SWOT Analysis for the Lakeside Hall Hotel - Case Study Example

Case Study- The Lakeside Hall Hotel Name: Course: Tutor: Institution: Date: Table of Contents Table of Contents 2 2.0 Force Field Analysis 3 2.1 Change Support Factors 4 2.1.1 External Industry Regulators 4 2.1.2 Customers Changing Needs 5 2.1.3 Market Competition 5 2.1.4 Technology changes 6 2.2 Factors against Changes 6 2.2.1 Organizational Culture 6 2.2.2 Financial Shortages 7 3.0 SWOT Analysis 7 3.1 Strength 8 3.2 Weakness 9 3.3 Opportunities 10 3.4 Threats 11 4.0 Recommendations 11 4.1 Continuous Improvement 12 4.2 Performance Appraisal 13 4.3 Technology Application 14 5.0 Conclusion 15 References 17 1.0 Introduction Globalization and changing technological scenarios across industries has been argued and regarded as one among the many causes and factors of change in organisations. In this regard, Hayes (2010, p.17) stated that with increasing globalization and venturing into new markets, organisations were forced to develop and adopt alternative leadership styles and management structures as an alternative of incorporating new foreign markets. Similarly, increased technology revolution and changes led to the adoption of alternative communication and production processes across global industries in a move to increase efficiency, while reducing production and operation costs. However, in the process of executing the changes, Cameron and Green (2012, p.16) argued that organisations have faced a series of factors, either supporting or opposing such desired changes. A case study of such antagonistic forces is in the Lakeside Hall Hotel, which is facing a dire need to change its systems of operations as a measure to regain the desired industry standards of quality and customer care as well as for serving good quality. However, the change process is not expected to be a smooth operation, as there are resisting forces. In order to evaluate the ideal changes viable for execution, this report develops a critical organizational internal analysis, developing a force field analysis and an internal audit through a SWOT analysis. Consequently, the report develops a series of change recommendations and their ideal execution system as a measure to increase current organizational standards and reputation. 2.0 Force Field Analysis A field force analysis is a toll applied in evaluating factors influencing change in an organization. In this regard, Hayes (2010, p.107) argued that change is a dependent variable in any organization whose occurrence is a reactive approach to a wide range of influencing and motivating factors. On the other hand, Andriopoulous and Dawson (2008, pp.13-14) stated that human beings are resistant to change by nature. As such, although change is a viable tool for any organizational development and market competitiveness retention in the long run period, there is numerous change opposing forces. In this report section, this analysis develops critical evaluation of factors supporting and initiating the change process in the Lakeside Hall Hotel, as well as evaluating factors that are opposed to change and that should be overcome prior to initiating a successful change process in the organization. 2.1 Change Support Factors The change support factor in a fore field analysis represents the factor that serves as the proactive signals and motivation for the development and initiation of change, process. Among the change influencing factors for the Lakeside Hall Hotel include the external industry regulators, customer changing needs, market competition and technology changes. 2.1.1 External Industry Regulators An evaluation of the hotel operations, establishes that the government through its relevant agencies conduct regular standard evaluation of the existing regional hotels as a tool for ensuring quality and standard retention in the industry. As such, the government standard evaluation in the last two years has demonstrated a declining standards conformance by the organizational operations and systems, exposing the hotel to not only the risk of closure, but so a declining brand image across the market. As such, the established findings and the need to improve standard performance evaluation ranking in the future, serve as a proactive change, motivating factor for the hotel to initiate corrective measures through a change process. 2.1.2 Customers Changing Needs An additional motivational change tool for the hotel is changing consumer needs. In this regard, a case study evaluation on the organization has illustrated a growing concern on consumer dissatisfaction. In this regard, Adair (2010, p.27), argued that a leadership change is paramount in ensuring consumer needs satisfaction. For instance, the availability of phonographic materials in the guest rooms has elicited increased consumer dissatisfaction as well as the lack of creativity and innovation for ambience as a form of consumers’ attraction in the organizational dancehall and bar. Moreover, consumers have expressed dissatisfaction with the food quality in the hotel. Therefore, a summation of the entire consumer needs changes and complaints have elicited the need for the hotel management to develop alternative measures to improve the hotel consumer satisfaction in the future. 