Strategic Management for Hospitality Industry and Simulation

This report discusses facilities within Opulence hotel, changes to the financial performance of the food and beverage outlets, and strategic management decisions for improving performance of food and beverage outlets in the hospitality industry. It also covers guest satisfaction, staff competence, and market performance. The subject is Strategic Management for Hospitality Industry and Simulation, and the course code is not mentioned. The content is relevant to students studying hospitality management in any college or university. Get study material, solved assignments, essays, and dissertations at Desklib.

Strategic Management for
Hospitality Industry and
Simulation

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Overview of facilities within Opulence hotel..............................................................................3
Changes to the financial performance of the food and beverage outlets.....................................3
Strategic management decision for improving performance of food and beverage outlets........5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic Management for Hospitality Industry and Simulation which could create the
interaction and make the fun learning environment. Moreover, this could also help for improving
the performance for business competencies and employability in the hospitality industry setting.
While this report will explain about facilities within the hotel and changes more about financial
performance of the food and beverages outlets, this could help the hotel for knowing about their
feedback from the guest, as well as also examine about strategic management decision for
improving how performance of the food and beverages outlets that could work.
MAIN BODY
Overview of facilities within Opulence hotel
In regard to Opulence hotel, it is found that it deals with number of services and products
that include: full service restaurant in which it provides qualitative and healthy food and
beverage, lobby bar, theme bar, café, mini bar and catering. Full service restaurant is one of the
main section that generates revenue and increase sales of this hotel (Beck and Hensher, 2020).
After that, room services, lobby bar and theme bar help this restaurant in increasing productivity
and sales as well.
On the basis of reputation management and positioning matrix, it is found that Opulence is
on 6th number among all 10 top hotels. Cahill hotel is on 1st number so, on the basis of this, it can
be said that this hotel needs to evaluate its financial performance by which it can identify areas
where it needs to improve.
Changes to the financial performance of the food and beverage outlets
Financial performance can be measured of this hotel by comparing its sales with estimated value.
In food and beverage outlet, this hotel generated $435,910 from full service restaurant but
estimated revenue was: $623,500 (DeFranco and et.al., 2021). Variance gap was too high as it
was around $-187,590. There are number of customers who prefer to order food while staying in
rooms and from room service category, it generated revenue $89,150 and estimated revenue was:
$76,750. On the basis of comparison, it can be said that there was positive variance that means,
this section helped out this hotel in generating more revenue than estimated.
Lobby bar is the one that has also increased revenue and has generated revenue more than
estimated and actual revenue was: $50,399 and forecasted revenue was: $23,870. the difference

between actual and estimated revenue was: $26,529 and it is huge positive gap. food ordered in
meetings was very less and actual revenue generated in this category was very low as there was
negative difference between actual and estimated revenue. Actual revenue of this category was:
$42,680 and estimated was: $633,000 which means there was around -590,320 difference.
Financial performance of beverage
Full service restaurant was the only one section that did not generate revenue and as per the
estimated revenue, there was negative variance of 54.27%. Main section that generated revenue
in beverage service was: theme bar. Actual revenue from this department was: $19,908 and
estimated was: $14,200 (Weersink and et.al., 2021). There was positive variance of $5,708 in
revenue generation. Other than this, lobby bar also generated revenue to the great extent. It
generated around $24,011 and estimated was: $17,622. Positive variance was: $6,389. Room
service, mini bar and events was other departments or sections where there was negative
variance in beverage actual revenue and estimated revenue.
Reasons of changes: On the basis of above evaluation, some sections have been
identified where there was peak changes or variance in revenue. Positive variances section that
generated food revenue include: theme bar, lobby bar and café. In theme bar, there was around
319.14% positive variance between actual and forecasted revenue of food. The reason behind
may be changing needs or behaviour of customers. Nowadays, people prefer to have something
along with beverage so, it was the reason as it increased revenue in food from theme bar along
with beverage revenue.
As this hotel thought that people will prefer buying food services from full time
restaurant section but people preferred buying food from café as well. So, this section also
generated huge revenue. Food revenue from this section was: $14,048 and estimated was:
$6,800. It means there was around $7,248 positive difference. Along with this, there were
number of sections where hotel generated very less revenue (Son, Kim and Kim, 2021). As per
the estimation, there was negative differences for beverage. Event was the section from where,
this hotel did not generate revenue and the reason may be attitude of people who attends event.
People who come for attending events think about reputation and hotels do not serve beverage
and food in events. Other reason may be changes in external environmental factors as this hotel
did not held much events so, this section generated 0 revenue.

