Posted: March 25th, 2021
Read the case found at the end of Chapter 10 in your textbook and write a two- to three-page paper (excluding title and reference pages), according to APA style guidelines, on the following items:
The case is as followed:
The Squire Hotel Group (SHG) runs a chain of 20 hotels, with between 40 and 120 bedrooms, in locations that include Oxford, Warwick and Southport. SHG sees itself in the three-star market, with hotels that have their own personality and style, providing high-quality food and service at an affordable price. The majority of mid-week guests are commercial clients. The normal mid-week occupancy rate is about 80 per cent. Weekend occupancy is about 30 per cent, comprising mainly weekend break packages. The company does not have any major expansion plans but is trying to strengthen its existing market position.Squire’s managing director, Justin Palmer, believes that it has a high degree of customer loyalty in the commercial sector. He explains:
The Squire Hotel Oxford has 41 bedrooms and is situated close to Magdalen College. The entrance lobby is small but pleasantly decorated. The room is dominated by a grandfather clock and an elegant mahogany desk. ‘I do not like the traditional counter arrangement,’ explained Charles Harper, the hotel’s manager. ‘I like a simple, open and friendly situation with a clear desk to demonstrate our uncluttered and caring attitude. Even our computers are kept in a small room just off the lobby, out of sight. I want my guests to feel that they are important and not just one of the 70 that we are going to deal with that evening.’SHG’s hotel managers are totally responsible for their own operations. They set staff levels and wages within clear guidelines set by head office. Although pricing policy is determined centrally, there is scope for adjustment and they can negotiate with local firms or groups in consultation with head office. Charles Harper added: ‘Every year, each hotel manager agrees the financial targets for his own operation with head office, and if the manager does not reach his target without good reason, he may well find himself out of a job. I believe that it is my job to be constantly improving and developing this business. This is naturally reflected in the yearly profit expectations.’ The hotel managers report performance to the group monthly on four criteria: occupancy, profit, staff costs and food costs. The information provided allows senior managers to drill down to the costs of individual people and meals.Charles Harper explained:
The restaurant at the Squire Hotel in Oxford has 20 tables with a total seating capacity of 100. The restaurant is well used at lunchtime by tourists and visitors to the local colleges and by local business people. However, there are several excellent and famous restaurants that tend to draw potential customers and even hotel guests away from the hotel restaurant in the evenings.The restaurant managers have considerable discretion in menu planning, purchasing and staffing, providing they keep to the budgets set by head office. These budgets specify, for example, the food and staff costs for an individual breakfast, lunch and dinner. Overall food costs and staff costs are reported weekly to the hotel manager. The style of restaurants in the hotels varies considerably from carvery to à la carte, with the decisions made on the basis of the type of hotel and the requirements of the local community. Elizabeth Dickens, the restaurant manager, explained:
Questions1Evaluate the performance measures in place at the Squire Hotel Group.
2What improvements would you suggest?
Clark, Robert Johnston and G. Service Operations Management, 3/e for Ashford University, 3rd Edition. Pearson Learning Solutions. VitalBook file.
The citation provided is a guideline. Please check each citation for accuracy before use.
Use at least two scholarly sources, in addition to the textbook, to support your points.
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