Analysis of Present Situation
Price, Product, Promotion, and Quantity
The growth of the hotel is attributed to the cheap prices they charge their customer and the number of sales they make monthly. The hotel offers various products and facilities. Application of the promotional strategies varies from one organization to another depending on the type of products an organization deals with. Online is used in advertising and provides an effective method of communication between a business and a would-be customer. It helps maximize the number of customers an affiliate contacts after a specific period. Having a website enables the attraction of more customers (Kotler and Armstrong, 2009). A quality performance is the ultimate objective of various businesses. Different organizations, thus, apply a varied range of techniques to achieve the objective. Depending on the type of business, business operators not only ensure quality productions, but also attract and maintain business relations using several promotional strategies. By sustaining a good public image, a company develops a strong bond with its current customers and attracts more clients. As another marketing technique, affiliate programs are effective methods of maximizing profits in a business firm. Using business partners or associates to advertise products of a company improves sales of the company by attracting more customers (Hill and Jones, 2011).
HRM (Staffing and Costs) – the success of the hotel depends on the effectiveness of the human capital. Offering incentives for skills developed as well as the organizational operations, emphasizing teamwork, and encouraging collaboration along with accountability for performance, enhance the quality of human capital. The remunerations of the Group’s workforce of over 1000 are footed by the hotel. The employees devote their efforts to the successes of managed facilities whose earnings and benefits of $267m are settled in their respective hotel premises.
Facilities (Offers and Condition). Facilities have put in place policies and programs that aimed to guarantee customers’ convenience by providing state-of-the-art hotel facilities that will supply the teeming customers with the luxury they desire. We have laid emphasis on creating a smooth communication network between the customers and the management, the process of services has been modernized to encourage quick and reliable attendance to customers’ requests, and the quality of services provided has been preserved for sticking to the enviable of the Group. One of the mission statements of the Company is to strive, at all cost, to satisfy the expectations of the customers, which may include smooth checking-in/checking-out procedures, fast payment process, clean and hygienic services, timeliness, and respect for variety, and other customers’ requirements.
Stockholders. There is a positive ROI, which increased shareholders, and lenders’ confidence however the confidence built when it reached 15%.
Objectives
The hotel should aim at having a price that is affordable to most of its patrons. The current prices are competitive, they should be maintained.
The hotel should maintain the current products and services but should also increase products to cover all cultures of people who patronize the hotel.
The hotel aims at increasing promotion by soliciting the services of a celebrity. This will create a strong presence, one that is associated with the image and brand identity that a business focuses on. This provides a relationship to potential customers and allows individuals to remember the main aspects associated with the business. Event creation, establishing a unique presence and the ability to focus on multiple dimensions for brand identity can all be used for the same building of brand identity.
The hotel should increase sales by 10% in the next one year
HRM (Staffing and Costs). The hotel should aim at increasing staff but maintain the wages and salaries at 45% of the total expenses. The hotel prides itself on taking good care of its employees. Apart from the regular salaries, the Company’s employees receive generous benefits, which included but are not restricted to provident funds, insurance, and medical cover, housing, and share option, which allow each member to become a part of the company. This is an attempt to encourage the employees to do their best for the Company’s guests by providing first-class services for them.
Facilities (Offers and Condition)– The hotel should put up a facility like a swimming pool that attracts local people to patronize our restaurant.
Stockholders – Revenues have been growing at a considerable rate even though it has dropped in growth, which could be due to increasing competition. Despite of falling revenue, the operating margin has gone up significantly but at the same time, ROCE has dropped dramatically. This is because of falling revenue as well as investments in acquiring new businesses without injecting more cash.
Operation Plan
The organization offers delivery for items above a threshold price in a given radius from its hotel. This means that despite the premise being a hotel, people have to move products from one place to the other and thus wages and salaries are a common thing. In addition, online purchases earn revenue for the organization. The finance department carries out the budgeting process for this revenue. The collection of such revenue is also a function of the department.
In terms of further expansion, the hotel is targeting the emerging consumer markets where disposable income is growing. The hotel has its strength in the brand name despite charging a higher price than most hotels and most fast foods. Unlike rivals who pay millions of dollars for celebrity endorsements, the hotel relies on its target market to promote the brand. Hotel is focused on two things: brand and consumers and when a company has its focus on these two, it cannot go wrong (Kotler and Keller, 2008).
Staff: Number of staff members, training, and wages- Human resource is one of the most important resources in strategic management. In modern management endeavors, human resources are becoming more and more significant in organizations, because the modern-day knowledge-based marketplace calls for the human capital to give suggestions and take part in the implementing process of the organization’s strategy. Human capital is, as a result, becoming a management strategic partner by recognizing the capacities it needs and then offering itself the instructions and structures, it requires expanding as well as utilizing these capacities. Finance, information, and physical resources also play a critical role in strategic management especially if a company is undergoing strategic changes. The company should all human resources have a good customer relationship (Thompson and Thompson, 2010).
Advertisement action plan- The restaurant is advertised by three advertising mediums: television, print advertisements, and sponsorship of major events. Television advertisements are usually aired during the programs, which focus on the gaming industry. It must be kept in mind that the hotel caters to a particular market segment and advertising would only be effective when the target audience is able to watch it. The television advertisements also help in reach based approach of the hotel. The aim of the hotel is to reach its customers as directly as possible.
The organization has been able to replicate its physical hotel branch functional areas into its online business successfully.
It already spends 30% on marketing activities of extreme nature such as sporting events and adventure.
Investment decisions – the organization should be able to invest in conference facilities to increase revenue from non- conventional sources. This will make the hotel a center for conferences thus increasing customers.
Refurbishment decisions– when making these decisions, an alternative facility should be provided for customers. The customers who are loyal to the facility may be forced to leave if the whole facility is closed down for refurbishment thus, piece meal renovation should be done.
Loan request– the facility should make the loan request to banks but the capital structure should be considered as valuable since a higher debt will lead to the company’s insolvency. Currently, the company has a ratio of 0.37 :1 for debt to equity.
Reimbursement– it should be made when it is extremely necessary because most customers and employees may misuse the reimbursement policy.
Reference List
Hill, C., & Jones, G. 2011. Strategic Management Theory: An Integrated Approach. Boston: Houghton Mifflin.
Kotler, P., & Armstrong, G. 2009. Principles of Marketing. New York:Prentice Hall.
Kotler, P., & Keller, K. 2008. Marketing Management. New York: Prentice Hall.
Thompson, J., & Thompson, F. 2010. Strategic management: awareness & change. Andover: South-Western Cengage Learning.