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Overview of the various sectors within the hospitality industry

etc.venues started life in 1992 when its entrepreneurial founder Sally Wilton,frustrated by the poor quality of training venues decided she could do better – as with so many success stories, life started very simply with a small hard working team inspired to make a difference.Their first venue, Avonmouth House, was opened in South London and was an instant hit – awards poured in and new venues were opened across London. By 2006 the business had 6 venues, sales of £9m and an impressive client base of public and private organisations.


All entrepreneurs get itchy feet and in June 2006 Sally handed over to Alastair Stewart who, backed by Dunedin Capital Partners, arrived to lead the next stage of the company’s expansion. Millions have been invested in new venues and upgrading and expanding the existing venues, with recent openings focusing more on larger conferences and events with adjacent exhibition space.They have scooped their fair share of awards over the years, one of their favourites
being the PPA awards where the judge’s remarked "...an incredible and varied portfolio of venues expertly tailored to client's needs, the very professional etc.venues team is an events manager's dream. This is an innovative business model that is reflected in venues that are really moving with the times. An outstanding winner."


With the strong backing of new investors Growth Capital Partners, they were recently named by the London Stock Exchange as one of the 1000 Companies to Inspire Britain and by Eventbrite's Pulse Report as the UK's favourite venue host.They continue to grow hosting 770,000 delegates over the last year with annual sales now over £50m. Their largest venue etc.venues County Hallhas opened across two floors and offers 65,000 sq. ft. of event space, but they are not just opening new venues in London with their first venue in Manchester now open to rave reviews.

They are a fast growing challenger brand that loves great customer service,contemporary design, edgy communication and outwitting their larger rivals. However,what they are still really proud of is to have continued their founding principles to do Hospitality and Venue Management Summer 2018 Coursework Brief the simple things well, to put service first, to be green where they can and to be that little bit better than everyone else.

As a recently appointed business development manager for etc venues, you are required to prepare a 3500 word report regarding the growth options for the business.The report should also outline various future trends and development within the hospitality market.
The report should include the following:
? An overview of the various sectors within the hospitality industry. (LO1)
? Opportunities for internationalisation. (LO2)
? Management issues within hospitality. (LO2)
? HRM and operations. (LO2)
? CSR and sustainability issues. (LO2)

? Future trends and development within the hospitality market. (LO3) Important information:
The report should be based on research into the hospitality industry and should backed up by facts and figures.The Harvard referencing system must be used for citations and the list of references.It is recommended that the students use appendices and cross reference them. 

Overview of the various sectors within the hospitality industry

Etc. Venues have started its business in year 1992 under the supervision of Sally Wilton, who was concerned about the poor quality of training process. The company started its business in the South London with the aim of providing quality services at a large scale. The company had achieved reward at its initial stage of business. In the initial years, the company has expanded its business by opening up new stores across London. By the end of 2006, the business had six venues and was able to earn high revenues that were approximately 9 million euro (Wong, 2013).

The company was able to manage the growing annual sales of its business in the entire London market. The company strives to serve its customer at its best by adopting strategies like making new and unique designs to satisfy its customer, following proper communication process in the managerial and other levels of the organization and outwitting its large rival firms. The company used to undertake its customisation process according to the needs and requirement of its customer (Durkin, 2013). In order to achieve the business internationalization, the efficient HRM and operations department have been set up to monitor the performance of business in the respective areas (Hartley and Claycomb, 2013). 

Overview of the various sectors within the hospitality industry

The word hospitality is derived from the term ‘hospitare’ that means to receive as a guest. Hospitality is the act of kindness in welcoming and serving the basic needs of individual guest mainly in relation to food, drink, and accommodation. Hospitality is the relation between the host and the ghost. The responsibility of the guest entertainment, visitors, or stranger’s liberty and goodwill of the company etc. lies in the services provided by the company. The hospitality sector includes offering food and beverages to the customers, lodging, recreation and travel and tourism (Jones, Hillier and Comfort, 2016). 

