Strategic analysis of the hospitality industry: challenges Covid-19

Issue: № 8, 2020

Doi: https://doi.org/10.37634/efp.2020.8.3

The paper considers the features of determining the development strategies and activities of the enterprise in the hospitality industry. A SWOT table for selecting the basic strategy of a restaurant enterprise is constructed. it consists of three basic strategies with corresponding measures: A – strategy for increasing production; B – strategy for stabilizing production; and C – strategy for reducing production. It is proved that under the conditions of adaptive quarantine, the restaurant should choose the strategy C6 (if there are opportunities) and C12 (if there are only threats). It is proposed to choose the following stabilization measures for strategy C6: ensuring the reduction of fixed costs, the use of reserves; C12-lease of current assets; optimization of personnel for qualification; removal of inefficient equipment. The factors influencing the efficiency of cost management of restaurant enterprises are determined. Recommended organizational and economic measures of strategic cost management of restaurant enterprises are designed to improve the result of their activities and achieve competitive advantages. The development of strategic cost management mechanisms is based on the concept of strategic cost chains. Appropriate methods of strategic cost management are proposed, taking into account the stages of the product life cycle: cost control in the process of creating products based on business process reengineering; optimization of the product range, cost management based on the composition of consumers according to the criteria of profitability; cost management based on improving relations with suppliers; cost management and establishment of discount cards by establishing effective relationships with customers based on product price regulations; cost management based on market segmentation and optimization of the sales channel. The prospects for further research are the creation of scenarios for the development of enterprises with the aim of gradually switching to a strategy of sustainable production.

Keywords : strategy, SWOT analysis, hospitality industry, restaurant management, product lifecycle, competitive advantage

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