Entrepreneurship Progress of the Business

Question: Discuss about the Essay for Entrepreneurship and Progress of the Business. Answer: Introduction The hotel started as a traditional hotel and was opened up when there was popularity ion the coastal regions and was numerous vacations. On the other hand, the hotel was accessible due to the access provided by the new roads and the railway network within the region. The accessibility of the hotel attracted many customers who opted for the hotel due to its location and the services offered. However, many hotels in the area often offer the traditional facilities in the well-constructed buildings. The customers who often visit the area are attracted by the services provided by the hotels in the locality. The Hots hotel is situated on the seafront and near the other hotels. The location is a few metres from the shopping centre where many people in the area go to shop various commodities. The town is not highly populated and has a population of one hundred and forty five thousand. The nearest airport is thirty minutes away from the town and it makes it possible for the individuals from t he airport to access the hotel. It is aided by the good roads, railway and the bus links to various cities and resorts. Economic Background There was a tourism growth in the year 1970s that was facilitated by the regional and national travel to the coastal region for vacations and off-season breaks. The influx led to the establishment of the annual tourism and other recreational events. It led to the increase of the levels of tourism activities. However, many hotels joined the market and started offering the traditional facilities in the buildings that had been well constructed to accommodate the people and give them the services they required. They had been situated along the sea and within the town. It became the tourist attraction site for many individuals due to its services and location that had many features that were attractive. In addition to that, in the year 1980s there was a small industry growth as the tourist events in the region prompted one of the well-established hotels to come up with a conference centre. The population of the town had grown to a number of two hundred thousand residents and the economy o f the city had to reach out to service and soft industry. The hotel facilities were upgraded to ensure the city was in a strong position (Stokes et al, 2010). However, in the year 1990s the tourism market declined and the tourists started to look for new avenues and other experiences. It happened unexpectedly and the public started criticizing the hotel facilities. The tourism level decreased and there was shortage of funds to maintain the infrastructure. The town started losing its appeal on the small industry and had to relocate it so as to maintain the clients. Moreover, in the year 2000 many organizations had to move to areas that offered low costs, taxes and high quality of life. The local authority offered an economically favorable relocation package to the small and medium size firms. The modern tourists expectations were met and the resort became popular for conferences in all seasons. The customers who often visit the hotel are in the 30-50 age group during the weekdays. Moreover, during the weekends the clients available in the hotel are aged 30 years and above and they are often accompanied by their families (Carsrud Brannback, 2007). The hotel has various facilities that enable the clients to be given the services they need from time to time. It has 250 air-conditioned guest rooms and all have private bathrooms. They are able to accommodate singles, families and couples. They have been decorated with various styles and are comfortable at all times. The Front Desk is always open 24 hours so as to serve the customers to their level best. The hotel also contains a lobby lounge, a pub bar that offers the snack service and also a full service restaurant. In addition to that, it has a car parking that accommodates 120 cars and an additional one in a nearby multi-storey car park. However, there are no business services, leisure and conference facilities or meeting rooms. The refurbishment of the hotel has taken place in the last year. The staff members salary costs the hotel one hundred and twenty five dollars per year. The training program of the employees costs four hundred dollars per annum on each employee. The hote l is rated as 4 star due to the facilities it has and the services it offers to the customers (Carsrud Brannback, 2007). Financial Position of the Hotel At the beginning of the simulation the financial position was not that stable as the clients had not been familiar with the services being offered and the hotel was not popular. The hotel was generating less income as few clients often visited it for various services. On the other hand, it had less facilities that could not accommodate many customers at a time. The management had to come up with a way to attract many clients so as to generate more income. The hotel faced various difficulties at the beginning as it was not well known by the public. The challenges faced made the progress of the hotel a little bit more difficult. There was high competition from the developed hotels in the major cities. They had various facilities that the customers opted for from time to time. In addition to that, the hotel was located in a town that was not highly populated like other cities. The local people rarely attended the hotel and people from other locations were the most frequent. The lack of more customers reduced the income of the hotel and the financial status was not stable. It was the duty of the managers to come up with ways to attract the clients so as to generate revenue to pay the employees and also develop the hotel (Casson, 2008). The current financial position of the hotel is stable than the previous as various changes have been implemented. There has been the expansion of the hotel and more facilities brought in to cater for the customers demand. The location of the hotel has been a tourist attraction site as many of them spend the weekends and vacations at the coastal region. The climate condition of the area is very favorable. The hotel has been advertised on various platforms to enable the public to be aware of the services that they offer. The increased number of tourists in the region has ensured that the income of the hotel has also increased. The services offered by the hotel are very attractive to the people and they are significantly affordable. The stability of the financial status has progressed well due to the stable income in all seasons. The management of the organization has put all their efforts in delivering quality services to the customers from time to time. Strategies Implemented The management of the hotel has come up with various strategies that has enabled it to be in that position. First of all, there are several departments dealing with various tasks and they work hard to ensure that hotel is running smoothly. Every department manager ensures that the employees work hard and deliver their best in serving the customers. Secondly, there has been the development of the access roads to the hotel that provide easier accessibility. Moreover, it has close proximity to the airport and is linked by the railway and the bus links. It enables the clients to travel comfortably and visit the hotel to enjoy themselves. Thirdly, various infrastructures