The food service industry covers the business of preparation of food for the customers. This sector is considered the largest segment in hospitality industry in countries like US. It can be estimated that food and service industry provides 50% of the meals in many countries. There are many opportunities available for the entrepreneurs present in the country. Lodging business involves booking a place for the customers to accommodate them for a day or more.

The place can be a fancy hotel, a youth hostel, a campground, or a highway side motel. Recreation is an activity that people do for the purpose of rest, relaxation, and enjoyment. The aim of recreation is to provide a person’s body the refreshment and peace of mind. Any business that provides the facilities relating to refreshment and relaxation to give rest to the body is the business of recreation. Recreational activities can be of four types i.e. entertainment, attraction, spectator sports and participatory sports (Bowie et. al., 2016).

Travel and tourism is another sector in this industry that includes the movement of people from one place to another. The tourism industry deals in providing services that supports the travel and vacation activities of the tourists. Various companies are providing these services and trying to give the maximum satisfaction to their clients (Etc. Venues, 2018a).  

Expansion Plan

Expansion Plan

  • Etc Venues will provide its services of managing the event in other country also that is Ireland. Company is planning to expand its business operations in Ireland also. The company is planning to give the premium services in their initial stages in Ireland to make the large customer base. From the Pestle analysis, it can be identified that the Ireland will be suitable to expand the business of Etc. venues due to the economic and social factors. The company is planning to expand its business in Ireland in next one year. Company is planning to open 10 venues in Ireland for organizing the events, which is achievable in nature.
  • At present Etc. venues has large strength of its human resource department, which are skilled and knowledgeable in nature. To expand the business in Ireland, company need workforce to arrange the events and other things related to the event. Around 200 peoples will be required in Etc. Venues to perform all the work in events. The training will be given to them so that they treat their customer well. The recruitment and training sessions by Etc. will get start within 8 months.
  • The company is found to be socially responsible as discussed in the report. Etc. venues are found eco-friendly in nature as they are using the ways and methods that are not harming the society and environment. The support, which was given to the community of London, will also be same given in Ireland. Company is also planning to provide remaining food of events in charity to orphanage and other organisation.
  • oportunities for internationalization

The growth opportunities are associated with the international markets. Internationalisation is key driver of the success and growth of the company. It promotes the expansion of business.  The internationalization of business by Etc. Venues has been undertaken for the purpose growth and to achieve the knowledge related motives where the company gets to know the functions of other markets too. Etc. 

Venues are expanding its business in countries like Australia, Ireland, China as the company has sound knowledge of markets of these countries, and the consumer base is wider in these countries. Etc. venues have contacts and social tie-ups in other countries as well which has enabled it to expand its business outside its home country (Radosevic and Stancova, 2018).

Another opportunity that the company has with it is the network that they have formed while helping the people at large by providing free services, foods and service to the poor people and orphanages to the needy people. At present, company is planning to expand its business in United States and beyond by collaborating with the US investors Gemstone Collection and BenchMark Resorts and Hotels. The collaboration will spur the global expansion of embarked etc. venues in urban and destination sites in both Europe and US (Paul, 2009).

12C’s framework

The 12 C framework related to the business framework. The factors, which affect business activities directly in etc. venues, include:

The first C in the business of event management, which influences the operations and activities, includes customer, which gets the maximum care and support from the company in which he is dealing with (Refer Appendix 3).

 The technology used by the company to attract customer. The use of new technology increase revenues and satisfaction of their customer and the experience he gets while receiving performance will matter to the customer and its future demand. The customer will demand the service again only when he gets maximum satisfaction

Another C, which consider important in Etc. venues are collaborating with the new giants of the market to get the back support in the market. This collaboration not only supports the business financially but help in building the good image in front of others too.

Ansoff Matrix

The Ansoff matrix relates to the types of strategy, which Etc. venues are using such as market development, market penetration, product development, and diversification (Refer Appendix 1).

