Question
Section 1 Strategic Purpose Based on the case, clearly articulate, with use of examples from Vibe Hotel's profile, what you view as the Mission, Vision,
Section 1 | |||
Based on the case, clearly articulate, with use of examples from Vibe Hotel's profile, what you view as the Mission, Vision, Strategy and Goals/Objectives for Vibe Hotels going forward and how your leadership style can be used effectively. | |||
i. Mission | |||
ii. Vision | |||
iii. Strategy | |||
iv. Goals and Objectives | |||
To assist you in determining the focus for your strategic change and supporting the need for change and finish PESTEL analysis. PESTLE: Research and identify actual examples of the key environmental factors impacting Vibe Hotels current operation in the market. Cite your sources used for each factor. | |||
PESTLE: Research and identify actual examples of the key environmental factors impacting Vibe Hotels current operation in the market. Cite your sources used for each factor. | Political: | ||
Economic: | |||
Social: | |||
Technological: | |||
Legal: | |||
Environmental: | |||
Based on the 'New Direction' plan identified in the case, Finish SWOT analysis to identify the current Strengths, Weaknesses, opportunities and threats for the organisation. | |||
Strengths | Weaknesses | Opportunities | Threats |
Section 2 OBC1 Briefing the Board of Directors | ||
You will meet with the Board and present the following to them: i. The need for transformation based on your findings in Section 1 above. ii. Intended outcomes and benefits of strategy implementation iii. How the strategy will be implemented iv. How the strategy will be communicated to staff and stakeholders and establish the communication channels for organisational personnel to contact management v. Provide the board with an overview of your analysis of the leadership styles and how they may impact the change processes and plans | ||
Meeting date | ||
Attendees | ||
AGENDA | ||
Topic | Topic Notes (prepare prior to the meeting) | Discussion notes (Notes taken during the meeting |
The need for transformation | ||
Intended outcomes and benefits | ||
How the strategy will be implemented | ||
How the strategy will be communicated to staff and stakeholders | ||
Communication channels during the change process | ||
Overview of leadership styles and the impact, hinderance or support they will provide to the process. |
Case study:
Vibe Hotels: A Case Study for Change Management
Vibe Hotels' mission states that it puts hospitality services on the highest level in order to satisfy the demands and expectations of guests. Their vision is to make the Hotel Grand a place for guests to have unique and intimate hotel experience blending old world charm with modern and accessible amenities.
Their motto "Comfort Made Easy" is meant to express the desire of the team to make guests feel like at home as much as possible by taking care of them.
However, it has not been smooth sailing for the organisation or for that matter most hotel operators globally over the last few years. COVID and the economic uncertainty presently felt around the world has many concerned about the future of hospitality. Prior to these challenges, many smaller hotel chains were already competing with the disruptive industry led by companies like AirBnB, Homeaway as well as booking agencies like Booking.com.
"You cannot wait for direction from the business environment, what the competitors are doing and such although you must at all costs be aware of them; you have to seek opportunities where they lie. Having less business due to lack of occupancy demand should also mean that now is the time to create value for the future of the business. Being proactive is key.", Esta maintains. "As such, Vibe Hotel Group has embarked on a radical and what we feel to be an instrumental strategy of change to be better be able to manage our issues, embrace technology, optimise our strengths and look to the future with a clearer focus of what we are and what we do for our guests".
The issues she mentions have been a part of Vibe's operations since the start. These include:
1. Less than effective management,
2. Poor customer service standards and employee development,
3. A lack of continuous improvement and innovation and
4. A poor strategic use of operational resources and facilities.
- Ineffective Management:
The previous hotel property general managers had a legacy that was not all positive -many habits of poor communication, decision-making and leadership which has resulted in poor idea sharing, a lack of participation from staff, and a lack of confidence and motivation. The culture fostered by management was one of 'management by exception" where managers only felt they needed to step if the need arose to quell problems, while leaving hotel employees with the 'ownership' of dealing with them.
Also, little effort was made to review and analyse issues across the chain, with each property from the group of eight operated in isolation when it came with dealing with such issues.
- Low Customer Satisfaction and Employee Management Development:
Moreover, these issues were already present prior to the COVID pandemic. With the crisis, the hotel has had an even tougher time at meeting operational needs such as hiring, training and retaining staff. The four hotels have 280 staff in total.
