TMAS 5130: Bon Star Hotel Case Study Analysis and Recommendations

This case study analysis focuses on the Bon Star Hotel, a three-star hotel owned by Krieg Corporation in Naimistan. The assignment involves defining the hotel's problems, conducting a structured analysis using a project assessment questionnaire and competitive analysis, and assessing stakeholders. The analysis reveals issues such as low occupancy rates, outdated facilities, and increasing competition. The recommendations include renovating the hotel, improving workforce efficiency through training and development, and securing funding for improvements. The study emphasizes the importance of stakeholder coordination and communication to maximize business profit, suggesting that Krieg Corporation should actively support the hotel's operations to improve its performance. The report includes a SWOT analysis, industry analysis, and stakeholder assessment to support the recommendations.

Running head: MANAGEMENT
Consulting & Client Management Practise
Name of the Student
Name of the University
Author note

1MANAGEMENT
Executive Summary
The aim of this paper is to analyse a case study and develop recommendation for a hospitality
company. In the chosen case, the name of the hotel is Bon Star Hotel, a three star hotel in
Naimistan. After stating the problem statement and structured analysis through the template
based assessment questionnaire and competitive analysis the recommendation has been
developed for Bon Star Hotel and for the owner Krieg Corporation.

2MANAGEMENT
Table of Content
Introduction................................................................................................................................4
Problem definition......................................................................................................................4
Analysis......................................................................................................................................4
Project Assessment questionnaire case exhibit 2...................................................................4
Competitive Analysis case exhibit 3......................................................................................7
Stakeholder analysis...............................................................................................................9
Recommendation......................................................................................................................10
Conclusion................................................................................................................................11
Bibliography:............................................................................................................................12

3MANAGEMENT
Introduction
The purpose of the assignment is to analyse a case study and develop
recommendation for a hospitality company. In the chosen case, the name of the hotel is Bon
Star Hotel, a three star hotel in Naimistan (Kayalar, 2009). For this report will analyse the
market condition of the hospitality industry of Naimistan, specifically at the Elhan. Initially
the problem situation will be stated briefly. After stating the problem statement and structured
analysis through the template based assessment questionnaire and competitive analysis the
recommendation will be developed for Bon Star Hotel and the for the owner Krieg
Corporation.
Problem definition
Bon Star Hotel owned by Krieg Corporation is a three star hotel situated at Elhan, the
capital of Naimistan. The hotel is currently suffering from zero profit while having multiple
scope of increasing revenue such as hotel, casino, restaurant, bar and office premises for rent.
The past annual report clearly stated that the hotel occupancy rate is 15 to 20 percent, which
is very low to the industry standard (Kayalar, 2009). The facility and service quality has not
been renovated from long period. Low market reputation and increasing competition level
causing significant discomfort to the owner of the mother company named Krieg
Corporation.
Analysis
Project Assessment questionnaire case exhibit 2
Project Title: Bon Star Hotel – Naimistan
1 PERT analysis Data
Political Naimistan is a Central Asian country, which has a

4MANAGEMENT
very stable government
Economic From 2002 to 2007 the GDP has increased by 8% in
each year. Per capita GDP is approximately 11000
USD The foreign investment, energy sector,
harvesting and other economic reform is the base of
the economy.
Regulatory Naimistan had attained independent in 1995 from
Soviet Union. The taxation system for import and
export is very profitable for foreign investors.
Technological Digital technology is not widely improving where
telecommunication is in good condition.
2 Industry analysis
Market size The three, four and five star hotels are sought out
by foreigner travellers
Industry Concentration 25 independently owned hotels are located in
Ethan, the capital of Naimistan.
Market Saturation The market is well saturated with a fixed rate of
pricing excluding the breakfast. The occupancy rate
of other three star hotels are 40 to 50%
Life Cycle Stage Currently the hotel industry of Elhan is growing
rapidly
Level of Competition The competition level in three star level is very low,
where most of the local three star hotel fails to fulfil
the demand.

5MANAGEMENT
Demand Linkage The consumers are demanding the comfort level
Demand Determinants The comfort level, price quality ratio, international
level facilities, hygiene, food quality and services
are the major determinants
Supply Linkage The local and surrounded areas of Elhan has good
traffic and transport system to maintain a profitable
supply chain
Supplier Power Because of the very limited number of supplier in
the local area compared to the number of
competitors, the supplier power is very high.
Barriers to Entry High competitive market and lower availability of
supplier are the major barriers to entry
Economics of Scale Five star hotel
Licenses Bon star hotel currently has a licence for room
rental, restaurant, bar facilities, cassino
Competition from Substitutes Most of the other three star hotels fail fulfil the
demand
Exit Barriers High competitive rivalry
Byers Power The purchasing power of the buyers is high
3 SWOT Analysis
Strengths Many foreign investors are ready to invest in the
casino and bar premises
The actual occupancy rate is 40 to 50%
The price margin is lower than market level

