TRM 472.01 PROJECT PRESENTATION

8/6/2019 TRM 472.01 PROJECT PRESENTATION

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TRM 472

BUSINESS STRATEGY

Group Members:

Gnce Malan

Yasemin AksoyNee Roman


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Contents

1.Introduction

2. External Environment

3. Internal Environment4. Identification of Problems and KeyOpportunities

5. Possible Strategies

6. Recommendation

7. Implementation


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First hotel opened in 1961, Toronto, Canad Canadian based international luxury hotel

management company Located in Sultanahmet 65 guest rooms Luxury chain boutique hotel


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External Environment

ECONOMIC ENVIRONMENT

International tourism had recovered with the

growth of 7% in 2010. Uncertainty in many economies to

unemployment and increasing energy prices.


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POLITICAL ENVIRONMENT

Policies, legislations, code of laws affect the

supply and demand in tourism. The political instability has negative impact on

hospitality. (Mavi Marmara Ship Case)

Legal forces on hospitality industry ( VAT 8%for accommodation, 18% alcoholic beverages)


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GLOBALIZATION

Business travel hasincreased

International

boutique hotel chains


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TECHNOLOGY

!Technology is life!


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INDUSTRY

Boutique hotel

categorization Tourism industry in

stanbul

Structural barriers(high capital costs, poorinfrastructure facilities,scarcity of land)


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TRENDS

Green Hotel Trend

Internal da sertifkadan bahsediliyor mu?


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COMPETITION


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External EnvironmentExternal Evaluation Matrix

Key External Factors

Opportunities weight rating weighted score

The continuous growth trend in hospitality industry 0.27 2 0.54

International business 0.07 3 0.21

Growth in F&B 0.07 4 0.28

%8 in VAT 0.05 2 0.1

Istanbul as leading city in boutique hotels 0.11 4 0.44

Threats

Competition 0.1 2 0.22

Economic crisis in 2010 0.16 3 0.48

Instability in politics 0.07 3 0.21

Changes in consumer behavior 0.01 2 0.2

Total 1 2,18


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FS Sultan Ahmet Bestwestern Acropol WHotel


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INTERNAL ENVRONMENT


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MISSION AND VISION

Golden Rule to treat others as wed wish to betreated ourselves- as guiding principle.

The greatest asset and the key factor for theirsuccess is the people.


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ORGANIZATIONAL CHARTGENERAL MANAGER

F&B EXECUTIVE

FRONT OFFICE MANAGER

SALES EXECUTIVE

BANQUET SALES EXECUTIVE

HOUSEKEEPING EXECUTIVE

TECHNICAL SERVICE EXECUTIVE

SECURITY EXECUTIVE

HUMAN RESOURCES EXECUTIVE

IT SUPERVISOR

ACCOUNTING MANAGER


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HUMAN RESOURCES

- Diversity in the workplace-Training to employees at all levels to help allstaff reach their potential with the company

-Career growth opportunities and educationalassistance for its valued employees

-Annual party and sporting events, life insuranceand medical insurance, paid holidays, incentivebonus and employee service awards.

-Open Door Policy


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FINANCE

Thanks to its worldwide brand name-Four

Seasons , the hotel has a good financial positionand Four Seasons Sultanahmet could cover itsworking capital and operational expenses.


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MARKETING MIX

1- Product: The core product of the hotel is theaccommodation and the supplementary products arethe historic architecture, high technology equipmentsand SPA services.

2- Price: Yield Management and special promotionspeculiar to special occasions such as Valentines Day,Holiday Season or weekend promotional packages.

3- Place: Internet (Four Seasons hotels officialwebsite), computerized systems like CRS & GDS, andadvertising channels through media (i.e. magazines),PR activities, and barter agreements.


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MARKETING MIX

4- Promotion: Internet, sky magazines, and mediathrough brochures. Some travel agencies have alsopromotional agreements with Four Seasons

Sultanahmet. Facebook and Twitter5- People: Direct, personal interaction betweencustomers and employees

6- Process: FS Sultanahmet provides high level ofcontact and people-processing services by nature.


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MARKETING MIX

7- Physical Evidence: The hotel was created from acentury-old neoclassic Turkish prison in the core ofthis fabled city steps from the Blue Mosque andTopkapi Palace. 65 guest rooms and an open

courtyard with full of colorful flowers.8- Productivity and Quality: The quality of the servicecreates productivity. Communication with customers

by internet and phone are being technologicallyimproved to keep quality high. Recognizable brandname provides sustainability.


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MANAGEMENT INFORMATION

SYSTEMS

Systems are automated; they are using Operaprogram. All the systems they are using currentlyupdated from both Canada and Switzerland. Oneach Four Seasons property they are currentlyhaving Four Seasons RSS (Really SimpleSyndication) systems.


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OPERATIONS

Rooms sold through travel agents includingwholesalers and tour operators. Other marketingactivities include Web sites, seminars and videos,

direct response marketing and international saleschannels.

Meeting facility is efficient. Since the hotel

has a limited number of accommodation facilitybut still can serve up to 275 people in terms ofmeetings.


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IDENTIFICATION OFPROBLEM

Differentiation

in customer service quality by: brand name,

employee motivation,

high-quality service, good financial position.


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Main threats :

C

ompetition, Similar offerings,

instability of politics,

economic situation.

KEY OPPORTUNITIES

continuous growth in hospitality industry,

discretionary income has been increasing,

more time to travel, more business requiretravel.


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POSSIBLE STRATEGIES


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POSSIBLE STRATEGIES Increase marketing activities + increases the number of guests

+ increases the brand value

_ marketing costs are high.

_as the product offered in the industry is same, reaching the right target is difficult.

Give monthly training to employees and test their interpersonal communication skills

+ having higher qualified employees

+ increase in customer satisfaction

+ increase in service quality

_ difficult to make employees attend trainings

_ training costs

_requires feedback and control mechanism

Increase the variety ofF&B products and offer catering service

+ increase in guest satisfaction

+

increase in revenue _ difficult to find qualified chefs

_high cost

_ managing different product lines are difficult

Invest in updated technology

+ opportunity to follow new trends

_ high cost


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A SPACE MATRIX for Four Seasons Sultan AhmetFinancial Strength

F&B divisions profitability 4.0Low employee turnover 5.0

9.0Industry Strength

Growth trend in hospitality industry 2.0Profit potential 1.0Growth in F&B 4.0

7.0EnvironmentalStability

Technologicaladvances -5.0

Competitive pressure -4.0Effects of economic crisis on the range of competing services -3.0

-12.0Competitive Advantage

Customer loyalty -2.0Service quality in F&B facilities -1.0

Strong brand name-1.0

-4.0

ES Average is -123= - 4 IS Average is +73=2.33CA Average is -43= -1.33 FS Average is +92=4.5

Directional Vector Coordinates:x-axis : -1.33+(+2.33)= +1.00y-axis: -4+(+4.5)= +0.5

Four Seasons Sultan Ahmet should pursue Aggressive Strategies.


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RECOMMENDATION

- Product development- Differentiation strategies


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IMPLEMENTATION

Product development :

expand the variety of

F&B products that arecurrently offered,

invest in updated technological products,

increase number of rooms,

build off site recreation facilities


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IMPLEMENTATION

Organic garden project

Expansion in the variety ofF

&B

products Invest in updated technological products,


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FINANCE

Four Seasons brand hasan international budgetfor innovations in each

location all around theworld. Four SeasonsSultanahmet will use itsportion from this

international budget inorder to finance thisinnovation.


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Documents

TRM 472.01 PROJECT PRESENTATION