Project Materials

PURCHASING CONCEPT ON THE BUSINESS PERFORMANCE OF HOTEL

Chapter one

INTRODUCTION

1.1 Background of the Study

The purchasing concept is an important management theory employed in modern business operations. However, prior to this, there were other business philosophisers who discussed production and selling notions.

However, when conditions changed and rivalry in the economic sector intensified, the purchasing notion evolved and became more prominent. As rivalry among businesses heated up, it became critical to pay attention to customers’ demands and desires.

The purchasing concept evolved to supersede all earlier concepts. The purchasing concept states that the key to meeting target market demands and wants is to supply the needed satisfaction more effectively and efficiently than competitors.

The purchasing concept is a management philosophy orientation or frame of mind that the marketer works with. It is based on a purchasing focus, a customer orientation, and a market orientation that coordinates purchasing and profitability. Many business organisations have been founded in this country, and they work hard to achieve their profit goals.

To be successful, any company organisation must incorporate some components of a purchasing program into its policies and programs. As a result, in order to fully comprehend the purchasing idea on the business performance of hotel services, we must first understand what it is all about.

Purchasing can be defined as the management process that is in charge of discovering, anticipating, and profitably meeting the needs of customers. (The British Institute of Purchasing, 1989:1).

Purchasing can also be considered as a social and management process that allows individuals and organisations to obtain what they need and want by developing, offering, and exchanging value-added items with others. (Kotler, 1991:10)

Services can be defined as any activity benefit or enjoyment that is available for purchase. It is primarily intangible and may not always result in ownership of the business outlet. Its manufacturing may or may not be associated with a tangible product.

In a nutshell, a hotel is a building that provides guests with rooms and, in most cases, meals in exchange for cash. Furthermore, premium halls and room suites are available. Swimming pools, a fully equipped business centre, and laundry services are just a few examples.

Hotels in Nigeria provide essential services and amenities such as lodging accommodations (presidential suites, executive suites, and master bedrooms). Room services include restaurants, bars, and clubhouses.

Swimming pools, lawn tennis courts, and garden parks are examples of recreational facilities. On the other hand, a restaurant is a location where meals are made, served, and consumed. Since well-equipped restaurants include television sets, musical sets, and so on to keep guests in a relaxed environment.

Increased market prices have forced hotels to become more market-oriented in order to meet the requirements and desires of their consumers while also achieving their own organisational goals.

Hotel purchasing can therefore be described as the use of the purchasing concept in the hotel business in order to provide more effective services to clients.

In recent years, the hotel industry has undergone numerous changes and developments. Some of these changes have an impact on people’s economics, politics, and social lives. (With others being the result of technology and societal changes), hoteliers have recently been converted and re-engineered to fit the current trend in hotel management.