From Hotel Fails to Hospitality Hacks: How to Merge and Ally in Southeast Asia Without Losing Your Mind (or Money)
Achieving Success in Mergers and Alliances in the Southeast Asian Hospitality Industry: A Balanced Scorecard Approach
Mergers and alliances have become a popular strategy in the hospitality industry in Southeast Asia, but not all have been successful. According to a study by Kim and Lee (2019), the majority of hospitality industry mergers and acquisitions fail to achieve their intended goals. One approach to increasing the chances of success is to use a balanced scorecard framework. The balanced scorecard is a performance management tool that helps organizations align their strategies with their objectives and monitor progress towards their goals.
In the context of mergers and alliances in the Southeast Asian hospitality industry, a balanced scorecard approach can help identify the key performance indicators (KPIs) that are most important for achieving success. These KPIs may include financial metrics, such as revenue growth and profitability, as well as operational metrics, such as employee satisfaction and guest experience.
For example, in a study by Ali and Yaqoob (2021), the authors found that employee satisfaction and customer satisfaction were key factors in the success of mergers and acquisitions in the hospitality industry. By measuring these metrics and setting targets for improvement, organizations can ensure that they are on track to achieve their goals.
Another important aspect of using a balanced scorecard in mergers and alliances is communication. Effective communication is essential for ensuring that all stakeholders are aligned with the organization's objectives and understand their role in achieving them. This is particularly important in the context of mergers and alliances, where there may be cultural and organizational differences that need to be addressed.
In conclusion, using a balanced scorecard approach can increase the chances of success in mergers and alliances in the Southeast Asian hospitality industry. By identifying the most important KPIs, setting targets for improvement, and ensuring effective communication, organizations can achieve their objectives and create value for their stakeholders.
References:
Ali, F., & Yaqoob, S. (2021). The Role of Employee and Customer Satisfaction in Mergers and Acquisitions Success in the Hospitality Industry. Journal of Hospitality and Tourism Management, 46, 1-8.
Kim, Y., & Lee, S. (2019). Post-merger Performance in the Hotel Industry: An Empirical Analysis of US-based Firms. Journal of Hospitality and Tourism Management, 41, 1-9.