SWOT Analysis of Lakeside Hall Hotel - Case Study Example

Running Head: CASE STUDY –LAKESIDE HALL HOTEL Name Course Tutor Date Contents Contents 2 Executive summary 3 Introduction 4 The situation at Lakeside Hall Hotel 6 Accreditation and inspection problem 6 Client complaints 7 Leisure club situation 8 Cleanliness and food quality 9 Sales problem 10 Diagnostic model-SWOT Analysis 10 Strengths 11 Weaknesses 11 Opportunities 12 Threats 12 Recommendations 12 Conclusion 14 References 14 Executive summary Management in the contemporary world has developed immensely and relevant stakeholders in business have to be up to date with current affairs in running their portfolios effectively. The business world has become increasingly competitive and hence there is no room for error or else competitors will take advantage of it and drive rivals out of business. There is one sector in majority of business that has not been affected by competition and globalisation. Monopolies have been eliminated and hence business have to be cautious with markets in which they operate in. management and leadership skills are important in ensuring that the workforce in a particular organisation is kept property in line towards achieving set goals and keeping up with standards that are advocated for in the industry( Jones, & George 2009, p. 4). In this case study, Lakeside Hotel operates in one of the most competitive industries in the world today. First, it is in the service industry and hence consumers are very sensitive about the interaction they have with personnel on the hotel ground. Secondly, the industry is also associated with matters of comfort, confectionary facilities, entertainment and vacations. These are very sensitive matters and most individuals prefer having them away from normal day hassles and activities. As a result, the experience that people draw from such a business can be the deciding factor of whether to consider numerous rivals offering the same facilities and service. Further, the industry the hotel has to deal with different people from different walks of life and ensure that they get the best quality services from the hotel. This means that each and every consumer has to be handled individually and ensure that satisfaction is at a maximum.. Organisational change begins by identifying problems that need solving and then delegate duties to different people on what needs to be done in a systematic manner that follows specific approaches and contemporary guidelines to rectify the problems. Modern management approaches towards achieving organisational change can also be used to affect positive change and utilise available resources effectively. Where organisations feel they are inadequate they can outsource training from professionals who are proven to bring desired change. This has the potential of increasing the hotel capacity and bookings throughout the year in a manner that will leave both consumers satisfied with services given and the business flourishing form increased business. However, this may need significant changes to be made in terms of individual perspectives towards work and the industry as a whole. Hence it may call for drastic measures to safeguard the objectivity of the hotel and its future as a profitable venture. Introduction Being located in thee English District, the hotel has managed to put together immense resources to facilitate its business activities. Though it has experienced significant results over the years, it still faces challenges and should be operating at a better capacity than it is. The reason for this is that it has vast space for numerous activities and hence at all times should be occupied by people with different needs and requirements. In terms of personnel, the hotel is well served and hence this should not be a cause for alarm. Over the years, the hotel has maintained high quality services and has had past consumers return for holidays or weekends for relaxation. Therefore, it is certain that the business relies on loyal consumers who make return visits and most likely recommend it to others. This has been identified as one of the cheapest and most effective ways to market a business (Tarí, Claver-Cortés, Pereira-Moliner & Molina-Azorín, 2010, p. 502). Ensuring that consumers a re satisfied enough to return and recommend to a friend or a colleague. This only shows that the hotel has a lot of potential if it were to utilise all resources to ensure that more potential consumers are aware of the activities and services offered. Though it has some advertising activities, they may not be adequate given the level of competition that is evident in the industry. The service industry is a very sensitive one and requires careful handling of consumers. Personnel have to be trained well on how to handle individuals in different situations. They also have to know how to react to different attitudes and crises that are likely to occur in specific situations. In this case, public relations know a how and expertise is relevant from different personalities working in the hotel. Service quality has gained momentum of the last few years as a way of consumer retention and gaining of others as well. Products offered in the hotel such as meals, accommodation, and other recreation facilities should be of high standards to meet expectations of consumers. Secondly, the way these products and services are delivered to the consumer should portray the image of the hotel in manner that leaves the consumer satisfied and eager to return (Tarí, Claver-Cortés, Pereira-Moliner & Molina-Azorín, 2010, p. 504). Leisure is a time of entertainment, enjoyment and relaxation. The ability of the hotel to meet such needs determines their relevance in the industry and the long run survival of the business. Being a four star hotel, Lakeside Hall Hotel needs to be approved by certain bodies which evaluate standards and award