Question
Need help on the TOWS Analysis and Porter's 5 Forces on this case Background X Hotel is a 326 rooms hotel opened in November 2011
Need help on the TOWS Analysis and Porter's 5 Forces on this case Background
X Hotel is a 326 rooms hotel opened in November 2011 situated in Malaysia. The company is a family-owned business currently managed by 2nd generation. 1st generation of the family focused in textile industry and the manufacturing plant has moved to another country 30 years ago.
X Hotel is the first hotel the family opened for entering hospitality industry. It initially planned for a 3 stars hotel with strategic location to provide affordability and convenience to business travelers. X Hotel also provides capabilities to cater meetings, incentives, conference and event up to 2000 people at a time. The biggest hall can accommodate 1000 people with round table set up.
In 2016, motivated by Malaysian government's tax incentive program for 4 stars hotel, X Hotel expanded its facilities with a new out-door swimming pool and 2 extra ballrooms and acquired 4 stars hotel status.
In 2018, the family-owned and managed hotel shifted her direction to hire external General Manager to manage the daily operation and responsible for the revenue of the hotel.
In December 2019, Covid-19 global pandemic start making countries adopting different forms of travel restrictions to contain or slow down the spread of the virus. Malaysian government implemented Movement Control Orders (MCO, MCO 2.0, MCO 3.0) in 2020-2021. The order has restricted the travelling activities and wipe out the demand of hotel rooms completely.
After Malaysia eases all controls in May 2022, domestic tourists resume travelling activities and demand for rooms has improved after almost 2 years of close to zero demand of rooms. However, many skilled workers, foreign workers and contract workers has left X Hotel and the hospitality industry due to series of unpaid leave, frozen of employment, fell of uncertainty in the 2 years of global pandemic. The productivity can't keep up with the demand. Partially due to high staff turn over - nearly all department head level managers have left the company in early 2022. Further, Malaysia government announced new minimal wage order in 2022. It increases the minimal wage by 25% to RM 1500 from 1200 per month.
As at June 2022, after 1 month of ease of movement controls, the maximum rooms X Hotel available to sell is merely 200 rooms a day instead of 326 room inventory. Her conference and event capacity also reduced to 800 people per day maximum. During the 2020 - 2021 the owner-family has cough out over RM 5.5 million in total to keep the hotel running with minimal revenue. Now the owner-family is giving extra pressure to the General Manager on giving deadline of opening hotel back to full capacity. Although the revenue has increased, the workload and lack of training has caused increasing number of guest complaints, room defects rate and unsatisfactory rate of employee has also increased. To motivate the General Manager to achieve higher revenue, board of directors has offered the General Manager a tier-based incentive of 3 months/4months/6months on annual revenue of RM 16 million / RM 17 million / RM 18 million by the end of 2022. General Manager responded, "I will be doing my utmost to achieve the highest revenue possible and appreciate this incentive". Annual Revenue 2015-2021
2015 | RM 17.3 million |
2016 | RM 16.4 million |
2017 | RM 15.4 million |
2018 | RM 17.9 million |
2019 | RM 17.6 million |
2020 | RM 6.2 million |
2021 | RM 7.4 million |
January | RM 0.93 million |
February | RM 0.86 million |
March | RM 1.1 million |
April | RM 1.0 million |
May | RM 1.68 million |
June | RM 0.99 million (as at 15 June 2022) |
2018 | 154 |
2019 | 141 |
2020 | 113 |
2021 | 121 |
2022 as at Jan 2022 | 122 |
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