Le Centre Ocean Hotel Marketing Analysis - Case Study Example

Introduction This paper will look at critiquing the strategies which were implemented by the team by analyzing the strategies and tactics at the beginning and end of the simulation game. This will help to understand the strategies which were undertaken in the beginning and the manner in which different strategies provide good results or impacted the team in a negative manner. The report will thereby help to understand the entire performance from an individual perspective and will provide useful guidance regarding the effectiveness through which goals were achieved by the entire team. Strategy used by the team The firm strategic decision was to act as a differentiator where the firm looked to provide quality services at affordable rates. To act as a differentiator the firm had to looked at different development and training so that better and effective strategies could have been developed. The firm looked to adopt a differentiator strategy through refurbishment program (level 3) of twenty ocean theming guest rooms, installation of internet terminal in each guest room, training scheme and market promotion by setting up social media page, online advertising and products promotions, an extension of extra facilities including leisure center and hotel shop, updating level of guest comfort including concierge service, room/lounge service, complimentary items and in-room entertainment, development of restaurant, bar and front desk, guest room, car park extension and rising staff wage level and regular maintenance plan. This would have helped to provide better services and act as a differentiator through which overall business prospects would have multiplied. The strategies which were developed were good but were not implemented properly. The fact that training needs of the employees were not considered and the required funds were not allocated in the direction affected the quality of services (Finlay, 2000). In addition to it different players also looked to work on similar strategies and having an ineffective manpower backfired as the different strategies and tactics which were developed didn’t fetch the required results and impacted the overall strategy. This thereby had an impact on the long term strategy and the team on the whole was not able to use the resources in the best possible manner which would have provided the required return and would have increased the chances to be successful. Competitive Advantage Competitive advantage is a distinguishing feature which an organization has in comparison to other players and the differentiating factor helps to provide an opportunity where the business is able to perform better in comparison to other. The competitive advantage also acts as a critical success factor and determines the manner in which the long term productivity and growth of the organization will be determined. The process of competitive advantage was not reflected in the working of the firm as the firm looked to have a competitive advantage through a differentiation strategy. Since, the firm and the team didn’t allocate the required resources and funds which were required for the training of the employees the quality of service was impacted (Wohlgenant, 2005). This is in addition to the fact that the firm was not able to use the required resources and was not able to differentiate its services which further had an impact on the performance and didn’t provide the required opportunity to be able to stay ahead from other players and competitors in the market. Five Force Analysis The industry analysis is as The degree of competition is high as there are hotels which are working on a similar concept and look to provide similar services which has thereby provided more options and increases the overall risk for the business. There are many substitutes for hotels such as motel, backpack, hostel, camp site. Hotel has comprehensive facilities and services as advantages other than other types of accommodation. Le Centre Ocean Hotel offers various services and convenient amenities like 24 hours reception, concierge, room/lounge service, bar, restaurant, internet access, car park and hotel shop. Referring to threat of new entrants, entry barrier is quite high in hotel industry and the limited resources in the area so it does not impact the Hotel a lot. The main threat is from established competitors. Within the same area, the attractiveness of hotels is similar, which is ocean view. The key-differentiation is critical for a hotel so that tourists will not switch easily to other hotels. Le Centre Ocean Hotel’s concept is to build unique romance atmosphere for guest’s holiday so key differentiation and competition attractiveness from other competitors is special theming rooms and high quality service. Referring to bargaining power of suppliers, the local suppliers have strong bargaining power because there are only three suppliers in the area and what they are supplying are different from each other. To avoid switch cost and control of cost, the Hotel employs qualified and trained staff to choose reputable suppliers for the long term. There are seven hotels in the area so guests have strong bargaining power. The Hotel has adopted training strategy to improve staff’s service skills; maintenance and refurbishment plan to keep room in good conditions; pricing tactics to make guests feel worth between their overall spending and what they receive. The firm capabilities helped to act as a differentiator and develop strategies which looked to give them a competitive advantage. The impact of such a decision was largely reduced primarily due to the fact that the business was unable to allocate the required funds through which better control and training could have been provided (Frederick, 2004). The competitive forces thereby impacted the manner the hotel was working and didn’t provide the opportunity to take advantage of the external resources and develop a process through which better results can be achieved. Thus, the business was not very effective in using the different resources and as a result the external forces had an influence on the performance. Impact of Team Decision on Human Beings The impact of the team decision on different people was as follows Employees: The lack of decision to provide proper training to the employees impacted them adversely as the employees were unable to perform on the required standards. This resulted in affecting the motivation level of employees and the employees were not able to carry out