Hilton Hotel Operational Analysis

This assignment requires a detailed analysis of Hilton Hotel's operational effectiveness. Students need to identify the hotel's strengths, weaknesses, opportunities, and threats (SWOT) within its operational framework. The analysis should include a discussion of key performance indicators (KPIs), potential areas for improvement, and strategies to enhance operational efficiency and customer satisfaction.

Obtain information on Business issues

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSESSMENT 1.............................................................................................................................1
ASSESSMENT 2.............................................................................................................................4
Appendix 4...................................................................................................................................4
Appendix 5...................................................................................................................................6
ASSESSMENT 3.............................................................................................................................7
Appendix 5...................................................................................................................................8
ASSESSMENT 4.............................................................................................................................9
Appendix 1...................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Every business faces some issues in their lifespan. The issues can impact on business
growth and development thus leading to failure. Therefore, it is important to solve them so that
business can sustain for long term. Moreover, issues must be identified so that in future it is not
occurred. business issues can be identified through formal and informal network. It can also
assist in decision making and solving issues (Mason, 2017). This report will describe about
issues faced by business and through what sources authentic data is gathered to identify it. also, it
will show technique to measure validity and reliability.
ASSESSMENT 1
10) by analyzing the data and information it can be stated that Coffee Ville is facing issues
regarding decrease in sales and profits. The company stores are facing severe problems related to
food and beverage sales. Due to continuous decline in it there has been concern among Rufus
and Emma Belcastran to survive in market for long term. The various issues Coffee Ville is
facing are as follows :-
 Firstly there has decline in sales of food and beverage items every year. This can be
determined by measuring results with sales predictions developed.
 Second due to change in external factors like rise in prices of coffee beans in last 1 year,
the property price has been raised from 10-18% in 2016, etc. (Cassidy, 2016) and also
15% increase in wages of experienced labor has become a major concern for Coffee
Ville.
 The price of ingredients like red meat has increased up to 20% in six months. This has
forced Rufus and Emma to change prices of hot dishes.
 Within Coffee Ville due to downfall in sales by 19% in which food sales are 10%,
beverages 12& and catering 17%. expenses are rising making it difficult for them to
profits to pay for it.
 The fourth store is not able to perform as expected. Therefore, Rufus and Emma are
completely focused on how to expand it. so, due to lack of attention on other stores
Coffee Ville is suffering from loss.
Thus, these all are issues which are been faced by Coffee Ville. it has highly impacted on
its growth. They are not able to generate sufficient amount of revenue. Furthermore, fluctuation
in prices on ingredients and rise in expenses are other issues.
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The data that was analyzed by collecting financial statements of Coffee Ville of year July
to December 2015. Thus, it is reliable source of collecting data (Weiss, 2014). In addition the
budget developed by Rufus and Emma of last five financial year has also been studied. It shows
and contain all information about total sales and expenses of Coffee Ville. In that it is clearly
mentioned that half yearly sales of all stores of company. Hence, the data is valid and reliable to
identify issues. In 2011-12 total income was 5% from Jan to Jun but in 2015-16 it was -12%
from July to Dec. similarly, in Jan- Jun 2011-12 there was net profit of 4% but in 2015-16 it was
-13%.
In order to determine issues accurate and precise data and information is required from
authentic sources. They can be obtained from either formal or informal network. The sources
should be authentic and reliable. In Coffee Ville the sources that was taken into consideration
was as follows :
Financial statements – here balance sheet and profit loss statement of Coffee Ville was
collected. it contained data of sales and expenses of all stores. Moreover, data was shown in
detail by dividing it year in two parts.
Budget- Through this source it was identified that what budget was made by Rufus and Emma in
each year so that results can be compared (Hair Jr and et.al., 2015). Also, it helped in analyzing
issue whether it is related to budgeting or not.
Loyalty club membership – in this data was collected about loyal customers of Coffee Ville
and how many have taken or cancelled their membership.
