Asset Light Strategies Are the Only Way Ahead for International Hospitality Companies

Topic 6: Asset light strategies argon the only when way ahead for international hospitality companies. In the case asset light strategies refers to international hospitality companies owning less assets. Assets are items of economic value owned by an individual or corporation, especially that which could be converted to cash (www.investorwords.com). The various diametric strategies international hospitality companies use in order to alleviate their assets could be by franchising, management contracts and offshoring ( similarly known as outsourcing). individually of these strategies will be explained in depth throughout the essay. The contend why businesses would want to have fewer assets is because they want to withdraw out of having asset-heavy balance sheets. By the strategies mentioned above international hospitality companies can lighten their balance sheets substantially. Franchising is probably used by most major international hospitality companies in our days. A franchise is a right granted to an individual or group to market a companys goods or service within a certain territory or location (www.franchises.about.com). There are hundreds of well known franchise businesses in todays world, some of them are Mc. Donalds, Starbucks, Subway and the Hilton etc.

Franchising does not only serve its purpose in the hospitality celestial sphere but also in more than 120 antithetic industries such as the automotive, cleaning & vitamin A; maintenance, health & fitness, financial services, and pet-related franchises, just to name a few (www.franchises.about.com). The ideal of franchising revolves upon a franchisor and a franchisee. The franchisor who is the owner of the business grants a permission to the franchisee to use their products and business idea in return for a percentage of gross monthly sales and a royal house fee. The franchisor will provide help and support to the franchisee which will be selling the franchisors product or services which will also be using the franchisors... If you want to get a safe essay, order it on our website: Orderessay

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