SM Project

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Executive Summary

The organization operates within the larger framework of the external environment that

shapes opportunities and poses threats to the organization. The external environment is a set

of complex, rapidly changing and significant interacting institutions and forces that affect the

organization's ability to serve its customers. Environmental scanning is a concept from

business management by which businesses gather information from the environment, to

better achieve a sustainable competitive advantage. To sustain competitive advantage the

company must also respond to the information gathered from environmental scanning by

altering its strategies and plans when the need arises.

cnvironmental factors internal to the firm usually can be classified as strengths (S) or

weaknesses (W), and those external to the firm can be classified as opportunities (O) or

threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.

The SWOT analysis provides information that is helpful in matching the firm's resources and

capabilities to the competitive environment in which it operates. As such, it is instrumental in

strategy formulation and selection.

The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as

TAJ Hotels Resorts and Palaces and is recognised as one of Asia's largest and finest hotel

company. It is one of India’s oldest service band owned by Tatas, which is nearly 100yrs old.

Value and luxury is associated with this brand. Its target segment is Luxury loving and high

income group. Its USP is – LUXURY.

This study is an attempt to study the strategies adopted by TAJ HARI HOTEL , identify the

opportunities and threats for Taj Hari Mahal in the market, and analyse its strengths and

weaknesses and to To generate/suggest an alternative course of action/strategies for the firm

using SWOT matrix analysis.

This information given in the project has been thoroughly analyzed & revised. The researcher

had tried to make an attempt collect the maximum possible data through various sources. An

attempt has been made to tabulate the complete data & analyze it in such a manner that it

accomplishes the three objectives of the project.

Statement of Objectives:

1) To identify the strategies adopted by Taj Hari Mahal.

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2) To identify the opportunities and threats for Taj Hari Mahal in the market, and

analyse its strengths and weaknesses.

3) To generate/suggest an alternative course of action/strategies for the firm using

SWOT matrix analysis.

Research Methodology:

Since the research will be doctrinal and non-doctrinal in nature, therefore the data would be

collected both from secondary and primary sources of information. On the basis of the data

collected, a questionnaire will be developed, which would further help in field study and

collection of primary data. So, research would also follow empirical research. Therefore the

approach for research would be deductive approach.

Taj Group of Hotels

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Chapter: 1

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SWOT Analysis: An Introduction

MEANING:

An important part of any strategy planning would include identifying the environment and

understanding its aspects in a holistic sense. A scan of the internal and external environment

is an important part of the strategic planning process. SWOT analysis is an acronym for the

internal Strengths and Weaknesses of a firm and the environmental Opportunities and

Threats facing that firm. SWOT analysis is widely used technique through which managers

create a quick overview of the company’s strategic situation. It is based on the assumptions

that an effective strategy derives from a sound “fit” between internal resources (strengths and

weaknesses) and its external situation (opportunities and threats). A good fit maximizes a

firm’s strengths and opportunities and minimizes its weaknesses and threats. It helps provide

direction and serves as a basis for the development of business plans. It accomplishes this by

examining the strengths (what an operation does well) and weaknesses (what an operation

does not do well) in addition to opportunities (potential favourable conditions for an

operation) and threats (potential unfavourable conditions for an operation). Once completed,

the SWOT analysis can help determine if the information indicates something that will assist

the operation in achieving its objectives (a strength or opportunity), or if it indicates an

obstacle that must be overcome or minimized to achieve desired results (weakness or threat).



strategy formulation and selection. 1

SWOT analysis came from the research conducted at Stanford Research Institute from 1960-

1970. The background to SWOT stemmed from the need to find out why corporate planning

failed. The research was funded by the fortune 500 companies to find out what could be done

about this failure. It all began with the corporate planning trend, which seemed to appear first

at Du Pont in 1949. By 1960 every Fortune 500 company had a 'corporate planning manager'

and 'associations of long range corporate planners' had sprung up. 2

1 http://competitive-intelligence.mirum.net/competitive-intelligence-methods/swot-analysis-strengths-weaknesses-opportunities-threats_4.html2http://www.businessballs.com/swotanalysisfreetemplate.htm visited

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The fact remained, despite the corporate and long range planners, that the one and only

missing link was how to get the management team agreed and committed to a comprehensive

set of action programs. The research carried on from 1960 through 1969. 1100 companies and

organizations were interviewed and a 250-item questionnaire was designed and completed by

over 5,000 executives.3 The system began by asking what is good and bad about the present

and the future. What is good in the present is Satisfactory, good in the future is an

Opportunity; bad in the present is a Fault and bad in the future is a Threat. This was called the

SOFT analysis. When this was presented to Urick and Orr in 1964 at the Seminar in Long

Range Planning at the Dolder Grand in Zurich Switzerland they changed the F to a W and

called it SWOT Analysis. SWOT was then promoted in Britain by Urick and Orr as an

exercise in and of itself.

As the SWOT analysis stands for the analysis of internal strengths and weaknesses of an

operation and external opportunities and threats to the operation. Below is a description of

each of these elements that should be considered while performing a SWOT analysis:

Strengths:

The first element of a SWOT analysis describes the strengths of an operation. These

strengths include what an operation does well, and should be viewed from both the

organization’s point of view as well as the point of view of people with whom the

organization comes in contact. Strengths describe the positive attributes, tangible and

intangible attributes, internal to an organization.4 Strengths include the positive

attributes of the people involved in the business, including their knowledge,

backgrounds, education, credentials, contacts, reputations, or the skills they bring.

Strengths also include tangible assets such as available capital, equipment, credit,

established customers, existing channels of distribution, and other valuable resources

within the business. Strengths capture the positive aspects internal to a business that

add value or offer a competitive advantage. It is important to note that operations that

are in a bad position also have strengths. Whether or not these strengths are adequate

should be determined through further analysis.

Weaknesses:

3 Ibid.4 http://en.wikipedia.org/wiki/SWOT_Analysis

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The other internal element of the SWOT analysis describes the weaknesses of an

operation. Examining weaknesses include identifying what an operation does not do

well. As with the strengths, weaknesses should be examined from both, organization’s

perspective and from the perspective of those outside the operation. Weaknesses

might include lack of expertise, limited resources, lack of access to skills or

technology, inferior service offerings, or the poor location of your business. These are

factors that are under your control, but for a variety of reasons, are in need of

improvement to effectively accomplish your marketing objectives. Weaknesses

capture the negative aspects internal to a business that detract from the value it offers,

or place it at a competitive disadvantage. These are areas that need to be enhanced in

order to compete with competitors. All operations, regardless of size or profitability

have weaknesses. How badly these weaknesses will affect the operation should be left

to further analysis.

Opportunities:

The first external element of the SWOT analysis is opportunities. The opportunities

include any favourable situation in the business’s environment that the operation may

realize gains from. These opportunities reflect the potential one can realize through

implementing various marketing strategies.5 Opportunities may be the result of market

growth, lifestyle changes, resolution of problems associated with current situations,

positive market perceptions about business, or the ability to offer greater value that

will create a demand for services. External opportunities can include the misfortune of

competitors who are not performing well, providing you with the opportunity to do

better. These could range from diversification and the use of new technologies to

market trends and relationship developments. It is important to note that all operations

have some opportunities: identifying these opportunities is the sign of a good analyst.

Threats:

The final element of the SWOT analysis is the external threats that the operation

faces. Regardless of size or profitability, all operations face threats. Threats include

factors beyond your control that could place your strategy, or the business itself, at

risk a threat6 is a challenge created by an unfavourable trend or development that may

lead to deteriorating revenues or profits. Competition existing or potential is always a

threat. Other threats may include intolerable price increases by suppliers,

5 Ibid.6 Ibid.

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governmental regulation, economic downturns, and a shift in consumer behavior that

reduces your sales. These threats could range from lower international prices to key

relationships that are not going well. These are also external & you have no control

over them, but you may benefit by having contingency plans to address them if they

should occur. Whatever the threat, the operation should have a plan in place to resolve

the problem.7

PURPOSE:

Environmental scanning is a concept from business management by which businesses gather

information from the environment, to better achieve a sustainable competitive advantage. To

sustain competitive advantage the company must also respond to the information gathered

from environmental scanning by altering its strategies and plans when the need arises.

Appraisal is the process by which the strategic planners monitor the economic, governmental,

technological, and social and market settings to determine the opportunities and threats facing

the enterprise. Analysis is the set of decisions made to react to, anticipate or ignore

environmental cues.

A management system describes the organization and the set of significant interacting

institutions and forces in the organization's complex and rapidly changing environment that

affect its ability to serve its customers. The firm must continuously monitor and adapt to the

environment if it is to survive and prosper. Disturbances in the environment may spell

profound threats or new opportunities for the firm. The successful firm will identify, appraise,

and respond to the various opportunities and threats in its environment.

As SWOT analysis is a method of assessing a business, its resources, and its environment,

doing an analysis of this type is a good way to better understand a business and its markets,

and can also show that all options open to, or affecting a business at a given time have been

thought about thoroughly. The essence of the SWOT analysis is to discover what a business

does well; how it can improve; whether it is making the most of the opportunities around it;

and whether there are any changes in the market—such as technological developments,

mergers of businesses, or unreliability of suppliers—that may require corresponding changes

in the business.8 SWOT analysis can be used in many ways to aid strategy analysis. The most

7 Bennett, Blake and Brenda Duckworth. Department of Ag Economics, Texas A&M University. May 2003.8 http://competitive-intelligence.mirum.net/competitive-intelligence-methods/swot-analysis-strengths-weaknesses-opportunities-threats

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common way is to use it as a logical framework guiding systematic discussion of a firm’s

situation and the basic alternatives that the firm might consider. What one manager sees an

opportunity, another may see as a potential threat. And also, strength to one manger may be a

weakness to another.9

MECHANISM:



strategy formulation and selection. The objective of the analysis should always be to place

the business in a position where the manager can determine a strategy for the future to

improve its overall performance or maintain it if the results are favorable. It entails

monitoring the marketing surroundings internal and external to the company. It is a central

tool for auditing the overall strategic position of a business and its environment. The intention

of any SWOT analysis is to separate the key environmental factors that are significant to the

marketing plans of the business. It functions within an external environment that is defined as

all elements that exist outside the boundary of the Organization that have the potential to

affect the organization.10 On the other hand internal environment is described as all forces

that exist within the organization and influence its behaviour. SWOT clusters key portions of

information into two main categories:

•Internal aspects - The 'strengths' and 'weaknesses' internal to the business, i.e., its strategies

and its position in relation to its competitors.

•External factors - The 'opportunities' and 'threats' caused by the external environment and

the competition.

The internal aspects may be considered as strengths or weaknesses depending upon their

effect on the company's positions. This means, they may symbolize strength for one

organization but a weakness, in relative terms, for a different.