Customer reviews- It is also an authentic source through which data and information can be
collected. in this it is determined what customer thinks about Coffee Ville products and services
and what problems are being faced by them.
Hence, through all above source it was identified that there is decline in sales and profits
of Coffee Ville in last months. By comparing P/L account issue was identified.
It can be said that issues are solved by taking effective decision in right time. hence,
customer review can be useful in decision making process. From it, taste and preference can be
determined so that products are developed accordingly (Bryson, 2017). The information related
to location and changes in menu items can be gathered. It will be useful for Rufus and Emma to
develop strategies and take proper decision before expansion of store in any other location. By
this Coffee Ville will be able to cut cost and increase their sales.
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HOTEL HILTON

Two sources are
Café manager- they play a significant role in decision making. Manager can assist in providing
info about what food item is been likely most by customers. also, they can share views on what
strategies should be developed and implemented to solve problems.
Food service attendants- they are in direct contact with customers so they can provide
information on what customers are demanding. They can participate in decision making and
giving ideas on how cost can be reduced.
By analyzing this information a proper budget is developed for a fiscal year. A budget
gives an insight about sales and expenses that can be incurred. Also, it helps in allocating
resources in different departments accordingly.
It is essential to check validity and reliability of data so that effective decisions are taken.
For this there are several techniques available through which it is done (Hashem and et.al.,
2015). The techniques are given below:-
Internal consistency – in this people’s responses across the items on a multiple-item measure.
The items are measured in correlation with people response.
Interrater reliability – the extent to which different observers are consistent in their judgments.
Content validity- here, data is measured with content. The financial statement must include cost
and profits generated from store in every year.
Here, the data collected of customer feedback was rejected because it did not give any
information regarding decline in sales and profits. It only described views of customers for
different products and services offered by Coffee Ville. Besides this, membership data was
rejected as it only showed people who have loyal customers and having membership.
Formal and informal networks-
They are known as those people who are involved directly or indirectly engaged with
business. It helps in providing useful data and information.
Formal network
 Food service attendants – they assist in giving information about what problems Coffee
Ville is facing. The data of sales from different stores were collected. they may help in
identifying the area where problem has occurred (Ngai, Tao and Moon, 2015). Also,
employees are person that direct interact with customers. they can also give suggestions
on how it can be solved.
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 Cook – they may support in identifying what issues are being faced. It may be related to
order receiving, quality of ingredients, etc. moreover, cook may assist to identify root
cause of issue. Suggestions can be given by them to resolve issues.
 Managers – there were 3 café managers in Coffee Ville. they gave information about
what problems are being faced while developing strategies or budget. They can discuss it
with staff or owner of Coffee Ville on how to resolve it.
Informal network – it includes
 Baristas- these people interact indirectly with Coffee Ville. but it contains useful data
and information that can be used to determine issues (Kitch, 2017). Furthermore, baristas
may help to analyze why issue has occurred and how it can be solved.
 Customers- they are crucial part of Coffee Ville and by collecting feedback from them
issues can be identified. Customer will show main problem and suggestions can be taken
on what changes can be done to solve it.
ASSESSMENT 2
Appendix 4
Decision analysis report
Part 1- decision name
There has been a high decline in sales of Coffee Ville due to fluctuations in external factors
Decision required
To increase sales by 10% in all stores of Coffee Ville in order to maintain stability in growth and
development
History
This decision is taken as there is high fall in sales and profits of company. Moreover, due to
rise in price of coffee beans and property in last 6 months, Coffee Ville expenses has increased.
Thus, it has forced company to increase their sales and profits. The situation occurred in 2015-16
when business opened their fourth store. So, by analyzing financial report of last five years
Coffee Ville sales were declining.
Part 2 Analysis
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Analysis Results Implications
By developing a proper
budget for a particular store.
it will help in keeping stock
as per sales of store.
With help of it, operating
expenses can be reduced.
By comparing financial
statements of last five years
Through this, it gave results
half yearly sales of each
store.
It shows that there Coffee
Ville was facing issue due to
rise in price of raw materials
and land.
