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Holiday Inn

Holiday Inn

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04/20/2013

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7th Jan

,

2010

Rep ort Management

The University Of Lahore Lahore Business School LBS
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Submitted To: Maam Aqsa Submitted By:

No Name

Roll No

1.

Noor Ullah

BA-01083-148

2.

Adeela Zulfqar

BA-01083-129

3.

Shiza Khalid

BA-01083-166

4.

Naveed Latif

BA-01083-167

5.

Rashid Zameer Minhas

BA-01083-160

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6.

Waseem Aslam

BA-01083-156

Table of contents

Page No. Dedication……………………………………………….. Acknowledgement…………………………………….. 05 Objectives ………………………………………………… 06 04

Vision…………………………….. ………………………… 07 Mission …………………………………………………….. Company Introduction …………………………………. .08 Company History………………………………………… Planning …….……………………………………………… .09 Controlling……………………………………………….. .... 11 Organizing……………………………………………….. .. 12 Leading……………………………………………………….13 3| Page 07

Internal Analysis………………………………………………14 • • Value Chain Analysis Swot Analysis

External Analysis………………………………………………17 • • PEST-G Analysis Industrial Analysis

Conclusion…………………………………………………….20 Recommendations……………………………………….…21 Reference……………………………………………………..22

DEDICATION:

➢ Firstly, we thank Allah for giving us the strength for completing this job.
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➢ To all the people who prayed for us and sent us their best wishes and gave us the courage to keep going on and never break in the face of difficulties.

To our respected teacher Mam Aqsa without whose guidance this project could not have been completed.

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ACKNOWLEDGMENT:

Our teacher, Maam Aqsa, who provided us with endless and invaluable guidance throughout.

We thank the management of Holiday Inn for giving us their time and co-operating with us. They treated us with courtesy and provided us with all the information we needed.

We also thank all the individuals who have contributed towards the completion of this project.

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OBJECTIVE:

In this project we have tried to observe an organization and see how it is running. The main objectives were:

To practically observe the functions of Management. Find out how organization is controlling their external and internal environment. The efficiency of the company.

MISSION STATEMENT

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“THEIR MISSION IS TO CREATE QUALITY FOR THEIR CUTOMERS”

OBJECTIVES Achieve quality excellence and serve customers with quality products

Holiday Inn SHARED VALUES They value & respect the people. They communicate openly. They have integrity. They are committed to winning.

Holiday inn hotels, an over view:
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Holiday Inn is an international hotel and resort chain having hotels and resorts in every known big city in the present world. The head office of the Asian subcontinent is located in Mumbai (India). There chain includes  Intercontinental Hotels & Resorts  Crown Plaza Hotel & Resorts  Express by Holiday Inn  Stay Bridge Suites  Holiday Inn Express  Holiday Inn Hotels & Resorts. Holiday Inn Lahore started its operation and functioning in July 1995. Holiday Inn Lahore a perfect place comfortable and luxurious. Holiday Inn is a four star hotel. They offer a variety of services and amenities such as full service restaurants and swimming pools. Credit Card Guarantee Required For All Arrivals - Deposit May Be Required During Special Events. Holiday Inn Lahore, franchise of the Inter Continental Hotels Groups family is striving to achieve new landmarks on roads to success .They are always in rent less pursuit of excellence ensuring the social privacy of our valuables customers and guests .We know that they are always there to add value to our prestige and enhance our reputation in the world of care, comfort and hospitality. IHG is the world’s most global hotel company and the largest by number of rooms. The group has more than 3700 owned, leased, managed and franchised hotels and over 600,000 guest rooms across nearly 100 countries and territories. Their strategy is the aim to provide all their guest outstanding quality and comfort with genuine friendliness and professional warmth, surpassed by none. Holiday Inn is located in Egerton Road Lahore 25-26 .It is a 4 star hotel with all amenities of a 5 star hotels. It is conveniently located in central Lahore and is close to all business centers. At this time 400 employers are working, three shifts are changed. The Owner and Chairman of Holiday Inn Lahore is Khawaja Tariq Latif. MD is Khawaja Khurram.

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Holiday Inn Lahore has the following features:

           

120 Guest Rooms 8 Suites 15 Non-Smoking Rooms 68 Double-Bedded Rooms 52 Single-Bedded Rooms 1 special room for disables Downtown/City Centre 9 Floors Cocktail Lounge 3 Restaurants (china grills, Lahore gates& top roof barbeque) Airline Desk: World Travel Rental Car Desk: International Tours (PVT)

Functions of Management
• • • • Planning Controlling Organizing Leading

 Planning
Long range plan: • • The long term objective of holiday inn is to earn revenue. Becoming the leader in hotel industry in Pakistan.

Short range plan: • • The short term objectives are to provide courteous, friendly, caring and best services to its customers. Making guests feel welcomes by providing best services.

