The Study And Application Of System Optimization Theory In Elevating The Core Competence Of China Hotel Industry

Before presenting the comprehensive research and study of "Core Competence" of the Chinese hotel industry, it is quite necessary, the author believes, to offer a basic Road Map that records the whole process of the Chinese hotel industry development in the past 20 years of reform opening up. Thus, the goal toward a better prescription for a cure to the Chinese hotel industry could most probably be achieved.It is obvious that hotel industry is one of the "early birds" among all industries in China. As one of the few pioneers in the last days of the planned economy, Chinese hotels were regarded as the lucky ones due to the following reasons: Firstly, hotel industry was one of the earliest service industries to be permitted of Foreign Direct Investment. The State Council approved the first 6 joint venture hotels with over 5, 000 guest rooms in 1979, including the Jianguo Hotel, The Great Wall Sheraton in Beijing, The White Swan Hotel in Guangzhou, and the Jinling Hotel in Nanjing. Those joint venture hotels have made great impact on career-choice among domestic job seekers at that time. Secondly, hotels were the first ones to introduce market mechanism in their management and operations. Foreign Direct Investment has brought in not only an accumulated amount of USD$20 billion capital, but also introduced competition among joint ventures with a result that domestic hotels were kept ahead in the market oriented reform process as compared with other sections of the national economy, and that the multi-structural competition system in the hotel industry is introduced till now. Thirdly, concerning the achievement at international level in service facilities and operation management areas, hotel industry was also one of the pioneers. Hotel industry has set a good example in the national economy, with employees and management having high quality staff to work for, with most advanced managing method, and with the least barriers from the past planned system. Hotels have improved their developing level as to internationalizing, by the way of complying with international rules in managing of industry and enterprises, and this is unbelievable in other traditional lines. Lastly, hotel industry has made rapid expansion during...