MARKET ORIENTATION WITH RESPECT TO WABESHEBELE HOTEL

TABLE OF CONTENTS
Page 1. Introduction .. 2. Demography of Wabe Shebele Hotel 3. Theoretical Overview Market orientation . 3.1 Various Company Orientations towards Marketing 3.2 Benefits of a true customer focus orientation 3.2.1 Customer satisfaction.6 3.2.2 Customer Retention ...6 3.2.3 Customer loyalty..7 3.3 Requirements of a true customer focus orientation . 3.3.1 3.3.2 3.3.3 7 Market Segmentation ... 7 Target Marketing .. 8 Market Positioning ... 8 12 15 16 16 2 2 4 4

4. Practical Adherence of Wabe Shebele Hotel to Marketing Orientation. 9 4.1 Analysis of questionnaire one.. 4.2 Analysis of questionnaire two.. 5. Conclusion. 6. Recommendation. References Annexes

1. INTRODUCTION
In current global business world that operates in the atmosphere of constant and drastic change, business leaders have to be aware of and understand customers', competitors' and operating environment's change so that the business will survive long, be competitive and profitable in the market. To achieve this, a business organization has to develop a strong market orientation that is seen in all its functions and employees. (Best: 2009) The purpose of this paper is to look at the fundamental components of market orientation and audit the practical application of them in the Wabe Shebelle Hotel. We have adopted illustrating the subject matter of the paper according to the following procedure. Definition of Market Orientation and its components Various orientations a company can display towards marketing Illustrating benefits & requirements of a true customer focus orientation. data Collection from the employees of Wabe Shebelle hotel through questionnaire and provide analysis on it, and Providing management report on the findings and recommendation.

2. Demography of Wabe Shebele Hotel Wabe Shebelle Hotel was built and established by five princes of the former royal families of His Imperial Majesty Haile Selassie and started its operation in 1968. For the last 41 years of its life span, it had undergone through three different administrative regimes namely, Imperial period, Socialist period and Federal democratic republic period.

During the Dergue regime (the military government that overthrew the monarchy) the Wabe Shebelle Hotel was nationalized and structured under the auspicious of National Hotels Corporation. Afterwards, it was established as an Enterprise in 1992 in accordance with public enterprise proclamation No 25/1992. The Enterprise owns five branch hotels which most of them are located to some of Ethiopias leading tourist attractions area. These are: Addis Ababa Wabe Shebelle hotel Sodere Resort hotel Langano Resort hotel Wondo Genet Resort hotel Addis Ababa

117 K.M away from Addis Ababa 97 K.M away from Addis Ababa 267 K.M away from Addis Ababa

Bale Goba Wabe Shebelle hotel450 K.M away from Addis Ababa

The enterprise is operating in a hotel industry and administered by Board of Directors and its management. Our study focuses on Addis Ababa Wabe Shebelle Hotel, which is located in the centre of Addis Ababa. The hotel has a total number of 249 permanent employees out of which 182 are operational and 67 are supporting staff. The hotel offers the following services: 110 modern spacious rooms with commanding views. 24 hours satellite TV service with different channels. 24 hours room service. Well furnished restaurants featuring national and international cuisines, bar and service halls. Banking, mail service, ticket office, internet service and other facilities.

3. THEORETICAL OVERVIEW OF MARKET ORIENTATION

3.1 Various Company Orientations towards Marketing There are two different approaches towards the essence of marketing orientation. One deals with marketing orientation as basically a company's philosophy/culture and the other deals with it as a company's behaviour. (Avlonitis and Gounaris, 1995) The first approach defines marketing orientation "as a culture that influences how employees think and act."(Dobni and Luffman, 2000: 895). The marketing orientation that requires changes of the company's prevailing set of beliefs and attitudes is the market orientation that represents a specific culture. (Avlonitis and Gounaris, 1995) The second approach that states marketing orientation as behaviour is best expressed, based on three activities, by Jaworski and Kohli citing Kohli and Jaworski (1990), as "(1) the organization wide generation of market intelligence pertaining to current and future needs of the customers, (2) dissemination of intelligence horizontally and vertically within the organization and (3) organization wide action or responsive to it" (Jaworski and Kohli, 1993: 54) The end-goal of market orientation is to increase a company's adaptability to its market. For the company to achieve maximum adaptability it has to adjust both its attitude and behaviour. Therefore, a genuine Marketing Orientation adoption requires adjustment of both company attitude (company philosophy and culture) and behaviour which are related and inseparable (Avlonitis and Gounaris, 1995)

