Académique Documents
Professionnel Documents
Culture Documents
Prepared By
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Mohammad Anisuzzaman
Prepared for
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Edexcel Level 7
Date: 09/06/2010
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1.0 Introduction
The strategic issue shows how feasible a new hotel can benefit the hotel market and
customer satisfaction via strategy, research, and execution of promotion. The hotel
will be placed within Weston-Super-Mare due to the amount of visitors it receives
every year, and creating a deal with the local theatres, allowing those who are staying
at the hotel will receive discount on theatre tickets, which could consist of up to 40%
discount. This is to give a serious competitive advantage over the competition, to
develop further to retain consumers, and will benefit by getting known, and will
eventually increase profitability. “A 5 per cent increase in customer retention could
result in increased profitability of between 25 – 95 per cent” (Reicheld, 1996). This is
about having a focus strategy on consumers, once developed, then other developments
and strategies, would occur to strengthen the business further.
Critically review the hotel industry, apply strategies, to research and listen to
consumer’s needs and wants. This would have a specific focus on retaining
consumers, and providing a strategy of overcoming predicted challenges and to
develop realistic financial assumptions and financial plans.
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2.0 Objective:
Plan - laying out an agenda or scheme of action. This would entail knowing the
organisation’s position or intended position in the global market.
Ploy – having a game plan or method for carrying out the plan of action.
Kotler, Bowen and Makens (2003 Marketing for Hospitality and Tourism) define
strategic planning as the process of developing and maintaining a feasible fit between
the organisation’s skills and resources and its changing marketing opportunities.
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When analysing the information of the labour market statistics, it is noticeable that
Royal Garden Hotel has explored national and local labour markets in relation to its
workforce, which can be used in the nearest future. The relevant labour market trends
are very important in human resources planning; because Royal Garden Hotel has to
plan how they go on to conduct new recruitments, hiring the right people suitable in
the labour market. The main initiative of Royal Garden Hotel using labour market
statistics is to plan ahead of their current competitors and rivals. Therefore the Human
resources will be able to forecast and carry out projections of its future staffing needs.
By carrying out this, Royal Garden Hotel can develop the right strategies for
recruitment, training and development of its employees.
They use labour market trends, such as external labour market that show the amount
of vacancies in a job centres, if they can see if they are able to plan to recruit.
By looking at the availability of skills, Royal Garden Hotel can predict whether their
future plans to employ certain number of people with certain skills can be attained,
depending on the availability of workforce. Once Royal Garden Hotel has decided on
the number and type of employees it needs in future, the next step is to ensure if they
have the right people at the right time, to meet the work force planning requirements.
Before Royal Garden Hotel decide to recruit any employees externally they need to
consider whether they have the suitable candidates internally who could do the job
efficiently. By doing this Royal Garden Hotel are saving money and time by
shortening the process of recruiting. Recruiting internally saves time on advertising
and analysing the candidates, they will also take sometime before the new employee
adapts to the working environment, therefore internal recruitment provides a lot of
advantages. However, if the job on offer is highly specialised then the option of
suitable candidates that match the criteria are much smaller. The personnel can do
this by sifting through employees’ documentation that may contain past experience
and skills gained before joining the company and appraisal reports.
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Royal Garden Hotel is one of many hotels that ask employees to complete a ‘skills
questionnaire’ to see whether they possess the required skills to take up a vacant job.
A skills questionnaire may also be of help to the Human Resource Department to
identify possible mentors and to plan training events if skills shortages are identified.
This information is of use to the Human Resource Department when deciding whether
to advertise internally. (Unfortunately it was not possible to gain a skills
questionnaire from Marks and Spencer).
• Skills analysis
• Performance results
• Promotion potential
• Staff turnover
This figure will give a broad overview of the numbers in Royal Garden Hotel who
already possess certain broad category skills, for instance in a Premier division
football team this could be the number of strikers, midfielders, defenders or
goalkeepers. Or it could identify those who already have Premier division experience
and those who are novices at that level.