However, the organization operates within the larger framework of the external environment

that shapes opportunities and poses threats to the organization. The external environment is a

set of complex, rapidly changing and significant interacting institutions and forces that affect

9 http://www.baserler.com.tr/onur/isletme/Management%20Skills-SWOT.htm10 Ibid.

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the organization's ability to serve its customers.11 External forces are not controlled by an

organization, but they may be influenced or affected by that organization.

It is necessary for organizations to understand the environmental conditions because they

interact with strategy decisions. The external environment has a major impact on the

determination of business decisions. Successful organizations scan their external environment

so that they can respond profitably to unmet needs and trends in the targeted markets. An

organization with an environmental management perspective takes aggressive actions to

affect the forces in its environment rather than simply watching and reacting to it.

It is imperative to understand the constituents of the Environment before progressing further.

The External Environment consists of:

1) Economic Environment: The economic environment consists of factors that affect

consumer purchasing power and spending patterns. Economic factors include business

cycles, inflation, unemployment, interest rates, and income. Changes in major

economic variables have a significant impact on the marketplace. 12

2) Technological Environment: The technological environment refers to new

technologies, which create new product and market opportunities. Technological

developments are the most manageable uncontrollable force faced by organizations.

Organizations need to be aware of new technologies in order to turn these advances

into opportunities and a competitive edge.

3) Political & Legal Environment: Organizations must operate within a framework of

governmental regulation and legislation. Government relationships with organizations

encompass subsidies, tariffs, import quotas, and deregulation of industries. The

political environment includes governmental and special interest groups that influence

and limit various organizations and individuals in a given society.

4) Demographic Environment: Demographics tell organizations who current and

potential customers are; where they are; and how many are likely to buy what the

marketer is selling. Demography is the study of human populations in terms of size,

density, location, age, sex, race, occupation, and other statistics. Changes in the

demographic environment can result in significant opportunities and threats

presenting themselves to the organization.13

11 http://ollie.dcccd.edu/mrkt2370/Chapters/ch2/2env.html12 Ramaswamy & Namakumari, Marketing Management (Macmillan Business Books, New Delhi, 3rd edn., 2003) p.2913 Kotler, Philip, Marketing Management (Prentice Hall of India, New Delhi, 11th edn., 2003) p.166

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5) Cultural Environment: Social/cultural forces are the most difficult uncontrollable

variables to predict. It is important for marketers to understand and appreciate the

cultural values of the environment in which they operate. The cultural environment is

made up of forces that affect society's basic values, perceptions, preferences, and

behaviors which affect sales of products. 14

6) Customers: Customers and clients are the recipients of an organizations output, they

are important because they are the ones who determine an organizations success.

Identifying an organization’s main customers and producing the goods and services

they want is crucial to organizational and managerial success.

7) Competitors: An organization’s competitors include other business units in the

industry that provide similar goods or services as the organization and compete with it

for resources.

8) Suppliers: Suppliers are organizations and individuals that provide the resources

needed to produce goods and services. They are critical to an organization's success

and an important link in its value delivery system. If there is a breakdown in the link

between the organization and its suppliers, the result will be delays and shortages that

can negatively impact the organization's marketing plans.15

9) Marketing Intermediaries: Marketing intermediaries are independent organizations

that aid in the flow of products from the marketing organization to its markets. The

intermediaries between an organization and its markets constitute a channel of

distribution. These include middlemen (wholesalers and retailers who buy and resell

merchandise).

The above environment plays a decisive role in right fit between the firm and the Customer.

Thus an important part of any strategy or activity planning would include identifying the

environment and understanding its aspects in a holistic sense. External environment may be

divided into micro and macro and both are areas of concern in the present project. Before

jumping onto SWOT analysis one has to do Environmental Analysis first. The following

diagram shows how a SWOT analysis fits into an environmental scan:

14 Ramaswamy & Namakumari, Marketing Management (Macmillan Business Books, New Delhi, 3rd edn., 2003) p.2815 Ibid.

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SWOT Analysis Framework16

Environmental Scan

/ \

Internal Analysis External Analysis

/ \ / \

Strengths Weaknesses Opportunities Threats

|

SWOT Matrix



strategy formulation and selection.

SWOT Matrix:

After SWOT analysis is completed, alternative courses of action may be analysed by creating

a SWOT Matrix. SWOT Matrix is a tool of generating alternative courses of action by

identifying combinations of internal characteristics (i.e., strengths and weaknesses) and

external forces (i.e., opportunities and threats). Alternatives emerge from the combination of

strengths/weaknesses and opportunities/threats.17A firm should not necessarily pursue the

more lucrative opportunities. Rather, it may have a better chance at developing a competitive

advantage by identifying a fit between the firm's strengths and upcoming opportunities. In

some cases, the firm can overcome a weakness in order to prepare itself to pursue a

compelling opportunity. To develop strategies that take into account the SWOT profile, a

matrix of these factors can be constructed as shown below:18

16 http://www.quickmba.com/strategy/swot/17 John A. Parnell, Strategic management-Theory and Practices, Biztantra, New Delhi, 2008, pg.130 18 http://www.quickmba.com/strategy/swot/

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SWOT Matrix 19

Strengths Weaknesses

OpportunitiesS-O strategies W-O strategies

ThreatsS-T strategies W-T strategies

Strengths-Opportunities: S-O strategies pursue opportunities that are a good fit to the

company's strengths. These “offensive/growth” alternatives tend to be the most

common and involve utilizing organisational strengths to address an opportunity.

Weaknesses-Opportunities: W-O strategies overcome weaknesses to pursue

opportunities. These “turnaround” alternatives involve shoring up a weakness so that

the organization can take advantage of an opportunity.

Strengths-Threats: S-T strategies identify ways that the firm can use its strengths to

reduce its vulnerability to external threats. These “diversification” alternatives involve

utilizing strength to eliminate or minimize the effect of threat.

Weaknesses-Threats: W-T strategies establish a defensive plan to prevent the firm's

weaknesses from making it highly susceptible to external threats. These “defensive”

alternatives involve taking some corrective action to eliminate or minimize weakness so

as to minimize the effect of threat.

This can be represented diagrammatically:

Opportunities

(Turnaround Strategy) (Growth/offensive Strategy)

19 John A. Parnell, Strategic management-Theory and Practices, Biztantra, New Delhi, 2008, pg.130

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Weaknesses Strengths

(Defensive Strategy) (Diversification Strategy)

Threats

Subject of SWOT Analysis:20

Strengths:

Advantages of proposition?

Capabilities?

Competitive advantages?

USP's (unique selling points)?

Resources, Assets, People?

Experience, knowledge, data?

Financial reserves, likely returns?

Marketing - reach, distribution,

awareness?

Innovative aspects?

Location and geographical?

Price, value, quality?

Accreditations, qualifications,

certifications?

Processes, systems, IT,

communications?

Cultural, attitudinal, behavioural?

Management cover, succession?

Weaknesses:

Disadvantages of proposition?

Gaps in capabilities?

Lack of competitive strength?

Reputation, presence and reach?

Financials?

Own known vulnerabilities?

Timescales, deadlines and pressures?

Cashflow, start-up cash-drain?

Continuity, supply chain robustness?

Effects on core activities, distraction?

Reliability of data, plan

predictability?

Morale, commitment, leadership?

Accreditations, etc?

Processes and systems, etc?

Management cover, succession?

Opportunities: Threats:

20 http://www.businessballs.com/swotanalysisfreetemplate.htm

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Market developments?

Competitors' vulnerabilities?

Industry or lifestyle trends?

Technology development and

innovation?

Global influences?

New markets, vertical, horizontal?

Niche target markets?

Geographical, export, import?

New USP's?

Tactics - surprise, major contracts,

etc?

Business and product development?

Information and research?

Partnerships, agencies, distribution?

Volumes, production, economies?

Seasonal, weather, fashion

influences?

Political effects?

Legislative effects?

Environmental effects?

IT developments?

Competitor intentions - various?

Market demand?

New technologies, services, ideas?

Vital contracts and partners?

Sustaining internal capabilities?

Obstacles faced?

Insurmountable weaknesses?

Loss of key staff?

Sustainable financial backing?

Economy - home, abroad?

Seasonality, weather effects?

The basic SWOT process is to fill in the four boxes, but the real benefit is to take an overview

of everything in each box, in relation to all the other boxes. This comparative analysis will

then provide an evaluation that links external and internal forces to help your business

prosper. The internal strengths and weaknesses, compared to the external opportunities and

threats, can offer additional insight into the condition and potential of the business.21

Once all strengths, weaknesses, opportunities, and threats of operation have been listed, the

information should be combined so that strategies can be developed.22

21 http://marketingteacher.com/Lessons/lesson_swot.htm22 Bennett, Blake and Brenda Duckworth. Department of Ag Economics, Texas A&M University. May 2003.

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Chapter: 2

Taj Group of Hotels: An Introduction

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Taj Group of Hotels: At a Glance23

The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as

Taj Hotels Resorts and Palaces and is recognised as one of Asia's largest and finest hotel

company. Incorporated by the founder of the Tata Group, Mr. Jamsetji N. Tata, the company

opened its first property, The Taj Mahal Palace Hotel, Bombay in 1903. The Taj, a symbol of

Indian hospitality, completed its centenary year in 2003. Taj Hotels Resort and Palaces

comprises more than 60 hotels in 45 locations across India with an additional 15 international

hotels in the Malaysia, United Kingdom, United States of America, Bhutan, Sri Lanka,

Africa, the Middle East and Australia.

IHCL operate in the luxury, premium, mid-market and value segments of the market through

the following- Taj (luxury full-service hotels, resorts and palaces), Premium Hotels (premium full-

service hotels and resorts), Gateway Hotels (upscale/mid-market full service hotels and resorts),

and Ginger Hotels (economy hotels).

Taj: EARTH24

23 http://www.tajhotels.com24 Ibid.

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In an endeavour to reinstate its vision and efforts to boost sustainable tourism and integrate

environment management in all business areas, Taj Hotels Resorts and Palaces presents

EARTH (Environment Awareness & Renewal at Taj Hotels), a project which reiterates the

conscious effort of one of Asia’s largest and finest group of hotels to commit to energy

conservation and environmental management. EARTH has received certification from Green

Globe, the only worldwide environmental certification program for travel and tourism.

Taj Hotels has joined the internationally-recognised Green Globe benchmarking and

certification system as an extension of its existing environmental policies. Taj Hotels has long

recognised that as a leader it has an important contribution to make and a responsibility to

demonstrate to others how they can be part of the fight against climate change.

Having implemented the Environmental Awareness and Renewal (EARTH) programme, a

project which began as a conscious effort to commit to energy conservation and other

sustainability strategies, Taj Hotels was one of the first groups to join the tourism industry in

its efforts.