  • The company has already developed its market in Australia. The connection that the company has with other countries helps it to develop its worldwide market.
    Market penetration allows the company to offer its existing service in the new market. This strategy has been adopted by the company to expand its business in United Kingdom and Europe through the partnership of the Gemstone Collection and Benchmark Resorts and hotel in the United
  • The company is developing the new concepts and ideas to grab the attention of its customers. Recently, the company has added the new services like organizing the marriage events in the scope of its business.
  • The last strategy that the company can use is diversification of its existing activities while introducing the new service in the new market. This strategy is considered as risky and hence the company is not able to adopt it in its business.
  • Selection of country for expansion from PESTLE Analysis

Etc. venues selected Ireland to expand their business operations. The will invest their amount in Ireland for opening the new venues which are formed with the motive of large conferences and events with the adjacent exhibition space. The reason behind the selection of Ireland is that the demand for events is increasing in the country. Moreover, this is the fact that Etc. venues will earn a profit if they expand their business in Ireland and will be able to meet their mission (Appendix 4).

Management issues within the hospitality business:

All sectors are facing the management issues and not only the hospitality sector come up with this problem. Irrespective of the nature and size of business, every organization has to face this problem. Etc. Venues are also facing some of the management issues in its organization. These management issues related to the planning, organizing, and controlling of the job profiles and working within the organization (Jones, Hillier and Comfort, 2016). There are many issues, which are as follows:

12C’s framework

Hiring the best staff

Finding the best staff is a problem for all the employers, but it can be particularly found as challenging for the hospitality business. The challenge of hiring the efficient staff and retain them for the long-term in Etc. Venues is next to impossible. However, a company like Etc. venues are able to do it by providing the standard of living and other amenities to their staff. The incentive schemes provided to them will make them retain in the business in Ireland (Etc. Venues, 2012b).

Competition

In Country like Ireland, labour is considered as the mobile factor of the business i.e. they can be shifted to another competitor in the industry who is offering them a higher pay. This competition has to face by Etc. venues in Ireland.

Improper marketing efforts

In Ireland, people are using high technology in its day-to-day life. Etc. venues keeps on advancing day by day, many options are available for the hotels to capture the market space online. However, according to the survey, it was come to knowledge that around 70% of the companies are following the old trends in the market. Therefore, it will be advantageous for the company like Etc. venues to operate its business online in Ireland, which will not expand its customer base but also do the promotion of services and business in the market (Watson, 2008).

High services rates

Etc. Venues is providing high-quality services in London, it has to ensure that its services will be affordable to the end users in Ireland too.  Charging the high rate from the consumer may shift them to firm’s competitors in Ireland. Service rate charged should be according to the services provided by the company.

Lack of refreshing events and entertainment

In Ireland, tourist who stays in a hotel room expects the refreshing events and entertainment programs to get relaxed from the stressful conditions. Etc. Venues influences the visitors to come again by organizing the entertaining events. The attractiveness in the event is of such nature that it leaves a good image of the etc. Venues (Burritt, Hahn and Schaltegger, 2002).

Changing Customer Expectation

Etc. venues have continuously analyzed the needs and requirements of customer through the research and development department. With the emergence of the new competitors in Ireland market, it becomes difficult for the company to grab new consumer. Customers expected that the Etc. venues would provide the service in low cost and while providing all the convenience, personalization, and efficiency at work in Ireland. 

Leadership

Another challenge faced by Etc. venues is the lack of a leader in the business. No one accepts his or her mistakes. Finding the people who are responsible for mistakes found to be the typical work by the manager (Cheng, 2016). 

Communication

In every country like Ireland, communication is there in every type of business irrespective of its nature and size. The culture and laws of Ireland will have to be adopted by the Etc. venues. If communication in Etc. venues is not properly then no orders and commands will moves to lower level staff. On the other side, if the queries of staff are not transferred to the higher level, the problem of workers will not get resolved (Pirani and Arafat, 2016). 

Porter Five Forces Model

From the porter five forces model it has been clarified that in the market, the buyers are not having any control in bargaining or negotiating the price as there are very few sellers in the market. The bargaining power of buyers is low in the market. (Refer Appendix 2).

