MGMT20143 - Idea Generation: Enhancing Hospitality Business Model

This report assesses the feasibility of new business ideas for the hospitality industry, specifically focusing on the addition of services such as spas, bars, and restaurants to enhance customer satisfaction and increase revenue. It addresses customer and market challenges like globalization and changing customer needs, proposing a business model that leverages key partnerships, resources, and activities. The report identifies critical success factors, including service quality and workforce experience, and evaluates the financial and technical feasibility of implementing the proposed changes. This analysis aims to provide a comprehensive overview of the potential benefits and challenges associated with innovating within the hospitality sector.

Assessment 2 – Idea Generation
MGMT20143 - (HT1, 2018) THINK BIG
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Table of Contents
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................4
Q1. Effective explanation of the customer/market problem that needs solving and/or the
reason the innovation is required.................................................................................................5
Q2. Persuasive argument of the benefits to be generated by the idea.........................................6
Q3. Discussion of the proposed business model.........................................................................7
Q4. Critical success factors to be managed during execution of the idea...................................8
Q5. Evaluation of the feasibility of the idea..............................................................................10
Conclusion.....................................................................................................................................11
Appendices....................................................................................................................................12
References......................................................................................................................................14
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Executive Summary
The idea generation is that business process which requires creativeness so that organisation can
improve its current business performance and lead to next level of success as well as growth.
There are various small, large and multinational organisations which generate new ideas when
they have to deal with some kind of customer or market problems such as globalisation,
changing customer needs, uncertainties and so on. The current report would be based on new
business idea which will help hospitality industry in maximising its market share and increasing
sales revenue. Hospitality comes under service sector which provides accommodation services as
its major product. But for dealing with market competition, changing customer needs and other
problems hotel organisation have to take help of new business ideas by which it can innovate
some new services within its workplace.
The additional services like spa, bars, restaurants, cafes, swinging pool and casino can add extra
value in hotel organisation. Before implementing this business idea, organisation has to analyse
benefits of ideas and critical success factor which will help it in executing its business idea. By
taking help of feasibility evaluation, business enterprise cans easily determining that if it is worth
investing in new idea or not.
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Introduction
All business enterprises operate their daily operations in some different ways. Some organisation
takes help of idea generation process so that they can figure out what is good and what is bad for
company. In simple words, procedure of idea generation helps business enterprise in figuring out
creative ideas which can help it in resolving some particular market and customer problems. The
current assignment would explain some customer and market problems which can be removed
by implementing new business idea of providing additional services. Also, it will include
possible benefits of generated idea. Apart from this, the report will evaluate the feasibility of
idea, proposed business model and critical success factors which will be managed during
execution of business idea.
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Q1. Effective explanation of the customer/market problem that needs solving and/or the
reason the innovation is required
The hospitality industry is one of the rapidly growing sectors which provide various growth
opportunities to other business. The major idea for Hotel companies is that it should involve
some other services like spa, swimming pool and restaurants within its work so that it can
provide better customer satisfaction (Fujita & Thisse, 2013). The generation of this idea will help
hospitality sector in increasing its market share as well as sales revenue. There are various
problems related to customer and market which can affect the newly generated idea of hospitality
sector. The major problems which are creating negative impact on hostility sector are
globalisation as well as changing needs of customer which are discussed in detail as below:
Globalisation: The globalisation allows business enterprise to deliver their products and services
in foreign market so that it can increase sales revenue as well as market share. However,
globalisation provides various growth opportunities but at the same time, it becomes difficult for
company to understand foreign cultures (Eres, et. al., 2014). Apart from this, it increases the
level of competition within marketplace which affects the profitability and productivity of
domestic organisations. For surviving in competitive marketplace, hotel companies can go for
technology advancement. The more digitalise organisation will be more it will provide better and
quick services to its customers.
Changing needs of customer: Most of the business gets fail in satisfying customer needs
because they produce their products and services without analysing exact needs of customers. By
conducting market research hotel organisation can easily identify current needs of customer.
