The hospitality industry is very volatile. The market competition is very stiff. To succeed, a company must develop guiding objectives in order to capture and retain customers. Aqua by Grandstand was conceived and developed with specific objectives by its owners. They wanted to transform it into a modern club-lounge by constructing a simple, easy to operate open-air club-lounge which is safe and durable. For purposes of sustenance, customers’ safety there is the need to build a lounge that allows flexibility in mobility to new locations as the market dictates. This objective makes the club simple to relocate to new locations giving it competitive advantage over other lounges. The club lounge was built to maximize profit by serving high income earners. The club aimed at serving the middle and higher income groups who would afford high and costly lifestyles. To provide a hot scene or something new to the higher income earners so as to be able to contain them in order to increase their sales. They wanted to develop a new hospitality concept that could resist the risk of losing customers due to relocating to new and exciting sites. They wanted to mainly produce mobile locations to satisfy the needs for large organizations (Darmon 115).
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Key problems experienced by the club-lounge Aqua by Grandstand
According to the managing director, the materials that are used in construction must be given adequate care and properly maintained if the lounge is to survive for long. The hospitality industry is very competitive and customers usually shift based on new sites. Aqua by Grandstand has to face this problem and devise ways of solving it. They have to keep on redesigning their landscape and relocating to a new site in order to appear as a new lounge and meet the customers’ needs. This is essential to keep a wide customer base. The three proprietors of the lounge were faced with the problem of raising enough funds to cover the start-up costs. They had to attract additional funding from investors. They had problem convincing the investors of the viability of the investment since they had not done thorough market research and the project relied on their own observation and prior experience in the industry. The partners experienced a problem of hostility from the natives having come from outside Singapore. The Singapore craftsmen posed cultural barriers to these investors and delayed the production and construction speed of the project. Due to this problem of cultural biasness, the craftsmen raised the prices of labour and materials to unfair levels. The licensing of the project was rather difficult due to the nature of its mobility. The licensing authority could not establish the actual location of the business as a condition for licensing (Lewis 77).
Evaluation of the issues and strategies shown in the case
Lanyi and partners employed complex strategies to conceive and develop Grandstand. They observed a gap in the hospitality industry. They thought of an idea from their observation that consumers’ interests were not well catered for and therefore their loyalty kept on shifting from one service provider to another, or from one entertainer to another. They developed a strategy of sustaining their customers by making their lounge mobile and having the capability to change its landscape any time they move to a new location to make it appear new and different. Aqua is safe and designed to last long and hence has low maintenance costs which makes it profitable and hence worth investment. Aqua is flexible and easy to set up in new locations. It’s stylish and modern with DJs and sound equipment. It is planned to attract high income earners as well as executives. The lounge is capable of sustaining its customers by changing its surroundings to appear different. As a strategy to popularize its mobile venue concept, it is involved in construction of Nokia road show venues as well as developing mobile sound Xperience which is the first recording studio which is mobile. It is also in the process of introducing another mobile venue, Voodoo which is container based in 2009 (Hsu, and Powers, 92-96).
The reliance and impact on innovation
Lanyi had enough prior experience in hospitality from several restaurants he had managed. He had observed that customers’ interest kept on shifting to new entertainment lounges and therefore he took the issue of developing one which would keep on changing to accommodate the interest of the customers. The structure of the Aqua can be set up within twenty four hours with extra twenty four hours for adjustment into the new location. This shows a high level of innovation. Aqua by Grandstand has been able to cope with the customers desires due to the high level of innovations and technology involved. It is build by materials which are able to withstand sun and water without deteriorating. Further innovations occur where the club lounge can afford to change its landscape in order to appear different. Grandstand is in the process of launching another mobile structure, the Voodoo which will be capable of offering ‘tapas-style finger food’ on top of beverages. This is also a great work of innovation (McDonald 76).
Necessary recommendations to solve the problems experienced by the hotel
In order to solve problems experienced by businesses within the hospitality industry, it should carry out extensive research about the market before venturing into it. The business should take into account the legal framework in which it’s operating and fulfill all the requirements to avoid confrontation with the law. It should also relate well with the environment so as to enjoy the goodwill of the surrounding immediate consumers. A complete research of the intended business is vital to determine the sources and availability of the resources required. Through thorough research, the business can be able to assess the profitability of the sector as well as establish the key competitors and their influence in the market. With proper information, the business can be able to lay out good strategies in order to meet the customers’ requirements as well as compete favourably and out do its competitors.
How the hotel can take advantage of opportunities and improve strategies
To take advantage of the opportunities available, the investor should carry out an accurate assessment of the business environment to determine available opportunities and assess the expected returns before venturing into the business. An existing business must employ new technology and embrace innovations in order to provide good quality and superior products than its competitors. Research has shown that a business that is fast in acquiring new technology is always a mile ahead of its competitors in terms of product improvements and development. Business strategies should be constantly reviewed to assess whether they are in line with the business goals (Futrell 58).