accreditation. Failing such standards could be a huge blow to the imager of the hotel. This means that there has been laxity or incompetence on someone’s portfolios. It therefore mans that some employees somewhere in the hotel are not satisfied with their jobs or do not have the motivating factor to achieve personal as well as organisational goals. In this report, problems facing the hotel will be evaluated and comprehensively analysed in a manner that will draw conclusions and recommendations necessary to improve the situation at the hotel. Application of contemporary scientific managerial tactics to approach the challenges will also be used to find a solution to the problems in the hotel The situation at Lakeside Hall Hotel As mentioned eelier, the situation at Lakeside Hall hotel requires re-evaluation and change of organisational behaviour in order to solve problems they are currently facing. Accumulation of these problems haver the potential to bring down the reputation of the hotel down and as result lead to business failure in the long run. Generally, the hotel operates smoothly and can therefore not be condemned over the fewer problems that it has encountered lately. However, it takes only a few problems that go unresolved to bring down an entire business. Accreditation and inspection problem First the hotel had Involved Investors in People as a body to measure standards that are desired by people demanding such hotel services. This shows commitment of the hotel to deliver services and products that are acknowledged by national bodies to be effective and of high quality. The body is responsible for ensuring that certain standards are met before the hotel gets accreditation in certain specific areas that are of high concern to consumers and the public at large. It ensures that personnel are adequately trained to deliver high quality services and products in the industry. After re-inspection of the hotel, it failed in two standards that it had passed for the three previous years. The first standard was in measurement of performance while the other one was in contentious improvement. This means that the hotel had dropped in standards since the previous inspection. The potential of this is to draw bad image and reputation on the hotel both from the existing consumer base and also the potential market. Failure of the hotel to meet the bars set by assessors is prove that there was laxity or relevant parties were overwhelmed with other duties. However, being a seasonal business, there is enough time to make appropriate changes especially with the knowledge that such a crucial inspection may take place at any given time (Bader, 2005, p. 72). Failing to meet accreditation is detrimental for a sensitive business such as a hotel. New consumers that are well informed will always want to know whether the hotel meets certain accreditation standards that are associated with a facility of its class. If it does not, most likely consumers will look for alternatives that do. Further, loyal consumers may feel let down by the fall in standards and may no longer recommend the services of the hotel to others. They may also look for alterative hotel facilities that meet those specific standards. However, failure in standards is a wake up call for the hotel ownership and management. They should prioritise returning the hotel to past glory by applying recommended changes as advised by the assessors. It would also act as a reminder that once the hotel failed in this specific area and would in future ensure that it is up to date and meets such requirements at all times. Client complaints Standards in the hotel have not only fallen in terms of accreditation and inspection failure. There have been complaints made to the owner about failure in other standards that are not expected in such a facility. Failure in the accreditation standards can only enlighten management and ownership of the hotel as to what other aspects of the hotel are failing as well. This has been the case which has raised concerns from the ownership of the hotel. There have been cases where clients have reported presence of pornographic magazines in the hotel rooms. This is a very serious situation, given that the hotel hosts families with children and business personalities. As long as the hotel hosts individuals seeking relaxation and entertainment, the kind of literature found in hotel rooms should fit the occupants. If consumers have special requests, they should be encouraged to put them forward to the employees there in order to make special arrangements for their stay. As mentioned earlier, different personalities have diverse views on different issues and perspectives. It is therefore very crucial that each client is handled differently and served according to their will and preferences. What entertains others may be abusive or even offensive to others (Johns & Pine 2002, p. 120). The situation is dire as it had been reported severally by different clients. This means that there is a high possibility that some clients did not report the presence of such magazines. The extent of a client referring to the hotel as a brothel only shows the level of dissatisfaction that was received. This problem has the potential of causing legal problems for the hotel which would be disastrous for the hotel. These complaints mean that through inspection of the rooms is not done before ushering in new guests. Responsible personnel should therefore be held accountable for the repeated error and proper action should be taken to avoid another occurrence. If such word were to go out, it would ruin the reputation of the hotel which would also be disastrous. Leisure club situation Being a four star hotel, Lakeside Hall Hotel should have a classy leisure club which depicts the status of the hotel. A club inside such a hotel should have its own set of standards regarding services offered and that type of people