Product/Service Mix:25

Product Services

Food & Wine

Benares weavers

Jiva Spa

TajSATS- Air catering

Taj Air- Private Luxury Jet

Inditarvel Pvt Ltd.

Taj Holidays

Event Planning

Surprises by TAJ

Reservations

Reward Programmes

Indian Institute of Hotel Management

Jodhpur RIFF- Musical Festival

Taj News & Spice

Private Digital Library

Yoga retreats

25 http://www.tajhotels.com

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Food & Wines: Different types and taste of food and wines are made available here keeping

in mind the cultural diversity and tastes of consumers.

Benares Weavers: Taj is proud to continue supporting traditional arts and crafts with a new

project aimed at endorsing the master hand weavers of Varanasi (formally Benares). The

future of this intricate and ancient art is in jeopardy and Taj has elected to support the master

weavers by adopting handloom woven saris as staff uniforms across 10 luxury properties. In

addition, Varanasi silks are now sold in the Khazana boutiques located in a number of Taj

properties.

Jiva Spa: Jiva Spas offer a spectrum of authentic and traditional Indian wellness treatments

and experiences in a stylish and soothing ambience. Drawing from ancient India healing

wisdom and Ayurveda, Jiva Spas believe that a spa unfolds a way of life wherein the life

force is the bedrock of wellness. Jiva Spas enrobe guests in exclusive experiences and

environs whilst offering an array of signature treatments, yoga and meditation.26

Taj SATS Air-Catering Ltd.: The Taj’s legendary hospitality has been taken to a all-new

level: The skies above. It is the largest airline catering service in South Asia, as a joint

venture with Singapore Airport Terminal Services, a subsidiary of Singapore Airlines.

Offering innovative flight catering and related services, TajSATS operates out of the 4 major

metros in India, viz. Mumbai, Delhi, Chennai and Kolkata. Currently, TajSATS caters to over

26 international and domestic airlines, and is the leader in the Indian flight catering market.27

Taj Air: A luxury private jet operation with state-of-the-art Falcon 2000 aircrafts designed

by Dassault Aviation, France; and Taj Yachts, two 3-bedroom luxury yachts which can be

used by guests in Mumbai and Kochi, in Kerala..28

Inditravel: It was formed in 2002, post the acquisition of the 18 year old agency Stallion

Travel Services Pvt. Ltd. by The Indian Hotels Company Limited. Headquartered in Mumbai,

with branches in 34 locations across India, Inditravel is a professionally managed travel

agency providing total travel management solutions. It is affiliated to IATA, UFTAA, PATA,

TAAI and the Department of Tourism, India. Inditravel offers the following services:

26 http://www.tajhotels.com/JivaSpa/default.htm27 http://www.tajhotels.com/AboutTaj/CompanyInformation/default.htm28 http://www.tajhotels.com/AboutTaj/CompanyInformation/TajAir_PrivateLuxuryJets.htm

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International air ticketing

Domestic air ticketing

Rail ticketing

Hotel Bookings

Car Rentals

Visas

Passport Assistance

Foreign Exchange Assistance

Global Telecards

Medical Insurance29

Taj Holidays: At over 75 hotels located in more than 50 destinations, spread over 10

countries, they offer- an unforgettable holiday, across palaces, islands and resorts. They

provide special offers- Visit India 2009, Culinary Journeys, Taj Holidays Summer Collection

2009, Incredible Escapes 2009.30

Event Planning: They organise different events at Taj- weddings, conferences, parties, etc.31

Surprises at Taj: They offer different packages – Stay a bit longer, book early get more, Taj

Club and suit surprises, Business Edge, Weekend Saver, value Vouchers, Taj fly and Stay.32

Reservations: Taj provides online reservation facility, where one can check availability of

rooms & rates can even make payments online.33

Reward programmes: If one often stays or dines at the Taj, the Taj InnerCircle is the

perfect programme. As a frequent guest at the Taj he/she will earn points and enjoy a host of

exciting benefits when one uses their services around the world. The Taj Advantage Plus is

a programme designed for valuable corporate bookers. Bookings at the Taj will earn reward

points and special offers from the Taj. The Taj Alliance Preferred Partner Membership

Programme (TAPP Me) is meant for our valued partners in the travel trade.34

29 http://www.tajhotels.com/AboutTaj/CompanyInformation/Inditravel_Travel_Services.htm30 http://www.tajhotels.com/TajHolidays/index.aspx31 http://www.tajhotels.com/EventsandMeetings/default.htm32 http://www.tajhotels.com/Surprises/default.htm33https://www.yourreservation.net/ibe/02_taj/main.html;jsessionid=361DE779AA4576E6A8AC44B098A0C8AE?_flowExecutionKey=_cC97987D5-B069-D413-BF18-E153BA699BA9_k79D3404F-E5AD-CB3B-21D9-2AE636CA184D34 http://www.tajhotels.com/TajInnercircle/rewards.htm

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Indian Institute of Hotel Management: It operates the Indian Institute of Hotel

Management, Aurangabad since 1993. The institute offers a three-year diploma, designed

with the help of international faculty and has affiliations with several American and European

programmes.

Jodhpur RIFF: Taj Hotels, Resorts & Palaces is the main sponsor for the annual Jodhpur

RIFF music festival, as part of its campaign to protect and promote India’s national heritage.

Taking place in October each year, the festival promotes rural art and artisans, with 150 acts

playing in the most beautiful of settings.

Taj News & Spice: Taj News and Spice, the periodic publications of Taj Hotels Resorts and

Palaces encompass news, happenings and the wide array of innovative hospitality initiatives

within the Company and across the hotels. 'Taj News', a quarterly newsletter, provides an

overview and update on news, events and activities across the hotels. Spice', a quarterly

culinary guide, includes updates on the latest culinary offerings at the Taj restaurants and also

traces the continual endeavours of Taj to bring guests a new medley of gourmet

experiences.35

Private Digital Library: Taj offers a unique experience of private digital library, where one

can get a virtual view of all Taj hotels across the world.36

Yoga Retreats: Jiva Spas are hosting exclusive Yoga Retreats for the practise of Jiva Yoga,

of 4 and 7 days, at select Taj Hotels Resorts & Palaces from 12th January to 30th September

2009. The retreats are presently being offered at Jiva Spas at Taj Exotica, Goa; Rambagh

Palace, Jaipur; Umaid Bhavan Palace, Jodhpur; Taj Green Cove Resort, Kovalam and

Nadesar Palace, Benares. Each of these spas is a haven of solitude and perfect for the practice

of yoga. During the retreat, you can spend your free time between 11 a.m. to 3.30 p.m. having

a leisurely lunch, swimming, relaxing in the steam room or Jacuzzi; enjoying a massage at

the Jiva Spa, reading yoga books or journals, meditating or meeting with other guests. 37

TAJ HARI MAHAL: (Jodhpur)

35 http://www.tajhotels.com/press_room/taj_publications.htm36 http://www.leonardo.com/tajhotels/37 http://www.tajhotels.com/yoga.htm

21

Taj Hari Mahal: At a Glance38

Close to both the airport and the railway station, the Taj Hari Mahal, with the largest

convention centre in Jodhpur, offers elegant venues from the ornate Amar Mahal Hall with its

awe-inspiring chandeliers to the tastefully appointed boardrooms. You can treat your guests

to unique theme dinners that celebrate the culture and cuisine of the region. It spreads over

six acres of lush, landscaped gardens; this palace of the 21st century offers luxurious

refinement. With its Marwar style architecture and Moghul-inspired domes, enameled

murals, slender columns, and grand interiors, this is design that lives up to the fantasy. It

offers various products and services.

Accommodation39

There are 93 rooms including 3 suites. All the rooms have a tea and coffee maker, mini bar,

safe, colour TV, direct dial telephones, colour television with satellite programs, channel

music, hair dryer and dial up- wireless internet access.

• 48 Superior Garden Rooms

• 42 Superior Pool Rooms

38 http://www.tajhotels.com/Leisure/Taj%20Hari%20Mahal,JODHPUR/default.htm39 http://www.tajhotels.com/common_Pdf/Taj-Hari-Mahal-Jodhpur.pdf

22

• 3 Executive Suites

• The Superior Garden Rooms, charmingly ethnic and comfortable, offer a view of the

hotel's landscaped gardens. Interconnecting rooms are available on request.

• The Superior Pool Rooms, charmingly ethnic and comfortable, offer a view of the

swimming pool. Inter connecting rooms available on request

• The spacious Executive Suites have a sitting room with wooden flooring and a master

bedroom that leads out onto a stunning jharokha with a pleasant view of the shimmering blue

pool. The bathrooms have bath tubs with individual shower cubicles.

Restaurants & Bars

• Marwar, the multi-cuisine coffee shop with a Marwari theme, serves buffet breakfast, light

snacks, lunch and dinner. Live ghazals and sitar performances in the evenings enhance the

ambience.

Good Earth, the Chinese speciality restaurant, serves an array of authentic Chinese

delicacies.

• The Courtyard, a charming restaurant with a European ambience, serves Mediterranean

specialities.

• Barbeque, the specialty restaurant, serves the choicest grills and kebabs.

• Verandah Café, an extension of Marwar, is open for breakfast, lunch, light snacks &

dinner. The café opens to the pool deck that is a venue for live performances of Rajasthani

folk dances & puppet shows

• The Bar serves a choice of spirits, wines & exotic cocktails. The bar also serves imported

tea/coffees and cigars.

Taj Hari Mahal also offers a variety of exotic venues and theme dinners for gala evenings and

dining.

• Pal Haveli,

• Meherangarh Terrace Jharokha Theme Dinner,

• Marwar Terrace Theme Dinner,

23

• Champagne Brunch at Chessboard Lawns,

• Poolside Romantic Theme Dinner

• The Jhalamand Castle Theme

• Sand Dunes Dinner Experience

• Village Safari Meal

• Meherangarh Terrace Gala

Banquets

The hotel has 5 meeting rooms that can accommodate between 30 and 500 guests. The

maximum conference and banquet capacity for one event are 200 and 600 guests

respectively.

Services & Facilities

• Airport Transfer on request • Astrologer on Call • Baby-Sitting Arrangements • Barber

Shop • Beauty Salon • Business Centre • Business Facilities • Car Rentals • Currency

Exchange • Driver Dormitory • Facilities For the Physically Challenged • Health Club • Hotel

Safe • Internet/E-mail/Fax Facilities • Laundry Services • Library • Lounge • Luggage

Storage • Medical Services-Doctor On Call • Parking • Postal/Parcel Services • Room Service

• Shopping Arcade • Travel Desk -Ticketing, Tours •

The Health Club has separate facilities for ladies and gents. It has a steam room, massage

room, beauty parlour and gents salon, hot and cold shower, yoga room. Specialized massages

including a Swedish massage, balancing massage, lymphatic massage, aromatic massage,

back massage and back scrub are offered. The well equipped gymnasium has a cardio

vascular treadmill, stepper, cycle, weights.

