Eleganzia Group: Analyzing Challenges in Forte Village Resort

This case study analyzes the Eleganzia Group, a luxury hotel chain, focusing on its Forte Village resort. It examines the challenges faced, particularly during the 2008-2009 recession, including declining revenues, changing consumer behavior, and increased competition from major hotel brands. The study details the strategies implemented by the group, such as transforming hotels to higher star ratings, expanding food and beverage offerings, and upgrading technology. It highlights the impact of these strategies and the need for improved marketing and pricing strategies to combat recessionary pressures and ensure long-term sustainability. The report includes an introduction, case brief, problem statement, analysis, and proposed solutions, incorporating models like the 7 P's Matrix and SWOT analysis to evaluate the group's performance and recommend strategies for future success in the competitive hospitality market.

CASE STUDY
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EXECUTIVE SUMMARY
Eleganzia Group is a luxurious Hotel group that focuses on delivery of combining
comfort, relaxation & fun to the target audiences to fulfill their demand. Italianity, best quality
offerings, innovations as well as uniqueness are the four key pillars behind the success of the
industry. The present report targeted at examining the current issues and challenges faced by its
one of the leading hotel chain, Forte Village, so that, appropriate decisions and ways can be
suggested to combat the prevailing issues, more importantly, due to crisis. The report founded
that during the period of crisis, Forte Village faced difficulties in their operations due to declined
trend of revenues and change in consumer buying pattern. As a result, managers reviewed its
pricing mechanism and its General Manager, Giannuzzi had decided to charge higher prices to
improve revenues. Moreover, they adopted many strategies and made decisions for deriving
success such as transformation of four-star hotel into five-star, food & beverage, conferences and
other events, technological upgradation like GDS & CRM, co-branding and others. Although, the
results did not brought significant level of improvement and cannot be considered as an effectual
step to overcome recession barriers. In addition to this, tough completion from Starwood, Hilton
& Marriott Hotel & Resorts and change in people attitude & buying pattern brought threats to the
Eleganzia Group. Thus, lastly, in order to combat the recession pressure, Eleganzia Group has
been suggested to create excellent marketing strategies using modern technologies & consider
economical changes to track the market volatility and set the standard pricing policies to ensure
long-run sustainability.
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TABLE OF CONTENTS
Introduction......................................................................................................................................4
Case brief ........................................................................................................................................6
Problem statement ...........................................................................................................................8
Analysis and findings ....................................................................................................................13
7 P’s Matrix...............................................................................................................................13
SWOT model.............................................................................................................................16
Strategic human capital planning...............................................................................................18
Proposed solution...........................................................................................................................19
REFERENCES .............................................................................................................................22
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INTRODUCTION
In present study, work culture of Eleganzia Group has been evaluated in desired manner.
It has been noticed that company is operating its services in the hospitality sector. In addition to
this, it can hospitality industry has emerged as one of the leading and most potential industry of
the world. The industry consists of different restaurants, hotels, resorts, tour operators etc. In
present market conditions the hospitality sector is having great advancement in regard to
improvement of services. Along with this, ratio of competition in the market is very high which
also influences the overall outcome in diverse manner (Hollensen, 2015). In addition to this, it
can be said that by having an appropriate selection of strategies the businesses can have better
opportunities within organisation. Each and every market player is trying very hard to gain high
market share and customer base. As per the view of, in recent years the demand of international
resorts among people in market has increased to a great extent. Hospitality sector is considered
as a sector in which number of businesses are attaining diverse opportunities.
In addition to this, it can be stated as per case given, Eleganzia Group is considered as a
hotel and spas. It is referred as luxurious aspects so that long term sustainability can be attained
in appropriate manner. It has been noticed that company is holding a Forte Village's five star
hotels. In year 2009 business firm was offering presidential suite at rate of 3300 Euro per person
per night. According to given case, it can be stated that company is facing diverse issues in
regard to Italian market which impacts the overall outcome of business in diverse manner (Babin
and Zikmund, 2015). In addition to this, it can be stated that economic crises has influenced
overall business in diverse manner. It has created an issue in regard to pricing model and forced
company to offer rooms at half of the prices. Along with this, application of pricing strategy is
also significant for every business firm. Staff skills issue and marketing issues also creates an
barrier for company so management need to refer it effectively. By having an improved focus on
number of initiatives and methods the Eleganzia Group can easily overcome the issue. It brings
an improvement in services which helps in developing a feeling of relaxation and satisfaction
among all resort guests (Pfoertner and et.al., 2014).
