Hospitality: Menu Development and Planning at Royal Berkshire Hotel

This report provides an analysis of menu product development and planning at the Royal Berkshire Hotel. It begins with idea generation, including a SWOT analysis identifying the hotel's strengths, weaknesses, opportunities, and threats. The report then discusses idea screening and concept testing, addressing issues such as high labor costs and resource allocation. Business analysis includes pricing strategies, sales volumes, and social media integration, along with a breakdown of fixed and variable expenses. The impact of new product development on the organization is evaluated, focusing on customer needs and penetration pricing strategies to gain a competitive advantage. Finally, the report assesses the advantages and disadvantages of the development process, noting the potential for sustainable functioning and competitive advantage, while also acknowledging risks related to market fluctuations and understanding client inclinations. The document concludes with a list of references.

Running head: HOSPITALITY MANAGEMENT
HOSPITALITY MANAGEMENT
Name of the student
Name of the university
Author note

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TASK B
2.1 Stages of menu product development and planning
1. Idea generation
SWOT of Royal Berkshire Hotel
Strengths
 Brand recognition
 Quality food and beverages served to
the clients
 Enhanced quality of operations
 Loyalty of the customers (Wei, Yi
and Guo 2014)
Weaknesses
 Higher dependency on the suppliers
 Lack of supply chain optimization
 Higher cost of labour
Opportunities
 Huge prospects of growth in the
Australian markets
 Scope of development in line of luxury
consumer goods
Threats
 Pressure of the high competition in the
developing markets
 New entrants in the industry
 Lack of product service innovation in
the business model
The market trends are dependent on the understanding of customer inclinations over
healthy food habits has affected the functioning of eths business while operating in the diverse
markets (Florén and Frishammar 2012). The concerned organization, Royal Berkshire Hotel,
has undertaken steps to propose the food and beverages as per the identification of the

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inclinations of the customers towards healthy food options (Exclusive.co.uk. 2018). It has helped
the organization in making its progress in the diverse international markets. On the other hand,
the quality of the products that are developed by the organization has helped the same in
upholding the efficacy of the functions. Induction of positive workforce culture in the business
model has helped the organization in undertaking the smooth functioning of the same through a
well operating workforce.
2. Idea screening and concept testing
The different issues that are faced by the management of the organization re related to the
higher cost of labour, which has affected the profitability of the business. On the other hand, the
lack of proper allocation of the resources to the departments as per the expertise has affected the
smooth functioning of the business venture (He et al. 2014). The cost of raw materials and the
labour charges has affected the smooth functioning of the business venture while making its
expansion in the international markets. The different issues that are faced by the organization
relating to the higher cost of labour and supplies have affected the functioning of the business
and the expansion of the same in the markets.
3. Business analysis
The estimated selling price of the foods that are developed by the organization ranges
from £12.50- £13.95. On the other hand, the venue booking of the organization starts from £72,
which is lesser than that proposed by its competitors (Exclusive.co.uk. 2018). It has helped the
organization in attracting the attention of the targeted consumers. The high sales volume of the
organization has helped the same in maintaining its sustenance through continuous innovations.
The social media integration functions of the business have helped the same in maintaining the

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efficacy of the business performance while operating in the diverse international markets (Acur,
Kandemir and Boer 2012).
Fixed Expenses
Fixed Expenses
Real Estate
$
60,000
Leasehold Improvements 22,000
Capital Equipment 95,000
Location / Admin Expenses 47,000
Opening Inventory -
Advertising / Promo Expenses 9,000
Other Expenses 65,000
Total Fixed Expenses
$
298,000
Variable
Expenses
Inventory or Materials 7586412.0
Direct labor (includes payroll taxes) 1000063.0

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cost of raw materials 79653565.0
Other expenses 5321654.0
Salaries (includes payroll taxes) 2362125.0
Supplies 9654565.0
Total Variable Expenses 10557838400%
Breakeven Sales level = 0
4. New product pricing
The impact of the new product on the organizational context is based on the identification
of the needs of the customers while operating in the diverse environments. The pricing strategy
that is being considered by the organization is Penetration pricing strategy, which has helped the
business in attracting the attention of the targeted group of customers to the product and quality
service offerings of the venture in order to gain a competitive advantage in the market (Kim, Im
and Slater 2013). The new product development of the organization will be enhancing the
revenue structure through enhancement in the sales volume of the business.

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2.2 Evaluations of influences on the development process (advantages and disadvantages)
The development process that is being undertaken by the business has helped the same in
undertaking the sustainable functioning. On the other hand, the diverse innovations are more
prone to face different uncertainties due to lack of proper understanding of the client inclinations
towards a service or a food product that is developed by the business (Poetz and Schreier 2012).
The continuous innovation that is being undertaken by the organization in devising a line of
products has helped the same in achieving a competitive advantage over the other players in the
markets (Thomas 2013). However, there are risks that are faced by the organization relating to
the different fluctuations in the market economics, which might affect the business undertaking
as per the approach.

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References
Acur, N., Kandemir, D. and Boer, H., 2012. Strategic alignment and new product development:
Drivers and performance effects. Journal of Product Innovation Management, 29(2), pp.304-
318.
Exclusive.co.uk. (2018). Royal Berkshire | 4* Wedding & Conference Venue in England.
[online] Available at: https://www.exclusive.co.uk/royal-berkshire/ [Accessed 28 Sep. 2018].
Florén, H. and Frishammar, J., 2012. From preliminary ideas to corroborated product definitions:
Managing the front end of new product development. California Management Review, 54(4),
pp.20-43.
He, Y., Lai, K.K., Sun, H. and Chen, Y., 2014. The impact of supplier integration on customer
integration and new product performance: the mediating role of manufacturing flexibility under
trust theory. International Journal of Production Economics, 147, pp.260-270.
Kim, N., Im, S. and Slater, S.F., 2013. Impact of knowledge type and strategic orientation on
new product creativity and advantage in high‐technology firms. Journal of Product Innovation
Management, 30(1), pp.136-153.
Poetz, M.K. and Schreier, M., 2012. The value of crowdsourcing: can users really compete with
professionals in generating new product ideas?. Journal of product innovation
management, 29(2), pp.245-256.

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Thomas, E., 2013. Supplier integration in new product development: Computer mediated
communication, knowledge exchange and buyer performance. Industrial Marketing
Management, 42(6), pp.890-899.
Wei, Z., Yi, Y. and Guo, H., 2014. Organizational learning ambidexterity, strategic flexibility,
and new product development. Journal of Product Innovation Management, 31(4), pp.832-847.