Recreational Activities Complimentary

• Cricket - Lawn • Croquet • Darts • Folk Music performance • Gym • Hard Court Tennis •

Indian Classical Music performance • Jogging Track • Lawn Badminton • Lawn Volleyball •

Netball in the pool • Pool Polo • Pool Table • Puppet Show • Swimming classes • Swimming

pool with Jacuzzi • Table Tennis • Y oga and meditation

24

Recreational Activities- on payment

• Bingo • Cookery Workshops • Cocktail Making Workshops • Food Craft & Carvings. •

Kitty Party

Kids Activities

• Activity Centre complimentary • Board Games • Bread Craft • Card Making Workshop •

Collage Workshop complimentary • Crayon Creations complimentary • Entertainment with

Music complimentary • Face Painting Workshop • Flower Making • Garden Football

complimentary • Kanche (traditional game) complimentary • Kids Garden Equipments

Sightseeing

• City Tour (half day) to Mehrangarh Fort, Jaswant Thada,Umaid Bhawan • City Tour &

Shopping to Mehrangarh Fort, Jaswant Thada, Umaid Bhawan, Sardar market, Clock Tower

and Nai Sarak • Osian Sand Dune • Village Safari

NEW TARIFFS:40

Name of the

hotel

Suits (1 Sept 2008

to 31 Aug 2009)

Single Room Double Room Lux. Tax%

Taj Hari

mahal ,jodhpur

Superior Garden

View Room

Superior Pool

View Room

Deluxe Suite

12000

14000

22000

12000

14000

22000

10

10

10

40 http://www.tajhotels.com/Common_pdf/NewTariff.pdf

25

Chapter: 3

Data Tabulation

In order to fulfill the objectives of this research and to gather empirical evidences to derive

the desired results, the field study was carried on at Taj Hari Mahal Hotel, situated at

Residency Road, Jodhpur.

For this purpose, two different surveys were conducted for: Consumers and Manager

respectively in order to gain an insight about the topic and to identify the various strategies

adopted by Taj Hotel and their implications. These surveys helped in deducing the strengths,

weakness, opportunities and threats for Taj Hotel.

For the survey on Consumer Response the sample size was of 10 consumers, for the second

survey the sample size was one. Questionnaire method was used to collect data for these two.

However, a structured interview was carried out for the Manager so that an in depth

discussion could be carried out in order to gain more information about the research topic.

The various aspects of the field study are discussed below (in cue with the objectives) along

with the relative data.

RESPONSE OF MANAGER:

Set- A

1. What is your USP?

Answer: LUXURY is the current USP of Taj hotels. We have strategically positioned

ourselves amongst our competitors. We have well established brand name since last 100

years with value associated with it.

2. What makes you stand-out from your competitors?

Answer: A new initiative named EARTH.

• In an endeavour to reinstate its vision and efforts to boost sustainable tourism and

integrate environment management in all business areas, Taj Hotels Resorts and

Palaces presents EARTH (Environment Awareness & Renewal at Taj Hotels), a

project which reiterates the conscious effort of one of Asia’s largest and finest group

26

of hotels to commit to energy conservation and environmental management. EARTH

has received certification from Green Globe, the only worldwide environmental

certification program for travel and tourism.


certification system as an extension of its existing environmental policies. Taj Hotels has long

recognised that as a leader it has an important contribution to make and a responsibility to

demonstrate to others how they can be part of the fight against climate change.

Having implemented the Environmental Awareness and Renewal (EARTH) programme, a

project which began as a conscious effort to commit to energy conservation and other

sustainability strategies, Taj Hotels was one of the first groups to join the tourism industry in

its efforts.

• Laying greater emphasis on peripheral services.

• One of India’s oldest service band owned by Tatas, which is nearly 100yrs old.

• Customer feedback system (CFS)

3. Do you consider geographical location as your strength?

Answer: YES, location is one of the most important decisions for the hotel. TAJ HARI

MAHAL spread over six acres of lush, landscaped gardens; this palace of the 21st century

offers luxurious refinement. With its Marwar style architecture and Moghul-inspired domes,

enamelled murals, slender columns, and grand interiors, this is design that lives up to the

fantasy. Located close to the city markets, nearby guests can find much to see and experience.

The rich culture of Rajasthan- Desert Festival Jaisalmer, Nagaur Festival Magaur, Holi

Jodhpur, Dussehra Jodhpur, Mawar Festival, Jodhpur, Pushkar Festival Pushkar attracts

tourists. The puppet show and the regional dance provide incredible experience to the

tourists.

4. Does the hotel have a pool of skilled employees? If yes, is the morale of the

employees high?

Answer: The employees and the staff here is skilled enough suiting to the nature of the job

and the morale of employees is high. We have taken a number of steps to provide highly

personalized service to the discerning customer, including butler services. In order to take

care of the entire stay experience, we have also completely revamped its Concierge services.

27

The Centres of Excellence have been strengthened considerably to train staff to meet the

exacting standards of a truly luxury hotel. Tata Business Excellence Model (TBEM) will play

a significant role in raising the bar of service provided. The TBEM has been rolled out in all

hotels.

5. Does the Hotel manage its inventory efficiently?

Answer: Yes, the management of the inventory is good. We have installed inventory

software; our inventory systems are designed that desires a complete control over stock levels

and inventory tracking. Our systems are powerful and easy-to-use software. We continually

enhance our software and update periodically. They even follow the process of forecasting

the inventory requirement.

6. Has the hotel & the staff demonstrated the ability to adapt the changes?

Answer: YES, from time to time the hotel and the staff have adopted changes willingly

taking into consideration the changes in the-

Tastes and preferences of the customers

Government policies, etc.

7. What is the major source of your revenue and profit?

Answer: “Local Events” with the mixture of rich heritage culture of Rajasthan is one of the

major sources of our revenue and profits.

8. What are the innovative ideas you have recently come up with?

Answer: Keeping in mind the changes in the habits, taste and the preferences of the

customers we try to come up with innovative ideas which appeal customers. Like,

MARWAR, the multi-cuisine coffee shop with a Marwari theme, serves buffet

breakfast, light snacks, lunch and dinner. Live ghazals and sitar performances in the

evenings enhance the ambience.

Jodhpur RIFF: Taj Hotels, Resorts & Palaces is the main sponsor for the annual

Jodhpur RIFF music festival, as part of its campaign to protect and promote India’s

national heritage. Taking place in October each year, the festival promotes rural art

and artisans, with 150 acts playing in the most beautiful of settings.

28

EARTH: In an endeavour to reinstate its vision and efforts to boost sustainable

tourism and integrate environment management in all business areas, Taj Hotels

Resorts and Palaces presents EARTH (Environment Awareness & Renewal at Taj

Hotels), a project which reiterates the conscious effort of one of Asia’s largest and

finest group of hotels to commit to energy conservation and environmental

management. EARTH has received certification from Green Globe, the only

worldwide environmental certification program for travel and tourism.

Cultural and Heritage Experience: Taj Hari offers variety of exotic venues and

theme dinners for gala evenings and dining tinged with cultural and heritage

experience at like-

a) Pal Haveli,

b) Meherangarh Terrace Jharokha Theme Dinner,

c) Marwar Terrace Theme Dinner,

d) Champagne Brunch at Chessboard Lawns,

e) Poolside Romantic Theme Dinner

f) The Jhalamand Castle Theme

g) Sand Dunes Dinner Experience

h) Village Safari Meal

• Reward programmes: If one often stays or dines at the Taj, the Taj InnerCircle is

the perfect programme. As a frequent guest at the Taj he/she will earn points and

enjoy a host of exciting benefits when one uses their services around the world. The

Taj Advantage Plus is a programme designed for valuable corporate bookers.

Bookings at the Taj will earn reward points and special offers from the Taj. The Taj

Alliance Preferred Partner Membership Programme (TAPP Me) is meant for our

valued partners in the travel trade.

• Yoga Retreats: Jiva Spas are hosting exclusive Yoga Retreats for the practise of Jiva

Yoga, of 4 and 7 days, at select Taj Hotels Resorts & Palaces from 12th January to

30th September 2009. The retreats are presently being offered at Jiva Spas at Taj

Exotica, Goa; Rambagh Palace, Jaipur; Umaid Bhavan Palace, Jodhpur; Taj Green

Cove Resort, Kovalam and Nadesar Palace, Benares. Each of these spas is a haven of

solitude and perfect for the practice of yoga. During the retreat, you can spend your

free time between 11 a.m. to 3.30 p.m. having a leisurely lunch, swimming, relaxing

in the steam room or Jacuzzi; enjoying a massage at the Jiva Spa, reading yoga books

or journals, meditating or meeting with other guests

29

9. How does the company withstand international competition?

Answer:

• By en-cashing upon the cultural and heritage diversity of Rajasthan.

• By coming up with new innovative ideas.

• Effective utilization of core competencies and skilled human resources.

• Venturing into such areas which have not been taken into considerations by our

competitors.

• Laying more emphasis on peripheral services.

10. Do have tie-ups with airlines, credit cards and cellular companies?

Answer: YES, we do have tie ups with air lines, credit cards and cellular companies. Apart

from that we have our air line services by the name of JET AIRS- it is an executive jet

service that offers luxurious experience in the comfort.

Airlines- Jet Airways, Kingfisher Airlines

Credit Cards companies- HSBC

Cellular companies- Tata Indicom & Vodafone

11. What are the various strategies adopted by you?

Answer: Marketing strategy of Taj Hari Mahal:

Segmentation Income and Lifestyle

Target Luxury Loving and High Income Group

Position Luxury Hotels

Product Mix: Hotel stays innovation in peripheral services rather than core services.

Price mix: The diverse nature and character of dishes, involvement of cost and spending

power of customers.

Place mix: location of the hotel is the most important business decision for the hotels.

Promotion mix: Advertisements, publicity, word-of-mouth promotion, online marketing and

telemarketing are the components of marketing strategy.

30

People: The hotel trains its people regularly, especially the front line professionals.

Physical evidence: LOBBY- It being the first and the last part of the hotel that the guests see,

thus it should be well designed also to ensure that the customer returns again the room should

be comfortable and should have made his stay hassles free.

Process: major service encounter the extremely delight or disappoint are:

• Check –in

• Bell person carrying the luggage to the room.

• Food

• Wake-up call

• Check-out

We plan our process in such a way that there are minimum glitches and errors.

