Entrepreneurship in the Hospitality, Tourism and Leisure Industries

269 Pages·1999·14.74 MB·English

by  Alison Morrison

Entrepreneurship in the Hospitality, Tourism and Leisure Industries
About the Authors
Alison Morrison is a senior lecturer specializing in small business manage-
ment and entrepreneurship at The Scottish Hotel School, University of
Strathclyde. She has a MSc. in Entrepreneurial Studies and her Ph.D. thesis
investigated small-firm strategic alliances. Since 1979 she has been an entre-
preneur in her own right, owning and operating a number of restaurant and
hotel businesses. In addition, she regularly undertakes consultancy projects
for entrepreneurs both in the UK and internationally.
Mike Rimmington is senior lecturer and MBA Programme Director, School
of Hotel and Restaurant Management, Oxford Brookes University. He is a
graduate of Durham University Business School. He has taught entrepre-
neurship courses at graduate and undergraduate level for over five years in
the UK, France and USA. Entrepreneurial activities have included the devel-
opment and launch of innovatory graduate-level distance learning courses.
These now recruit students world-wide.
Claire Williams is a lecturer in Marketing and Hospitality Business, School
of Leisure and Food Management, Sheffield Hallam University. Her M.Sc.
thesis at Virginia Polytechnic Institute and State University investigated the
link between hospitality entrepreneurs and business strategy. She has been
involved in the creation and operation of several entrepreneurial ventures
including a property company and, most recently, Churchill's Fine Sandwich
Emporium.
Entrepreneurship in the Hospitalit-
Tourism and Leisure Industries
Alison Morrison
Mike Rimmington
Claire Williams
9
E I N E M A N N
OXFORD AUCKLAND BOSTON JOHANNESBURG MELBOURNE NEW DELHl
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First edition 1999
Reprinted 1999,2001,2002,2003,2004( twice) 2005.2006
Copyright 8 1999, Alison Morrison, Mike Rimmington and Claire Williams.
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The right ofAlison Morrison, Mike Rimmington and Claire Williams to be
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Cont ents
Forezuord ix
Preface xiii
Part One Concepts, Principles and Environment Associated with
Entrepreneurship 1
1 The process of entrepreneurship 3
Introduction 3
Definition 4
Types of entrepreneurship 9
Participants in the process 14
Entrepreneurship elements 15
Features of an entrepreneurial firm 22
Summary 23
2 Entrepreneurs 27
Introduction 27
Definition 28
Typologies and categorization 30
Entrepreneurial transition 34
Entrepreneur research approaches 35
Characteristics, features, attitudes, and behaviours 42
Summary 49
3 Corporate entrepreneurship 53
Introduction 53
Intrapreneurship 54
Organization for intrapreneurship 56
Intrapreneurship encouragement 59
Dysfunctional management practices 61
Summary 68
4 Environment for enterprise 71
Introduction 71
Political intervention 72
Formative phase of social development 78
Promotion/ inhibition phase of social structure 81
Mobilization phase of social action 88
Summary 94
vi Contents
Part Two Finance, Business Planning, Operations Management,
Marketing and Strategy 97
5 Finance, business planning and entrepreneurship 99
Introduction 99
Sources of start-up funding 102
The business plan 104
Sources of finance 109
Financial management 121
Summary 122
6 Operation and management of entrepreneurial organizations 124
Introduction 124
Entrepreneurial skill requirements 125
Management expertise - name of the game 128
Entrepreneurial immaturity 132
Controlling the business 133
The entrepreneur and human resource management 135
Organization structure 137
Delegation of authority 140
Entrepreneurial decision making 140
Reactionary and gut feeling as operational advantages 142
Teamworking 144
Entrepreneurs and quality management 145
The entrepreneur and management of the life-cycle 147
The entrepreneur and business failure 150
The entrepreneur and business growth 152
Summary 155
7 Marketing and entrepreneurship 161
Introduction 161
Marketing and competition 162
Marketing and markets 164
Market orientation 165
Market positioning and segmentation 167
The post-modernist consumer challenge 172
Post-modernism and product life-cycle 177
Pricing, value and concept flexibility 180
Differentiation and communication 182
Geographic dispersion and micro-demand 185
Summary 186
8 Strategy and entrepreneurship 189
Introduction 189
Entrepreneurs and strategy 193
Organizational issues 195
Environment for entrepreneurial strategy 201
Entrepreneurial strategies 212
Summary 224
Contents vii
9 Entrepreneurship, an overview 228
Introduction 228
The process of entrepreneurship 228
Entrepreneurs 229
Corporate entrepreneurship 230
Environment for enterprise 231
Finance, business planning and entrepreneurship 232
Operation and management 232
Marketing and entrepreneurship 233
Strategy and entrepreneurship 233
End view 234
Index 239
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Forew ord
The late John Paul Getty, one of the greatest entrepreneurs of the immediate
post War years once said that a lasting personal relationship is only possible
if you are a business failure. Whilst this may not be altogether true, it does
underline the uncompromising commitment required to make a success of a
business, almost to the exclusion of all else.
The authors carefully examine the motivation of entrepreneurs, analyse
the main drivers of entrepreneurial behaviour and establish the factors
which lead to business success. Though entrepreneurs are by nature
activists, talung time to read and reflect on this book would greatly increase
their chance of success and reduce the possibility of failure. Both individual
entrepreneurship and corporate entrepreneurship are examined. Although
the latter is seen to be quite different as the corporate environment implies a
greater level of bureaucracy and no individual financial risk.
Whether the entrepreneur is born or made will always be difficult to estab-
lish. What entrepreneurs share is a certain restlessness, abundant energy, a
capacity to inspire, intelligence and personal and critical values. They have
the ability to challenge established procedures and assumptions, an unwill-
ingness to take no for an answer, and a certain impatience to get the job
done.
Whilst successful entrepreneurs come from varying backgrounds and
environments, an upbringing where parents are self employed or in business
does give a certain conditioning. Many successful entrepreneurs come from
families where the parents have been entrepreneurially successful, Rupert
Murdoch is a fine example. Being brought up with a work ethic and being
raised in a business environment does grow some ability and skill but the
drive which is required must be inbred.
Money per se is not necessarily a motivator. There are never ending exam-
ples of successful entrepreneurs who have created wealth far in excess of
their own, or their families needs, but are driven on to even greater things.
Although by then it is the enjoyment of the game or the thrill of the chase
which may be the main spur.
Entrepreneurs, by their very nature will succeed whatever the constraints
of the environment they work in. In countries where the economic structure
and taxation regimes are hugely unfavourable entrepreneurs still survive,
and find their way round the difficulties. Italy is such a country; Italians are
probably entrepreneurial by nature and in spite of the draconian bureau-
cratic controls, anti-employer labour laws, high levels of taxation and huge
state enterprises, they have managed nevertheless to flourish.
But the most entrepreneurial environment is that of the USA where belief