The Investment Idea to Extend the Services Area of East Nest Hotels - Case Study Example

?Implementation Brief Table of Contents Table of Contents 2 Overview 3 2.Impact on the Department 4 3.Time Plan 5 4.Link and Dependencies 6 5.Milestones 8 6.Risk Plan 9 7.Resource Requirements 10 8.Financial Plan 11 References 12 1. Overview Investment ideas for fitness center can be considered as one of the significant aspects for generating revenues in the modern day context. Correspondingly, Eagle Nest Hotels is looking for opportunities of instigating a venture which would help them to sustain in its position in the long run. In this regard, the report intends to propose structuring of a fitness centre which can be considered to be highly beneficial for Eagle Nest Hotels to obtain its desired competitive advantages. In this similar context, the investing ideas for fitness centres include incorporating fitness centre through swimming pool, indoor game, sports equipment shop as well as boxing club amenities through which generating greater revenues for the organisation will be possible along with attaining diversification benefits. These fitness dimensions would further assist in hotel’s chaining to attract customers by rendering the aforementioned value-added facilities. This proposed investment implementation idea of incorporating various fitness dimensions shall also enable the hotel chain to maintain profitability by engaging effective sales through the utilisation of these services (Entrepreneur Media, Inc., 2013). The report of the investment implementation brief therefore focuses on identifying the impact to be created by the investment idea on the overall organisational structure or departments of East Nest Hotels along with a time plan for the implementation of the strategy. The report also presents a brief idea regarding the linkage between the investment plan with other departments along with a milestone analysis and risk plan to justify the implementation benefits of the proposed initiative. Resource requirement and financial planning is also presented through this implementation brief report from a Human Resource Management (HRM) perspective. 2. Impact on the Department In the context of the investment idea to extend the services area of East Nest Hotels through the incorporation of a swimming pool, a boxing club, an indoor games facility and a sport shopping shop, it can be stated that such initiatives will be helpful in determining the degree of demands for the products and facilities offered in the market by the organisation. It will also have an impact on the degree of competition that an organisation faces in order to sustain its competitive position in the market, irrespective of the customers’ buying behaviours. It can also be stated that the investment idea will further help in maintaining the margin of profits allowing greater competitive advantages to the company. However, when implementing the plan, the regulations or policies currently performed within the organisation and its labour power can be taken into consideration, which has been affecting the expenses as well as competencies of the organisation (Madhura, 2007). In this context, the Human Resource (HR) manager will be responsible in addressing the issue of internal equity, i.e. in evaluating the resources for advertising the job profile, development of plan for ensuring the existing employees are not reprimanded with low remuneration for failing in achieving the targets of the additional activities assigned to them in lieu of the investment idea. In this particular context, the HR team will be held responsible in conducting regular training sessions for individuals through consultations, designing of programs, instructional sessions as well as obtaining feedbacks for the proper implementation of the requisite activities needed to implement the investment idea. Undoubtedly, such change would require additional manpower and investments to recruit competent trainers through internal recruitment and external labour market as well, as per their qualifications in providing fitness training program for individuals. It can be stated for formulating an implementation plan; development of products is necessary which includes the following steps for the development of the process as presented in the graph. Graph 1: Impact on the Department through the Implementation Plan 3. Time Plan Activity Duration Start End Developing a precise and comprehensive job description 1 Week Week 10 Week 11 Placing required advertisements to reach the potential candidates in the external market 3 Weeks Week 10 Week 13 Reviewing performance appraisals to recruit from within the organisation 3 Weeks Week 10 Week 13 Collection of Resumes 2 Weeks Week 14 Week 16 Conduction of Interviews 3 Weeks Week 15 Week 18 Short listing most applicable candidates through Recruitment and Selection 2 Weeks Week 18 Week 20 Availing and implementing the resources as well as the strategies for staff training purposes 4 Weeks Week 20 Week 23 4. Link and Dependencies The investment idea apparently signifies a direct relationship within the HR and the other departments of the East Nest Hotels. As the investment idea entails, it can be stated that there would be orientation session provided for customers facilitated with training facilities. Providing the required training opportunities can further be observed to be providing assistance to the qualified trainers in serving the individual customers with greater efficiency and thus contributing towards the marketing efficiency of the organisation. Moreover, this would assist the organisation in maintaining the demands of the customers in the market over a long-run period (Camosun College, 2013). The HR manager, as planned in this