EXECUTIVE SUMMARY
This report provides an analysis
and evaluation of the current relationship between internal and external environment.
Analysis on SWOT, PESLT, done in order to have a complete picture about the
hotel. Following been identified.
Ø Since
it is the best city hotel for the last two years, and it is under the ownership
of the no 01 company in srilanka. And it’s in a very good financial position Company
has very good further ahead. Since it has a very good controlling system,
visionary leader as their general manager, and very strong middle management
team without a argue company will be the no 01 city hotel for third consecutive
year. And the present economic and political favorable situation in
the country is a boost to the hotel in order to achieve the current objectives.
Ø Company
has a problem in retaining the experience staff who leaving out to competitor
hotels and retaining the staff who retiring in the near future and recruiting
new staff with passion. And there no unity among the top management and it lead
to down fall of the hotel. And the present social and ethical environment in
does not help to develop the hotel sector. There is restriction on internet
facility, so staff not that much knowledgeable regards to their subjects.
Ø Hotel
is gifted with a wonderful environment, Beira lake is and a very good assets to
the hotel, if the company and invest on transporting guest by sea plain it will
create new markets and by that hotel can increase the revenues. And also if the
hotel can capture the young market by investing on a new night club it will also
generate revenues. And also management must seek on new way of capturing the
Indian and Chinese markets.
Table of Content Page
no
1 Introduction…………………………................................................... 04
2 Company Introductions………………………………………………... 04
3 Environmental scanning……………………………………………….. 04
3.1 Internal Environment ……………………………………………… 05
3.1.1Weakness of cinnamon lake side
hotel…………………………... 06
3.1.2
Strengths of cinnamon lake side hotel…………………………… 06
3.1.3 Identified threats at cinnamon
lake side hotel………………….. 06
3.1.4
Further Opportunities for cinnamon lake side hotel……………. 07
3.2
Gap Analysis………………………………………………….......... 07
3.3.1.
Company organization structure……………………………….. 07
3.3.2Company
structure in cinnamon lake side hotel……………........ 08
3.4
External Environment………………………………………………… 08
3.4.1
Political Environment……………………………………………. 08
3.4.2
Economical environment……………………………................... 09
3.4.3Social
& Cultural environment…………………………………… 09
3.4.4
Business environment…………………………………………… 09
3.4.5 Technological environment…………………………………….. 10
3.4.6
Legal environment……………………………………………….. 10
3.4.7
Ethical environment……………………………………………… 10
3.5
Stakeholder Analysis ……………………………………………… 10
3.5.1
Staff ……………………………………………………………… 11
3.5.2
Suppliers ………………………………………………………… 11
3.5.3
Owners…………………………………………………………… 11
3.5.4
Competitors……………………………………………………… 11
3.5.5
Customers………………………………………………………… 11
3.5.6
Public……………………………………………………………… 11
4. Strategy Assessments........................................................................... 11
4.1. Objectives..................................................................................... 12
4.2 Strategy........................................................................................... 12
4.3 Mission
statement........................................................................... 12
4.4 Vision............................................................................................ 12
4.5 Corporate
values............................................................................ 12
4.6 Business
objectives........................................................................ 12
5 Conclusion……………………………………………………………… 12
6 Recommendations……………………………………………………… . 13
1 Introduction
“Practice
of modern management originates
from the 16th century study of
low-efficiency and failures of
certain enterprises,
conducted by the English statesman Sir
Thomas More (1478-1535). Management consists of the interlocking functions
of creating corporate
policy and organizing,
planning,
controlling,
and directing
an organization's
resources
in order to achieve the objectives of that policy.”1
The institute of chartered
accountant in Sri Lanka is conducting a one year diploma cause. That is called
executive diploma in business and accountings. Under the management subject I
selected to audit management functions & principles in my own organization
as an Assignment. Cinnamon lake side
hotel is my organization. Whole report been prepared with very limited
information and in a very limited time frame.
This report carefully monitored and analyzed the following
Ø
Executive summary
Ø
SWOT analysis
Ø Environmental
scanning
Ø
GAP analysis
Ø
PEST analysis
Ø
Strategy Assessments
Ø
Conclusions
Ø
Recommendations
2 Company
Introductions
Cinnamon lake side hotel was started on 1985, at that
time its name was Ramada Renaissance. Surrounded by 7 acres of landscape
gardens, The Cinnamon lake side Hotel is the only resort style hotel in the
city with Lake Frontage, presenting a fine blend of modern & traditional
architecture. Now it’s under the
owner ship of John keels holding. Rooms, Food, and Beverage, are the Main
product we offer to our customers. There are 354 rooms in the hotel. There 09 restaurants
with a 24 hour dining restaurant. It was the best 5 star city hotel in 2010
& 2011. And the first Srilanken city hotel to obtain the green globe
certificate. And the hotel has an “A” grade certificate in hygiene
classification audit conducted by the Colombo municipal council. Also judged as
the “Top valued hospitality band in 2011.
