Module 1.2 THC3 Case (Profit? Growth? Survival? Service? Customers? Environment?

)
Six hospitality management students were having a discussion at the Student Center
about the primary goal of hospitality organizations.
Jim said emphatically, “Large hospitality corporations are in business to make as much
money as they can. No matter if it’s food, lodging, or gaming, profit maximization is their
primary goal, and everything else is secondary. Business exist to make a profit.”
Will agreed, up to a point: “If the hospitality organization is a public corporation, profits
are a necessity, but the primary goal of any business is to grow. No business wants to stay small
and unimportant. Company officials and stockholders want growth, for the feeling or progress
accomplishment it brings and for the profits that will eventually accompany growth.”
Jane said, “There’s something to what you both say. Any company needs profits, and any
company would like to grow. But survival is the primary goal, because without it you can’t have
profit or growth.”
Sally said, “Any hospitality organization’s goal had better be to give good guest service.
If the organization achieves that goal, all the rest will fall into place. If they don’t, they have no
chance anyway.”
Spiro said, “My dad owns a restaurant, and he agrees with my professor who said that the
main goal of any business is to get and keep customers. No customers, no nothing. I agree with
my dad.”
Betty said, “No matter what your learned in class, you are all kidding yourselves. Primary
goals are just for looks anyway. No matter how specific an organization’s goals, no matter how
carefully it plans, no matter how hard it works to meet those goals, the environment within which
the organization markets its product or service will determine the organization’s destiny.
Organizations react to environmental forces, regardless of goals. To succeed, a business
organization doesn’t need to establish goals; it needs to be lucky enough to be in the right place
at the right time and take advantage of the opportunities presented to it.”
Discussion Questions:
1. With whose position would the company’s stockholders most likely agree?
2. What do you think the CEO would say? The employees? The guests?
3. Where do you stand on the issues? (Or do you have an even different views?