HVMA6025 Autumn 2018: Report on De Vere Hotels Growth Options

This report provides a comprehensive analysis of growth options for De Vere Hotels, a multi-billion dollar hospitality corporation. The report begins with an introduction to De Vere Hotels, outlining its operations across various sectors, including lodging, food and beverage, and tourism. It then delves into the opportunities for internationalism, utilizing the 12C framework and Porter's Five Forces to analyze potential markets, particularly focusing on expansion into the Indian market. The report highlights the importance of understanding competitive forces and adapting strategies to new market entries. Furthermore, the report addresses key management issues within the hospitality industry, such as changing customer expectations, technological advancements, political and security challenges, and staff turnover. The report emphasizes the need for effective management to navigate these challenges and ensure smooth operations, including revenue and booking management, and seasonal fluctuations. The analysis underscores the significance of adapting to evolving customer demands, embracing technological advancements, and addressing external factors to ensure the continued growth and success of De Vere Hotels.

Report regarding the growth options for De Vere Hotels 1
REPORT REGARDING THE GROWTH OPTIONS FOR DE VERE HOTELS
Name:
Institution:
Course:
Tutor:
Date:

Report regarding the growth options for De Vere Hotels 2
Introduction
DE Vere Hotels operates nine different properties across the United Kingdom right from city
centers to country houses. The hotel formally concentrated on launching of sale of its mid-
market village hotel chains. It also launched the last together with biggest chuck of Lloyd’s
hospitality portfolio that could attract bids of approximately four hundred and fifty Euros
(Atkinson 2016, p. 384). De Vere Hotels has announced major investment in different meetings
and events. The hotel remains to be the multi-billion dollars corporation that depends on the
availability of time for leisure and disposable income. The industry has comprised of varied
sectors that include hotel and space for different events. Example of sectors in this hotel include
sector for planning event, lodging, theme parks, traveling, cruise line, and additional fields
within the industry of tourism. The hotel is a hospitality unit that comprises of hotel, cafe or the
amusement park that comprises of various groups as facility together with direct operations such
as porters, workers in kitchen, housekeepers, administration, bartenders, promotion, and resource
of human among other aspects. Furthermore, hospitality industry of De Vere on its operations is
a multi-billion dollar corporation that depends much on the presence of throwaway income
together with vacation periods. Instances of internationalism bring both positive and negative
opportunities for operations of De Vere Hotel (Sanni, Hongoro, Ndinda, and Wisdom 2018, p.
13). Therefore, it is clear that HRM in hospitality industry remains to be that section of
management process that fundamentally concerned with human constituents of the De Vere
hotels.
Overview of diverse sectors within hospitality sector - De Vere Hotels

Report regarding the growth options for De Vere Hotels 3
The industry has various sectors that include hotel and space for different events. De Vere
management always trains over four hundred young Londoners to fill the positions of customer
service together with cookery. Some of departments of this hotel comprise of department of
planning event, theme parks, lodging, cruise line, traveling, and additional fields that are found
within tourism industry (Gowreesunkar, Naqvi, and Séraphin 2018, p. 259). From such
operations, it is clear that De Vere Hotels are hospitality industries that are busy corporations that
conduct countless operations. However, the needs of customer assistance for this industry remain
to be a major joining factor mutually shared by every segment of its operations. Different sectors
of De Vere ensure that vital needs of every customer or traveler are met in a holistic manner.
Additionally, De Vere hotel is a multi-billion dollar corporation that depends much on the
presence of throwaway income together with vacation periods. Some of departments in this
industry include management of revenue, front office, division of rooms, and food together with
beverages (Sanni, Hongoro, Ndinda, and Wisdom 2018, p. 12). Through all these departments
within De Vere Hotel, its operational successes greatly depend on efficiency of operational team
and how effective the model of business is set.
Some of businesses of De Vere Hotels comprises of collection of sub-companies that deal with
provision of quality services to targeted clients. Other major departments in De Vere Hotels
comprise of lodging accommodation, food and beverages departments, travel and tourism
sectors, industry for entertainment, and timeshare departments. Lodging-accommodation sector
in De Vere hotel features are found in comfortable hotel to prolific resorts along with
campgrounds. Lodging department in this hotel is completely wide sector as it ranges from bed
and breakfast enterprises to different amenities that offer services for lodging (Tătar, Herman,
and Giurgiu 2017, p. 233). Additionally, food together with beverage sector is another crucial