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To achieve short term or long term objectives plans are made. Planes regarding financial matters a made wholly by the executive management. To make a plan for achieving any short term objective the executive management takes decision from middle management and the employees as they have to play a huge part in achieving the desired objectives.

Budgets: Budgets are allocated to each department according to its requirement by the executive management. While allocating budgets the revenue earning departments as food and beverage and housekeeping are preferred. As most of the restaurants revenue is earned through these departments. The budget allocated is flexible to some extent as when any department has some new idea to implement instantly or the restaurant has to fulfill any standard of IHG urgently the some more budget is allocated to the needing department. Budget meeting is held once a year in May. In which last year’s budgets are reviewed and new budgets are allocated to each department. Only executive management is allowed to attend the meeting. Bench marking: As holiday inn in Lahore is a franchise of IHG (Inter Continental hotel group) which is an international group of hotels, so the hotel has to maintain the prescribed standards from IHG. Thus the bench mark for holiday inn in Lahore is the international hotels competing against IHG.

Contingency planning: The restaurant has contingency plans for every department. For example in HR department the contingency plan is that in case if the chief chef leaves the job for

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some reason or expires the restaurant will hire a trained chef from somewhere on contract basis until it finds a chef of its own. The advantages of making contingency plans are that: • • • Helps getting into a better position to cope with unexpected developments. Avoid the shock of complete surprise. Avoid halting of operations during emergencies.

Participatory planning: Restaurant involves its employees and staff in planning because they are the one who will be influenced by the plans. Its HR manager told us that involving the employees in planning and decision making is very important as whatever the plan is the employees have to finally work on it. And if they are involved in planning they will work with more efficiently and diligently.

 Controlling
Controlling means evaluating results and taking corrective measures against them. The restaurant practices control in every department. For employees, Employee appraisal form is filled by the supervisor after every 3 months evaluating the performance of the employee. If the supervisor feels satisfied with the employee then he is passed and if not then the employee is instructed by the supervisor until his performance is improved.

Types of control
Company practices feed forward, concurrent, and feedback control. • Feed forward control: In some cases the restaurant practices feed forward control for example: i. Installation of smoke detectors in every room. ii. Installation of splashier in every room. 12 | P a g e

• Concurrent control: The performance of employees is checked and evaluated as the work is done. If some employee creates problem action is taken against him. The rules and regulations for employees are like a hot stove. If something goes wrong at the employee side immediate action is taken against him. • Feed back control: When services are provided to the customers, after that if any complain comes to the management, the management takes corrective action after the problem has been created. This comes in feedback control. • Communication meeting: A communication meeting for hotel staff is held after every 6 months in which everyone is allowed to speak out his problems he is having with his supervisor, or the supervisor is having with the staff. After listening to all the problems the management takes corrective measure against it ensuring a friendly and flawless environment between worker and supervisor.

 ORGANIZING
Organizational structure:
The organization chart of the Holiday inn hotel reveals that the structure in the Hotel is:

✔ ✔ ✔ ✔

Vertical structure Centralized Power Defined reporting relationships Formal control system

These essentially indicate that there is:

✔ Routine tasks ✔ More formalization

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✔ Emphasis on rules and regulation ✔

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Selection of employees: Persons with best abilities are hired by holiday inn and they are trained according to their abilities to polish them into skills. This training helps the employees in their promotion and improvement in efficiency. Once the HR manager decides for a person through his interview and resume the decided work is put on a 3 month probation in which he is leaded monitored and inspired by his supervisors. His performance is evaluated every month, if the supervisor feels that the decided person is good for the job then he is selected otherwise his is given another chance or is simply rejected depending upon his performance. Division of work: The division of work for each worker is defined by his supervisor which he has to follow. A worker works two weeks in day shifts, two weeks in the afternoon, and two weeks at night. Every employee’s shifts are rotated in the mentioned manner.

 LEADING
Holiday inn leads, motivates and inspires its workers by providing them different incentives and fulfilling Facilities and Incentives: Holiday inn provides different incentives and facilities to its employees, such as Incentives: i. IHG has provided this opportunity to its every employee that he or she can stay at any LHG hotel anywhere in the world with most nominal prices, enjoying every facility provided. ii. An employee working for even a single minute over his shift is paid more than his co workers. Facilities: Facilities given to employees are: i. Subsidized lunch facility. 15 | P a g e

ii. Each employee is given 1 lunch break during his 9 hour shift. iii. 2 tea breaks are given to employees during their shift. iv. Facilities of lockers are provided to every employee. Due to the provided facilities and incentives the employees are motivated to perform the best. Salaries: The salaries given to the employees are according to their nature of work but holiday in keeps in mind, its competitors which are Pearl continental and Avari while deciding for the salaries and sets them more then what both its competitors are offering. For example: PC and Avari both are giving their waiters the salary of Rs. 7,000 while holiday inn is giving its waiters the salary of Rs, 8,000.