Various strategies adopted by TAJ HARI MAHAL:

a) Premium Pricing Strategy: TAJ HARI follows Premium pricing strategy popularly

known as prestige, prominence, "Connoisseur" pricing strategy. It is the strategy of

consistently pricing at, or near, the high end of the possible price range to help attract

status-conscious consumers. People will buy a premium priced product because:

i. They believe the high price is an indication of good quality;

ii. They believe it to be a sign of self worth - "They are worth it" - It authenticates their

success and status. It is a signal to others that they are a member of an exclusive

group.

iii. Moreover they have well established brand image since last 100 years. The value is

associated with the brand name.

b) Sustainability Strategy: In an endeavour to reinstate its vision and efforts to boost

sustainable tourism and integrate environment management in all business areas, Taj

Hotels Resorts and Palaces presents EARTH (Environment Awareness & Renewal at

Taj Hotels), a project which reiterates the conscious effort of one of Asia’s largest and




31


certification system as an extension of its existing environmental policies. Taj Hotels

has long recognised that as a leader it has an important contribution to make and a

responsibility to demonstrate to others how they can be part of the fight against

climate change. Having implemented the Environmental Awareness and Renewal

(EARTH) programme, a project which began as a conscious effort to commit to

energy conservation and other sustainability strategies, Taj Hotels was one of the first

groups to join the tourism industry in its efforts.

c) Growth strategy/Expansion strategy: Taj Group of Hotels is following growth

strategy it has already ventured overseas with 15 international hotels and further it is

planning to explore some new areas. Taj Group plans to add around 12 hotels in the

next three years in the business hotel segment. Recently in 2004 it has extended its

footprints in China and existing business in middle-east. This is for the first time; any

Indian hotel company is planning to set up a base in China.

d) Differentiation Strategy: TAJ focuses on class leadership rather than on cost

leadership. They believe in giving value to the customers. Even the customers are not

bothered about the price because they receive desired value and services. They

provide unique features to the customers both- tangible and intangible.

e) Sub-Branding Strategy: The usual trend in the international hospitality industry is to

have distinct brands for each segment that a hotel group operates in. This strategy

ensures that the brand equity is not diluted when the brand enters the business

segment or economy hotels segment. But the Taj brand has not treaded this path till

now. But lately, this company has realized the advantages of separating the premium

parent brand names of Taj from all operations and to restrict the brand names only to

ultra premium hotel properties. The company has decided to follow a sub-brand

strategy where by the business hotels will run under a separate hotel brand name but

endorsed by the Taj brand. Taj Group also plans to use its Gateway brand to bolster

up the budget hotel segment. This strategy ensures that Taj preserve its brand equity

and also facilitates the expansion to other segments by endorsing the sub-brands with

their parent brand names.

f) Product up-gradation/restructuring strategy: IHCL continues to invest in

renovation and re-launch of key / brand defining properties. In the last financial year

IHCL upgraded rooms at the Taj Mahal Palace & Tower, Mumbai and Taj West End,

Bangalore the lobby and public areas of Taj Lake Palace, Udaipur and Rambagh

32

Palace, Jaipur were also renovated to provide a luxurious sense of arrival. The Sea

Lounge and Harbour Bar at Taj Mahal Palace & Tower, Mumbai was re-launched,

while a new Vietnamese restaurant 'Blue Ginger' was opened in Taj West End,

Bangalore, etc.

g) Balanced Scorecard Strategy: The use of the Balanced Scorecard (BSC) has been

strengthened across the organization. It is used as the key strategy deployment tool.

The key strategic objectives are captured in the BSC and cascaded across the units &

departments. All the SBU scorecards are aligned with the corporate scorecard, as well

as the HR & Sales & Marketing scorecard.

h) Tata Business Excellence Model (TBEM): In order to intensify the drive for

Business Excellence, IHCL conducted Internal Assessments based on the Tata

Business Excellence Model for Luxury, Leisure, and Business SBUs as well as for

Taj SATS Air Catering Limited. The Luxury Division has also applied for External

Assessment, which is to be facilitated by Tata Quality Management Services. Based

on the External Assessment (2003) feedback report and the feedback from the Internal

Assessment, action plans to improve processes which finally impact the overall

organizational effectiveness, have been drawn out and worked upon.

i) TOP: IHCL’s operational improvement programme, TOP (Total Overdrive for

Profits), being managed jointly with McKinsey & Company, has made significant

progress since its inception in July 2002. The programme has identified improvement

ideas across areas like Rooms, Banquets, Purchase, Engineering, Wines, Mini-bar, In-

room dining, Chambers and several other operational areas. In addition, the TOP team

has been working with a cross functional team to develop a strategy for maximising

revenues from key corporate accounts. The focus of the TOP team for the next few

months will be in ensuring that all identified improvement ideas are fully

implemented. In addition, the team will continue to focus on cost areas and address

new areas like restaurant revenues and capital expenditures.

j) Strategy Muse: TAJ has also adopted the marketing strategies formulated by MUSE

is a marketing consultancy agency in order to boost its income and cut cost.

12. What is your customer retention performance since last 3 yrs?

Answer: This information was not disclosed.

13. Do you consider financial resources as you strength?

33

Answer: Taj Hotels is one of India’s oldest service bands owned by Tatas, which is nearly

100yrs old. The Taj, a symbol of Indian hospitality, completed its centenary year in 2003.

IHCL operate in the luxury, premium, mid-market and value segments of the market. Its USP

is LUXURY. Taj Hotels Resort and Palaces comprises more than 60 hotels in 45 locations

across India with an additional 15 international hotels in the Malaysia, United Kingdom,

United States of America, Bhutan, Sri Lanka, Africa, the Middle East and Australia. Recently

Taj Hotels Finished a $100 Million Renovation at The Pierre on New York's Fifth Avenue.

Taking into consideration the above points it can be inferred that Taj possesses strong

financial resources.

14. Do you consider niche target segment as your strength?

Answer: YES, our target segment is upper class- (business class, foreign tourist, affluent

families) and our USP is LUXURY which is designed taking into care tour USP; it makes our

segment niche and we consider it as our major strength.

15. Other strengths?

Answer: Demand-supply gap: sometimes our hotel faces a mismatch between the demand

and supply of rooms leading to higher room rates and occupancy levels. This is one of the

major sources of our revenue.

Government support: The government has realized the importance of tourism and has

proposed a budget of Rs. 540 crore for the development of the industry. The priority is being

given to the development of the infrastructure and of new tourist destinations and circuits.

The Department of Tourism (DOT) has already started the "Incredible India" campaign for

the promotion of tourism in India.

Increase in the market share: Our market share in international tourism and hospitality

market is expected to increase over the long-term. New budget and star hotels are being

established both in India and oversees.

SET- B

1. Are there any complains reported by your customers?

Answer: Sometimes Internet connectivity is not good.

2. In what areas the hotel is not able to recover cost?

34

Answer: At times we are not able to recover costs when storage and fixed cost is high during

off season blues (stagnancy).

3. Is your fixed-cost and storage-cost high?

Answer: Our average fixed cost and storage cost is satisfactory. It is sometimes high during

off season blues.

4. Are you loosing on profits due to low occupancy?

Answer: YES, during the time of- off season blues low occupancy pulls down our profits.

5. Do you think internal security & unrest hamper your foreign tourist arrival rate?

Answer: YES, after the terror attack at Taj Mumbai we consider the fact that internal security

and unrest hamper our foreign tourist arrival rate and is also susceptible to political events

but, we are working to make our internal security system strong and transparent.

6. Is there need of training for customer service staff?

Answer: YES, we conduct training programmes on regular basis for our staff and employees

in order to keep them update with changes both internal and external. Staff and employees are

sent for internships in hotels at different locations.

SET- C

1. Is there any area which has not yet been taken care of by your competitors?

Answer: Still we have to harp upon some of the international best practices.

2. Do you consider increase in disposable income as an opportunity?

Answer: YES, Owing to the rise in income levels, Indians have more spare money to spend,

which is expected to enhance leisure tourism and hotel industry. While there has been much

talk about record number of foreign tourist arrivals, very little has actually been said or done

about domestic tourism, which, according to our estimates, has registered a 40% annual

growth in the last three years and is currently estimated at 300 m travellers. Per capita income

grew by an impressive 7.1% in 2005, while Gross Domestic Savings touched an all time high

of 28%. Significantly, the present-day consumption boom in India has been influenced more

by higher disposable income rather than lower savings. This is good news, as income induced

35

spending is likely to sustain itself for a longer period. Higher disposable incomes are also

expected to enhance the concept of travelling for leisure.

3. Do you consider change in customers’ habits, taste and preference an opportunity?

Answer: Yes, due to increase in disposable income of people and change in lifestyle of

people there are lots of opportunities available in Hotel industry which can be en-cashed

upon. Moreover the attitude of people towards life is changed, now people are more inclined

toward fun and leisure.

4. What are your views about open sky benefits?

Answer: The opening up of the aviation industry in India brings exciting opportunities for the

hotel industry (airlines transport around 80% of international tourists). Increased airline

activity has stimulated demand and has helped to improve India's troubled infrastructure.

Increased competition among airline companies will further lead to the development of new

and improved services. Also the open skies policy has benefited both international and

domestic travel.

5. Do your consider growth of tourism industry as an opportunities?

Answer: YES, the travel and tourism industry is growing at a greater pace because it brings in

huge chunk of revenue and foreign currency to our country. There are lots of areas and

opportunities still unexplored, which can be en-cashed upon.

6. Surprising competitors by coming up with new innovative ideas can be considered an opportunity?

Answer: YES, from time to time we have utilized this opportunity in different framework like-

Surprises at Taj: They offer different packages – Stay a bit longer, book early get more, Taj

Club and suit surprises, Business Edge, Weekend Saver, value Vouchers, Taj fly and Stay.

Reward programmes: If one often stays or dines at the Taj, the Taj InnerCircle is the

perfect programme. As a frequent guest at the Taj he/she will earn points and enjoy a host of

exciting benefits when one uses their services around the world. The Taj Advantage Plus is

a programme designed for valuable corporate bookers. Bookings at the Taj will earn reward

points and special offers from the Taj. The Taj Alliance Preferred Partner Membership

Programme (TAPP Me) is meant for our valued partners in the travel trade.

36

SET-D

1. Do you consider fluctuations in international tourist arrival as a major threat?

Answer: YES, the total dependency on foreign tourists can be risky, as there are wide

fluctuations in international tourism. Domestic tourism needs to be given equal importance

and measures should be taken to promote it.

2. Do your consider event risk as a threat?

Answer: YES, dependency on foreign tourism can be a double-edged sword as travel

decisions are based on global patterns and events that happen elsewhere can have serious

impact the performance. Events like 9/11, Mumbai Terror attack, SARS outbreak and

Afghanistan and Iraq wars have severely impacted the tourism industry in the past and the

threat remains.

