SO individual essay

Faculty of Business, Economics and LawSustainable Operations: Individual AssignmentName & URN: Bingyan Liu (6247034)Overall Mark: Word Count: 1971 wordsWith reference to both theory and practice, discuss the role of stakeholders in managing the sustainability of operations in hospitality and tourism businesses.Evidence of understanding the importance of sustainability including extensive reading and critical application of the theories of sustainability in H&T operations management .Relevance, coherence and intellectual depth and logical development/structure ofargument.Standard of presentation: Information and ideas presented in a clear, accurate and interestingmanner.OverallSecond marker’s comment:With reference to both theory and practice, discuss the role of stakeholders in managing the sustainability of operations in hospitality and tourism businesses.IntroductionSustainable operations management indicates the whole operational processes from inputs to outputs which concentrating on maximizing the integrated economic, environmental and social benefit and minimizing any potential negative impacts that may affect future generation’s developments (Jones and Robinson, 2012). Considering the inherent special feature of hospitality and tourism industries, relying on the environment and may have various influences on the community, Erick (2007) proposed that sustainability is indispensable in the success of hospitality and tourism management, which could be supported by studies of Inskeep (1991) and Southgate and Sharpley (2002). However, the successful implement of sustainable operations management in hospitality and tourism industry is not easy, Gunn (1994) believe that the support of stakeholders, both internal and external would be one main key to practice sustainable operations management.This essay would be organized as following: firstly, we would introduce some basic conceptions about sustainable operations management; secondly, we would try to demonstrate the importance of linking sustainable operations management into hospitality and tourism industry; thirdly, we wou ld try to identify different stakeholders’ responsibility in successfully executing sustainable operations management in hospitality and tourism businesses and finally a conclusion would be drawn.In 1987, the World Commission on Environment and Development first formally established the conception of sustainable development as “development that meets the needs of present without compromising the ability of future generation to meet their own needs”. Paul et al. (2005) further explained that sustainable operations management enables companies to effectively balance the people and the planet with profits. Correspondingly, Erick (2007) summarized that sustainable tourism development should meet the needs of present tourists and region hosts and at the same time minimize the bad influence on environment and future developing opportunities. Erick (2007) also implied that tourism industry usually relies on local environment and may also have big influence on local economy, society andenvironment. To be specific, tourists would naturally bring revenue to local hospitality and tourism businesses and at the same time would inevitably increase local environments’ burden. The optimistic outcomes of operation should not just be evaluated from its profit but from environmental, economic and social dimensions together. Various studies believe that sustainability in hospitality and tourism industries operations would not only lead long-term economic benefits but also accelerate the cohesion of different stakeholders’ power. Sustainable operations in hospitality and tourism businesses could produce a win-win outcome for both business operators and local people. Anne (1996) suggested that the unprecedented growth of tourists and pure profit leading operations would bring unrevised damage to the World Heritage Site, which could not be off-settled by the limited short-term tourism income and it could be a permanent lose for human. In other words, just as other nature resources, the environment and local society on which tourism and hospitality businesses built are also limited, any kind of improper exploitation and usage would result in a bad influence on the future generation. Therefore, in order to reach a long-term benefit from hospitality and tourism industry, it is important to incorporate the sustainable operations managements.However, the implement of sustainable operations management has lots of obstacle, since it is related with wide range of stakeholders, which have diverse expectations from the hospitality and tourism businesses. Gunn (1994) stated that one crucial factor of successful implement of sustainable operations management in hospitality and tourism businesses is the support of stakeholders, which could be defined as groups or individual who can either affect or is affected by the businesses. Generally, there are six main stakeholders, customers, suppliers, shareholders, competitors, employees and local community: customers may be the most obvious party who will be affected by the businesses, specifically in hospitality and tourism industry, the experiences of clients would be the most crucial factor in evaluating the performance of the businesses; suppliers would influence the business at a upstream position, without effective and sufficient supplies, it could be impossible for hospitality and tourism businesses to keep running; shareholders are the real owner of the business and would directly receive beneficiaries from the successful operations of the businesses; employees are people who finally deliver services or products to the clients, their performance would determine whether managements are successful or not and their working condition and methods usually designed by the management level; competitors are usually regard bycompanies as motivation, reference or even leader, which would undeniably affect and be affected by the businesses; local community is where the businesses are based in, specifically, for hospitality and tourism businesses, the local community can be affected by clients and tourists and may benefit from the economy simulated by hospitality and tourism businesses.As we discussed above, different stakeholders may affect and be affected by hospitality and tourism businesses in various perspectives. This sector, we would like to analyse their respective role in implement sustainable operations management in hospitality and tourism industry. It is generally believed that there is no deniable that stakeholders do play an important role in the sustainable operation in hospitality and tourism industry. Ioannides (1995) based on his empirical study of Akmas, Cyprus suggested the potential problems that may arise when stakeholders are absent in the planning of tourism businesses. According to his study, Akmas government was planning to build a national park and tried to avoid complicated negotiation processes with local residences by keeping the plan quiet. However, after the local villages found out the government’s plan, they hold extreme negative attitude to the government’s ignoring of their opi nions and stated that they would conduct drastic actions to stop the national park project. Inannides (1995) concluded that the involvement of stakeholders in the whole process of tourism business project is indispensable in the success of sustainable tourism developments, similar ideas could also be found in the researches of Briassoulis (2002) and Robson and Robson (1996).After recognizing the impact of stakeholders in sustainability of hospitality