who use the facility. As a result, the club should not be like any other club in town meant as an entertainment joint where everyone can indulge. The club should be reserved for guests who are supposed to be people of high integrity and well mannered. On the contrary, the club does not meet the ambiance of a high establishment hotel. Activities that happen there could be associated with just another normal club. As a result, people seeking relaxation and use of other facilities may find the club to be a nuisance other than a facility they would use. This makes the situation worse because families, business personalities and respectable people may be within the vicinity of the. Therefore, activities in the club should depict an atmosphere of ambiance that would not distract other activities going on the hotel. It should be a complementary facility and hence should be used accordingly. Cleanliness and food quality Cleanliness in the leisure club has also been reported to be a problem. This may be as result of the activities that take place there hence rendering it unmanageable to certain extents. A four star hotel should not have sanitation and cleanliness problems. This shows that those responsible for this aspect have a lot to do and hence appropriate changes should be made. Cleanliness is a major factor that may prevent clients from returning to the hotel in future. The issue of food quality has also been raised by some concerned parties in the hotel. Food is some of the major determiners of clientele for the hotel industry. The ability to offer food that is delicious and in a clean environment not only builds the reputation of the hotel but leaves clients satisfied with the services. Food is so significant that major hotels are identified with serving quality signature dishes from all over the world (Namkung & Jang 2007, p. 388). This is an area that the hotel management should not compromise on even on the slightest extent. When booking hotels, clients always consider the type and quality of food servings available. Cooks in this department should have exemplary experience and capabilities to make dishes that meet consumer expectations and beyond. Further food cleanliness and quality is a matter of health and safety which should be a priority concern for the management of the hotel. Sales problem The sales team of any business is at the heart of ensuring that a business gets enough clients to achieve its goals and objectives. Marketing of the hotel has been inadequate and hence making it difficult to achieve full capacities on bookings during crucial and peak times. The remote sales team does not seem to have significant goals that they should met in terms of sales generated to the hotel. This is despite the hotel having a good reputation and image in the public eyes. The remote team has diverse channels that it could use to generate leads on sales but it does not seem to use them accordingly. The current advertisement and promotion strategy used by the hotel seems to work positively but the high potential, avenues remain unutilised. For instance, the sales manager does not seem to recognise the power that the internet has in making significant sales for such a business. Hotels in the same industry have made significant steps through promotion over the internet and advertising which has the ability to reach millions of clients. It also has the potential to reach international clientele which would widen the business portfolio and consumer base (Wei, Ruys, van Hoof, & Combrink, 2010, p. 286). Social and electronic media are the new ways that businesses are utilising in order to reach clients from different parts of the world in an up-close, cost efficient and effective manner. Diagnostic model-SWOT Analysis The swot analysis has the potential of identifying where a business is well oriented and where improvement and changes are needed. It analyses the strengths, weaknesses, opportunities and threats that a business could evaluate in order to maximise on its potential. This approach is appropriate for the hotel since it has the ability to identify and group issues according to priority and establish specific areas where the business is going wrong and effect appropriate changes accordingly (Valentin, 2001, p. 55). Strengths The business has a variety of facilities that it has in its portfolio. It has serene surroundings that are attractive and conducive for the hotel business. The facility also offers diverse options for different activities and still has room for creation of more facilities. The space that is occupied by the hotel is also huge enough to include other facilities that are of high demand. The hotel also has adequate personnel to oversee smooth running and carrying out of activities in a comprehensive and satisfactory manner towards clients. Over the years the hotel has accreted a name for itself that is well known by the public and loyal consumers. This could be used in promotional strategies to attract more clients. Reputation is a very strong factor in creating a unique brand that rivals competitors. Weaknesses There seems to be a managerial weakness in the overall running of the hotel. Supervision of important aspects such as cleanliness and quality of food has gone to instances where clients complain. The managers responsible for this are either overwhelmed by activities or unmotivated for their jobs. This is crucial and managers should be weary of this. The owner should consider hiring additional staff in this area. The sales team also poses a weakness for the hotel business. They are not enthusiastic enough to take advantage of high potential client bases over electronic media despite the widespread knowledge that this is a crucial aspect of the modern business. The sales manager may be to blame for not being technologically savvy. Opportunities The hotel is yet to get the full potential of the online business