Sleepy Inn Motel is a 60-room motel located at the edge of a small town in a rapidly expanding resort area and only one-half mile off an interstate highway. It is 10 miles from the tourist area with several competitors. The owner, Eng Huang, is faced with a decreasing occupancy…
area; (2) no advertisement; (3) no recreational facilities; and (4) does not scan his environment to adapt and adjust to the demands of the target market.
The objective of Mr. Huang is to increase occupancy rate, increase productivity and still maintain some independence. To achieve this, after identifying the root causes of the decrease in occupancy, Mr. Huang can address the problem by targeting the root causes, to wit:
The location of Sleepy Inn Motel is just near the interstate highway with only two large promotional signs provided by the Tourist Bureau. In this regard, Mr. Huang must strategically place promotional signs indicating his best features and amenities (low price, clean, with new recreational facilities). Since the survey indicated that 78% of the visitors consider recreational facilities as important in their choice of accommodations, Mr. Huang must invest in providing recreation for visitors. He can survey cost effective sources of recreation which can increase revenues and not substantially increase expenses associated with maintenance of the recreational facilities. Scanning the environment requires taking into account the marketing strategies employed by his competitors within the area. He can offer the best price but without the needed amenities required by the visitors, he cannot compete. Actively promoting his service through local print and billboards will assist in making visitors aware of his location and what he is offering. In doing so, he can also adjust his price per day to a more competitive price to support the improvements he should do.
By affiliating with either of the Daily Inn or Holiday Inn, Mr. Huang would definitely increase both occupancy rate and productivity but would not maintain independence. His operations would somehow be dictated by the terms that would be stipulated by the national motels. After evaluating the facts, Mr. Huang would be better off affiliating with Daily Inn because of the following factors: no ...
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“Sleepy in Motel Case Study Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.net/miscellaneous/395362-sleepy-in-motel.
To give out advice to Jack concerning the best way of determining the decisions for his business.
To identify the decision options that are available for Sleep Inn Motel.
Sleep-Inn is a motel business that is located towards the edge of an extremely small town next to a resort centre that is rapidly expanding.
In the first part, the study has conducted a literature review in order to understand importance of various theoretical concepts of OD. On the basis of theoretical argument presented in the literature review, the study has identified internal and external issues which can force an organization to seek for OD intervention.
There are many factors as to why it would not make sense to continue to operate Sleepy Inn Motel, including cost of promotion, the highly saturated market by large, well-known competition, and his inability to keep capacity to industry norms. Sleepy Inn Motel is currently in a small town, thus there is not a great deal of local demographics through which to target with promotional materials.
For example breakfast is one thing that all kinds of guest would want. No one wants to wake up, get dressed, and then go to another place to have breakfast. Sleepy Inn Motel is now offering breakfast but it is being offered in a room next to the registration desk.
If the Sleepy Inn could manage to maintain 90% occupancy at the rate of $75 per night, they would make roughly $4,050 per day. If about half of that were put towards paying off the loan on a $300,000 inground pool to be installed ($2000 per day, or $60,000 per month)—Huang could pay off the pool in 150 days or less, depending upon occupancy rates.
the impression of timelessness as he talks about “air, musty from having been long enclosed, hung in all the rooms, and the waste room behind the kitchen was littered with old useless papers.” The story is told from a period of time that is based in the “short days of
US were defined by the abominable policy of segregation, a dubious and heinous system that validated the separation of the White and Black Americans in the public sphere. Civil Rights Act of 1964 prohibited any sort of discrimination in public accommodations like hotels and
Cahoon’s low 55 percent is translating loss for the motel as Cahoon is already selling his rooms at the lowest prices. This means that Cahoon is attempting to generate profit by increasing the sale of his rooms but decreasing the price is not translating as increased sales.
his case, Jon wants his terms to be prioritized by the hotel despite Julia being very considerate in terms of offering conferencing services and equipment. Jon wants to keep the services of the contractor, Monte Sereno, for the reasons of negotiating conventions with Julia. If