However, at the economic crises the owner also percept market conditions as a good
opportunity of market expansion. In this respect, he has explored the most prestigious hotel The
Eden which is considered at bargain price in present situation. In addition to this, group has also
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owned management rights to Castel Monastero in Tuscany. At the same time, he has decided to
open two other hotels in Sardinia. Present investigation provides a detail analysis of such aspects
which are considered by Giannuzzi. Moreover, the company has also opened tennis academy for
chidrens in year 2008. Soccer camps were being organised at the same period. Even, after such
adjustments the Forte Village’s is facing issues in regard to sales of rooms.
Research Aim
The aim of this research is provided below as:
“To identify the issues faced by business in operational activities of hospitality
organizations and methods to overcome challenges”- A study on Eleganzia Group
Researcher objective
 To determine the current position and performance of Eleganzia Group
 To identify key challenges/issues faced by Eleganzia Group
 To assess appropriate business tools which can support in addressing business problems To recommended ways through which Eleganzia Group can overcome its key issues and
enhance its market performance
Research questions
 Determine the current position and performance of Eleganzia Group?
 What are the key challenges/issues faced by Eleganzia Group?
 What are the models which can be used to analyses key challenges faced by Eleganzia
Group? Determine ways through which Eleganzia Group can overcome its key issues and
enhance its market performance?
Structure of the report
Current research investigation is progressed with a consideration of systematic values so
that effective and beneficial outcome can be attained. In this respect, systematic structure of the
research report is also being taken into account. Chapter 1: Introduction: In addition to this, it can be stated that section is consisted of
brief overview regarding whole research. It has been noticed that present section is
beneficial to attain information about diverse areas which are essential for study.
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Classification of areas that are discussed in introduction are background of study, aims
and objectives of research, research questions, etc (Coope and et.al., 2014). Chapter 2: Case brief: It is a chapter which offers a brief description of the overall
situation. It means by having a brief consideration the case study of Eleganzia Group can
be evaluated in desired manner. Chapter 3: Problem statement and plan of analysis: This chapter is entailing sections
like statement of problem, literature review for present investigation, proposed plan for
the analysis of information. Along with this, evaluation of sources of data for present
investigation is also being taken into account. Chapter 4: Analysis and Findings: It is a section which offers an analysis of gathered
information on the basis of case study. Analysis of information helps in attaining better
outcome from the study (Harhay and et.al., 2014).
 Chapter 5: Proposed solution to the problem: It is a chapter which provides an
integrated assessment, recommendations, limitation and scope of this study. With an
assistance of this, better outcome can be attained because it also allows to have
application of learning from the present research. Findings of research can be used by
different organisations in the same sector.
CASE BRIEF
Eleganzia Group is a luxurious Hotel group that is exclusively devoted luxury hotel brand
located in Italy. It focuses on delivery of combining comfort, relaxation & fun to the target
audiences to fulfill their demand. The brand is appreciated all around the globe because of its
magical and unique services. It owns two most well established resorts in Italy that are Forte
Vilage Resort & Castel Monestero. The main objective of the Group is to build a strong link with
the customers for the high level of satisfaction of high income individuals. The present study is
based on Forte Village, established in the year 1971 in Southern Sardinian. It is the perfect place
for spending holidays and become the world-renowned destination for the high-yielding guests
such as Britsh Football Player, film stars, top industrialists and other VIP visitors. In addition to
the five star hotels, it also offers four star hotel rooms to accommodate people at half board
packages including dinner & breakfast services. However, for the extra services like gaming,
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Soocer, Spa, bowling, food & beverages, it charges additional from the guests to maximize
revenues and generate better yield through regular course of actions.