"By placing emphasis solely on the companys attitudes, through manipulation of the prevailing system of beliefs, marketing orientation cannot flourish. At best, people will start thinking in terms of satisfying customers needs but, the knowledge of what these needs exactly are and how they can be satisfied, will be absent. Unless the skills to collect intelligence from the market are incorporated in the company and the structural arrangements are re-designed to accommodate the necessary intradepartmental flow of communication, the company will be unable to show responsiveness to customers needs and satisfy them. Thus, the establishment of the interrelationship between the two pivots of the marketing orientation serves in guiding the efforts of the companies that attempt to become marketing orientated. Their efforts need to focus on both the aspects of the concept if lip-service to marketing is to be avoided." (Avlonitis and Gounaris, 1995: 14) Furthermore these writers classified companies into five groups based on their marketing orientation. 1) The Marketing Oriented companies. These companies believe that marketing is primarily a company culture with a priority in satisfying customers need. They also believe that marketing orientation encompasses collecting market information and intelligence on competitors, so that the company can adapt to the market and offer customer satisfaction. They also believe that building relations with customers helps in better understanding their needs while, proper product positioning and product image improves their ability to satisfy more than the core need. 2) The Product Orientated companies. More specifically, product oriented

companies approach marketing with an emphasis on collecting market information for the purpose of managing the production and taking decisions regarding the quality and the quantity of the production. However, no particular emphasis is placed on associating these efforts with the objective of offering satisfaction to specific customers needs.

3) The Sales Orientated companies. These companies believe that marketing is primarily a sales-support function and is better left to the Marketing or the Sales departments. Typical of their attitude towards marketing is the neglect of any market analysis and the rejection of marketing as a company culture. Within this framework, they try to build relationships with their customers and maintain regular contacts not as means of increasing their understanding of their customers needs but rather as a way to increase the effectiveness of their sales effort. 4) The Production Oriented companies. These companies hold the attitude that their marketing effort should focus on decisions regarding the management of their production process and the quality and the quantities of the production output. They see no benefits in engaging with activities such as market analysis, collecting intelligence from competitors and adapting to market conditions. 5) Finally, the Agnostics, describes those companies which have a general picture of marketing as something that has to do something with the sales function. Still, marketing remains to them a confusing concept that they do not apply to their business activities. 3.2 Benefits of a True Customer Focus Orientation For organizations to get benefit from a true customer focus orientation, they must have to make efforts and serious attention towards to Customer Satisfaction, Customer Retention, and Customer Loyalty. Many authors have explained in different ways what the above points are and what benefits they contribute to organizations. The following are the ideas and views collected from different authors. 3.2.1 Customer satisfaction It is a forward looking indicator of business success that measures how well customers will respond to the company in the future. Other measures of market performance, such as sales and market share, are backward looking measure

of success. They tell how well the firm has done in the past, but not how well it will do in the future (Best, 2009: 39) 3.2.2 Customer Retention Best defines customer retention as the percentage of customers retained from one purchase period to another. He further clarifies that "in less competitive markets; customers are more easily to be retained even with poor levels of customer satisfaction because there are few substitutes or because switching cost are high. However, in highly competitive markets with many choices and low customer switching costs, even relatively high level of customer satisfaction may not ensure against customer defection". (Best, 2009: 45) 3.2.3 Customer Loyalty Good customer relationship management creates customer delight. In turn, delighted customers remain loyal and talk favourably to others about the company and its products. Studies show big differences in the loyalty of customers who are less satisfied, somewhat satisfied and completely satisfied. Even a slight drop from complete satisfaction can create an enormous drop in loyalty. (Kotler, 2006)

We can measure the psychological commitment a customer has to a brand or business by considering a variety of factors, but a customer's recommendation of a brand or business to others stand as best sign of customer conviction. When customers recommend a product or service, they undoubtedly have the utmost confidence in its value (Best, 2009: 49).

Using customer satisfaction, customer retention and customer recommendation, a company can determine its overall customer loyalty score (CLS).

