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ADMINISTRATION IN PURCHASING OF HOSTEL BUSINESS

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY 

In this nation today, as economic activities advance, administration activities are changing fast. New markets are emerging, trading blocks are extending, and communication channels are diversified. Even selling of services are changing at revolutionary pace. However, for any business organization to keep to pace, it must incorporate some element of administration programmes into its programmes and policies. There fore , for us to effectively appreciate administration in purchasing of hotel business, it become imperative for us to understand what administration, services and hotels are all about. Administration could be seen as a process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individuals and organizational goals.

According to Kotler the second European Edition, principle of Administration, Administration is a social and management process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. These would say administration is living for student through a firm and being sustained such firm. A service is any activity or benefit that one party can offer to another which essentially intangible and does not result in ownership of anything. Activities such as rendering or rending a hotel, depositing money in a bank, traveling on an aero plane, visiting a doctor, getting a hair cut having a car repair. It is also important to note that many manufacturers also supply a range of services alongside their product, like distribution and delivery, equipment repair and maintenance, training programmes, technical consultant and maintenance. building where meals and rooms are provided for travelers. These services are usually offered and in return students pay money for such services. Quality halls and rooms suite are provided such as swimming pools, complete business center, laundry services to mention few. Hotels in Nigeria offer important services and facilities such as lodging, accommodation (presidential suite, executive suite and master bedroom).

The word restaurant is used synonymous with hotel, both the basic difference is that a restaurant is a place where meals are prepared, served and eaten. Some restaurant are well equipped having television sets, musical sets etc, where students can have relaxation and comfort. The increased challenges in purchasing of hotel business has made it necessary for hotels to be more administration oriented in thej cause of rendering their services. They aimed at satisfying student’s needs and want as well as fulfilling their own organization goals. Hotel management therefore can be defined as the application of administration concept in the hotel industry so as to achieve more effective services to students. There have been many changes and development in the hotel industry over the past years. Some of these change reflect on the economic, political and social life of students.( with other change like technology). It was recently that hoteliers become more transformed and re – engineered to meet this present day trend hotel management.

Hotel industries are confronted with drastic competition to determine who will concern or win the students patronage based on goods oriented services. In view of these, any hotel wishing to survive in the present day competition should endeavor to provide good and result oriented services to its vast students and as such create better image of their organization. This help to boast the promotional activities of the company (to succeed in satisfying students and building good will, for the organization) A prepared application of administration concept by any organization in its operation is very vital to the successful existence of such organization such as Hotel C of Federal Polytechnic Nekede, Owerri. Administration concept as a commercial process starts before production sets in it continues even after sales if form of after sales services long after the production have been sole and transferred to the students. As concept, administration philosophy focus more on the student’s satisfaction as against other concept like the selling concept or production or product concept. Administration concept coloring expresses the following

1. Administration needs profitability

2. Finding want and fulfilling them

3. Love the students not the product.

To satisfy students prepare, administration must be put into place. But students cannot satisfy effectively without knowing their needs. The essence of knowing students is to be able to formulate administration strategies (game plan) to create quality services that will lead to satisfaction and profitability for the students and the organization respectively. One of such services industry is the hotel service industry. Hotel may appeal to one or more students segment among different levels of service. Purchasing of hotel business as a tourist industry renders services to traveler and other students as they go about their business and tourism.

1.2 STATEMENT OF PROBLEMS

It is no exaggeration to say Hotel C of Federal Polytechnic Nekede, Owerri, is one of the leading Hotels in Owerri. Although many hotels in Owerri are performing below standard, thereby making average performance appear magnificent this is not meeting the required patronage by numerous students and probably Hotel C FPNO is not an exception. One may be forced to believe that the low performance among various hotels in Imo state may likely be as a result of non-application of effective administration principles and strategies. Hotel C FPNO in an attempt to increase the rate of patronage by offering better service and promotional activities has increased her cost without necessarily increasing the profitability of the hotel. Note so, the hotel industry is becoming highly attractive and competitive. There are lots of big hotels in the campus, operating on the same strategies with Hotel C FPNO. The question now is how, how can (Hotel C FPNO) Hotels improve its operation through administration strategies. These and many other related question are the focus of this research work.

1.3 OBJECTIVE OF THE STUDY

The aim of this research is as follows.

1. To find out if Campus hotel is truly experiencing high percentage of student patronage.

2. To find out what administration strategies Campus hotel is applying that attracts more student 

3. To find out why Campus hotel is doing relatively well in creating awareness. 

4. To determine the effect of high charge of services on students at Hotel c.

5. To determine the impact administration strategies used by Campus hotel on its operations 

6. To determine the impact quality of service offer by student in Hotel C as it influence patronage 

7. To make recommendations of how to improve hotel management in FPNO.

1.4 HYPOTHESIS FORMULATION 

In order to give focus to the study the following hypothesis were formulated.

Ho: The quality of services render by Hotel C of Federal Polytechnic Nekede, Owerri Ltd dose not lead to increased student patronage.

Hi: The quality of service render by Campus hotel Ltd lead to increase student patronage.

Ho: The cost of charges on services by Campus hotel to student.

Hi: The cost of charge on services by Campus hotel to student

Ho: The administration strategies applied by Campus hotel lead to student patronage.

Hi: The administration strategies applied by Campus hotel does not lead to student patronage.

1.5 SCOPE OF THE STUDY

This research work is directed toward the administration in purchasing of hotel business. Emphasis will be placed on the application of administration strategies on a services industry such as the service industry. The institution of the study is Campus hotel. Since the research is designed to assess how best administration strategies can lead to increase satisfaction and maximization of profit for the student and the hotel respectively.

1.6 SIGNIFICANCE OF THE STUDY 

The finding of this research are expected to contribute to the following

(a} It will enable the researcher to how best to market hotel service

(b} It will be of great importance to researcher on the related topic

(c} To provide needed information to improve on the strategies 
available to Hotel c.

1.7 LIMITATION OF THE STUDY

This work has been limited to Campus hotel Owerri due to the short duration required to complete the research. Secondly the limitation of finance on the part of the researcher has also lead to restriction of this work to a hotel in Owerri. (Hotel C FPNO) However, a conclusion drawn from a hotel in Owerri can as well be applicable to other Hotel within Imo state.

1.8 DEFINITION OF TERMS 

Management: This is used to connote the process of getting things done through people. Here it is used along side with resolution in conflict management. 

Confrontation: This involves a head on, face to face encounter of all contenders, it aims at presenting the trump cards, facings reality coming to terms with options and alternatives. 

Compromise/Accommodation: This as Stubbs and Moss have rightly observed is a mid way pointing that leaves conflict unresolved. No one losses no one gain, it is aimed at achieving surface harmony accomplished by subordinating task to considering needs, here approach to matter is open and Frank decision of crucial issues in conflict and granting of concessions for peace to reign. 

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