Introduction
Hospitality leisure and tourism are closely interrelated. In many instances, anybody spending his leisure time would opt to tour a restaurant that offers hospitality services. Hospitality is popularly referred to as a friendly reception between guest and host (stranger). In the hospitality industry, it is a relationship created between a guest (tourist) and a host (the hospitality industry). Particularly, hospitality covers the reception and entertainment of the tourists and other guests spending their leisure in resorts (Graham 2005).
The company offers a number of facilities, which make its chain of products unique. They have over 1250 guest rooms of which are offered at a premium (150 rooms) and at standard price (200 rooms). The restaurant is furnished with over one hundred seats with adjoined 50-seats bar lunge section that constrains constant flowing visitors from all groups. Notwithstanding, the company has a conference hall that contains over 200 people not to mention its flexible configuration. Their efficient business equipment is crowned with one bay exercise area, a pool and an open-air recreational area.
The company is proud of having the biggest guest rooms, as well as F & B facilities that make a business room convenient and accessible from the street. The spacious area renders exterior acquaintance for signage and increases its flexibility in reconfiguration. The company has been in business for several years. The business experiences escalation in restaurant closing, as well as in the effective pricing strategy that has contributed to the influx of customers in the hotel restaurant. Today the company reserves a stiff competitive niche marked by the escalation in requests for proposal (Cartwright & Schoenberg 2006).
The fluctuations in the Volume of products demanded by customers are usual as indicated by the changing seasons and different business cycles. Sudden plunges of recessions within a country and global economic recession as recently experienced call for a firm that is flexible enough to shift its production as per the market trend and demand. It is a notion that increasing demand might do little wrong. However, when the demand goes up, the cost is attached to increased production, unless the business is able to get the economies of scale and has enough technological resources to minimize the costs. On the other hand, approaching from the decrease demand, it may be quite impossible to make a decision on retrenching employees and the subsequent reduction in production. The ability to effectively change a dynamic industry provides the company with benefits, essentially on their flexible operational strategies.
The Financial Perspective
Improving economic conditions and increasing capital investment should support higher room rates. According to the present financial situation, the company will advance to reduce cost as a way of serving and developing the market. With a cost minimization strategy, it is evident that retained earnings will grow due to increase in depreciation and seeking more funds. It is evident that the company is liquid having a cash balance of $325,000. The company has identified the most attractive points that reserve the potential of increasing their performance, they are the city’s sports, arts, and entertainment settings. As such, establishing business near these settings will immensely contribute to increased sales. Customers seeking leisure would prefer receiving the best benefits of a centre city hotel at an affordable price, which may be at the market rate.
Financial position
The proposal acceptance will mean regular flow of customers since the main visitors expected are military, tour and technical professionals. The products have an efficient décor with a mixture of old and new architecture that attracts customers from all market segments. Therefore, specific focus shall incline funding leisure and the large groups because they show the highest percentages in frequencies according to the table below.
Stockholders
Food & Beverage Performance (breakfast lunch and dinner) earned the shareholders a gross of $194,609. Price Points comparison gave the competitive prices range within the limit; thus they were within the covers. According to the current financial statement, the stockholders will have a 70% return in investment in the current year, as well as security of $40,995,000 accruing from the company’s assets.
Strengths
The company is proud of having the biggest guest rooms, as well as F & B facilities that make the business convenient and accessible from the streets. Today the company reserves a stiff competitive niche marked by the escalation in requests for proposal. The proposal acceptance will mean regular flow of customer since the main visitors expected are military, tour and technical professionals. The products have an efficient décor with a mixture of old and new architecture that attracts customers from all market segments. The business is located next to the underground public transport, not to mention its exclusive ground-breaking meeting places. It also reserves immense pride of historic attachment to historic photographs and memorabilia that fall in line with the hotel position statement. Its main entry is positioned on the backside of the street to offer an element of accessibility making it the unique form as opposed to its competitors.
Viability
Hotel Sim continuously showing the ability to progress in a period of three years. However, this paper advances to evaluate how effective and efficient it has been run over the years. The quality of hospitality will attract the resorts to be a home of tourists and leisure spending. As such, hospitality, tourism and leisure act in a vicious cycle in complimenting each other as a reserve for attraction and special events.
In effect, sophistication and system integration has been rapid and demanding in an effort to enhance the operational efficiency in the sector (Schmidgall 2010). The industry is a big contributor in building venues for redesigning and impacts the local environment positively. The processes of tourism and hospitality have made it possible for people from various parts of the world to meet and exchange ideas. The hospitality and tourism industry serve as strong economic contributors since they influence diverse sets of related sectors of the economy. Ultimately, socialization has made many individuals get business ideas to build their lives.
Again, the activities in the industry provide the best avenues to have investors, coincidentally, meet investment opportunities. In addition, many businesses today enjoy applying more sustainable practices to enhance a green image that pleases consumers (Walker 2008). For instance, using organic products, recycling waste products and reducing the amount of using toxic products ensure efficient environmental practices. The hospitality and tourism industry are not sustainable because of their contribution and effects on the environment. Among the major factors that contribute are leadership in environmental energy design, Indoor air quality, and green lodging certification.
