Barns Hotel Strategic Marketing Planning - Book Report/Review Example

?Executive summary The report has been designed to offer Barns Hotel a strategic plan about how they can effectively operate in during the period of the 2012 Olympics games in Bedfordshire. Barns Hotel mainly offers accommodation services as well as other products such as food and wine. The main objectives of the report included the following: To suggest strategies that can be put in place to cope with the growing demand of accommodation during the Olympic Games, to advise the management about the measures they can put in place to gain a greater market share from the event and to establish negative aspects that are likely to impact on the organisation during the Olympic Games. The major findings revealed that though Barns Hotel has sound operational policies in place, its capacity may not be able to cope with the demand for products and services that is likely to result from this event. The findings also revealed that the hotel industry is characterised by stiff competition. As such, the following recommendations have been suggested for the organisation during the period of the Olympic Games: Increase operational capital as well as inventory so as to be better positioned to meet the quantity of food and beverages demanded by customers since the number of people who are likely to visit the place will be huge. The hotel should beef up the number of employees especially in the catering department during this period. It is also recommended that the organisation should attempt to satisfy different tastes of people from different places during the period of the games so as to the able to attract many customers. Table of contents 1.0 Introduction 3 2.0 Background of the organisation 4 2.1 Objectives of the report 4 3.0 Findings from PESTEL analysis of Barns Hotel 5 3.1 Political 5 3.2 Economic 6 3.3 Sociological 6 3.4 Technological 7 3.5 Environmental 7 3.6 Legal 8 3.7 Summary of findings from PESTEL analysis 8 4.0 findings from Porter’s five forces model 8 4.1 Entry of competitors 9 4.2 Threat of substitute 9 4.3 Bargaining powers of buyers 10 4.4 Bargaining powers of suppliers 10 4,5 Rivalry among existing players 10 4.6 Summary of findings from Porter’s five forces model 11 5.0 SWOT analysis 11 6.0 Operations 12 7.0 Human resources 13 8.0 Recommendations 13 9.0 Conclusion 14 References 16 1.0 Introduction In most cases, the environment in which the organisations operate is characterised by various external factors and these have a bearing on the overall performance of the organisation. Lancaster & Reynolds (1999) suggest that marketing audit and environmental scanning are important aspects in business that need to be continuously carried out so as to enable an organisation to be better positioned to keep pace with the changes that may take place in that environment. Analysing the internal environment of the organisation is also important to ensure the viability of the organisation. Some changes in the environment like hosting of big sporting events are not permanent but effective organisations can capitalise on them to get a good market share. For instance, Bedfordshire has been presented with a lucrative opportunity to host the 2012 Olympic Games. Indeed, this is an international event that is likely to result in a boom of business across different sectors of the economy in the host country. Against this background, this report seeks to critically evaluate the impact that the 2012 Olympic Games could have on Barns Hotel in Bedfordshire and what the organisation will need to do in preparation for the Games. The report will seek to focus on three business elements namely: business environment, human resources and operations. The analysis of the business environment will be done using PESTEL analysis, Porter’s Five Forces model as well as Swot analysis. The report starts by outlining the background of the organisation in order to get a clear understanding of the nature the business is involved in. This is followed by an explanation of the broad objectives of the report and an analysis of the three above mentioned business elements in the operations of the organisation. Recommendations about the measures that can be put in place in order for the hotel to capitalise on this opportunity will be given at the end of the analysis and a conclusion to sum up the main points discussed. 2.0 Background of the organisation The Barns Hotel is involved in tourism and leisure business where it mainly focuses on offering accommodation services as well as food and wine. “It is situated in a beautiful riverside location, within 3.5 acres of landscaped gardens, yet just 10 miles (16 km) from the M1 and 8 miles (13 km) from A1. The hotel is located in a beautiful place which offers views of the great River Ouse and the local country park and wonderful grounds in which to stroll and relax.” Details about this background information can be viewed from the hotel’s official website at . This is a four star hotel and it also offers the guests access to the local Oasis Fitness and Leisure Club and a range of other quality services such as free Wi-Fi as well as room services for food and other beverages. The hotel has 49 rooms ranging from standard twin and doubles, to suites and executive rooms. The hotel also has the Anglers Restaurant offers delicious food with excellent wine which makes it an ideal place to relax and enjoy the refreshing environment. The hotel has a friendly staff complement of about 50 workers in different departments. 