Organisational Knowledge, Creativity, and Innovation - Case Study Example

Organization Knowledge By: [Name] [Course] [Tutor] [City] [Date] Organization Knowledge Background The Luxe Manor hotel operates in the hospitality industry in Hong Kong. It can successfully manage to use disruptive innovation in the process of expanding its operations into the new Asian market. Disruptive innovation is important in the process of developing new value network and market by disrupting the existing market (Assink, 2006). The management of the Luxe Manor through the use of the disruptive innovation can formulate strategies that can be crucial in achieving competitive advantages in the market. Luxe Manor will be established with space which will accommodate around 86 seats hence it will be able to provide both food and services for the different family styles. The site of the organization was previously leased in form of the Italian restaurant. Even though the site was initially used as a restaurant, the tenant who had previous occupied the site removed a large number of the furniture, fixtures and also other equipment, therefore the Luxe Manor will be required to replace them. Also, the restaurant will be required to do renovation on the site in order to improve the conditions of the lavatories and still increase the table space (Kerzner, 2010). Moreover, the décor of the restaurant will be characterized by the wood accented chairs which will be having blue color with table cloths which have white checks. Company Summary The Luxe Manor Company will be very competitive because of its influence on the Asian market and its disruptive innovation approach. It will be in a position to offer products that are competitive in the hospitality industry. Moreover, its menu comprises of various meals to meet the needs of the diverse customers thus the restaurant is quite appealing to many clients (Caldwell, et al, 2012). In addition, the restaurant will be providing accommodation services, lunch and dinner on top of its regular menu. The company will be operating throughout the week from Monday to Friday, the lunch dishes will be served as from 11:30 AM up to 2:30 PM. On Saturdays and Sundays, dinner services will be provided to the customers as from 5 PM up to 11 PM. However, during some special days such as the Thanksgiving Day, Christmas day and also the New Year day the company will be closed but the company will be operating during large holidays. These holidays are usually the biggest weekends which brings a large number of the tourist in the area. The Luxe Manor restaurant will be decorated using paintings as well as drawings in various areas by the famous artists, where in monthly basis the company will be having new artists to do the painting and also drawings. Importantly, the paintings and drawings in the restaurant will actually provide a good opportunity for the art community to show out their artwork (Chan and Guillet, 2011). As a result of these decorations of the restaurant, the company will be able to attract a large number of people during the opening night. In addition, every night in all Mondays the company will be holding a restaurant night in order to create an opportunity for the owners of other restaurants together with their employees to socialize on various aspects thus bringing about a sense of unity in the restaurant industry (Del, Fernandez and Junquera, 2007). Luxe Manor will be holding some special evenings for wine tasting by the customers and also a five-course meal which will be actually sponsored by the distributors of the wine. During these special evenings, clients will be invited to the restaurant to learn more concerning the foods and also wines which are provided by the Luxe Manor Company (Job and Bhattacharyya, 2007). However, there are still other special evenings in this restaurant such as during the Easter dinner, Christmas dinners and also during the July celebrations. Therefore, Luxe Manor will actually be an ideal place in which customers will be able to conduct their business meetings inside the restaurant since it has got enough space. Also, the restaurant is a perfect place where clients can hold a quite conversation during their special occasions (Trent and Monczka, 2005). In addition, during special occasions, the company usually provides full course meals for the clients. Company Ownership The Luxe Manor Company will be started as a corporate whose founders will be both Mrs. Anderson and Peter. Anderson will be performing the duties of a general manager while peter will be serving as the managing partner. The founders of the Luxe Manar Company who are Anderson and her partner Peter will be in charge of the management duties and also supervise the company personnel. However, peter will be much focused on the issues related to finance. Start-up Summary The space of the restaurant will be approximately around 2,500 square. ft. Importantly, the owners of the company will commit their personal contribution of 60,000 dollars and also obtain 200,000 dollars from the loan guaranty and then seek the additional capital of 125,000 dollars from various investors in order to start the company now. Moreover, the total costs of starting up the Luxe Manor Company will approximately amount to 385,000 