Case Study on The Hotel Industry in Kenya

CHAPTER ONE
INTRODUCTION OF THE STUDY
This chapter examines the background on the study, the statement of the research problem and the purpose of the study - Case Study on The Hotel Industry in Kenya introduction. The research objectives research questions, the significance of the study, and limitation of the scope of the study are also explained. 1.1 Background of study.

Hotel industry is all forms of business relating to provision of accommodation in the lodging, food and drinks and various types of other services that are interconnected and form intended for the public services, both of which use the lodging facilities or who simply use the services or the production of certain services of the Hotel. As such Hotel mean commercial establishment providing lodging to travelers, tourist and sometimes to permanent residents and often having restaurants, meeting rooms, stores that are available to general public. Hotels are being classified into “star”(1-start-o5-star) even though there are no standard methods of assigning those rating and compliance with the customary requirement is voluntary. Hotel chain provides a uniform standard through out non-chain hotel(even within the same country)may not agree on the standard, although both World Health Organization (WHO) and International Standard Organization(ISO)have been trying to persuade Hotels to agree on some minimum requirement as world norm, the entire membership of Paris base International Hotel and Restaurant. Association opposes any such moves. According to (IH&RA) to harmonize the hotels classification base on single grading(which is uniform across national boundary; as a rough guide on the bases of 1-star Hotel, 2 star hotel, 3 star hotel. A star hotel and 5 star hotel such rating differentiate the hotels with regard to provision of their services as ranging of limited amenities but adhered to a high standard of facility, wide cleanliness to widest range of most luxuries premises and guest services as well as swimming pool, sport and facility. www.booking.com/Hotel. In 1960s the Government of Kenya was quite aware of the adverse effect of dominance and control of hotel industry by the foreigners due to repatriation of profit, importation of personnel and some foodstuff, therefore establishment of Kenya Tourist Development Corporation in 1965 aimed to break of the monopoly enjoyed by foreigners despite the commitment to the indigenization of the hotel industry and sustenance of the tempo of tourism, the Government focused its attention mainly on the international tourism while a substantial amount of money was set aside to promote domestic tourism in the first decade of independence. (R. M. Maxon, 1992) A continental research study released for Africa Hotel Investment Forum which was for Nairobi September (2012) revealed a positive spike touching on the number of multinational hotel investors rushing to set up operation in sub Sahara Africa.

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Kenya is emerging as a fast growing hotel investment destination with international chain such as; Best Western, Radisson Blu, Park Inn, and Three Cities branded hotel all under construction- and 200- room Lansmore Hotel. New brand on the drawing board; (Mr. Ndegwa 2012). Kesser (2003) the term service delivery platform usually to set components that provide service delivery architecture (such as service creation, session and protocol) for a type of service different players define its component and it breath and depth is a slightly different way of Maintaining high quality services, the hotel is faced by the challenges of accommodation and food if the services rendered and product issued do not fully fit the customers’ expectation, poor quality service deliveries will be established from the customers’ perspectives. Its vital for the hotel industry therefore to acknowledge the message that quality is really about satisfying the needs and expectation of the customers.

Meninel al (2010) agree that the provision of duty is not easy task to meet because it feature. Product too, and high level of interaction and that implies that their should be high degrees of professional an other factors like staff motivation, efficiency, consistency, speed of the delivery as well as friendliness of the employees is also integral elements for customers and these attributes attract them to revisit. To ensure public counter ability ,yet to go on optimum impact, through the use of commercial best practice, there is a need or for professional training and education of those personnel responsible for the strategic direction and partial action . professionalism can be only come from full understanding of all the issues involved ,a sound knowledge of the legal and commercial aspects and the confident to make decision that effectively balance the tension , it has been rated as the most influential factors in gaining the customers’ satisfactory loyalty and intentions to revisit.

1.2.1 Profile of Nairobi Serena Hotel
Nairobi Serena Hotel is situated in the heart of Nairobi city; the extensive ground of Serena Hotel contains a fitness centre and spa. Justly fame for its exceptional standards of efficiency services and five- star hospitality, the elegantly sophisticated Nairobi Hotel is a member of the leading Hotel of the World group and is consistently voted “Best Hotel” in Nairobi City by Airline and International Travel Magazine alike. Despite its pivotal central location, the Serena Nairobi Hotel remains true to its title and offer s an oasis of serenity a mid of bustle of one the Africa’s most vibrant capital cities. Nairobi Serena Hotel offer a fine -dinning restaurant with a seasonal menu and extensive wine- cellar Guest can enjoy a variety of snacks and drinks at the pool side bar, cocktails at the Aksum Bar. The 24 hrs front desk can organize concierge, limousine and baby setting services or make an appointment for guests at a site hair salon, free private parking is provided and a shuttle is provided upon the request to Jomo Kenyatta Airport ( JKA ) 13km away, Railway Golf Course is 3 km away and Nairobi Park is within 9 km drive. The elegant and precious rooms and suites are decorated, with worm colors and wooden furniture, equipped with air conditioning and a private bathroom. The interior deco reflects an entirely Pan Africa theme featuring art and inspiration from Ethiopia, the Maghereb. West Africa and East Africa, offering a range of dinning experiences, the Hotel in Kenya is renowned for its madhari fine – dining restaurant which is rated as one of the Kenyan’s finest. Nairobi Serena Hotel also offers a world class conferences entire and the elusive “maisha” Health Club and Spa .

Nairobi city undisputed business venue of choice both for visiting executives and for the regional corporate events. Planners, Nairobi Serena Hotel offer unrivalled choice of the executive suits, global connectivity conferences planning proficiency, product launch experts and high- proof international corporate events venues.

Organization Structure

Source: Serena Journal (1998)

1.3 Statement of the problem
The Hotel industry is a broad categories of field within the services industry that Include the lodging and restaurant, event planning them park, transportation cuisine Line and addition fields within the tourism industry, it is several 1 billion dollars industries that mostly depends on the availability of leisure time and dispensable income.

The dynamic of the customers’ culture, need and expectation not only computed the hotel industries to high professional in the field. it is also invested in the sophisticated assets challenge the unique services like conferences facilities that can be matched with other partners in the same field .As such the industry has been faced with the challenges of competitions together with the upcoming information communication technology where by the manager of the hotel industry are tying to find a working formula to take advantage of the others for proper satisfaction of their customers needs and expectations.0

For services delivery to be noticed by both parties that is the customers and the hotel management there is a need to find a plan for meeting such objectives in form of strategy and that will enable the management offer continues improvement services delivery. Therefore this study is being looked into to find how the competition, training strategy and Information Communication Technology pose challenge to the hotel industry to the management in service delivery. 1.4 Objective of the study

1.4.1General Objective
The purpose of this study is to establish challenges facing services delivery in the hotel industry in Kenya with reference to (Serena Hotel) 1.4.2Specific objective
i.To determine the effect of the staff training on service delivery in Hotel industry ii.To establish the effect of competition in service delivery in the Hotel industry iii.To find out the effect of the government policy in the Hotel industry iv.To investigate how the Information Communication Technology affects service in Hotel industry v.To find out the effect of the strategy on service delivery in the Hotel industry

1.5Research questions
In order to conduct this research study the successfully, the following questions are asked by the researcher:- i How does the staff training affect services delivery in the hotel industry in Kenya? Ii To what extent does the competition affect delivery in the hotel industry? iii.How does the government policy affect the delivery in the hotel industry in Kenya? iv.To what extend does information and communication technology affect delivery in the Hotel industry in Kenya. v.What is the role of strategy in the Hotel industry in Kenya?

