Strengths-Most famous seaside hotel-Good corporate Image-Good reputation-High quality service-High quality housekeeping
Weaknesses-Cashflow and liquidity problems-Shrinking market share-Seasonal business -Human resources
Opportunities -globalization -Safari of cultural tourism
Threats-political unrest-new hotels with better facilities-strike action
Shareholders present in USA, Japan, and South Korea
Method of Management – appoint a manager – generate profits – dividends paid to GP
Once a year – BEQ, TP & MOS calculated
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1. Primary Sector2. Market Opportunity3. Diversify4. Cashflow5. Liquidity Management6. Sole Trader7. Corporate Image8. Reputation9. High Quality10. Investors11. Subsidiary Private
Limited Company12. Globalized World13. Hands off14. Profit15. Dividends16. Break Even Quantity17. Target Profits18. Margin of Safety19. Multicultural Society 20. Recruiting21. Westernized
1. Salary2. Performance related pay3. Competitive Position4. Market Share5. Budget6. Long-term7. Secondary Market8. Marketing Audit9. Position Map10. Working Capital 11. Liquidity Problems12. Profit Centres13. Non-Revenue14. Financial Accounts15. Cost Centres 16. Profit and Loss Account17. Balance Sheet18. Financial Performance19. Closing Stock20. Actual Stock21. Human Resources22. Motivation23. NPO24. Discriminated
1. Leadership style2. Efficient3. Task oriented 4. Committed 5. Bureaucracy6. Formal Accountability7. Clear chain of command8. Scientific approach9. Decision making10. Laissez-faire11. Empowerment12. Delegation13. Autocratic14. Informal communication15. Appraisal meeting16. Dissmissal17. Training18. Absenteeism19. Strike action20. Negotiation21. conflict
Reached decline phase of product life cycle. Mass renovations required in order to upgrade the
hotel and reposition it to its former place as the premier hotel in Mombasa.
This would require substantial investment.◦ in the physical condition of the hotel almost to rebuild it
entirely◦ in its marketing in order to re-launch it, maybe even with a
new brand name. same customer types, but the product would be
much improved. need an improved workforce
Transforming all the rooms into self-contained apartments with small kitchens.
Target market: business travellers staying at least one week.
The marketing audit had revealed that:• there is an increasing demand for such apartments• very few hotels in Mombasa offer such apartments • the market is still small• the market has high growth potential.
Lower fixed/variable costs. Apartments serviced weekly this option could reduce the housekeeping staff by 70%
Form a strategic alliance with the famous safari tour company KenSafar for a two-week package tour.
Onyango, a spontaneous, dynamic and charismatic Kenyan who had many networks and contacts, and intuitively knew market trends, even without market research.
Kamau insisted that if the strategic alliance were to go ahead The Imperial would have to:
• make some improvements to the appearance of the hotel • pay Kensafar a 20 % commission for all hotel guests staying at
The Imperial and booking through KenSafar. • undertake a marketing audit.
Product life-cycle Target market Workforce planning Human resources strategic planning Marketing audit Growth potential Fixed costs Variable Costs Strategic Alliance Market trends Market research
Tourism 2008 2009 2010 2011
Foreign tourist arrivals
1203 1490 1609 1823
Admissions to safari park
1633 2385 2764 2644
Admissions to museums and historic sites
493 763 942 843
Hotel accommodation
2008 2009 2010 2011
Rooms available 8143 10335 10190 10552
Rooms occupied 2619 4065 3702 4788
Two possible approaches: Approach 1: “Up skilling” the existing workforce• emphasis on “internal’’ recruitment• strong emphasis on training and development• no concern about staff retention rate, as most employees would be Kenyan.Approach 2: Building a new global workforce• emphasis on “external” recruitment• little emphasis on training and development• major concerns about staff retention rate, as most employees would be international.Features common to both: • recruitment• training and development• retention.
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