3. Do you think any changes in policies of government and tourism industry will affect

your hotel industry?

Answer: One of the features of environment is that it is dynamic and multifaceted i.e. certain

change in environment may be opportunities for some and for others it may be a threat.

Similarly change in government policy which is the part of environment can be a threat or

opportunity depending upon the impact on the hotel.

4. In today’s changing scenario- do you agree that hotel industry is haunted by

terrorism and has become a major threat (for your hotels)?

Answer: YES, definitely terrorism is a major and serious threat to whole hotel industry. After

terror attack at Mumbai Taj it is explicit that hotel industry is haunted by terrorism.

5. Do you consider retention of key staff critical?

Answer: Yes, it can be a critical issue for our organisation because of new job avenues and

opportunities emerging in the market.

6. Do you consider international brand as a threat to your organisation?

37

Answer: YES, there are many international brands that are capturing Indian Hotel market. In

today’s changing scenario the competition in Hospitality industry is going international.

There are many new brands who have ventured into Indian hotel industry. This may also

erode the loyalty of the current customers.

7. Other Threats?

Answer: Poor facilitated airports, inadequate road infrastructure, high taxation levels and a

bureaucratic visa processing system.

RESPONSE OF CONSUMERS: Sample size was 10 out the 3 were from business class, 2

foreigners, 5 localities.

1. Are you aware of Taj Hari Mahal Hotel, Jodhpur? Have you visited TAJ even once?

Answer: a) Yes b) No

100%

YesNo

Figure: 1

Observation: 100% of the respondent said that they were aware about Taj Hari Mahal Hotel,

Jodhpur.

2. Which is the major service encounter that extremely delighted and disappointed you?

Answer: The services that delighted:

• Jiva Spa

38

• Yoga Retreats• Reward programme scheme• Beverages• Marwari theme: The multi-cuisine coffee shop with a Marwari theme, serves buffet

breakfast, light snacks, lunch and dinner. Live ghazals and sitar performances in the evenings enhance the ambience.

• Ambience- Rich cultural and heritage ambience which gives palatial effect.• Jodhpur RIFF -music festival.• Surprises at Taj scheme: They offer different packages – Stay a bit longer, book early

get more, Taj Club and suit surprises, Business Edge, Weekend Saver, value Vouchers, Taj fly and Stay.

• Different Themes Dinner.

The services that disappointed:

• Internet connectivity is not good.• The lead time between order placed and order received is high.• The food is made keeping in mind the likings/taste of foreigners not catering to the

taste of Indians. (spicy)• Price and value for the food and services provided is not rational. (food is expensive)

3. Rate – 1) price and value (tariff rate), and 2) taste & quality of the food provided 3) services by the staff and employees on the Linkert scale?

Answer: a) Price and value for the food

Excellent Very Good Good Fair Poor0123456789

10

Chart Title

Figure: 2 ,Y- Axis represents total number of respondents.

39

Observations: The opinion of people was divided, 60% of the respondent said that the price

and the value of the food and services provided was very good another 20% said it was Good,

10% rated it as Fair one rated it as excellent.

b) Taste &Quality of the food provided:


10

Chart Title

Figure: 3 Y-Axis represents total no of respondents.

Observations: 30% of the respondents said that the quality of the food was very good and

other 40% said it was good, remaining 30% rated it as fair.

c) Service by the staff and the employees:


10

Chart Title

Figure: 4

40

Y-Axis represents total no of respondents.

Observations: None said that the service provided was excellent, 20% said it was fair, 20%

said it was poor, 20% rated very good and 40% rated as good.

4. Do you think that the employees and the staff are skilled or do they require customer service training?(rate them)

Answer:


1

2

3

4

5

6

7

8

9

10

Figure: 5

Y-Axis represents total no of respondents.

Observations: Majority of the respondents said that the employees and the staff were skilled.

(50% supported this view).

5. What is the frequency of your visit?

Answer: The opinion was distributed 3 business class respondents said that they come every

year. 2 foreigners said they have come for the first time. Remaining 3 were localities- out of

five- 2 come every 2 months, 1 said every 6 months.

6. According to you what are the opportunities Taj Hotel en-cash upon?

Answer: a) Increase in disposable income.

b) Change in lifestyle, taste and preferences.

41

c) Growing tourism and hotel industry

7. According to you what is the unique feature of Taj Hari Mahal which maintains its exclusivity?

Answer:

Initiative of EARTH.

Yoga Retreat

Jodhpur RIFF

Marwari Theme

Any other (mention)

EARTH Yoga retreat Jodhpur RIFF Marwari Theme Any other0123456789

10Chart Title

Figure: 6

Y- Axis represents the total no of respondents.

Observations: out of 10 respondents 5 rated EARTH as the unique feature, 2 as Marwari

Theme and one each rated Yoga retreat and Jodhpur RIFF as unique feature.

This was a short account of the field study conducted for the purpose of this research. The

interview and the questionnaires were designed keeping in mind the various objectives and

the data tabulation has also been done in correspondence with the objectives so as to maintain

the focus and the very purpose of the research. The interpretation of the data shall now be

discussed in the next chapter.

Chapter: 4

42

Data Analysis

After the detailed account of the field study and the data tabulation lets look into the

interpretation as to what does the data so calculated implies to.

Objective 1: To identify the strategies adopted by TAJHARI MAHAL HOTEL.

There are various strategies which have been adopted by Taj Hotel from time-to-time in order

to revitalize there brand. Below is the list of various strategies adopted by them:

a) Premium Pricing Strategy: TAJ HARI follows Premium pricing strategy popularly

known as prestige, prominence, "Connoisseur" pricing strategy. It is the strategy of

consistently pricing at, or near, the high end of the possible price range to help attract

status-conscious consumers. People will buy a premium priced product because:

They believe the high price is an indication of good quality.

They believe it to be a sign of self worth - "They are worth it" - It authenticates their

success and status. It is a signal to others that they are a member of an exclusive

group.

Moreover they have well established brand image since last 100 years. The value is

associated with the brand name.

a) Sustainability Strategy: In an endeavour to reinstate its vision and efforts to boost

sustainable tourism and integrate environment management in all business areas, Taj

Hotels Resorts and Palaces presents EARTH (Environment Awareness & Renewal at

Taj Hotels), a project which reiterates the conscious effort of one of Asia’s largest and





certification system as an extension of its existing environmental policies. Taj Hotels

has long recognised that as a leader it has an important contribution to make and a

responsibility to demonstrate to others how they can be part of the fight against

climate change. Having implemented the Environmental Awareness and Renewal

(EARTH) programme, a project which began as a conscious effort to commit to

energy conservation and other sustainability strategies, Taj Hotels was one of the first

groups to join the tourism industry in its efforts.

43

b) Growth strategy (Expansion) strategy: Taj Groups of Hotel is following growth

strategy it has already ventured overseas with 15 international hotels and further it is

planning to explore some new areas. Taj Group plans to add around 12 hotels in the

next three years in the business hotel segment. Recently in 2004 it has extended its

footprints in China and existing business in middle-east. This is for the first time; any

Indian hotel company is planning to set up a base in China.

c) Sub-Branding Strategy: The usual trend in the international hospitality industry is to

have distinct brands for each segment that a hotel group operates in. This strategy

ensures that the brand equity is not diluted when the brand enters the business

segment or economy hotels segment. But the Taj brand has not treaded this path till

now. But lately, this company has realized the advantages of separating the premium

parent brand names of Taj from all operations and to restrict the brand names only to

ultra premium hotel properties. The company has decided to follow a sub-brand

strategy where by the business hotels will run under a separate hotel brand name but

endorsed by the Taj brand. Taj Group also plans to use its Gateway brand to bolster

up the budget hotel segment. This strategy ensures that Taj preserve its brand equity

and also facilitates the expansion to other segments by endorsing the sub-brands with

their parent brand names.

d) Differentiation Strategy: TAJ focuses on class leadership rather than on cost

leadership. They believe in giving value to the customers. Even the customers are not

bothered about the price because they receive desired value and services. They

provide unique features to the customers both- tangible and intangible.

e) Product up-gradation/restructuring strategy: IHCL continues to invest in

renovation and relaunch of key / brand defining properties. In the last financial year

IHCL upgraded rooms at the Taj Mahal Palace & Tower, Mumbai and Taj West End,

Bangalore, The lobby and public areas of Taj Lake Palace, Udaipur and Rambagh

Palace, Jaipur were also renovated to provide a luxurious sense of arrival. The Sea

Lounge and Harbour Bar at Taj Mahal Palace & Tower, Mumbai was re-launched,

while a new Vietnamese restaurant 'Blue Ginger' was opened in Taj West End,

Bangalore, etc.

f) Balanced Scorecard Strategy: The use of the Balanced Scorecard (BSC) has been

strengthened across the organization. It is used as the key strategy deployment tool.

The key strategic objectives are captured in the BSC and cascaded across the units &

44

departments. All the SBU scorecards are aligned with the corporate scorecard, as well

as the HR & Sales & Marketing scorecard.

g) Tata Business Excellence Model (TBEM): In order to intensify the drive for

Business Excellence, IHCL conducted Internal Assessments based on the Tata

Business Excellence Model for Luxury, Leisure, and Business SBUs as well as for

Taj SATS Air Catering Limited. The Luxury Division has also applied for External

Assessment, which is to be facilitated by Tata Quality Management Services. Based

on the External Assessment (2003) feedback report and the feedback from the Internal

Assessment, action plans to improve processes which finally impact the overall

organizational effectiveness, have been drawn out and worked upon.

h) TOP: IHCL’s operational improvement programme, TOP (Total Overdrive for

Profits), being managed jointly with McKinsey & Company, has made significant

progress since its inception in July 2002. The programme has identified improvement

ideas across areas like Rooms, Banquets, Purchase, Engineering, Wines, Mini-bar, In-

room dining, Chambers and several other operational areas. In addition, the TOP team

has been working with a cross functional team to develop a strategy for maximising

revenues from key corporate accounts. The focus of the TOP team for the next few

months will be in ensuring that all identified improvement ideas are fully

implemented. In addition, the team will continue to focus on cost areas and address

new areas like restaurant revenues and capital expenditures.

i) Strategy Muse: TAJ has also adopted the marketing strategies formulated by MUSE

is a marketing consultancy agency in order to boost its income and cut cost.

Objective 2: To identify the opportunities and threats for Taj Hari Mahal in the

market, and analyse its strengths and weaknesses.

The following strengths, weakness, opportunities and threats for TAJ HARI MAHAL

HOTEL have been identified during the course of research with the help of the responses

received in the field study. A few points have been added through the analysis of the external

environment done on the basis of the doctrinal research. Thus the analysis in the present case

will involve the identification of Strengths, Weaknesses, Opportunities and Threats based on

the primary and secondary data collected.