2.1.3 Market Competition An additional change motivational factor for the lakeside all Hotel is the growing competition in the market. In this regard, a majority of the hotels is developing the relevant systems and infrastructure as a measure and tool to attract a growing consumer base on holidays. In this case, services such as conference galls and spas are becoming a common market phenomenon thus offering no market competitive edge. Consequently, in order to enhance and develop changes in the organization, it is imperative to develop additional unique tools and services to counter the growing hotel industry competition. Therefore, based on this analysis, it is apparent that a growing market competition serves as a change motivational factor for the Lakeside Hall Hotel. 2.1.4 Technology changes A final and most important change motivational factor in the hotel is technological changes. As already discussed in the case study, the organization has applied to an extent internet market, with significant success rates. Therefore, this illustrates that changing technology forces, necessitate the development and emergence of alternative organizational operations systems such as marketing and management services. Thus, this report’s analysis argues that technology changes serves as a change motivational factor for the Hotel. 2.2 Factors against Changes Nevertheless, although there is a wide pool of factors supporting and motivating the need to initiate a change process in the Lakeside Hall Hotel, the organization faces similar challenges as opposed to the development of a change process. In this regard, the factors, including but not limited to financial constraints, the organizational culture, and the executive management, advocate for the retention of the current management approach rather than initiating a change process (Mullins, 2011, p.23). This report sub-section develops a critical review and evaluation of each of these factors and how they oppose the development and initiation of a change process by the hotel venture. 2.2.1 Organizational Culture An organizational culture as Mullins (2011, p.34) described is the pattern and approach through which an organizational venture conducts its operations through. In this regard, such a culture is evidenced in the manner in which an organization conducts its operations, the adopted ethics and values, as well as the general organizational perception of the market, consumers and the competition. In this regard, such an organizational culture influences an organisations response and regard for change either supporting or opposing it. In the case of the Lakeside Hall Hotel, the organization has developed a culture of employee freewill where each of the departmental functions and employees function independently. As such, this has reduced coordination and collaboration between departments, a virtual that has increased resistance to change due to the employees’ fear of the unknown and the subsequent fear of losing the current enjoyed freedom and functioning liberty, although such has demonstrated increased negative implications on the organizational performance and reputation. 2.2.2 Financial Shortages An additional change resistance factor in the Lakeside Hall Hotels is the concept of its financial stability and availability. Fineman, Gabriel and Sims (2010, p.32) argued that any successful change process requires a large capital input as a means to developing the required change infrastructure as well as sustaining any established change systems. As such, in the development and initiation of a change process, organizations should reserve as substantial capital share as a means to finance the change process. However, an evaluation of the Lakeside Hall Hotel illustrates a low financial base. In this case, although the organization is a four star hotel, a declining consumer base, with increased competition has reduced the ventures financial stability. Consequently, although the organization is in need of a change process to counter further competition effects, there is a wide range of financial challenges opposing the change process with a lack of enough financial bases for the process funding, risking its failure. 3.0 SWOT Analysis In order to develop relevant change process recommendations, it is imperative to evaluate and conduct an exclusive organizational systems analysis. In this context, one of the most a viable internal system audit tools is the strength, weakness, opportunities, and threats (SWOT) analysis tool, based on which strategic decisions and recommendations are formed (Fineman, Gabriel and Sims, 2010, p.72). As such, this report section offers a critical evaluation of the Lakeside Hall Hotel internal systems as a tool to evaluate areas for continuous improvement as well as correction to increase industry standards and reputation that the hotel case study illustrate as falling with each operational year. 3.1 Strength One of the critical organizational strengths depicted by the Hotel is based on its location and infrastructural features that offer it a competitive edge over other competitors. An organizational infrastructure serves as its key competitive edge as it forms a basis on which subsequent operational systems and situations are based. On one hand, the Lakeside Hall Hotel has developed proposer four star