Etc. venues are not facing any threat of its close substitutes, as there is less number of sellers present in the market. There is low threat of substitutes in the market (Goren and Yemini, 2018).

HRM and operations                      

In the business of event management, managing the human resource considered crucial in nature. Workers do all the work in this type of company only. There is certain responsibility which human resource department has to accomplish to have the better workforce in the business. Managing an event by etc. venues requires various things, which are as follows:

Role of HR in event planning by etc. venues 

The company first create the job description for workforce. In this workforce, they decide what work they have to perform and what are their roles and responsibilities. All their duties and responsibilities have specified in it. A job description holds many purposes, which includes helping people to understand the job role advertised. It will provide them the correct objectives and guidance needed for the people who will perform the work. In this type, all staff is required being offered to them is written in the job description. It will clear out the things (Berman, 2015).

Advertising the new positions

It is the role of human resource department to recruit candidates for the new positions and help the company in finding the right employees for a given position. For this company like etc. venues are using the advertisement on social media, newspaper etc.

Conducting Interviews

Once the human resource team has collected a number of potential candidates for the job advertised, the company now arranges and conduct a number of interviews of such candidates (Barney, 2014).

Training and work allocation

In this part, the human resource department gives training to the employees and then allocates the work according to the skills and knowledge of employees.

Payments and rewards

From the research, it has been found that majority of the employees are money driven. They are working and being connected to the organization to fulfill, their monetary needs. However, the performance will also matter in this; as if the event will go in the direction then only workers will get the rewards and payment for the same (Ahlvik & Björkman, 2015).

Event safety and time keeping

Safety of an event is particularly important and takes careful consideration and months of planning. Etc. venues are using heavy equipment and large displays often utilized during the events, which needs proper safety and protection at the workplace (Etc. Venues, 2018c).

Operations and logistics

The operation and logistics are also playing the important role in the business of managing the events. The operation department undertakes the functions of planning and monitoring the events. Etc. Venues majorly takes care of three aspects, which include:

this, company is giving brief information and instruction to the staff and its suppliers. It involves arrangement of the personnel to review and check the availability of the facility setups, menus, and function. The operations and logistics department has to check all the travel and transportation work (Wang et al., 2015).

On-site 

All the formalities like registration, catering, and transportation work is undertaken at the onsite stage. All the checking and verification of work like a sound check, lights, and other things are undertaken to ensure the success of the event (Etc. Venues, 2018).

Post-event

In this stage, the related persons to the event give their feedback about the event that whether the event is successful or not. The report prepared by the company in regards to the success and failures faced in the event. This will enable managers not to repeat the same mistakes in future business periods. Reconciliation and checking of activities is undertaken at this stage, by the company to check revenues earned in a financial period (Zibarras and Coan, 2015). 

CSR and sustainability issues

Corporate social responsibility in the hospitality and Tourism Industry discusses the issues and challenges that are faced by the organization in the implementation of the various business practices that undertaken by the business to earn more profits and revenues within the travel, hotel, leisure, and hospitality industries. Etc. venues focus on giving the maximum satisfaction to their stakeholders so that the business can run smoothly without any interventions (Bello?Pintado, 2015).

Etc. Venues have also won the awards in the areas of environment protection. The company has been awarded as the green Champions. The company is providing the wealth of the public transport outside and a track of sustainability to make the other green with envy. The company not only supporting the environment but also contributing to upgrading its local suppliers, as they are the person because of them, the company is flourishing in the market. Another feature that the company has adopted in business is the provision of multi-cultural activities. There is a cosmopolitan team in the organization. The workings undertaken by the company is quite satisfactory (Etc. Venues, 2012).

CSR is considered as the natural choice for the company. The company is growing and trying to nurture the society with its CSR policies to ensure that the company has the positive impact in the eyes of the world. The company is focusing on sharing of the relevant information in the market. The sharing of personal information to the outsiders is not allowed in the business. Other factors are also there which are to be focused on, to capture the market. The company avoids the use of wrong or malpractices. Facility of security and transfer of international funds of the customer is handled with due care by the company (Etc. Venues, 2018b).