1.6Significance of the study
The study has five components of the study that explore whether training staff, Government policy, competition, information and communication and strategy technology have effects or influence services delivery in the hotel industry (Serena Hotel)it opens different aspect of the theory generation that may support further research into services delivery aspect as a whole.

1.6.1 The Organization
This study well enables the hotel to beat the competition that will win the customers loyalty and confidence. It will result in increase of the income of the hotel and lead to the growth of the business as well the entire hotel industry. 1.6.2The Employee

This study will enable the employees learn new ways of satisfying guests better with world class standards. This study will also help to develop close support between employees and the guest. 1.6.3Government

The government of Kenya is responsible for general welfare of citizens, like any other utility which goes a long way in eradicating poverty ,enhance
development among citizen by offering the employment opportunity , the challenges facing services delivery in Hotel industry ,therefore the Government on rules and regulation in setting any commercial business affecting hotel industry .

1.6.4Other researchers
The researchers who are doing related study may use this research as their data. The research will also propose other areas which explore further. 1.7 limitation of the study
The unwillingness of some respondent will mostly affect the study adversely, whom are not quit conversant; with ‘hotel industry management and the entire needs and expectations of the customer and with regard to services delivery.

1.7.1 Confidentiality
Some of the respondents will have the perception that confidentiality of their response will not be kept with a fellow employee so they will not willingly give some information especially touching on the management. 1.7.2 Accessibility

It will be difficult to have access to some confidential information in the hotel under study; the study confined itself into five challenges which are being investigated. Data will be gathered and interviews conducted within the scope of these challenges thus contributing to availability of limited data for analysis since there are many other challenges that the study failed to incorporate and have an effect towards service delivery. 1.7.3 Non-cooperation from respondent

The researcher to experience some aspects of unwillingness to discloseinformation to be considered important for the study. They will not be able to cooperate because t of thinking that the study is a private research and collecting information may be used for wrong purpose. However the researcher will overcome this by assuring them it for academic purpose only.

1.8 Scope of the study.
The study is to be carried out in Nairobi Serena Hotel Nairobi city along Kenyatta Avenue Street to determine challenge facing service delivery in the hotel industry, the target population obtained is 60 employees. The study is to be taken within five months.

CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction

This chapter is a review of relevant literature which is considered necessary in helping to understand the research study. It represent the review of literature on the topic under study which has been done by various researchers, theorist and authors .The researchers have drawn materials from several sources which are closely related to the theme and objective s of the study . This will guide the researchers to come up with the best solutions to solve the problem at hand and add more strength to the existing studies in the same field and highlights the identified gaps and presents the conceptual frame work. 2.2 Review of Theoretical Literature

2.2.1Training Staff
Training refers to methods used to give new present employees the skills, they needs to perform their job .This necessitated by the fact that employees have had to adapt to rapid technological changes, improved product and service delivery, quality and boost productivity to stay competitive. Employees today need skills in team building, decision making and communication as well as technological and computer skills. Gupta (1992) describes training as any process which the attitude and abilities of the employees to perform specific job are increased .Training is aimed at achieving the learning necessary for improving job performance (Kenny and Reid, 1994). According to Cole (1997) training is any activity that is desired towards the acquisition of specific knowledge and skill for the purpose of an occupation or task. Pigors and Mayors (1997) view training as enhancement of knowledge which acts not only as motivator to the employees but also an opportunities for better job that has more responsibility with good achievement .Training is a planned process to modified attitudes, knowledge or skills, behavior through learning experience to achieve Performance in any activity or range of activity. Its purpose is to develop the individual and satisfy the current and future. Man power needs of the organization must be looked into effective training contributes to organization performance .This was illustrated in a case study how an international companies producing high value added manufactured goods in North America and West Europe.

To succeed and survive an organization needs to reinvent themselves regularly .Learning underpins the effort of management team that does not shy away from challenges of change and pro-actively seeks to find better ways of doing things. Manager needs to support and engage in effective learning process .The routine act ,find out whatwork reflect and refrain retain desirable behavior, needs to permeate all levels of the organization at both individual and the groups level. These does not mean that the learning for the sake of learning or permanently engaging in one experience as the other experience as the others. Experimentations, reflection and learning will assume grater important as the future become more complex and unpredictable. In short the challenge is to strike the right balance between learning and control, change and stability, thought and action. Porter,(1988), points out other key factors for organizations; effective management of customers satisfaction and loyalty, maintain the right skill mix in a rapidly changing environment , enhancing employees flexibility, effective introduction of new routine and technology. According to Kemal el al (2005) training can be formal or informal; which is either the off the job or on the job. In the planning stage of change process managers of change should be able to anticipate the skill that would be required to implement the change and clear plan on training program for the targeted workers. This make up the part that is formal training. Aldrich (1997) however further observes that the organizations are increasingly opting for formal training unstructured, unplanned and easily adopted to situations and individual for keeping the employee current. In the reality, the informal training is nothing more than employees helping each other out sharing information on work related problems with one another. He observers that perhaps the most important of this outcome as that many manufacturers are supportive of what used to be considered “idle chatter”.

Training in organization is perceived as a way to respond to the change early which will propel the organization and gain reward in term of security profit or attainment of these goals of training and department arise because the world changes. These change affect environment which the organization operates, employees are affected by new changes and they must adopt, learn new skill, cope with different pressure acquire, new knowledge and forge new relationships. Training bring additional resources to individual to enable them change and develop change as affected by political, economic, social ,technology, the law and the environment .The business training views, training not as off investments but as continuous investment not only if it is needed to create the skill workforce but never before have the changes been so expensive. The things people do, the way they do them and their importance to business is all changing rapidly .He attributed the change the to vast expansion in the development of application of computer automation in the factory and in the office and disappearance of many traditional traders. In conclusion, He said the environment employees trained is also effective depends on the people wanting to learn, change nature and encourage the desire and will to learn. (Taiichi el al, 2001). Training is the process of increasing the knowledge and the skills of the employees for doing particular job. It’s _he organized activity designed to create a change in the thinking and the behavior of people and enable them to do their jobs in a more effective manner. Industry, it implies importing technical knowledge, manipulative skills, problems solving ability and positive attitude on the other hand development means growth of an individual in all aspect .An organization makes arrangement for the development of its executive or staff as to improve the efficiency of managements. Training is a large job centered while development is career bound. To him the need for training arises because of non availability of trained personnel, suitability of enterprise need and proficiency is latest method ( Baw ley, 2005). According to Lessing (2001) training enables the organization viability and transformation process, the primary goals of most of organizations in their viability is continuously influenced environment pressure. The productivity of the organization like that of Serena Hotel ltd depends on the achievement of these objectives mostly depends on the effectiveness of the human resources that the organization process Employees effectiveness of human can be secured by proper training, training ensures that there are technological advance in order to survive and to be effective then should adopt the latest technology mechanization, computerization and automation. Adoption of latest technology means and methods will not be complete until they are manned by employees processing skills to operate them as much The Nairobi Serena hotel should train employees to enrich them in the areas of changing skills and knowledge from time to time. lzabeln Robinson {2007) Training is specific way in the which learning can take place within the organization. Training can be viewed as the bounded activity focused on equipping employees with the knowledge and the skills necessary to form work roles and responsibilities to the satisfactory standards; ‘According to Manpower service commission (MSC) 1961-62) define training as plan process to modify attitude, knowledge, or skill behavior through the learning experience to achieve performance in activity or range of activities. Its purpose in the work situation is to develop the ability of the individual and satisfy the current and future of the organization.

