International Hospitality Management Consultancy Project Report

This project report provides a comprehensive analysis of managerial challenges within the hospitality sector, focusing on the Bedford Hotel (Holiday Inn Brighton). It critically examines various management theories and their application to industry-specific issues, emphasizing strategic planning and decision-making. The report identifies challenges such as labor shortages, rising construction costs, demographic shifts, travel restrictions, operational expenses, technological advancements, and competitive pressures. It proposes strategies to address these challenges, including improving employee satisfaction, managing construction costs effectively, adapting to changing consumer needs, and optimizing operational efficiency. The project concludes with a strategic plan aimed at enhancing the Bedford Hotel's competitive position and overall performance. Desklib offers a variety of solved assignments and resources for students.

INTERNATIONAL HOSPITALITY MANAGEMENT
CONSULTANCY PROJECT
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Table of Contents
Introduction......................................................................................................................................3
1. Identify the causes and effects of a range of managerial challenges within the Hospitality
sector (use the organization)............................................................................................................4
2. Critically analyse management theory, analyse and interpret a variety of complex industry-
specific managerial issues and problems.......................................................................................10
3. Exercise initiative and take responsibility for the outcomes of their decision, or proposed
actions, and to evaluate the impact of these outcomes in a real-life context.................................16
4. Develop, apply and practice a range of professional competencies in the development of
management decision making and strategic planning...................................................................19
5. Present a strategic plan in professional oral and written formats..............................................22
Conclusion.....................................................................................................................................27
References......................................................................................................................................28
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Introduction
Different components have been used by the hospitality industries to manage its operations.
Management of hospitality is the element of the service industry that brings in more money and
placement opportunities for the people. The managers of the hospitality industry are educated in
customer service, human resource and business. They give an exceptional experience by
coordinating their guests and staff members. Several conventional and modern management
theories have been used by the hospitality industries.
The chosen organization for the report is a Bedford hotel which is situated on the waterfront in
Brighton, London. After becoming a component of the holiday tavern business, it has been
renamed as the Holiday Inn Brighton. With over 40 years of establishment, it served millions of
people in United Kingdom. Different management theories and principles have been explained
and critically analyzed in the project to plan a strategic plan for the organization.
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1. Identify the causes and effects of a range of managerial challenges within the Hospitality
sector (use the organization)
The industry of hospitality requires constituents from diverse conventional management theories
as well as finest practices based on the experience of industries. Various management theories
and practices by various theorists have been implemented by various hotels to manage their
operations. The hospitality management sector improved the productivity of employees together
with elevated quality (Walker and Walker 2016). The main focus of the Bedford hotels is to take
care of its customers. There are different hospitality managers in the Bedford hotels to convene
and go beyond the expectations of their guests by serving them high quality service. A
significant component of Bedford hotels is outstanding consumer services because it is the point
of creating a long lasting impression of their hotels on them. Tangible as well as intangible
services are provided to the consumers by them to make their travel extravagant and memorable.
Irrespective of the services performed by the hospitality management, there are several
challenges which are faced by the hospitality sector.
Due to huge number of staffs, managers, guests and so on, there are major challenges which are
faced by the Bedford hotels because of large man force. The industry of hospitality is a highly
manual labor exhaustive industry which requires working in harsh environment. The
environment of work within Bedford hotels includes generally long hours of working, repetitive
work, low control, unpredicted communications with guests, evening and night work and so on.
There are also problems with coordination of work since the work space of the hotel is large.
Various reports on hospitality industries determine the high stress level of the people working in
the hospitality sector (Van der Wagen and Goonetilleke 2015)
The managerial challenges and their causes and effects within the hospitality industries with
relation to Bedford hotels are as follows-
 Shortage of labor and skills- The main concern of Bedford hotels is magnetizing and
retaining a group of qualified workers. Different innovative strategies have been planned
by the professional to attract a team of skilled and talented workers. The man force
requirement in the hospitality sector is large due to which Bedford hotels require a large
team to interact and serve their guests. The different issues which contribute to the global
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challenge in the hospitality industries are low satisfaction of workers, low pay,
unfavorable environment long working hours and so on. The causes and their effects can
be elaborated as-
 Low satisfaction of workers- Since it is a universal rule that every person can’t be
satisfied. Every hospitality sectors fails to satisfy their workers who are the main
service providers to their consumers (Morden 2017). It is important for the hotels
to give their workers a favorable and stress free work environment. The
environment which includes long working hours with low wage rates basically
hampers the necessity of an employee.