2.1 Objectives of the report The opportunity to host Olympic Games in Bedfordshire has immense benefits to different business organisations if the opportunity is carefully harnessed. The demand for accommodation in particular is likely to increase hence this report seeks to fulfil the following objectives: To suggest strategies that can be put in place to cope with the growing demand of accommodation during the Olympic Games. To advise the management about the measures they can put in place to gain a greater market share from the event. To establish negative aspects that are likely to impact on the organisation during the Olympic Games. 3.0 Findings from PESTEL analysis of Barns Hotel PESTEL is an acronym for political, economic, social, technological, environmental as well as legal factors and these affect the operations of any business (Lancaster & Reynolds 1999). In as far as the operation of business is concerned, it can be noted that there are various factors that affect the viability of the organisation and the management have to take these into consideration in order to ensure the viability of the organisation. A brief explanation of some of these factors is going to be explained below. 3.1 Political There are various political factors that affect the operations of business in the UK and Europe. Antitrust laws in UK prohibit the emergence of monopolies and it can be seen that the hotel industry in Bedfordshire in particular is characterized by many players. Barns Hotel is ranked number one in Bedford and this can be attributed to its compliance with the rules and regulation put in place by the government. According to its official website, the organisation is committed to be the preferred destination in Bedfordshire through offering quality services to the consumers. The political environment in UK is flexible and this is an advantage to Barns Hotel to streamline its activities in order to gain a competitive advantage in its operations. The government has a responsibility to determine the laws that govern the operations of all organisations and it can be noted that Barns in particular is guided by this framework which is a positive advantage to the organisation. 3.2 Economic Barns Hotel is rated as one of the best performing hotels in Bedfordshire and its rates for accommodation range from ?50. According to its official website, the hotel’s economic performance is not that bad given that it has a competitive advantage of attracting many customers as a result of the high quality services offered. The economy of UK is also stable which enables the hotel to enjoy economies of scale from its operations given that information accessed from its website shows that the organisation has a strong economic background. 3.3 Sociological Sociological factors in UK play a pivotal role in the operations of many organisations. UK is a multicultural nation given that there has been a dramatic increase in the numbers of immigrants from various regions. However, it seems that the hotel mainly targets the affluent Britons and the services are specifically designed to satisfy their tastes. However, with the coming of Olympic Games to Bedfordshire, the hotel is likely to encounter difficulties in coping with the different tastes of people from various social backgrounds. According to information obtained from , the hotel offers delicious food but this food does not however include other dishes other than the favourite English dishes. 3.4 Technological factors The internet has revolutionised the way organisations conduct their business and it can be noted that Barns Hotel has managed to effectively harness the use of this technology. Bookings can be done online and the customers can enjoy free Wi-Fi services at the hotel. The hotel also uses a specially designed to market the services and products offered by the organisation. This also enables the hotel to communicate with different customers regardless of their geographical location which is an added advantage to the organisation. 3.5 Environmental Concern for the environment has gained significant consideration in the UK and every organisation is expected to implement policies that are meant to ensure that they adopt green practices as a way of safeguarding the interests of the environment. According to the Oxford University Press (2007), there are regulations in UK that are meant to ensure that the organisations limit their greenhouse gas emissions as a way of protecting the interests of the environment. In as far as the operations of Barns hotel are concerned, it can be seen that the organisation does not engage in activities that are harmful to the environment which also gives it a good reputation. 3.6 Legal The Oxford University Press (2007) suggests that there are many laws that affect the operations of the organisations such as competition, employment as well as consumer laws that guide the operations of different organisation in the country. A closer analysis of operations of the above mentioned hotel shows that it operates within the stipulated legal framework in the UK which enables it to operate viably. 3.7 Summary of findings from PESTEL analysis of Barns Hotel A closer analysis of the environment in which Barns Hotel operates shows that the organisation has sound policies that are meant to ensure compliance with various regulations and other factors that exist within the environment. However, of notable concern is that the products and services offered by the hotel are specifically designed to satisfy the tastes of the affluent citizens in UK. The organisation does not have sound policies to cater for the different tastes of the other social groups and there is need for this aspect to be taken into consideration in preparation for the upcoming Olympic Games. 