From that definition it was further illustrated by lona McKee, Area HR manager, Hilton Hotel, Belfast that “we can’t train every one to do every thing .The emphasis is getting to learn within the environment where they work and getting to adopt and apply that knowledge . Every customer has different expectations. There is no way we can train for every eventuality we want our staff to be spontaneous and react and respond to guest expectations” Solomon (2003) – Bothtrainingand development can be concerned with development of knowledge skills and attitude but where training is specifically focused on immediate short term requirement of the job or the task, the concept of the development is to focus on the longer term growth and the development of the individual in a way that fulfill their potential. It is defined as systematic modification of the behavior through learning. This occurs as a result of education, instruction and the planned experienced .Training is a task oriented as it focuses on the specific areas of work .The training standard are derived from the job. Training is provided when there is skill gap between an expected and the actual standards of performance. Training is planned process to modify attitude knowledge or skills behavior through learning experience. It aims at achieving effective performance in an activity or range of activities. Its purpose in work situation is to develop the ability .the individual and to satisfy the current and the future manpower needs of the organization, it must have the purpose. It can be well defined it the learning needs of the organization and the groups and the individual have systematically identified and analyzed (Armstrong 2000) . He further continues by saying that job analysis for training purposes means examining in details of job content, the performance standards required in term of quality and output , the skills know ledge and competence needed to perform the job completely and thus meet performance standards .This involves analyzing what the individual needs to know. It may be technical or commercial knowledge or may be or commercial economic or market environment, Procedures to be •followed or customers, colleagues and subordinates he, she is in contact with and challenge that affects their behavior .It may also refers to the problems that occurs .and how they should be dealt with .From the above emphasis of Armstrong ( 2000) it can b applicable to the hotel industry to involve their employees for training make them productive and be relevant to the organization changes as do occur to the business environment. D Decentro & S Robbin (1998), training is a learning experience in that it seeksrelatively permanent change in an individual that will improve his or her ability to perform on the job .They typically say training can involves the changing of skills 1 knowledge 1 attitude or social behavior .It may mean that changing what the employees know, how they work 1 their altitude toward their work, or their interactions with their co-workers or their supervisor. According to Cole (2002) organization adapting systematic approach to training and development would usually be a bout defining their needs for training. In accordance with a well organized procedure. Such a procedure well entails looking at training need from a number of different perspectives. The organization that is corporate requirement. The department of or function, the job or occupation group and the individual employees. The particular perspective chosen will depend on the circumstance.

For example if the change in the environment of the organization are entering pressure change internally, the corporate perspective needs to be taken .If however the issues is one of the improving skills in particular category of employees then that category of employee under that of occupational group under the focuses for effort. Usually organizations analyses training needs in response to n operational weakness reported in by line managers or to meet the demand of change .The former reason suggested their is something of improving or entertaining guest in Hotel that makes an element in training needs analysis,the later suggest that it can be deployed as an element of planned change in an organization.

2.2.2 Competition
Competition by definition n is an effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms. It refers to rivalry among the firms operating in the market to fill the same customers’ needs. Competition is all about the on lying to out do the other, Webster (2008), she further said thatcompetition is a pillar of capitalism in that in stimulate innovations encourage sufficiency or drive down price ,competition causes commercial firms and private sectors to develop new products. According to Kotl Barkkowit{ 1997) there are further basic types of competition. these are; pure competition where every industry or firm has a similar product ,monopoly competition where only the one firm sell the product, monopolistic competition is where by the many sellers compete with their product on suitable basic and finally, oligopolistic competition which is common industry structure and occurs when a few competition control the majority of industry sales. Competition is a business relation in which two parties offering the same service or proving the same product to the market complete to gain customers. Competitors are those organizations offering the services or products to the same category of the market direct competitors are the most obvious competition competitors, those are other , service providers with the same services to compete for the some customers,{Brown,2008). According to Porter (1992) competition is at the core of the business success or failure of a firm, this mean the sustainability of an organization may base on the competition. it determine if an organization in a certain industry ,innovation, creativity, cohesive , strategy or implementation can contribute to its performance, Intensity of competition in an industry is neither a master of coincidence or bad lack. Instead it is rooted in its underlying economic structure and political competitors. to emphasis that there are several players in Hotel industry where Serena Hotel is trying to out do them . likewise to them, for example ,Sarova hotel, Pan Africa Hotel Jacaranda Hotel all these are providing similar services to the customers and everyone giving each one competition. Competition can either be healthy or unhealthy. Healthy competition has its benefit attributes in any business venture as it leads to improvement of products or services and effective communication .this benefit the consumer. It can also lead one player in such industry like Hotel industry to improve, this is because positive or good competition enables one to admire a competitor’s business success and inspire one to improve its services to customers.

Unhealthy competition puts competitors firms in an industries too much pressure delivery for results which in most cases end up .being disastrous to competing firms. Rivalry amongst established firms has negative attribute, each of the firm wants to outdo. the other through authentically means such as lowering prices beyond acceptable levels, stealing customers from the competitors, negative publicity of the competitors as well as waging cold war’s in the market arena( Porter 1980) . Threats of new entrants: they bring to the industry anew capacity; desire to gain the market share and substantial resources. Threats from substitute product limit the potential return of an industry by placing a ceiling on the pride. Technology is the most significant barriers to competitors. This is when technology differences are considerable and infrastructure in the market does hot exist to make friendly .lack of credible competitor in market spine off new competitors and motivate efficiency for firms to enter the market with better solution portfolio lowering prices or a range of services that is unknown to the market. Consultants act as an advertisement to the competitions that is when a strong nutritional feels all his pride of his own country offers to prevents customers for using or adopting foreign brands .The ability of the customer to push down prices due to their bargaining power can affect the return in business .This result increased competition particularly market players offering the same product and service in relation to the number of customer. (Kenneth London (2006).