SWOT Matrix has been plotted below on the basis of field study done.

45

Strengths:

1) Well established brand image since last 100 yrs.

2) USP- Luxury 3) Niche target segment (luxury loving &

high income group)4) Strategically placed in Jodhpur5) Personalised approach in service6) Skilled employees with high morale7) Efficient inventory management8) High degree of adaptability to changes9) “Local Events” with a mixture of rich

heritage culture of Rajasthan10) New innovative ideas- Jodhpur RIFF,

Marwar Theme, EARTH, and Yoga retreat, etc.

11) Greater emphasis on peripheral services.12) Customers feedback system (CFS) 13) Tie-ups with airlines, cellular and credit

card companies.14) High financial back up15) Strong promotional activities16) Demand-supply gap17) Increase in market share18) High brand recall & awareness19) Well conceived functional area strategy20) Regular training programmes21) Less number of competitors in Jodhpur.

Weaknesses:

1) Issues related to internet connectivity

2) High fixed cost

3) High storage cost

4) Loosing on profits due to low occupancy

5) Off-season blues

6) Internal security & unrest hamper tourist

arrival

Opportunities:

1) International best practices

2) Increase in disposable income

3) Change in customers’ habits, taste, and

preferences

4) Open sky benefits

5) Growth of tourism industry

6) Government’s support for tourism

industry

7) Surprise packages

Threats:

1) Government regulation with respect to

tourism industry

2) Fluctuation in international tourist arrival

rate

3) Terrorism

4) New emerging international brands

5) Event risk

6) Retention of key staff

7) Poor facilitated airports, inadequate road

infrastructure, high taxation levels and a

bureaucratic visa processing system.

46

An overview of the SWOT Matrix shows a very favorable position for Taj Hari Mahal,

Jodhpur. The hotel has immense strength to make most of the opportunities. There are

weaknesses but they do not negate the strengths or the ability of the organization to have

substantial growth. As the weaknesses show the Organization is very new in the city and is at

a nascent stage.

One of the most favourable factors for TAJ HARI MAHAL HOTEL is its brand image, brand

awareness and high brand recall. These factors have played a major role in building up its

position. According to them hotel stays innovation in peripheral services rather than core

services, therefore they lay greater emphasis on peripheral services. The demographic and

geographical location of TAJ HARI MAHAL HOTEL is of great advantage to them and

when linked up with opportunities of change in habits, tastes and preferences of customers

can bring to them a huge chunk of revenues and profits.

The employees and staff of TAJ HOTEL are skilled and demonstrate high morale. They

even have personalised approach towards service and demonstrate high degree of ability to

change. These strengths can be utilised in curbing the high storage cost and fixed cost. The

skilled employees can work efficiently in this direction.

“LOCAL EVENT” coloured in rich diversified heritage culture of Rajasthan can be

conducted during off –season blues in order to attack foreign tourists. In this way they can

recover on losses due to low occupancy.

TAJ has always tried to come up with new innovative ideas from time to time, like

JODHPUR RIFF, Marwari Theme and specially Yoga Retreats which provides the

customers incredible experience, greater emphasis on innovative ideas and seizing in the

opportunity of increase in disposable income and change in lifestyle and preferences of

customers will not only increase the overall profitability of TAJ but would also help in

countering the competitive advantage of the competitor.

TAJ Hotel can address to the threats of increasing Terrorism and Event Risk by laying

greater emphasis on peripheral services and activities, as they are already doing that they can

work upon refining them. By adopting international best practices and efficient utilization of

existing resources they can definitely make an attempt do away with the threat of fluctuation

in international tourist arrival rate.

47

There effective customer feedback system (CFS) and tie-ups with airlines, cellular and credit

card companies has enhanced their market share. Initiating reward programmes for staff and

employees will help retaining them, thereby will reduce and can even eliminate the threat of

retaining key staff.

If we observe the responses of the consumers we’ll find that 100% of the respondent stated

that they are aware of the TAJ HARI MAHAL existing in Jodhpur and all of them have

visited TAJ atleast once. This response demonstrates that they have high brand recall and

awareness.

The number of services that delighted the respondent is more than the services which

disappointed them, this show a favourable position for TAJ HARI Hotel. By improving on

these disappointing services they efficiently cater to the needs of the customers.

TAJ HARI follows a Premium Pricing Strategy and Differentiation Strategy; where value is

associated with its brand name, they provide unique experience to their customers. People are

attracted towards TAJ because of the luxury associated with its brand name and people who

love luxury don’t mind paying for it. 60% of the respondent rated the price and value of the

food and service as very good. Taste and quality of the food provided is also rated as good

almost 70% rated it as good.

TAJ HARI MAHAL HOTEL considered BALSAMAND and PARK PLAZA as there major

competitor in Jodhpur. They have devised various strategies to withhold the competition.

Firstly, they are well established brand with VALUE associated with their brand name.

Secondly, laying more emphasis on peripheral services, thirdly, coming up with new

innovative ideas, fourthly, and venturing into areas which have not yet been taken care of by

them.

After analysing the Strength, Weaknesses, Opportunities and Threats- we can identify and

plot the strategies adopted by them:

48

Opportunities

(Growth/offensive Strategy)

Weaknesses Strengths

(Defensive Strategy)

Threats

“S-O” Strategy: TAJ HARI is currently following growth strategy or offensive strategy by

utilizing its strengths to address an opportunity against it major competitor in Jodhpur i.e.

BALSAMAND and PARK PLAZA.

“W-T” Strategy: TAJ HARI is following defensive strategy and taking some corrective

action to eliminate and minimize the weakness of internal security so as to minimize the

threat of Terrorism.

Objective 3: To generate/suggest an alternative course of action/strategies for the firm

using SWOT matrix analysis.

a) Technology: Technology initiatives have provided new opportunities for the

hospitality industry. TAJ should focus on superior services, right technology and

blend of both. Many fear that technology would detract from the hotelier's ability to

offer the personal service that is the industry's landmark, but technology innovation

has provided an opportunity to approach guests in new and exciting ways.

Technology initiatives have helped in the standardisation of services. Moreover, if

one looks at the hotel industry with a wide-angle lens, it can be noticed that today,

technology is not only about convenience and comfort. It has indeed become the 'need

49

of the hour' as high-tech equipment in hotels has become a perquisite today. Just to

give an example, the quality of a hotel's internet service has become an integral way

by which a hotel can differentiate itself. Today, a large number of people look for Wi-

Fi connection in hotels to enable internet connection for their laptops. Hoteliers fulfill

such requirements of their customers by taking various initiatives. There is no doubt

that superior guest services are, and will always define the success of a property.

Appropriate technology would also be a strong factor in deciding whether a property

does well or not.

b) Efficient Inventory Management: Proper strategies should be formulated which

help in maintenance of optimum level of inventory. It will also help in reducing its

fixed cost and storage cost.

c) Promotional Activities: More aggressive promotional activities should be carried

out by the hotel. Schemes like smart card, discounts, value packs, price offers, and

free-coupons should be more frequent and should be well advertised as well.

d) Off-season blues strategy: During the off-season blues they should lay greater

emphasis on “LOCAL EVENTS” and should try and come up with new innovative

ideas which will help them recovering cost due to low occupancy.

e) Environment Strategies: The environmental movement is not new to the hotel

industry. TAJ HARI HOTEL should adopt environmental programmes as a part of

their environmental strategy in order to reduce energy use, water use, waste

generation, and more recently greenhouse gas emissions. They should place customer-

focused initiatives such as towel and linen reuse programs. The major motivation for

them is cost controls in the face of rising utility rates. Utilities account for 5-15% of

total operating costs for hotels, and cost-effective environmental management

strategies can cut property-wide consumption up to 30% without major investments in

physical plant, and up to 75% in targeted use areas. Though TAJ has made an

initiative in this direction with the new concept of EARTH as discussed earlier, but

there is a need to lay greater emphasis on environmental strategies.

50

Chapter: 5

Conclusion & Suggestions

Conclusion:

An important part of any strategy planning would include identifying the environment and

understanding its aspects in a holistic sense. A scan of the internal and external environment

is an important part of the strategic planning process. Environmental Factors have a major

role to play in the performance of a business organization and thus Environmental Scanning,

Appraisal and Analysis has a major role to play in strategy formulation. SWOT Analysis is a

significant tool as it helps combine internal and external environmental factors to provide an

overview of the business scenario and help formulate the appropriate strategies. It provides

information that is helpful in matching the firm's resources and capabilities to the competitive

environment in which it operates.

After conducting the SWOT analysis of TAJ GROUP OF HOTELS we can identify the

current position and performance of the orgainsation. These strengths, weaknesses,

opportunities and threats will help to formulate appropriate strategies for the organisation.

There is huge potential and definitely there is lot of revenue in the Hospitality Industry, and

TAJ HOTELS have the requisite strengths to milk the opportunities before it. It has almost

unbeatable competitive advantages, huge potential and high growth rates. It is a well

established brand with values associated with it since last 100 years. It provides incredible

and unforgettable experience to its customers which become a sweet memory for them. It has

lots of opportunities coming in its way which if explored bring them to the “ZENITH”.

Various strategies have been adopted by them from time to time in order to retain their

customers and maintain their brand image, like – Premium price strategy, differentiation

strategy, strategy muse, sustainability strategy, product up-gradation strategy, growth strategy

and many more.

IF they harp upon the opportunities available in the environment along with the utilization of

their existing strengths they can minimize their threats and weaknesses. TAJ HARI needs to

focus on inventory management, and aggressive promotion to enhance its business and claim

them self as a leader in the untapped market of hospitality industry, simultaneously

expanding into wider international markets for holistic growth.

51

Suggestions:

From the above data tabulation and analysis we can observe that TAJ HARI has adopted

many strategies which have lead to its success, but still there are some areas on which it can

work upon:

a) Technology: Technology initiatives have provided new opportunities for the

hospitality industry. TAJ should focus on superior services, right technology and

blend of both. Many fear that technology would detract from the hotelier's ability to

offer the personal service that is the industry's landmark, but technology innovation

has provided an opportunity to approach guests in new and exciting ways.

Technology initiatives have helped in the standardisation of services. Moreover, if

one looks at the hotel industry with a wide-angle lens, it can be noticed that today,

technology is not only about convenience and comfort. It has indeed become the 'need

of the hour' as high-tech equipment in hotels has become a perquisite today. Just to

give an example, the quality of a hotel's internet service has become an integral way

by which a hotel can differentiate itself. Today, a large number of people look for Wi-

Fi connection in hotels to enable internet connection for their laptops. Hoteliers fulfill

such requirements of their customers by taking various initiatives. There is no doubt

that superior guest services are, and will always define the success of a property.