Report regarding the growth options for De Vere Hotels 4
sector of this hotel. The sector that deals with food together with beverage ranges from anything
as easy as café all the way to the restaurant of soaring-end and every cookery concern in amid
the operation. Furthermore, tourism and travel sector in De Vere Hotel is an important
department in its operation as it comprises of various fundamental functions cross markets
during its operations (Zimmerman 2018, p. 111). Department of travel along with tourism of this
hotel are useful in increasing the revenue of its businesses. The department attracts more
customers to use goods and services of this company and thus attracting huge profit in
operations.
Opportunities for Internationalism of hospitality industry
12C Framework and Porter’s Five Forces
The framework of 12C in operations of this hotel is the device useful in analyzing global markets
with the motive of examining twelve different facts. These facts consist of country where the
hotel operates, culture of behavior of consumers, choices, consumption of products produced,
contractual obligations, commitments, and channels. Other facts include communication,
currency, capacity to pay, together with caveats. Besides, mode of Porter’s 5 Forces is
implemented in this 12C framework that refers to new entrants, buyers, suppliers, market
competitors, and substitutes. The US as well as Canada remain to be best place for business
operations of De Vere Hotel based on criteria that the region have potential of allowing the
industry to et huge revenue amounts, huge number of transactions, and increased in number of
clients references. The hotel is currently based on US as the region offer ideal working
environment for the management and growth of the industry. The hotel presently operates in
about fifty locations, mainly in the United Kingdom and United States. However, there is the

Report regarding the growth options for De Vere Hotels 5
need to expand operations of this industry into different Indian markets as a way of attracting
huge profit base and customers during operations of the organization. The opportunities
expansion of business operations of De Vere hotel can help in expanding its international
capacity. The expansion of operations in different markets can enable the industry to be capable
to work in concert on particular concern of fulfilling the need of customers (van den Berg, and
Noorderhaven 2016, p. 121). Expansion of such operations in different markets such as in India
can be essential in offering this hotel the best platform to use their wealth, economic
responsibilities, and military responsibility to promote the better, more peaceful, more precious
global society to every targeted client in their operations.
Porter’s Five Forces that determine where De Vere Hotels are currently found
Model of Porter’s is based on the insight that the strategy of corporate need to meet the
opportunities as well as threats in the external environment of organization. Strategy of
competition on operations of the company is based on understanding and structures of the hotels
and the manner the management changes its operations (Overå 2017, p. 368). The model
comprise of five different competitive forces that shape every operation in the organization and
every market such as entry of new investors, power of bargaining of suppliers, threat of
substitutes, power of bargaining of buyers, together with rivalry among existing competitors. De
Vere Hotel can use this model to increase its operations in different markets around the UK
along with the US (Font and Lynes 2018, p. 1033). However, the management of the company
can use the model of Porter to establish its business operations in places such as Indian markets.
Mindfulness of the 5 different competitive forces can assist management of De Vere Hotel to

Report regarding the growth options for De Vere Hotels 6
understand the industry and position itself in the much more profitable places in India that is safe
from any attacks.
Model of Porter’s 5 Forces approach can be used to reveal the power of bargaining of different
customers and suppliers, competition among current Indian businesses, threats of replacement
goods and services, together with possible new entries into the industry within the new region
where the business is to be established (Abdul-Aziz, Nor, Law, and Pengiran 2013, p. 150).
Therefore, when each chance along with threats created by every department of De Vere Hotel
force becomes clear, it will be possible for managers of the hotel in the new region to generate
and conduct offensive and defensive strategies to position their businesses in orderly manner.
New market entries in markets such as Indian might show possible entry of new rivals in hotel
industry. As these threatened share of market of current operations in hotel sector and improve
major creating capacity, develop extra supply, they might guide to amazing decline in values and
consequently decline in incomes of competitive operations (Rehman and Mubashar 2017, p. 62).
However, threat generated by new entries into the hotel industry depends entirely on the reaction
the new business of hotel face from its present competitors and presently entry obstacles.
Besides, the need to meet bargaining power of supplier and customers is vital as it offers
opportunity of new markets to the industry. These new markets offer more and greater
opportunities for expansion, income, and growth during operations of such industries (Rober and
De Haene 2017, p. 381). Therefore, a bigger market for De Vere Hotel in new markets means
more clients, increased profits or revenue for the company, a larger profit margin, and enables
the business to realize scale of economies.
Management Issues within Hospitality

