The Squire

Hotel Group
By: Justin Rebello

Performance Measure
The objective of the company is to strengthen its
existing market position
The head office
Makes guidelines for the hotel
Analyze whether the financial targets are
achieved by the hotel managers annually
To measure the performance of the hotel, the
head office visits the hotel once or twice a year
The link between the head office and the hotel
managers is that they use the guidelines made by
head office to set staff levels and wages for the
hotel.

Performance Measure

Hotel
The hotel managers report performance
to the group monthly in terms of:

Occupancy percentage utilization of room

Profit
Staff costs
Food costs

The senior manager uses the report

made by hotel manager to drill down to
the costs of individual people and meals

Performance Measure

Restaurant
In order to keep the budgets set by
head office, the managers evaluate
their job in terms of:
Menu planning
Purchasing
Staffing

The link between the restaurant

manager and the hotel manager is
that they report food costs and staff
costs weekly to the hotel manager

Strategic linkage model

Development

Operational
Financial
External
To strengthen its existing market

High level of
position
performance
Healthy

Low staff
Head office
turnover
rate
Hotels

Premium fee
in the peak
season

Restaurants High
quality
food and
service

financial
condition

Meet the
target

Affordable
price

Major
expansio
n plan
Better
personal
relationship
with local
firms

More
range of
meals

Customer
loyalty

Customer
satisfacti
on
Requirement
s of the local
community

The senior managers ability

Yes, the senior management is out of touch with
reality. Because :
They are not concentrating on the changing
demands of the customers.
They focus more on budgets, costs and
profitability rather than the quality of the service.
They dont provide complaint or suggestion forms
in the bedrooms, because they think that would
drive the customers to complain
They do not document the results of the
indication from guests about their performance,
because they assume they clearly know what is
going on.

Suggestions
The company should not just fire a manager because of
not achieving the financial targets.
The company should not only focus on being cost
effective but pay more attention on service quality.
The head office should conduct mystery audits.
They should conduct audits more than twice a year
The top management of the company should update
their knowledge on the current demands of the customer
The company should launch a survey to know the
changing demands of customers, in terms of
Speed of service
Changes in diet
Interesting range of meals
The company should consider to expand their brand
because expansion supports them to reach at a higher
market position.

Reference
Johnston , R., Clark, G., & Shulver,
M. (2012). Service operations
management (fourth ed.). Harlow,
England: Pearson Education
Limited.