The Management of The Hotel Olympia - Essay Example

A Case Study of Olympia Hotel Company profile The Hotel Olympia is a large modern hotel. The hotel has 150 bedrooms and currently it is expanding its facilities by a further 300 bedrooms. The hotel also has a conference center which is attached to the hotel although it is run as a separate business. Most of the products within the Hotel Olympia are manufactured on site and retailed in a more traditional restaurant setting. The hotel has a main dining room, bar service area, pass through window to the main kitchen, service station, preparation area and a walk in the area. The products are always served in a full service dinning setting. The dining room area can accommodate 70 customers comfortably during peak periods Project proposal The management in the hotel will improve on the existing accounting systems as well as coming up with a work breakdown structure (WBS) in order to define the employees discrete work elements in such a way that it will help organize as well as define the total work scope of the project. The management as part of the project will also apply the top down strategic planning to ensure that the hotel can compete effectively in the global market (Gray & Larson, 2011, p. 67). The hotels back office accounting systems had been computerized years ago for effective functioning of the business and this needs a number of improvements. The front desk functions like the reservations check in and check outs are a mixture of word processor template to produce bills as well as spreadsheets for room bookings and they are usually printed manually every day. The management therefore, feels important to integrate more systems to avoid manual work and increase efficiency. When ordering food from the restaurant and drinks from the bar and restaurant, it becomes quite unreliable. With advanced knowledge on bookings would try to ease ordering and booking and with a computerized ordering system which would allow stocks of food to be minimized would reduce food wastage and allow for considerable savings (Gray & Larson, 2011, p. 69). The Olympia games will be held in the region in three months time and we should take advantage of this great opportunity to expand the ordering and bookings systems since most of the customers would like to book for our services online. The hotel will triple its residency for the period of the games and for several months afterwards. Extensive marketing will also be done and the following include the marketing strategies the management will apply. Marketing and Sales Strategy (Pricing and Positioning) Our pricing strategy will capture and maintain the market share in town. Our pricing strategy for these services will be convenient to the expectations of our potential customers. A flexible pricing mechanism will also be employed and it will allow us to reflect the potential competitors within this region. In order to strategize ourselves effectively, we shall also be selective in our menu and services offered to our customers (Heldman, 2011, p. 102). Average price of menu item=$14 Food requirements $3.50 Accommodation $ 7.80 Labor costs $4.20 Total Costs $ 7.70 Advertising and promotion Tested advertising strategies will also be used by the restaurant. The industry will use direct mails, coupons, flyers around the universities in Mexico as the main advertising mediums. Therefore, our advertising message and menu offered will mainly be offered to attract the demands of the diverse customer base. According to the US census in 2012 data for the restaurant industry, it demonstrates a modest sales growth in the national marketplace. Comparing both 2011 and 2012 data for the full service eating and accommodation places sector, the full service industry generated $ 164 billion in sales, up 6% from 2011 (Heldman, 2011, p. 103). The industry has demonstrated a significant contraction in the recent years. The 2011 and 2012 consensus data shows a percentage increase of 2.3 percent over 2011. The total gross receipts for the industry were $144,649,964,000 in 2012, up 28.6 percent from 2011. The total number of workers employed in the industry was 3,904,628 in 2012, up 7.2% percent from 2011 (Heldman, 2011, p. 104). The new technology today has had a positive impact on this industry. Better supply chain services have intensively expanded the availability of snack and accommodation services as well as reducing costs of goods sold expenditure. Food service technology has continued in making food safer, fresher and easier to prepare and serve. The computerized process has also improved the customer access, service and tackling capabilities of the industry. Much of this technology will be integrated into our operation Staff organization and responsibilities In order to achieve the above business proposal, a top down strategic plan will be most appropriate and it involves the top management formulating the hotels strategy and then communicating it to the other staff members in the industry. This is the most appropriate strategy to ensure that the set goals and missions of the hotel are met by coming up with the hotels mission, objectives and try to implement these strategies effectively. The staff responsibilities for the next three months are described below (Portny, 2010, p. 91). The general manager assisted by his deputy will be in charge of the day to day running of the hotel, its finances as well as the stairs. They will also be responsible for future plans within the hotel to ensure that it strategizes effectively its resources. The procurement plan will involve the procurement responsibilities of the project manager who is the team leader of the business. The project manager will be responsible for the procurement of all services. The project manager will also approve the procurement of any services in conjunction with delivery of task order objectives in support of the project team leaders. The project manager will also initiate the procurements of all the services and will document a clear statement of work describing the scope of all services delivered (Portny, 2010, p. 93). The accountant’s manager will be responsible for all back office accounting functions and some of the responsibilities include acceptance of account customers, credit checking, debt chasing and ensuring that all the hotel financial ledgers are well maintained. The accounts manager will also be responsible for payment of the staff wages. The head receptionist will be in charge of the day to day running of the reception, will also notify the housekeeper of the available rooms for service, porters and switchboard. The head receptionist will also ensure an effective link with the accounts in the hotel. The other receptionists under him will be responsible in