities. The domestic and foreign hotel business has employed over a million workers who were distributed within various hotel establishments, totaling to revenue generation of billions of dollars. From these records, the domestic and foreign hotel business has indeed become one of the most competitive businesses in the world. Important changes in the understanding and management of the service quality of most domestic and foreign hotels have been developed in the past 10 to 15 years. Various researchers, practitioners and policymakers now acknowledge that service quality can be conceptualized from a functional perspective and that appropriate interventions involve the development of alternative measures to cope up. It was also noted that the establishment of a conducive restaurant environment for tourists to enjoy and relax have served effectively in lowering the prevalence of un-satisfaction among tourists. At present, this philosophical shift has extended to various settings, including China. Domestic and foreign hotel owners and entrepreneurs here have recognized that some tourists do not appreciate so much the quality of service that their hotels and restaurants offer. Hence, these tourists may have the tendency to shy away from visiting China and its other great cities because of this bad impression they have. For decades, researchers have tried to discover the elements of service quality among tourist establishments such as foreign and domestic hotels and restaurants. And while they might have been able to identify certain essential elements of service quality, they have yet to determine the elements that common tourists pay particular attention to. However, it has been shown that negligence of service quality produces consequences that foster bad impressions from tourists. Strong evidence suggests that service quality and its negligence engage in a reciprocal relationship that has a short and long term effect on the tourist’s future opinion regarding the service quality of tourist establishments. One of the criteria for identifying if a tourist establishment such as hotels is of high service quality is whether it has an impressive environment with fully operational facilities meant for the relaxation and enjoyment of the tourists and visitors. A deficit in basic services, as well as skills related to making the tourists and guests fully accommodated, significantly impairs a hotel’s ability to encourage more and more tourists to come over to their place. When compared to high quality serviced foreign and domestic hotels, low quality serviced foreign and domestic hotels have lower performance rates, lower income and are less likely to be known all over the place. As a consequence, low quality serviced hotels often experience a lifetime of problems in employment and publicity, and they are likely to become bankrupted even at a developmental stage.             Take for instance the various foreign and domestic hotel establishments in China having difficulty in adapting to the modern standards of service quality. At present, foreign and domestic hotel owners in China are facing an alarming acceleration in the occurrence of disruptive and challenging behaviors among tourists that seriously impede the performance and credibility of their hotels. Also, there has been a rapid increase in percentage of tourists who have failed to be impressed by the hotel and restaurant services of some domestic and foreign Chinese hotels. Unfortunately, many of today’s foreign and domestic hotels all over the world have both problems. Behaviors and tourist impressions such as lack of sanitation, boring environment and unfair tourist price accommodation rates have all been rampant nowadays. True enough, these problems are counterproductive towards the effective performance of foreign and domestic hotels. Serious impressions of tourists such as aggression, argumentativeness, and defiance are even more of a threat to these poorly serviced foreign and domestic hotels, yet common in countries which cannot afford to establish 5 star quality foreign and domestic hotels. Impressions and evaluations of tourists, both positive and negative, affect performance outcomes of hotels at the employee and management level. From a tourist perspective, tourists who displayed their un-satisfaction remarks in staying in poorly serviced foreign and domestic hotels had a 90% chance of not going back or staying again to the same hotel. They reported that such tourists begin to actively dislike the place itself and actually visit less that particular place. Continuing over years, these tourists are not likely to change their minds after a terrible experience staying on a poorly serviced hotel. Similarly, tourists exhibiting ongoing, serious bad impressions well even after so many years of that terrible experience are increasing. Service Quality  Service quality generally pertains to a tourist’s perception over a certain area or destination’s quality of services being offered. People of tourists tend to interpret the services in their surroundings without realizing it. This interpretation is based on the visitors’ needs and preferences that will allow them to function more efficiently. This makes up the visitor’s overall experience or perception. More recently, noted that service quality suggests awareness but not conscious awareness. The service quality is naturally enhanced when tourists could identify with specific environmental characteristics that they need or are important to them. Thus, the perception or experience in terms of service quality of the visitor is significantly related to the environment they wanted to be in. Service quality pertains to the degree of efficiency and effectiveness of the implementation of the policies and tasks necessary to satisfy a firm's customers, employees, and management. Service quality focuses on the careful management of the processes involved in the production and distribution of products and services. More often than not, small firms and business establishments such as hotels and restaurants don't really have the capabilities to directly determine the quality of their services to their clients or customers. Instead, they engage in activities that various schools of management typically associate with service quality management. These activities include the inspection of their products, service development, production and distribution. However, service quality deals with all operations done within companies and organizations. Activities such as the management of purchases, the control of inventories, logistics and evaluations are often related with service quality. A great deal of emphasis lies on the efficiency and effectiveness of processes. Therefore, service quality includes the analysis and management of internal processes. With the increasing competition in the industry as well as the changes observed among consumers, studying service quality is essential not only to keep the industry successful and productive but most importantly to satisfy and meet the needs of the tourists. Specifically, most firms in the industry are applying various strategies on how to improve their services and enhance service quality. Several technologies are being applied by operators so as to take over with some of the businesses’ main activities. Computerized reservation systems for instance, are one of the known advancements in tourism. This in turn, helps in enhancing service quality as it offers them more options and allows a faster access to information.             