6MANAGEMENT
Weakness Non enough facility
Poor workforce control, especially in night
Kitchen and food quality is not good
Opportunity External investment can be utilised for funding
The market is in growing stage
Threats The competition level is high
The low supplier count
Low technological availability
4 Key Success Factors Exploring the external funding opportunities
Facilitating the physical assets adequately
Improve the quality of service through enhancing
workforce
Source: (Kayalar, 2009)
Competitive Analysis case exhibit 3
Project Title: Bon Star Hotel – Naimistan
1 Bon Star Hotel Analysis Data
What is our product? Hotel, food service, Bar, Cassino amusement
How do we compete? Through quality and brand equity
What are our assets? The large building
Continuous flow of consumers
Wealthy ownership
What are our resources? Funding from owner

7MANAGEMENT
Labour market for workforce
Local and regional suppliers for raw materials and
physical resource
What are our capabilities? Offering 3 star quality living rooms
Casino amusement
Restaurant
Bar
Office premises
Who are our customers? Foreign travellers
Business parties
Few independent events
Office owners
Are customers are happy with the
price/value tradeoffs?
The consumer are not very happy because of the
quality of the service and physical condition of the
premises
Where does the business make its
profit
Hotel 65%
Office rental 30%
Restaurant rental 3%
Shop rental 2%
Where does the Bon Star Hotel
expend money
Energy 40%
Salaries 37%
Utilities 17%
Miscellaneous expenses 6%
2 Competitor Analysis

8MANAGEMENT
Who are our competitors? Three stars and five star hotels of the Elhan
How do they compete? Attractive price quality and good marketing
strategy
What are their assists? Quasi-governmental organisations, Western
investors
What are their resources? Foreign investments
What are their capabilities? Offering hotels with quality services, 24/7 service
Who are their customers?
Are customers happy with the
price/value tradeoffs?
The customers are not happy about the other 3 stars
hotels of the locality. However, the 4 and 5 star
hotels are well appreciated
Where do they make their profit? Hotel
Restaurant
Transport services
Source: (Kayalar, 2009)
Stakeholder analysis
Stakeholder Role Engagement Significance Power Interest
Krieg
Corporation
Funding, Owning and
developing
Internal Primary High High
Suppliers Supplying goods and
refurbishment
External Secondary Medium Low
Workers of Service with highest efficiency Internal Primary Low Medium

9MANAGEMENT
Hotel
Management Managing and making
decisions
Internal Primary High Medium
Consumers Paying for rend and raising
demands
External Primary Medium Low
External
investors
Investing money and assets External Secondary Low High
Advertisers Marketing, promotion and
consulting
External Tertiary Medium Low
Government Regulating and imposing
legislations
External Tertiary High Low
Source: (Made by Author)
Recommendation
From the analysis it can be said that Bon Star Hotel needs renovation and entire
refurbishment for the kitchen, cassino, bar, hotel as well as the office area.
Currently the workforce is very weak and incompetent. Therefore, the hotel should
improve the workforce to get the maximum workforce efficiency, through recruitment,
training and development.
To improve the current work efficiency the hotel management should enforce a strong
monitoring system to control the work process and quality properly (Köseogluet al., 2018).

10MANAGEMENT
Krieg Corporation should fulfil the demand for funding to renovate the entire
premises properly
Krieg Corporation should also allow foreign investors to invest in restaurant and
cassino area with profit sharing mechanism (García-Lillo et al., 2016)
Conclusion
From the above discussion and analysis it can be concluded that the Krieg
Corporation should pay more attention to the Bon Star Hotel, instead of treating this section
as a faithful dog. The coordination, communication and cooperation within the stakeholder is
the key to achieve the maximum potentiality of business profit.

11MANAGEMENT
Bibliography:
Chan, E. S., & Hsu, C. H. (2016). Environmental management research in
hospitality. International Journal of Contemporary Hospitality Management, 28(5),
886-923.
García-Lillo, F., Úbeda-García, M., & Marco-Lajara, B. (2016). The intellectual structure of
research in hospitality management: A literature review using bibliometric methods of
the journal International Journal of Hospitality Management. International Journal of
Hospitality Management, 52, 121-130.
Kayalar, J. (2009). Bon Star Hotel. Retrieved from
https://hbr.org/product/bon-star-hotel/909M72-PDF-ENG
Köseoglu, M. A., Okumus, F., Dogan, I. C., & Law, R. (2018). Intellectual structure of
strategic management research in the hospitality management field: A co-citation
analysis. International Journal of Hospitality Management.
Litvin, S. W., Goldsmith, R. E., & Pan, B. (2018). A retrospective view of electronic word-
of-mouth in hospitality and tourism management. International Journal of
Contemporary Hospitality Management, 30(1), 313-325.
Redding, T., & Chen, P. J. (2017). Out of Soup: Resolving Customer Complaints in
Hospitality Management. In Trade Tales: Decoding Customers' Stories (pp. 127-131).
Emerald Publishing Limited.
Xu, X., & Gursoy, D. (2015). A conceptual framework of sustainable hospitality supply chain
management. Journal of Hospitality Marketing & Management, 24(3), 229-259.