This is a report for the Directors Board of the Cosmopolitan Hotels, to identify the projection of improving the business of the Wheatley Park Hotel over the next year.

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INTRODUCTION

This is a report for the Directors Board of the Cosmopolitan Hotels, to identify the projection of improving the business of the Wheatley Park Hotel over the next year. After interviewed all the key people and a research through books, being the General Manager, I have the following analysis and recommendations, with a scope to get approval on investment proposals, which would further the business development of the Hotel.

. The Vision for the Hotel in the future in long term planning

Wheatley Park, as a country hotel, has the ability to provide services for both business and leisure customers. Her current situation of declining of turnover at a rate of 10% is the main issue we have to tackle by introducing new projects.

.1 Target

The first target is to increase annual turnover from £1.2m to over £2m in room lettings improving profitability by lowering the operating cost. The second target is to upgrade the hotel from 2 stars to 3 stars in one-year time. The plan is to have room refit first followed by building a well-equipped indoor swimming pool:

* After refurbishing, over two-third of the 100 bedrooms will be en-suited, assuming en-suite room rates between £55-£65 per night, with an average 60% occupancy, the annual turnover will reach £1.4m.

* The new indoor swimming pool will be in service in the following year. A recent survey has proved that the availability of facilities like swimming pool would bring a 20% up in occupancy. Continuously improving performance, effectiveness and providing leisure facilities, we will upgrade to 4 stars and raise the room rates: £75-£85 per night, annual turnover will achieve to £2.5m.

* We will offer 500 basic memberships that worth £500 each p.a. to local residents for using leisure facility which would potentially generate £25,000 extra profits p.a.

.2 Quality Policy Statement and Measurable Objectives

.2.1 Offering Quality Service

After doing some researches based on academic theories and practical results and interviews, Total Quality Management (TQM) is a way to create competitive advantage to give the best services to customers - we have to focus on the service quality offered to customers in the competitive hotel environment. The four key implications of TQM (Naylor, 1999):

* Involving everyone through term work, trust and empowerment

* Focusing on customers as definition of quality - customer survey, feedback and questionnaires

* Continuous improvement - set goals and incentives to be reached, ensure that the resulting ideas are put into actuation (Kaizen)

* Request input from employees and ensure top management commitment

.2.2 Measurable Objectives

Measure customer satisfaction by questionnaires, rate of customer returns, complaints and recalls. Also, services have to exceed customers' expectation and competition. Besides, we should receive customers' responsiveness and achieve productivity to improve and ensure product quality.

.3 Management Reformation

.3.1 General Management - Benchmarking

Marketing manager can check and compare the updated market information of hotel industry, while internal benchmarking may mean of raising overall organizational competence (Johnson & Scholes, 1997):

* The market segments and to explore new target customers

* How the different departments perform

* How the hotel marketing manager spends effectively to economize the cost

* Who are our competitors, their strengths and weaknesses

.3.2 Human Resource Management

The main target will be to reduce the high staff turnover and increase motivation to offer excellent services. We should have to have the right people by (Bank, 1992):
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* Job design - continuously assessed and further job training will be carried out

* Daily meetings - essential to improve communication between staff and management, share information and viewpoints

* Reward schemes - stimulate staff to participate and perform a better service

.3.3 Operations Management - Changing in Capacity Strategy

The current Level Capacity is capable of handling peak business with stable supply of permanent trained worker, however, it needs higher costs to maintain quality as the seasonal fluctuation affects the performance to provide the best service. Chase Demand can provide a consistent ...

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