Over the years, in 1994, it has one three star hotel & three 4-star hotels which are now
became the part of Le Meridien hotel chain, acquired by Eleganzia Group. In a very short span of
time of 1 year to 1995, it expand their chain and owned 1000 hotels and 3000 restaurants and
become world’s leading catering business, afterwards, in 1996, Granada company took over the
group. During this time, Giannuzzi had completed one year of working in Forte Village at
General Manager Post but after, he joined Caribbean hotel chain. Again, in the year 1995, he
recalled by the Forte Village Resort to rejoin the Group again as it was severing difficulties in
the operations. When he met with the Lord Forte, he noticed that consumer said that the prices
charged by the hotel were extremely high and recommended to drop down the prices for
maximizing occupancy rates. But still, there was a lots of confusion observed in the resort
management as II Castello were utilized as a business venue by a conference centre on the top
floor but offered accommodation services as well. Moreover, the largest hotel of the resort, II
Villaggio had 494 bungalows still have no real character. But after the rejoining by Giannuzzi,
his excellent management & working style transformed the 3-starer hotel into 4-star, Castello &
Villaggio bungalows into well-established 5-star hotel to accommodate VIP guests. The strategic
focus of his was on treasure hunting aims at putting attention of underutilized properties so as to
make it attractive and wow for the visitors to generate maximum earnings. Thereafter, during the
period of 1995 to 2007, 6 times it ownership structure has been changed due to the investment by
FIMIT & MITA resort, in which, Giannuzzi acquired 10% shares & became its General
Manager. In 2007, Walt Disney’s CEO also visited the hotel and told that it was really a luxuries
experience due to its key pillars, Italianity, quality services, uniqueness & innovations to have a
stay in Forte Village and no-doubt; it is the second leading hotel chain of the world, after Disney.
Till 2008, he maximized its total revenues from 22 Euro million to 74 Euro million at an annual
return of 31 dollar million and received “World’s Leading Resort” award.
During the period of recession in 2008/ 2009, economic slowdown, crisis created
negative impact to the industry and affected its sales revenues and yield adversely. It bring
necessity for the hotel to rethink upon its pricing model & in respond, Giannuzzi decided to
increase room charges by 7% and 2% for 4-star & 5-star hotels. During the period, prices
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charged by the hotel were too high as it was 295 Euro for HB, 4500 Euro for Castello royal suite
& 50000 a week for the Villa. Personalized, friendly & Italian traditional hospitality services
linked with the staff professionalism helps to serve consumers exceeding expectations. The
period of crisis had changed the customers buying pattern in 2009, out of total revenue of 6 Euro
million, 1.5 million was received as a fee. At that time, although consumers have money still,
they spend less on extra facilities due to psychological reasons. Although, economic downturn in
2009 caused adverse impact, still, resort explore the benefit of various market opportunities such
s Rome’s prestigious hotel, Eden and Castel Monastero in Tuscany. Moreover, two other hotel
chains also has been constructed that were Maddalena Hotel & capo Malfatano. Resort spend 4.5
Euro million on marketing & promotion, out of which 1.5 Euro million spent just to pay wages
to the marketing staff which was extremely expensive. Company faced tough competition from
thje Starwood, Hilton, Mariott & other leading hospitality brands. In order to respond the
recession period, Giannuzzi & management team decided to charge higher prices for the
luxurious facilities. In the low season, they delivery free of charges extra services like free access
to Spa, Wi-FI & others to increase brand value. In order to attract more visitors, it founded
several unique ways to attract more and more visitors such as charging high prices, transforming
mini-club into Children’s City with extra facilities. Moreover, co-branding strategy, special
training to the staff, leisure & sport services, luxury shopping deliveries through opening many
stores, hosting conferences & other business events has been used for the purpose of revenue
maximization to face the challenges of crisis.
However, on the other hand, it acquired Castel Monastero & La Maddalena Hotel &
Yacht Club during the crisis for the expansion of the business. In addition to this, it recently
obtains management rights in Eden because it has a unique location in Rome. Apart from this, in
order to expand audience base, it focuses on technological advancement such as GDS (Global
Distribution System program) via travel agencies, tour operators and others. All these strategies
employed by the resort mainly targeted at reducing the impact of economic crisis over the
regular functionality of the business.
PROBLEM STATEMENT
Statement of the problems in the Case
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It has been noticed that in order to meet the success factors the business firm need to
consider factors such as innovation, practice, human capital, etc. With an appropriate information
regarding classified elements the company can easily attain competitive edge. Along with this,
competition to such aspects can be offered effectively. It is also significant for management of
Eleganzia Group to consider proficiency and operational efficiency in desired manner. Company
is offering wide range of services in the market so management need to consider marketing,
innovation and further elements in appropriate manner.
Literature Review
Hospitality sector is having a great opportunity in the market because of integrated
working within sector. Moran and Hunt, (2014) has stated that there are number of services
which are being offered by the management so that goals and objectives can be accomplished
effectively. Classification of hospitality services is as food and restaurant, accommodation, etc.
