Questions and Answers
What is a characteristic of an administered channel system?
Which of the following is NOT an advantage of franchising for the franchisee?
What is one of the main benefits provided by a franchisor?
Which of the following represents a disadvantage for the franchisor?
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What is one way to build customer value?
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What is a disadvantage of a franchise for the franchisee?
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What is a primary benefit of outsourcing supply chain activities?
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Which type of distribution primarily involves intermediaries to reach the customer?
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What is NOT a distribution activity in the context of supply chain management?
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Which is a characteristic of a selective channel distribution strategy?
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What is the role of travel agents within the supply chain?
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Which term describes a system where channel members work together to meet consumer needs efficiently?
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What advantage does an exclusive channel distribution provide?
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Which of the following is a reason for maintaining multiple sources of supply through outsourcing?
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Study Notes
Supply Chain in Hospitality and Tourism
- Comprises suppliers, vendors, intermediaries, procurement, delivery systems, and retail outlets.
- Essential for obtaining products/services that add value to customer offerings.
Supply Chain Management
- Integrates organizations, people, and activities for efficient service production and distribution.
- Ensures delivery of services at the right time and place for customers.
In-House vs. Outsourcing Supply Chain Activities
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In-House Activities:
- Focus on maintaining quality standards and controlling costs.
- Provides direct control over delivery time and supply quantity.
- Protects proprietary designs and leverages employee strengths.
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Outsourcing Activities:
- Avoids capital investment and reduces inventory costs.
- Allows access to supplier expertise and maintains multiple sources of supply.
- Helps free up capacity but may lack necessary competencies.
Distribution Activities
- Involves communication, negotiation, transaction facilitation, storing and moving goods, and installation/service.
Channel Organization
- Channel length can be direct (shorter) or indirect (longer).
- Distribution strategies include exclusive, selective, and intensive distribution channels.
Alternative Channel Structures
- Key intermediaries include:
- Travel agents.
- Tour wholesalers/operators.
- Meeting planners.
- Hotel representatives.
- Destination marketing organizations.
- Destination management companies.
- Concierges.
Channel Management
- Focuses on channel power, leadership, vertical marketing systems, and member selection/retention.
Vertical Marketing Systems
- Corporate system: All channel members are in the same organization.
- Administered system: Control of flow by one member based on power dynamics.
- Contractual system: Structured around legal contracts, such as franchising agreements.
Building Customer Value
- Enhance customer benefits through product and service improvements.
- Strengthen brand image and company benefits while improving cost efficiency.
Franchising
-
Advantages for Franchisees:
- Established product presence and technical assistance.
- Maintains quality standards with lower operating capital and growth opportunities.
- Benefits from cooperative advertising.
-
Disadvantages for Franchisees:
- Subject to additional fees, loss of control, and difficulty in termination.
- Pooled performance factors complicate success.
-
Advantages for Franchisors:
- Enables rapid expansion and diversification of risk.
- Achieves cost economies and engages in cooperative advertising.
-
Disadvantages for Franchisors:
- Loss of control, reduced profits, and potential legal issues in recruitment and employee management.
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Description
Explore the intricacies of supply chain management in the hospitality and tourism sector in Chapter 10. Understand how suppliers, vendors, and retailers collaborate to enhance service delivery. Delve into the processes that add value to final offerings and discover strategies for effective procurement and logistics.