While there are numerous efforts done to enhance service quality, researchers concluded that there are also several factors that influence service quality. The preferences, attitudes and perceptions of the visitors in terms of service quality are some of the important factors affecting service quality. Other researchers.  Also concluded that the perception on service impacts is also an influential factor of service quality. In general, the researchers noted that the satisfaction and un-satisfaction that tourists experience while using the services in various destinations affect their overall experience. Hence,  stated that this makes this factor a significant dictator or basis for developing standards of service or product quality. China and Hotel Improvement Efforts  China has long been an ancient destination of many tourists from all over the world, who are very eager to see the city’s famed museums and historical sites, especially the Great Wall. During the early times however, a number of problems in tourism has been encountered by China. Pollution, overcrowding and poor domestic and foreign hotel infrastructures are among the country’s major concerns that affected its image among tourists. Since the beginning of the 20th century, the social amenities and hotel infrastructures in China have gone through significant changes. Funds and financial support from both UK and the European Union have made it possible for the nation to establish foreign and domestic hotels such as Beijing hotel and the Grand Hyatt Beijing hotel. The Metro system was also expanded massively. Other private investments also led to the great expansion of hotels and other tourist sites. One of the major developments that China had gone through in terms of tourism was the remodeling of their foreign and domestic hotels. In addition, a great pedestrian area was also constructed. These pedestrian areas are highly beneficial for tourists as these allow them to appreciate the country’s hotel infrastructures while walking calmly along paths of trees. Aside from the developments done for China’s foreign and domestic hotels, some of its major theatres and art galleries that house the world’s most precious artworks have also been renovated. Other famous tourist destinations in the country, including the Great Wall and the Forbidden City, have also been extensively transformed to resemble their original state for the pleasure and satisfaction of their tourists and visitors worldwide. China and Service Quality It appears that most of the country’s efforts for service quality development had led to great results based on the number of tourists that visited the country during the past couple of years. In one article, China has been described as a country that is busier than ever. Yet, in spite of the crowd, the newly-built foreign and domestic hotels have been helpful in accommodating the great number of visitors that came to the city. As a result, overcrowding of tourists has been prevented during this time, benefiting both Chinese residents and visitors. The article also stated that the energy perceived in the country is good and amazing. This perhaps is attributable to the fact that every tourist in the country felt that they are part of a family; hence, every tourist encountered is genuinely happy to be in China.             Some write ups however had commented on China’s spot security personnel on some foreign and domestic hotels and described the hotels as an army camp. The article author pointed out that in spite of their number, the security personnel do not really hinder tourists or visitors from appreciating the country. In addition, China at that time was without a doubt a country of hope and joy; it has definitely been a worthwhile experience for visitors from all over. The author described his experiences in China’s tourist destinations. In general, the author saw China as a historical country edging towards contemporary backgrounds. Though China and its significant foreign and domestic hotels are important tourist destinations, the pollution and overcrowding appear to be a disadvantage. In spite of these problems, trekking through the country’s remarkable foreign and domestic hotels was truly a worthwhile experience. Staying at the foreign and domestic hotels for instance was an exciting experience for the author as it was just like visiting the downtown sceneries. Though hotels offer different scenic views and environment, the impression of excellence can be perceived. According to the author, staying at the foreign and domestic hotels resulted to excellent visitor experience; some facilities offer less elegance, while others are interesting and influential.             