Task 2:
The situation analysis report as is clear from the name is a report to assess the situation of an entity or an organization. In this case the situation analysis report will be helpful in analyzing the current situation of ABC Hotel, an Australian luxury hotel.
The current organizational structure of an entity helps in assessing how the operations and affairs are carried out within the entity. The success or failure of an organization is dependent on the organizational structure hence, it is key to the evaluation of situation within an organization at any point of time. The, template below shows the organizational structure of ABC Hotel as on and before the date of the acquisition of the hotel by Failte Events Pty Ltd.
Thus, it is clear that the organization has a standard structure with Board of directors at the top of the pile taking all major decisions as far as the goals and objectives of the hotel are concerned. Under the board of directors the hotel has appointed a CEO and CFO. CEO is a chief executive officer and Chief financial officer. The financial department of the hotel operates under the leadership of CFO. The operating level managers report to the board of directors directly. Such manager include marketing manager, event manager, HR manager, customer service manager, hotel operations manager, IT outsourced and catering services – outsourced.
The hotel currently offers the following types of services:
| Types of services | |
| Allowed to hold conferences in hotel. | 2 medium conference rooms |
| Workshop and seminar services. | The hotel will hold workshop and seminar services in 1 large room if 2 middle conference rooms are not available. |
| Meetings held. | The hotel has four break out rooms apart from one large conference room. These rooms can be used to hold meetings. |
| Events by companies or teams to build teams | The hotel has two medium conference rooms, four break out rooms and a function room. These rooms are given on rent to hold company events. |
Departments and officers
| Departments | Officers |
| Finance | 3 full time financial officers |
| Marketing | 1 part time marketing officer, 1 part time social media officer and a content writer officer appointed on contract |
| Event management | 2 full time event planners and 1 full time event coordinator |
| HR team | 2 part time HR managers |
| Customer service | 2 team leaders with 4 customer service officers |
| Hotel operations | In hotel operations there is 1 maintenance officer; 4 staffs of security and 5 employees to attend rooms. |
| IT services | No employees as the entire IT services have been outsourced to different companies. |
| Food and beverages | Food and beverages services outsourced. |
Survey documents:
- What are the services offered by the hotel?
- The price of these services charged by the hotel?
- The demand in peak and lean season?
- Average demand of hotel rooms?
Role play:
CEO ABC Hotel: How we can improve the demand of hotel rooms in the future?
Employees: We need to provide better quality of foods and services to the guests in the future.
CEO ABC Hotel: Apart from food anything else that we should consider improving?
Employees: We also need to improve the official website of the hotel to make it more user friendly and easier to use. This will help the users to book hotel rooms without any difficulty.
CEO ABC Hotel: Oh yes, the official website of the hotel is certainly not up to the mark. In fact I have also used the website but to no avail. Certainly we should do something about that website. Should we revamp this website or create a completely new website?
Employees: I think we should revamp the old website as the old website already have significant market value which will be missed if it is scraped and new website is created. Thus, revamping the old website is the best option as by doing that we will not only keep the identity of the hotel but also the existing market value of the website will be intact.
Task 3:
Develop an OD plan:
Hotel ABC is already an established hotel in Sydney however, the acquisition by Failte Events Pty Ltd is expected to improve the performance and position of the hotel in the future. Considering that it is a luxury hotel and provides accommodation to tourists hence, the importance of both physical and market access are extremely critical to the success of the hotel. A broad OD plan shall have the following for the hotel.
Improve the operational functions:
Improving the operational functions of the hotel is extremely important to the improvement of its performance and position. Operational functions can be improved by maintaining a proper schedule of the operations in the hotel.
Recruitment policy change:
The hotel should change its recruitment policy at first. It must have standard recruitment policy to recruit only professionally qualified individuals for different position including housekeeping staffs.