Report regarding the growth options for De Vere Hotels 7
It is clear that the work that comes with management of hotel such as De Vere is not always
easy. Most hotel managers are in most cases forced to juggle the number of tasks at any specified
moment from ensuring that the books are balanced. The balance of different operational tasks
helps in ensuring that everything is running smoothly (Wenlan, Shenghua, Hongbiao, and Zheng
2018, p. 738). Some of the issues that face hospitality industry in terms of management include
the constantly changing expectations of targeted clients and continued changes in technology
along with regular innovations. Other management issues consist of political together with
security challenges, shortage of skilled laborers, staff turnover, and irregular operating hours.
The challenge of booking and revenue is another issue that affects management of hotel industry
such as De Vere Hotels as guests have various alternatives to choose from during their visits.
The issue has made sure that manager of these companies up their marketing along with
advertising game. Instances of seasonality of the hospitality industry are another issue that
affects operations (Pearlman and Schaffer 2013, p. 228). All these management issues affect
managers in modern hospitality environment as the managers face various issues since they have
the fundamental role in the operations of the industry.
Constantly changing expectations of clients remain to be a vital management issue within
hospitality industry. The client remains to be the king in the hospitality industry such as in De
Vere Hotel on its whole operations. The idea of keeping customers happy is not enough in
operations of hospitality anymore (Álvarez-Bermejo, Belmonte-Ureña, and Estrella-Ramón
2016, p. 963). Changing times have brought about changed demands from clients of the hotel.
Besides, continuing changes in technology and regular innovation affect operations and
management of hospitality industry. Different businesses in the hospitality industry are relying
much on the use of technology to streamline their service. Therefore, idea of keeping up with

Report regarding the growth options for De Vere Hotels 8
technology remains to be one of the major concerns faced by different managers of De Vere
Hotel, but when dealt with properly, it is definitely worth the value. The use of technology in
hospitality industry helps in transforming businesses in the present competitive era (Ferreira
2017, p. 71). Over previous years, major inventive in De Vere is determined by progression of
technology. Moreover, political together with security challenges remain to be one of top
management apprehensions in hospitality business. The issue of managing the macro aspects
dealing with the economy along with socio-political challenges affects operations of De Vere
hotels (Williams 2016, p. 38). Moreover, danger of terrorism in present society has changed how
individuals travel and where they travel during every visit. Presently, guests have options to
select from, as they have forced managers to up their advertising as well as marketing game.
Peak seasons in the hospitality industry such as De Vere hotels tend to bring several businesses
but it also leads to undue stress to the management of operations and its staff. The other
management issue is the changing trends of travel and emergence of sharing economy (Malik,
Madappa, and Chitranshi 2017, p. 329). Therefore, managers need to learn how to keep up with
rapidly changing playing sectors and problems of distributions.
HRM and Operations of hospitality industry
Operations in human resource of hospitality in De Vere Hotel refer to the daily functionality as
well as transactions of human resource. In developing operations of De Vere Hotel, its leadership
and staff experts of HR or consultants tend to focus on determining the long-range targets for
HR. Operations in De Vere Hotel remain to be service offered by the department of HR with the
aim of operating several businesses in different markets. Actions of HR or operational activities
of HR in this hotel consist of services of management, course of recruitment, analysis of task,

Report regarding the growth options for De Vere Hotels 9
and administration of relationship of workers (Spencer 2015, p. 36). These performances within
actions of HR in De Vere Hotel are engrave in place by administration of hospitality sector with
plan of sustaining management together with staff in their day-to-day operations of business and
significance towards attaining objectives and vision of a hotel. Moreover, there have been
several studies conducted on the significance of the human resource management and operations
as the business settings of hotels have transformed in hospitality industry into more competitive
global markets. For De Vere Hotel to perform operation, HR staff members remain to top-level
administrators (Williams 2016, p. 38). The tasks that operations accomplish in operations of De
Vere hotel are highly visible to its workers because t focuses on the daily issues of work
attributed to the ongoing needs of operations.
Human resource management in De Vere Hotel effectively helps in describing the planning
process and directing the application, utilization, and development of human resource
employment. HRM in this hotel remains to be that section of management process that
fundamentally concerned with human constituents. In De Vere Hotel, HRM remain to be
purpose within the corporation that focuses on process if management and offering direction for
the individuals that work in the organization (Malik, Madappa, and Chitranshi 2017, p. 329). An
enterprises human assets or put more conventionally, it is HRM tend to be one of the most
essential cost form most hospitality industry. In most hotels such as De Vere, payroll is the single
biggest cost items, while in restaurants together with bars it is commonly second only to costs of
materials. Moreover, HRM in De Vere Hotel usually stay to be the initial point of contact amid
the enterprise and its targeted clients. The ideal and effective management of HR is therefore
essential to the success of the enterprise (Black 2016, p. 152). Besides, HRM policies in De Vere
Hotel are normally the part of the overall policy of hospitality industry. These policies comprise