Appropriate technology would also be a strong factor in deciding whether a property

does well or not.

b) Efficient Inventory Management: Proper strategies should be formulated which

help in maintenance of optimum level of inventory. It will also help in reducing its

fixed cost and storage cost.

c) Promotional Activities: More aggressive promotional activities should be carried

out by the hotel. Schemes like smart card, discounts, value packs, price offers, and

free-coupons should be more frequent and should be well advertised as well.

d) Off-season blues strategy: During the off-season blues they should lay greater

emphasis on “LOCAL EVENTS” and should try and come up with new innovative

ideas which will help them recovering cost due to low occupancy.

e) Environment Strategies: The environmental movement is not new to the hotel

industry. TAJ HARI HOTEL should adopt environmental programmes as a part of

their environmental strategy in order to reduce energy use, water use, waste

52

generation, and more recently greenhouse gas emissions. They should place customer-

focused initiatives such as towel and linen reuse programs. The major motivation for

them is cost controls in the face of rising utility rates. Utilities account for 5-15% of

total operating costs for hotels, and cost-effective environmental management

strategies can cut property-wide consumption up to 30% without major investments in

physical plant, and up to 75% in targeted use areas. Though TAJ has made an

initiative in this direction with the new concept of EARTH as discussed earlier, but

there is a need to lay greater emphasis on environmental strategies.

They can improve the performance of their brand by:

Using their insight to make their brand the first choice for guests

Delivering consistent customer experiences

Can generate excellent returns by:

Improving hotel revenue by encouraging guest visits

Improving the efficiency of hotel and operating processes

Can put their market scale and knowledge to good use:

Using worldwide scale and experience to retain existing consumers and attracting new

consumers.

Making the most of their global presence – guests choose their brand when they

travel.

Strengthening organisation by:

Investing in their human resource and their ability to achieve set goals and targets.

By adapting customer oriented strategy along with competitive oriented strategy.

53

Annexures

1) SYNOPSIS

2) QUESTINNAIRE & STRUCTURED INTERVIEW OF GENERAL MANAGER

3) QUESTIONNAIRE FOR CONSUMER RESPONSE

54

Synopsis

Introduction:

As the topic suggests, the research shall be directed towards studying the SWOT Analysis of Taj Group of Hotels specifically for the ones situated in Jodhpur city.

Let’s now look into the meaning of SWOT Analysis:

What do we mean by SWOT analysis?

SWOT analysis is an acronym for the internal Strengths and Weaknesses of a firm and the

environmental Opportunities and Threats facing that firm. SWOT analysis is widely used technique through which managers create a quick overview of the company’s strategic situation. It is based on the assumptions that an effective strategy derives from a sound “fit” between internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Where:

Strengths are the availability of a particular resource with the firm, and the ability of the firm to leverage it to performing certain activities better than its competitions. It could arise from Physical, Human and Organisational assets.

Weaknesses are the non availability of a particular resource with the firm, or the inability of the firm to leverage that resource in performing certain activities better than its competition. It could arise from lack of physical, human, organisational, or intangible assets, lack of appropriate skills or expertise in leveraging the resources, lack of strategic directions for the company to understand and fulfil the needs of the specific customer segment(s).

Opportunities are those industry opportunity that the company is equipped to capture, or intends to capture. The market opportunities could arise out of emergence of new customer segments in the market for the company, change in customer habits and preferences, and their buying behaviour, change in technological, regulatory, social or economic environment of the industry.

Threats are those factors that the firm is not equipped to handle. The environmental threats could arise out of emergence of new customer segments in the market for the company, changes in the customer habits and preferences, and their buying behaviour, change in technology, entry of new competitors in the market with new business models.

The aim of any SWOT analysis is to identify the key internal and external factors that determine the chances of success or failure of the business venture. SWOT analysis groups key pieces of information into two main categories:

55

Internal factors – Positive or negative aspects of the external and internal environments that are under the direct control of a firm or a decision maker.

External factors – Agents, factors, or forces in an organization's external environment that are out of its control, and can directly or indirectly affect is chances of success or failure.

Organisation:

The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces and is recognised as one of Asia's largest and finest hotel company. Incorporated by the founder of the Tata Group, Mr. Jamsetji N. Tata, the company opened its first property, The Taj Mahal Palace Hotel, Bombay in 1903. The Taj, a symbol of Indian hospitality, completed its centenary year in 2003. Taj Hotels Resort and Palaces comprises more than 60 hotels in 45 locations across India with an additional 15 international hotels in the Malaysia, United Kingdom, United States of America, Bhutan, Sri Lanka, Africa, the Middle East and Australia.

Taj Hari Mahal, Jodhpur, Spread over six acres of lush, landscaped gardens; this palace of the 21st century offers luxurious refinement. With its Marwar style architecture and Moghul-inspired domes, enameled murals, slender columns, and grand interiors, this is design that lives up to the fantasy. It offers various products and services such as- Jiva Spa, Food & Wines, Event Planning, Taj Holidays, Babysitting, Beauty parlour / Hair salon, Car hire service, Currency exchange, Doctor-on-call, Express laundry / dry cleaning, Travel assistance, etc.

Objectives:4) To identify the strategies adopted by Taj Hari Mahal.5) To identify the opportunities and threats for Taj Hari Mahal in the market, and

analyse its strengths and weaknesses.6) To generate/suggest an alternative course of action/strategies for the firm using

SWOT matrix analysis.

Research Methodology:Since the research will be doctrinal and non-doctrinal in nature, therefore the data would be collected both from secondary and primary sources of information. On the basis of the data collected, a questionnaire will be developed, which would further help in field study and collection of primary data. So, research would also follow empirical research. Therefore the approach for research would be deductive approach.

Tentative chapterizations:

Executive Summary Statement of Objectives Research Methodology

56

1. SWOT Analysis: Introduction Meaning Purpose Mechanism

2. Introduction to Taj Group of Hotels3. Data Tabulation4. Analysis5. Conclusion Annexure Bibliography Limitations ( if any)

Bibliography:

John A Pearce II, Richard B Robinson, Jr, Strategic Management,Tata McGraw, New Delhi, 9th edn., 2005

Vipin Gupta, Kamala Gollakota, R. Srinivasan, Business Policy And Strategic Management Conceptsand Applications,Pretince Hall of India, New Delhi, 2nd end., 2008

Thomas L. wheelen, J. David Hunger, Strategic Management And Business Policy,Addision Wesley, 6th edn., 1998

Francis Cherunilam, Strategic Management, Himalaya Publishing House, 5th edn., 2005

57

Questionnaire: (Addressed to General Manager)

Name: Mr. M. Vilas Humbre

Contact No. 0291-2439700

I. Set- A1. What is your USP?2. What makes you stand-out from your competitors?3. Do you consider the geographical location as one of your strengths?4. Does the hotel have a pool of skilled employees? If yes, is the morale of the

employees high?5. Does the company manage its inventory efficiently?6. Has the hotel & the staff demonstrated the ability to adapt the changes?7. What is the major source of your revenue and profit?8. What are the innovative ideas you have recently come up with?9. How does the company withstand international competition?10. Do have tie-ups with airlines, credit card and cellular companies?11. What are the various strategies adopted by you?12. What is your customer retention performance since last 3 yrs?13. Do you consider financial resources as your strengths?14. Do you consider niche target segment as your strength?15. Other strengths?

II. Set- B1. Are there any complains reported by your customers?2. In what areas the hotel is not able to recover cost?3. Is your fixed-cost and storage-cost high enough?4. Are you loosing on profits due to low occupancy?5. Do you think internal security & unrest hamper your foreign tourist arrival

rate?6. Is there need of training for customer service staff?

III. Set- C1. Is there any area which has not yet been taken care of by your competitors in

the town?2. Do you consider increase in disposable income as an opportunity?3. Do you consider change in customers’ habits, taste and preference an

opportunity?4. What are your views about open sky benefits?

58

5. Do your consider growth of tourism industry as an opportunities?6. Surprising competitors by coming up with new innovative ideas can be

considered an opportunity?

IV. Set- D1. Do you consider fluctuations in international tourism arrival as a major threat?2. Do your consider event risk as a threat?3. Do you think any changes in policies of government and tourism industry will

affect your hotel industry?4. In today’s changing scenario- do you agree that hotel industry is haunted by

terrorism and has become a major threat (for your hotels)?5. Do you consider retention of key staff critical?6. Do you consider international brand as a threat to your organisation?7. Other threats?

Questionnaire (Addressed to consumers)

8. Are you aware of Taj Hari Mahal in Jodhpur?9. Which is the major service encounter that extremely delighted and disappointed you?10. Rate – 1) price (tariff rate), 2) value and 3) quality of the service and food provided on

the scale of 5?11. Do you think that the employees and the staff are skilled or do they require customer

service training?12. What is the frequency of your visit?13. According to what are the opportunities Taj Hotel can en-cash upon?

14. According to you what is the unique feature of Taj Hari Mahal which maintains its exclusivity?

a) Initiative of EARTH.

b) Yoga Retreat

c) Jodhpur RIFF

d) Marwari Theme

e) Any other (mention)

59

Bibliography

Books:

John A Pearce II, Richard B Robinson, Jr, Strategic Management, Tata McGraw, New Delhi, 9th edn., 2005

Vipin Gupta, Kamala Gollakota, R. Srinivasan, Business Policy And Strategic Management Conceptsand Applications,Pretince Hall of India, New Delhi, 2nd end., 2008

Thomas L. wheelen, J. David Hunger, Strategic Management And Business Policy,Addision Wesley, 6th edn., 1998

Kotler, Philip, Marketing Management (Prentice Hall of India, New Delhi, 11th edn.,

2003)

John A. Parnell, Strategic management-Theory and Practices, Biztantra, New Delhi, 2008, pg.130

Ramaswamy & Namakumari, Marketing Management (Macmillan Business Books,

New Delhi, 3rd edn., 2003)

Websites:

http://www.baserler.com.tr/onur/isletme/Management%20Skills-SWOT.htm

http://competitive-intelligence.mirum.net/competitive-intelligence-methods/swot-

analysis-strengths-weaknesses-opportunities-threats_4.html

http://ollie.dcccd.edu/mrkt2370/Chapters/ch2/2env.html

http://www.quickmba.com/strategy/swot/

http://www.marketingteacher.com/Lessons/lesson_marketing_environment.htm

http://www.businessballs.com/swotanalysisfreetemplate.htm visited

http://en.wikipedia.org/wiki/SWOT_Analysis

http://marketingteacher.com/Lessons/lesson_swot.htm

http://www.tajhotels.com

SM Project

Documents

Transcript of SM Project