3.3 Requirements of a True Customer Focus Orientation In order to get the a maximum share from the potential market , companies should have to select the market, segment it in to small groups, evaluate each group and arrange a product or service consumers' mind (market positioning). 8 to occupy a distinctive place in

3.3.1 Market segmentation Market segmentation is the process of grouping customers with in the market according to similar needs, habits or attitudes that can be addressed through marketing. (Wood, 2008: 54). Market segmentation is dividing the market in to smaller groups buyers distinct needs, characteristics, or behaviours that might require separate products or marketing mixes (Kotler, 2006: 195) The first step in segmentation is to select the general market(s) in which the company will target customers, based on the market definition, situational analysis and SWOT analysis. Eliminate markets or segments that have no need for the product or are inappropriate for other reasons, such as geographic distance, luck of purchasing power, ethical issue, troubling environmental threats (Wood, 2008: 55). 3.3.2 Target marketing Through segmentation, the company has identified various segments within the larger consumer or business market and screened out segments it will not enter (Wood, 2008: 63). Therefore as Kotler (2006) explained targeting is the process of evaluating each market segments attractiveness and selecting one or more segments to enter. 3.3.3 Market Positioning After selecting segments for entry and determining the coverage strategy, the next step is to decide on a positioning strategy to differentiate the brand or product on the basis of attribute that customers find meaningful (Wood, 2008: 65). The next step after targeting is positioning and according to Kotler (2006) it is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers.

The market for hotel business in Ethiopia consists of different types of tourists and guests from non-governmental, governmental organizations and minor proportions of local citizens. The tourist inflow increased in very gentle manner from time to time and the number of tourists visited Ethiopia in 2008 were, approximately 350,500. The target market for Wabe Shebelle Hotel is transit passengers which were 124,000 last year and according to strategic plan of the hotel, they planned to serve only 20% of Ethiopian Airlines transit passengers.

4. Practical Adherence of Wabe Shebele Hotel to Marketing Orientation To analyze and realize, the extent to which the theory of market orientation, as to how attitude and behaviour, are integrated in the Addis Ababa Wabe Shebelle Hotel. questionnaires were distributed to 40 employees and out of which 39 responded, finding the response rate of 97.5%. The first questionnaire is to determine the attitudes of the respondents towards marketing and the second is to asses if marketing or market orientation has become a behavioural practice in Wabe Shebelle Hotel. This can help us to see the level of marketing orientation adaptation in the hotel. All the questionnaires were answered by the selected target group which are composed of different work positions. In part one; the 15 statements were used to measure the respondents level of marketing orientation as attitude. A Likert scale (1= fully disagree, 2= disagree 3= neither agree nor disagree, 4=agree, 5= fully agree) was used to indicate the degree of agreement or disagreement with respect to each statement. These statements were reorganized and reduced into six main components where the underlying factors would potentially characterize a distinct group of variables. The classification was merely based on the works of Avlonitis and Gounaris (1995). The first factor represents a conceptualization of marketing orientation that places emphasis on specific actions that are directed towards increasing the companys level of adoption to changing Market conditions (market analysis and adaptation, intelligence collection on competition and adaptation to the market). 10

The second factor describes a much different attitude towards marketing. According to this approach, marketing orientation is nothing more than hightech selling with the companys emphasis remaining on the selling effort (promoting products, supporting sales and being the responsibility of the Marketing/Sales department). The third factor describes complete ignorance of the concept. This factor does not describe any specific approach to marketing orientation. Rather, it proves that some companies still consider marketing orientation as a confusing concept and, consequently, do not apply it. The fourth factor describes a production-based approach to marketing orientation (design and management of the production process and decisiontaking on production qualities and quantities) with the emphasis of the company placed on the production process. The fifth factor corresponds to an approach that maintains a traditional selling conceptualization of marketing orientation (building customer relations and maintaining customer contacts). The sixth factor describes a cultural approach to marketing orientation (a company culture, customer satisfaction and building product positioning and image). Table 1: Questionnaire one summarized in respondents average
No . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Marketing is Primarily a sales support function About promoting our products About identifying/specifying our Customers needs and satisfying them What the Marketing and/or the Sales departments do The effort to analyze market Conditions Literally non-existent to our Company The philosophy/culture leading Our company About building an image /positioning for our products A way to handle decisions Concerning the quality and quantity of the production process About managing the production Process A way to create customer contacts and closing deals The effort to collect intelligence on competition Adapting to changing market Conditions 11 Building customer relationships A confusing concept Respondents Average 4.05 3.74 3.76 2.67 3.51 1.76 3.56 3.38 3.38 3.23 3.76 3.33 3.43 3.67 1.92