Case With Royal Plaza on Scotts
The objectives of the Royal Plaza on Scotts hotel
Royal Plaza has been unable to establish in the market after being in the market for quite such a long time. The management had to review its operations through evaluation of the hotel objectives. The hotel major objectives were to establish the hotel as a market leader in the industry to renovate and upgrade the hotel and to restore customer confidence. There was need to improve the employees perspective and productivity towards achieving the objective of the farm. The employees required to re-evaluate their commitment towards the achievement of the hotel’s goals. Beside product differentiation, there was need for overall restructuring of the design and operation of the whole hotel. In an effort to restructure the performance of the hotel, the management started redesigning its customer care service through upgrading and reenergizing it to increase its productivity and enable it compete favourably in the market. It undertook a complex approach to brand its customer service. The objective was to make the hotel a brand that was relevant and meaningful to the needs of the staff, customers’ and the community in large. The staff should be able to develop and operate on the new concept values to ensure that the brand succeeds in the market (Hite and Johnston 69-71).
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Key problems experienced by the Royal Plaza on Scotts hotel
Royal plaza on Scotts has faced a lot of challenges in the hotel industry. Despite being in the service for thirty two years, it could not establish itself in its class as a world- class hotel. The hotel was so dilapidated and down graded to an extent of giving out a tired look. The hotel could not attract customers due to poor administration, service delivery, poor customer service and neglect of the entire property. According to the general manager’s comment on renovating the ‘heartware’ of the staff, it is clear that the staff lacked morale and enthusiasm in their work. The hotel had very poor customer service and hence it could not attract or retain its customers. Good customer service is paramount to the success of any business. The hotel did not allow free interaction of the customers with its staff. Instead, the customers could use scripts to order for services. The customers viewed this system as robotic and cold. The standards that governed the operation of the hotel were rigid. There was very little if any free communication between the workers and the management. The management systems provided a harsh environment for workers to operate. The hotels service delivery standards and style were generally poor (Fitzsimmons and Fitzsimmons 113-115).
Evaluation of the issues and strategies shown in the case
It is evident that Royal Plaza on Scotts has undergone several phases before being one of the world class destination hotels. It has been transformed from non-performing hotel through innovation and branding to uplift its image, and through upgrading customer care service to create an independent brand. The management re-evaluated the image of the hotel to the public in order to create confidence in its customers. In order to achieve the branded customer service the hotel had to undergo extra costs of engaging an expatriate to coordinate and spearhead the process. The first strategy was to conduct a brand audit. This was to be done through guest focus group. The staffs were to be surveyed to determine how they viewed the hotel and state what they liked and disliked in the existing hotel and what they expected after the hotel renovation. The same was done to the regular customers and all the stakeholders. The answers they got helped them to establish how the different interest group viewed the hotel and their suggestions were put into consideration. The second strategy was to conduct a two day workshop for staff members which aimed at developing the new brand, articulating of the hotel brand values, identifying new techniques to be taken by the hotel, empowering staff on how to take care of their customers’ needs and enhance their services to make business attractive. They also adopted the strategy of incorporating the formulated brand values into their daily activities. The management systems were changed to create a favourable climate for the implementation of the formulated values (Donaldson 28-29).
Reliance and impact on innovation
The overall change of the hotel, and facing out of the challenges that faced it rests on the innovation that were carried out during renovations. The general operations of the hotel had to be changed and new methods of operation put in place. Through innovations, the hotel was put back to the position of world class hotel. The hotel can now compete favourably and out do its competitors due to the technology employed in its operations. The hotel was redesigned to give a new look, it was upgraded to acquire the standards of its caliber, and the staff were retrained on customer care and quality service. System to appraise performance management was innovated to measure the success of each staff member in making the success of the brand value. The guest feedback could be measured on service experiences and customer satisfaction using certain metrics. The innovated systems reviews were used to create continuous alignment of the brand (Bowie and Buttle 89).
Necessary recommendations to solving the problems experienced by the hotel
Most of the problems found in hospitality industry are stiff competition, continuous change in taste and preference of the customers and continuous change in technology. To cope with these challenges and remain in profitable business, the business must focused on its goals, and formulate changes that are required to drive the business towards success. To cope with the challenge of stiff competition, the hotel must design its product in a superior way than its competitors. It must embrace good customer service as a competitive tool. It must have a system where the needs of the staff as well as those of the customers are taken utmost good care. Good service delivery ensures satisfaction of the clients and hence ability to retain customers (Reid and Bojanic 113-116).
How the hotel can take advantages of opportunities and improve strategies
To stay in line with the changing taste and preference, the hotel should constantly upgrade its production technology to ensure its products are always of high quality than competitors. Innovations enable the business to identify itself as an independent brand. Customers are able to identify with its product since it is unique. The hotel should time to time evaluate the satisfaction level of its customers through random surveys in order to evaluate their feedback and adjust towards achieving their needs. The business should at regular times conduct research on the performance of other key businesses in the industry so that it can asses its performance and adjust according to the market trends (Reid and 211-213).
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