It may be helpful to identify the current skills held by the labour force and see how
many of these are transferable (a skill used in one particular job may be transferable
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to another job). Looking at current available skills can help planning in order to
predict how much training will be needed for future employment and whether any
training or development will be needed at all.
Royal Garden Hotel needs to be sure it has the right number of people available at the
right time but also with the right skills. The hotel, therefore, needs to assess its
present supply of skills across the company’s workforces and to identify the sorts of
skills it will require in the future.
A skills inventory of current employees will indicate those who have received recent
training and those who will require training. It may be possible to meet the human
resource requirements of the organisation by training and developing current staff
rather than recruiting externally. (This is often a cheaper option and also helps to
motivate people who are already working for the company).
Royal Garden Hotel will want to gather information about the level of performance of
various categories of current employees. This sort of information may be collected in
a quantitative form (e.g. numbers of items produced of acceptable quality, number of
rejected items because of poor quality etc). In addition information may be collected
that is of qualitative nature (e.g. information from appraisal interviews).
This is a very important factor for Royal Garden Hotel because it is possible to have
too many experienced workers and too many inexperienced workers within an
organisation.
If Royal Garden Hotel has too many experienced workers there is a danger that they
will retire at similar times leaving the organisation in a chaos to sort out by recruiting
more staff with no experience. It is therefore important for Royal Garden Hotel to
have a workforce of mixed ages so that the danger of experienced workers retiring at
the same time is avoided. If the organisation has too many inexperienced workers it
may show a slow progress of advancement in the business objectives which may
influence employees to quit their job and look somewhere else offering them more job
satisfaction.
Staff turnover should be analysed in order to identify the reasons people leave Royal
Garden Hotel and to help it forecast future losses. A degree of staff turnover may be
beneficial to the organisation, as fresh staff can be recruited, promotion channels may
be opened up and it may allow for natural wastage when Royal Garden Hotel is trying
to reduce its workforce. Too high a level of staff turnover will mean that there will be
high additional costs of staff replacement and recruitment, additional training costs
and disruption to the quality of service or to production.
Leadership means working with and through people by providing them with a vision
of the future which is meaningful to them and motivating. Leadership is both strategic
and pragmatic and encourages all members of a team to deliver their best as an
individual and as a team member. By having a good leader means more work will be
done and there will be a high level of productivity. Being a leader does not necessarily
mean being a manager. Mangers work to carry out aims of the business the leader
intends to make new aims and change old ones and take upon new courses of action.
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Leaders provide that bit of encouragement into a team by keeping them on their feet,
setting each individual aims, plan what the staff need to do in order to achieve the
goal and keep the manger happy and leaders also have problem solving mind as they
always find ways to solve problems to improve even better on their work and also the
work of the team. A leader works with others to make changes to make a difference
within the business.
There are following different styles in which a leader may work in, it are the style that
suits them the best and the style that keeps the team running in all businesses, and
these styles are:
Democratic
In a Democratic style, the manager of Royal Garden Hotel allows the employees to
take part in decision-making: therefore everything is agreed by the majority. The
communication is extensive in both directions (from subordinates to leaders and vice-
versa). This style they particularly use when complex decisions need to be made that
require a range of specialist skills: for example, when a new system needs to be put in
place and the upper management of the business. From the overall business's point of
view, job satisfaction and quality of work will improve.
Autocratic
Having said this, it becomes very essential to study the factor that helps the managers
to maintain a proper human resource system in the organizations. Human resource
development is that tool that helps the Royal Garden Hotel management to keep its
human resource always at get- set- go stage. In other words, Human resource
development (HRD) is a function of HRM, mainly concerned with training and
development of employees to ensure that organizations have adequate human
resources with needed capabilities.
Strengths of the Royal Garden Hotel is having a variety of rooms, several conference
rooms, which are hi-tec, high quality service, training programmes for staff and
effective strategies in place. This will help to retain consumers and with research on
consumers and competitors, the business will be able to enhance finances. “Firms that
generate disseminate and meaningfully respond to market intelligence and planning
inputs are likely to enjoy enhanced financial performance”. (Jaworski and Kohli,
1993).