3 Environmental scanning
Careful monitoring
of an organization's
internal
and external
environments for detecting early signs of opportunities
and threats that may influence
its current
and future plans. In comparison, surveillance
is confined to a specific objective
or a narrow sector.2
When we
talking about the environment there two main environment Internal Environment and
external Environment.
3.1 Internal
Environment
The conditions,
entities,
events,
and factors
within an organization
that influence
its activities and
choices,
particularly the behavior
of the employees.
Factors that are frequently considered part of the internal
environment include
the organization's
mission
statement, leadership
styles, and its organizational
culture.15
3.1.1 Strengths, weakness, Opportunities, Threats Analyses
SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be
carried out for a product, place or person. It involves specifying the
objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieving that
objective. The technique is credited to Albert
Humphrey, who led a
convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data
from Fortune 500 companies.3
Taking into consideration after
the end of the 30 year war in Srilanka, hotel sector getting Competitive more
and more. The findings of the analysis in a compressed form are as follows.
3.1.2 Strengths of cinnamon lake side hotel
Ø
Was the best city hotel in Sri Lanka in last two
years
Ø
Have a very loyal clients base
Ø
Well Experience staff.
Ø
Location.
Ø
Under owner ship and management of no 01 company
in Srilanka.
Ø
Financial strength
Ø
A visionary leader as a General Manager.
Ø
Certificates on Green globe, HACCP, ISO 22000
Ø
Low operation cost on rooms
Ø
Very good internal controlling system
Ø
A very strong middle management staff
Ø
Only hotel in the city has a floating restaurant
Ø
First
Srilankan city hotel to obtain the green globe certificate
Ø
Judged
as the “Top valued hospitality band in 2011.
3.2.3 Weakness
of cinnamon lake side hotel
Ø
Too much civil war among the top management.
Ø
Most of the well experience staff will be
retried by 2013. Straggling to fine replacements
Ø
Lack of passion and knowledge on newly recruited
staff
Ø
High employee turnover on Top management
Ø
No Plans on retaining experience staff
Ø
Social and ethical barriers
Ø
Seasonal
Ø
Restriction on internet fasciitis to the staff
Ø
There is no official way no know how competitors
behave in the market
Ø
Lack of knowledge about the other areas for the newly recruited staff
Ø
No internal promotion for experience staff. Due
to that experience staff is leaving to join competitor hotel.
Ø
Lack of know edge about the srilankan culture
and the people by the staff been recruited outside the country
Ø
There are less activities to the young customers
3.1.4 Further
Opportunities for cinnamon lake side hotel
Ø
Only city hotel can land sea planes
Ø
New international training programs
Ø
Due low dollar rate to a room night ability to
capture new European travelers
Ø
Ability to enter the Indian and Chinese markets
due to the cinnamon brand.
Ø
A system to book a room though internet
3.2.4 Identified
threats at cinnamon lake side hotel
Ø
Migration of employees to competing
organizations.
Ø
Have to compete with international hotel chains
with new technologies.
Ø
Delays in the introduction of regulatory
measures.
Ø
Every subject department heads need to report to
a subject head in the group sometimes general manager becomes powerless. It
effects the decision making process
Ø
Lack of trust about the decision making process
Ø
Threats of owning company lose the current
enthusiasm on the hotel.
Ø
Too many foreigner employers
Ø
No balance between service and procedures
3.2 Gap
Analysis
A technique
that businesses use to determine what steps need to be
taken in order to move
From its current
state to its desired, future state. Also
called need-gap
analysis, needs Analysis,
and needs
assessment.4
Since hotel has a very loyal
client base it can take the Opportunities to start a seaplane service in order
to provide very good service. Currently John keels holding as identify the threats can be created from the new hotels
such as Four seasons Ritz Carlton and Shangri-La , step been taken to upgrade the level of service and level of
training. Need to seek a strategy to encourage more and more local customer at
the off season in order to gain more revenue in the off seasons.