Graph 1: respondents' average based on questionnaire one

RespondentsAverag e
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

RespondentsAverage

Table 2: Questionnaire one summarized in to six components

Fully Disagree Market Analysis & Adaptation "High - Tech" Selling Ignorance "High - Tech" production Traditional Selling Market Philosophy 14 15 48 10 5 12 Some How Disagree 18 19 11 17 11 17 Neither Agree nor Disagree 16 10 5 10 10 12 Some How Agree 42 40 11 21 27 44 Fully Agree 27 33 3 20 25 32

Graph 2: Questionnaire one summarized in to six components

1 . Q 2 . Q 3 . Q 4 . Q 5 . Q 6 . Q 7 . Q 8 . Q 9 . Q 0 1 . Q 1 . Q 2 1 . Q 3 1 . Q 4 1 . Q 5 1 Q 12

4.1 Analysis on Questionnaire I The above graph shows that most of the respondents some how agree on the hotel's effort to analyse market conditions, collect Intelligence on competition and adapting changing market conditions. For the majority of the respondents, marketing is primarily a sales support function, promoting products and done by marketing and/or sales departments only. Most of the respondents fully disagree that marketing is literally nonexistent and a confusing concept. Majority of the respondents some how agree and/or fully agree that marketing is away to manage the production process and handle decisions concerning the quality and quantity of the production process. Majority of the respondents some how agree and/or fully agree marketing is building customer relationship, create customer contacts and closing deals. Majority of the respondents some how agree that marketing is about identifying customers' needs and satisfying them. Even though most of the respondents believe that the concept of marketing is disseminated and adopting changing market conditions are 13

exercised by the company the remaining responses are indicating us that most of the workforce could not identify the difference between marketing and sales. They internalized that the product and production orientation of satisfying the customers' need are the determining factor for the successes of the company. In part two of the 14 questionnaire used to measure the respondents assessment of marketing within the organization as behaviour, the same method of A Likert scale (1= Does not fully represent our company, 2= Does not represent our company 3= neither nor represent our company 4= Does represent our company, 5= fully represent our company) was used to indicate the degree of agreement or disagreement with respect to each statement. We used data reduction method with the understanding of grouping statements driving similar behavioural aspects of marketing orientation. The three suggested categories were: The degree of market intelligence collection, The degree of company wide dissemination of the intelligence and The degree of responsiveness to the market intelligence.

Table 3: Questionnaire two summarized in respondents average

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No. Do the following statements Apply to your organization? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Collect information from users on their future needs Company is slow in identifying changes in preferences Information is collected from the user to evaluate the quality of products Company is slow to identify and Comprehend to major changes in the market environment Minimum communication between marketing and the other departments about market Developments Information on customers satisfaction is disseminated throughout the company to all employees Marketing people meet managers from other departments to discuss future needs of the end-users When something big happens to a major customer or market the whole company knows about it in a short term Marketing employees meet regularly with employees of the other functional units to discuss future trends in the market The various departments are slow to become informed on matters related to competition, customer etc. Employees from different functional units meet frequently to design the company's response to changing market conditions Strategies and plans are based more on the companys production capabilities rather than the market research results

Respondents Average 3.21 3.26 3.72 3.00 3.69 2.92 2.69 3.08 1.85 3.28 2.28 4.23

There is a tendency to ignore changes in the preference patterns of the 2.82 end-users regarding the products they buy New product development procedures are often scrutinized in order to 3.36 ensure that they produce the right products that will satisfy the customers

Graph 3: respondents' average based on questionnaire two

RespondentsAverag e
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

RespondentsAverage

1 . Q 2 . Q 3 . Q 4 . Q 5 . Q 6 . Q 7 . Q 8 . Q 9 . Q 0 1 . Q 1 . Q 2 1 . Q 3 1 . Q 4 1 . Q 15

Table 4: Questionnaire two summarized in to three categories

Does not fully Some how Represent the does not Company Represent the Company Collect Market Intelligence Intelligence Dissemination Response to Intelligence 18 61 37 26 35 21 Neither Represent nor does not represent the company 22 35 20 Some How represents the company 58 66 34 Fully represents the company 32 37 44

