Imperial Hotel London: Business Management Analysis Report

This report presents a comprehensive analysis of the Imperial Hotel, a 500-bedroom, 4-star hotel in London, focusing on its operational and management challenges. The report identifies key issues such as declining guest satisfaction, high staff turnover, outdated infrastructure, and operational inefficiencies. It delves into the causes of these problems, including ineffective technology, lack of employee training, and poor communication. The analysis highlights the implementation of a three-point plan that includes automation, high-performance teams, and innovative housekeeping and maintenance processes to improve the hotel's performance. Furthermore, the report applies various management theories and principles, such as systems theory and operational management principles, to provide strategic solutions. The report also emphasizes the importance of employee training, a healthy working environment, and effective communication to enhance guest satisfaction and profitability. The conclusion underscores the necessity for the hotel to invest in research and development, embrace technology, and prioritize employee development to achieve long-term success in the competitive hospitality industry.

IMPERIAL HOTEL

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Analysis of Individual Problem...................................................................................................3
Three Point Plan..........................................................................................................................5
Management Theories and Principles..........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Increase in the demand of tourist in hospitality industry has increased the opportunity of
businesses to grow by attracting more tourists and increase their market share (Khorasani and
Almasifard, 2017). Due to increase in competition in global market it is also very essential for
hospitality business to analyses all the issues and challenges which are faced in growing business
in market effectively. This report discusses different problems which Hotel Imperial is facing in
its operating and functional activities. As hotel is 500 bedrooms 4-star chain which is located in
London, UK. This increases the efficiency of Hotel to device effective understanding about all
the factors to develop effective strategies and manage all the challenges properly. Hotel has 450
employees in total who helps to increase performance of all the operational activities to increase
profit margins. Furthermore, this report highlights the causes of various problems and
interrelation with each other to increase the understanding with to create effective strategy. There
is problem which is faced by hotel that Imperial is not able to increase the satisfaction level of
their customers which is reducing their market share and also decreasing their brand value to
gain higher profit margins effectively. Due to in appointment of new general manager there is
discussion on all the issues which is increasing the cost of Imperial hotel. This report provides
different management theories and principles which increases the potential of hotel to resolve all
the problems and become more effective to achieve their objectives and compete in market
effectively.
Analysis of Individual Problem
It has been analysed that there are many factors which increase the problems of imperial
hotel to increase its potential to develop high quality services. This also increase the performance
of hotel to achieve higher brand value effectively. This is also very essential to increase market
share and analyse all the factors to gain popularity and increase proper room revenue rate
effectively(Bratton and Gold, 2017). As the hotel is 100 years old and need to be renovated
according to new market trends which increases customer satisfaction and increase customer
base effectively. As there is a loss of 60 rooms out of action which is reducing the financial
performance of Imperial hotel. As the new general manager of the hotel identifies different
problems in the business which also increases the potential to create effective strategy and
business plan and achieve maximum output with the available resources effectively. The main

issue of the hotel which was analysed by manger is poor guest satisfaction even though hotel is
rated 4 start the quality of services and staff and high staff turnover which also increases cost of
operation in hotel. Another problem which is identified by manager is ineffective working
environment which discourages mall the employees to work effectively and increase the
performance of hotel to meet its objectives daily. Due to increase in the ineffective team working
ability impacts the communication channel of all the operational and functional departments to
reduce the services quality. This also reduces the efficiency of the hotel to increase satisfaction
level of guests and impact the brand image of the hotel negatively.
There were several issue like ineffective technology which decrease the quality of rooms
and decreases the performance of employees to satisfy guests to retain and make them loyal. As
the per room revenue has dropped to 92 pounds which is very low and with the high cost and low
productivity of employees’ hotel also has a high risk of failure of its rating. As hotel is not able
to fulfil the standard operating cost which also impacted the profit margins of company and
reduces opportunity of hotel to invest in effective products and services to increase their
satisfaction level effectively (Bourne, Melnyk and Bititci, 2018). There are many problems
however housekeeping and kitchen services staff also need to be trained which can increase the
efficiency to increase the hotel experiences of guests and make them increase the rating and
goodwill of Imperial hotel. It is also very essential for business to determine effective human
resources who can develop better and effective working environment atop foster growth improve
services quality according to needs and wants of tourists effectively. All the bars and restaurant
has the same issue that is lack of proper skills and knowledge to provide effective products in
food and beverages, this also impact the quality of customer engagement in the hotel to increase
revenue generation effectively. It is also analysed that the staff is not having effective
understanding about all the equipment’s and not having proper storage skills which increases the
wastage and cost of hotel (Tran, 2019). Due to lack of healthy working environment hotel also
need to become more effective in understanding behaviour and talents of all the staff to place
them effectively. This also helps them to become efficient in making decision to support
objectives of Imperial Hotel effectively.
As the ineffective front office staff is making it very difficult to provide proper
instruction to guests which also impact the goodwill of the hotel. Due to lack of confidence and
interpersonal skills also reduces the efficiency of staff personality to influence guests to increase

