Bampton Manor Hotel Bampton Manor Hotel is a boutique hotel in West Oxford shire owned by James Bance who has beenthe managing director and finance director of the business since its inception. The management is composed of mainly James’s relatives and therefore the restaurant is run like a family business where each family member is involved in the operations of the venture. Analysis of the macro environment Market The main market of the hotel since it was converted from being a wedding hotel has been the middle-aged professional couple who come to the hotel to celebrate special events such as birthday parties.
The hotel also occasionally receives other guests such as business people and tourists who only visit the village at special occasions. This kind of market is unpredictable since there can be no clear projections of the kind of customers to expect and their exact number hence posing a great challenge in planning. Furthermore, it becomes difficult to make products that suit the different kind of customers since each group has its own unique needs thus leading to the customers not being satisfied.
A business cannot be successful if it has not defined well its market and indeed all successful businesses usually have a well-defined target market (Viardot, 2004). Bampton Manor Hotel needs to define the kind of customers it needs to target and then specialize in making products that will fully suit them. There should be special events and promotions throughout the week in order to attract customers on weekdays. This will help in stabilizing the number of customers that visit the hotel in between the week and hence make it possible to be able to plan well for the customers.
The business should also be extended as it had been initially proposed to accommodate more customers. If these strategies are put in place the market will increase and consequently the revenue since market strategies are the main determinant of success of any business (Kotler, Berger & Bickhoff, 2010) Economic factors Economic factors contribute 30% to 50% of business success or failure according to Watson Business Model (Miles, 2011). Therefore, it is necessary for any business that is success oriented to have a clear understanding of the performance of the economy.
The environment of Manor Hotel is promising since most of the people are either employed or are running their own businesses. Jill also reports that some people were considering the area for film shooting for a TV show and some tourists had developed interest in the place. These factors are likely to influence positively the development of the company in the future since they clearly indicate the purchasing power that will prevail. The management should thus consider expanding the hotel to the capacity that Fred had suggested since the economic prospective are encouraging. Most of the rival companies seem to be offering their services at considerably low prices than Manor Hotel.
The hotel cannot determine the prices set by their competitors but they can influence them such that they end up benefiting. The prices should not be made to be too low since they will result to lose and the hotel will lose the dignity it has of producing quality goods. The prices should also not be too high since they will drive away customers and consequently lead to decline of the business.
The prices should therefore be set at the most efficient level where the company will enjoy the greatest success possible while meeting its objectives. This is because prices directly influence the profit made by any business venture since they are the main source of revenue (Brechner, 2012). Industry analysis The competitive forces surrounding Manor Hotel affect the operations and the decisions that the management of Hotel make. Most of the competing firms are big companies offering diverse services, which are normally demanded by many customers.
This has created pressure on the hotel to expand their operations as demonstrated by Fred when he says that if his father does not put into consideration the idea of enlarging the business he will move out. This is a sign of a healthy sector since it has a positive impact and it will end up making the hotel to widen its operations. Furthermore, an industry that is growing is characterized by good competition where the big companies influence the small ones to grow (Abraham, 2012). The existence of rival firms in the industry has impacted Manor Hotel directly or indirectly to offer quality services which could not be offered if the restaurant had monopoly over the sector.
The influence to offer better services arises from the inherent desire to outdoor each other in order to emerge the best in the sector and to gain the status of being ahead of the others. This demonstrates the indirect relationship that exists among competing business ventures and affirms that rival industries need one another for mutual benefit (Rosenau, 2003). A Competitor analysis The organizational structure of the management of the hotel is poor compared to that of the main competitors probably because it is run as a family business.
There is no clear definition on the flow of authority as evidenced by the receptionist when she says that she does not clearly understand who her boss is. The operations manager and the head chef also seem to be conflicting on managing the staff and they do not seem to understand their role as far as staff is concerned.
This lack of clear chain on the flow of command affects business negatively and creates rooms for mediocrity and bureaucracy in operation of any business. According to Max Webers Theory of Impersonal Management, efficiency is achieved through creation of division of labor, a well-defined hierarchy and well set rules and regulations (Bowyer & Martinell, 2004). There is therefore a need for the management to review the structure of the organization of its staff in order to eliminate the unnecessary bureaucracies and inefficiencies. If the structure is organized the restaurant will definitely be in a better position to compete with its rivals and probably outdo them. The resources used by the hotel especially in the kitchen highly disadvantage them and make them to incur unnecessary expenses.
There is no need to import ingredients from other countries at a higher cost when the same ingredients can be found locally at a lower cost. Furthermore, most of these resources, which are imported, are not environmental friendly and can make the company to be penalized for polluting the environment further increasing the expenses. Successful businesses usually utilize the local resources exhaustively before embarking on importation (Mathur, 2010).
The Bampton Manor Hotel has a great potential and it is capable of growing to be a Michelin Star in the industry. The macro environment is generally conducive and the business just needs to align itself so that it can gain the maximum benefits possible at minimum cost. The rival companies are not a big threat and they can be outdone if the recommendations suggested are put into place References Abraham, S. C. (2012).
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