In the same year, last month this hotel earned approximate $173,809 and this month, it
earned around $155,394. From last month to this month, there is $18,415 that is huge difference.
On this basis, it can be said that Covid-19 may be one of the main reason of decreasing sales.
Along with this quality or lack of innovation may also be reason. So, on this basis, it can be
suggested to this hotel that it should focus on innovation and hiring skilled employees by which
they can satisfy customers and can attract them for buying products and services of this hotel.
Staffing: On the basis of customers’ response on 2 years it can be said that staffing services of
this hotel is not good (Burgos and Ivanov, 2021). Customers said that services given by staff
seems rushed and disorganised and they also said that they will prefer to come this hotel when
staff provide services in an effective manner. Customers also said that staff of this hotel are
unsteady.
Price: Other main factor that has decreased sales of this hotel is: price. Customers said that
prices of this hotel is not competitive as it provides food and beverages at high cost. There is no
doubt as customers like quality of food but still they do not see value of it as per the prices,
charged by this hotel. For facilities, customers asked this hotel as if it is thinking for providing
other outlets or not (Nishat, 2021). So, on this basis, it can be said that this hotel should make
changes in its pricing strategy and also it needs to hire experienced and knowledgeable staff who
can provide attractive services to customers.
Strategic management decision for improving performance of food and beverage outlets
Market performance: For marketing and advertising, this hotel invested around $6,000
in food and beverage sales manager. In management planning tools, it invested $2,000, in
booking website, this hotel invested around $1,000. Club loyalty program was the main source of
marketing in which this hotel invested around $10,000. In total, this hotel invested around
$21,000. For full service restaurant, this hotel invested around $33,500. In social media and
mobile marketing, it invested around $9,000 and $8,000 (Lin and et.al., 2021). On this basis, it
can be said that this hotel focuses on digital media marketing and it has helped this hotel in
generating revenue. As the hotels that could also increase their sale performance through which
they can make their more guest for the organization. As well as this could also create for them
with usage terms and make sure for having their high estimation sales.
Financial performance: Full service restaurant has earned $2,04,287 in food and
beverage, room service department for food and beverage was:$96,400, $18603 was the income

of lobby bar, $101012 was the income from theme bar. Event sector was the one that did not earn
profit. On the basis of this, it can be said that financial performance of some sectors was good
but some sectors was very poor. In this context, it can be suggested to this hotel that it should
focus on event, mini bar and meeting departments. It needs to bring innovative ideas by which it
can motivate and attract customers for buying food and beverage services of this company.
The food and beverages with full services restaurant with having $1,877,750 and keeping
their room services for which $292,480, that have been working. This must be also important for
lobby bar and theme bar that could be important for the revenue that could help the hotel for
knowing about sales. Productivity that could keep more high balance for the organization with
covers about 15605, room services that cover up within 61082 and make sure for having their
more better financial performance (Johann, Block and Benz, 2021). Catering and mini bar that
could be rated with having the $53,400 and $28,394, while this could led them for working and
keep them for knowing about how they have to keep more expansion over their business. Labor
cost % per cover within having 15.69% for full services restaurant and room services within the
11.49% for their costs. This must be important for knowing about their more impacted and keep
them for working with some better 29.03% and 4.45%, keeping them as lobby and theme bar.
Guest satisfaction
Prices that have been enjoyed by the guest through which price that could not be
competitive. Marketing presence the price is low/value and bringing more understanding about
the hotels prices. While online surveys can drive actions and increment your web-based standing,
they free structure text, and normally ailing detail really want. Overviews offer that chance, with
adaptable plan and inquiry foundation, they permit pose the inquiries need addresses (Menezes,
Jalali and Lamas, 2021). The overview gets sent after guest has left property and normally
incorporate wide scope of inquiries regarding the stay and experience. This kind review can
provide with a bunch of information: from significant level bits of information about the
universal insight. As this could be also seems that guest satisfaction which must be important for
hotel and seems that price about their restaurant that could be seems to be developed, rather than
keeping at low rate.
Staff competence: There is one director of food and beverage, 1 director of restaurants
and 1 for executive chef department. In full service department, there are around 16 waiters, 4
restaurant supervisors, 4 bartenders, 8 cooks and 1 restaurant manager. In lobby bar, there are 6