Taking customer feedback The results obtained were that
customers who regularly
visited store were reduced
due to health concerns.
The implication was that it
supported issue. there was
change in needs of customers.
Part 3 decision options
It is very important to solve issue regarding sales so that Coffee Ville could survive in market for
long term. The issue can be addressed by developing effective strategies and taking proper
decisions. Besides this, it will help company to recover from losses. For this the decision that can
be taken are as follows :-
Option 1 : Rufus and Emma can take loan from financial institute or a bank to recover from loss.
Positive
Its positive outcome will be company can pay
their debts and open new store in different
location. It will provide some financial help to
Coffee Ville.
Negative
Company is already facing loss, so in the
future they are not able to increase profits, it
will be difficult for them to repay loan
amount.
Option 2: Coffee Ville can add some new items in their menu.
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Positive
This will help in attracting new customers or
target market. By providing new varieties of
food and coffee items sales can be increased.
Negative
For developing new items raw materials and
funds are required. It can led to more pressure
on company to use their profits.
Option 3- Social media marketing can be done to attract new customers.
Positive-
it will help in attracting large number through
social media. In this different type of
techniques can be used to advertise products.
It will help Coffee Ville to create awareness
in market.
Negative –
the digital marketing may not be able to gain
customer attention. Furthermore, it requires a
proper strategy as well as additional IT tools
and equipment’s to develop it.
Part 4 recommendation
Among all actions Coffee Ville can opt for digital marketing. It is because this is an effective
strategy and helps in advertising of products through social sites. Moreover, through it wide area
can be covered and large number of people can be attracted. Here, people reviews can be taken
as well to determine their needs. Coffee Ville can promote themselves on different websites.
They can create blogs, videos, content, etc. it will help in creating awareness and rise in sales and
profits.
Appendix 5
1) the main aim is to determine financial position of company in last five years. This will give
insight on issues been faced by them in generating profits. Another objective is to find out how
budget is been utilized by store manager. By this, it will be easy to allocate extra funds to store
where it is required. Furthermore, by gathering and analysis store growth can be evaluated.
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2) the management can assist in providing internal data and information of Coffee Ville. With
this it is easy to identify change in trends. By using DSS it can be determined that what changes
has to be done and in which area. Taking customer feedback assist in finding out change in their
taste and preference. Both Rufus and Emma should organize a meeting and deal with issue. café
mangers must be involved in it.
3) DSS and management can assist in taking effective decision. They are directly related to
business activities. Managers are responsible for development of strategies. they should provide
information on what type of people can be targeted and what impact will it have on business
growth. By developing a separate budget of three months an comparing it, its long term impact
can be evaluated. In this marketing of new products digitally should be included as well.
Similarly, its impact can be evaluated with DSS.
4) there should be adjustments made so that objectives can be attained. These are as follows :
 In this Rufus and Emma must be involved in allocating resources to each store separately.
Then data can be gathered and operational cost is obtained. Thus, accordingly loan can be
taken from bank.
 Another change is each café manager must implement a method to take customer
feedback. By it their review and needs can be identified. Also, data can be collected on
what changes they want in food items.
Thus, by making these adjustments it will be easy to add new items in menu. Also, in
different store combos can be included so that people can be attracted. With help of it, new
products and services can be developed.
ASSESSMENT 3
For option 2
Forces for change
Reduced prices for food items
Forces against change
Increase in sales of items per
day
Rise in price of raw materials
Generation of revenue. Rise in cost of goods sold
For option 3
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Forces for change
Home packaged and meal
delivery systems
Forces against change
Revenue generated from
delivery charges.
Increase in working hours of
business
Developing loyal customer
base.
Additional funds and person
required
Increase in food wastage
Appendix 5
1) by conducting force field analysis, it can be analyzed option 3 is best course of action that can
be implemented. This is because it will help in removing unnecessary food items from menu.
Also, it will help in attracting people that can are not able to visit store. Thus, they can avail this
service.
