Strategies For Growing Customer Value And Profitability: Sean And Sharon Hotel

Discuss about the Strategies For Growing Customer Value And Profitability.

The business plan explains about a hotel, Sean and Sharon. The hotel, Sean and Sharon would be located in the heart of the Canada. It would be less than 20 minute drive from the Canadian Rockies International airport. The hotel would be located at very beautiful place near the sea. The Sean and Sharon hotel consider the quality and the services at superior level and they believe that these factors are important for the company to achieve the strength. The hotel would be a customer-centric hotel which focuses on the service structure and it is deeply rooted in the organizational structure and the level of the organizations.

The hotel would be decorated in elegant and exquisite facades so that the customers could be attracted towards the beauty of the hotel. Sean and Sharon would offer a conductive spot to the customers to take break from the busy lifestyle and the schedule to comfort them in the luxury of the hotel. The hotel would be equipped with a VIP lounge and a business centre. Along with it, self services laundry, fitness room, swimming pool etc facilities would also be available for the guest of the hotel in no extra cost. A free WIFI would also be installed in the hotel in order to make it easier for the guest to surf.

The business class guest room of the hotel will make the customers comfortable and warm. They will enjoy the home feeling away from the home. The different international cuisine of the hotel would also enlighten the mood of the guest of the hotel. The hotel would be all set in such a way that the best of the staying experience could be given to the guest of the hotel and it would make it easier for the hotel to enhance the level of the loyalty.

The main vision of the business would be to open a standard hotel and set up the activities and the operations of the hotel in such a way that it becomes the number one choice in Canada. The business description explains that the hotel would be prepared and set up by the business in such a way that it could offer the best of the amenities and the services to the guest of the company. The main vision of the business is to enhance the warmth and comfortable level of the guest into the hotel. The main vision of the company is to enhance the level of the overall revenue of the company after 3 years. The hotel should reach on the breakeven level after 3 years.

Mission/Vision Statement

After 3 years, the hotel would be one of the highest revenue generating hotels in the Canada. The advanced services would be offered to the guest of the company such as lodging, meals, gym, swimming pool, mini mart, childcare etc so that the interest of the guest could be developed in the hotel and they become the loyal customers of the hotel. The hotel would offer such a conductive spot to the customers to take break from the busy lifestyle and the schedule to comfort them in the luxury of the hotel.

The Sean and Sharon hotel consider the quality and the services at superior level and they believe that these factors are important for the company to achieve the strength. The hotel would be decorated in elegant and exquisite facades so that the customers could be attracted towards the beauty of the hotel. The hotel would be a customer-centric hotel which focuses on the service structure and it is deeply rooted in the organizational structure and the level of the organizations.

The hotel would also offer the higher returns to the shareholders through enhancing the earnings per share and dividend per share of the hotel. Along with it, the hotel would also start to pay the loan amount to the financial institutions after 3 years (Kotler & Keller, 2006). The hotel’s operations would be run in such a way that the society and the local community could not be harmed as well as hotel would run some program to manage the corporate social responsibility.

Further, the main mission of the Sean and Sharon hotel is to deliver the genuine, caring, reliable and excellent service which is superior to the services offered by the competitors of hotel in the same location. The main mission of the hotel is to make sure that the hotel enjoys around 90% occupancy in most of the days of a year.

The business canvas description is as follows which includes the organizational structure, key partners of the business, key activities, value propositions, customer relationships, customer segment, key resources, channels, cost structure, revenue of the hotel etc. the business canvas study of Sean and Sharon are as follows:

The success of an organization totally depends on the team and the business stricture if the company. The people who occupies the main role in the hotel are important for the organization to manage the overall operations. The hotel would work with a great business structure which would offer room to the employees to explore the creativity and the senses of belonging among the leaders of the hotel. The hotel would work hard to make sure that we only conscript the right set of the employees with a great mindset to assist the hotel to meet the business goals and the objectives in decided time.

Discussion of Business Canvas

The hotel would be planned by the John Sean and Mary Sharon and the following would be the organizational structure of the company:

• Chief executive officer (owner)
• Hotel manager
• Administrative manager and the human resource manager
• Bartenders and Baristas
• Cashiers and the accountants
• Maintenance and the facility manager
• Front desk officer
• Marketing officer
• Washer men and the cleaners
• Security officers etc. (Peter & Donnelly, 2011).

