Discuss about Hotel Business………………….

TABLE OF CONTENTS

1. INTRODUCTION…………………………………………………………………………….3
2. CUSTOMER TARGET…………………………………………………………………3

2.1 TABULATION……………………………………………………………..4

1. POSITIONING STATEMENT…………………………………………………………4
2. AN AUDIT OF HOW WELL THE BUSINESS DELIVERS ITS POSITION…………4

4.1. PRIMARY ACTIVITIES……………………………………………..……5

4.2. SUPPORT ACTIVITIES……………………………………………………6

4.3. GRAPH………………………………………………………………………7

1. LINKAGES………………………………………………………………………………7
2. MANAGEMENT AGENDA …………………………………………………………….8
3. REFERENCES…………………………………………………………………..………10

INTRODUCTION

Hotel business is within hospitality industry which consists of broad category of fields within the service industry. It includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry (Myers, 1995). Hotel business is wide and has a large customer base worldwide. Because of the large customer base hotel business can be profitable due to large sales volume. The hotel business also has a lot of competition as several hotels are being set up to cope with the ever increasing customers.

CUSTOMER TARGET

The customer target for the business is business travelers. Business travelers need better service level, quality food, adequate security, reliable internet connections and good telelecommunication services. They want the business to be situated in a location with good infrastructure (Myers, 1995).

Table Showing customer needs and their weights

Customers needs Weights (%)  Better service level 28 Quality food 24 Adequate security 15 Internet connections 15 Telecommunication services 8 Entertainments 6 Transport services 4

POSITIONING STATEMENT

In order to satisfy the customer needs in the business, I intend to employ porter’s generic strategy of differentiation. The business intends to develop unique products which are distinct in the market. The level of services to our customers is to be improved than our competitors. This will be done through training of our staff to handle customers as unique as possible. The business intend to offer quality and a variety of food, the food which we will offer will be different from those offered by the competitors. All of our products will be branded differently from our competitors.

AN AUDIT OF HOW WELL THE BUSINESS DELIVERS ITS POSITION

Using the framework of value chain, which is a model that helps analyze specific activities through which firms can create value and competitive advantage (Porter, 2008).

The primary chain activities

Inbound logistics; the business has developed a warehouse which is fitted with modern facilities to handle different input materials, both perishable and durable. The warehouse is large enough to handle input materials that the business can use for two weeks. In future the warehouse is to be increased to handle materials that can last for one month.

Operations; the business has 20 cooks, who are well trained and skilled. The kitchens have modern facilities to handle all food processing methods. The method and type of food to be cooked is based on the customer’s order.

Outbound logistics; the business has 40 customer service staff. The customer service staff delivers the food to the customer. They deliver food as per customer request. The food is served at the requested time and location by the serving staff. There are also food storage facilities for each customer.

Marketing and sales; the department of marketing and sales has ten employees who carry out various sales and marketing functions. Various marketing strategies are being used by the business to popularize the business. We carry out advertisement on a regularly using various channels i.e. media, internet, newspapers and through exhibition.

Service; the security around our premise is available throughout the day. Personalized security is given to our customer’s upon request. We have an all round power back up, which is capable of sustaining all the business activities in case the main power source goes off. We have telephone and internet connections in each room to facilitate the level of interactions within and outside our business.

The Support activities

Procurement; the purchasing of our output is done on a regular basis. Our aim is to have raw materials available at all times. The control of our inputs is such that at any other time the input stock available should be able to maintain our business for a period of one week.

Technology; we have a research and development department which regularly carry out market research and comes up  with unique ideas of how we can develop or improve our product. We have internet access in our business premise and also security surveillance equipments around the compound.

Human resource management; the human resource department do the recruitment of our staff. We recruit qualified staff, and retrain them to suit the unique business structure. We also have constant training of our staff based on the changing market trends, and customer’s tastes and preferences.

Firm infrastructure; the business a sound financial policy, all our payments are not on cash basis. The business also has a legal advisor who works closely with the management on any legal issues.

 LINKAGES

Market; Information on the business products is transmitted through the market and the business designs its products according to the customer’s needs. The business relies on market information from clients to design the best products in the market.

Supply chain management, these are activities which involves the interaction of a firm with its suppliers such as product quality, product development, and the sharing of product knowledge. Some of the materials which the business uses are from different suppliers, hence during the procurement process the business is linked to other (Kayakatuklu, Buyukozkan, 2010).

Product use, these are activities which relates to how the business customer’s uses its products. It involves outsourcing, management of customer networks, product testing and product development

End primary use, these are those activities relating to the product management after the customer is finished with it. It includes leasing management, product take back, management of secondary market, and recycling.

External networks are those activities related to the management and interaction of the external networks that may include other firms, educational institutions, communities, governments, civic organizations, and group of customers, which provide an opportunity create unique value.

MANAGEMENT AGENDA FOR THE NEXT 18 TO 36 MONTHS

Invest heavily in the business marketing; I will set a side a considerate amount of resources for the business marketing. The money allocated for marketing will be increased during this period of time; this is to ensure that our products are well known in the market. Various marketing strategies will be used, with internet based marketing given top priority. Some of other marketing strategies’ that will be employed includes use of media, organizing of marketing seminars in various parts of the country and abroad and attending various exhibitions to showcase our products.

The business will put a lot of effort in upgrading our products. The business will allocate a considerable a mount of the earnings towards market research and intelligence. The market research and intelligence will help the business gather information on customer tastes and preferences hence help in designing or redesigning our products according to customer needs. Security within our business premises will be given top priority. Our security staff will be trained on different security measures regularly and the premise will be equipped with the best security equipments available in the market. The business will also invest in training of its staff and manpower; the business will ensure that staff members are properly trained in their respective areas of specialization to enhance service delivery and customer satisfactions. They will be trained on the new customer trends, the ever changing customer tastes and preferences and service delivery. Investment in the information technology will also be a priority to the business; the business will invest in the recent technological advances to ensure that it is technologically oriented.

REFERENCES

Gary, G. (2011). Global value chains and international competition. 56(1), 37

Kayakutulu, G, Buyukozkan, G. (2010). Supply Chain Management. 15(2), 129-138.

Market Overview-Hospitality. (2011). Greece Tourism Report. 4, 29-32.

McPhee, W, Wheeler,D. (2006). Making the case for the value added chain. 34(4), 39-46.

Myers,N. (1995). Discipline of market leaders; choose your customers, narrow your focus, dominate your market. 120 (2), 186

Porters, M (2008).Contextuality within activity system and sustainability of the competitive advantage. Acadamy of management perspectives.22(2), 34-56.

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