PPT REPORT: MIDTERM-21 (EMAIL TITLE) - 20 SLIDES WEEK 8: ANSWER THE QUESTIONS & SEND APPT REPORT (Next Week, 16%) - INDIVIDUAL WORK 1. What factors influence the decisions taken by Mr. Kim? (a) What internal factors influenced his decisions? (b) What external factors influenced his decisions? Internal Factors: Changing local culture, economy with improving living standard of people, changing demands, and taste of his customers for new ameities. External factors: Influence of western world and lifestyle. 2. You are a consultant, advising the New World Hotel to improve customer service relations. The following changes have been proposed. Explain why each might or might not be justified. Prioritize the six most important changes. (a) Better lit mirrors in the bedrooms (b) Membership cards to all the facilities (c) A public bath (d) A tourist desk (e) A library and quiet reading room (f) Rooms redecorated in pastel colors (g) A business center (h) A bookshop (i) Exercise rooms (6) Tours of local attractions (k) High quality hair dryers in all bedrooms (1) A car rental desk 10 STES HOTE 21 MIDTERM EXAM: TWO PARTS WEEK 7: READ THE ARTICLE & PARTICIPATE (45 min, 4%) - GROUP WORK The Korean Hotel Imagine that you own and manage a small hotel. Fifty years ago the great majority of your guests were tourists. Now, the overwhelming majority are business people. What possible factors in the business environment might have caused this change? Focus on these three points to explain your answer. Westernization of the Hotel due to tourists from different parts of the world. Development of business and industry in the local community. Change in local economy and standard of living of local population. In the years immediately after the Korean War the people of South Korea were occupied solely in rebuilding the basis of their shattered economy. No one had surplus money to spend, and few Koreans were sufficiently affluent to vacation away from home. The hard work paid off. The economic boom started in the 1960s and only began to slow down in the late Westernization of the Hotel due to tourists from different parts of the world. Development of business and industry in the local community. Change in local economy and standard of living of local population. In the years immediately after the Korean War the people of South Korea were occupied solely in rebuilding the basis of their shattered economy. No one had surplus money to spend, and few Koreans were sufficiently affluent to vacation away from home. The hard work paid off. The economic poom started in the 1960s and only began to slow down in the late 1990s. The national economy was geared to achieving developed -nation status by competing effectively in the international automobile industry. The strategy was export driven. Competitive advantages were gained from the relatively low cost of skilled labor; nevertheless, in Korean terms income levels increased rapidly, and the Korean lifestyle changed. Some aspects of the western culture were borrowed and adapted to Korean needs. Koreans began to travel within the country, both on business and on vacations. The southwestern town of Chunsan is an expanding industrial city which has now a reputation for producing quality automobile parts. In the 1960s, foreigners visited to enjoy the peaceful and beautiful beaches. But as the pace of the industrialization increased and more factories were built, population took its toll and vacation business declined steeply. The owner of the largest hotel, the Regent, decided to sell out. He announced at the press conference that "Chunsan has become a wasteland so far as our industry is concerned. But not all the competitors agreed, they were attracting very fewer seasonal tourists and sightseers, yet the shortfall was being made up by increasing numbers of commercial visitors, not all of them Korean. Because industry has expanded so quickly, many technologies were unable to keep pace. Many technologies were imported, and foreign - + Automatic Zoom business people were increasingly common in the streets where once they had been objects of curiosity They expected to be able to meet in lobby bars and restaurants that served international cuisine. In addition, townspeople had more money to spend on hotel entertainment. Companies were willing to spend large sums on retirement parties and families on their children' marriages. The New World hotel had been built by a family entrepreneur, Mr. Kim Se-Jon. In the early days, facilities were limited; darkly painted bedrooms, a lobby area and a small dining room. Now that the business was beginning to make steadyI profits, Mr. Kim began to think about extending and improving the facilities in order to serve the new clientele. Over time, the guest profile was changing. One striking sign of this was the number of women visiting alone, throughout the world; increasing numbers were taking up business careers, and traveling as a part of their careers. In the US women made up only about 1 percent of all business travelers until the 1990s, but by the mid-1990s, the figure was close to 45 percent. A similar tendency was now being seen in Korea. By 1999, 37 percent of all business visitors to the New World Hotel were female. Also, business visitors were younger, with professional qualifications. Unlike Mr Kim's generation, many had travelled outside the country, and had learned new habits. That was more conscious of the values of a healthy lifestyle One day, when chatting to an old friend, Mr Kim stopped to greet a regular business visitor. He commented on how fit the man appeared. Yes, I've just come back from a trip to Australia." A vacation, I wish I had the time. Not quite, work. The hotel had a health club and my schedule turned out light. So I could spend a lot of time there." "What's a health club?" he asked. He had read about them in magazine stories about the West, but had never been clear. "Yes, that's one thing they'll never change about us Koreans," said Mr. Kim, thoughtfully. We do love the bath house." When a journalist interviewed Mr. Kim and asked about his strategy, he replied, I don't want to talk about my strategy in detail. I am sure that my competitors read your newspaper." "You will be sure that they will read this interview." Mr. Kim laughed. But I will tell you my general attitude. In our modern world, my hotel manager has to think about what new services his customers might want. What to add, what old services that he should change or cut. He looks for signs of changing taste. Not changing the taste of one or two guests, but cultural change. New values that affect the needs of a large part of society. That part which he hopes will buy his services." One doesn't expect a hotelier to think so much about culture." "Why not? Culture is always a major influence on the travel and hospitality businesses. It determines where we travel to and how, where we stay, what we eat." PPT REPORT: MIDTERM-21 (EMAIL TITLE) - 20 SLIDES there. "What's a health club?" he asked. He had read about them in magazine stories about the West, but had never been clear. His guest explained, and then added, "And I wasn't the only Korean there." This time Mr. Kim was really surprised. You weren't? "But of course, only our young people go." The friend interrupted. No, No, real Koreans relax in the bath house. You never persuade us old-timers to change that." "With respect," said the young man," not only the older generation. I also like to spend time in the bath with my friends. When I come from the health club." " Yes, that's one thing they'll never change about us Koreans," said Mr. Kim, thoughtfully. We do love the bath house." When a journalist interviewed Mr. Kim and asked about his strategy, he replied, "I don't want to talk about my strategy in detail. I am sure that my competitors read your newspaper." "You will be sure that they will read this interview