Unit 2

Activity 1
You are interviewing for an internship. Create a value proposition for yourself that may use as your thirty-
second “elevator speech” to get the company interested in hiring you or talking to you more.
Hi, ma’am/sir. I’m Jane Apola and I’m actually here to present myself for internship. And, I really hope
to work with you because I believe I can be a great addition for your team and here’s why. I have skills and
background that matches your need for the company and if there’s anything I still need to improve or know, I
always have rooms for that in me which makes it easier to study and learn things in a small amount of time. I
am also sociable and professional enough to work with whomever you want me to work with. Flexibility to time
and creative mind is what I believe this company needs and I can assure you, ma’am/sir that I have those. I
know other candidate can say that too but you never know who’s telling the truth. By the way, here’s a copy of
my resume and if you have more questions about me, please don’t hesitate to contact me by the number
attached in my resume. Thank you, ma’am/sir.
Activity 2
Suppose you work for a major hotel chain. Using porter’s five forces model, explain what you need to consider
with regard to each force.
 Threat of New Entrants
Hotels must strive to occupy their rooms as efficiently as possible, both in terms of room
occupancy and relative tariffs. The two most important factors that allow hotels to distinguish
themselves are their position in relation to the perceived customer base and the standard of their service.
This latter problem is reliant on good management and well-trained and motivated employees. In most
major cities around the world, the hotel industry offers several opportunities to cross-sell lucrative items
such as food and beverages. Tariffs are calculated based on the degree of distinction obtained by
location, management, staff-to-guest ratios, and any other unspecified variables such as architectural or
decoration quality.
 Bargaining Power of Suppliers
Suppliers to a business could be dominant when they're more focused than their clients, and their
clients do not demand a large share of their market because they do not reflect a possible long-term or
big partnership. Alternatively, their customers can face differentiated goods and services, as well as
high-cost advantages. A consumer could be unable to switch suppliers if the switch will incur additional
one-time switching costs. And, whether the transition results in a presumed decline in the quality,
picture, or quality of the supplier's product, which will have a negative impact on the customer's service.
Suppliers have more bargaining leverage if their commodity is critical to the success of the industry. The
supplier's feedback, such as local tourist operators, is critical to the performance of the customer's
product and service, reducing the customer's price sensitivity.
 Substitute
Substitute goods or services can save money while still providing improved quality, efficiency,
and value, which is also the result of technological advancement. Except perhaps in times of recession,
domestic travel may replace foreign or offshore travels, and some destinations may replace more costly
ones on cost grounds, the hotel industry in all metropolitan areas is not affected by substitute product.
Because of technological innovation, replacement goods, in principle, serve the same purpose, minimize
costs, and/or provide higher quality value with good value. Hostels, motels, and staying with relatives
can substitute cheaper hotels in the “lower” strategic groups for tourist traffic. This demand is either
low-income or cost-conscious, but it is highly price-sensitive in any case.
  Bargaining Power of Buyers
Buyers can easily find suitable alternate place or hotel if the goods and services they acquire lack
distinction or switching costs. Buyers can present a backward integration risk since a large number of
buyers can obtain different place. If the buyer's product and service are not critical to the performance of
the industry's input, price sensitivity increases. Buyers have an opportunity to be powerful if their
purchases from the industry account for a sizable portion of their overall costs. Buyers would gain low
margins and be price sensitive as they are unable to quickly pass on cost increases or absorb them due to
low profit margins.
Activity 3
Explain why some strategies work for some companies but not for others.
Some strategies work for some companies but not for others because of their differences from each
other. Not every company has the same needs, same resources, and even same environment. Certain strategies
work according to details each company has. A strategy cannot surely work if the company lack or has a
complicating excess because aversity will surely arise. The only solution for a company to use a certain strategy
is if they modify the strategy according to their own needs, resources and environment.
Activity 4
What factors do firms and entering foreign markets need to consider?
If your company has done well in your country, you might be ready to grow internationally in order to
obtain more consumers and market visibility around the world. But, before you take the big move, there are a
few things you might think about. There are several nuances that influence business decisions.
First are the economic factors. Not every economy will be appealing to all businesses. Some businesses
may realize that some markets cannot afford the goods they offer, and that they should avoid those markets;
however, some markets may be willing to adopt a slightly modified version of their existing offering. Firms
should be mindful that words such as "middle class" mean different things in industrialized and developing
economies.
Another factor that must be considered are the social and cultural factors. Nations vary in regards of
language spoken, religion practiced, food consumed, and a variety of other factors. These distinctions are real
and important, and companies should examine how they can impede or promote the firm's marketing campaigns
in the new market.
Political and legal factors also must be taken in consideration. Until an organization commits money, it
is vital to understand the government's and people's attitudes in the host country. The past history of a firm, as
well as its stated disposition toward international investments and assets, should be taken into account.
Lastly, market attractiveness towards the new market is also crucial. The attractiveness of a market can
be determined by assessing consumer potential in terms of sales, trade agreements in terms of the host country's
willingness to welcome foreign corporations, and potential competitiveness and business dynamics in the
market place.
 Activity 5
How do franchising and licensing strategies differs?
The difference between licensing and franchise is that licensing is an extension-limitable contractual
entity which only applies to the use of the label or technology. Franchising requires a connection that goes
beyond licensing and contains a management relationship where the ongoing enterprise is expected to perform
under specified systems and procedures. In general, franchise laws describe a franchise as a contract involving a
trademark license, a degree of autonomy over company practices and the paying of an initial charge. So, it is
more likely that the partnership is a franchise if you aim to expand your business unit by including a
relationship that gives the franchisees a certain amount of autonomy and says on what their franchisee/licensee
partners do and market.