Rejan( 2004) also identifies barriers that bars an entry and exist of firms in the market . The government policy is the most significant entry barriers
in any market through its protection of local industry against dumping or unfair foreign industries competitors is often the excuse of the government intentions in the market place. Competition needs mapping in terms of the needs it fills rather than in product term, once the business has been defined, It is necessary to define the served customers groups. The decision should be based on market potential estimate and to company understanding of segments of needs. Regan further noted that ‘competition’ is necessary evil. It is necessary for the health of industry and spur new development, competition being an important force needs to be tracked and analyzed and hence needs for framework for competitors analysis which is critical to understanding for competitor strength and weakness, consumers spending habits have been moved at an advantage because and they can react more quickly to changes in demand and shorter product life circle, (Warthington (1997). According toDrummond (2001} competition intensifies among existing companies when there are numerous or equal balanced companies .When many companies exist the probability of complacency declines and companies must fiercely compete in order to survives .competition is similar. In this case there is no industry leader and companies will compete to distinguish themselves from their rivals. The diversity of competitors intensifies competition. In the industries where companies are of different origin, culture, and goals, competition is likely to be high one firm marketing decision influences its market and is in turn affected by competitors’ decisions. lt is noted that we live in a world of scarcity . This has created a struggle and maximization of little resources available for Hotel industry firms. The scarcity of resources has led to competition in the business environment. This sector of Hotel industry has not left out in the competition .diversity among the competitors may prevent collusion and may encourage a wide variations in the strategies in the industries .the firms within the industry ,growth rate is low firms have to work hard to maintain their marked share and product and services positioning hence ,thus lead to aggressive marketing and price cutting. Many firms are doing a lot of a soul search and many changing in a number of ways, many firm s prefers to own brand rather than physical asset Jew are making towards out sourcing everything making them virtual firms owning few asset and therefore earning extraordinary rates of return to competitive forces to be successful
and remain relevant. A company must provide greater consumer value satisfaction than its competitor so as to gain strategic marketing advantages by positioning their service or product strongly against those of the competitor s. (Langdon, 2007) In summary, according to Michael Porter, a leading theorist of competitive strategies, there are five distinctive forces that influences the extent of firms rivalry in the industry occurs e when firms are numerous and relatively balanced in size, competition for market share tend to be more intense hence slow industry growth, bargaining power of buyers of they poses high ability to force down price sat the expense of high quality goods or services, one product may cut twice as much as similar product on the market, chances are most consumers will avoid to buy the more expensive product or service offered at that price and prefer the competitions service or products instead, this is common where suppliers are few unlike their buyers. Threat of new entrants’ new entrants to an industry typically brings to it. new capacity a desire to gain market share and substantial resources , thereat of substitute ,substitute limits the potential venture of an industry by placing a ceiling an price.

Fig 2.1 Competition Force

Sources: Philip Kotler (1987)

2.2.3 Government Policy
Lyson and Brian (2000) stated that a policy is a body of principles, expressed or implied laid down to direct an enterprise towards its objectives. Policies are mandatory and must be adhered to by all the people in their activities throughout the organization. Cochrun (2004) describes policy as a deliberate plan of action to guide decision and achieve a rational outcome; the term may apply to government, private sector organization and groups or individuals. Government policy refers to the legal framework within a country. It covers the setting of laws or statutes that allow or deny the country, institution, or an organizations freedom to the activities they were set up for. Laws are those that assist the industry to conduct business without restrictions or those laws that protect the
operation of the industry, these include law such as provisions of grand’s by the government, giving concessions etc. Negative laws include/refers to those that places restrictions on the activities of the industry, they include all kind of licenses, import regulation, taxes, minimum wages law. According to Bekowitz regulations exist to companies as well as consumers, much of the regulation form federal and states level has been passed to protect industries from others e.g. cut throat competition which can be destructive. For consumers, the focus of the regulation is to protect them from unfair business practices; the other focus is to protect the interest of the society against unbridled behavior. The Kenya government has different rules in the policy of business the government issues licenses as a means of sourcing potential entrepreneurs in an effort to certain their credibility and abilities. It also controls exports and import trades. The government is also concerned with healthy and safety conditions provided at work places, the minimum wages payable to workers is also a regulation by government in Kenya and lead to formation of recent Commission of Salary and Remuneration .In relation to the business economy in the present World, the Government plays a number of key roles to ensure that there is a level playing field. It also makes sure that rules are followed by acting as referees, rule makers, rule defenders and providers .of essential services. By playing such roles, the government presents itself as controller of economic growth. For a business to be successful, it must prepare to deal with government in all roles to strive to maintain a healthy relationship with it. An applicability and scope of statement describing the policy affects and which actions are impacted by the policy. The applicability and scope may expressly exclude certain people, organization or actions from policy requirements definition providing unambiguous definition for the terms and concerns found in the policy document .Policy addresses the intent of organization whether government, business organization, professions or voluntary, policy is intended to affect the real World by guiding the decisions that are formally written or not, most organizations have accepted and adopted policies provided by the management, by exceptional guideline for routine action , so a new decision is required only in exceptional circumstances and they also lead to a uniform procedure and constancy thought and action. (Birkland 2001). Bercheki (2007) Government can create
obstacles for investors who want to set business either internally or as consequences of other policies decision. The entry barriers have significant impacts upon sustainability of business activities, for example. When the government places a great deal of regulation on particular markets for investors which of course cut into profit and makes it less difficult for a firm to conduct business. It is important that a systematic review of Government laws, regulation and practices be made to eliminate adverse impacts on business. Government is to provide a stable economic and political environment and product regulation of financial system as well as build a social capital and allocate capital efficiently where the economy can reap the maximum benefit and continues to upgrade its competition potential by technological innovation and investments in research developments. This address to the ability to improve the efficiency and productivity of its products and services on continues basis> that is the government can encourage innovation in private sector by private public partnership in research, development and commercialization and provide incentives and fiscal measures for that to happen.(Collar2000). Government is the governing body of state. It can be a system by which a community is governed. The Government or the state sets rules of conduct and enforces them to control and regulate the conduct of people, to protect their property and contractual with an access to security policy, justice, peaceful living and social security. Since the value system of the society keeps on changing. The law also keeps on changing in accordance to the requirements of the society. One to transactions it has commercial law as part of Civil law that deals with the rights and regulations of mercantile property. It includes laws relating to various contracts, partnerships, companies negotiable instruments. Insurance carriage of goods and so on. This ensures that the legal transactions are the only transaction taking place and to protect the consumers, Tulson (2000). In performing its allocation/function Government not only produces public goods but also corrects for a market failure called externalities or spillovers- spillover is a cost or benefit accruing to an individual groups or group from a third party that is external to a market transaction and this can easily be experience between industries such as hotel industries. An example of spill over cost or negative externality s the cost of breathing. Polluted air .an
example of spillover benefit or positive externality the benefit of having every one else in occulted against some diseases, although private negotiation not be a realistic solution to many externality problems, a dearly established property rights may help in other away. The Government has erected a frame work of laws that defines private property and protects it from damage done by other parties inclusive to her people’s interest. Those laws and damage recovery system to which they give raise, permit parties suffering spillover cost to sue for compensation. The central government has played a role in stipulating companies to plan their manpower resource systematically The planning commission , the ministry and the institutes of applied research have made projections from time to time which project manpower demand and supplier for various purposes such ass data categories ,supervisors and managers over a given time span. The government department requires to be supplied with data on their purposes of compliance or competence, to execute certain contracts (Saiyadain, 1996).

According to Joel (2008) legislation is at the heart of effective tobacco control Institutionalized and makes a binding a country’s commitment for tobacco control creates focus activity and regulate private and public in way in which informal or voluntary measures can not the enactment of legislations have it challenges and these include; the lack of human, technical and other capacity infrastructure and resource and continuing of the tobacco industry and its affiliates and allies.