In order to have effective accomplishment of goals and objectives the business firm need to
analyse key aspects associated with the business. Moran and Hunt (2014) has contended that
financial analysis of also need to consider because it helps in designing of strategies. Viability,
stability and profitability of the business must be accessed in desired manner. Economic position
of business entity also need to be consider as critical aspect so that decisions can be taken into
account effectively. It has been noticed that any kind of changes in economic values impacts the
overall business in diverse manner. It reflects that analysis of economic values is significant in
order to ensure about long term opportunities.
Nieto et.al., (2014) has asserted that application of quality system is also significant to
consider so that long term opportunities can be attained. By having an improved focus on quality
services the service effectiveness can be advanced in desired manner. In order to meet the market
needs the use of marketing strategy is also significant to consider from the management.
Appropriate pricing of products and services also need to refer because it advances the
opportunities for business. As per the view of Rahimnia and Hassanzadeh (2013), promotional
and marketing strategies are integral part of business especially in hospitality sector where
company faces high level of competition. By having use of diverse marketing methods the
business firm can easily create awareness within market. Hospitality enterprises are having a use
of diverse promotional tools in order to meet objectives. In addition to this, it can be stated that
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by having application of diverse methods the products and services can be promoted effectively
in the market. Innovation is also needed to be refer effectively because it helps in meeting key
goals and objectives.
Proposed plan for analysis
Research analysis is referred as part of study which allows to understand the path in order
to attain better outcomes. It helps in meeting the goals by having better results in regard to
subject. However, current plan is planned in regard to factors like international marketing,
human resource management and strategic management (Huang and Sarigöllü, 2014). In addition
to this, diverse models are being taken into account such as 7P's Matrix, strategic human capital
planning and swot analysis.
Problem statement for international marketing
Every business firm is focused towards application of marketing strategies in order to
gain competitive advantage. It helps in advancement of market share so that better opportunities
can be attained. In addition to this, it can be stated that marketing mix can be employed by firm.
It means there are key seven factors which need to be evaluated in context to Eleganzia Group.
Seven P's of marketing are classified as product, price, place, promotion, physical evidence,
people and process (Hanssens and et.al., 2014). It has been witnessed that use of such tool allows
to have better marketing of company so that more customers can be attracted. With an assistance
of this, marketing strategy evaluation can also be taken into account so that overall effectiveness
can be strengthen in desired manner.
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Problem statement for human resource management
HR is considered as one of most critical aspect for every organisation because it helps in
meeting the success standards. In order to have continuous improvement in the work style the
management of Eleganzia Group also need to focus on models of human resource like strategic
human capital planning. In addition to this, it can be stated that strategic human resource
planning is tool that provides a detail about concerned authority. With an assistance of this, the
manpower management planning can be taken into account. In order to have effective
consideration of human capital planning the management need to focus of employees, gape
among members and investment (Jones and et.al., 2016). By having an improved focus on such
aspects the human capital planning can be accomplished in desired manner. In addition to this, it
can be stated that HRP of Eleganzia Group need to be evaluated in appropriate manner. With an
assistance of this, companies can have effective determination of employees and their needs. It
means work management can be advanced effectively by having consideration of such values. It
also assists in identification of gapes and priorities so that better actions can taken into account.
It improves the planning of organisation and ensure that competitive advantage over rivals can be
attained effectively.
Problem statement for strategic management
Strategic aspects also need to be referred by management because it helps in dealing with
conflict situation. In addition to this, reflection of Swot analysis in regard to Eleganzia Group
need to be considered. With an assistance of this, organisational strength, weakness,
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opportunities and threats can be analysed effectively. It means Swot analysis need to consider
analysis as a tool which offer better idea about environmental values. It allows to have better
formation of strategies so that goals and objectives can be accomplished in desired manner
(Legrand, Sloan and Chen, 2016).
Sources of data
In addition to this, objectives accomplishment can be taken into account by having an
application of diverse sources. It has been noticed that sources of data can be classified as data
collection, analysis, reliability, validity, etc. Present investigation provides a detail information
about qualitative data for gathering of information and meeting key goals and objectives. It has
been noticed that data collection is being accomplished with a help of diverse secondary sources
such as books, journals, magazines, online articles, etc (Boella and Goss-Turner, 2013). It
provides authentic research outcomes so that framed objectives can be meet effectively. Data
analysis is considered as qualitative data method which allows to have effective interpretation of
data. In this, different models are being used to attain the fruitful results. It is a method which is
mainly considered for attaining results on the basis of several themes.