Graph 4: Questionnaire two summarized in to three categories

4.2 Analysis on Questionnaire II From the response of items 1 and 3 we observe that some of employees believe that the hotel does the work of market intelligence on customers' need and from the response of item 2 and 4 one can observe that there are others who believe that the hotel does not do market intelligence adequately. From the response of items 5,6,7,9 and 10 we observe that intelligence dissemination is not practiced by the hotel. The average response of item 8 is above 3, indicating information dissemination about their major customer. This is so because the hotel's major customer is Ethiopian Airlines and if something happens to the daily transit passengers it is obviously known by the employees. 16

 From the response to items 11 and 12 we observe that the hotel is oriented on its service capacity rather than to the changing market condition. From the response to items 13 and 14 we observe that the hotel strives to meet its customers' needs. We can conclude that the hotel's does not do the work of market intelligence and dissemination of information across the functions. But some how it tries to respond to its customers needs. When we compare the past performance with the actual, the performance of Wabe Shebelle Hotel indicates that from 66 to 74% of the revenue is generated from room and food services. The income from room and food is almost equal for the last five consecutive years. But the cost of material items for the preparation of the food is increasing throughout the years. The hotel spent around 1-1.5 million birr annually for the inputs materials for food preparation. (Please see annex). The majority of the guests (around 80-90%) who are using the room in Wabe Shebelle Hotel are transit passengers of Ethiopian Airlines. Average room occupancy rate is about 50-55%. These transit passengers are the major consumers of the food and beverage services of the hotel. We observe here the over dependency of the hotel on specific customer, which could be seen as a threat for the company and needs the attention of the hotel management.

5. Conclusions
The Wabe Shebelle Hotel's resources (rooms) are not properly utilized because of lack of the principal concept of market orientation in the company. The hotel is located in prime position of Addis Ababa and has adequate room, restaurant and bar facilities and garden, which is under utilized compared to similar three star private hotels. The average private hotels room occupancy rate is more than 80% rather than Wabe Shebelle's 52%. The Wabe Shebele hotel has adequate financial resource to run its business; where as the newly established private hotels have financial 17

difficulties to cover their costs. Even they are not in apposition to get additional bank loans for expansion. For Wabe Shebele Hotel to utilize its financial resources for future investment, requires a strong managerial decision is required in short time. But from our senior management interview and assessments the practicality of these additional investment decisions is unlikely to happen. It will take a relatively long time to reach on decisions of additional investment due to the ownership and the management structure of the hotel.(government owned) The composition of human resource and the decision making process need to be revised. The human resource management system for the development of market orientation, in the hotel business had a considerable impact and influence. Introduction of the process of market information represented by three interrelated dimensions: intelligence generation, intelligence dissemination, and responsiveness. These dimensions have a vital role for the development of the hotel business. Most attention should be given to minimize the over dependency of the hotel on Ethiopian Airlines transit passengers. The hotel must find away how to expand its market by developing a better marketing strategy and by introducing the development of market orientation.

6. Recommendations
In a hotel business, where the employees have a frequent interaction with customers, a strong market orientation of all functions and employees of the organization have a direct and significant influence for the successes of the business. Since Wabe Shebelle Hotel has more than adequate resource which are not properly utilized, due to lack of strategy for the development and execution market orientation in the organization, and in this respect in the hotel business, the human resource management system influences all three dimensions of market orientation, we recommend the following most important elements, that we have identified to improve the existing situation if the company need to succeed 18

a. The hotel's employees form the top to bottom need attitudinal as well as behavioural changes through exhaustive market orientation training and creating a culture of responsiveness to customer needs. b. Based on best practices of private owned similar three star hotels, we recommend initially the structure of the organization and the management system should be revised. The recruitment, the evaluation, the development and compensation systems should be reconsidered critically. Such improved system has important role that can play towards employee satisfaction, and in return on the over all hotel is achievement of the core objective of customer satisfaction and loyalty in the long run. c. The hotel must provide the standard required three star hotel services such as the development of its own website, as well as internet services in every room, and shuttle services to and from airport, and online booking systems & facilities .These will increase customers satisfactions and make the hotel to achieve a better advantage on competitors . Additional recommendations The hotel's employees from top to bottom need attitudinal as well as behavioural changes through exhaustive market orientation training and creating a culture of responsiveness to customer needs.