Ensuring that the quality of food is highest:
The management should ensure that the quality of food to be served to the guests is of top most quality. This will attract the guests more than anything else. Thus, the management must give extra emphasis on improving the quality of food of the hotel.
Immediate change in food and beverage policy of the hotel:
The hotel should have its own kitchen and kitchen staffs to improve the quality of the foods to be served to the guests. It is important to improve the food quality to attract more customers in the future and only way to improve the quality of food is by having an own kitchen and professionally qualified kitchen staffs to cook delicious food for the guests.
Outsourcing in all aspects have to be stopped:
The hotel should not outsource any of the internal affairs and operations. Thus, IT related services and operations shall also be conducted within the hotel to improve the overall efficiency of the hotel. Thus, recruiting qualified staffs to hand the IT related matters of the hotel is essential.
Segregation of responsibilities and duties:
Duties and responsibilities must be segregated properly to increase accountability of the employees and workers. The existing operational structure of the hotel should be improved to have a separate segregation between different works and operations.
Improvement in the management:
The management of the hotel or for that matter any other organization plays the most important part in the overall development and success of an organization or hotel as the case may be. Professionally qualified managers shall be included in the Board of Directors in their professional capacities to improve the overall management of the hotel in the future.
Improved accounting:
Accounting functions must be improved to account each and every single transaction of the hotel to enable preparation and presentation of financial statements from the accounting reports correctly. Apart from recruiting professionally qualified accountants it is also important to up to date the modern methods and system sot record the financial transactions. Thus, in addition to recruiting qualified accountants the hotel should use an appropriate accounting system online to record each and every single transactions correctly.
Questionnaire:
What are the steps to be taken to maximize the support and participation of stakeholders at the time of undertaking OD interventions?
| Strategy / technique | Description |
| Process of consultation | Consulting with different stakeholders of the hotel would be helpful in understanding the goals and objectives of an organization. |
| Evaluation of processes and results | Evaluation of processes and results of the hotel is crucial to the overall performance of the hotel. |
| Generation of ideas and options | The employees and staffs of the hotel shall be encouraged to come up with innovative ideas and suggestions. Reward and bonus announcement to the employees, workers and people in general for new and innovative ideas shall help in generating ideas and options for the hotel. |
| Conflict management and problem resolutions | Managing conflicts and come up with resolutions for different problems is essential to the overall improvement of the hotel and its performance. |
2 theories on organizational behavior along with relevant dynamics that are important to the planning and implementation of OD interventions:
| Types of organizational behavior and dynamics of organizational behavior | Description |
| Traditional | Traditional behavior theory based on the fact that the resources of an organization will have to be used effectively. with available the historic point of view of the |
| Modern | Modern behavioral theory includes use of extensive IT to improve the efficiency in utilizing the resources of the hotel. |
Impact of legislation and regulation of OD and change:
4 aspects of organizational culture:
| Organizational culture aspect | Relevance of the organizational culture in OD planning and implementation |
| Clan | A family like corporate environment that does not allow separation of different units |
| Adhocracy | Ability to adapt quickly is a concept based on Adhocracy theory. |
| Market driven | Market driven is the fact that the market is always drives the behavioral pattern in this kind of organizations. |
| Hierarchy | Hierarchy is a system which is followed most as the standard hierarchy ensure that each and every single aspect is correctly considered and included. |
PESTLE analysis:
SWOT analysis:
Summary of evaluation of information and data that are pertinent to specific areas within an organization:
Stakeholder analysis:
| Stakeholder (individual / group) | Whether internal stakeholder (I) or external stakeholder (E) | Defined roles and responsibilities of the stakeholder | Assessment of power and interests in relation to the organization | Expected contributions to OD intervention |
| Workers – Individual | I | The workers are responsible to discharge their duties and responsibilities correctly. | The power is in the hands of the Board of directors who are also most the owners of the hotel. | Improvement in the performance and position of the hotel is expected by the end of the day. |
Recommendation:
Ensuring recruitment of properly qualified individuals for different positions shall be helpful in improving the performance of ABC hotel. The management must take appropriate course of action to deal with the problems immediately. Improving physical and marketing access to the hotel will improve the overall functions of the company.