their satisfaction. There is a lack of proper communication from the front office department to
other department like housekeeping about all the occupancy and departures (Ivanova, Ivanov and
Magnini, 2016). This increases the inefficiency in the hotel and increases delays due to lack of
management. There are many factors which are also very unique in hotel however due to lack of
proper planning and management it is also impacting the overall performance of hotel Imperial
to grow and increase its productivity. Front office staff also has to provide all the sales data to
finance department to formulate effective annual budget accordingly however the front office
employees do not have knowledge of using information system to provide all the information
and also increases the gaps to achieve objectives. This also increase high job dissatisfaction and
reduces the number of potential employees in the hotel (Ho, 2017). Culture, power and politics in
hotel also discourages many employees to increase their performance and force them to leave the
organisation. It was also very effective for the hotel to analyse all the factors with the help of nee
general manager who uses different plan to increase the performance.
Three Point Plan
This is strategic plan for Imperial hotel which will help to increase its performance by
resolving all the issues and problems so that it can compete in market and regain its position to
attract more guests and increase their satisfaction level effectively. This three strategy is very
essential for business organization to analyse all the market factor which helps them to
understand current trends and current innovative techniques which also helps them to become e
more effective.
Automate
General manager of Imperial hotel developed this strategy to increase the implantation of
technology and machineries to reduce cost and increase the efficiency of operation effectively.
There Are also very effective understanding to all the in digital tools which will helps the guests
to increase their experiences and satisfaction level (Patrick and Grumer, 2017). Automation is
also one of the effective and most innovative techniques which increase the performance of
hotel. With the help of this strategy manager can resolve the ineffective performance of kitchen
and housekeeping. It is also very efficient for the hotel to understand the errors and make them
right at the same moment to increase their efficiency of the operation and make better decisions.
Automation strategy also provides employees with better information and skills to increase their

personal development to increase their job satisfaction. This reduce the employees turnover rate
and increases the opportunity to generate higher profits.
High performance teams
Providing training and personal development programs helps employees to increase their
skills and knowledge. This also helps hotel to generate healthy working environment and
provides effective communication with all the department to make effective decisions. This also
increase the information and experience to developed shared values to create productive
organisational culture. With the help of the strategy all the employees will also increase their
morale value towards to hotel and become loyal with positive attitude. This will reduce many
problems of Imperial hotel effectively (Lado-Sestayo, Vivel-Búa and Otero-González, 2017).
This will also change their behaviour to support hotel in increase customer satisfaction and
higher profit margins effectively.
Innovate housekeeping and maintenance process
Housekeeping is the most important department in the hotel as it helps to provide healthy
atmosphere to guests and also communicate with them to fulfil all their requirement and increase
their satisfaction level effectively. This also helps hotel to reduce the high level of leaves which
employees takes and also motivate them to increase their performance. By adopting effective and
innovative techniques of housekeeping and maintenance department it can reduce the cost of
operation and provide better salary to retain potential talents and make them effective in
understanding all the factors to increase the satisfaction level of guests effectively.
Management Theories and Principles
Operation management theories are set of management policies and principles which are
universally proven and adopted by many business organisations to increase their performance ad
compete in the market, Imperial hotel also analysed all the management theories to implement
suitable theories in the business to improve their efficiency and achieve its objective to increase
its service quality and satisfaction level of guests effectively.
Operation Management Principles
Reality

Operation management strategies that it is very essential to focus on the actual issues and
problems and then relate them with the theories to increase the efficiency of the business
organisation effectively (Zhang and et.al., 2019).
Organization
As all the operation department in the hotel are interrelated and this principle states that it
is very essential to provide consistency in the efforts to increase the productivity of all the
departments to provide same output effectively.
Change
This help the Imperial hotel to examine the external market factors to formulate effective
strategies for change to become effective and compete in market to achieve leadership and gain
higher profit margins effectively (Goh, Nguyen and Law, 2017).
Collaborating with Guests
It is also very essential to identify all the needs and wants of guests which helps the
business to increase their satisfaction by providing effective services and products.
Operation Management Theories
Systems theory
System management theory helps to increase the potential by organising all the resources
in the business organisation and reduce cost of operation effectively (Gonzalez, Gasco and
Llopis, 2019). It is also very essential for the business to develop this theory and gain higher
profit margins effectively. This also reduces al the problems of Imperial Hotel.
CONCLUSION
This report concludes that it is very essential for businesses in hospitality industry
especially accommodation sector to determine all the problems which they faced in increasing
the efficiency of their business. It is also very essential for businesses to develop effective
strategy and management theories to improve performance of employees and achieve its
objectives. Report also provided brief information about different types of problems which hotel
industry faces in particular and different management techniques and theories were applied to
resolve all the issues to increase the productivity of business. It was also analysed that due to

increase in the global trends and increase in globalisation it is very essential for hotel industry in
every country to invest in research and development which also helps to innovate internal
business environment and decrease the cost of operation effectively. With the implementation of
effective technology businesses had also adopted different methods to increase the efficiency of
their employees which improved customer engagement level in the market. This helps businesses
to compete in market and gain higher profit margins to grow and expands effectively. Imperial
hotel increased their performance with the helps training and development and effective
recruitment and selection methods by human resource department to increase the productivity of
all the operation department and meet stand of operational cost. It was also analysed in this
report that it is very essential for hotel to make eco-friendly products and services which
increases the perceived value of market customers to increase brand value ad higher profit
margins effectively.

REFERENCES
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