Etc. venues are supporting the schemes Magic Breakfast by sending the material and chefs to the orphanages, so that they can cook for food for the children and other people at large. Funds rose in this type of workshop can be used for various purposes by the organization. They offer the variety of fruits and vegetables to the poor children in the orphanage and help them. They are delivering the nutritious breakfast to more than 17000 children a day in various areas of England where the children are striving because of the hunger in their whole school day and are not able to focus on learning the new things. The charity has more than 180 partner schools in London (Etc. Venues, 2012).

The company is found to be small and they strive to support the idea of helping something small where a small help makes big difference to them. Another CSR activity performed by the company includes the recycling of the cardboard, paper, and distributing the pieces of furniture to the local community groups or organizations. It has been analyzed from the report that the company recycled around 70% of the waste and used it for its business operations. (Etc. Venues, 2018e).

Future trends and development within the hospitality market

Catering to the Millennial

Millennial are those aged between the range of 18-34, expected to organize the event in the London. Etc. venues have to identify the millennial who are regularly organizing the events to have the large share in the market. The company needs to explain their strategies based on these demographic groups of personality traits and habits. In return, satisfied millennial will actively promote their business on social media channels (Jones, Hillier and Comfort, 2016).

Tech explosion

The majority of the people are self-sufficient, tech perceptive and updated with the technology using apps or mobile websites. Event Company has to ensure that they are up to date and user-friendly so that they can coordinate with the guests and their clients properly.

Sustainability rules

Nowadays every individual wants to do the work, which is good for the environment. The aim of sustainability is not for the company only but for everyone. Similarly, Etc. venues are undertaking the eco-friendly business practices as it has become the basic norm, and it focuses on the renewable energy resources. The company has achieved the rewards for the same and in future also it will do the best in sustaining the resources for a longer duration (Xiang, Magnini and Fesenmaier, 2015).

Increased responsibility for employees and managers through employment

 The company should focus on increasing the responsibility of the workforce by involving them in the decisions making process. In the companies like Etc. venues diversified workforce is functioning. The system of adopting the varied culture should be there for sustaining the business for the long period in such companies.

Consumers and governments concern with sanitation

The business has to comply with rules and regulation formulated by the country. The compliance of rules and policies are equally important for the business. Sanitation issues and safety issues should be resolved by the company on the highest priority to ignore the legal interventions of government (Baum, 2015).

 Globalization                            

Due to the globalization, expansion of business has become simple. This has given the opportunity to the company to expand its business in international markets too. It will increase revenues of the company.

Real-time damage control

The company has to ensure that their guest remains satisfied with the performance by the staff and company. As only one dissatisfied person can make the promotion of the company in a negative way and vice versa. Engaging with the customer and solving their problem in the service industry is necessary and considered a key role of success. Marinating the positive relationship with their guest, it will drive to the future bookings (Xiang et al., 2015).

Conclusion

From the above discussion, it can conclude that etc. venues are performing well in hospitality industry. The company’s performance can be gauged considering the increase in the revenues and sales. From the report, it can be analyzed that the hospitality’s sector is not that small but wide in nature and cover larger portions, under which customer satisfaction is at the top. Satisfying the needs of customer is the prime focus of service industry like hospitality and in venues management. For this customer satisfaction, the company predicts their choices, taste, and preference of the customer. Such information is collected by the research and development department. This accuracy makes the management process simple by proper planning, implementation, and controlling of the performance.

The company comes up with the new opportunities in the market by collaborating with the strong parties, which make the internationalization of the business simple for the company. The Company is also found to be responsible to the society and therefore it has to take up CSR activities. The company will expand their business in Australia due to the various advantages in the region and wider customer base.

References

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Jones, P., Hillier, D. and Comfort, D. (2016) Sustainability in the hospitality industry: Some personal reflections on corporate challenges and research agendas. International Journal of Contemporary Hospitality Management, 28(1), pp.36-67.

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