Task 4:
Section 1
Role play: It is important to note that role play is an important part in the franchise as without which it would have been difficult to keep tax below the preceding.
CEO: The ABC hotel has been in business for number of year now. How’s the feedback been?
CFO: Feedback on what you want to know sir? Also let us welcome the guests.
Employee 1: The feedback collected show that in general the responses are extremely positive as far as the quality of reporting is concerned.
Employee 2: The operational services will have to be improved in the future.
Employee 3: The tourists are facing problems in accessing the hotel due to lack of connectivity.
Based on the feedback it is clear that except some minor blip the feedback has been more or loss and positive. The functions shall be improved in the future to develop the business plan better. It is important to have professionally qualified indidviauls on different places to allow them to conduct the day today affairs in relation to the services. Developing and revamping the official website of the hotel shall further be helpful in attracting tourists from different parts of the globe.
Mail to: Board of directors.
To,
——————-.
Sir,
Subject: Develop email and write it down.
In order to improve the performance of the hotel in the future necessary suggestions as attached below shall be helpful.
Improve the operational functions:
Recruitment policy change:
Ensuring that the quality of food is highest:
Hotel is essential.
Segregation of responsibilities and duties:
Improvement in the management:
Improved accounting:
Task 6:
The budget is provided bellow:
| Growth 120% | ||||||
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Revenue | 1,500,000.00 | 1,800,000.00 | 2,160,000.00 | 2,592,000.00 | 3,110,400.00 | 3,732,480.00 |
| Less: Direct expenses | 900,000.00 | 1,080,000.00 | 1,296,000.00 | 1,555,200.00 | 1,866,240.00 | 2,239,488.00 |
| Contribution | 600,000.00 | 720,000.00 | 864,000.00 | 1,036,800.00 | 1,244,160.00 | 1,492,992.00 |
| Less: Operating income and / (expenses) | 3000000 | |||||
| Operating expenditures | 135,000.00 | 162,000.00 | 194,400.00 | 233,280.00 | 279,936.00 | 335,923.20 |
Key performance indicators in this case include increase in operating revenue, decline in expenditures and increase in profitability of the hotel. The ability to reduce the down time is extremely crucial to an organization. The importance of achieving growth in revenue and profit of the hotel are key indicators of the performance. The hotel firstly, expected to growth its annual sales by 20% however, looking at the current constraints the growth figures have been adjusted to 20% only instead of 30%. In addition just the situation context shall also be envisaged to find out the expected outcome if the sales revenue grow or declines in the future.
The adjusted revenue after adjusting the expected growth rate to 20% only is showing below:
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Revenue | 1,500,000.00 | 1,650,000.00 | 1,815,000.00 | 1,996,500.00 | 2,196,150.00 | 2,415,765.00 |
| Less: Direct expenses | 900,000.00 | 990,000.00 | 1,089,000.00 | 1,197,900.00 | 1,317,690.00 | 1,449,459.00 |
| Contribution | 600,000.00 | 660,000.00 | 726,000.00 | 798,600.00 | 878,460.00 | 966,306.00 |
| Less: Operating income and / (expenses) | 3000000 | |||||
| Operating expenditures | 135,000.00 | 148,500.00 | 163,350.00 | 179,685.00 | 197,653.50 | 217,418.85 |
Further the situational context ensures that incase or decrease is parts and parcel of life. The situation context watch is not correct for me to accept. Thus, for scenario analysis the expected figures under different circumstances change.
In case the revenue merely grow by 5% then the revenue and profitability of the hospital would be following.