waiters, 4 bartenders and 2 supervisors. In theme bar, it has 8 waters, 6 bartenders and 4
supervisors. in catering department, there are: 9 waiters, 6 housemen, 5 cooks, 4 supervisors and
1 manager.
Overall, there are around 42 waiters, 14 bartenders and 14 supervisors. In this context, it
can be said that it needs to increase number of waiters’ in theme bar and full service restaurants
in order to provide better services to customers (Naidu, Singh and Narayan, 2021). It is also
found that this hotel has invested around $4085 in training to workers, supervisors and all
employees. It should invest more in investing on training in order to educate waiters about ways
of dealing with customers and increasing their experience as customers responded that staffing is
poor of this hotel.
CONCLUSION
It has been summarized from the above study that financial performance measurement plays
a vital role as it helps out in taking better decision and knowing areas where hotel is lacking
behind. Financial performance of each department helps in improving services of hotels and
increasing customers' satisfaction. This study has discussed ways by which hotels can know
about areas where they need to improve. Customers' feedback is one of the best ways by which
hotels can know areas where they are good and where they need to improve. It has also discussed
importance of strategic management decision by which hotels can improve their overall
performance.

REFERENCES
Books and Journals
Beck, M.J. and Hensher, D.A., 2020. Insights into the impact of COVID-19 on household travel
and activities in Australia–The early days under restrictions. Transport policy. 96.
pp.76-93.
Burgos, D. and Ivanov, D., 2021. Food retail supply chain resilience and the COVID-19
pandemic: A digital twin-based impact analysis and improvement
directions. Transportation Research Part E: Logistics and Transportation Review. 152.
p.102412.
DeFranco, A. and et.al., 2021. Inclusion of Condominium Units in Luxury Hotels as a
Diversification Strategy: Property Performance Perspective. Cornell Hospitality
Quarterly. p.19389655211050398.
Johann, M.S., Block, J.H. and Benz, L., 2021. Financial performance of hidden champions:
Evidence from German manufacturing firms. Small Business Economics. pp.1-20.
Lin, S.H. and et.al., 2021. Exploring location determinants of Asia’s unique beverage shops
based on a hybrid MADM model. International Journal of Strategic Property
Management. 25(4). pp.291-315.
Menezes, M.B., Jalali, H. and Lamas, A., 2021. One too many: Product proliferation and the
financial performance in manufacturing. International Journal of Production
Economics. 242. p.108285.
Naidu, S., Singh, G. and Narayan, J., 2021. Revisiting the contingency theory: dissection of
entrepreneurial orientation elements in retail franchisee performance. International
Journal of Emerging Markets.
Nishat, R.I., 2021. Effectiveness of marketing strategies for renaissance Hotel.
Son, J.H., Kim, J.H. and Kim, G.J., 2021. Does employee satisfaction influence customer
satisfaction? Assessing coffee shops through the service profit chain
model. International Journal of Hospitality Management. 94. p.102866.
Weersink, A. and et.al., 2021. Re‐examining the implications of COVID‐19 on the Canadian
dairy and poultry sectors. Canadian Journal of Agricultural Economics/Revue
canadienne d'agroeconomie. 69(2). pp.215-224.