Michael John Langley
Case # 10, Good Hotel: Doing Good, Doing Well?
Saturday, November 08, 2014
In this paper, we will examine a case from the text book Strategic Management by Pearce and Robinson. Case #10 Good Hotel: Doing Good, Doing Well is the focus. In the examination, basic question will be given a view point. These viewpoints will discuss the topic of; what is the mission statement behind the operation concept. The options that can be considered by the owner with the pros and cons of each possible opportunity. What type of customers is the business entity trying to target? The marketing strategy that is used to promote the operation. Is the market ...view middle of the document...
At the current time, the lodging industry was in a recent downturn caused by the recession of 2008 and 2009. During the upturns in the industry, it is typical for hotel operation to expand on their capacity. However, it was commonplace to have the new accommodation available just as the industry starts to experience the normal cyclical contractions. The results are lower revenues per room.
(Good Hotel_Queen.jpg, 2014)
The Vision and Mission of the Good Hotel Concept
The Good Hotel is dedicated to the green building trend. The company strives to be a responsible steward of the environment. The company uses recycled products and materials in the constructions of the hotel. Bed frames, lighting and even the bedding are made from recyclables. In addition, the organization focuses on employee retention. The origination has one of the lowest turnover ratios in the industry. The Good Hotel, has a turnover ratio of around 30 percent compared to the industry norm of 70 percentage. “A hotel with a conscious”, is the phrases used in the mission statement. Rooms are moderately priced to draw in the middle income group or budget minded.
Ms. Pam Janusz Dilemma
Ms. Janusz is faced with a heap of uncertainty, in her performance rating and recommendations there should be a well-defined focus on increasing business. The operation that she managed has seen an uptick over the last six months compared to the industry. However, over the twelve months preceding the operation has lagged far behind the industry bench markets. Good Hotel could convert to a more conventional format which would attract a broader based traditional crowd. It is unlikely that new owners would want to assume the risk or cost at a time when the industry cash flow is restricted. Ms. Janusz should place top priority on working with the new owners on what the goals and objects are in mind. Then, Ms. Janusz should train and educate the current staff for the changeover. This would be in line with the efforts that were established on low turnover. It is understandable that patrons of the establishment have a stronger bonding when the faces are familiar.
Good Hotel’s Target Customer
The hotel is targeting the earth friendly patrons. The green hotel market niche is a relatively new onset. Typical demographic data on the client tell base are college educated with...