dollars, whereby this high costs will be greatly contributed to various things such as the painting, renovation, liquor license and also equipment among the others. However, all the above costs are actually the requirements which are necessary for the start-up of the company. Opportunities available Luxe Manor has some opportunities that it can utilize in the market to expand its operations successfully. For instance, Hong Kong is one of the countries in the world that have financial hubs with the international citizenry in which there is a strong community identity (Wong and Law, 2005). Besides, Hong Kong is usually a financial capital hence providing the Luxe Manor Company with a good opportunity to easily obtain capital for starting up its business. Luxe Manor will start the business easily as the regulatory environment in Hong Kong is very suitable for a business, therefore, the company has a great opportunity for expanding its business operations. As a result, the management of Luxe Manor will make use of the suitable business environment to ensure successful expansion of the operations. Also, there is a high number of wealthy residents in Hong Kong who can actually become potential customers for the Luxe Manor restaurant. However, the Luxe Manor will actually face the problem of small markets thus it will be forced to scale internationally. Another challenge will face the company is about looking for the employees who are talented as in Hong Kong there are a large number of individuals who are talented but they mostly prefer securing jobs in already established businesses. Product description The products of Luxe Manor are innovative in the market as the management will ensure the needs of the customers are aligned with the products offered. Some of the foods which will be provided by the company include roasted chicken, classic hamburgers, pot roast and salads where all the meals will be published in a menu list. Importantly, the restaurant will also be providing specialty selections such as the lighter options as well as smaller portions of foods for the children. The Luxe Manor will be providing quite unique services in the Hong Kong where the company will be providing creative foods which are international and also its service style will actually make every customer feel as if they are special in the restaurant. Moreover, the food products of this restaurant will be of high quality and also the foods will be prepared with a lot of care and sensitivity (Bennett and O'Kane, 2006). In addition, the Company will be changing its menu after every three months but still, it will be maintaining the favorite foods of customers at reasonable prices. Also, the portions of food that will be served to the clients will be of the modest size and therefore the restaurant will have an attractive presentation. On the side of wines, the company will be having a list of wines which are modest in size and mostly the restaurant will be dealing with wines which come from Argentina, New Zealand and also from California. In addition, the company will still be providing customers with international beers either on tap or even in bottles. Moreover, some of the international beers which the Luxe Manor restaurant will be offering to the clients include; the single malt scotches and also the finest Vodkas. Furthermore, during the summer days, clients will be allowed to sit on the outside of the restaurant and also a special menu will be provided during the summer months by the company. Furthermore, the kitchen staff who will be employed in the Luxe Manor restaurant will be having enough experience in the catering services (Chan and Wong, 2006). The restaurant staff will be providing high-quality services to the customers in the atmosphere which is comfortable; thus, making clients feel that the company is extraordinary. Pricing strategy The Luxe Manor restaurant anticipates the total allocation of sales to be 15 percent for the catering sales while for the restaurant sales to be 85%. Therefore, the combined cost of the both sales will be approximately 33% thus making a gross profit of almost 67 percent on the total sales. However, the prices of food in Luxe Manor will actually be competitive in the restaurant industries. Therefore, the pricing strategy which the company will employ in the provision of quality food services will ensure that the products are affordable (Lo, Stalcup and Lee, 2010). Besides, entertainment which is relatively high as compared to the other competitors in the hospitality industry, will be offered at low prices. Potential markets The major focus of Luxe Manor is the travellers. Travellers form an important source of potential consumers as Luxe Manor will be offering both food and accommodation services. The potential competitors in the market include the small restaurants offering both accommodation and food like travellers. However, through the use of the disruptive innovation approach the management of Luxe Manor will make sure that the services offered are unique and different from those of the competitors. The company will employ the use of technology with the aim of achieving efficiency that can make it possible to employ competitive pricing strategy. The adopters of the products and services are