Special attention should have to the loyal customers. To go through its sales data and analyze the frequency usage of customers. Points for market segmentation The hotel has to define the potential market and select the one which is reachable to involve. 1. 2. 3. Segment the selected market and give special attention to Differentiate customers according to their consumption and After a) differentiating the customer according to their each segment according to their specified demand. frequency. consumption and frequency, then categorizing the customers as:High spender and frequent consumers 19

b) c) d) category:-

high spender and occasional consumer low spender and frequent consumer low spender and occasional consumers

After differentiating the consumers, use the following methods for each

Develop intimacy with these high spenders and frequent

customer of the hotel; identify and maintain what made them loyal for the hotel, use them as information resource by let them to tell talk genuinely about the weakness and strength of the hotel and what their future expectation are For those customers who spend high in an occasional

manner, identify their reason why they are not use the hotel frequently. If those customers who use the hotel occasionally and use other competitors hotels, a market research team should have to investigate the reason and make SWOT analysis and make the necessary adjustment as per the research outcome.

For those customers, who use the hotel frequently but

spend low or use cheap service of the hotel, investigation should be made and identify the reasons. Those customers who spend low and visit the hotel

occasionally; special attention should be given by the hotel management and try to identify each and every reason. Knowing the customers complain alone does not have any use unless immediate solution is given. Therefore, after making customers compliant, immediate solution should be given. These help the hotel to retain the customer.

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List of References Avlonitis, G.J. and Gounaris, S.P. 1995. 'Marketing Orientation and Company Performance: A Comparative Study of Industrial vs. Consumer Goods Companies'. [Online], (28p). available: www.sbleds.ac.za. [accessed on: 25 March 2009]. Best, R. J. 2009. Market-Based Management: Strategies for growing customer value and profitability.5th ed. New Jersey: Pearson Prentice Hall. Dobni, C. B. and Luffman, G. 2000. 'implementing Marketing Strategy Through a Market Orientation'. Journal of Marketing Management, 16: 895-916. Jaworski, B.J., and Kohil, A.K. 1993. 'Market Orientation: Antecedents and Consequences'. Journal of Marketing, 57: 53-70.

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Kohil, A.K., Jaworski, B.J., and Kumar, A. 1993. 'Markor: A Measure of Market orientation'. Journal of Marketing, 54. Kotler, P. and Armstrong, G. 2006. Principles of Marketing. 11th ed. New Jersey: Pearson Prentice Hall. Wood, M. B. 2008. The Marketing Plan Hand Book. 3rd ed. New Jersey: Pearson Prentice Hall.

Annexes

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NUMBER OF RESPONDA NT 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 TOTAL average 4 5 2 5 4 5 4 1 4 2 4 4 4 4 4 5 5 5 4 5 4 5 5 1 2 4 5 2 3 4 5 4 4 5 5 4 5 5 4 15 6 3.9 7 2 2 4 4 4 4 4 4 2 3 2 4 4 5 3 4 4 4 5 4 5 4 4 5 5 4 3 5 5 3 2 4 3 2 5 5 1 3 5 5 148 3.7 9 3 4 4 4 5 3 5 4 5 4 2 4 3 5 4 4 3 4 5 1 5 5 4 5 5 2 1 5 2 2 4 5 3 2 4 5 4 2 4 5 147 3.7 7 4 1 4 1 4 4 1 2 1 5 1 2 2 1 1 3 2 5 5 4 1 2 5 5 1 3 2 4 1 2 2 4 1 2 4 5 1 5 4 2 105 2.6 9 5 2 3 4 5 3 4 4 5 5 2 4 2 3 3 4 1 3 5 3 5 2 1 5 5 2 2 5 4 3 4 5 1 1 5 5 5 4 4 4 137 3.5 1 6 3 1 4 1 4 1 1 1 1 1 1 4 1 2 1 4 2 1 1 1 2 4 1 1 3 2 1 1 3 1 1 4 1 1 2 1 2 1 2 70 1.7 9