3.3.1. Company organization structure
An organizational structure is
the framework that helps employees achieve their goals and do their jobs,
according to Lamar University. An efficient company structure can benefit the
organization in several ways, including making it easier to delegate
responsibility and effect change throughout the organization. To benefit from a
strong framework, it is important to understand the advantages of
organizational structure.5
3.3.2 Company
structure in cinnamon lake side hotel
General Manager
Executive Assistant Manager
Dir HR Dir Finance Dir Sales Dir Room deviation F&B Mgr Chef Eng
Pur
Mgr Hr Mgr Pr Mgr Sec Mgr Fin Mgr Ex. Chef Tra Mrg Ex Housekeeper
Credit
Mrg Cost Controller IT Mrg Rev Accountant Financial Accountant
|
Assistant cost controller
|
It is and functional management structure it
help to communicate well and to a smooth operation in the hotel. Sometimes it
hard to make decisions since everyone has very limited knowledge in other
areas. And every subject head has a group head that need to report, sometimes
that make general managers dissection making process bit difficult.
3.4 External Environment
3.4.1 Political
Environment
Sri Lanka
is governed by a democratically
elected president and a 225-member parliament. The president serves for a term
of six years and has the power to dismiss the parliament, out of which the
president selects cabinet members, a prime minister, and a chief justice.6
After the end of the 30 year war more and more
foreigners are coming to srilanka it is and very positive situation to the
hotel sector.
Under the present political environment peace has been restored and Sri Lanka
has been a prepared destination. The new law in
transporting the fruits and vegetable in create is a very good initiative to
the hotel sector since in order to have quality items.
3.4.2 Economical
environment
“Outlining about the tourist
industry, the report points out that the Tourism Industry expanded
substantially in 2011 both in terms of arrivals and earnings; major
international hotel chains are being established in Sri Lanka while several
reputed airlines have added Sri Lanka among their destinations. Over the medium
term, the industry is poised to achieve the target of attracting over 2.5
million tourists and the tourist spending target to USD 150 per night by 2016
by facilitated high end tourists and infrastructure”. 7(Central bank report 2011)
Tourism industry
contributes a lot to the srilankan economy
“Anura Lokuhetty, President of
the Tourist Hotels Association says that the year 2011 was a wonderful year for
tourism in Sri Lanka which surpassed the targets set for the year and the
foreign exchange revenue recorded a 50% increase compared to the revenue earned
in the year 2010”8
Current economic environment is
very favorable to the tourism industry and if this situation as such hotel
sector will grove dramatically.
3.4.3 Social
& Cultural environment
The official name of the nation
is the Democratic Socialist Republic of Sri Lanka. In 1972, the national
constitution discarded the name Ceylon and adopted the name of Sri Lanka. In Sinhala,
the language of the majority, Sri means "blessed" and Lanka is
the name of the island.9
There is always conflict with social and
cultural issues due to sir lanka is a Buddhist country, so that most of the foreigners
cultural behaves is not permitted in most of the srilankan hotels. That effects
the growth of the revenues.
3.4.4
Business environment
Sri Lanka's economy is shifting away from its traditional
agricultural base to include production for an international market, a shift
accelerated by a major policy change in the 1977 transition from a
socialist-style, state controlled economy to a free market economy lead by the
private.10
Business environment is very
important to the hotel sector, a good business environment encourage the
investors come to Srilanka.
3.4.5 Technological environment
That part of the firm's external
environment in which changes in technology affect the firm's marketing effort the
changing. The usage of the new technology to the hotel sector is still and the
beginning stage So that most of the work done by hand even though there is new technology available in the world.
3.4.6
Legal environment
Sri Lanka's judiciary consists of
a Supreme Court the
highest and final superior court of record, a Court of Appeal, High Courts and
a number of subordinate courts. Its highly complex legal system reflects
diverse cultural influences. The Criminal law is almost
entirely based on British law.
Basic Civil
law relates to the Roman law
and Dutch
law. Laws pertaining to marriage, divorce, and inheritance are communal. Due to
ancient customary practices and/or religion, the Sinhala customary law (Kandyan
law), the Thesavalamai
and the Sharia law too are followed
on special cases. The President appoints judges to the Supreme Court, the Court
of Appeal, and the High Courts. A judicial service commission, composed of the Chief Justice and two Supreme Court judges, appoints,
transfers, and dismisses lower court judges.11
Need to adhere to the excise
laws, and environment laws, and company act, and tax laws in order to continue
a smoothly operation.