The policy or study may also refer to the process of making important organizational decisions including identification of deferent alternative such as programs or spending priorities and choosing among them on the basic of impact they have. According to Jenkins in policy analysis. A policy is asset of interrelated decisions taken by a political actor or groups of actors concerning the selection of goals and the means of achieving them within specified situation where those decisions should be principles, be within the power of those actors.{Jenkins,2005).

Hotels are one of the service industry in Kenya associated with tourism .they are unique in that out of their services and daily contributions towards the
economic development .The government through the ministry of tourism and development issues policies which guide their operation. Their policies are review periodically to be in lined with changing economic condition to help in creating relationship of the quest from other countries. Changes in political environment often lead to changes in legal environment .in the way existing laws are enforced. It is hard for organization to know all the relevant laws but it is of essence. That they do so because the legal environment sets basic rules on how business can operate in the society. The legal environment may sincerely limit choice in changes in laws and how they interpret regarding such industry.

According to K.K. Dewelt (2007). The state plays a major role in promoting economic development to it citizen through her policy regarding business ownership, highlight that there is hardly any country today which be called a pure free enterprise or capitalize the economy even the economies of U.S.A and the UK which are called capitalistic economies or example of mixed economies. But basically they still free market or capital economies, because even now major roles in their economies are played by private enterprise and capital. From the above the government throughout her policy can affects the industry like Hotel by having low economy, capitalistic system or socialism economy. In the following ways.

Firstly, under capitalization all firms I organization factories and other industries are the property of private individual and firm. The desire for profit is sole consideration with property owners in the use of their property, besides that everybody is free to take up any like production he likes and he free top enter into any contract with other fellow citizens for his profit. In the world of profession locks capitalism is a system of economic organization featured by private ownership and the use for private profit of man-made and nature capital and by the definition of capitalism given by webs Defines the term “Capitalism” or the capitalistic system mean the particular stage in the development of industry and legal institution in which the bulk of the workers find them self-divorced from the ownership of institution of the production in such a way as to pass into the position of wage earners whose substances, security, personal freedom seem dependent on
the will of a relatively small portion of the nation.

Secondly, Socialism as an alternative capitalism has a wider speed .A Swedish King once remarked that to minister, if one is a socialist up to the age of twenty it shows that he has no heart, but if he continues to become a socialist at the age of twenty five he has no head” And the following perspective were bought by Mr. K.K Dewelt for his emphasis. One according to Dickson socialism in an economic organization of the society in which the material mean of production of services or goods are owned by the community and operate by organ representative and responsible to all members of the community being entitled to benefit from the result of such socialized planned production .on the basic of equal right. Two according to Web, socialized industry is one in which the national instrument of production are owned by public authority or voluntary association and operated not with a view to profiting by sale to other people but those whom the authority or voluntary association represents.

From the a above illustration of economy if by any chance, either of them being used by any state as her policy in relation to service industry , it has a great effect to the people who may wish to set Hotel in such country. The quality of services deliveries is becoming major part of Hotel Business practices and vital mechanism used to achieve competitive advantage. Customers generally regard the tangible product of Hotels being largely undifferentiated and this is in turn leave intangible element of service delivery and quality as the only possible ways to differentiate the products offered .To succeed in this industry, professional firms must continually improve their service delivery methods to increase client’s value and profitability and lower cost . This involves in implementing more efficient resourcing and partnering process like creating values with clients. Faced with increasingly sophisticated client’s .market globalization and evolving technology professional services firm must evaluate their business model to ensure that they can deliver the greatest value to every client on every project. However a service firm best respond to overwhelming market forces it must find new ways to deliver its services and it must surpass client’s expectation (Nenin et al 2010).

2.2.4 Information Communication Technology.

ICT is often used as an extend of synonym of IT, but it’s of a more specific term that stresses the role of unified communications and integration of telecoms ( telephone lines and wireless signals),computers as well as necessary enterprises ,software’s ,mindless wire, storage and audio visual systems which enables users to access ,store, transmit and manipulate information. The phrase ICT had been used by academic researchers since 1985, it became popular after it was used in the UK.ICT is now used to refer to the convergence of audiovisual and telephone networks. With computers through single cabling or links systems, there are large economic incentives (large cost savings due to elimination of the telephone network) to merge the audio visual, build management and telephone network with computer network. System using a single unified system of cabling, signal, distribution and management. The term information is used in some cases as a shorter form of Information and telecommunication technology. In the fact information is the expansion of compassion of there and other term.

According to Chaffy (2003) creating an effective technology infrastructure is vital .An effective technology infrastructure technology infrastructure is vital to all firms within an industry infrastructure, directly it affects the quality of service experienced by international and external users of the system in terms of speed and responsiveness s to their request for information . The technology infrastructure refers to the combination of hardware such as computer system with organization. These networks used to link this software or hardware to and software to deliver networks within an organization and also to its partners and customers were viewed. The selection of the software component information is systematic. In this chapter we turn our effect to the computer system both hardware and software and network component s. Understanding the jargon of technology involved in the use and selection of information and communication technology is a major challenge for work environment in a hotel industry which will be directly concerned with the work set up of the organizations.

According to Terry (2007) he says technology, simplifies and reduces task needing manual skills and strengths especially in factories ‘ and either forms of production property applied can increase productivity. The use of reprogram able robots for such task as wielding spray materials huddling and other helps to eliminate dirty or harassers and repetitive work robots and computer aside manufacturing as well as reducing cost of finished quality and the consistency of finished products. The unusual technology requirements enhance problem solving skills and the ability to interpret and thus likely to lead to widening guilt between skilled and non – skilled workers. Routine tasks requiring low levels of skills are disappearing fast for example copy .typist has all but are disappearing from many offices. the availability of word processor flexible prints and photocopier have effectively limited ( copy -typing) computer terminal network and communication equipment have made it possible to combine job which are previously carried out separately, in the process it has also enabled the task to be carried out by lower level staff, a process known as empowering. For example; in consider the range of task now carried out by British talon tale assist and dwelling directly with the coastal by development and having customers .account and services details directly displayed on the screen .the assistant con deal with such matters as settling account quarries imitating a new services required by customer taking order for new equipment changing payments. Methods deleting services no longer required previously such tasks were carried out manually and there were in evitable delay nowadays if it has to be done by one person immediately who is actually physically base in other country.

According to the Gross (2005) he says that some academic reactionary advocates that segmentation can best be accomplishedwhenmacro basedare considered simultaneously with the application or used of the production line. Microsoft can see an example such approach in case of workers new software program development for IBM compatible personal and promotion to be done. The information technology ( IT ) has become the cornerstones of every organization, it is bringing great changes in the management structure and management practices , with introduction of knowledge the management initiative in many organization ,.new collaboration information are
technologies of 1990 such as internet, particularly internet for rapid information access are having major positive impact on knowledge . For upgrading for an organization to acquire standard , it expected to maintain and enhance the existing IT environment established , maintain appropriate standard and migrate towards a corporate wide integrated IT architecture .identify new and emerging technologies to be assimilated integrated into the organization impact competitiveness.