QUESTIONNAIRE 1 7 2 2 4 4 4 4 5 5 5 1 1 2 5 4 3 1 4 5 3 5 2 5 4 5 2 4 5 4 3 4 4 1 1 4 5 5 5 4 2 138 3.5 4 8 1 4 4 4 4 5 4 4 4 1 3 2 2 4 4 1 4 5 2 5 3 4 2 3 1 4 5 4 3 4 4 2 1 4 5 4 3 4 5 132 3.3 8 9 2 5 4 5 3 4 2 4 5 1 1 2 1 4 4 1 3 5 4 5 3 5 4 3 2 4 5 2 2 4 4 1 2 5 5 5 3 4 4 132 3.3 8 10 4 4 4 4 4 2 3 4 5 1 1 2 2 2 3 4 3 5 5 5 2 5 3 4 1 3 5 1 2 4 2 2 1 5 5 5 2 2 5 126 3.2 3 11 3 5 4 4 3 1 5 4 5 4 4 4 5 2 4 4 4 5 3 5 3 4 3 5 2 4 5 5 2 2 4 2 2 4 5 5 3 4 5 147 3.7 7 12 2 3 2 5 4 1 4 5 4 1 4 1 5 4 4 3 1 5 3 4 2 5 3 2 3 3 5 5 3 4 4 1 1 4 4 4 4 4 4 130 3.3 3 13 2 4 2 5 4 3 2 5 4 4 1 2 4 4 4 4 2 5 3 5 1 4 4 4 2 4 5 4 1 4 5 1 2 5 4 5 5 4 4 137 3.5 1 14 3 4 2 4 4 5 4 5 4 1 2 2 5 4 5 1 4 5 4 5 3 5 4 5 1 4 5 4 2 4 5 1 2 5 4 5 3 4 5 144 3.6 9 15 4 1 3 4 4 1 1 1 1 1 2 4 1 1 1 5 4 1 1 1 1 1 1 1 5 1 1 4 3 1 1 3 1 1 5 1 2 1 1 77 1.97

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Questionnaire one summarized in to six categories

Factors 1.Market Analysis and Adoption 2. High Tech selling Variables Intelligence on competition Adapt to the market Market analysis Promoting products Supporting sales Confined in sales and Marketing Dep. 3. Ignorance 4. High Tech production 5. Traditional selling 6. Marketing philosophy Not existent A confusing concept Design & Prod Management Decision on quality and quantity Build customer relations Maintain customers contacts Satisfy customers needs Build product positioning & image A company culture

24

25

Number Of responde nt 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 TOTAL AVERAGE 1 4 2 3 3 2 4 2 4 4 3 3 5 4 4 2 1 5 4 2 5 4 5 3 1 4 2 5 1 1 5 3 5 4 2 4 4 2 3 1 125 3.2 1 2 4 5 3 3 4 5 4 5 3 4 3 4 4 4 1 1 4 3 1 4 5 2 5 5 2 4 1 4 4 4 3 4 4 5 3 5 4 4 4 14 1 3.6 2 3 4 2 2 5 4 4 4 4 4 2 2 5 4 3 3 3 5 4 1 5 4 5 3 4 4 1 5 4 5 5 5 5 4 4 4 4 2 4 3 14 5 3.7 2 4 2 2 3 5 2 1 4 4 2 4 2 3 1 2 3 2 4 2 1 1 1 1 5 5 2 4 1 4 5 5 5 2 4 5 4 4 4 2 4 11 7 3.0 0 5 4 5 3 4 4 5 2 5 5 2 2 5 1 2 3 5 2 4 1 1 5 4 4 5 4 4 5 4 4 5 5 2 4 5 3 4 4 5 3 14 4 3.6 9 6 2 4 2 4 5 4 4 4 4 1 2 4 4 4 1 1 1 1 2 4 5 5 1 1 4 1 3 1 4 4 4 5 4 1 3 1 2 4 3 11 4 2.9 2

QUESTIONNAIRE 2 7 8 9 10 3 4 1 4 4 1 3 5 1 3 2 3 1 5 1 3 2 4 2 2 3 4 4 4 1 1 1 2 1 1 1 4 4 3 3 5 4 1 3 4 2 2 2 2 4 3 1 1 3 3 3 4 5 3 3 5 3 2 1 3 1 1 1 5 3 1 1 2 3 5 1 2 1 2 1 2 5 5 4 5 5 4 1 4 4 4 1 4 2 1 1 4 3 5 4 4 4 4 2 4 1 1 1 5 3 5 4 1 2 1 1 1 1 4 1 5 4 3 1 1 1 5 1 3 2 5 2 1 2 4 1 5 5 4 1 5 4 4 3 4 1 4 1 1 1 1 2 1 3 4 2 4 3 3 3 4 10 12 12 5 0 72 8 2.6 3.0 1.8 3.2 9 8 5 8