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Revenue | 1,500,000.00 | 1,575,000.00 | 1,653,750.00 | 1,736,437.50 | 1,823,259.38 | 1,914,422.34 |
| Less: Direct expenses | 900,000.00 | 945,000.00 | 992,250.00 | 1,041,862.50 | 1,093,955.63 | 1,148,653.41 |
| Contribution | 600,000.00 | 630,000.00 | 661,500.00 | 694,575.00 | 729,303.75 | 765,768.94 |
| Less: Operating income and / (expenses) | 3000000 | 3,150,000.00 | 3,307,500.00 | 3,472,875.00 | 3,646,518.75 | 3,828,844.69 |
| – | – | – | – | – | ||
| Operating expenditures | 135,000.00 | 141,750.00 | 148,837.50 | 156,279.38 | 164,093.34 | 172,298.01 |
In scenario context what if the expected growth turns to negative. Then the amount of revenue and profit are provided below.
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Revenue | 1,500,000.00 | 1,425,000.00 | 1,353,750.00 | 1,286,062.50 | 1,221,759.38 | 1,160,671.41 |
| Less: Direct expenses | 900,000.00 | 855,000.00 | 812,250.00 | 771,637.50 | 733,055.63 | 696,402.84 |
| Contribution | 600,000.00 | 570,000.00 | 541,500.00 | 514,425.00 | 488,703.75 | 464,268.56 |
| Less: Operating income and / (expenses) | 3000000 | 2,850,000.00 | 2,707,500.00 | 2,572,125.00 | 2,443,518.75 | 2,321,342.81 |
| – | – | – | – | – | ||
| Operating expenditures | 135,000.00 | 128,250.00 | 121,837.50 | 115,745.63 | 109,958.34 | 104,460.43 |
Thus, there is always a possibility of decline in the amount of revenue and profitability of the company. In this case the revenue and profit of the company both have declined as the revenue has declined by 5% from earlier level.
Five questions:
What are the benefit of using remodeled official website to allow the clients to make necessary arrangements accordingly? How to improve the performance of the hotel and its look? What recruitment policy should be used? What are the benefits of in-house kitchen and online kitchen facilities? And how to continue on the path of sustainable growth in the future?
| Operating expenditures | 135,000.00 | 148,500.00 | 163,350.00 | 179,685.00 | 197,653.50 | 217,418.85 |
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Revenue | 1,500,000.00 | 1,575,000.00 | 1,653,750.00 | 1,736,437.50 | 1,823,259.38 | 1,914,422.34 |
| Less: Direct expenses | 900,000.00 | 945,000.00 | 992,250.00 | 1,041,862.50 | 1,093,955.63 | 1,148,653.41 |
| Contribution | 600,000.00 | 630,000.00 | 661,500.00 | 694,575.00 | 729,303.75 | 765,768.94 |
| Less: Operating income and / (expenses) | 3000000 | 3,150,000.00 | 3,307,500.00 | 3,472,875.00 | 3,646,518.75 | 3,828,844.69 |
| – | – | – | – | – | ||
| Operating expenditures | 135,000.00 | 141,750.00 | 148,837.50 | 156,279.38 | 164,093.34 | 172,298.01 |
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Revenue | 1,500,000.00 | 1,425,000.00 | 1,353,750.00 | 1,286,062.50 | 1,221,759.38 | 1,160,671.41 |
| Less: Direct expenses | 900,000.00 | 855,000.00 | 812,250.00 | 771,637.50 | 733,055.63 | 696,402.84 |
| Contribution | 600,000.00 | 570,000.00 | 541,500.00 | 514,425.00 | 488,703.75 | 464,268.56 |
| Less: Operating income and / (expenses) | 3000000 | 2,850,000.00 | 2,707,500.00 | 2,572,125.00 | 2,443,518.75 | 2,321,342.81 |
| – | – | – | – | – | ||
| Operating expenditures | 135,000.00 | 128,250.00 | 121,837.50 | 115,745.63 | 109,958.34 | 104,460.43 |
