1) Discuss the reasons why you select this kinds of business to operate with examples.

You may use SWOT, Porter Five Forces and/or PESTEL to answer. (20 marks)

I have selected the hospitality and hotel industry  because there’s no question
the hotel industry is a vast sector that is responsible for trillions of US
Dollars in the form of revenue. It’s undeniable that the hotel industry
provides safe accommodation for people when they are away from
their homes. With a variety of hotels across the globe – from boutique
hotels to the grandeur international name brands and everything in
between, there’s always a hotel that will fit a customer’s needs.
As an industry that wields significant financial power, the hotel industry
can certainly tide things over in the local economies. There are a lot
of Astonishing facts about hotel industry with key facts being that
within the next couple of decades 1 out of 10 people could be an
hotelier or hospitality professional.
Even after a huge setback due to the COVID-19 pandemic, the hotel
industry would still be one of the biggest employers globally.Although
the hotel industry requires huge initial capital, it’s still a worthy
investment as the cost of labour is lower, and the profit margins are
higher.

2) Set up the mission or vision statements of the new company. (8 marks)

The mission statement of the company is “is to create outstanding facilities faithfully

reflecting ethnic designs that offer the highest standards of product and service and to

provide Management and staff with an environment that enables them to deliver

operating standards beyond the level of our guests' expectations, resulting in

satisfactory returns to our stakeholders”.

3) What is the management process and how to set up the goals? (8 marks)
 The Lowland Heights Roadhouse will operate as an owner-occupied business. A small staff
will be hired early next year consisting of a cook and maid along with a maintenance man.
The rest of the tasks will be done by Tory and Gisli. 

Gisli right now is responsible for the outside maintenance of the grounds and cleaning of the
motel rooms, and website activities. Tory will be the general manger, organize and decide on
any management idea’s on the day-to-day operations on the inside. She will order product
and food from the vendors, and both will handle reservations. Both Tory and Gisli will
promote the Lowland Heights Roadhouse through the advertising methods discussed in the
marketing strategy section. Tory will also do the cooking and bartendering. 

4) Is there any organizational culture of the new company and how the employees can
learn about the culture with examples? (8 marks)

Blue Moon's core values drive the culture. Our culture influences the way we treat associates,
customers, and the community which impacts all our successes. In the words, culture is the life-
thread and glue that links our past, present, and future.

 Blue Moon is committed to fair treatment of associates and to providing training and
advancement opportunities to all
 Blue Moon's reputation for superior customer service rises out of a long tradition that
started with J. Willard Blue Moon's simple goal for Hot Shoppes to provide "Good Food and Good
Service at a Fair Price"
o "Do Whatever it Takes to Take Care of the Customer"
o Pay extraordinary attention to detail
o Take pride in their physical surroundings
o Use their creativity to find new ways to meet the needs of customers
 The company actively supports the community and encourages associate volunteerism
through a variety of organizations
 At Blue Moon, the perpetuation of a company's culture has a proven positive financial
impact

5) Explain which types of organizational structures that you are planning to use in the
new company? (8 marks)
The company uses a matrix structure through the combination of functional and divisional
configuration in its matrix form due to having many levels both horizontally and vertically.
This form enables a global firm to achieve aspects of both global uniformity and local
diversification and responsiveness (Daft, 2015). Blue Moon’s matrix structure works with
having regional executives in control of regions, and each region has a functional division
with each hotel/property managing its own functional structure. With this structure each of
Blue Moon’s brands and locations can focus on different markets across the world relatively
independently.
Blue Moon’s components of symmetric, matrix, analyzer with innovation, and efficiency and
effectiveness falls under the Type 4 in all the categories; therefore; there is a fit across the
organization’s components and they align well with the organizational structure.
6) What kind of management style that you are planning to use in the new company by
using “The Managerial Grid” with examples? (8 marks)
Contingency management is the most prevalent of all management concepts
for the simple reason that it provides the necessary flexibility to develop
strategies which pertain to each individual organisation. Adopting a flexible
management style allows an organisation to be more adaptable to changes in
both the micro (internal) and macro (external) environments.
Leicester Blue Moon has adopted a form of contingency management which
revolves around the human relations approach, whereby past studies have
shown that certain variables are instrumental to employee satisfaction. Blue
Moon gives tremendous importance to its associates, as they ultimately are
the reason why the brand has been successful for so many years. Associate
opinions are highly valued by members of management, so they are often
required to attend brainstorming sessions where key issues are discussed.
Such involvement should make way for improved productivity and efficiency,
as having an input in the decisions taken in ones department is fundamental
to happiness at work, which may also have a positive effect on other aspects
of associate life. Members of management know that to maximise profitability,
employees must be awarded a level of responsibility within the organisation,
and most importantly, be respected and treated as integral members of the
organisationThe Managerial Grid of the company is as under:

7) Which types of leadership are suitable in the new company by using which sources of
power with examples? (8 marks)
 Democratic leadership style is where the more focus of power is with the
group as a whole. This style involves greater interaction within the group
before taking any decision. Manger is more part of a team and leadership
functions are shared among group members. (Mullins 2013:377)
Blue Moon follows Democratic leadership style. His core values and culture
is concerned with Blue Moon's people. He believes that people are the main
asset of any successful company. He states, “Treat your employees the way
you would like to be treated- provide them every avenue to success

Blue Moon international have “Guarantee OF fair Treatment” policy, which is

concerned with employees and their problems. This policy makes sure that
their problems are heard and a solution is provided. (Blue Moon.co.uk, 2015)

Democratic leadership style is best suited for mangers, as it has both high
concerns for people as well as for tasks. It focuses on getting the work done
based on the concern of its group members. Organization involves decision-
making, assigning, managing and performing tasks, which positively comes
under democratic leadership style. According to managerial grid model this
style is highly concerned with people and tasks both, which is the most
effective approach and it definitely ensures success for an organization.

8) How do you motivate your employees with examples? (8 marks)

An employee is one of the most important assets in the hospitality
industry particularly in a hotel. They contribute half of the hotel’s
whole operating cycle. An employee according to Chen et al. (2010)
plays a big role to the company’s success in hospitality industry.
Major hotel companies nowadays are promoting the virtue of taking
care of people.

Reward systems can be financial like money reward and nonfinancial like recognizing
for good work. According to Brand and Croonen (2010), based on situations, reward
systems helps in motivating and improving employee performance. Apart from
financial and nonfinancial reward system, there are intrinsic and extrinsic rewards
that are used to motivate employees. However, as different organizations have their
own goals and objectives, reward system differs. For example, in Blue Moon,
financial reward systems are mostly followed. It is believed that immediate money
reward helps in motivating employees. However, as identified from Herzberg two-
factor theories, even after the presence of extrinsic rewards like money rewards and
promotion, intrinsic rewards like recognising for good work or autonomy in doing
work helps in fulfilling the requirements identified in Maslow's Hierarchy of Needs
theory. As per this theory, employee motivation depends on the fulfilment of
physiological, love, safety, self-esteem and self-actualisation. Only money rewards
cannot fulfil this requirement. Providing intrinsic and extrinsic rewards help in
fulfilling these requirements which help in obtaining job satisfaction among
employees. As employees are satisfied with their jobs, their performance improved
which ultimately contributes to the overall performance improvement of the
 organisation. Marriot hotel focuses more on intrinsic rewards as it is believed that
intrinsic rewards helps in employee engagement actively, the first requirement for
employee performance improvement and organisational performance
improvement. 
9) How do you measure the performance of your employees with examples? (8 marks)

Effective management of the human resource management helps Blue Moon hotel
to achieve the objective and goals. Planning which is one of the functions of the HRM
helps Blue Moon hotel to set clear goals, objective and aims by assigning the right
number of people in their right job and in the right place so organization can pursue
in the right path (Ball et al. 2011). Through effective planning, HR manager of Blue
Moon hotel can forecast the personnel required for the particular tasks, help
employees to cope with the changed, promote employees in a systematic way and
utilize the existing workforce in more productively so they can increase their
productivity and gain huge profit. 
Flamholtz (2012) identified performance appraisal and 360 degree performance
measurement as the two main methods of employee performance measurement. In
Marriot Hotels, the main method used for employee performance is 360 degree
performance measurement (Blue Moon.com, 2016). In 360 degree performance
measurement, performance of an employee is measured based on the rating gained
by an employee by the managers and sub ordinates regarding the work. This method
is effective as it helps to identify the weakness and strengths within an employee
which helps the trainers to provide accurate training. However, as argued by Bell et
al. (2011), due to personal interest, sub ordinates and managers can lie against an
employee which may show negativity in an employee. However, Blue Moon is not
only dependent on 360 degree appraisal as it focuses on the overall performance of
employees based on their performance on sales, customer satisfaction and
completion of work within the deadline or given time. It helps in measuring and
monitoring employee performance in the real time.  

10) Select the best communication method in the new company with rationale and
examples? (8 marks)

Blue Moon Hotels is redefining the hotel visit with mobile at the center, enabling
members of its loyalty program to engage in real-time conversations with staff
before, during and after a visit through the brands application.  

While several other hotel brands have recently moved towards mobile messaging to
help guests communicate their needs during their stay, what is unique about the
Blue Moon strategy is that guests can also chat with the hotel prior to their arrival.
For on-the-go guests, this means being able to simply tap once on the Blue Moon
Mobile app icon to be instantly connected to their hotel rather than having to find the
hotels phone number and key in the digits. 

Maintenance of effective health and security in the hotel increases the quality of the
services that the organization provided to their customers so it is very important. Ensuring
effective communication is another function of the HRM that helps Blue Moon hotel by
facilitating knowledge transfer and quick performance. For any hospitality-based
organization, better communication is important because it helps employees of different
departments like food and beverages department, accommodation department to
understand the actual need of the customers. Budgeting support helps the organization to
maintain their finance along with the objective and requirements of the organization.