The key activities of the business explain that the main focus of the business is to offer a great environment to the guest so that they could feel free from any hassle and make them comfortable and warm. The main activity of the business is to offer warm and comfortable environment to the guest so that they could enhance the guest involvement in the business. Sean and Sharon would offer a conductive spot to the customers to take break from the busy lifestyle and the schedule to comfort them in the luxury of the hotel.

The main activities of the hotel include the better rooms with various facilities and the dining area with huge choices about the cuisine. The main activities of the Sean and Sharon includes the control on the overall manufacturing and production of the cuisines, manage the website, manage the online orders and room booking, distribution of the product, make a great branding strategy that the hotel and its services could be positioned into the customer’s mind, marketing and the promotion process of the hotel and the various services of the hotel (Stevenson & Hojati, 2007).

The management of the overall revenue, turnover, staffing process, hiring process, partnership and the procurement are also the part of the main activities which assist the hotel to run the business smoothly and constantly.  

Value proposition explains that the hotel should provide the value to the customers through offering them the unique products and services with the unique characteristics. The hotel would provide the value to the customers through offering them a result which would overcome all the issues and the problems of the customers and they would find that their money would be worth spending in the hotel. Mainly the people come to stay in the hotel for take rest and free from the busy schedule of there (Tansley et al, 2007). Sean and Sharon would offer a conductive spot to the customers to take break from the busy lifestyle and the schedule to comfort them in the luxury of the hotel. It would offer the value to the guest of the hotel.

The hotel management is well aware about the fact that the value proposition is important for a hotel and the business to enhance the overall turnover and the market position of the business. The value proposition of Sean and Sharon would mainly focus on the following points:

• Value for money
• Sales and marketing of the hotel via TV, social media and the newspapers
• Online booking
• Best of the services in the minimum charges
• Offering the unique characteristics to the customers of the product and services

Key Partners

The value proposition has been prepared in the business plan in such a way that it looks promising to the customers and the guest of the hotel. The value proposition of Sean and Sharon has been tested at earlier stage and compared with the already existing hotels to evaluate that it would be promising and the customers would be attracted due to these value propositional factors of the company. The survey has also been conducted among few people to evaluate that what are the main factors and the elements of a hotel which looks promising to the customers of a hotel and which attracts the customers more towards the business (Doyle & Stern, 2006).

On the basis of the study, the value proposition of the hotel has been set and it has been assured that all the value proposition of the hotel given their best shot and helps the hotel to achieve the mission and objectives of the hotel. It has also been assured that the best of the services and best quality product has been offered by the customers of the company in better prices so that they could feel motivated and attracted towards the business.

Customer relationship is the building blocks which explain about the type of relationship which must be built by a business with its customers to enhance the overall business and meet the mission and objectives of the business. Customer relationship of the Sean and Sharon has been driven by the following 3 motivations:

• Customer acquisition
• Customer retention
• Enhance the overall turnover and the occupancy of the rooms

The Sean and Sharon has evaluated the market proposition and the trends in the market and it has been decided by the hotel to maintain a better relationship with the guest of the hotel on the basis of the atmosphere, interaction with the guest and better customer services of the hotel. All of these would help the hotel to resolve the issues of the guest and enhance the level of loyalty among the already existed customers and attraction to the new customers.

The hotel has decided to invest around $ 1,00,000 initially to maintain the customer relationship with the guest of the hotel. The customer relationship management would make it simple and easier for the company to maintain other business canvas model of the company. The main category of customer relationship which has been focused by the company to maintain the overall operations of the company is:

• Personal assistance
• Automated services
• Dedicated personal assistance
• Communities
• Automated services etc (David, 2011)

Customer segment is a process in which the customers of the company are segmented on the basis of the age, geography, behavioural and the special characters of them. In the business plan of Sean and Sharon, it has been found that the main segment of the customers would be on the basis of the below:

• Tourist
• Urban population
• Organization

Key Activities

The main focus of the Sean and Sharon would be on all of the above. The hotel would offer different services and the features to each of the segment. The positioning would be done of the hotel in different way to each of the customers of the company. The main features of the hotel would be characterised and presented by the hotel to the customers to attract them towards the hotel. Such as, the business halls and the special discounts would be offered to the organizations for their meeting and the conferences. On the other hand, urban population would be positioned on the basis of the peaceful environment and a great atmosphere of the business (Dean & Yunus, 2001).