 Lagging rate of wages- The wages provided to the employees may not satisfy
their basic requirements which in turn may lead to the reason of leaving their jobs.
The skill of workers also plays a vital role in determining their wages in the
policy of wages of Bedford hotels. The higher the skill and talent, higher are the
wages.
 Reputation of industries- The hospitality sector has not gained so much
prominence in the world. It has not earned enough reputation to come in top
career choices of students.
 Cost of construction- A large work space is involved in the hospitality sector, therefore
the cost of constructing and furnishing the work place involves high cost. The Bedford
hotel has a large working space and the cost involved in furnishing and constructing it is
also soaring. The building of the hotel impacts a consumer’s preference, therefore the
building should be eye pleasing which can attract and retain large number of guests. The
impact of high cost on constructions lead to the rise in price of the hotels which are
payable by the guests. The following strategies may be developed by the professionals to
make the effective use of construction costs-
 Evaluate the specifications of materials carefully to ensure that the materials
which are cost effective are used in the construction process.
 Ensure that the professionals equipped with the constructing process are highly
talented.
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 Ensure that the maximum area is used by them for maximum revenue
generation.
 Demographics change and its impact on trends of travel- Different groups of people are
served by the hospitality sector. The needs and expectations of all the consumers vary
according to their taste and preferences. The ongoing and recent changes in the
environment of demographics hold most important implications for the industry of
hospitality. The Bedford hotel needs to create and implement a strategy to address the
needs, desires and wants of the multi generations. The hoteliers should offer amenities
and designs to outfit to the needs of the diverse group of customers (Kandampully and et
al., 2015). The approaches which can be used by Bedford hotels to cater to the needs of
changing needs of consumers can be summarized as follows-
 The design adopted universally should include bright lights, lower beds, and
large space that are comfortable to the users.
 Different package tours which offer alternative choices to the groups of people
should be provided, to give them the best attractive and appealing experience.
 Modern and updated technology should be used by the hoteliers to satisfy their
consumer expectations.
 Honest feedback should be given to the consumers about the products and
services offered by the sector
 Travel consent restrictions- There are a lot of restrictions which are imposed on the
travelers to travel around the globe. Different kinds of permissions are required to move
from one country to another like work permits and visas. These security measures have
been implemented due to several terrorism attacks. The previous attacks were basically
on some architectures and hotels. It is necessary to restrict people coming from different
countries for the safety measures. The various strategies adopted by Bedford hotels for
their protection are as follows-
 Facial recognition
 Fingerprint readers
 Biometrics
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 Optical scans
 Verification of passports
 Cost of operations- The cost of operations is one of the major components which hinder
the functioning of the hotel industries. Different obligations such as penalties, taxes, staff
costs and so on constitute to be the operating costs for the hospitality sector. There is an
emerging challenge for the industries to balance their profits with the operating costs (Liu
and Atuahene-Gima 2018) The job of balancing the operating cost of Bedford hotels
should be on capable hands to minimize its costs. The different strategies which can be
adopted to control the cost of operations are as follows-
 Compliance with rules and regulations
 Low staff costs
 Minimized cost for customary activities
 Efficient use of resources
 Technology- To maximize their revenues, the hospitality industries needs to maintain and
upgrade as per the latest developments. The industries which do not adapt as per the latest
technology generally declines in the long run. Many of the properties of Bedford do not
take the benefit of advanced technology to maximize their returns (Lee and et al., 2017).
This is the reason why the outsourcing function is required by the hotel industries to
manage their major tasks. The significant factors which are involved are as follows-
 Different systems are required by the hotel industries to manage the complexity
of the hotel environment.