Weakness of the hotel is mainly signage, as it is not cheap and processes though the
hotel mangement can take time. Other weaknesses are finance. The hotel will be
seeking finance from banks and investors, to help start their business perfectly.
“Such firms, which generate valuable knowledge about both customer preferences
and competitor intents by integrating planning and intelligence inputs/views, can
optimize the fit between their capabilities and external opportunities and thus achieve
superior performance” (Novicevic et al, 2004)
Opportunities for the Royal Garden Hotel is developing links with other attractions,
to help out in further projects within the town especially with the lead up of the 2012
Olympics as this will help to bring in more custom and also benefit the local
attractions. The Euro is becoming stronger against the Pound forming an era of an
affordable England for international tourists, which helps to have the opportunity of
develop a good financial stance within the market. According to Day and Nedungadi
(1994) the opportunities are “intended to provide options for the firms to exercise in
order to maximize the fit between its capabilities and future opportunities”.
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Threats for the Royal Garden Hotel are the competition as they will up their game to
ensure that a new business does not succeed, especially within a recession. The local
authority will be a threat via planning permission may not be given for certain
development plans. The idea of these threats is to acknowledge them until resources
allows them to be minimised. According to Liedtke (2000) “synthesizing process
creates value, not only in aligning components, but also in creatively re-arranging
them”.
Political issues for the Royal Garden Hotel is ensuring all licences required are put
into place, this includes selling of alcohol, health and safety – fire exits, supervision
of swimming pool, CBR checks, hygiene certificates, different licences for opening
and closing times of facilities. Grants and funding is also an issue as government
have made several ways to get a hold of funding for Royal Garden Hotel, via the
banks. “Executives evaluating potential mergers or acquisitions must consider
antitrust suits and other legal matters, and political issues in addition to financial
aspects” (Keeney, 1982).
Economical issues for the Royal Garden Hotel getting a hold of loans from the banks,
but a main concern would be interest and inflation rates, after the current economic
climate of the recession, causing unnecessary leakages within the finance budgets of
the business. “Future implications of alter- natives now being considered should be
accounted for in the decision-making process” (Keeney, 1982).
Sociological issues for the Royal Garden Hotel is more people are staying at FR’s
more and cheaper holidays are making it harder, therefore gathering and analysing
data is imperative to success, for the business. “In any case, the process of obtaining
and combining the available information is a difficult task that requires balancing all
the pros and cons” (Keeney, 1982).
Technological issues for the Royal Garden Hotel are costly when technology
advances are made, and systems have to be updated. This involves changing all
computer systems, reprogramming, and retraining of staff. “Different individuals,
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Each business wanting to expand will have a choice of marketing strategies. These
were arranged in a matrix by business writer Igor Ansoff. The matrix plots how safe
or risky various marketing objectives are and can be used by a business to judge the
likelihood of success. The marketing strategies of Royal Garden Hotel have followed
the following matrix system:
Highest risk
to establish the new product. However, it will benefit from carrying an existing brand
or reputation.
HIGH MARKET
Stars Problem children
GROWTH
LOW MARKET
Cash cows Dogs
GROWTH
STARS – These products have a high market share in a fast-growing market. They
may have been the first of their kind – an innovation in a ‘hotel’ market – in which
case they could have been launched with little in the way of marketing expenditure.
However, they will need high marketing and advertising expenditure to keep them
competitive as new entrants, attracted by their success come into the market. One
example is the Royal Market Hotel, the first really gorgeous health club.
CASH COWS – Every established business longs to keep or develop at least one
cash cow. These products have a large market share or market leadership of a mature
or slow-growing market. Cash cows represent established product lines which need
little in the way of marketing expenditure and which produce cash which can be used
to support other products. Royal Garden hotel has held its market leadership for 23
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years and provided the cash for the launch of many new product lines and
innovations.
