Sinotel hotel SWOT Analysis
Sinotel hotel
Table of Content
1.0 Introduction……………………………………………………………………
2.0 Overview of Business Plan for year 4…………………………..
2.1 Year four analysis (SWOT)………………………………………
2.1.1 Current strength and Weaknesses of the Hotel………….
2.1.2Ccurrent opportunities and Threats in the market…………..
2.2 Objectives………………………………………………………….
2.3. Strategies……………………………………………………………
2.3.1 Corporate market………………………………………….
2.3.2 Leisure market………………………………………
2.3.3 Other market Segments (Conference market)…………..
2.3.4 Food and Beverage ………………………………….
2.3.5 Service Quality………………………………………….
2.3.6 Staffing……………………………………………….
3.0 Financial targets…………………………………………………………..
4.0 References………………………………………………………………
1.0 Introduction
The purpose of this report is to analyze the business plan and the current environment, and develop strategies that would improve the performance of the business based on the previous years. It also seeks to assess the industrial current environment it terms of its strength, weakness, opportunities, and the possible threats that the industry might be facing currently.
2.0 Business Plan for Year 4
2.1 SWOT Analysis
2.1.1 Current strength and Weaknesses of the Hotel
The Sinotel organization’s strengths are based on its ability to increase it revenues by the increasing number of customers every year. Sinotel expansive management that entailed building of more entertainment equipment and facilities expanded the number of customers hence making more revenues. It also has the advantage of convenient transportation system which is near the shopping mall, and also just 30 minutes away from the airport. In addition, there are well-constructed roads, rails and multiple bus transits linking to major cities, tourist attractions and other resorts. Moreover, the positioning of the hotel is to serve with a high standard level service quality and create a long term consumer relationship to achieve repeat business and to differentiate its products based on exceptional service quality, on-time delivery, customization to customer needs to gain a sustainable competitive advantage. The other strength of the organization, which has become another key focus, is to keep employees happy, as contented staff will in turn make them more loyal to the organization, reflecting a higher level of customer service.
One of the weaknesses of Sinotel management is that it still keeps using the old training system and not speeding more money on training. However, likely is that to compare with year1 the human resource can find the mistake quickly and on time.
2.1.2Ccurrent opportunities and Threats in the market
The strength and improvement of every management is based on its ability to take any opportunity that comes it way. Sinotel’s opportunities in this industry are rare but very important for the company. One of the instances of such opportunities comes during the peak duration (months) when the company’s revenues increases by great margins. The company expands it building capacity as stated in the strategies of year three and takes advantage of the make helps the hotel to increase its profit margin. As per the figures shown in the section below, the hotels entire trend of revenues and net income is indicated as upwardly growing figures. This makes the shareholders to consider enhancing the star rate of the hotel out of the year 4 performances and outcomes.
Despite these advancements, the hotel also faces some threats in the industry, whereby there are also some various hotels which are likely to take counter competitive ensures, especially during and after the hotel has registered high returns. The changing durations, the off-peaks particularly lowers the average revenues since during these periods, the bookings are registered low. Finally, the hotel has so far not taken any advantage of technological advancement in their management and marketing strategies. Any hotel that uses these strategies may find it very easy to snatch the loyal and new customers of the hotel.
2.2 Objectives
Based on the strategies of the third year which included the following, the hotel aims at achieving the higher focus which had been strategized in year three;
Use the effective market strategies and through all the marketing advises to raise the room department revenue from $ 1,470,814to $ 5,429,375at the end of year4.
Meet the customer’s need and create a good reputation in order to increase the food and beverage department revenue from $ 3,826,086to $ 4,600,000at the end of year4.
Increase the net income to $ 4,000,000 at the end of Year4.
Closely monitor and measure stuff turnover to keep it under 20%.
Raise the overall average room occupancy rate from 74% to 85% by the end of year4.
2.3. Strategies
The strategies of year 4 are prepared based on the third year’s performance. The third year was marked with great progress as the hotel’s management had increased focuses on the increases of the occupancy rooms from 30% to 50%. The hotel however passed the margin by increasing the occupancy at 70%, a 20% more than the projected goal for the third year. In the fourth year therefore the management still strategizes on increasing the scopes of opportunities like investing heavily on marketing. In this case, the management of the hotel proposes certain changes to the some advertising modes particularly increasing on the number of channels that the hotel uses to advertise, especially during peak periods.
The hotel had captures its share of the Hots industry and the growth in the room rate is a handsome catch for the hotel. The management seeks to introduce strategic measures, like more building, to maintain the growth rate to higher values that can generate more revenues.
More promotional methods like provision of discounts and even better discounts for early bookings for weekly rooms are to be established by the management. More than that, the fourth year is a year of technological introduction to various modes of marketing thee hotel’s products and management. This is aimed at improving efficiency in management operations and hence serving the customers better to increase revenues.
2.3.1 Corporate market
The marketing strategies of very organization in a competitive market are affected by the product it is selling in the market, promotional and sales methods that it adopts to reach the targeted customers, pricing strategies and the distributor channels that the organization view relevant for the market product.
2.3.2 Leisure market
To keep customers’ loyalty in terms of the e good services offered in the hotel, Sinotel continues to provide comfortable, convenience, easy, luxury environment to customers all the way to the end, that’s why the management aims at increasing their buildings for these purpose. Because of the high demand of leisure, the hotel forecast high room revenue over the year than the other years.
3.3 Other market Segments (Conference market)
As far as refurbishment in Year4 is concerned, conferences room is to be refurbished in level 3 and keep rooms in the standard level for doing level 2 twice in a year as well as others.
2.3.4 Food and Beverage
2.3.5 Service Quality
Quality services marks the priority of the management in order to keep and attract new customers. The management seeks to maintain good quality and increase the services that correspond to expenses that the hotel and the customers use.
2.3.6 Staffing
The staffing has been strategized to increase in year three to 64. With the provision of concierge and lounge service for as well, the staffing is expected to increase to 80 in year four. The best part of this strategy is that staff training is also expected to continue especially in this stage and expenditure increased to motivate the staff.
3.0 Financial targets
Year 3 Average /Totals Year 4 Forecasts
Average room’s occupancy 77.4 % 85 %
Average daily Rate $211.27 $ 350
Total room revenue $ 1,470,814 $ 5,429,375
Total food & Bev revenue $ 3,826,086 $ 4,600,000
Total Expenses $11,227,046 $ 13,400,000
Total Revenue $14,026,526 $17,144,000
Total income before tax $2,799,480 $ 4,000,000