Described how his trip to the foreign and domestic hotels in China was similar to the foreign and domestic hotels in America. The area was very busy and going to this place was tiring. However, once the author reached the hotels, the trip was all worth it. McHenry noted that the foreign and domestic hotels in China were different from all others found within America as it highlighted modern facilities in designated rooms. The artworks inside the hotels were more than a place displaying antiquities as treasure of great tastes were exhibited and made available for inspection. The foreign and domestic hotels were also an inviting tourist location with its great sights, food and shops. This, according to McHenry, was one of the main reasons for tourists to come visit China over and over again. During the author’s visit to China, the country was busy preparing itself for hosting the coming Olympic Games in 2008. Thus, he was able to witness the considerable effort China had done to enhance the country’s hotels, transport systems and roadways. Through this experience, the author no longer doubted how China was greatly spearheaded by tourism. There have been literatures describing visitor experience regarding service quality to various tourist destinations. However, studies of service quality in China are apparently insufficient. This further stresses the need to evaluate the perception of the country’s visitors so as to help enhance its existing foreign and domestic hotels and overcome various tourism issues. Service Quality in relation to Customer Satisfaction and Needs Gone are the days when employees work on their desks for eight hours a day. Today’s employees want to become as productive as possible while in their offices and interact with different individuals and groups in different settings. The technological advancement in wireless technologies has allowed workers and employees to access communication tools in new settings. Because of this rigorous and hectic schedule of employees, it became imperative for them to indulge in relaxing products and services to help them ease the pressure after every day’s work. Foreign and Domestic Hotel Service Quality Service quality among foreign and domestic hotels can be subdivided into three main categories. These are: A. Convenience A particular foreign and domestic hotel’s dedication to service quality can easily lead to the satisfaction of its customers in whatever place it is located. Making a particular foreign and domestic hotel convenient to its customers and visitors is not an easy task, and credit must be given to the management who always pursue the best service quality and craftsmanship in the name of convenience. B. Health / Safety / Sanitation The raw materials and ingredients that are used in the production of beverages and other delicacies must be able to meet the high quality standards and specifications. Even the packaging materials must be also subjected to strict quality standards. In line to the hotel’s policies in food and product safety, appropriate measures must be taken in the preparation of all food and drinks to prevent the possible contamination. Hotels must also implement the principles of the HACCP (Hazard Analysis and Critical Control Points) system in order to show their testament to their dedication to service quality. The food and beverages that their customers eat and drink must be prepared using nothing but the original and unparalleled recipes. To achieve a sweet taste, fresh aroma, bright color and clarity, only the purest ingredients must be used. C. Affordability of Services Normally, foreign and domestic hotels base their pricing strategies on several key trends that continuously shape the global marketplace of the foreign and domestic hotel industry. One particular trend is labeled as “premium-tization”. This phenomenon causes the polarization of different markets. This would then trigger the consumers to demand and pay much higher prices for perceived service quality. However, discounting in prices is also simultaneously taking place, therefore squeezing out the middle range. More often than not, hotels and restaurants undergo internationalization which leads to a tighter squeeze for shelf space. This will in turn leave them as winners. It is for this reason why most foreign and domestic hotels value the “premise sector” so much because this would allow consumers can to try their services at low risk and price. MEASURING SERVICE QUALITY A. “Consumer Understanding” The occurrence of consumer research to determine service quality within the economy reflects the growing difficulty in the management of foreign and domestic hotels that require the effective use of valuable resources such as money, materials, equipments, and people. This is the reason why consumer research is being done by most foreign and domestic hotels in order to determine the most effective ways to coordinate these resources through the application of analytical methods derived from fields of studies such as mathematics, science, and engineering. Through this process, problems are solved in different ways and alternative solutions are then relayed to the hotel’s management. The management then selects the appropriate course of action in line with their goals. More often than not, consumer research analysis in foreign and domestic hotels are concerned with complicated issues such as top-level strategy in attracting more customers, hotel resource allocation, designing of hotel facilities and systems, pricing and the analysis of goods and services. B. Balanced Scorecard The balanced scorecard is a strategic management system that allows foreign and domestic hotels to clearly establish and follow their goals and business strategies and put them into action. This approach also enables the foreign and domestic hotels to issue feedbacks around both the internal business processes and external outcomes, and this undoubtedly will help the hotels on their drive to continuously improve in terms of its strategic performance and results. When appropriately implemented, the balanced scorecard will be able to develop strategic planning into the brains of the hotels. The balanced scorecard approach is based on integral concepts of past management ideas such as Total Quality Management (TQM) and measurement-based management and feedback. The balanced scorecard integrates feedback within internal business process outputs, just like in TQM. The only difference is the existence of an additional feedback loop around the results of business strategies. C. Customer Satisfaction A major factor involved in the improvement of foreign and domestic hotels involves the establishment and utilization of performance measures or indicators that in turn measure their customer’s satisfaction. These measures or indicators are measurable characteristics of products and services that foreign and domestic hotels typically utilize in order to study and improve their performance. The indicators that will be chosen should be able to represent the essential factors that are crucial to the improvement of operational and financial performance. Through the analysis of accurate information brought about by the tracking processes, the measures or indicators themselves can possibly be analyzed and improved to support such goals.

China Hotels

INTRODUCTION Background of the Problem In China, foreign and domestic hotels are one the country’s import...