New Hotel Management - Research Paper Example

 New hotel business recommendation Executive Summary The purpose of the new hotel is to engage in the food supply industry with a total budget of about 101,500 U.S dollars that is expected to yield a cumulative net profit of about 600000 U.S dollars over a five-year period. The hotel is also prospected to make sales of amounting to 72 thousand U.S dollars every month. The hotel will be a family-run start-up business that will be dedicated to the provision of excellent and high-quality products in the hotel industry. Some of its products like pizza will be distributed to the area residents. The distribution method to be used will generate fair and equitable returns to the owners and provide superior value to the target customers. The hotel will specialize in coming up with different varieties of pizzas and offering excellent accommodation to the prospected customers. Table of Contents Table of Contents 2 Introduction 2 The hotel management 3 Hotel ownership 4 Products and Services of the Hotel 4 The Hotel Strategy 6 Level of customer service 7 Trends in the industry 7 Expectation of more customers 7 Technological changes 8 Business environment 8 PESTEL analysis 8 Conclusion and recommendations 10 References 10 Introduction The local area within where the hotel will be located has in the past experienced an explosive growth over the past five years. The population in the area has tremendously grown to over one million. The local businesses are gradually catching up with the rising opportunities that are brought about by the population growth. The hotel will be starting its operations in the area to serve the locals and make delivery services within the hotel industry (Brown, 2004). Currently in the area, the closest hotel that offers pizzas, and adequate accommodation facilities are located about one mile away from where the hotel intends to start its operations. The company will provide better products and services; the prices of the hotel services will be relatively fair compared to those of other neighboring hotels (Brown, 2004). In order to keep with up with the current market competition, the hotel has planned to offer delivery of pizzas at the doorsteps of their customers. The purpose of this paper is to look at the management of an upcoming hotel, discuss the environment of the business and the analysis done using PESTEL analysis method (Cook, Macaulay and Coldicott, 2004). The hotel management The management of the hotel is expected to utilize the available resources wisely, it must operate profitably, be able to pay all the debts and abide by the laws and regulations governing the business (Cunill, 2006). The company's management should be based on the philosophy that will be based on teamwork, accountability and mutual respect towards each other. The employees who work at the company will be made to be part of the team because the management will function in an environment that will encourage creativeness, development, diversity and performance (Cook, Macaulay and Coldicott, 2004). His wife who are said to have operated a similar business in another area over the last ten years and are felt to be the ideal candidates with the relevant experience in the industry will assist the proposed manager of the hotel. The candidates also have been said to contain various degrees and other certificates in the field of management and hospitality (Cunill, 2006). Hotel ownership The hotel will be a privately held corporation owned in majority by the hotel manager and his assistant. It will provide room for new investors to participate in the company’s capital affairs. During the formation of the company, the management is planning to give about 10,150 shares at the value of $100 per value of common stock. Both the issued and the outstanding stock would total to $101,400 and the hotels manager with his assistant will receive 3500 shares at the same price as sold to the public or give a 35.5 percent ownership each (Heaton, 2012). The new investor will have the opportunity to make discussions about the quantity and the quality of the stock that will be issued before the company's procedures of the hotel start. The investors in the meetings should discuss some additional information about the investor's interest, entry and exit strategy for the operations of the hotel begins (Jagpradeep., 2008). Products and Services of the Hotel The prime hotel will offer a broad variety of the pizzas in the region as well as sauces, fruit juices, sodas and desserts and provide accommodation facilities in the area. According to some research, the type of the pizza that the hotel will be producing and distributing are said to have originated in a neighboring city in the early 1990's. The kind of pizza that the hotel is planning to sell is known to be gaunt, broad and foldable slices. The toppings on the pizza include some tomato juice and mozzarella cheese (Heaton, 2012). The toppings are usually placed on the part of the pizza that contains the cheese. Normally, the proposed type of pizza to