accepting bookings, greeting and checking in of guests, ensure that the available rooms are up to date, preparing all accounts for the guests, ensure the rooms for service are notified to the housekeeper as well as the restaurant and kitchen for the guests' food requirements. They will also keep the porters informed of any newspaper requirements (Toader, et al 2010, p. 26). Deliverables The WBS for this project comprises of work packages. These work packages have been developed through an action of collaboration among the members of the project team and the major stakeholders. The WBS outlined here comprises of the tasks and the deliverables together with the resources. The aim of the WBS is to ensure that the project is completed on time and that the project deliverables are met reasonably (Acs, 2006, p. 67). Milestone Date Materials to construct more rooms Mon 3/3/2013 Constructing front office 4/3/2013 Purchasing more gadget i.e. computers, telephones and mailing services 5/3/2013 Work breakdown process 7/3/2013 Resource allocation 10,3/2013 The current situation in the market is that not so many hotels consider the new accounting systems when, and WBS when delivering their services. This project will change this situation by introducing into the market a variety of accounting systems to perform multiple functions as opposed to what is currently there. Even though they may seem more costly, with time and usage, the management will realize that they are indeed cheaper owing to the multiple functions they perform. In as much as this project is meant to be practical, its success is based on some assumptions. Firstly, there is an assumption that the ground study will be carried out professionally and that the venue chosen for the location of the proposed business will be the best. There is also the assumption that the targeted population is open to, and understands the technological advancements in their fields. This is coupled with the assumption that the same population appreciates these advancements and has an interest in the projected benefits that they may create in their field of business. There is also the assumption that the cost our services will be according to the buying power of the targeted population means what they can afford easily and therefore, that the population will sustain the business (Bygrave & Andrew, 2004, p. 90). Project checklist and the importance The project checklist is useful in the early coordination and gathering of data. The checklist provides a guideline of the activities that one is to undertake and considerations to be made in implementing the project fully. It does describe the project need and its scope and the estimates in terms of time and resources. The advantage of this checklist is that is can be used in coming up with similar projects in the future and even projects that are not of this exact nature, but require similar particulars in implementing. It is an important guide and invaluable in coming up with future projects and especially if it is able to achieve the intended purpose with this particular project (Cohen, 2006, p. 13). Time Schedule Duration (Weeks) ACTIVITY 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th Determining project scope Preliminary resources Core resources Conducting needs analysis Drafting preliminary software Design During the first week, it will involve determining the project scope and it will involve doing a proper feasibility study of various strategies proposed and their viability for setting the proposed facility. The following week will involve coming up with the preliminary resources for the project and this will go for two weeks. The fourth week will involve setting the core resources which will enable the project compete effectively in the global market due to the increased technology. The fifth and sixth weeks will involve conducting a needs analysis and drafting preliminary software respectively. The last four weeks will involve coming up with a proper design on the market accessibility as well as the various strategies to be used to compete effectively in the market (Jacksack & Start, 2003, p. 78). Risk Analysis The operation of any business involves certain risks which can either be to the employees, customers and equipment. Risk refers to the possibility of adversity or loss. It is the uncertainty that affects an individual’s well being. Risk involves probability of losing money, possible injury on human health, repercussions that have an effect on resources. In order to control risks, risk management strategies will ensure that all these uncertainties can be minimized if not completely controlled. Consequently, risk management comprises of choosing among alternatives in order to reduce the effects of risk. It requires, therefore, the assessment of tradeoffs among adjustments in risk, the expected returns, entrepreneurial freedom and other variables. A good understanding of risk can be extremely significant to any market venture or producers as it helps in making extraordinary options in circumstances where adversity and loss are potential In order to control all these risks, Hazards Analysis Critical control Point (HACCP) system will be used and has been developed. Safety in the business will be a priority in order to keep our customers safe. Slip and fall is the most common risks in shops. To avoid this menace, a yellow wet floor sign will be marked on the slippery floors sites in order to warn customers of slippery services. Safety equipments will also be provided including slip resistant floor mats and handlers. Medical services will also be offered as it is outlined in our employee compensation insurance policy to any employee injured when in line of duty (Stolze, 2009, p. 89). References Acs, J. 2006. “How is Entrepreneurship Good for Economic Growth?” Innovations. MIT Press Journal pp.97-107. Bygrave, D. & Andrew Z. 2004. The Portable MBA in Entrepreneurship. John Wiley & Sons, NJ. Cohen, A. 2006. The Entrepreneur & Small Business Problem Solver. John Wiley & Sons, NJ. Gray, C., & Larson, E. 2011. Project management: The managerial process (5th ed.). McGraw-Hill, Boston, MA. Heldman, K. 2011. PMP: Project management professional study gauide. Wiley, Indianapolis, Ind: Jacksack, M., & Start, R. 2003. A Successful Small Business. 3rd Edition. CCH Incorporated, Chicago. Portny, S. E. 2010. Project Management. John Wiley & Sons Canada, Limited, Toronto. Stolze, J. 2009. Start Up: An Entrepreneur’s Guide to Launching and Managing a New Business. Career Press, NJ. Toader, C., Brad, I., Adamov, T., Marin, D., & Moisa, S. 2010. The Main Causes which Leadto Success or Failure of a Project. Scientific Papers: Animal Science & Biotechnologies / Lucrari Stiintifice: Zootehnie Si Biotehnologii, 43(2), 449-453. Read More