Tranquility International Resort - Research Paper Example

Tranquility International Resort INTRODUCTION Tranquility International – a name that symbolizes a premium resort experience. The resort is located in the Currumbin beach of the famous Gold Coast City which is the second largest local government area in Australia. [1]. Tranquility International resorts offer a chance to come and indulge in the exotic sunny beaches and the happening night life of the city. During the past few years the business of Tranquility international has flourished by leaps and bounds which is in line with its effort to treat the guests as royalty and make their stay a blissful expedition. A good restaurant is always recognized by its taste, and dining at Tranquility is an experience in itself. The Continental restaurant of Tranquility is one of its kind French style restaurants, housing chefs having tremendous experience which brings exclusive flavors in our cuisine. Continental restaurant is a significant business unit of Tranquility which earns around 60% of its total revenue. The number of tourists that visit Gold Coast every year is around 10 million which generates revenue of about $4.4 billion for the local government. [2]. A recent analysis by our Marketing department has shown that the number is expected to augment. Keeping the research into consideration, this report put forwards the viability of a project which intends to increase the seating capacity of Continental restaurant from 100 seats to 150 in total and to avail several business prospects. The Marketing department has already done extensive campaigning of the project and the response is overwhelming. According to an initial estimate, the extension in the seating capacity will increase the business volume of the resort by 50%. A team of few individuals has been setup and various responsibilities have been assigned to each of them. Yunjeong Jang has been assigned the task of approaching any reputable bank and fulfils the necessary procedure for the sanction of a loan facility amounting to 20,000 USD. Moreover, Yunjeong Jang will also be responsible for the renovation work. Kyung Wan Chu will be supervising the procurement and setup of new furniture and will also be involved in the architectural details of the project. Naif Alosaimi will be the in charge of identifying recruitment need and publishing the job advertisement in the local newspaper along with organizing a training program for the new and current staff. Marketing aspect of the project will be managed by Eun Sil Jang who will design a broad promotion campaign and will analyse the feedback from the customers. PROJECT SCOPE The extension in the Continental restaurant will be providing us with an opportunity to serve an additional number of tourists – and it is our customers we value the most. Tranquility international has always strived to provide its guests with unmatchable hospitality and service making their stay a cheerful experience. The completion of the proposed project will not only increase our revenue, but will also enable us to adhere on our vision of becoming the premium resort in the Gold Coast City. In order to duly complete the project, there are a number of tasks which must be completed. This include arrangement of finance, renovation of the dining hall, procurement of furniture and decoration, hiring of new chefs and organizing a training program for the existing staff. Since the summer holidays is about to start in a few weeks, the expected time line of the project is set accordingly. The total estimated cost of completion of the project is estimated be 20,000 USD which shall be financed by obtaining running finance facility from ABC Bank Limited. Keeping in consideration the requirement of Sustainable Planning Act 2009, public notification of the extension has been made so that the public can send their concerned responses. [3].The team has short listed a list of vendors and suppliers for the project. Since we value quality the most, only those vendors will be hired for the project that have a reputable experience and background in their relative field. The proposed project involves a great deal of financing and time, on account of which, adequate measures have been taken for covering the risk associated incase anything deviates from the plan. The report, once finalized, will be presented to the executive management of the resort along with the stake holders in the project. Before commencing any project, it is of prime importance to identify the associated stake holders. ABC Bank Limited is one of the major stakeholders regarding the provision of running finance facility of USD 20,000.Vendors and suppliers from whom different products and services will be required during the course of the project also have interest in the proposed project. Tranquility Group of Companies is also one of the stakeholders since it the sole sponsor of the project. In addition to the discussed, the customers and employees of Tranquility International are also expected to be influenced by the outcome of the project. In order to effectively complete the project, the utmost dedication and commitment of the appointed team will be required. Since the current staff will not be sufficient enough to cater the increased number of the customers, the human resource department has suggested appointing 5 employees, which will constitute of 4 chefs and 1 assistant manager, having ample experience in hotel servicing. In order to raise the standard of our service, the marketing department conducted a survey where customers were asked to fill a questionnaire asking how they would rate the current service of the resort and what changes they wish to see. Based on the feedback, a training session has been designed in which our current and newly hired staff will be given a presentation on how to raise their