be sold by the hotel is hand-tossed, and the slices are usually eaten folded in half as in the case of street snacks. It differentiates itself from the other American pizzas through its particular crust, generally made of high-gluten bread flavor distinguished taste. The pizza will be sold in slices and some cases as whole pies (Jagpradeep., 2008). The slices will be taken from the whole pizzas of a diameter of 18 inches cut into eight slices. If the pizzas are sold in slices, the company will offer both regular and plain pizzas with different toppings. The hotel will always keep plain items on hand, and will be in a position to provide its customers with varied toppings, by just adding them on, some minutes before consumption or re-heating (Kainthola, 2009). The pizza is served with condiments like red chili pepper, Parmesan cheese, oregano, or even garlic powder that will usually available for the customers to top up their slices. The hotel also offers other menu items such as cookie dough, some soft drinks, breadsticks and dessert items (Kleinfield, 2014). The service of products will provided at the counter; some for take-outs and others delivered to the locations indicated in the customer's orders. The orders will be done online by phone or ordered physically at the hotel site (Lockyer, 2007). For deliveries, the hotel will offer 18-inch plain pies. The slices will be sealed, and the packaging will allow the customers to obtain individual slices from their freezers in the state that they require them. Exportation of the pies will also be done through leak-proofed gel packs. Therefore, the customer will be in a position to pop them into a pre-heat oven (Mathews, 2008). The delivery will be done both for refrigerated pizzas and hot ones depending on the preference of the customers. The accommodation that the hotel will offer will be special in its way. The room services planned will be special in their way and this will be done in consideration to the existing accommodation facilities (Noone and Mattila, 2009). The existing market gap in these products is what has made the management plan opening a hotel in the region. Lack of variety in the pizzas also offered makes the hotel be aligned with the concepts in the industry. The Hotel Strategy The hotel’s strategy is based on delivering a strong customer value proposition in a market gap. The hotel is aimed at offering the locals of the region and its surrounding areas a new choice in pizza options and accommodation facilities. It is building its marketing infrastructure so that the hotel will be in a position to reach more clients with the offers that they present to the market (Noone and Mattila, 2009). The crucial focus is to satisfy the needs of the low to middle-class residents together with companies that are located within and outside the region. The hotel intends to apply various types of marketing communications as an effective way of reaching the targeted market and to raise the awareness of the community to the prospected product to be availed in the market (Qin, Adler and Cai, 2012). Additionally, the hotel will use some effective tools of advertising in promoting their business. There are plans to hire people who will be engaged in door-to-door flyer promotion within the neighborhood. The activities to be done in the development activities of the hotel have all been accounted for in the budget. The set money will be utilized efficiently and in the most cost-effective manner. The other advertising options will be evaluated after the hotel has been implemented to make sure that the best results of the hotel are achieved (Riewoldt and Bangert, 2002). The hotel is categorized as a small hotel because apart from the pizza business, it has some 100 rooms to accommodate some customers. The clients who spend their nights in this hotel will be served with breakfast and supper in the morning and evening respectively. A separate department to concern itself with housekeeping duties will be formed for efficient operations of the hotel (Rutherford, 2002). Level of customer service The customer services at the hotel will include that of enabling the guests and the other customers to be self-sufficient. The guestrooms will be fitted with wireless network that will allow the customers to access the Internet at ease while in the hotel. Online booking of rooms will be embraced as well as making pizza orders through the hotels website (Sandoval-Strausz, 2007). The company will be after creating an impressive and a unique guest and customer experience that will exceed their expectations and be able to capture as many customers as possible. Trends in the industry As the business will grow from day to day, there are several trends that ought to happen and the business must be prepared to keep up with the trends. There will be a trend in the number of visitors in the hotel and international orders for the supply of pizzas may be done at some point in the future (Sandoval-Strausz, 2007). Expectation of more customers As the business grows its operations, the number of visitors