 Lack of awareness is also a major factor
 Difficulty regarding knowledge of technical experts
 Competitive environment- Since there is a huge growth in the hospitality industry, the
competition has also mounted. The managerial tension arises because of the expansion in
hotel industries. The profit element involved is high in the hospitality industries so it
attracts a large number of businessmen towards them. This creates an environment of
competition. The profit level of Bedford hotel gets down due to increased competition.
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The Bedford hotel tries to give best quality of products and services to attract and retain
large number of consumers. The culture of foodie peoples has a huge impact on the hotel
industries. The strategies which can be espoused to avoid the managerial issues are as
follows-
 Better consumer relationship
 Better quality of products and services
 Superior environment
 Low costs of operations
 Compliance with rules and regulations
 Production process amounts to large quantity of waste- The hospitality sectors involve a
large amount of production processes. Large man force is involved which amounts in
large wastage of raw materials used. The lack of coordination between staffs may be an
important cause of wastage. Bedford hotel tries to minimize the amount of waste
generated in the production process. But total elimination of waste is not possible, some
strategies may be implemented the Bedford hotel. The approaches towards waste
minimization are as follows-
 Utilization of resources
 Trained staffs
 Coordination between staffs
 Friendly environment
 Attracting and retaining valued customers- The major concern of Bedford hotel is
attracting loyal customers towards them due to intense competition (Hill and Alexander
2017). The quality of products and services served to the consumers should be high to
retain their customers. Bedford hotels try to give best services to their customers’ despite
of several challenges faced by them. The various approaches adopted by Bedford hotel to
attract customers towards them are as follows-
 Better quality services
 Several discount packages to loyal customers
 Better environment
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 Additional facilities to regular customers
 Availability of capital- There are several factors which affect the timings, availability and
amount of the capital. Since the hospitality industry involves a large amount of capital,
various sources have been used to accumulate it. Bedford hotel finance its operation from
several sources to meet its expenses which leads to high capital cost (Karatepe and
Karadas 2015). To minimize the cost of capital, it is necessary for the hospitality sector to
finance from the best sources. The approaches which can be implemented by Bedford’s
to minimize the challenge of high requirement of capital can be as follows-
 Financing from low cost sources
 Utilization of capital by best means
 Efficient capital flow
 Employee theft-Many organizations suffers a major loss by employee thefts. The process
of recruitment of employee should be tightened so as to minimize the amount of theft by
them. Proper elimination is not possible due to large workforce and every person cannot
be questioned by the hotel managers. Proper training should be given to employees to
cultivate moral values in them. Bedford hotel tries to give adequate training to their
employees. The various methods which can be used by Bedford hotels to minimize the
theft of employees are as follows-
 Proper training program
 Employee developments
 Cultivating their moral values
 Adequate working facilities
By considering the above factors, the managerial challenges can be overcome by the
Bedford hotels. The causes and effects of each issue should be analyzed properly to
understand the overall environment of the hospitality industry. Various management
programmes on hotel industries can also help the Bedford hotel to learn the management
practices.
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2. Critically analyse management theory, analyse and interpret a variety of complex
industry- specific managerial issues and problems.
Hospitality encompasses a wide variety of actions ranging from accommodations to dining. It
includes the entertainment part too. The hospitality management has the task to oversee the
administrative duty. It has to ensure that the hotel is adhering to the rules and regulations of the
state. The manger should have a knack to entertain the guest and provide them satisfaction which
is required for them. There are a range of management theories for the industry:
Authoritarian, Democratic and Laissez Faire Leadership
In authoritarian leadership all the decision is taken by the top management and the
subordinates have no control and decision making power in the organisation. The policies,
procedures, goals and objectives all is set by the management. The employees just need to follow
it. They do not have a say in the operations of the business (Bertsch et al., 2017). The leaders of
the organisation take the decision independently without any discussion with the other
employees working. The authoritarian leadership is beneficial when the decision is to be taken
urgently. With the discussions the decision is delayed. In a hotel industry where the guests are
given the utmost importance, there cannot be any negligence in executing the duties.
Authoritarian leadership will be desirable in the Bedford Hotels when the decision of throwing or
making someone leave the hotel premises because of the misconduct. The leader has the
authority to take the decision without channeling a meeting.