the different roles and responsibilities in the most effective manner. This also impacted their pay and the employees were dissatisfied with the present working environment (Pick, Karrenbrock and Carman, 2000) Customers: The customers were not get the right services which they paid for as the lack of proper expertise and training was impacting the service level. This will lead towards dissatisfaction among the customers and will thereby prevent them from visiting the hotel again in the future Community: The community was being benefitted as the management was looking to improve the overall operations which would help better returns to the society. It would create an environment through which better growth of the community would become possible. Owner: The owners were not getting the adequate return on their investment due to some areas and factors which were not properly controlled. This had impacted the manner in which returns were provided to the owners and would impact their future business decisions as they are dissatisfied with the working on the firm (Johnson, Scholes and Wittington, 2005). Effectiveness of different plan The different plan which were implemented provide different effectiveness the details of which are as Operational Plan: The operational plan was not effective because the business was not able to work on the required areas it had identified. The lack of expertise and management of funds impacted the operational aspect of the business and created a path of hindrance due to which the level of service and desired results were not achieved (Brassington and Pettitt, 2001). Marketing Plan: The marketing plan was effective as use of different media and social platform helped to attract people. The marketing plan was well developed and looked to fulfil the different smaller aspect which helped them to create their brand name and attract people towards the hotel (Chrisan, 2001). Business Objectives: The achieved objectives were not as the intended objectives as the business was in effective in providing the required training which impacted the service quality. In addition to it the lack of expertise and ineffectiveness in dealing with the resources and managing it hampered the overall business prospects and impacted the business adversely thereby not helping them to achieve the desired objectives. Technical Analysis of Result The analysis of the result shows that the team was ineffective in planning and executing the results. The team had planned in a manner but were unable to execute the plans properly which thereby had an impact on the overall results. The team as a result was unable to utilize the different resources and lack of training was one of the biggest obstacles. This thereby had an impact on the bottom line and the overall performance as the team was not in a position where they could have controlled their different resources. The results also highlights the manner in which differences arises within planning and executing the results as slight lack of effectiveness can result in big losses and could make the entire strategy look incorrect. This was clearly as the execution was not proper which thereby made the results to appear to be incorrect and didn’t provide the desired objectives to be achieved, Decision Making The decision making process which was involved in the team was after consultation with each other. Every member was assigned some areas to work on based on the strength and interest of the person. Based on the different decisions which each member took based on their area of interest meetings were held and in consultation with the other members decisions regarding the future strategy was made (Awni, 2008). There was situation where different objectives looked feasible but the team after having a brain storming session and looking into the different aspect decided to choose one which seemed the best. The team was well organized and each member looked to carry out the different roles and responsibilities which were assigned to them. This helped the team to be effective and was able to control different situations in a better way. Even the differences which cropped among the team members were solved through mutual dialogue and the team looked to be united and worked towards a common purpose so that overall objectives of the business can be achieved. Recommendations for Improvement To improve the overall result and to gain effectiveness the change which the business will require is in the direction of executing the plans. The business needs to look towards having more funds allocated for purposes lie training. It is also important to have someone with the required expertise so that the different decisions which are taken are better and helps to reflect on the overall objectives. Improving in smaller areas will help to take care of the bigger goals and will provide a framework through which the business will be better coordinated and will be able to achieve the long term objectives. Conclusion The paper thereby presents the strategies which were implemented by the team by analyzing the strategies and tactics at the beginning and end of the simulation game. This will help to understand the strategies which were undertaken in the beginning and the manner in which different strategies provide good results or impacted the team in a negative manner. It also shows the area which needs to be improved and the manner in which future performance can be altered and changed so that better use of resources is seen and effectiveness is gained in the manner organizational decisions are taken. References Awni, R. (2008). Strategic position indicating. Translated by SeyedAmir Poya seyfzadeh, Management Selected Monthly, 78, 70. Brassington, J. and Pettitt, M. (2001). Principles of Marketing, 2nd Edition, Prentice Hall Chrisan, P. (2001). Marketing: A Behavioral Analysis, McGraw – Hill. New York Frederick V. (2004). Margins in Marketing. Journal of Farm Economics, 16 (2), 233-245 Finlay, P.N. (2000). Strategic Management: An Introduction to Business and Corporate Strategy. Financial Times: Prentice hall Johnson, T., Scholes, P. and Wittington, R. (2005). Exploring Corporate Strategy: Seventh Edition, Prentice Hall, Pg 319 Pick, D., Karrenbrock, J. and Carman, H. (2000). Price Asymmetry and Marketing Margin Behavior: An Example for California—Arizona Citrus. Agribusiness, 6 (1), 75-84. Wohlgenant, M. (2005). Competitive Storage, Rational Expectations, and Short- Run Food Price Determination.” American Journal of Agricultural Economics, 67 (4), 739-748. Read More