level of service. WORK BREAK DOWN STRUCTURE The work break dows structure is divided into 8 different areas which has been allocated to 4 different individuals of the team. The most time consuimg task is the staffing and marketing of the project which requries 14 days and 17 days respectively. The plan has been prepared taking special care that no team memebr is burdend with excessive tasks and also ensuring that no day is wasted. GANNT CHART The Gannt chart more clearly explains the timeline of the project and analyse the commencing and completion of various tasks. No other task will be commenced untill the financing for the project has been obtained which is clearly visible in the Gannt Chart. The marketing and staffing task has been spread throughout the timeline whereas the training session has been organized after evaluting the customer feedback. CRITICAL PATH ANALYSIS The critical path analysis suggests the shortest possible time through which the task can be completed. PROJECT BUDGET RISK MANAGEMENT MATRIX Risk Event Probability Consequences Responsibility Response Bad weather Moderate Catastrophic - Substantial delay in schedule Team member Buy wet weather gear and seek approval for time extension Poor team skills Moderate Major – poor work and motivation of the project drifts Project manager Investigate team and organize Training activities Bank dose not lend money None Project cannot commence Project manager Find another bank No increase in customer base Unlikely No increase in profit Team member Project manager Do more advertising and give out free vouchers to customer Lack of having a good communication with trade supplier Unlikely Delay in schedule Project manager Change supplier and find the best way to communicate with them Worker injured Rare Inform project manager and expect minor delay in schedule Project manager Find another worker PROGRESS REPORT In order to keep the executive management of the resort updated on the project, a progress report will be delivered one week after the commencement of the project. The report will be addressed to the sponsor of the project, Tranquility Group of Companies and to the major stake holders. Primarily, the report will address status of the project and whether significant deviation has been observed from the planned schedule or not. Other issues the report will concentrate on pertains to financing, procurement of merchandise and renovation. FIRST PROGRESS REPORT As per the latest development, Tranquility Group of Companies, the sponsor of the project, is seeking to adopt the strategy of corporate diversification. Recently a proposal for opening of a car showroom has been approved by the Board of the Group. Keeping the new development into consideration, the sponsor has requested to complete the renovation of the Continental restaurant within 24 days as they wish to be more focused towards their new venture. Keeping the reduced timeline into account, the project schedule has been revised. Following is the revised Work Break Down Structure, Gantt Chart and Critical Path Analysis reflecting the cutback in the time. WORK BREAK DOWN STRUCTURE (REVISED) GANNT CHART (REVISED) CRITICAL PATH ANALYSIS (REVISED) PROJECT BUDGET (REVISED) SECOND PROJECT REPORT The second progress report discusses the developments of the project after the completion of 12 days from the commencement. A significant deviation has been observed in the total cost of the project as compared to the forecasted figure. The actual costs have turned out to be 12% higher than the budgeted which pertains to the recent hike in rate of inflation. Following is the actual budget report in comparison with the budgeted figures along with the variation. A significant portion of the project has been complete successfully. The negotiation related to the sanctioning of loan facility from ABC Bank limited has commenced and funds will be transferred to the Tranquility International account once they are finalized. Moreover, the deliberation with the appointed architect regarding the architectural design has also commenced. The task which should have been commenced by now and has not been started is the advertisement of the job vacancies. This delay pertains to the fact that the classified section of the daily newspaper has already been booked by other corporations for their ads and our representative was unable to find a date for placing the job vacancy ad. As far as tasks which in progression are concerned, the marketing plan is still in development and will be finalized shortly. Although the selection and arrangement of furniture and fixture was to take place later on during the project, the same has been completed before the schedule. Moreover, identification of recruitment need and job position documents have also been completed on time. No major issues were identified during the course of the project apart from few delays on part of our vendors and suppliers which were handled subsequently. Bad weather conditions also proved to be an obstacle in getting the job done, but effective time management and efficiency of the team surpassed it. RECORD KEEPING In order to ensure that the project has turned out to be feasible and lucrative, certain documents will be archived for future use. Initial forecast pertaining to the gross sales, expenditure incurred on training new staff, expenditure incurred on the purchase of new furniture and decorations will be stored for record keeping. A report formulated by the budgeting representative which compares the actual sales and revenues with the forecasted figures and the estimated time allocated for the project as compared to the actual time utilized will be key a document for future referencing. Also, the correspondence with ABC Bank Limited relating to the sanctioning of the loan finance facility will also be archived. After the finalization of