Question

Consider the various concepts in the co-alignment theory of hospitality strategy by Olsen, West & Tse, (2008), such as competitive methods (CM), core competencies (CC), internal and external environmental scanning (Trends & SWOT), critical success factors (CSF), competitive advantage (CA), value drivers, alignment, firm performance and other important components. Please elaborate on where each of these concepts are found in the co-alignment model, the interrelationships between them and how this leads to superior firm performance. Use a hospitality industry example to help explain your answer.

Answer 1

The co – alignment theory of hospitality strategy has great level of importance as, it can bring both financial success and Organizational success considering the sustainability, Hotelier need to employ such co – alignment theory or model that can bring better financial success, as It considers for various factors and analysis, that are essential and critical for growth of Hotel Industries. In Hospitality Management, Hotels are requiring to consider various concepts like Core competencies, competitive method, Internal and External factors, critical success factors, competitive advantage, value drivers, etc, here, through such analysis, they can optimize their performance and they can bring full potentiality within their work environment, that concepts and analysis also helps to gain satisfaction score of various stakeholders like customers, Hotel staff, employees, Investors, Etc,

For Example, If a hotel is situated at remote place, here, various problem may come like Transportation issues could be available, Local environment may include political dispute, riots, Land and Property related issues may take more time to resolve, so, in such situation, Hotel people need to consider Internal and External Environment analysis, that can tell them more clear and transparent Information about various situations associated with their Hotel. So that further will help them to create proper risk response strategy, and that will also help them to take better growth for financial success, this is why they should consider Internal and External environment analysis.

Further, in co- alignment theory, all such methods and factors are co-related to each other, for example, through Internal and External environment analysis like Swot analysis where we may find various threats, weakness, the weakness could be transportation issues at the remote place, again, there could be political threat, to manage such kind of external issues, Organization also need to grow with core competencies like they should be more aware how to handle both internal and external issues, they should be understanding reasons and source for various issues, they should be having their financial strength, human resource strength, and better organizational culture, all such are core competencies as required to be aligned with the SWOT analysis. This is why we need to keep consideration of alignment within co-alignment theory.