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Case Number 2

The owner of a 66-room hotel is new to hotel business. He had a full time sales
manager and he was also paying a consultant a monthly retainer plus commission to
boost sales. The hotel was barely profitable.
I. Title-
Small Hotel Turnaround

II. Executive Summary

A new 66 room hotel is now trying to make name in the hotel industry. He has
a strong force of sales manager and consultant to boost sales. This establishment
is starting to creates its own market strategy to compete and keep pace to many
other competitors. But one thing that they should remember is they are new in
the industry. What makes them different and profitable than the other existing
hotels in the past 5 years in the field.

III. Time context


(undated)

IV. Viewpoint
The manager
Responsible for applying marketing strategies and directing the hotel
Responsible for putting up sales plan through out the year
Responsible for Guiding the sales team accordingly
Responsible for identifying new opportunities

V. Statement of the Problem

 What are the possible challenges to owners those new in the hospitality
industry?

VI. Objectives
Every business that just beginning he or she really knowledgeable and passionate about
something, there is a lot of consideration to take before going to road of success. He
or she has the best sets of subordinates that would help him or her in building up the
business.

 Generate Maximum Hotel Revenue


 Achieve Maximum Hotel Profit
 Boost Food and Beverage Revenue
 Optimize Food and Beverage Profit
 High Customer Satisfaction
 Satisfied Employees
VII. Areas of consideration

a. Internal forces strength weakness


management
 Planning
 Staffing
Human Resource
 Skilled employee
 Friendly staff
Marketing
 Good quality service
 Good food
Finance resources
b. External factors
 Economic
 technology
 competitive forces
 demographic

VIII. Alternative courses of Action (ACA)

- ACA 1 Globalization
Advantages
1. Larger market
2. Boots the economy
3. Technology advancement
4. More opportunities
5. Boots the travel industry
6. Variety of international services
Disadvantages
1. Language barriers
2. Cultural barriers
3. Seasonal employment
4. Developing countries
5. Increase crime rate
- ACA 2 technology advancement

Advantages
1. The do-it-all remote (room personalization)
2. Self Service Concierge
3. Smartphone keyless room entry
4. Digital Door Viewer

Disadvantages
1. Losing job opportunity
Criteria ACA 1 ACA 2 ACA 3
Capital Requirement 1 2 1
Ease of 1 1 1
implementation
profitability 3 3 4
Market impact 3 3 2
Relative resistance 1 1 1
total 9 10 9
2. Technology deficiency
3. More expenses

- ACA 3 Hire for skilled accountant

Advantages
1. Organize accounting department
2. Has experienced managing a hotel business

Disadvantages
1. Salary expense

IX. Decision Matrix


5- most likely
4- more likely
3- likely
2- less
1-unlikely

X. Recommendation
I recommend the ACA 1 because of its advantages

XI. Action Plan

The management should provide fund in investing new technologies as soon as


possible. Communicate to the employees about putting up additional technologies
in the hotel to.

XII. Budgeting Requirement

Task/activities person begin date end date costs


responsible
Investing manager 12-21-18 01-21-19 800,000
technologies