and tourism businesses, researchers tried to understand the respective roles of different stakeholders play in sustainable operations management. Just as stated by Cohen and Uphoff (1980), if we intend to perform a successful sustainable operations management by considering the participation of different stakeholders, it is necessary to understand the causes and effects of stakeholder’s different behaviours. Firstly, the impact of customers. Salah (2000) pointed out that the customer-oriented sustainable competiveness would contribute a world-class successful tourism businesses. He proposed that the big success of Singapore tourism industry could attribute to the sustainable awareness of customers. Tourists are willing to travel to a country with little poverty, little dirt and little crime with a focus in long-term sustainable development and growth. From the study of Salah (2000), we could suggest that in order to cater to the sustainability pursue of current customers, there is a positiveenvironment for implement sustainable operations management in hospitality and tourism businesses. In other words, customers pursuing sustainability in their lives would be a motivation for the sustainable development of hospitality and tourism businesses. However, Salah (2000) also proposed the obstacles brought by customers in sustainable operations management. Butler (1980) stated that the unprecedented tourists’ growth would break the healthy tourist demand circle and may reduce the tourism destination’s comparative advantage and reduce future tourist demand.Another import stakeholder that would have big influence in sustainable operations management would be the employees. Employees include decision maker and ordinary staff who deliver service or products directly to customers. Erick (2007) proposed that the decision makers would be responsible for whether the industry protects or destroys ecosystems, since they would make the decision about, such as, the volumes of waste, the growing demand for resources, which are all closely related with the environmental, economic and social outcomes. He also mentioned that a decision maker with sustainable operation management awareness would in charge of design the methods of how to involve other stakeholders in every stage of hospitality and tourism businesses operations. Erick (2007) based on the study of Susskind and Cruikshank (1987), stated there are five elements in successfully involving various stakeholders in the whole process of hospitality and tourism sustainable operations management: “fairness, efficiency, knowledge, wisdom and stability” (Erick, 2007, p.8). He defined the fairness as all stakeholders’ advices are taken into consideration and the business operators are not be fair of the arguments from stakeholders. Efficiency refers to the cost of involving stakeholders in the businesses should be limited. Knowledge, means all stakeholders that are involved should have corresponding knowledge to understand the issue. Wisdom require stakeholders to apply current information to anticipate future situation. Stability, means the decision could last and stand.Erick (2007) also applied a practice example to demonstrate his opinion. In Selma, NC the government would like to revitalize the downtown district through tourism. To process this project, the project manager firstly prepared a draft of proposal and spread it as many business owners, local residents, local official and other stakeholders as possible. After this informal process, he could receive lots of feedbacks and revised the proposal accordingly.The government then produce a formal meeting to communicate with stakeholders face by face. After the review of various stakeholders, the proposal got overwhelming support. In order to keep the stakeholders involved, the project manager discussed with stakeholders informally about the situation of the project and establishes an advice board for stakeholders to propose their advices. From this practical cases, we could find that the project manager and other decision maker plays a significant leading role in the implement of sustainable operations management. Thirdly, the role of suppliers. Sustainable operations management requires an efficient supply chain. The design of supply chain and transportation would be another important issue in the sustainable operations. Stefan et al. (2010) stated that sustainable investments have to be paid by the firm to organize customized and efficient supply chain, mangers have to decide what value they would like to allocate to ecological and societal concern. Reliable suppliers would also assure the businesses sustainable operation, since it could save lots of money and time resources that spend on searching new suppliers.ConclusionIn conclusion, it is not deniable that sustainable operations management, which indicates the whole operational processes from inputs to outputs that concentrating on maximizing the integrated economic, environmental and social benefit and minimizing any potential negative impacts that may affect future generation’s developments, is indispensable in the long-term success of hospitality and tourism businesses. However, the incorporation of sustainable operations would not be achieved easily and require various stakeholders support. Then bring out the crucial question, who should be involved in the sustainable operation process and how should they be involved in? Generally, there are six main stakeholders, customers, suppliers, shareholders, competitors, employees and local community. It is not complicate to understand that there is certain relationship between differ ent stakeholders’ behaviours and the businesses outcomes. But there are still some unclear issues regarding the specific cause and effects of stakeholders’ different behaviours.We try to analyse the customers, employees and suppliers impacts on the sustainable operation management of hospitality and tourism industry in more detail and find out that customers with sustainability awareness would simulate the sustainable operations in hospitality and tourism business. Employees, specifically, the project manager or other kind of decision make would play a leading role in involving wide stakeholders into the businessesand finally enable the project to get overwhelming supports from different stakeholders. Erick (2007) proposed five elements, “fairness, efficiency, knowledge, wisdom and stability” (Erick, 2007, p.8), in the involvement of stakeholders, which could guild the involvement performance of stakeholders in sustainable operations. Further researches should pay more attention to the empirical study of successful cases of sustainable operations management in hospitality and tourism industry to understand the relationship of stakeholders’ certain behaviours and corresponding operation outcomes.ReferenceAnne D. (1996) Developing Sustainable Tourism for World Heritage Sites, Annals of Tourism Research, Vol. 23, pp. 479-492.Briassoulis, H. (2002). Sustainable tourism and the question of the commons, Annals of Tourism Research, Vol.29 (4), pp.1065-1085.Butler, R. W. (1980) The Concept of a Tourist Area Cycle of Evolution: Implications for Management of Resources, Canadian Geographer, Vol. 24 (1), pp.7.Cohen, J.M. and Uphoff, N.T. (1980) Participation’s place in rural development: Seeking clarity through specificity, World Development, Vol. 8, pp. 213-235.Erick T. B. (2007) Stakeholders in sustainable tourism development and their roles: applying stakeholder theory to sustainable tourism development, Tourism Review, Vol. 62(2), pp. 6-13.
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