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CHAPTER 1: INTRODUCTION
1.1 Background
To survive in a competitive industry and to gain more profit, a reasonable competitive strategy is necessary. In the 1990s, International Hotel Association has suggested that the most direct model of competition is the price competition, of which the essential is cost competition. Advanced cost management could enhance the core 代写留学生论文competitiveness for a hotel and gain higher profit through its working. There are numerous articles about cost management in the manufacturing industry, but few concerning the application in service industries especially in the catering industry. Then, to review the cost management techniques and apply them in the catering industry, an understanding of their best practice and best fit, and their impacts on profit gaining is necessary.
Since the 1970s, the Catering industry is experiencing an incremental development， coordinating with the rapid spread of tourism industry and the economic growth. However, after two years of the global financial crisis from the end of 2007, every industry has been influenced, especially the catering industry, of which the impact has spread and the trend is incrementally serious (CHA, 2009). The competition in the catering industry seems to be white-hot and survival in the industry seems to be tougher.
According to UNWTO (2008), China is the fourth-most popular tourist destination at present, the number of tourists has increased from 8 to 48 million in the last 10 years. A conservative estimate, China may surpass France as the top tourist destination by 2015 according to a senior official in the United Nations World Tourism Organization (UNWTO, 2008). The World Travel and Tourism Council (WTTC) reports that over the next ten years the global tourism industry will enjoy a rise in tourism expenditure from US$4.21 trillion to US$8.61 trillion, an expansion of its share of global GDP (Gross Domestic Product) from 3.6% to 3.8%, and an increase in job opportunities, from 198 to 250 million positions https://www.51lunwen.org/StudentPapers.htmladded. Therefore, this indicates that the tourism industry will play an important role in future global economic development. Obviously, increasing enterprises and groups eager to enter the industry to share the big cake will lead to much more intensive competition, especially in China.
1.2 Motivation
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