3.4.7 Ethical environment
British High Commissioner John
Rankin said he will encourage more UK companies to consider Sri Lanka as an
ethical and profitable trading partner and source of supply, appreciating the
Government’s efforts to improve the business environment by tackling existing
barriers to trade and streamlining bureaucracy.12
(He made these observations
speaking at the Annual General Meeting of the Sri Lanka Apparel Sourcing
Association (SLASA)). This is a very good situation to the hotel sector since
British people are very good spenders and we can generate more revenue from
them
3.5 Stakeholder
Analysis
A person or body that is directly
or indirectly involved with a company or organization
and has an interest
in ensuring that it is successful. A stakeholder may
be an employee,
customer, supplier, partner, or
even the local
community within which an organization operates.13
3.5.1 Staff
Hotel has over 800 staff. Most of
them were with cinnamon lake side hotel over 10 years. HR Units are designed in
a manner that enables high accessibility by any employee to every level.
3.5.2
Suppliers
As a service industry we need to
purchase lot of food and beverage items from suppliers. Maintaining fair
procurement practices and improving their social and environmental performance.
Assigning contact to the suppliers done by centralize purchasing unit.
3.5.3 Owners
Owen by john keels holding. And
always dedicated to maximizing the shareholders wealth.
3.5.4 Competitors
There are two main competitors; it is cinnamon grand hotel
and Colombo Hilton hotel,
3.5.5 Customers
We value our customers very
well always make an effect to retain are customer,
Delighting our customers with
service par excellence.
3.5.6 Public
We manage to give a good picture about the
hotel with are csr programs.
Supporting disadvantage
communities.
4. Strategy Assessments
Strategic assessment is a tool that contributes to informed
decisions in support of sustainable development by incorporating environmental
considerations into the development of public policies and strategic decisions.16
4.1. Objectives
“Building Businesses that are Leaders in the Region”
4.2 Strategy
The overall scope and direction of a corporation
and the way in which its
various business
operations work
together to achieve
particular goals.14
The entire strategy making done by the owning company. It
always direct to a group objective.
4.4 Mission statement
Ø I
will get it right the first time all the time
Ø
I will care
Ø
I will standout where ever I am
Ø
I will empower
Ø
I will be green
Value are customer
satisfaction always promise to exceeds there expectation and Always dedicated
to fulfil the band promises. Committed to go beyond the branding promises. And pledged to protect the environment.
4.6 Business objectives
5 Conclusion
After carefully monitoring the internal
and the external factors following key issues been indentified
Ø
There is a major issue replacing the experience
staff who will retire soon
Ø
There is a internal problems among the
management team
Ø
There is a training issue in the newly required
staff don’t have a passion to work
Ø
There is no plain to retain experience staff
leaving the hotel to competitor hotels
Ø
There is a legal and ethical barrier to develop
the hotel industry
Ø
Less advantage been taken being the best city
hotel
Ø
There is no management plans if owning company
decided to sold e the hotel
Ø
Too much have to depend on the owning company
decisions
Ø
Company done have a their own identity, also as
to be in the in the shadow of the
Owning company
Ø
Governing bodies
are not that active
Ø
There are uncertainty about the further
Ø
Staff does not trust the decision made by the management
Ø
Weak in capturing the young market
6 Recommendations
Like to make below recommendations in order to make the
hotel operation and the achieve the future objectives.
Ø Must increase the retirement age from
55 to 58 until 2016
Ø General Manager must interfere and
solve the problems between the top management.
Ø There must a have sales team at china
and India. To capture the sales in that region
Ø Departmental training to the newly
recruited staff to know what happen in the departments
Ø General manager must take his management
team to his vision path
Ø The objective must strengthen the
group but hotel must have their own objective to go forward
Ø Management need to start to listen to
the staff problems
Ø Management need to speak to the
experience staff. Because there more answers in them than looking for books.
Ø Need to concentrate more on increasing
the room revenue since it has a less operating cost, It will lead to increase
profitability in the hotel
Ø Company must identify the skilled
management staff and consider to make them elevation to the next level
Ø Need to take more advantages on being
the best city hotel in the city.
Ø Need to open a nightclub ,with out no
restriction on entrance
Ø Must open a casino inside the hotel
7 Appendix
The numbering end of a paragraph indicates it has taken from
a site. Below numbered site represent that site.
5 http://smallbusiness.chron.com/advantages-organizational-structure-844.html
6
http://www.everyculture.com/Sa-Th/Sri-Lanka.html)
8 http://forum.srilankaequity.com/t14743-tourism-will-be-a-major-industry-in-2012)
9 http://www.everyculture.com/Sa-Th/Sri-Lanka.html)
10 http://www.everyculture.com/Sa-Th/Sri-Lanka.html
sector.)
12 http://jaafsl.com/news/806-consider-sri-lanka-an-ethical-profitable-trading-partner-british-envoy).
13 http://www.investorguide.com/definition/stakeholder.html)
16 http://www.ceaa-acee.gc.ca/default.asp?lang=En&n=A4C57835-1
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