Training of labor: The employees are given training about their specific fields after every 6 months which increases their performance and learning.

 Internal Analysis
Swot Analysis: Strengths:
The basic strength of holiday inn resorts is appreciation of their guest and they get the feedback of their strengths through the comment card. i. Company Image

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Holiday Inn is a reputable organization and is well known all over the world. Perception is of producing a high quality product and services. ii. Quality Conscious Holiday inn maintains a high quality standard.

iii. Unique Architecture Holiday inn has unique architecture like roof top swimming pool. They have built holiday inn Lahore with high technical approach.

Weaknesses:
i. Cost of production: The cost of production has increased due to structural and administrative changes. ii. Budgetary constraints: Budgetary constraints have limited the advertisement budget for the company. iii. Parking place: They have no proper parking place and the parking area is away from the hotel building.

Opportunities:
i. New packages:

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Holiday inn has plans to launch low rate package just like PC (Marco Polo), which according to its experts’ calculations would gain a handsome market share due to its strong brand image. ii. Changing Social Trend: As in all over the world people are rushing towards quality which not only satisfy their needs rather also give them feeling of being elite, so holiday inn provide them not only satisfaction but pride as well.

Threats:
i. Competitors: The major threat they are facing that if its competitors like PC and Avari lower the rates or there service then they might be in trouble.

Value Chain Analysis:

Porter's Generic Value Chain
Inbound > Operations > Outboun > Marketing > Service > M Logistics d & A Logistics Sales R G I
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N

Firm Infrastructure HR Management Technology Development Procurement

The goal of these activities is to offer the customer a level of value that exceeds the cost of the activities, thereby resulting in a profit margin. The primary value chain activities are: • • • • • Inbound Logistics: the receiving and warehousing of raw materials and their distribution to manufacturing as they are required. Operations: the processes of transforming inputs into finished products and services. Outbound Logistics: the warehousing and distribution of finished goods. Marketing & Sales: the identification of customer needs and the generation of sales. Service: the support of customers after the products and services are sold to them. These primary activities are supported by: • The infrastructure of the firm: organizational structure, control systems, company culture, etc.

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• • •

Human resource management: employee recruiting, hiring, training, development, and compensation. Technology development: technologies to support value-creating activities. Procurement: purchasing inputs such as materials, supplies, and equipment.

External Analysis

Industrial Analysis:
Porter’s 5 forces model: Michel Porter’s 5 forces model influence Holiday Inn in the following ways: i. Rivalry: Competitors are the main force of porters five forces .Holiday Inn’s main competitors are the pearl continental hotel, Avari and other hotels in Lahore.

ii. Threats of new entrants :

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Competitive market has always threat of new entrants which makes the competition intense .For Holiday Inn nowadays this force is not too much because hotel business in Pakistan is going mainly in losses.
iii. Bargaining power of buyers :

For Holiday Inn the bargaining power of buyers is not much as Holiday Inn is a 5 star restaurant and customers cannot bargain about its payments.

PEST-G Analysis:

Political Factor:
i.

The changing of government once introduced Holiday Inn to use Kinley instead of Aquafina.

ii. There is often an agreement between the government and Hotels

that there people will stay in the hotel which have agreement with them, so changing in government influences this factor a lot.

Economic Factor:
i.

The increases in inflation rate in the economy the people in Pakistan have money but the value of money is less due to which there is gap in status. People who belong to Elite class only visit to their Hotel.

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ii. Economic conditions can greatly hamper the or strengthen the

growth of Holiday Inn, the recession can inhibit the Holiday Inn growth whereas the boom can lead the hotel to mounting profits.

Social Factor:
i.

People are status conscious and brand conscious in society due to which they are compelled to choose a multinational hotel for their stay.

Technological Factor:
i.

They have replaced conventional TV with LCD Monitor according to customer demand due to which they have to bear a large amount of customer.

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Conclusions:

The good side of holiday Inn hotel:
Regarding customer as the king. Adaptability according to the customer requirements. Use of technology. Maintaining the essence of a 4-star hotel. Expanding as required. On-line reservations.

The bad side of holiday Inn hotels
Lengthy recruitment process. High tariffs that tend to attract exclusive class only. Non diverse work force. Less percent age of women employees. Not involved in any corporate social responsibility

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 Recommendations:

The hotel should permit the employees to join the crew permanently, evaluating them after one month. The percentage of women employees should be increased without glass ceiling effect and discrimination. The hotel should diverse work force by outsourcing employees from other countries. The hotel has reasonable goodwill between its customers but it is not practicing any corporate social responsibility, being the part of society and working in the new economy the hotel should involve itself in some corporate social responsibility.

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References:

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