hotel infrastructures. For instance, the organization has developed conference halls with an overall capacity of 100 delegates. As such, this has increased the overall organizational service base, through diversification as the organization not only relies on the provision of food and guest rooms to its consumers. Moreover, in terms of its guest rooms, the organization has established a large 60 unsuited bedroom that is fully furnished and equipped with world class facilities. In this regard, the developed proper services and infrastructure has increased the organizational reputation in the market, thus enabling it overcome the existing market threats. In addition, the organizational hotel location is an added advantage to its overall market competitiveness. In this regard, the hotel is located on a 60 land acre with a lake frontage. Consequently, the large land offers the hotel guests enough and ample space for leisure and walking as a form to relax. On the other hand, the frontage to the lake offers the hotel guests the additional leisure offering the client an added advantage over those visiting peer industry hotels that lack such an added location merit, as very few global four star hotels and especially in the region offer such lake view location. 3.2 Weakness Besides the availability of a wide range of strengths depicted by the hotel infrastructure and location, the venture has its wide share of weaknesses. On one hand, a key weakness issue with the organization is the organizational culture. In this regard, the Lakeside Hall Hotel has increased the overall organizational weakness in its operations globally. On one hand, the organization lacks a proper employee productivity evaluation practice. In this regard, the organizational employees are employed on a permanent basis and thus no regular evaluation of their performances. Consequently, this has led to a reducing employee motivation to performance and productivity as there are no rewards or punishments for either performance or non-performance in the hotel. In this case, increasing employee reduced performance and lack of productivity has served as a cost of production increment factor as well as a performance standards declining factor. In addition, the organization has its weakness in the lack of proper training program for the organizational managers. In this regard, the organization lacks a proper training and development program based on which the managers’ skills could be improved. Consequently, this has led to a decreasing manager’s decision making efficiency and quality as well as their ability to manage and effectively run the respective hotel departments. Consequently, the organization lacks the required human resource workforce quality that is a virtue in the hotel industry for increased standards, retention as well as consumer satisfaction and confidence in the market. Further, the organization faces a weakness in its recruitment and employment procedure where managers such as the sales managers serve in their respective departments for a very long period of time without transfers and evaluations. Consequently, this reduces the organizational manager’s ability to explore and attain their full potential, thus reducing its market effectiveness and competency as compared to its industry peers. 3.3 Opportunities Although the Lakeside Hall Hotel has its share of weaknesses, there are still a wide and vast number of industry growth and development opportunities. One of the strategic opportunities available for the venture is the concept of internet marketing. In this regard, internet marketing has merits of, both in terms of the consumer base reach as well as on the marketing costs involved. In this regard, through increased internet marketing, the venture will reduce its overall marketing spending as well as increasing the organizational consumer base reach. In addition, the hotel industry is increasingly expanding with growing global tourism. In this regard, global tourism has increased global movements, thus supporting the hotel industry. As such, although the competition levels are increased, the industry has the opportunity of expanding and acquiring increased consumer base globally. Therefore, there is the increasing opportunity that the organizational consumer base will grow and expand into the future. In addition, technology changes present an opportunity for increasing the organizational efficiency. In this regard, through increased technology application and adoption, such as automated ordering and bookings would increase the organizational management and operational efficiencies thus promoting and increasing its future growth and expansion. 3.4 Threats Besides the development and presence of an increased development opportunity, the organization faces a widespread base in the industry. In this regard, the hotel industry is facing a wide range of challenges and threats, especially from the increased internationalization effects. In this case, multinational hotels are expanding into new markets. In this case, the hotels have enough capital and reputation to influence and capture increased consumer bases. As such, the imminent development of multinational hotels within the Windermere region exposes the Lakeside Hall Hotel to the risk of losing out on its location merits as well as the existing consumer base. Thus, this would eventually lead to decreased hotel earnings and the probable eventual hotel collapse. In addition, there is the threat of increase standards rise. As such, this will expose the organization to the need and requirement of developing new infrastructures as well as systems. Consequently, although a positive reputation development approach, the system will increase capital pending, thus straining the organizational capital resources. 