Task:
This semester we have discussed the importance of keeping abreast of changes and developments in those environments which can and do influence the business and industry we are engaged in. We have learned that these environments range from the REMOTE to the firm’s INTERNAL environments. The remote environment was divided into several categories such as political, economic, socio-cultural, technological etc.
According to the coalignment principle, successful firms collect, collate, and analyse information gathered from and regarding these environments. This analysis is intended to determine several things about the changes identified, for example, how likely it is the potential changes will occur, how soon is the change likely to occur, and what is the likely impact this change will have on our firm? The answers to these questions (amongst others) will influence how the firm’s management chooses to respond. The next component of the coalignment principle is STRATEGY SELECTION. In order to make an effective strategy selection, a range of strategy options need to be identified and considered.
The General Manager and Franchisee of a Serviced Apartment Hotel opened 4 months prior to the COVID19 pandemic commencing in Perth, and was looking at implementing various strategies based on the news that all International borders would close until further notice. Furthermore, there was uncertainty about the closure and management of the Australian state borders.
With the news of the border restrictions announced, the Serviced Apartment Hotel lost 95% of all its forward booking for the next 12 months. Even with the loss of most of the revenue and bookings, the hotel chain was committed and decided to continue to operate during the COVID-19 pandemic, unlike a number of competitors who chose to close their doors.
What requirements need to be considered from Sales and Operations whilst considering the changing
environment.
environment.
Consideration of Sales and Marketing activities to drive potential domestic travellers from both the Corporate and Leisure market.
New Government COVID-19 operational regulations that will be required to be adhered too, whilst operating a Serviced Apartment Hotel during COVID-19.
Minimising outgoings in every area of the business to save costs.
New Government COVID-19 operational regulations that will be required to be adhered too, whilst operating a Serviced Apartment Hotel during COVID-19.
Minimising outgoings in every area of the business to save costs.
The General Manager was very concerned about the immediate loss of business and its reliance on interstate travel while knowing they had a financial commitment to forthcoming fixed operating costs. With this she called upon the Business Development Manager and Front Office Manager to present strategies for both Sales (revenue driven) and Operations (cost mitigation) for the next few months considering the border restrictions that were in place at the time and that these were continuously changing, as the seriousness of the pandemic escalated.