who will book for room reservations and make orders for the pizzas will increase and the hotel must prepare itself to meet with the increase in demand. The management of the hotel must look into ways of expanding and addressing the rising needs of their services and products in the future. The hotel might also experience the trends in the accommodation sector, hotels are moving from offering single room accommodation to self-contained rooms. It is, therefore, crucial for the hotel to keep in touch with the outside world and know what is happening in his industry (Saxena, 2008). Technological changes With the growing trend in the technology industry, better ways of making pizzas and making office bookings might emerge in the market. The technology may change the ways in which pizza distribution is done and may be more effective and efficient (Slattery, 2009). Adopting the new technologies will lead to improvement in the services offered by the hotel that may lead to the realization of more profit. Business environment The hotels environment will be made up of a combination of the internal and external elements that will influence its operations in the region. The environment of the business will include the factors such as the customers that will be served by the hotel and the suppliers. The competing businesses around also make the environment of the hotel, the laws that exist and the government activities also form part of the hotel's environment. Finally, the market, the social and the economic trends that also exist form part of the businesses environment. PESTEL analysis Political The political situations of Texas must be looked at. Acts of terrorism that may affect the visitors. Possibilities of the other countries to enter the market Economic National microeconomic situations in the U.S Extend of economic growth in the U.S The value of UD against the other major currencies The rate of inflation Social Demographic changes of the region Changes in the family patterns The increasing role of social media Shifting values in the society Technology Technological breakthroughs in the catering industry Increasing integration of the internet in various aspects of life Advancing hotel booking functionalities Environmental Impacts of weather change conditions to the distribution Seasonality of catering business Natural disaster effects Legal U.S laws and regulations changes related to the catering industry Customer protection laws and regulations The immigration laws and regulation in the U.S Conclusion and recommendations To conclude, the hotel is set to revolutionize the industry by bringing in high-quality pizzas that will create turmoil in the industry. The services that will be offered including the door-to-door delivery makes it easy for the customers to put their trust in the hotel. The hotel will also be hosting several guests. The guestrooms must be of quality standard and efficient services within the rooms must be ensured too. I, therefore, recommend to the planning committee to consider the highly volatile and changing factors in the industry before actualizing their plans. Lots of marketing need to be done to make sure that he targets audience Is aware of the coming hotel and make them be prepared for the services to be offered. References Brown, D. (2004). Opening A Financially Successful Bed & Breakfast Or Small Hotel. Atlantic Publishing Group. Cook, S., Macaulay, S. and Coldicott, H. (2004). Change management excellence. London: Kogan Page. Cunill, O. (2006). The growth strategies of hotel chains. New York: Haworth Hospitality Press. Heaton, D. (2012). Business in the Big Picture: Managing for Sustainability. J Bus Hotel Manage, 01(02). Jagpradeep., (2008). Hotel management. New Delhi: Murari Lal & Sons. Kainthola, V. (2009). Principles of hotel management. Chandni Chowk, Delhi [India]: Global Media. Kleinfield, S. (2014). The hotel. New York: Open Road Media. Lockyer, T. (2007). The international hotel industry. New York: Haworth Hospitality & Tourism Press. Mathews, J. (2008). Hotel management. Jaipur, Raj., India: Pointer Publishers. Mathews, J. (2008). Hotel management. Jaipur, Raj., India: Pointer Publishers. Noone, B. and Mattila, A. (2009). Hotel revenue management and the Internet: The effect of price presentation strategies on customers’ willingness to book. International Journal of Hospitality Management, 28(2), pp.272-279. Qin, Y., Adler, H. and Cai, L. (2012). Successful Growth Strategies of Three Chinese Domestic Hotel Companies. JMS, 3(1). Riewoldt, O. and Bangert, A. (2002). New hotel design. New York, N.Y.: Watson-Guptill Publications. Rutherford, D. (2002). Hotel management and operations. New York: Wiley. Sandoval-Strausz, A. (2007). Hotel. New Haven: Yale University Press. Saxena, A. (2008). New trends in tourism and hotel industry. New Delhi, India: Navyug Publishers & Distributors. Slattery, P. (2009). The economic ascent of the hotel business. Oxford: Goodfellow Publishers. Slattery, P. (2009). The economic ascent of the hotel business. Oxford: Goodfellow Publishers. Read More