4.0 Recommendations Based on a strategic evaluation of the Lakeside Hall Hotel situation, it is apparent that the industry is changing and requires the organization to develop and evolve its systems to enhance the organizational competitiveness into the future. As such, based on the developed organizational SWOT analysis, this report review develops a wide series of recommendations through which to develop and expand the organizational effectiveness and efficiency. Among the key change recommendations developed in this report is the case of continuous improvement, employee appraisal, technology application and expansion respectively. 4.1 Continuous Improvement Mills and Dye (2006, p.11) described the continuous improvement system as the practice and approach through which an organization increases the efficiency of its operations on a regular basis. Under a continuous improvement system, organisations apply two strategic alternative approaches, namely benchmarking and the blue ocean strategies respectively. On one hand, under the benchmarking continuous approach, organizations seek and evaluate the practices and strategies adopted by the best performing organisations in the industry. As such, they evaluate their own systems against the best in the industry, thus improving their strategies’ to match the best performers in the industry. On the other hand, Grint (2005, p.276), stated that under the blue ocean strategy, an organization improves its performance and systems through an internal evaluation system. In this case, an organization set individual targets d consequently evaluate actual performances against the targets to establish any variances and areas requiring focus and improvement. Based on this theoretical evaluation, this report recommends that the Lakeside Hall Hotel should apply the blue ocean strategy as its continuous improvement process. On this case, the organization should initiate a target development approach where the executive management should develop annual organizational strategic targets to increase market competitiveness. Consequently, the respective organizational departmental heads should be tasked with the mandate of developing departmental targets to enable the organization achieve the set goals. As such, an annual review should be developed at the departmental levels to evaluate against the targets and actual performances, as a measure of identifying failing and declining departments. Thus, in the long run, this strategic approach will enable the organization increase its overall performance thus effecting the much needed changes. One of the strategic justifications and rationale for this organizational change process approach is the gradual nature of the system. In this regard, the gradual and milestone based approach will on one hand reduce employee resistance often experienced in the case of radical organizational change processes (Collins, 1998, p.132). In addition, the inclusion of departments in developing annual targets increases employee participation, thus enhancing their change process and improvement trends support, a key ingredient in a change strategy success. 4.2 Performance Appraisal A fundamental issue affecting organisations globally is the cost of acquiring and retaining the relevant human resource in an organization. In this case, organisations globally have developed human resource management systems through which to regulate the flow and cost of their HR functions. Hughes (2010, 143) asserted that among other viable approaches adopted by organisations in the recent past is the execution and use of appraisal systems on employee productivity as a form of rewarding them. In this case, most declined and abandoned the traditional permanent employment contracts and instead applied the annual hours and the zero hour’s employment contract approaches. While as under the annual hours employment approach the employee are mandated to work for a given number of hours, the zero hours approach has no minimal working hours. Although with their share of challenges, the new employment approaches ensure the matching of employee productivity with rewards, under the accounting matching concept that argues that revenues should be matched against the included costs in producing them (Palmer, Dunford and Akin, 2006, p.44). In the case of the Lakeside Hall Hotel, this report argues that the organization should abandon the current employment system. In this case, this decision is based on the established cases such as a long serving sales personnel manager without the realization of the organizational sales vision potential, as well as the declining food and room management quality. Instead, this report advocates for a performance appraisal approach development to vet and evaluate the rationale and economic