The company tooling industry is an extensive establishment of the provider of the service in cooperation with the local and international drivers’ in the hospitality industry (Harwood 2006). The country’s hospitality industry has developed a strong standing of the complexity, excellent quality tooling at comparatively reduced costs in comparison to the competitors in Asia, Europe, the USA, Middle East and Latin America. The market’s competitiveness is engineered by the advanced technological advances and a strong quest from outside forces for investment, ground-breaking designs, highly diversified products of refreshment and comfort with a professional touch for large groups. Eventually, it accrues to be a leading advantage in capital equipment that facilitates a highly efficient hotel services.
Price, Product, Promotion, Quantity
The company offers hotel services. The current situation has not been pleasing since it was marked by a decline in performance, occupancy, regular daily rate, and gross working profit. In the leisure market, the company makes extensive steps to attract a city get-a-way experience that encompasses entertainment and architecture currently lacking their home operation. The company has identified the most attractive points that reserve the potential of increasing their performance which are the city’s sports, arts, and entertainment settings. As such, establishing business near these settings will immensely contribute to increased sales.
Customers seeking leisure would prefer receiving the best benefits of a centre city hotel at an affordable price which may be at the market rate. On the other hand, the leisure market will be more attractive when offering rooms at premium prices (Schmidgall 2010). Tour groups are potential clients to the business. These customers visit the cities frequently to enjoy the festivals, schoolmates’ reunions, as well as, planned historical tours. These potential customers are likely to consider rooms that accommodate two people so as to reduce renting or lodging cost. They would also prefer utilizing the meeting area for organizational meetings. The company reserves a significant product for the large groups to enjoy their interconnection. The groups need enough area for lodging and holding conferences. The company has diversified its products for these clients from meeting space, banquets, as well as, audio visual services to cater for the conference meetings. Again, business facilities and decoration come in to cater for large groups holding ceremonial events like weddings (Jagels & Ralston 2006). The small groups have not been an exception. Hotelism ensures that its products cut across all markets, which show indication of growth, development and higher frequency, including small groups. As such, the business provides products for small groups like families and couples on honeymoon. The market also includes social gatherings, groups that collectively prefer enjoying meals and beverage, as well as recreation outlets.
Again, the proposal acceptance will mean regular flow of customers since the main visitors expected are military, tour and technical professionals. The products have an efficient décor with a mixture of old and new architecture that attracts customers from all market segments (Birt al 2010). The business is located next to the underground public transport, not to mention its exclusive ground-breaking meeting places. It also reserves immense pride of historic attachment to historic photographs and memorabilia that falls in line with the hotel position statement. Its main entry is positioned on the backside of the street to offer an element of accessibility, making it a unique form for its competitors.
The highly competitive market in hospitality has forced Hotelism to increase their sales through the product diversification and flexibility in the reconfiguration of services at fairly cheap prices that enable the consumers to take up the services in large quantities and numbers. Thus, cheaply Low cost services will enable the business to penetrate Asian, Europe, the USA, Middle East, and Latin America markets (Crundwell 2008). Over 50% of the hospitality industry products that are sold at low costs have had a significant increase in the sales of their products and services as compared to those who profess on the notion that quality goods are meant to be expensive. This is reflected in the in the revenues of $33,000, $2,000 per month from theme Restaurant, as well as Travel and Tour Desk.
Risks increase the value of common stock (Katsioloudes 2002). The lesser the risk, the lesser the value of common stock, and the higher the risk, the higher the value of the common stock. This is as illustrated by the interest rates changes with the change in the various environmental risks within a market. More often, we get the government bond to bring less interest and value because of the less risky, but other bonds offered by companies, which have higher risks, have always been attached to higher interest rates and higher value (Jagels & Ralston 2006).
Conclusion
The levels of information, technology trends, global economic condition, sociocultural and political factors that greatly affect the market penetration are analysed in the external environment categorisation. According to Baker (2008, p. 56), with all these weighed and scaled according to their importance and criticality, a market strategy is developed. This is a key to the businesses market penetration and increase in the market share. Thus, to have an always updated market strategy, it is essential that it should always bear the overarching company’s mission statement.
It is a notion that increasing demand might do little wrong. However, when the demand goes up, the costs are attached to increased production, unless the business is able to get the economies of scale and has enough technological resources to minimize the costs. On the other hand, approaching the demand decrease can make it quite impossible to make a decision on retrenching employees and the subsequent reduction in production (Elwin 2010).
The following price points and limits are expected as the economy rebounds. The best rate strategy is the one that produces the highest departmental profit. Generally, higher rates reduce occupancy but increases profit, but only to a point. When rates approach the price point limit in the market, occupancy can drop dramatically to the point that profit is severely affected. There would probably be no occupancy at the price limit (KPMG 1999).
The quality of hospitality will make resorts to be a home for tourists and leisure spending. As such, hospitality, tourism and leisure act in a vicious cycle in complimenting each other as a reserve for attraction and special events. In effect, sophistication and system integration have been rapid and demanding in an effort to enhance the operational efficiency in the sector (Schmidgall 2010). The industry is a big contributor to building venues for redesigning and impacts positively on the local environment. The processes of tourism and hospitality have made it possible for people from various parts of the world to meet and exchange ideas. The hospitality and tourism industry serve as strong economic contributors since they influence the diverse set of related sectors of the economy. Ultimately, socialization has made many individuals get business ideas to build their lives. Again, the activities in the industry provide the best avenues to have investors, coincidentally, meet investment opportunities. In addition, many businesses today enjoy applying more sustainable practices to enhance a green image that pleases consumers (Goetsch & Stanley 2010).
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