Moreover, by taking help of innovating ideas, organisation can provide better customer
satisfaction to customers.
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Q2. Persuasive argument of the benefits to be generated by the idea
The major aim of all hotel organisations is to satisfy customer needs by providing them high-
quality products and services but organisation focus on profit maximisation and cost
minimisation which do not allow them to provide high-quality products (Bocken, et. al., 2014).
The customers of present time are becoming so much advanced about their needs that are why
they compare the products quality and prices with substitute goods so that they can buy quality
goods at lower prices. Apart from this, globalisation is another major problem which is creating
huge negative impact on hospitality companies. The concept of globalisation allows different
companies to enter into new developed and developing market but at the same time, it creates
huge competition in developing as well as developed markets. For overcoming from these
problems, hotel organisation should adopt new innovative idea, in which it can provide
additional services to its visitors such as swimming pool, spa, restaurant and bars where they can
spend their quality time and get good visiting experience (Wooten & Ulrich, 2017). There are
various benefits of current business idea which are followed as under:
 The additional services provide high customer satisfaction to visitors which encourage
them to visits hotel repeatedly.
 Extra services of Spa, swimming pool and restaurants will helps hotel in increasing its
goodwill as well as reputation within competitive marketplace.
 Also, it will help organisation in achieving competitive advantage which will allow it to
survive in competitive marketplace for long time period.
 The biggest positive point of generated business side is that it will help hotel organisation
in increasing its market share, profitability and productivity level.
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Q3. Discussion of the proposed business model
The business model is that organisational concept which helps in identifying the available
sources of revenue, current customer base and details of financing. Apart from this, it also
explains that how business enterprise creates, captures, value and delivers in cultural, economic
and social contexts (Rietzschel, et. al., 2014). There are nine most important elements which
create complete business model for hotel organisation which follows as under:
1. Resources: For executing new business idea, hotel organisation has to take help of
technological, human and financial resources so that it can convert its idea into reality.
2. Key partnership: Subcontractors and strategic business partner will be the key
partnership of hotel organisation. Without taking help of partners, business enterprise
cannot take such huge business decision.
3. Key activities: The major business activities of hotel organisation are to deliver its
accommodation, spa, and other services in most effective manner. Apart from this, it
gives core attention to marketing activities so that it can promote and advertise its
services within workplace.
4. Revenue streams: The hotel organisation generate sales revenue from its
accommodations, bars, restaurants and other services which provide huge satisfaction to
visitors (Wang, et. al., 2015).
5. Customer relationships: For better growth and development, hotel organisation focuses
on building positive relationship with its customer as well as suppliers.
6. Customer segment: The hotel organisation provides its services at lower price and at
different locations so that it can cover mass as well as niche markets.
7. Channels: The social media sites and official website of hotel companies are most
important channels through which they communicate to their customer and key partners.
8. Value proposition: The value of hotel companies are mainly created by their domestic as
well as foreigner customer which visit there at frequent basis.
9. Cost structure: For managing and operating all business activities business enterprise
has to prepare cost structure so that it can estimate its expenses. For implementing new
business idea, hotel organisation has to invest 100000 pounds.
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Q4. Critical success factors to be managed during execution of the idea
The critical success factor is that element which is management term and used by business
enterprise for accomplishing its project activities. In simple words, critical success factor help
organisation in executing its business idea which can lead it to high level of success and growth.
It is also known as key success factor which ensures that organisation will accomplish its desires
outcomes in effective as well as in a systematic manner (Squatrito, et. al., 2014). By taking help
of key success factors, hotel organisation can execute its new business idea in an appropriate
manner. Some most important critical success factors which will help hotel organisation in
executing its business idea are followed as under:
Service quality: The hotel organisation can get success through its business idea only if it will
provide quality products and services to its customer otherwise it can suffer from huge financial
loss. By adding services of spa, bars, restaurant and swimming pool hotel organisation can
improve quality of its business products and services. The hotel organisation is service provider
industry so its success and failure totally depend upon its service quality and how much customer
is satisfied with its accommodation and other services. Hence, it can be said that the quality of
business products or services plays most significant role in execution of business idea.