It has been measured that the customer base of the company would be better due to the convenience to reach to the hotel and the unique services and the products of the hotel. The place of the hotel would also be beautiful and it would be designed in such a way that everybody could feel connected to it.

Key resources are the building block which explains about the important assets of an organization which are needed to make a hotel run its operations smoothly. Every business model needs to manage the resources in such a way that maximum utilization of the minimum resources could be done which will lead to the less cost of the hotel. On the basis of the key resources only, a business generates the value proposition and revenue. The key resources of Sean and Shane are as follows:

• Human resources management
• Capital
• Infrastructure
• Utilities
• Raw material of food

Above all the few key resources of a hotel which help the hotel to manage the activities and the business model work. Each business model requires these resources to manage the overall performance.

Human resource management plays the crucial role in hiring and recruiting the people to manage the overall structure and the process of the company. It manages all the workforce of the hotel. Further, the capital is essential to run the overall business of the company. Without, the capital, it is not possible for an organization to run the business and the activities (Dallas, 2011). Further, the infrastructure stands for the plant, property and the equipment of the company which is must for each hotel to run the business smoothly. A hotel could not be structured without the property and the building as well as the activities could not run without the help of the machineries and the equipments.

Value Proposition

Further, it has been measured that the utilities are also the key resources of the company. The management of utilities also play a crucial role in a hotel and explains that the utilities would be managed in a better way. In addition, the raw material of food and other products such as curtains, pillow covers, bed sheet etc would also be managed and designed in a proper way in the organization to enhance the overall operations of the company (D’Aveni, Dagnino & Smith, 2010).

Customers channel is a way through which the customers of the company could be conveyed about the product and the services of the business. In the business plan of Sean and Sharon, it has been found that the characteristics and the product and services of the hotel could be conveyed to the customers of the company through following ways:

• Newspaper advertisement
• Social networking site
• References (such as mouth publicity or the tourism company)
• Social networking site etc. (Chaffey, 2007)

All of the above mentioned ways would be used by the Sean and Sharon  to promote the hotel, products and services of the hotel. The hotel would offer different services and the features to the customers and all would be conveyed to the customers in such a way that they could feel attracted towards the company. The channels would be used by the hotel in such a way that they could attract the customers and the tourist towards the hotel and it help the hotel to meet the overall goals and objectives of the business.

It has been measured that the customer channel of the company would be better due to the different channels and the different advertisement of the company on the basis of the target market. The channels have been decided after evaluating the trend in the market and the effectiveness of the channel.

Cost structure segment of the business model explains about the total cost which has been incurred to make a business model work efficiently and effectively. Cost structure plays a crucial role in the business and explains that an organization must assure about the cost structure firstly so that the profit could be generated accordingly. On the basis of the study, competition and the trend in the market, it has been measured that the “low cost structure” is the best option to manage the overall cost of the business (by Sara Carter & Jones-Evans, 2009).

The Sean and Sharon would be a value driven company which mainly focuses on premium value proposition. It mainly offers the personalized services to the customers of the business. The hotel would try to reach over the breakeven point in next 3 years as well as the foxed cost, variable cost, economies of scale and economies of scope.

Revenue stream is basically explains about the total income. Revenues model has been briefed under the heading. It is a process in which a framework is presented to measure the total revenue and the process of generate those revenues. It explains that hotel has measured the overall ways through which the revenue could be generated in the business. The revenue stream of the hotel is as follows:

• Lodging
• Boarding
• Banquet halls
• Conference and the meeting rooms etc. (Brigden, 2009)

These are the few revenue streams of the hotel through which the income would be generated by the hotel.