2) for implementing this action manager and owners of another café can assist in it. in addition
customer and staff can help in assisting information that how order should be received and
delivered.
3) a) Rufus and Emma the owner of Coffee Ville is having authority to take final decision. They
can consult with café manager, staff and cook to share their ideas and how it can be
implemented.
b) Rufus and Emma are owners of Coffee Ville. They take all decision regarding business issues,
strategies, etc.
c) No, they are not having legal authority to make decision because all employees should be
involved in taking any decision of business.
4) in order to take decision, there are some policies and procedure that has to be followed. Here,
café manager, cook and all other employees must be consulted. Moreover, rise in wages and
property prices should be taken into consideration. The financial statement of Coffee Ville must
be considered as well.
5) There are some recommendations that can be followed. It is as follows :-
 By starting home delivery service and packaged food business will be able to generate
sales and profits. By this they can create customer value and gain their trust.
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 Coffee Ville will be able to recover from loss. They can develop a loyal customer base in
area where stores are located.
ASSESSMENT 4
Appendix 1
MIS and CRM
MIS will help in storing of all data and information about customers and products. It will
store location and order to customer. CRM will enable in accessing their details so that order can
be processed quickly. the systems will be useful in processing of orders in systematic way. It will
also help in online payment. The information required contain customer details, order, address
and mode of payment. These details are required by cook, delivery staff, café manager, etc. to
process order.
Yes, system will be replaced by database. Here, first customer order will be received,
then it processing will be done. After that, details will be sent to database where record are
searched. Hence, records are updated of customers.
The system needs to designed as per Coffee Ville needs. For this firstly system analysis
will be done. Then, configuration will be specified. a proper IT plan will be developed along
with testing procedure. There will be proper security measures implemented. Anti virus software
and firewall will be installed in systems.
A proper change management plan will be developed. In that stages are mentioned to
implement change in step by step manner.
Communication plan
Title- Home delivery systems
Date- 25/10/2018
Project team- Coffee Ville
Swot
Strengths
In Coffee Ville each store has a manager, so
there is effective communication between
them.
Weakness
There is no proper centralized system to
communicate with each other.
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Opportunities
A systematic process can be implemented.
Threats
The maintenance cost of system may rise in
future.
Objectives
To develop a smooth flow of communication between overall staff of Coffee Ville.
Goals and targets
 It will help in focusing in each store.
 The café managers can interact with each other.
Audience analysis
Internal
Café manager, staff, cook, etc.
External
Suppliers and customers
Key message
Centralized communication structure will help in effective handling and managing of operations.
Strategies and tactics
An application will be developed to connect customer with store.
CONCLUSION
It can be concluded that Coffee Ville is facing several issues which has led to decrease in
their sales and profits. in order to identify it precise data and information is collected through
formal and informal networks. the validity and reliability of data can be checked by techniques
like test retest, internal consistency, etc. from this, issues are identified and strategies are
developed to solve them. A decision analysis report consists of different parts. It states what
actions are to be taken, objectives are developed and impact of decision is analysed.
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REFERENCES
Books and journals
Bryson, J., 2017. Effective library and information centre management. Routledge.
Cassidy, A., 2016. A practical guide to information systems strategic planning. Auerbach
Publications.
Hair Jr, J.F. and et.al., 2015. Essentials of business research methods. Routledge.
Hashem, I.A.T. and et.al., 2015. The rise of “big data” on cloud computing: Review and
open research issues. Information Systems. 47.pp.98-115.
Kitch, E.W., 2017. The law and economics of rights in valuable information. In Who Owns
Knowledge? (pp. 35-76). Routledge.
Mason, R.O., 2017. Four ethical issues of the information age. In Computer Ethics (pp. 41-
48). Routledge.
Ngai, E.W., Tao, S.S. and Moon, K.K., 2015. Social media research: Theories, constructs,
and conceptual frameworks. International Journal of Information Management. 35(1). pp.33-44.
Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach.
Berrett-Koehler Publishers.
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