platform. Online interaction through social and electronic media has a huge potential in terms of showcasing the hotel facilities to potential clients. It also offers a room for feedback and ideas which clients feel could be utilised to make their stys even more memorable. The size and location of the hotel also offers an opportunity for diversification and improvement. More facilities could be added to the portfolio of the hotel to enhance and improve clientele base. Diversity offers an all inclusive experience which puts into consideration both local and international clients. Threats The complaints that keep on recurring in the hotel pose significant threats to the survival of the hotel. For instance the pornographic incidences pose a huge threat that could see the hotel face legal proceedings. These issues should be handled carefully if the hotel is to maintain its reputation. Complaints of cleanliness and food quality also pose significant threats to ruining the reputation of the hotel. The old organisational culture that is being practiced in the sales department is also a threat for growth and sustainability of the hotel in future. Failure to get accreditation from relevant bodies also poses a threat to the hotel where clients may be forced to look for other alternatives. Recommendations The problems and challenges facing the hotel are not significantly dire and can be resolved since they have already been adequately identified. Change should be prioritised to accommodate improvement in all affected areas. First, the management team should work on improving performance of personnel they supervise. Managers should facilitate training requirement when they feel that personnel they supervise require further training. Thy should also attend training themselves to enhance their managerial skills in the contemporary environment .they should also provide information to the board of the hotel on improvement that need to be made in order to meet required standards of accreditation. Due to the work load, the hotel should hire an extra manager to make each manger handle two departments instead of three. This would ensure that the workload is reduced and thoroughness is enhanced. Some aspects of the hotel also need to be changed. For instance, the leisure club manager should ensure cleanliness of his area and also control the kind of activities that take place there. Activities should promote serenity and ambiance which should meet the standards of the hotel. Since the staffs are fully qualified, they should be adequately motivated to ensure that they deliver quality services in all aspects where they do not compromise on the reputation of the hotel. Further training on chefs is also required to enhance food quality and diversify as well. Quality control and frequent checks should also be carried out in a bid to identify areas needing improvement. In order to avoid complains from clients, each client should be separately served and catered for in a different manner depending on their preferences. This would avoid issues such as the pornographic magazines found in the hotel rooms. Such material should only be availed when required. Finally, the sales team which seems to be lagging behind should be motivated by setting minimum goals which they should achieve within specific periods of time. The hotel management could offer them commissions on clients they bring to the hotel. The should use the full potential of the interment and online platforms to connect to millions of potential customers all over the world, the hotel should set up a ruining online platform where social and electronic media is used as a tool to showcase the hotel to potential clients. The sales manager should hence take up another role as a leader in the hotel and hire an enthusiastic sales associate with technology awareness and orientation. Being in the company for 40 years, the sales manager should take an advisory role rather than an active managerial role. Conclusion The hotel has been facing a series of challenges from its different operations and activities. They range from complains from consumers to underperformance of some of the key employees in the hotel. There is also lack of utilisation of some of the most crucial resources to create a larger consumer base. Though the hotel has experienced significant levels of growth, it has a lost of potential given its location facilities and pricing of services. There needs to be organisational change and perception of work from different portfolios held by different personalities in the organisation. Application of the recommendation has the potential of reviving improving the hotel further in the future. The SWOT analysis offer crucial lessons which the hotel should utilise in its portfolios. References Bader, E, 2005, ‘Sustainable hotel business practices’, Journal of Retail and Leisure Property, vol.5, no. 1, pp. 70-77. Johns, N & Pine, R 2002, ‘Consumer behaviour in the food service industry: a review’, International Journal of Hospitality Management, vol. 21, no. 2, pp. 119-134. Jones, G. & George, J, 2009, Contemporary management, McGraw-Hill Irwin, New York. Namkung, Y, & Jang, S, 2007, ‘Does food quality really matter in restaurants? Its impact on customer satisfaction and behavioral intentions’, Journal of Hospitality & Tourism Research, vol. 31, no. 3, pp. 387-409. Tarí, J. Claver-Cortés, E, Pereira-Moliner, J & Molina-Azorín, J 2010, ‘Levels of quality and environmental management in the hotel industry: Their joint influence on firm performance. International Journal of Hospitality Management, vol. 29, no. 3, pp. 500-510. Valentin, E, 2001, ‘SWOT analysis from a resource-based view’, Journal of Marketing theory and Practice, pp. 54-69. Wei, S, Ruys, H, van Hoof, H & Combrink, T,2001, ‘Uses of the Internet in the global hotel industry. Journal of Business Research, vol. 54, no. 3, pp. 235-241. Read More