In order to conduct the appropriate research, information reliability and validity will be
referred effectively from the experts. It is necessary to ensure that efforts are being entailed
without any kind of biasness because it helps in attaining reliable information. Moreover,
validity provides a support to authentication of data. In order to ensure about such aspects the
business firm is well focused towards copyright and trademark. The researcher assured the
participants that in no case will the identifying information be made available to anyone who is
not directly involved in the study (Liu andet.al., 2014). By following the principles of
anonymity, researcher ensured that the participants remain anonymous throughout the study.
With an assistance of ethical values the key measures are being taken into account effectively so
that objectives can be attained effectively. Along with this, permission to access the significant
information for the study is also being referred effectively from the management. It helps in
gaining better information about the data so that better outcomes can be attained. Research
limitations is also critical which need to be referred effectively from the management. Research
is referred as lengthy procedure because number of secondary data is being need to accessed in
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limited time period. In addition to this, it can be stated that limitations in regard to such aspects
might affect the overall outcome effectiveness (Sparrow and Otaye-Ebede, 2014.).
ANALYSIS AND FINDINGS
This section will analyze and evaluates the data and information collected from either of
primary or secondary data source to get better decisions for deriving success in the future period.
In this section, detailed analysis will be made to determine the current position & performance of
the Eleganzia Group. Thorough analysis will help to identify the main issues and threats faced by
the group, so that, appropriate decisions can be made to support business growth & success.
7 P’s Matrix
This model will help to determine the marketing elements or components of Eleganzia
Group to improve their competitive advantages & strategic capabilities, narrated here as under:
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Product: Eleganzia Group offers luxury hotel & restaurant services to the people to
cater their needs and demands. It has number of 3-star, 4-star and 5-star hotels to accommodate
people. Its 5-star hotels, villas, bungalows are the superb quality of accommodation where
consumers feel a luxurious travelling experience. In the cited case study, it has been stated that
Forte Village’s renowned destination fully satisfied the VIP guests, players, models and film
stars as well. Moreover, when guests enter to the hotel, they are excellently welcomed and
greeted by the staff and escorted on electric cars and high-yielding individuals are provided with
the fruits & wine in their rooms (Harrison and Hall, 2016). Its personalized, friendly &
traditional Italian based hospitality services following integrity and respect for the entire
consumer provides great pleasures and satisfaction to the users. It also offers unique and trendy
experience to the consumers through food & beverages (F&B) & leisure and sport facilities. Its
quality of the goods and services can be evident by the word of Walt Disney’s CEO, as just after
one hour of visiting, he said that Forte Village can be said as Minnie’s cruise ship and world’s
second leading resort after Disney (Boone and Kurtz, 2013). He said that only 1% of the guests
depart from the resort during their stay and even audience do not leave their room and spend a
luxury experience. Thus, superb, innovative, creative & unique quality of service offering is the
central key pillar of its success.
Price: The main problem that Forte Village is facing in the stated case is to build an
effective pricing strategy. Under the situational analysis, it offered 4-star and 5-star hotels and
sell the rooms at half board packages (HB) inclusive of dinner& breakfast. However, for other
additional services like tennis, soccer ball, bowling Rugby Academy, Spa, extra F&B, it charge
extra monetary consideration. However, in order to get rid of crisis, with the decline in sales
revenues from 74 to 66.1 Euro million, Giannuzzi has decided to increase price by 7% on 5-star
hotel and 2% on four-star rooms so as to maximize occupancy rate. However, for the conference
& incentive (C&I), it dropped down the prices because they bring larger business to the hotel. As
a result, even with the inflated price, hotel was unable to accommodate all the clients at the end
of July hence decided to upgrade 4-star hotels into 5-star hotels (Pfoertner and et.al., 2014).
Place: They offer services to the audiences through their number of resorts in Italy to
serve consumers optimally. Moreover, its logistic supply chain operations include delivery of
services through the traveling agencies and tour agents. It also offer convenience in the booking
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system to the audiences through their Global Distribution System (GDS), in which, services are
delivered through telephonic calls and online through official website. Thus, it seems clear that
distribution channel of the Eleganzia Group is pro-active & indirect.
Promotion: In order to promote the success of the Forte Village, it regularly connects
with the consumers through newsletters with the promotional plan like free entrance for spa.
Recent investment also improved word of mouth publicity for the Forte College (Brooksbank,
2009). In addition to this, attractive brochure & co-marketing practices proven as an effective
tool of promoting to boost sales and market share. In such respect, partnership with the
Centurion and a credit card holding company, American Express proven as an essential tool to
invite high number of guests at Forte Village. Apart from this, newspaper advertisement in II
Sole 24 Ore, media marketing, mass communication channel, online advertisement, social-media
marketing practices, Customer Relationship Management (CRM) Software targeted crowded
audiences.