Newark el al. (2000) the main huddle all application of ICT to knowledge management is copying with the fundamental difference between explicit of technology knowledge and ever wider range of highly effective solution are coming to the market, including a new generation of artificial solution. New flavor of document management system and various collaborative technologies such as internet. Successful implementation depend, as always on giving appropriate focus to the non-technical factors, such as human factors, organizational process and culture the disciplinary skill of hybrid term and managers and the already existing knowledge repository of prior learning proving of course that is well structure, accessible and give access to critical expertise Smith, 2001 Computer network provides both larger and smaller business with opportunity to optimize on their investment in hardware and source resources by sharing these resources amongst employees .this becomes even more critical for the small business operating with limited resource and hence face with the need for maximum and efficient used of their ICT based resources . any efficiency or cost saving gain by implementing computer networks adds to raising competitiveness of the business and can be used to create a competitive edge .at most basic level a computer network are to or more computers connected together to share resources which can either be software or hardware based such as printers , scanners, storage devices , internet access ,database, and payroll the connection is through a wired cable or wireless based technology for simple networks which may be confined to a limited geographical areas within the business or office .while more complex networks required additional software can span over lager geographical areas .it is through the computer networks that a business can achieve cost savings in ICT expenditure and add efficiency in the way it delivers service and goods to its clients. There
are different types of networks with the most common types of networks adopted by organizations being what is referred to a local Area Networks (LAN), Wide Area Network (WAN) ,vertical Area Network (VAN) and peer to peer base (LAN) for client /server base (LAN) one computer is used to as a server to manage and control the shared resources which may consist of hardware resources for example printer and the software resources such as file an business application .A client I server base network is that a central location from which recourses ,can be assessed , this also enhanced backup , provides a more manageable points through which to secure the shored resources and easier to administer and support for when owners a rise.

Peer to peer networks, work through a connection between two or more computers which are directly connected to each other using cable allowing for the connected computers to share simple resources such as file. Unlike (LAN) which cover single physical premises, WAN on the other hand , can be used by organization experiences growth to conned together .LANs allowing for offices located in different locations to be looked VPNs provide a secure link between a firms. computer network and the internet which can support employees working remotely. The maturity of computer networks has also witnessed the emergence of intranets which are internal network dedicated to supporting a business enterprise day to day work function and intranet which provides access to a business intranet to stakeholders for example suppliers and customers, who are external to the business,( Jeremy K Kabui,2012)

J.Kabui {2012) further said, large organization with easy asses to mainly tangible an enormous assets at their disposal have the capacity to maintain their competitive edge and capture that elusive and continuously demanding customers. This capability is represented by the knowledge that members of staff bring with them when they join a company acquire and develop through their day to day assignment turning these skills, and experiencesinto a strategies asset for thecompany. Further interaction with business partners who may include suppliers enhances this capability enabling business to generate values from its intellectual capability .within this capability is the process of how an internal and external
source of knowledge to achieve its goal whichconstitute as the field of knowledge management .Knowledge management is the usually presented using the {DIKW) Data Information ,Knowledge”, management and wisdom, statures .the main goal and objectives of knowledge management include making sure that the right information is delivered to the right person at the right time to help them make informed decisions and to improve the quality decision making within the business organization Commonly overlooked facts is that knowledge already exists 2.2.5 Strategy

According to Mary Coulter (2010) strategy is an organization’s goals- directed plans and actions that align (‘match”) its capacities and resources with the opportunities and threats in its environments as oppose to the early effort definition of strategies as integrated decision, action or plans designed to set and achieve organizational goals. From her definition her there are key parts. First of all strategy involved an organization goals. The chosen strategy or strategies should help the organization to achieve their strategy goals. But just deciding on {formulating) a goal directed strategy isn’t enough, strategy also involves goal- directed actions. That is implementing the strategy. In other words, an organization’s strategy involves not only what it want s to do, but also doing it. Finally strategies of organization should be taken into account its key internal strength (capabilities and resources) and external opportunities and threats.

According to Gamble and Thompson (2009) Company’s strategy consist of competitive moves and approaches, management has developed to attract and please customers conduct operations, grows the business and achieve performance objective .Three question must be answered by managers of all types of organization small, family owned business, rapid growing of the entrepreneurial firms, not for-profit organizations and the world leading multinational .Go-operation. These three critical questions are; Where are we now? Where do we want to go?, and how are we going to get there?, by examining the company’s current financial performance and market standing, it’s resources strength and capability, it’s comprehensive weakness; and changing the industry condition that affect the organization ,based on the
question of ” where do we want to go !,Where are we, the answered to the questions,” where do we want to go, leis within the managements vision of the company future direction .once management is in position to determine what changes is needed in its business make up .It’s the management responsibility as well to answer the question II how are we going to get there”. In setting upon .” where do we want to go ,management must draft execute the strategy that move the organization in the intended direction and achieve the target level of the strategic and financial performance. To add more emphasis on those questions the following clarification being made.

Firstly developing clear answer to those questions 11 how are we going to get there is the essence of managing strategically. Rather than relying in the status quo as a roadmap and dealing with new opportunitiesor threats as they emerge managing strategically involves developing the business game plan. Managements game plan must answer several” how” questions, how to out complete rivals how to respond to changing market conditions on, how to manage each functional piece of the business J how to develop important, competencies and capability ,how to take the advantage of the growth, opportunitiesand how to achieve the strategic and financial objectives. Theyfurther emphasis to understand the need to having a sound strategy for achieving the organizational objectives through specificelement that comprise management ‘s answered to the question ” How are we going to get there, define a company’s or organization’s business strategy.Organization’s or the company’s business strategy lays out ” How the management intends to compete in the industry, just like the case of the Serena hotel in the hotel industry may decide manage the functional areas of the business and develop new capabilities and assemble resources to strengthen a firms or organizations prospects for long term success .. There is virtually no area of a company’s operations that is not involved in its business strategy and helps in answered the questions ,” How are we going to get there, Management must have a deliberateplans for addressing such issues as changing the market conditions, features and attribute to be included in the firms or company ‘s produce or services ,pricing of the firm’s or the company’s product or services , reactions to the offensive moves by rivals sellers, allocation of the firm’s or organization financial
resources, development of the internalcompetencies , capabilities and resources, strength, acquisitions of new physical asset and resources etc. Of course the business strategy include the planning for areas not included in the above list.

