T. Noble Foster, Dean Peterson, Rex S. Toh
This study is based on an extensive review of the literature and interviews with 50 executives from the hospitality industry, cruise lines, corporations, and associations, individually interviewed at their premises. Using content analysis, we discovered that since September 11 2001, the accompanying recession, and the passage of the Sarbanes-Oxley Act in 2002, corporations have become very cost conscious in regard to meeting costs. We also found that corporations have used two different but not mutually exclusive approaches to cost cutting: consolidate operations and outsource non-core activities. This article outlines these measures and identifies the types of companies that will engage in them, as well as situations that call for one or the other.
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