The main objectives of the Sean and Sharon are as follows:

Specific:

The vision and the mission of the business have been mentioned specifically in the business plan. The main mission of the Sean and Sharon hotel is to deliver the genuine, caring, reliable and excellent service which is superior to the services offered by the competitors of hotel in the same location. The main mission of the hotel is to make sure that the hotel enjoys around 90% occupancy in most of the days of a year.

On the other hand, the main vision of the business would be to open a standard hotel and set up the activities and the operations of the hotel in such a way that it becomes the number one choice in Canada. The business description explains that the hotel would be prepared and set up by the business in such a way that it could offer the best of the amenities and the services to the guest of the company (Best, 2009).

Measurable:

The business plan has been set in such a way that all the data and the figures are easily measurable and has enough relevance to the market trends and the competitors so that the better business plan could be prepare and all the relevant and specific data is conveyed o the relevant party.

Achievable:

The business plan explains that it has been set up and would be implemented in such a way that all the goals and the objectives of the business are easily achievable and offer the better market place and the competitive strength to the company.

Realistic:

The business plan explains that all the goals and the objectives of the business are quite realistic as these have been measured and prepared by the company after measuring all the related aspect of the business and the performance of the industry (Boxall & Purcell, 2011).

Timely:

The business plan explains that all the steps and the goals and the objectives of the business have been measured and prepared by the company after measuring all the related aspect of the business and the performance of the industry. But it should be implemented at the better timing so that it becomes easier for the firm to manage the goals and the objectives.

Lastly, the financial aspect of all the department of the hotel has been measured on the basis of the industry position, competitor’s performance and trend in the market. the financials of each department of the business are as follows:

(Bateman et al, 2008)

The total room occupancy rate of the business and the daily rate of the business is as follows:

The revenue of the business per month has been discussed and calculated in the first table which explains that the total revenue of the business would be increased per month.

(Applegate et al, 2007)

The overall study on the financial part of the business explains that the performance of the business would be better.

References:

Applegate, L. M., Austin, R. D., McFarlan, F. W., & Applegate, L. M. (2007). Corporate information strategy and management: text and cases. Boston: McGraw-Hill/Irwin.

Bateman, E. 1., Hurd, S. S., Barnes, P. J., Bousquet, J., Drazen, J. M., FitzGerald, M., ... & Pizzichini, E. (2008). Global strategy for asthma management and prevention: GINA executive summary. European Respiratory Journal, 31(1), 143-178.

Best, R. J. (2009). Market-based management: Strategies for growing customer value and profitability.

Boxall, P., & Purcell, J. (2011). Strategy and human resource management. Palgrave Macmillan.

Brigden, C. (2009). Journal of Industrial Relations. Unions and collective bargaining in 2008, 51(3), 365-378.

by Sara Carter, E., & Jones-Evans, D. (2009). Enterprise and small business: Principles, practice and policy. Strategic Direction, 25(5).

Chaffey, D. (2007). E-business and E-commerce Management: Strategy, Implementation and Practice. Pearson Education.

D’Aveni, R, Dagnino, G, & Smith, K. (2010). The age of temporary advantage. Strategic Management Journal, 31, 13, pp. 1371-1385, Business Source Complete, EBSCOhost, viewed 18 Jan 2017.

Dallas, H, (2011). “Strategic Management; competitiveness and globalization”. Strategic management, Asia-Pacific 4th ed, pp 434-440.

David, F. R. (2011). Strategic management: Concepts and cases. Peaeson/Prentice Hall.

Dean, E. & Yunus, K. (2001). ”An overview of strategic alliances”. Management Decision, Vol. 39 Iss 3 pp. 205 – 218.

Doyle, P., & Stern, P. (2006). Marketing management and strategy. Pearson Education.

Kotler, P., & Keller, K. L. (2006). Marketing management 12e. New Jersey.

Peter, J. P., & Donnelly, J. H. (2011). Marketing management: knowledge and skills: text, analysis, cases, plans. Plano: Business pub., INC.

Stevenson, W. J., & Hojati, M. (2007). Operations management (Vol. 8). Boston: McGraw-Hill/Irwin.

Tansley, C., Turner, P., Foster, C., Harris, L., Stewart, J., Sempik, A., & Williams, H. (2007). Talent: Strategy, management, measurement.