11 2 5 2 1 5 4 1 1 4 4 2 3 1 2 1 1 1 4 1 1 3 4 1 1 2 1 5 1 1 3 1 1 1 1 4 1 2 5 5 89 2.2 8

12 3 5 4 5 5 5 5 4 5 5 3 5 3 5 5 5 5 3 3 5 5 5 4 5 4 4 1 2 5 5 5 2 5 3 3 5 4 5 5 16 5 4.2 3

13 2 1 4 1 2 1 4 3 1 3 3 5 1 4 4 1 4 1 2 1 5 1 5 5 1 4 4 4 2 5 1 1 4 4 4 4 4 2 2 11 0 2.8 2

14 4 2 3 5 5 2 4 3 4 5 3 5 5 2 3 1 2 5 3 5 1 4 2 1 4 4 5 1 3 4 5 5 4 4 3 5 2 1 2 131 3.3 6

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Questionnaire two summarized in to three categories

Variables 1 2 3 4 Collect market intelligence Collect information from users on their future needs Company is slow in identifying changes in preferences Information is collected from the user to evaluate the quality of products Company is slow to identify and comprehend to major changes in the market environment Intelligence market dissemination Minimum communication between marketing other departments about market developments 6 Information on customers satisfaction is disseminated throughout the company to all employees 7 Marketing people meet managers from other 2.69 2.92 Means 3.21 3.26 3.72 3.00

and

the

3.69

departments to discuss future needs of end-users 8 When something big happens to a major customer or market the whole company knows about it in a short 9 term Marketing employees meet regularly with employees of the other functional units to discuss future trends in the 10 market The various departments are slow to become informed on matters related to competition, customer etc. Response to market Intelligence Employees from different functional 3.28 1.85 3.08

11

units

meet

2.28

frequently to design the company response to changing 12 market conditions Strategies and plans are based more on the companys production capabilities rather than the market research 13 results There is preference 14 a tendency of to the ignore changes in the the often 3.36 2.82 4.23

patterns

end-users

regarding are

products they buy New product development

procedures

scrutinized in order to ensure that they produce the right products that satisfy customers.

ADDIS ABABA WABE SHEBELLE HOTEL PROFIT /LOSS/ STATEMENT FOR THE FISICAL YEAR 2004 - 2008 27

Revenue Room Income Food Income Beverage Income Shop Income Entrance Income Hall Rent Income Shop Rent Income P.T.T. Income Bath Income Miscellaneous Income Total Cost Cost of Food Cost of Beverage Cost of Cigarettes Total Gross Profit Less Gen. & Adm. Dep. Profit (Loss) Before Tax

2004 2,599,241.17 2,962,764.10 1,083,890.27 26,247.65

2005 2,406,391.97 2,999,450.76 1,004,090.05 19,532.65

2006 2,595,022.2 3 2,929,062.3 6 958,037.1 8 18,716.1 7

2007 3,677,694.25 3,903,255.27 947,884.77 11,273.35

2008 4,350,693.01 4,154,079.29 849,132.62 13,790.25

711,508.58

1,197,617.22

1,414,686.2 1 267,292.3

1,450,778.28 1,481,103.66

254,230.19

265,222.12

210,823.84

240,417.92

453,065.39 8,090,947.35

240,130.54 8,132,435.31

233,200.7 2 8,416,017.1 8 1,106,547.0 3 303,281.5 0 14,910.5 7 1,424,739.1 0 6,991,278.0 8 5,632,797.6 3 1,358,480.4 5

201,216.79 10,402,926.55

381,769.86 11,470,986.61

1,105,233.47 416,071.82 22,866.38 1,544,171.67 6,546,775.68 5,555,316.86 991,458.82

977,351.49 297,861.55 15,744.02 1,290,957.06 6,841,478.25 6,033,862.04 807,616.21

1,330,349.31 317,743.60 7,066.52 1,655,159.43 8,738,767.12 7,031,707.21 1,707,059.91

1,461,806.49 287,814.19 9,257.08 1,758,877.76 9,712,108.85 7,091,433.83 2,620,675.02

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