UPM-ELD HTM PROGRAM 2019-20

UNIT 3

Supply
Management

A. Pre-reading Discussion Questions

1. What kinds of supplies do you need for your home?
2. Have you ever run out of supplies? How did you manage?

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B. Previewing Vocabulary
Word Definition
A. proliferation a big increase in number

B. accounted for to supply the amount of or explain

C. discourse discussion that is long and serious

D. compiled to put together from various information sources

E. anonymity secrecy about one's name

F. register put your information on an official list

G. reveal to make known

H. improvise to speak/perform without planning

I. distinctive unique, special, or uncommon

J. deny to refuse to allow

(I) Complete the sentences using the words above (word form may be different).
1. Italians ___ for 5% of the tourists in Germany last summer.

2. Politicians ___ a report regarding the development of neglected cities.

3. High government officials engage in political ___ about current affairs.

4. The rapid growth of access to the internet has resulted in a ___ of data.

5. ___ is very important when you want to protect those who give sensitive information.

6. After many years they finally ___ their plans.

7. They were ___ access due to security reasons.

8. My friend has a ___ mark on her hand. I've never seen anything like that before.

9. You need to ___ your details on the website.

10. When you don't know what to say you have to ___.

(II) See how the 'bold' words (NOT underlined) are used in the reading passage.

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C. Reading Passage

SUPPLY MANAGEMENT
Managers in any line of business must understand the external forces that are at work if
they are going to be effective managers and improvise accordingly. This is especially true
of managers in the hospitality industry. There has been a proliferation of forces that has
impacted hospitality businesses on a daily basis, or on some other cyclical basis, and there
are singular events that have an immediate and ongoing effect. The effects of these forces
have been compiled in international journals. Some forces may invoke gradual changes;
others may come suddenly. Such factors as demographic changes, fluctuating food costs,
resource scarcity, and workforce diversity are ever present and are all important to under-
stand as a manager.

Land and the things that come from the land are classically one of the distinctive factors of
production in economics. In hospitality, we are concerned with land itself as well as with a
major product of the land, food. Because hospitality firms need land for their locations,
certain kinds of land are critical to the industry. Good locations, such as high-traffic areas,
locations near major destinations, or locations associated with scenic beauty fall into this
category. Such areas are becoming scarcer with every passing day for at least two reasons:
the existence of established operations and environmental pressures. To deal with the first
of these reasons, the simple fact is that most of the best high-traffic locations are already
occupied. What creates good locations are changes in the transportation system and
changes in population concentrations. The building of new highways has slowed greatly
compared to the time when the interstate highway system was under construction. As a re-
sult, fewer new locations are being created in this way and there are no signs for any future
discourse on this issue.

In recent years, we have seen restaurant chains acquired by other restaurant chains prin-
cipally in order to obtain their locations for expansion. One of the factors that led QSR
(Quick Service Restaurant) chains like McDonald's to seek locations in malls some years
ago was the shortage of freestanding locations. A second reason accounting for the
growing scarcity of locations is environmental pressure. Location scarcity is especially se-
vere in locations such as seashores or wetlands, which are often zoned to prevent build-
ing—especially denying any construction of commercial buildings—in scenic or environ-
mentally sensitive locations. Environmental pressures do, however, go beyond scenic loca-
tions. Restaurants, particularly QSRs, are meeting more resistance because of the noise,
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traffic, odor, roadside litter, and crowding that can accompany such operations and the re-
newed concern over environmental preservation. Restaurants cannot register as busi-
nesses in these areas and have been “zoned out” of many communities or parts of com-
munities. On balance, the greater pressure comes from the impact of present locations be-
ing occupied, but, for both reasons discussed previously, land in the form of good locations
is a scarce commodity.

Although the cost of food may vary from season to season, for the most part, these varia-
tions affect all food service competitors in roughly the same way. Although, not much infor-
mation is available due to businesses opting for anonymity and a preference to not reveal
such data. Food service menu price changes would have to reflect any change in raw food
cost. Food supply conditions do not suggest any major price changes, although weather
conditions or temporary shortages of certain foods always can drive up some prices in the
short term. We should note, however, that major climatic changes, such as those that could
be brought on by the greenhouse effect and Earth’s warming, do pose a longer-term threat
to world food supplies. The major change pertaining to food is the growing effort toward re-
ducing food miles. This term refers to the distance food is transported—in essence, from
farm to fork. By reducing food miles, we can reduce the negative effects associated with
greenhouse emissions from transportation, among others. Reducing food miles can also
enhance sustainability for related items as they must be produced closer to the place
where the food is served.

(I) For each statement, write (T) for true, (F) for false, or (N) for not given.

Statement T/F/N
1. The impact of forces on the hospitability industry may not appear right
away.
2. Issues such as resource scarcity used to be a problem in the hospitality
industry.
3. QSRs choose to open up in malls because they are busy places with
many customers.
4. Good locations are normally highly populated.

5. The reduction of food miles is an international concern.

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(II) Summarise the passage above in 30-40 words.

 focus on the key ideas
 do not copy the text
 use synonyms

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(III) Complete the sentences using the underlined words from the reading passage.
You may need to use a different word form.

1. One of the greatest problems that could affect the hospitality industry is
_______________. This makes operations more challenging and you may have to
look abroad for supplies to solve such problems.

2. Some _______________ desire to be located in areas of _______________. These

places may be surrounded by mountains or unique and breath-taking views.

3. Most locations do not allow any form of construction on _______________ as it can

be dangerous and therefore remains un_______________. The foundations of such
places are very weak. Even _______________ should be avoided due to tidal
waves.

4. Large _______________ entities are usually _______________ of areas where

_______________ are very high. Governments in these areas don't want highly
polluted towns or cities.

5. _______________ often have to fight for _______________, especially those goods

which are in _______________. In addition, they are challenged by the need to
reduce _______________ so that they can compete amongst other
_______________ which are established internationally.

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