Reference no: EM133583105

Case: Profit? Growth? Survival? Service? Customers? Environment?
Six hospitality management students are having a discussion at the Student Center about the primary goal of hospitality organizations.

Jim said emphatically, "Large hospitality corporations are in business to make as much money as they can. No matter if it's food, lodging, or gaming, profit maximization is their primary goal, and everything else is secondary. Businesses exist to make a profit."

Will agreed, up to a point: "If the hospitality organization is a public corporation, profits are a necessity, but the primary goal of any business is to grow. No business wants to stay small and unimportant. Company officials and stockholders want growth, for the feeling of progress and accomplishment it brings and for the profits that will eventually accompany growth."

Jane said, "There's something to what you both say. Any company needs profits, and any company would like to grow. But survival is the primary goal, because without it you can't have profit or growth."

Sally said, "Any hospitality organization's goal had better be to give good guest service. If the organization achieves that goal, all the rest will fall into place. If they don't, they have no chance anyway."

Spiro said, "My dad owns a restaurant, and he agrees with my professor who said the main goal of any business is to get and keep customers. No customers, no nothing. I agree with my dad."

Betty said, "No matter what you learned in class, you are all kidding yourselves. Primary goals are just for looks anyway. No matter how specific an organization's goals, no matter how carefully it plans, no matter how hard it works to meet those goals, the environment within which the organization markets its product or service will determine the organization's destiny. Organizations react to environmental forces, regardless of goals. To succeed, a business organization doesn't need to establish goals; it needs to be lucky enough to be in the right place at the right time and take advantage of the opportunities presented to it."

Question 1: What do you think the CEO would say? The employees? The guests?
Question 2: Where do you stand on the issue? (Or do you have an even different way view?)