Democratic Leadership is the exact opposite of the autocratic leadership. In this the
management wants to share the responsibilities and decision making power with the other
employees in the industry. In a hotel industry, where a lot of employees are working there is a
need of decentralization of authority as all the decision cannot be taken by the top managers
(Khuong and Hoang, 2015). For example, when, the decision of employing more staff for a
specific event. Bedford hotel is taken into consideration this is not a decision which needs the
guidance of the top management. The top management is not needed for the everyday thing. In
democratic leadership the opinions is discussed and given importance to. It gains the employees
confidence in the organization and makes them feel a part of the organisation.
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Laissez-Faire Leadership is well known as delegative leadership. In this the leaders let the
group members to take the decision and do not interfere in that. It turns over the control to the
other team members (Kalargyrou and Costen 2017). In this the employees need to be self-
motivated as they have to solve the problems that arise in the decision making process. It has
little use in the hotel industry as it leads to low productivity of the group members.
Herzberg’s hygiene and motivational theory
The theory was given by Fredrick Herzberg and his colleagues. They have examined that there
are goals that are needed to be achieved and some are undesirable which should be avoided. It
has revealed that there are some characteristics that are needed when a job is taken which would
provide the satisfaction and some factors are associated with dissatisfaction (De Vito et al.,
2018). It is divided into two set which are:
Maintenance or hygiene factor- There are an approximate of ten factors which are not in built
in the job characteristics but is very much related for the performance of the job. Factors such as,
interpersonal relations, working conditions, company policies, statuses etc. are essential for the
motivation (Holston-Okae and Mushi 2018). It is defined as the physiological needs that the
employees want. In the hotel industry a need of structured pay and security of the job is given the
utmost importance.
Motivational factor – The factors do have a positive impact on the functionality of the
employees in the business. It has been stated by Herzberg that the hygiene factors cannot be
considered as the motivational factors (Yeboah, and Abdulai, 2016). The motivational factors
have to yield a positive satisfaction to the employees. The factors are recognition, achievement,
responsibility, growth, advancement, etc. When there is an increase in these factors it results in
positive satisfaction level in the employees’ performance. It has been sated that these will
increase the satisfaction but it will not affect the satisfaction when the factors decrease.
It has always been discussed and examined that the dissatisfaction is eliminated when the work
matches the skill set of the employees and create a peaceful working environment to indulge in.
Maslow Hierarchy of Needs
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Maslow’s hierarchy of needs is a theory of motivation in the field of psychology which
comprises of five levels of the human needs. It has always been stated that there are certain needs
which are to be conceived first than the others (Lee et al., 2015). The basic need of any
organisation or person is to survive in the business or economy.
According to Maslow, the individuals first have to satisfy the low level needs before proceeding
to the higher level. It has been clarified that is not all or none process. The false expression of
that there need to be hundred percent satisfactions is dismissed. It have been clearly assessed that
when the need is more or less met, it will go up to the next level. The growth continues and with
every step it becomes stronger. The hierarchy of the five stage model is:
Physiological needs- The biological necessity for the survival in the world, i.e. air, water, food,
shelter, sleep, clothing, etc. So these are to be satisfied or rendered firstly before any other
conditions. It is by these conditions a normal body can function in the world. It is always been
regarded that that physiological needs are the most important to be met.
Safety needs- the needs for protection, security, law and order, stability in life, freedom, etc. are
to be fulfilled after the physiological needs. When a person is secured it has the ability to
perform its best for the business. The job safety, family security develops the person to perform
and execute its duties in a more simple way.
Love and belongingness needs- The social needs a person has the feeling of belongingness to a
place and environment. For the employees working in the hotel industry when they feel that the
other employees appreciate the work and they develop a friendship it gives them the sense of
affection. The need of relation motivates the employees to work hard and be more dedicated
towards work.
Esteem needs- they are of two type’s internal and external esteems. Internal esteems are self-
respect, confidence, competence and achievement. The external esteems are recognition, status,
power and attention (Moradi et al., 2015). Maslow has indicated that the need of respect and
appreciation in the workplace is the most significant things that are needed to be catered. When
the employees are given the dignity for their job they are motivated to work hard.
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