Rooms Division Operations Management

Running head: ROOMS DIVISION OPERATION MANAGEMENT
Rooms Division Operations Management
Name of the Student:
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ROOMS DIVISION OPERATIONS MANAGEMENT
1
Contents
Introduction:....................................................................................................................................2
Key problems and issues:................................................................................................................2
Reference to specific facts and data:...............................................................................................4
Actions and recommendations:........................................................................................................7
Conclusion:......................................................................................................................................8
References:......................................................................................................................................9

ROOMS DIVISION OPERATIONS MANAGEMENT
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Introduction:
Running a business organization properly is a very complex task in the modern business
environment. Management must manage an organization efficiently to achieve organizational
objective. With the continuous pressure of competition management must take appropriate
decisions to ensure that the resources of the organization are used effectively to maximize the
profit of the organization. In this case the key problems and issues in Chatham Hotel shall be
discussed and addressed.
Key problems and issues:
Huge increase in operating expenses:
The operating expenses of the hotel has increased significantly in reality. Thus, compared to the
budgeted operating expenses the hotel has experienced significant increase in the amount of
operating expenses. The actual operating expenses of the hotel has increased by almost 63%
from budgeted operating expenses (Mansour Ghazi, 2016).
Huge increase in total expenses of the hotel:
As per the budget the hotel was expected to incur a total expenses of $342,816 however, the
actual expenses has been $395,582 which is an increase of 15%.
Reduction in profitability:
Despite the increase in room occupancy Chatham Hotel has experienced slight decline in net
profit margin. As per the budget it was estimated that the hotel will earn a net profit margin of
51% however, in reality despite the increase in room occupancy and overall revenue the hotel