the project, a new assistant manager will be appointed to take care of the day to day function whereas the current assistant manager will be promoted to the level of hotel manager. Also, in order to keep on evaluating our employees and improving their abilities, a new system has been implemented according to which employees will be now be separated into two different cadres – Senior Staff and Junior Staff. Mentoring the junior staff will be considered as one of the key responsibility of the senior staff, including a monthly performance appraisal. Once the project report has been finalized and signed off by the executive management of the resort, ABC Bank Limited – the financer, Tranquility Group of Companies, and the Quality Control Department of the local city government, a copy of the project will be delivered to all the stake holders as mentioned previously in the report. FINAL COMPLETION REPORT The entire project team has displayed great commitment and dedication which has enabled the project to be completed on time. Each team member fulfilled their responsibility with utmost diligence and professionalism. Although certain incident took place which proved to be troublesome but were handled appropriately. The major issue that arose during the project was of the budget. The actual cost was 12% higher than the budgeted amount which was due to the change in rate of inflation. In order to bring the cost within acceptable limit, certain expenditures were curbed. Moreover, negotiation with the bank regarding raising the sanctioned limit of the loan facility also proved to be successful. The comments from all the stakeholders involved were evaluated and the results are quite satisfactory. The local city government is satisfied with the renovation and extension of the project and has issued a certificate evidencing the compliance with the requirement of Sustainable Planning Act 2009. All the suppliers and vendors are looking forward to have a future association with the resort as the extension in the restaurant facility has brought new business prospects for them also. As per the latest report from our marketing representative, the feedback from the customers has been highly encouraging and positive. The customers are content with the refined ambiance and sophisticated service of the restaurant, along with employees who are highly motivated after the training session and are now more satisfied with their jobs. Keeping in view the substantial effort by the project team, there are few areas in which there is room for improvement. It is always prudent to approach more than one financer for the required funds to reduce the chances of rejection. Always incorporate aspects such as inflation, recent changes in fashions, taxation and related policies of the local government, while drafting a forecast of the budgeting expenditure. The project has proved to be great inspiration for the entire team who has proved through their unmatchable efforts that focus and commitment is all what it takes to achieve goals and turn vision into certainty. Class Speech Work Breakdown Structure (Revised) The number of days has been reduced from 32 to 24 as per the revised deadline for the project. As reflected in the revised WBS, adjustment has been made in the tasks related to selecting and getting approved the architectural designs, renovation, procurement of furniture, induction interviews of the new employees and the marketing plan. Out of he discussed, the major adjustment is being made in the tasks related to marketing. Gannt Chart (Revised) As presented by the Gannt chart, no other task can be completed unless and until the required financing has been obtained. The procurement of furniture and identification of recruitment need is given priority on other tasks. Also visible in the Gannt chart is the fact that the orientation and training course for the employees has been organized after analyzing the feedback from the customers. The marketing activities have been spread evenly throughout the timeline. Critical Path Analyses (Revised) As you can see in the Revised CPA, the shortest possible time to complete the project has not changed. Project Budget (Revised) In order to pace up the renovation task, the builder has been asked to complete the renovation project within 12 hours as compared to previously allocated 24 hours. The builder has consented to our demand but with an additional charge of USD 2,000 making the total cost allocated to builder USD 9,000. Keeping the revised budget into consideration, Yunjeong, handling finances, has approached ABC bank limited in order to negotiate with them the revised term of loan policy to increase the total financing up to USD 22,000. For power Point Presentation Adjustment to accommodate reduction in time Resources The main resource for the project is the loan finance facility obtained from ABC Bank Limited. In order to speed up the completion of the project, negotiation with the bank is under process so that they can disburse the facility as early as possible and the procurement and renovation phase can be commenced immediately Stakeholders The reduction in the deadline for the project will cause the staff to work overtime beyond after their normal working hours. YJ will have to ensure that the task of choosing a builder and demolition is completed within a day as compared to previously allocated 2 days. Eunsil will have to curtail the marketing campaign into 3 days Quality assurance We put great focus on quality and will try to ensure the quality is not affected by the cut back in the allocated timeline. Revised Risk Matrix Works Cited [1] “Gold Coast City.” Wikipedia. Wikimedia Foundation, Inc., n.d. Web. 10 Sep. 2010. [2] “Gold Coast, Queensland.” Wikipedia. Wikimedia Foundation, Inc., n.d. Web. 10 Sep. 2010. [3] Sustainable Planning Act 2009. 2 SPA. (2009) Read More