People: Well-trained, excellent, devoted and exceptionally talented people deliver best
quality of services to the consumers at Forte Village. They behave friendly with the audience for
the better engagement with the clients. They deliver services exactly as per the need of the
clients evidenced from the real example, a visitor wanted to merge two suites at Forte Village, on
an immediate action within just two hours, hotel pulled down its wall and created a double suit.
Moreover, they also arranged helicopters just on client choice for a very short distance which
took around only 45 minutes by car ride (Cox and Yang, 2007). People are very loyal towards
their clients, highly committed towards their job and providing a strong sense of belongingness
to the audience. In addition, employees of F&B also receive special training to improve their
productivity, talent & competencies level. Further, qualified & talented sales & marketing team
is enough able to attract consumers to promote and boost sales.
Process: Forte College maintained its operations effectively through the compliance with
the rules, regulations and operational procedures decided by the general manager, Giannuzzi.
Proper control, regular monitoring by the heads of the departments helps to smoothen the
operations without any problems.
Physical evidence: Its effective inventory management policies and warehousing
strategy enable Eleganzia Group to tailor their audience needs and demands optimally. Proper
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arrangement in the hotel rooms with all the luxury services, food & beverage management, well-
maintained conference events, sport facilities & others helps to deliver services on right time to
satisfy users.
SWOT model
Strengths: Excellent quality: The key pillar behind the success of the hotel is its superior quality
accommodation & restaurant services through luxurious hotels & resorts. It helps to
provide the exceptional luxurious feeling to the audiences, and gain close attention of the
audiences. Innovation: It is another key pillar and strength behind the success of the Forte College.
Its sales & marketing team paid special attention on the continuous innovation to cope up
with the changing market conditions and improve competitiveness. In 2009, it
transformed mini-club into Children’s city to serve special guests & younger children
(Dibb and Carrigan, 2013). Moreover, co-branding also proven as an innovation in which
a well-known brand integrate several activities evidencing, in 2009, tennis player, Patrick
Cash was invited at the resort to boost sales. Further, GDS & CRM strategies are proven
as best tools for deriving success in the market. Superb managerial team: Giannuzzi being a General Manager effectively handled the
operations and also consider the feedbacks from the clients to make better steps for
accomplishing success. Its sales and marketing director, Sansone also developed
wonderful & unique marketing ideas to promote and attract higher number of visitors to
the hotel. Brainstorming sessions in the team encouraged manager to establish a long-
lasting relationship with the clients through new ideas. F&B’s director, Marco Tiraferri
served VIP guests with the best quality of test to satisfy their needs. Acquisition strategy: Recent acquisition of Castel Monastero in Tuscan helped to attract
UK & US visitors to a great extent. Moreover, it acquire La Maddalena Hotel & Yacht
Club and Eden Hotel in Rome also at a dropped down price of 100 Euro million.
Weaknesses: Ineffective pricing mechanism: From the case study analysis, it has been viewed that
Forte Village’s pricing policy was not effective, more importantly, during the period of
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recession, it caused negative impact to the business. Before recession, they charged HB
package price and extra charges for special services, however, during recession, prices
has been increased but at the delivery of services at free of cost. Thus, there was no
standard pricing mechanism followed by the Eleganzia Group (Dibb and Simkin, 2012). High wages: Group incurred heavy cost on their marketing practices to attract greater
number of visitors and boost sales. To attain this, they hire talented sales & marketing
team at demanded wages. Resort spend 4.5 Euro million on marketing & promotion, out
of which 1.5 Euro million spent just to pay wages to the marketing staff which was
extremely expensive resulted in less yield. Decline in revenues: During recession, its sales revenues dropped down from 74 to 66.1
Euro million due to changing buying pattern of the consumers and ineffective operational
policies.
Opportunities: Merger & acquisition: Eleganzia Group can acquire other leading hotel chains to expand
their business at wider geographical area resulted in greater sales & market share as well.
It will definitely assist firm to maximize their competitive position to defeat rivalries and
survive successfully (Doole and Lowe, 2008). Technological advancement: Innovation through website marketing, online
communication network through latest web 2.0 technologies will be of great importance
for the Eleganzia Group to strengthen their competitiveness (Babin and Zikmund, 2015). Expansion strategies Eleganzia Group can diversify their operations through opening
more 4-star and 5-star hotels across the world. Online customer reservation is really
important to expand operations overseas at various destinations.
