Managing a hotel property

 

 

 

1. Identification of the CASE Problem (2 paragraphs) 10 Points
a) Background information on the hotel property.
b) What do we know about this hotel property?
c) Location, size, service level, etc?
d) What is the main challenge and or issue in this case?
e) Why is this the main issue? What is the proof?
Where is the evidence?
f) Why is this a concern?
2. Situational Analysis (1 page maximum) 10 Points
In written report format, NOT point form.
a) Strengths – Internal Analysis
b) Weaknesses – Internal Analysis
c) Opportunities – External Analysis
d) Threats – External Analysis
3. Recommendations 50 Points
Based on your analysis provide a solution set for the problem.
Your solution set must be the employment of a quantitative model.
You must use MS Excel for your recommendation set.
Your solution set must embrace Revenue Management strategies.
Your solution set must demonstrate how the Case Problem can be solved.
Your solution set must provide recommendations for the future.
HINTS for this case:
1. You MUST use MS Excel or another electronic spreadsheet for this case study.

Sample Solution

Apart from the cost of capital and assets and liability composition, the size of the banking business is to be considered as a important determinant of the performance of the banks. The size of the banking business denotes the economies of scale .The bank with wide spread retail net work with branches in every nook and corner of the country denotes the large scale economy. But in such kind of the size of the bank the cost of maintaining many branches will be too high and this would definitely reduces the profitability of the banks. The banks in important cities perform better than the bank with too many branches. Income statement: The financial position is being revealed in the Balance Sheet. The method of operation can be clearly visualized in the income statement. The operating ratios would indicate the efficiency of management and the banks success for a particular period of time. By analyzing the income statement, one can assess the banks efficiency in controlling the costs and generating the income. Determinants based on income statements Control of costs The profitability of banking business can be increased by controlling the unnecessary costs. The closure of unprofitable branches or retail outlets would surely help in the reduction of costs. Timely collection of loan amount avoids the bad debts. Also the non-performance of certain assets would create maintenance costs upon which no revenue has been earned. Higher wages and salary will definitely increase the profits of the banks (Tunisia, Malaysia) Like the reduction of cost increases the profit, the increase of certain costs would definitely increase the profitability of the banking company. Payment of higher wages and salary to the employees would boost the moral of the employees and would be a great motivating factor for them. Their performance may be in high quality in the sense they can give better service to the customer with smile on their faces and the work may be finished in less than the standard time allotted. Lower payment of interest on deposits and higher revenue from loans – this wide disparity may lead to higher profitability of the banks. There exists wide disparity of interest earned and interest paid. The difference between the two is the profit for the banks. For deposits less interest is paid whereas the interest that is paid for loans and advances is too hi