DOGS – These could be problem children who have not made the grade or potential
stars in a market that has failed to materialise. They are products with a small share
of a slow-growing market and probably cost more in marketing and support to
maintain their position than they actually return to the business.
The Royal Garden Hotel recently introduced a loyalty card scheme, which allows
guests to register via Amateo and then for every pound they spend, they get l0p worth
points, this can be spent on any item purchased in the hotel and gives extra value for
money. The loyalty card scheme is run off of mix of Amateo and PMS to constantly
update with every penny spent, while also matching details of customers to their cards
using complex relational databases through the two programs.
The impact of ICT does not only mean ICT used by the hotel, it means how any ICT
affects it and the invention of laptops has immensely changed the hotels priority and
ways of working. With most businessmen now owning a laptop, the hotel realizes that
guests will want to work on it in their rooms; cleverly, the hotel has decided to hugely
extend their room service menu, this has obviously been quite costly, but room
service costs more than the restaurant so they will make their money back. This way
customers can use their laptops while eating an evening meal managers at the hotel
also have their own laptops, so they have far more free time and more freedom of
movement as their computers come with them.
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The whole department of Royal Garden Hotel attends these meeting and they happen
at least once a year. While these meetings happen, someone else has to control the
department as the people that usually run the departments are in the meeting. These
meetings happen between April and June because of the financial budget. In these
meeting, they discuss the budget, department goals, and budget goals. The department
head does the meetings and the general manager does a little presentation in these
meetings. The benefits of this are that everyone knows what’s going on, improve
financial knowledge, discuss the problems, are being involved in the running of the
hotel, and makes them happy.
These happen once a month unless certain standards of the hotel say they have to have
them more recently. They are held so they understand their objectives for next month
and so that previous months objectives are met. They communicate verbally and
sometimes written in the meetings. The heads of departments and the supervisors
agrees objectives of the department.
These are what the customers fill in to tell the hotel if their stay was a good one or
not. This information comes from head office and it comes in a printed information
style. Heads of departments look at good and bad points and then tell their staff in the
meeting verbally at how well they are doing. This builds on moral and this can show
the poor areas so it can be de-motivating.
Weekly Bulletin:
The weekly bulletin comes from head office. It is printed and regarding the general
hotel. Any relevant points that effect the department will be discussed at the briefing
in verbal communications. The company information is included on it.
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Is weekly and printed, goes on notice board and is sent from head office. This shows
how the hotel and departments are doing in their budget. Each month the figures are
sent to all staff with a comment from general manager. IT is used to maintain
financial awareness of the staff. It identifies shortfalls of finances so that immediate
action can be taken.
Operations Meetings:
These happen every morning Monday through to Friday at hast past nine. There are
also ops meetings at 2pm on Thursdays. These meeting are held for shift changes so
that everyone knows what is happening. This is so everyone is aware of the day’s
events and activities coming up in the week and any dodgy customer comments. The
person that chairs the meeting can either be the hotel admin or the C&B manager
(conferencing and banqueting). Printed materials are used, these are called
functioning sheets. This over views of the weekly events and what is happening. It is
performed with a verbal communication. They are given the right information so that
the events are run smoothly.
Product changes:
Different products are the rooms, facilities, spa and other things within the hotel.
Product changes are printed off from head office and are displayed on the notice
boards. Need to be aware so they know about the changes in products other wise the
staff members would get unhappy.
Personnel Information:
These are printed off monthly and displayed on display boards. Displays moves,
leaves, and new members of staff. This notifies what is happening within the
company. The reason for it is so that the staffs don’t feel been kept in the dark.
Royal Garden hotel look to give the customers the best they can. Good food, good
service etc. They try to deliver some factor with hope of bringing back the customers.