Threats: Tough competition: It faces immense level of competitive pressure from the leading
hoteliers like Starwood, Marriott & Hilton Hotel & Resorts. Thus, it is the main threats
exist in the front of organization which can lead to cause hurdles to the Eleganzia Group.
 Change in people preferences: Frequent change in people’s attitude, preferences &
customer choices may bring difficulties for the corporation to satisfy users. As during
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recession, it has been noticed that change in buyer’s buying pattern and behavior resulted
sales performance downward (Fifield, 2012).
Strategic human capital planning
Being a service sector, the success of the hospitality business majorly depends upon the
satisfaction level of the consumers. With referenced to the cited case study of Eleganzia Group,
its strategic human capital planning model has been applied here for the analysis of workforce
planning & talent management, as follows:
(Source: )
Under the HR planning framework, Eleganzia Group paid special attention to hiring
talented, passionate & dedicated employees in the organization. They recruit number of workers
in sales, catering, marketing, production & other departments. For this, HR professional initially
determine the workforce requirement and recruit required number of employees in the business.
Online application, telephonic and Face to Face interviews are conducted to hire the best talented
member who will be able to render standard quality services to the audiences. However, it also
organizes special training for their staff of F&B departments to enhance their competency level.
Further, it also sent several employees abroad to learn new languages under various enrollment
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programs. In 2008, 150 workers have been sent abroad by Eleganzia Group under 11 month
course in five-star hotel. Building strong sense of belongingness with the workers provide them
pride feeling by working in Forte Village (Hollensen, 2015). In order to satisfy employees,
Eleganzia Group also organizes monthly parties, trips and bonuses as well for their outstanding
& exceptional efforts contributed (Allen, Todd and Alting, 2009). In addition, management team
also involves their personnel and invites suggestions, choices & ideas for the potential growth
and advancement. It strengthen the relationship with the employees, as a result, they wish to
work for a long period evidencing many of the personnel completed a long-journey of 25 years
in Eleganzia Group. It make staff loyal and extremely satisfied, as a result, they deliver best
services to the target people.
Growth strategy matrix
In order to attain the better edge over competitors the management of Eleganzia Group is
also focused towards growth matrix. In diverse factors are being considered by management such
as development, diversification, penetration and product development. In addition to this, it can
be said that by having an improved focus on market development the business firm is well
focused towards market consolidation. It helps in make sure that managers are having
appropriate growth by having focus on development of existing and new products. Company can
also have impressive level of success of by having launch of nee products in the new market but
conditions need to be analysed effectively. It helps business firm to meet standards of strategic
development. Therefore, an organization can use these strategies as the element of strategic
planning procedure of the company or organization. Company also consider differentiation in the
strategic decisions so that goals and objectives can be accomplished effectively.
Value chain analysis
Value chain is considered as a group of activities which helps in meeting the needs of
organisation. It allows business firm to focus on specific service or product so that better value
can be offered to operational activities. Value chain model also provides a cost efficiency to the
business entity which helps in meeting key goals and objectives. By having an improved focus
on decrease in cost the competitive advantage can be gained effectively. Value chain analysis of
company is composed by having combination of different activities. Transformational aspects
are being referred effectively in order to meet the objectives of Eleganzia Group.
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Red ocean strategy
It has been noticed that management of Eleganzia Group is having effective focus on the
red ocean strategy for sustainable development. In addition to this, company is focused towards
development of existing market space. In such aspects the business firm is having exploitation of
existing demand so that long term sustainability can be advanced in desired manner. Improved
focus on the making of values by having cost trade off the issues can be overcome in desired
manner. Align the whole system of an organization’s activities with its strategic choice of low
cost and differentiation is also beneficial for the resort to have sustainable development.
Blue ocean strategy
In this, management of Eleganzia Group is focused towards creation of uncontested
market space so that long term sustainability can be boosted. Along with this, irrelevant
competition within organisation is also significant to consider so that goals and objectives can be
accomplished effectively. With an assistance of this approach the management of Eleganzia
Group focuses on creating and capturing new demand. It allows to meet sustainable values and
ensure that cost and other factors are well managed. In this, management focuses on the low cost
and product differentiation so that long term opportunities can be attained effectively. It means
by having an improved focus on differentiation the management can easily enter into new
market. Blue ocean is beneficial to ensure that opportunities are being advanced for the business.