investment idea shall possess the support and authority in implementing decisions regarding formulating the structure the fitness centre that could be beneficial for the organisation. The foremost responsibility of the HR manager will be therefore to recruit employees who are skilled and talented in order to maintain effective productivity of the organisation which again indicates a link between the HR and the operations department in East Nest Hotels. In this context, it can be stated that HR manager will be required to understand the requirements of the job profile and accordingly act to satisfy the situational requirements, by providing advertisements which will further require the approval of the marketing and the financial departments. Moreover, the HR managers are also required to maintain the values and methods for organising a fitness centre for the development of business of Eagle Hotels in the long run depending upon the operational process already being following within the organisation. The HR manager is also responsible in maintaining ethical issues related to the development of the organisation after recruiting and selected employees for the organisation of fitness centre complying with its corporate governance standards (Budd & Scoville, 2005). It is also the responsibility of HR manager to provide sessions of discussion and effective communication among the staff to decide the strategies to approach the initiatives for organising fitness centres, inculcating profitability in the long run. The HR manager will also be responsible in developing and implementing the system of compensation to employees recruited in the fitness centres maintai8ning high degree of coordination with the finance department in the organisation (Budd and Scoville, 2005). Depending on the finance department, HR managers will also require evaluating the amount invested in structuring the fitness centres in Eagle Hotels. It is necessary for canalising of the profits and expenses of the hotel in organising fitness centres for attracting the business orientation successfully. It is also required to identify the invested amount for constructing fitness center would be beneficial for the hotel (Chaudhary and Prasad, 2010). 5. Milestones Milestones Key Activities Time Frame Lead Responsibility Search for a Location Allocation of potential staff for gathering information for appropriate venue for fitness centre 1 week Management of Hotel Designing the preparation of the plan Collecting data from various sources for selecting the appropriate candidates 3 weeks Designer team leader Marketing the Plan Through advertisement, media publishing, and hoardings among others 3 weeks Marketing Manager Hiring Employees Through recruitment and selection process and performance appraisal reviews 2 weeks Human Resource Manager Providing Training Through qualified trainers and personnel 5 weeks Training Manager Purchasing the Required Equipments From various areas in the in the market 4 weeks Employees and other stakeholders in the fitness center Maintaining Safe and Durable Environment Through teamwork as well as effective communication Human Resource Manager Providing Maintainable and Durable Facilities Attracting customers through advanced fitness equipments integration Human Resource Manager 6. Risk Plan Risk Description Priority Pre-Warning Signs Actions to Avoid Actions to Mitigate Acquisition of Funds High Priority Unable to convince the top management in the first instance Convincing management to allocate funds for the fitness centre Support from Management Skilled Employees and Trainers Introduction Moderate Priority Unavailability of talented employees and trainers Rendering sufficient remuneration and other added facilities Through team work, motivation and collaboration with the management Gathering of Resources High Priority Unavailability of quality resources in the first phase of resource selection Having effective coordination between suppliers with the intention of distributing quality products beforehand Support from the Management Providing facilities High Priority Limitations in the training systems Through effective training to customers Deliverance of extensive facilities and discounts 7. Resource Requirements Resource Description Time Cost Marketing- Advertising Media Space, Sales and other Staff, Web Technology Services 6 Weeks ? 8300 HR- Employees for each department, training resources, legal assistance 5 weeks ? 83000 Operations- Operational procedural changes and expansion along with flexibility 10 Weeks ? 1,00,000 Finance- Funding for each department, especially the HR department 3 weeks ? 3,00,000 8. Financial Plan Items Quantity Time Costs Search for a Location 1 location 5 weeks ?50,000 Designing the preparation of the plan NA 4 weeks ?50,000 Marketing the plan NA 3 weeks Hiring employees NA 3 weeks ?83,000 Providing training NA 6 weeks ?60,000 Purchasing the equipments 2 weeks ?1,50,000 Maintaining safe and durable environment NA NA NA Providing maintainable and durable facility NA NA NA References Budd, J.W. and Sackville, J.G., 2005. The Ethics of Human Resources and Industrial Relations. Cornell University Press. Camosun College, 2013. Fitness Facilities & Services. About Us. [Online] Available at: http://camosun.ca/sports/rec/fitness-facilities.html [Accessed April 19, 2013]. Chaudhary, A. and Prasad, S., 2010. Human Resource Financial Management. International Journal of Trade, Economics and Finance, Vol.1, No.4, pp. 342-344. Entrepreneur Media, Inc., 2013. Business Idea Center: Fitness Centre. Business Overview. [Online] Available at: http://www.entrepreneur.com/businessideas/fitness-center [Accessed April 19, 2013]. Madhura, J., 2007. Introduction to Business. Cengage Learning. Read More