benefits. In this regard, the proposed appraisal system should evaluate the employee job descriptions against their rewards. Moreover, it should evaluate the number of complaints from consumers on the employee tasks as well as the standard ranking of such tasks. Consequently, only the employees with a high consumer satisfaction and high standard ranking should be considered for promotions and increased rewarding. Moreover, annual standards should be set of employees stating the maximum consumer complaints and lowest standards, ranking acceptable failure to which such employee contracts should be terminated. On the other hand, for the new organizational workforce, employment should be based on performance contracts based on whose conformance an employee term of service could be renewed. Although a strategy likely to incur employee resistance as its risks their security of tenure and force productivity across the workforce, the execution of this strategic approach will facilitate increased organizational efficiency and standards improvement in the future. As such, this will enable the hotel to overcome its current challenge of declining standards as well as a rising consumer dissatisfaction trend. 4.3 Technology Application A final strategic alternative for effecting change in the industry and to the Lakeside Hall Hotel, his evaluation report advocates for increased technology application. One of the fundamental challenges facing the organization is the concept of evaluating performance and system progress in a timely and real time basis. As such, this has led to decreasing customer care service as well as declining hotel standards despite the high level infrastructure development. As Burnes (2009, p.235) stated, that one of the strategic approaches to managing change is through technology application Consequently, this analysis argues that the hotel should incorporate the use of technology as a paradigm shift from the current system. As such, the application of technology would facilitate organizational management in that it would increase the efficiency through which the organization managers control and manage the employees across the departments (“Harvard Business School”, 1998, p.139). Moreover, this would increase the organizational quality control system in which the hotel could revise its room management as well as the innovation aspects as a tool to promote increased consumer satisfaction rates. 5.0 Conclusion In summary, this evaluation report develops a critical evaluation through which the Lakeside Hall Hotel can effect and develop a change process for effective organizational performance into the future. In the evaluation report, the evaluation establishes that the organizational change process support factors in the organization include the changing third party factors such as the standard evaluators, increasing market competition and increased technology changes in the market. On the other hand, the evaluation establishes that the existing organizational culture, management style and financial shortages serve as the ideal factors opposing and resisting change in the hotel. Therefore, based on this review, the analysis establishes that under the SWOT analysis, the organization has its key strengths include infrastructure and location merits, with its weaknesses emanating from the existing organizational culture and management approach. However, the evaluation list a growing industrial base ad global tourism as key among the existing industry opportunities if the venture overcomes the existing threats on increased competition from global organisations. Thus, in a bid to enhance changes and increased future organizational performances, the report develops three key change processes, strategies, including a continuous improvement process, employee appraisal and technology application practices. This report concludes that upon the implementation of the proposed change process strategies, the venture will increase its overall market competitiveness and profitability in the future. References Adair, J., 2010, Develop Your Leadership Skills, Kogan Page, London Andriopoulous, C. and Dawson, P., 2008, Managing Change, Creativity and Innovation, Sage, London Burnes, B. 2009, Managing Change, Financial Times/Prentice Hall, Harlow. Cameron, E. and Green, M., 2012, Making Sense of Change Management, 3rd Edition, Kogan Page, UK Collins, D., 1998, Organisational Change – Sociological Perspectives, Routledge, London. Fineman, S., Gabriel, Y. and Sims, D., 2010, Organizing & Organizations, Fourth Edition, Sage, London. Grint, K., 2005, Leadership: Limits and Possibilities, 1st Edition, Palgrave Macmillan, Basingstoke: Harvard Business School, 1998, Harvard Business Review on Change, Harvard Business School Press, Harvard. Hayes, J., 2010, The Theory and Practice of Change Management, Third Edition, Palgrave Macmillan, Basingstoke. Hughes, M., 2010, Change Management – A Critical Perspective, 2nd Edition, CIPD, London. Mills, J H. and Dye, K., 2006, Understanding Organisational Change, London, Routledge. Mullins, L., 2011, Management and Organisational Behaviour, 9th Edition, Pearson Education, Harlow. Palmer, I., Dunford, R. and Akin, G., 2006, Managing Organizational Change: A Multiple Perspective Approach, McGraw Hill, Boston. Read More