TOURISM AND HOSPITALITY

Tourism and Hospitality Business



Tourism and Hospitality Business

Introduction

The analysis of the external environment of an organization consists of examining factors such as economic, social, demographical, management and ecologic factors. These factors can result in a significant impact on a tourism company, either directly or indirectly. In addition, examining the external environment can assist in identifying the strategic choices and direction of the organization. The strategic choices can further help in determining the future direction of the company. The analysis pertaining to the growth and development of an organization depends on the company and its geographical location (Raina 2004, Pp. 353-416). Later, the analysis can identify the strategic opportunities for the company, which includes increased cost efficiency and income. In other words, such opportunities may result in increased efficiency and output. On the other hand, identifying the opportunities is the result of effective analysis of the environment and the ability of the company to make use of the information prior to the competition. Employees significantly contribute toward the identification of opportunities. However, a tourism company can achieve success if it manages to combine the environmental research and its resources because the external environment of a tourism organization has a complex structure, which consists of a number of factors (Hara 2008, pp. 124-163).

SIF Transylvania

SIF Transylvania, successor of the Private Ownership Fund III Transylvania, was established in November 1996, and is the dominant domestic player in the Romanian hospitality sector with a portfolio of about 50 hotels. SIF Transylvania is an entirely private and self-managed closed-end fund, which manages a portfolio of 270 companies (as of June 2009) across various industries in Romania. These industries include machine building, chemical industry, food and beverages, finance and banking, shipping and tourism (Kabia 2005, Pp. 231-288).

It's most recent financial results, for the period January-September 2009, show SIF Transylvania achieved total revenues of over RON163.8mn (US$59mn), up by nearly 53% annually, while costs rose by 15% annually to RON34.5mn (US$12.5mn). Net profit amounted to RON123.8mn (US$44.9mn), representing a strong increase on the corresponding period a year earlier. In order to promote the group's hotel portfolio on the domestic and international tourist markets, the fund established Transylvania Travel in 2003 (Matias 2009, Pp. 174-205). The accommodation facilities - with a total of over 9,700 rooms (as of 2007) - are concentrated on the Black Sea coast, in the resorts of Eforie Nord, Eforie Sud, Neptun, Venus and Saturn, and the health resorts (spas) of Felix, Tusnad, Covasna and Buzias, famous for their thermal and mineral waters. Most of the hotels have been renovated to meet high international standards.

External Analysis

Economic factors

It consists of a complicated structure. Economic factors incorporate internal and external market places, economic growth rate, consumer spending power, economic potential, monetary and credit policies, inflation, and rate of exchange. The economic factors can have a significant impact on demand and the income of a S.I.F. Transylvania (Light & Phinnemore 2001, Pp. 154-246). Statistical information of some parts of the Romania regions does not show ...