Situation Analysis Practices and Performance of Selected Enterprises in Chinese Tourism Industry

Abstract

The research was designed to investigate the relationship between situation analysis and firm performance and how situation analysis practices effect on firm performance of the selected enterprises in the tourism industry in China. The study sought to achieve two objectives. The first objective was to establish how outsourcing in situation analysis affects performance of selected tourism enterprises in China while the second was to determine how in-house in situation analysis affects performance of selected tourism enterprises in China. To achieve these objectives the study adopted descriptive survey design which provided a convenient way of data collection when administering the questionnaires online as well as through the use of non-digital methods and allowed for collection of data based on different variables. The study indicated that outsourcing was able to improve strategic position, increase innovation, specialization, and business flexibility, access the latest technologies, and reduce organization risks, while some inhouse activities from within the enterprise may boost business agility, increase data security, reduce cost, build their brand, and control external factor. Both outsourcing and inhouse are important to firm performance and enterprise shall utilize situation analysis to improve performance. This study recommends examining the external and internal environment, performing market analysis to determine potential customers, opportunities, and competitors, analyzing the company's vision, strategy, and goals to improve performance.