4.0 Findings from analysis of Porter’s five forces model According to McCarthy & Perreault (1996), there are five forces that are used to determine the competitiveness of any given business. The market for any business is shaped by the structure of competition that exists in the environment and strategies ought to be shaped by the actual conditions obtaining on the ground. This section is going to analyse how Barns Hotel can utilise this strategy to prepare for the forthcoming Olympic Games to be held in Bedfordshire. 4.1 Entry of competitors Whilst there is no monopoly in the UK hotel industry, it can be noted that there are still chances for other entrants to penetrate the industry. From the look of things, it can be noted that the hotel industry has reached a mature stage but still new entrants can penetrate the industry depending with the strategies they implement. There is need for Barns Hotel to constantly monitor all the events happening in the environment so that it can keep pace with the changes taking place in the environment. 4.2 Threat of substitute According to information obtained from the following website, http://www.booking.com/hotel/gb/bookingsthebarnshotel.html?aid=306395;label=bedford-SL2jqszKjB9beaJGRygLfQS5194622909;sid=271b67041acafc40301f02f963906f43, it can be noted that there are many actors in this industry which also offer the same products and services. There are 48 hotels in Bedfordshire and there are also numerous restaurants in the area such that consumers can easily switch to another place should they wish. This is a threat to Barns Hotel hence there is need to constantly develop the products and services offered in order to maintain a competitive advantage. 4.3 Bargaining powers of buyers Consumer spending depends on the prices charged by the service providers as well as their spending capacity. This is also determined by the level of disposable income they have and in this particular case, demand for hotel services is likely to increase which entails that prices are likely to increase. If the buyers have the capacity to spend more as a result of rising demand, there will be need for Barns Hotel to adjust the prices accordingly so as to gain a big market share from the occasion of the Olympic Games that will be held in Bedfordshire in UK. 4.4 Bargaining powers of suppliers Suppliers in the hotel industry are also likely to increase the prices of their products if there has been an unprecedented increase in the demand. This entails that Barns Hotel should adjust the price accordingly so as to be able to remain profitable from the sales. The hosting of the Olympics games is a big occasion that is likely to trigger immense business from different quarters of the economy hence the above mentioned hotel should put measures in place to ensure that it is prepared to match the changes that are likely to take place during this period. 4.5 Rivalry among existing players As noted above, the competition in the hotel industry is very stiff in Bedfordshire. There are 48 hotels in this region and they charge prices that range from around ?50. Other players utilize the strategy of price discrimination as a way of trying to capture the attention of many customers. According to Kotler & Armstrong (2004), price discrimination is a strategy that can be employed by an organisation to lower prices for certain products and services so as to attract a big number of customers. Competition is always a challenge to different organisations operating in a particular market. 4.6 Summary of findings from analysis of Porters five forces model The main challenge facing Barns Hotel is that competition is intense in the environment in which it operates and new entrants can penetrate the market should they wish. It can be seen that there is need for the organisation to monitor the actual situation obtaining on the ground and design strategies that will enable the organisation to gain a competitive advantage regardless of the fact that there are a number of players in the industry. However, the hotel is performing well but there is need for research to suggest strategies that can enable it to cope with the demand of services likely to be caused by the occasion of the Olympic Games. 5.0 AWOT analysis A SWOT analysis is a business tool that is used to explain the relationship between the internal and external environmental factors that affect the operations of the organisation (Robinson, 1997). SWOT stands for strengths, weaknesses and these represent the internal environment of the firm while opportunities and threats are external environmental factors. In order for the organisation to gain a competitive advantage, it must take into consideration its resources to utilise the existing strengths and opportunities for the growth of business while minimising the impacts of weaknesses and threats. A table below shows the summary of these internal and external factors that impact on the operations of Barns Hotel. Table 1 Strengths -Barns Hotel has a good reputation of offering quality and valuable services to the customers. -it has well trained employees. -The company has a strong financial background. Weaknesses -lack of strategy to fulfill different tastes of the customers. Opportunities -The organisation has better chances of attracting more customers through the use of social networks such as twitter and face book. Threats -the main threat facing this organisation is that of competition in the industry. 