Porter five force
It has been noticed that threat of new entrants is very low for the Eleganzia Group
because resort business demands high investment which is critical task for organisations. In
addition to this, changes in buyers attitude might impact the overall outcome in desired manner.
If customers needs are not satisfied then it is necessary for business firm to have changes in the
organisation. On the other side, the suppliers bargaining power is very low because there are
number of suppliers in the market who provide same kind of services in the market. If suppliers
are not meeting quality standards then company can switch to another supplier for improvement
in services. Moreover, competition level is very high in the market because number of companies
like Hilton, Marriott are operating business in the same market. It creates issues for the company
which need to be referred effectively from management.
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Belbin's roles
In addition to this, it can be stated that Belbin team roles are also being considered by the
management of Eleganzia Group. It has been noticed that shapers focuses on providing guidance
so that work can be shaped to correct decision. Finisher is also considered as critical aspect
which allows to ensure that key activities are being finished in desired manner to meet
objectives. Along with this, monitoring and implementation of activities is also being referred
effectively from the management of Eleganzia Group so that better opportunities can be attained
effectively.
PROPOSED SOLUTION
In order to have effective development of organisation the management need to focus on
diverse aspects effectively. From the above analysis, it has been noticed that there are various
functional aspects which are associated with Eleganzia Group. Number of issues are being
identified which impacts the overall business. In addition to this, it can be stated that one of
critical issue that business firm faces is regarding economic transform. It has been noticed that
any kind of changes in economic situation influences the overall outcome. Due to high ratio of
inflation the issues are being faced by the company. Customers prefer not to invest more on
hospitality and leisure activities at the time of economic crises. It is one of key reason that
business firm was forced to sale rooms at the half of prices. It has influenced pricing model of
company so management need to consider effectively.
Employees are also facing issues in context to communication because they are not well
aware of Italian language. It means language barrier impacts the overall outcome in diverse
manner. It clearly indicates that management of Eleganzia Group need to focus on programs
which allows to overcome such kind of issues. However, it has been noticed that overall
outcome of business firm is also advanced due to diverse initiatives. By having an application of
methods like changes in marketing strategies is beneficial to advance opportunities. Unexpected
demands of customers is also affecting business in diverse manner. It has been noticed that such
aspects also influences the overall costing. However, lack of promotional approaches is not
helping the course of company and it is becoming one of major weaknesses.
Solution and recommendation
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It has been noticed that for better opportunities in the market the business firm need to
focus on diverse aspects. As pricing is one of key problem for the company so management can
focus on research activities so that economic values can be measured on daily basis. By having
an improved focus on such activities the better strategies can be framed. Along with this, use of
ansoff matrix also need to be consider so that overall opportunities can be advanced. Moreover,
awareness about pricing strategies is also needed to be promoted so that goals and objectives can
be accomplished effectively. By having a trending marketing approaches the management of
Eleganzia Group can easily minimize the issues.
In order to have better opportunities in the market the business firm need to analyse the
competitors pricing so that better strategies can be framed in order to gain competitive
advantage. Along with this, application of value based pricing the issue can be addressed in
desired manner. With an assistance of such values the conflict situation can be measured
effectively in order to meet goals and objectives. Value-based pricing is especially appropriate
for highly differentiated products. It means the selection of strategy is beneficial for the
organisation to consider effectively. Along with this, number of workshops also need to be
organised in order to overcome issues. With an assistance of this, human resource issues can be
addressed effectively. By having an application of such aspects the business firm can easily meet
the opportunities and lead business to impressive success.
In addition to this, changes in marketing mix is also beneficial for business entity because
it helps in improving overall process. With an assistance of this, business can be promoted
effectively and ensure that key aspects are well maintained. Use of social media tools and digital
marketing aspects is also advantageous for company to consider because it helps in meeting key
goals and objectives. It allows to gain better competitive advantage because improvement in
marketing tools application is significant. It is one of the most common problem faced by any
organization within the hospitality industry. If occupancy rates are low, then profits and revenues
also become lesser. In this respect, marketing management can be referred as key aspect so that
number of room occupancy can be advanced. By having an application of such values the issues
can be overcome and ensure that key goals and objectives can be accomplished. Company can
also use its strength to overcome its weakness. With an assistance of this, long term opportunities
22

can be attained effectively. Moreover, innovation is services can also attract more customers so
that long term opportunities can be advanced in desired manner.
23

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