Secondly the important thing to recognize is that every activity involved in delivery a business’s product or services should be guided by the strategy thinking, there is no single activity process, department or functional areas that should be left to chances. Another perspective they use to emphasis the sound strategy for achieving the organizational objectives; competitive strategy and advantage over rivals. These are the most aspect of a company’s business strategy is its approach to competing in the market place. It is imperative that a company’s strategy strengthen its long term competitive position and allow it to gain a competitive edge over rivals. For example whole food market- has attempted to gain a competitive advantage over rivals by creating the unique shopping experience for consumers ,the company’s merchandise selection , store ‘ location , store lay out and out outstanding customers services are deliberate actions and policies meant to differentiate. Serena hotel from the competitive natural and organic food business firms. A creative distinctive strategy such as that used by Serena hotel is a company’s most reliable ticket for developing. A sustainable competitive advantages allows company’s or organization to attract more sufficiently large numbers of buyers or customers who has a lasting preference a for its products or services over those offered by rivals. This enduring demand for a company’s product or services is the key the company’s ability to earn ongoing above average profit. Hence, there are fourproven strategic approaches to settling a company apart from rivals and winning a sustainablecompetitive advantages, developing a cost based advantages ,focusing on a narrow market niche within a n industry and developing unmatched resources ,strength and competitive capabilities,

K. Scholar & Whittington (2008) explaining the corporate strategy, define strategy as it is the direction and the scope of the organization over the long term which achieve advantage in a changing the environment through
its configuration of the resources and its competitive with the aim of fulfilling stakeholders expectations. But the overall definition of the strategy required, the most basic might be the long term direction of an organization .However by emphasis of further definition are as follows:-

First Strategy can be seen as search for the strategy fit with business environment thus could require major resources changes from an ‘Organization in the future for examples ,the decision to expand the geographically may have significant , implication in term of the need to build and support a new customer base .It is important to achieve the correct positioning of the organization for example in terms of the extent to which product or services meet clearly identified market needs, this must take the form of small business. Trying to find a particular niche in market or multinational, corporation seeking to buy up businesses that have already found successful market positions.

Secondly Strategy can also be seen as creating the opportunity by building on an organization’s resources and competence, this is called the resources based view of strategy, which is concerned with exploiting the strategy capability of an organization in term of the resources and competence ,to provide competitive advantages and or yield new opportunities ,for example a large multinational corporation may force its strategy on those business with strong brand .A small business might try to change the rules of the game in its market to suit its own capabilities sector .The strategy of the organization is affected not only by environmental forces and strategy capability but also the value and expectations of those who have power in and around the organization .

Third whether an organization is expansionist or more concerned with consolidation, or where boundaries are drawn for the organization’s activities may say much about the values and the attitude of those who influence the strategy- the stakeholders of organization. And the final emphasis of the strategy is strategies decision which is concerned with the scope of an organization activities for examples, does (and should) the organization concentrate on one area of activity or should it has many! The
issues of scope of activity is fundamental to strategy because it concerns the way in which those responsible for managing the organization conceive the organization boundaries. This could include importance decisions about product range or geographical coverage. Business managers evaluate and chosestrategies that may think will make their business successful. Business become successful because they poses advantage relative to their competitors .The two most prominent sources of competitive advantages can be found in the business; cost structures and ability to differentiate the business from the competitor .Businessthat create competitive advantage from one or from both of these source usually experience above the average profit ability withintheir industry .The business that lack ;costdifferentiation , advantage usually experience the average below the average profit ability. Tow well recognize studies found that business that do not have either form of competitive advantages perform poorest among their peers, while the business that poses both forms of competitive advantage enjoy high level of profitability within the industry. Hence, the managers were advised to evaluate and choose the strategies that emphasized one type of competitive advantage.

Dr. Mugo (2012) strategy- formation is a common practice in organization throughout the world as an approach to overcoming obstacles along the organization’s growth part. Management research has concluded that the strategy formation process adopted may be the most important factor that determines the ability a firm to realize its strategic intent. Moreover the strategic formation process that a firm chooses may have profound impact on the firm’s performance. Broadly speaking, there are two approaches of strategy- formation that result in realization of two types of strategies i.e. emergent and formal strategy. Emergent strategies that emerge informally as an organization responds to day to day to involving situation over period of time and Informal strategy that deliberately formulated through rational and comprehensive analysis of the firm and its environment in the real world of strategies .no strategy is purely emergent or pure formal but fall at various point between these two extreme of continuum, A strong case for emergent strategies is made in the article “crafting ” strategy by Henry Mitzeberge.The article starts by proposing that good
strategist should be one who learns and recognizes unfolding pattern that later become strategies. This strategy of the real world finds strategies on the pattern that sometimes form in advertently in the day -to- day activities of the firm. The process of making the strategies foster learning given that people are allowed to take independent action. As people take action, they make errors and as they look solution S1 they may stumble upon some innovation. In the end workers are encouraged and supported to become agents of strategic change.

Think about what your strategy is, your distinctive approach to the market place, leveraging your (U.S.P). Strategy” is a much abused word and has been taken to mean too many things .90% of companies don’t have real strategy, but instead more a “to do list “wishful operational plan. Creating a strategy involves three steps ; one Diagnosis in essence I figuring out what is going on in your market , including the competition, what do your customer wants, what do your non customer wants I what are the financial and operational implications.

Do the hard analysis crunch the number s and add in dash of creativity in out of the box thinking two set the guiding policy, creating the direction the organization will be going, then three roll out the action plans, the nitty gritty details of who is going to do, what details of who is going to do, what and when .in his conclusion strategy is about focus and choice. What are the three things you need to do that are going to make the biggest difference in your business (D .Abbolt (2012)

2.3 critical Review literatures
The review of existing sources indicate that staff training ,competition ,government policy, information and communication technology and strategy have great effect the service delivery in hotel industry and the authors such as Lyson Brian ,Kemal el al others have done commendable work to determine the challenges of hotel industry. Even through there is still more to be done to fill the gaps. The researchers shows that lack of staff training , staff competition , Government policy , information and communication technology and strategy put some challenges in service
delivery on Hotel industry .According to many researchers training concern with activity that directed toward s the acquisition of specific skills that are required for the purpose of the occupation ,it enhance knowledge and skills which acts not only a motivator to the employees but also an opportunity for the better job that has more responsibility and authority and the needs for training occurs when people lack enough skills which keeps them update and thus acquiring professional qualifications in the management. From various researchers training is to match the service delivery of an organization towards customers in a changing environment together with improvements of customers satisfaction but the researchers from previous literature failed to consider uncontrollability of outsider environment a business operate and customers requirement as part of challenges. In the previous studies shows that competition definitely is a challenge and have many positive effects service delivery on Hotel industry. The study intended to establish the challenges pose by competition is that it takes many dimensions as the researches in literature review for example some of them indicate it as an act of out doing the competition , or have competitive advantage or according to Webster (2008) further said , competition is a pillar of capitalization in that it may stimulate innovations, encourage efficiency or drive down prices competition causes commercial firms and private sector to develop new product or service ,but the researchers failed to give which dimension of competition is specifically preferable to Hotel industry and which one can work well under certain business environment .

Government policy in concerning the business policy in relation of the issuance of license as a means of sourcing potentiality of the organization in effort to certain their credibility and ability to operate and health and safety provided at workplace. It is a positive effect that the study establish concerning the government policy, but the challenge it pose to the industry is that its negative impact to organization are not being looked into, as it is a legal framework within a county .it covers the setting of laws or status that allows or deny the county institution or organization freedom to carry out their activity they were set up for. Law that give restriction on the activities of the industries , Hotel industries may find
it difficult to operate freely due to government policy extend its challenge when the organization try match its service or products comes to competition and executions but the study failed to the ways in which industries e.g. Hotel industries can solve such problem.