travellers. They will be able to access affordable and high-quality services in the organization. The second adopters of the services and products are the corporate business people who will be organizing meetings. Luxe Manor has enough space for holding meeting and rooms for accommodating people attending the meetings. The market size of Luxe Manor is large due to its ability to offer products and services that are of high quality. Competitive advantage The Luxe Manor has competitive competitors through adopting the disruptive innovation approach. The products of Luxe Manor differs from those of the competitors due to its innovative features that are aligned with the needs and preferences of the customers in the market (Salam, 2005). The management of the Luxe Manor is committed to make sure that its products are competitive in the market through developing products that are in a position to fill the market gap. In the process of developing products that are in a position to meet the needs of the customers, Luxe Manor engages the consumers in the product development. This ensures that the products have the necessary features that can meet the needs of the consumers (Wong and Ladkin, 2008). Besides, the management of Luxe Manor will invest in research to keep pace with the industry trend and assess the best strategies of making the organization competitive (Zhang and Chow, 2004). It is through the research that Luxe Manor can develop products that are rare and unique in the industry. Through the use of technological advancements, the management of Luxe Manor will ensure that it is innovative in the way it delivers its services and products to the customers (Yu and Hang, 2010). For instance, Luxe Manor provides an atmosphere to the customers that help in enhancing the service experience. Besides, Luxe Manor has friendly and enthusiastic staff who play a crucial role in the process of making the company different from the competitors through offering high-quality services. The management will ensure that the employees are constantly trained with the aim of improving their skills and expertise in service delivery with the aim of enhancing the level of quality. It is through training that the employees can be equipped with the most recent expertise that is needed in improving the quality of the products hence making them different from those of the rivals (Christensen, et al, 2006). The products will also be made unique through using ingredients that are purely natural and fresh. The management will make sure that the products are focused on enhancing the health of the consumers through considering the health concerns of the targeted customers. The innovative designing and presentation of the products will play a crucial role in the process differentiating the company products (Schmidt and Druehl, 2008). Management summary The management of Luxe Manor has the necessary knowledge that can ensure the competitiveness of its services and products. The team responsible for managing the operations of the company is creative and innovative to ensure the services and products offered are of high quality and unique in the industry (Christensen, Horn and Johnson, 2008). The employees will be equipped with the necessary skills that will make the company competitive in the market. However, the initial management will be greatly depending on the founders of the Luxe Manor Company but as the company continues to grow, the restaurant will take some additional assistance in particular areas in the company which are significant. The Luxe Manor Company will emerge as a creative idea of the founders since the company requires an organizational structure which is simple. Moreover, the founders of the company will still be in charge of the management decisions on top of monitoring all its business activities. However, as the company will continue expanding, each location of the organization will be having its site manager. Organizational Structure The organizational structure of the Luxe Manor Company will comprise of the company operation director who will be responsible for ensuring the competitiveness of the company. The director will ensure that the company is innovative in the way it offers its services and products to the customers (Tso and Law, 2005). In addition, the company will have an accounting and payroll functions which will be performed by the accountant. Moreover, there are still other positions in the company which will be added later on after the start-up such as the positions of marketing manager, human resources, controller and also the position of the purchasing manager among the others. Personnel Plan The initial employees in the Luxe Manor Company excluding the top management will comprise of the two cashiers, five chefs, ten waiters and two supervisors. Each employee will be supposed to work for a maximum of 40 hours on weekly basis. References Assink, M., 2006. Inhibitors of disruptive innovation capability: a conceptual model. European Journal of Innovation Management, 9(2), pp.215-233. Bennett, D. and O'Kane, J., 2006. Achieving business excellence through synchronous supply in the automotive sector. Benchmarking: An International Journal, 13(1/2), pp.12-22. 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