The effects of Porter’s generic strategies on performance of hotels in Kumasi: moderation role of managerial capabilities

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Date
JULY, 2015
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Abstract
It was reported in 2013 that the total contribution of the industry to the global economy was 6,990.3 billion dollars accounting for 9.5% of the world’s GDP. While the global economy grew by 2% in 2013, the tourism industry grew by 3% creating about 4.7 million jobs (World tourism and travel council, 2014) . The euro monitor international considers the Tourism industry as the world’s largest industry, which contributes to 11.5% of the world’s GDP and also employs 12.5% of the labour in the world. Within the past few years there have been massive changes in the hotel industry in Kumasi and Ghana as a whole. New hotels are being established and the already existing ones are being renovated and upgraded to higher ranks. Competition has also intensified to the extent that hoteliers are doing everything possible to outperform others such as poaching the employee of competitors. As a result this particular topic; the effects of porter’s generic strategies on performance of hotels in Kumasi: moderation role of managerial capabilities was chosen to help understand the motivation behind this rapidly changing trend. The objectives of the study were to; examine the effects of cost leadership strategy, differentiation strategy and Managerial Capabilities on performance of hotels in Kumasi. The Data was collected from a sample size of hundred respondents from Hotels in Kumasi through questionnaires. The primary data was then analysed with SPSS. The study adopted quantitative approach to reveal that cost leadership and differentiation strategies had positive impacts on the performance of hotels in the Kumasi even though differentiation strategy was most significant and that, managerial capabilities greatly moderated the relation between the independent variables and performance. These recommendations are as follows; first subsequent studies should include many other relevant hotels to widen the sample size, hotels should adopt the best strategies that best fit their company to enhance performance, lastly managers must ensure that employees are satisfied so as to give out their best to satisfy customers.
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A thesis submitted to the Department of Marketing and Corporate Strategy, Kwame Nkrumah University of Science and Technology (KNUST) Business School in partial fulfillment of the requirements for the award of Master of Business Administration (Strategic Management and Consulting Option).
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