As the business owners or managers , you might want to consider the day- to-day business process that could be enhanced by a computer network for example, sharing and providing access to information from central location could help to avoid duplication and provides faster responses to queries ,it is important to calculated to potential savings the computer network present the business the maturity of wireless -based network technology as evidence in their growing adoption present a firms or organization with an option that is quicker and easier to implement ,manage and scale up as the needs of the business change .Improved efficiency and better communication within and outside the business are benefit, that computer network make possible .Already the ability to work remotely increases the flexibility of the employees to perform tasks out the physical confines of a business and increase productivity without incurring extra cost as traveling to and from their places of work. From the above we find that in relation to the study there is much gain with ICT by organization such as hotels. The challenge is that not all customers find ICT friendly and the study failed to convince the researcher that, the use of social network, internet advertise is not selective and discrimitor (J.K. Kabui, 2012)

Mugo Whatever the strategy of an organization it must meet some certain minimum criteria for it to qualify as a good strategy. First a company/organization within any industry as in the case of this research study which is directed to hotel industry, strategy is a way through a challenge, an approach an approach to overcoming an obstacle or a response to a challenge, and this is necessary to this study for the Serena hotel to employ good strategies internally and externally through emergent and formal, the actual stumbling block must be very well defined. Second, a good strategy does not mistake goals for strategy, there must be an identifiable key strength, and the business organization is banking on or a change in the industry that is expected to open up new opportunities. A good strategy
focuses energy and resources on a limited number of key objectives whose achievement lead to a number of favorable outcomes, the objective and outcomes should be relevant to the stated language in the challenge. It comprises acquired knowledge and formulated actions that managers use to beat the market. It clearly spells out the company’s or organization source of competition, advantages, comprising human capital enterprise culture, intellectual property, technology knowledge, corporate reputation and networks .It also segments the market with surgical precision to the lowest possible level. Describing and knowing each market segments inside out is one of the most sensible things an organization or company should be ready to relocate resources within the market segment as conditions in individual segments changes.

Finally a good strategy should accommodate emergent and formal benefit or challenges that would not have been envisaged. The strategy should provide a guideline on how to analyze, categories ( whatever implementable or not ) and documents the issues .From the forgoing ,it is clear that a healthy balance formal component of the firms strategy combines commitment with flexible, direction with opportunism and fixed programming with ongoing learning. Having managed to understand the benefit or positive effect of strategy, if the firm within any industry as in the case of this research study of hotel should have and adapt strategy as a way of managing its business operations.

2.5 Conceptual Framework
Fig 2.1 Conceptual frame

Independent VariableDependent

29999993

2.5.1 Staff Training,

Training is the process of equipping the employees with better and more knowledge and skills on how conduct their job tasks functions more
efficiency and more effectively Training leads to building of employees confidence in the their respective job tasks and employees tend to feel more empowered and recognized when undertaking their job s . This greatly determines the level of job satisfaction of the employees for any organization to operate within a certain state.

2.5.2Competition

Competition affects the service delivery in the hotel industry tremendously .it refers to the alternative firms that could provide a service or products to services to satisfied market needs, the stiffer the competitor ,the lowers the business, which in turn lower the output, market competition is a situation where by one type of firm has more than one rival. The rival here is seen as the competitor in the market forces where by each business types in the entrepreneurial venture must have a rival

2.5.3Government policy.

Government policy can be a restricted or some legal formalities of placed to be met for any group or individual be it foreigners or citizen to comply with before or in the course of running a certain business. And this may impose some difficulties or favour some business as such it has some effects to the Hotel industry and needs to be considered at every level for any organization to operate within a certain state.

2.5.4 Information Communication and Technology.

It refers to using electronics means in communication. A combination of information technology innovations and changing domestic and global environment makes the role of information technology in business even more important than few years ago. The internet revolution is not something that happened and has just burst, but instead has turned out with significant business implications such as easing communication, advertising etc. between the business and its clients.

2.5.4 Strategy

It is a mean by which long term objectives will be achieved. Business strategy may be include ; acquisition ,product development ,market penetration ,consistent and prioritized .it is potential actions that require top management decisionand large amount of firm’s resources, In addition ,strategy affects an organization’s long term prosperity, typically for at least five years and thus are future- oriented. Strategies have multifunctional or multidivisional consequences and require consideration of both external factors and internal factors facing the firm.

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1Introduction.

This chapter describes the method and procedures that were used to carry out the study. It represents the study design, target population, data collection, instruments and procedure and data analysis techniques

3.2Research Design
Descriptive research design was used.it involves the describing the current state of affairs by use of data collected through questionnaires and interviews .Descriptive research design is quantitative whose main purpose is descriptive of the state of affair as it exists. Descriptive study was carefully designed to ensure complete description of the situation, making that there is minimum bias in the collection of data to reduce the error in the interpreting the data collected .According to Mugenda and Mugenda descriptive research seeks to establish factors or challenges associated with certain occurrences outcome, conditions or type of behaviors. 3.3Target Population

The target population was taken from Serena Hotel located along Kenyatta Avenue in Nairobi and consists of a distinct group such as top level and
lower level management .thus according to Mugenda and Mugenda a study population is those items that the researchers focuses on in conducting a study. The study population is 60 employees as show on the table.

Population categories

Target Population

Percentage

Top level management

10

16.7

Middle level management

15

25

Lower level management

35

58.33

Total

60

100%

Source Author (2013)

3.4 Sample Design.

The researchers used census sampling procedure to select the sample that is entire population. Was made core in order to ensure that observation in each group comprised of homogenous elements. This procedure ensured that various strata have equal chances to be selected, the top management includes 10 of the total, and the middle level management was 15 while the other members of staff were 35. Table 3.4.2

Production Categories

Target Population

Sample Size

Sample Percentage

Top level management

10

7

11.67

Middle level management

15

9

15.00

Lower level management

35

24

40.00

Total

60

40

66.67

3.5 Data Collection Methods
The data used both primary and secondary sources of data. The primary data was collected using questionnaires, while secondary data supplements. The secondary data includes reports newspapers. The researchers used questionnaires to collect data from respondent. The questions asked include closed (requiring YES or NO)-answers, open (requiring short essay answer) and partly open (requiring Yes or No and some explanation).This method saved time

3.5.1 Validity and Reliability
To ensure validity and reliability of data collections instrument a pivot study was carried out here by questionnaire were pre-tested by issuing the 5% of the population size to prove whether they understand and can answer the question .The population used for pilot testing was however not part of the sample .Before analysis, all the questionnaires were adequately checked for verification .The data was analyzed using qualitative and quantities technique. This involve creating descriptive statistics namely percentage and frequency. The data was presented by using tables, documentary sourcing were employed where by the researcher used previous journals or records to support the data received from questionnaire and information’s received from
interview. The data was presented by using tables documentary source were employed whereby the researcher used previous document or records to support the Data received from questioners and information received from intervene.

3.6 Data Analysis Method.
According to Bialy (1984), data analysis procedure includes the process of packaging the collected information putting in order and structuring its main components in a way that the finding can be easily and effectively communicated. After the field work before analysis all questionnaire were adequately checked for reliability and verification .Editing, coding, and tabulation were then carried out. The data was analysis using qualitative and quantitative techniques. Qualitative methods involve contents analysis and evaluation of text material. A quantitative method involves numerical analysis of the data.

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