Report regarding the growth options for De Vere Hotels 10
the number of components that affect operations of De Vere hotels on how to be competitive in
business settings. Additionally, HRM requires that professionals of HR consider the overall
picture of the growth of business. It also ensures that there is need to implement different
techniques and ways to make the direct contribution to company’s long-term goals (Masum
2015, p. 3). In some instances within hospitality industry, HRM in De Vere Hotel may involve
counseling along with coaching of workers, development of rewards programs of employees, and
developing societal plans to engage workers. Therefore, HRM in De Vere Hotel is integral to the
future planning of different business within De Vere hotel as it relates to workers that support
hotel to attain its strategic goals.
CSR and Sustainability of hospitality industry
Corporate social responsibility (CSR) along with sustainability in hospitality industry remains to
be the comprehensive approach towards organization management that is focused on developing
and maximizing lasting economic, social, and environmental value. CSR in business operations
of De Vere Hotel stays to be the response to the challenges of the modern global society that face
different departments (Rehman, Baloch, and Sethi 2015, p. 101). The CSR concerns with the
responsibility of company for society in the sense of sustainable practices if business within
hospitality industry. Some of the CSR policies applied by management of De Vere Hotel to
establish it operations in different new markets include appropriate management of operations.
Such management assists the hotel in protecting as well as enhancing interests of several
shareholders in the new markets. The policy assists the management to effectively monitor
various operational activities along with performance of the hotel through overseeing business
operations of the hotel (Pope and Lim 2017, p. 1733). The other CSR policy of the De Vere

Report regarding the growth options for De Vere Hotels 11
Hotel includes the regulation of taxes of businesses in order to work as per the regulations of a
given country such as UK. The policy of regulating taxes help this hotel in minimizing the
amount of threats while it maximizes various opportunities that might occur from various
competitors in hospitality industry in regard to cases of fluctuation in costs of operation in a
given country.
The CSR policy of development of linked contingency plans by De Vere Hotel is essential in the
operation of this hotel in new or targeted market. The policies of such plans are essential in
addressing prospect influence during its operations in new markets. These plans are essential in
supporting operations of hotel by supporting its operational strategies to improve capacity of
planning towards management of pandemic concentration and instances of threats that might
arise due to conflict in the markets (Soboll and Schmude 2011, p. 1054). Therefore, CSR policy
of linked contingency plans is essential in supporting operations of De Vere Hotel by enhancing
the framework of operations. Besides, this policy improves the framework designed to help in
improving the manner in which the hotel improves its implementations and identification o
adoptions of risk mitigation during operations in new market such as in India or UK. Therefore,
involvement of CSR policies can improve brand awareness of De Vere Hotel products and
services and improve loyalty of clients. Consequently, CSR policies of De Vere Hotel remains to
be essential because this hotel work in the heart of the cultural tours while offering
accommodation and showing different guests sacred lights. Additionally, another CSR policy of
De Vere Hotel is establishment of eco friendly environment in business sector (Rehman, Baloch,
and Sethi 2015, p. 102). De Vere Hotel encourages as well as endorses idea of establishing eco-
tourism and all members of the team have been specially trained to remain respectful to habitat
together with surrounding. Unique initiative that is developed by this CSR policy include

Report regarding the growth options for De Vere Hotels 12
management of waste, use of solar energy, reducing cases of pollution, and establishing a noise
free plant and machinery as a way of promoting sustainable environment in new business
markets (Pope and Lim 2017, p. 1733). Therefore, all these CSR policies set in place by De Vere
Hotel can be replicated in the new country such as India where the management of the hotel can
plan to expand their business operations.
UK legislation and chosen country legislation (India)
The concept of CSR policies in UK has developed from the understanding that the hospital
industry should look after not only its investors together with clients but also its workers, the
greatest society and community, and even the environment. The idea gives rise to the triple
bottom understanding approach of enhancing revenues and individuals round the market
(Zimmerman 2018, p. 112). In UK, hospitality industry such as De Vere hotel given its large
footprint both in terms of employment and consumption of natural elements like water, food, and
energy has always been at the forefront towards implementation of different practices. Different
issues in CSR policies in UK and India comprise of empowering decent variety among
organization's workforce and dynamic practices of work to guarantee that the lodging works best
in supporting distinctive clients (Blaschczok, Verster, and Broderick 2018, p. 27). However, in
India, the CSR policies are under implementation so that they can gear up to minimize the
adverse impacts of business operations of De Vere hotel in environment. Not restricted to
environmental concerns, the hospital industry as it focus on ideas that deal with embracing
different social concerns and major hotel organizations have implemented initiatives of CSR to
advancement of network. According to the report by Soboll and Schmude (2011, p. 1054),
initiatives of CSR policies in India are discretionary as well as voluntary, benefits of doing good