have been built so as to expand the hotel and also more facilities have been introduced. The conference rooms have been built to ensure individuals hold their meetings at an affordable price. The families have also been provided with the leisure facilities as most of them visit the hotel on the weekends. Fourthly, the qua lity services offered at the hotel has enabled the hotel to progress so much as the clients are contented. The foods, drinks and accommodation at the hotel are affordable to the customers and it ensures they opt for the services from day to day. The buildings have also been well-constructed to attract the customers. The coastal region climate has also enabled many tourists visit the place. Lastly, the employees attend the clients with respect and dignity. They have been trained on how to serve the customers as they must undergo training that is offered by the hotel. In addition to that, the management has done marketing of the hotel on various platforms so as to create awareness to the public (Eigenhuis Dijk, 2007). Changes in the Major Financial Indicators There have been various changes in the financial indicators that help to determine whether the hotel is financially stable. The income of the organization has greatly increased as the number of the customers visiting the hotel has also risen. On the other hand, the cash flow has also improved as the organization has been able to pay up the employees and also expand the business. More infrastructures have been built to cater for the rising number of clients who often visit the hotel in and out of the season. In addition to that, there has been an increase in the profit that the hotel gains each and every month and also yearly. It shows the good progress of the business and gives morale to the management to continue with their hard work. The objectives of the enterprise have also been achieved thus showing the organization is progressing in the right way (Kourdi, 2009). Stakeholders Perspectives The stakeholders of the hotel are contented with the progress of the business as they are sure that their invested cash will not go to waste. Their main objective is for the hotel to grow and become popular to the public for its good services. On the other hand, the management should also be focused and exercise their authority to ensure that all the departments are running as expected. The non performing managers and the employees should not be retained in the business and a warning should be given to them. If the individuals do not change they should be fired and new workers to be employed to handle the tasks. It is their duty to oversee the progress of the hotel and rectify where they see things are not heading in the right way. The hotel objectives short term and long term should also be adhered to for the business to meet its targets. In addition to that, they view the increase in income and profits as good for the enterprise as there is a positive progress. Lastly, the miscondu ct of the staff members should not be tolerated as they will lead to lose of customers who are vital to the business. There should be a stern warning and if it does not work they should lose their jobs and new individuals hired (Kourdi, 2009). Proposed Targets The hotel management has come up with various strategies and targets that will help the business have a five growth and make a great positive impact. First of all, the hotel targets to buy the neighboring land so as to build various recreational facilities that will accommodate more families during the weekends and vacations. It will be good target as many families spend their time at the area from time to time. The hotel has been well known now for its services and the move will ensure that they generate more income. Secondly, it will also target the individuals who hold meetings and develop more conference rooms to accommodate the large number of individuals. Many companies or groups opt to hold their annual meetings in various specific areas that they will have refreshments and away from the offices. The hotel will offer the service at affordable price so as to attract more customers. Thirdly, the security will be increased at the hotel and security guards will be hired to man the place. Moreover, the cameras will be installed in all locations and monitored to ensure the safety of the customers. Lastly, the hotel will offer foods from various tribes as the demand for them is highly increasing (Abels Klein, 2008). In addition to that, the managers will ensure that the clients get entertained by providing entertainment twice per week and on the weekends. The local musicians and dancers will be hired to entertain the people. It will be a great strategy as the customers will feel motivated and always enjoy the moments at the hotel. Moreover, the highly qualified employees will be hired so as to handle various tasks in the institution. The human resource manager will handle the interviews and also allocate the workers the jobs they will undertake. The available vacancies will be advertised on the media, newspapers and on the hotel website. The management will also advertise the services of the hotel on various platforms to ensure that the public gets awareness. The funds to undertake the advertising and promotion will be budgeted by the managers and set aside. The strategy will ensure that the business acquires more customers and hence increase in income. The prices of food, drinks and accommodati on will be slightly reduced and discounts offered so as attract more customers. The people like the hotels where the costs are favorable and also fit their budget. It will be a great move by the hotel management as it will ensure a constant growth in the next five years (Abels Klein, 2008). Risks Identified and Contingencies Suggested There are risks that can be faced during the running of the business from day to day basis. First of all, misappropriation of funds by the managers that is essential for various developments. It will lead to losses in the business and the hotel may collapse. Secondly, there is the misconduct by employees and lack of respect to the customers at the hotel. It will reduce the number of the customers as they are addressed in the right manner. The clients need to be maintained as they are the source of income. Lastly, poor communication from the managers to the subordinates will lead to misunderstanding or no cooperation. On the other hand, in the future there may be high competition from the upcoming or the already established hotels. The managers need to be prepared so as to remain in the market and retain the customers. Moreover, there may be an increase in the number of clients and the organization should have plans to expand the place and also create other branches to serve the custo mers better. However, there will be a good financial implication on the Return on Investment, Return on Assets and the pay-back period. It will be facilitated by the continuous progress of the enterprise making profits and the developments made (Andreas, 2011). Conclusion In conclusion, the hotel will have a steady growth if properly managed by the managers appointed to handle the task. The stakeholders should also oversee the progress of the business to ensure that the management does not misuse the funds. On the other hand, the employees serving the customers should do so with respect and dignity for them to appreciate the service. 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