They know they are successful in this as they have a lot of customers. One of the
areas of the hotel is corporate which means it is a business. A lot of weekend break
people use the hotel as they have stayed there before on business and have liked it so
they go back. There is also a loyalty points system where the customer can save up
their points and get a special discount on the cost of the hotel. Another area of the
hotel is the wedding side of the hotel. This isn’t a repeat business but they still give
the best service they can. They do this, as they will get a good reputation. A lot of
these special events are local.
manager. If conflict is disregarded, it can slow down the achievement of goals. Properly
in opposition can rise above their individual viewpoints and see possibilities of working
together in a “mutually supportive” ways. Each manager that was interviewed cited
Hotel, all managers manage conflict using the same tactics. They resolve conflicts by
Garden can resolve differences efficiently, effectively, and fairly. If a conflict cannot
reach the area of potential agreement; the individual department head forwards the case
to the HR Department. HR will evaluate the situation and take the necessary action,
many organizations like Hilton believe that their goal is to achieve its customers’ loyalty.
Royal Garden Hotel serves it’s customers by addressing the customers needs and set their
environment in such a way that their customers always leave the hotel with a sense of
satisfaction. They believe that in an industry like that of hotel industry “the winners -
those companies who can deliver for their guests, customers, employees, shareholders and
owners - will be those with the best brands…the best locations…size and scale…the best
people…attractive marketing programs…and financial strength. Few fit the bill. Royal
In order to ensure this type of quality, Royal Garden tracks internal and external
performance along with customer satisfaction and loyalty through a number of processes.
They follow the Strategic Performance and Management System, which uses the
Balanced Scorecard and the Customer Satisfaction Tracking System (Exhibit J). They
also use OnQ, which is an IT driven tool. This tool helps Royal Garden Hotel to keep
track their guests and their preference from all over the nation. OnQ is extremely helpful
in judging the level of satisfaction that was achieved by staying at Royal Garden Hotel.
Royal Garden Hotel also established an institute called the Royal Garden Quality Service
Institute that provides intensive service workshops. It also educates each employee on the
hospitality programs and service philosophy. They also have an ongoing cultural
philosophy called “the 100% Satisfaction Guarantee” through which they “commit to
high quality accommodations, friendly and efficient service, and clean comfortable
Conclusion:
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connected with the hard variables and soft variables of the Seven S Model. Royal’s
friendly, “one big happy family” culture motivates team members to work effectively
together and remain with the organization. All the managers effectively lead their team
technology tools. Although Royal Garden Hotel’s organization is aligned with the Seven
managers. With the employees giving feedback to managers, a closer network and
Hilton should also involve their employees in the decision making process. This will only
lead to a stronger staff with more motivation and job satisfaction. In conclusion, we feel
that Royal Garden Hotel has aligned the Seven S’s in their organization. It is evident that
their management works as a system and their vision is aligned in every aspect of the
company.
References:
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Lewis, Robert C. and Richard E. Chambers. Marketing Leadership in Hospitality. New York:
Van Nostrand Reinhold,1989.p. 42
Cullen, Noel C. Team Power: Managing Human Resources in the Hospitality Industry.
Lockwood, Andrew and Peter Jones. People and the Hotel and Catering Industry. Cassell
Publishers Limited, 1984. p. 29
Jones, Christine and Val Paul. Accommodation Management. London: Batsford Academic
and Educational, 1985. p.127
Forrest, Lewis C. Jr. Training for the Hospitality Industry: Techniques to Improve Job
Performance. East Lansing: Educational Institute of the American Hotel & Motel
Association, 1983. p. 11
Royal Garden Hotel Back Bay: Team Member Handbook.” Royal Garden Hotel.
Forrest, Lewis C. Jr. Training for the Hospitality Industry: Techniques to Improve Job
Performance. East Lansing: Educational Institute of the American Hotel & Motel
Association, 1983. p. 36
Rutherford, Denney G., ed. Hotel Management and Operations. New York: Van Nostrand
Reinhold, 1995. p. 96
Cullen, Noel C. Team Power: Managing Human Resources in the Hospitality Industry.
Upper Saddle River: Prentice Halls, Co., 2001. p. 239
Cullen, Noel C. Team Power: Managing Human Resources in the Hospitality Industry. Upper
Saddle River: Prentice Halls, Co., 2001. p. 239
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