6.0 Operations Basically, operations management is concerned with the management of direct resources necessary to create the product and services supplied by business (Adendorff & de Wit, 2005). Barns Hotel offers services in the form of accommodation as well as products in the form of food and beverages. At the moment, the operations of the organisation are primarily meant to fulfill the needs of the expected capacity of the number of the guests that can be hosted at a particular time by the hotel. Given that the Olympic Games will be hosted in Bedfordshire, the above mentioned hotel must adopt the following objectives in its operations management since there are likely chances that there will be an increase in demand. These objectives should deal with: Product or services characteristics as well as quality Efficiency through good employee relations as well control over raw material costs. Customer service through producing correct quantities to meet demand as well as timely delivery of orders. Adaptability to ensure future survival. During the period of the Olympic Games, the above mentioned hotel should strive to revise its operations management so that it can keep pace with the demand that will be experienced during that time. 7.0 Human resources The viability of any given organisation is determined by the human resources (Kleynhans, 2007). However, according to the findings in this section which were obtained from the organisation’s official website, it has been noted that many customers are satisfied with the level of services offered to them by the staff of the hotel. In as far as customer satisfaction is concerned, it can be noted that the hotel has well trained employees who know how to deal with the people in the hospitality industry. 8.0 Recommendations This report sought to fulfill the following objectives: To suggest strategies that can be put in place to cope with the growing demand of accommodation during the Olympic Games. To advise the management about the measures they can put in place to gain a greater market share from the event. To establish negative aspects that are likely to impact on the organisation during the Olympic Games. From the discussion of the findings above, it has been noted that Barns hotel has sound operational strategies in place but with the present capacity, it may face challenges in coping with the growing demand that is likely to be caused by the Olympic Games to be hosted in Bedfordshire. It has been recommended that barns should: Increase capital as well as inventory so as to be better positioned to meet the quantity of food and beverages demanded by customers since the number of people who are likely to visit the place will be great. An increase in operational capital as well as inventory is advantageous in that the hotel will be able to satisfy the needs of all people regardless of the number. The materials left after the games can still be carried over for usual business. The hotel should beef up its number of employees especially in the catering department. This will enable the organisation to keep pace with the demand of food as well as other beverages and the employees will be able to service them. It is also recommended that the organisation should attempt to add to its menu some common dishes for other people from different places during the period of the game so as to the able to attract many customers. 9.0 Conclusion Over and above, it can be noted that organisations operate in different environments that are characterized by different factors and different business elements help organisations to keep pace with the changes obtaining in the environment. The report sought to evaluate that factors that can impact on Barns Hotel during the period of the Olympics games in 2012 in Bedfordshire. The main objectives of the report included the following: To suggest strategies that can be put in place to cope with the growing demand of accommodation during the Olympic Games, to advise the management about the measures they can put in place to gain a greater market share from the event and to establish negative aspects that are likely to impact on the organisation during the Olympic Games. It has been recommended that the hotel should beef up the number of the employees in order to be able to serve all the customers since demand is likely to be high. It has also been recommended that the organisation should increase its inventory and it should also offer varied dishes to meet the tastes of the customers from different cultural backgrounds as well as to increase price in accordance to demand. References Adendorff, SA & de Wit, PWC 2005, Production and operations management, 2nd Edition, Oxford University Press, CT. The Barns Hotel, viewed 21 April, 2011, http://www.booking.com/hotel/gb/bookingsthebarnshotel.html?aid=306395;label=bedford-SL2jqszKjB9beaJGRygLfQS5194622909;sid=271b67041acafc40301f02f963906f43 >. Barns Hotel, Official website, viewed 21 April, 2011, . Kotler, P & Armstrong G 2004, Principles of Marketing, Pearson Education, Upper Saddle River: NJ. Kotler, P 1999, Kotler on Marketing: How to create, win and dominate Markets, Free Press, London. Kotler, P 1998, Marketing Management: Analysis, Planning, Implementation and control. Prentice Hall, New Jersey. Lancaster, G & Reynolds, P 1999, Introduction to Marketing: A step by step Guide to all the tools of Marketing, Kogan Page, London McCarthy, JE & Perreault, W D 1996, Basic Marketing: A Global Managerial Approach, 12th Edition, Irwin McGraw-Hill, NY. Oxford University Press, 2008, PESTEL analysis of the macro-environment, viewed 21 April,2011,. Porter’s five forces model ND, viewed 21 April, 2011, . 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