Customer satisfaction: All type of business enterprise produces and delivers their products or
services so that they can satisfy needs as well as wants of customer. Hospitality industry can
survive in market only if it provides high customer satisfaction to its visitors. The idea of
providing extra services like restaurants, café, swimming pool and spa hotel organisation can
provide better gratification to individuals.
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(Source: Ubiq.co, 2015)
The customer of this era buys only those products or services which provide those additional
benefits or services (Kreinovich, et. al., 2013). So, it is good chance for hotel organisation to
expand its service area and provide high satisfaction level to its visitors.
Experienced workforce: For providing additional services to customer, hotel organisation needs
to take help of highly skilled employees who can tackle all the customer problems as well as
enquiries. In other words, people with good skills and competencies can help hotel organization
in providing better customer satisfaction and improving business performance. The experienced
workforce allows organisation to survive in competitive marketplace which is another beneficial
point for Hotel Company.
Hence, these are some most important key success factors which will assist hotel organisation in
executing its brands new business idea of adding additional services successfully.
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Q5. Evaluation of the feasibility of the idea
The feasibility is that business process which is used by business enterprise for determining cost,
time period, efficiency and effectiveness of proposed business project or idea. While making any
new business decisions or investing huge amount in some project organisation should focus on
feasibility study so that it can evaluate positive as well as negative circumstances of its chosen
action (Salter, et. al., 2015). The new idea which is generated for hotel organisation can be
applied within workplace only if it is technically and financially feasible.
For evaluating the feasibility of business idea, hotel organisation has to conduct small-scale
research in which it should evaluate that it has enough technological, human and financial
resources for executing business idea. While evaluating feasibility of the idea, business
enterprise should set some specific goals and expectations which will help in achieving possible
outcomes for continuous operation of organisation.
Moreover, hotel organisation should analyse the market trends and customer needs so that it can
finalise its business idea and take further action for executing idea. As per market analysis, there
is huge trend of Spa, Bars and restaurants in hospitality industry (Muhtaroglu, et. al., 2013).
Hotel organisation should provide not only accommodations services but also provide café, bars
and other spa services so that visitor will enjoy their stay in particular hotel. In present time,
customer book rooms in that hotel which provides additional services so that customer would not
get bored. On the basis of feasibility study, it can be said that newly generated idea will provide
huge financial profit to hotel organisation.
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Conclusion
By summering above mentioned discussion, it has been concluded that idea generation is that
creative process which helps business enterprise in solving some specific market and customer
problems which can affect organisational growth. The idea of providing extra services will helps
hotel companies in removing all the barriers relating to customer and market. There are various
critical success factors such as appropriate financial resources, customer satisfaction,
relationships with suppliers and quality products or services. Moreover, for better success
organisation should evaluate the feasibility of newly generated idea so that it can look critically
at the business idea and determine if it is worth investing money in that idea.
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Appendices
Business canvas model
Key partners
o Subcontr
actors
o Strategic
business
relations
hips
Activities
o Service
delivery
o Marketing
Value proposition
Hotel organisation
creates values for
o Foreign
Visitors
o Domestic
people
Relationship
s
o Long-
term
relatio
ns
with
custo
mers
o Positi
ve
relatio
ns
with
suppli
ers
Customer
segmentation
o Mass
markets
o Niche
Resources
o Financial
o Human
o Technologi
cal
Channels
o Websi
tes
o Social
comm
unicati
on
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chann
els
Cost structures
o Website development
o Salaries of workforce
o Sales
Revenue streams
o Accommodation services
o Spa, swimming pool and other restaurant
services
o Service Fees
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References
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 Squatrito, R., Sgroi, F., Tudisca, S., Trapani, A. M. D., & Testa, R. (2014). Post feed-in
scheme photovoltaic system feasibility evaluation in Italy: Sicilian case
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