Complaints and criticisms by guests were very often left unattended. These include long waiting times to get access to their rooms, inefficient front desk processing, wrong billing and a dismal lack of service from housekeeping. Little attempts were made to rectify issues raised by staff and customers. Staffing was always an issue with high levels of turnover resulting in new staff being onboarded abruptly which has led to serious customer service lapses.
Previous employees often felt that while the work and shifts were expected to be demanding and they could rely on feedback systems of communication to management that were put in place like a monthly team and quarterly
company-wide 'all-hands meeting', very few staff actually did use those opportunities feedback to management largely in part to the perception that it would be of little use. Morale is lower than desired as a result.
- Lack of Continuous Improvement:
COVID19 forced many businesses to relook at their operational efficiency and how to survive, innovation and improvement was key. Vibe Hotels, whilst able to maintain profits and stable mild growth over the years, was led by a management philosophy that did not seem to keep up with the times. With the advent of organisations like AirBnB and the bigger chains opening up smaller hotel chains as in the case with Westin Groups's W chain of business-oriented boutique like hotels, Vibe has been doing what it has been doing since its started and in the same ways. There has never been an update to marketing strategies, no innovative products or services added to increase value to guests, no collaboration with online booking agencies, tour agencies or any other potential partners that could increase its visibility and market share.
- Resources and facilities use
All vibe hotel properties offer the various facilities: a gym, conference rooms, office spaces, event rooms, caf, gift shop. Of those mentioned, only the gyms seem usage that come close to be being utilised sufficiently to be considered an effective facility. The conference rooms and event rooms have seen a severe drop in usage after the pandemic, being vacant spaces for most of the time. The workspaces do seem some usage but at a decreasing rate with many business guests opting to work remotely in the rooms with the ease of Zoom meetings and other such COVID19-necessary tools coupled with the fact that hardly anyone requires a printed hardcopy of a document these days. The Vista cafes are busy for the breakfast crowd but see almost non-activity for the rest of the day and the gift shop with its souvenirs and necessity items has been returning lower than expected returns.
The New Direction for Vibe Hotel Group
Under the charge of the newly appointed CEO, Vibe Hotel Group is determined to improve its position in the market. While maintaining its core corporate identity of catering to "business travellers looking for quick and fuss free accommodation and access to the city as well as for families and couples looking for that exciting urban adventure, visits to familiar landmarks and city sightseeing, shopping and more", the new direction includes updating its offering as a modern, chic and innovative hotel chain that has its vision, mission, culture carried across all 8 of its properties with management in each hotel working closely with the next.
The team has decided to revise its business model by implementing a change management plan based on the following:
- Shared goals, targets and group objectives
In place of previous independent reporting by each respective hotel property, there will be in place reporting by group with the shared use of data from revenue and operating costs. Best practices will be regularly shared across the teams to ensure compliance and consistency of the group's standards. There are some concerns over how this is to be done and how it will impact properties with distinct issues depending on where they are located.
- Hotels to be managed by compact and competent staff. Rather than constantly scurry to replace resigned or terminated staff in a hurry to maintain the stipulated headcount requirements, a task force will be formed from across the various departments from each of the hotel property. Working closely with group HR department, a proposal will be sought to find the most efficient, lean and compact operational framework possible. Following that, it is imperative that an Employee Learning and Development Framework is introduced to ensure that the employees are motivated and are able to contribute effectively in this new culture.
This has raised concern and worry amongst the staff as to many it sounds like 'downsizing' and management has vowed to provided more information on this to alleviate this.
- Introduction of automation and technology to ease overloading staff
Rather than face the issues of rostering staff teams for 24-hour shifts at the front desk, concierge, kitchen and housekeeping, Vibe Hotel group will be investing $1.8 million in equipping its properties with automation such as:
-24 hour self-check in kiosks for guests and automated billing and checkouts
-room service and housekeeping robots service all rooms and indoor facilities
-card key access to gyms, office spaces and automated gift shop services
Staff now will be facilitating guests should they have issues with the automated facilities above which would require less effort on their part so they can focus on enriching the guest's experience via better personalised customer service. This would involve many staff having to be trained in other areas that the ones they used to work in and to adopt new skills that will be necessary. Also, to ensure that guests enjoy a smooth experience with the automated changes, much has to be done to ensure that in addition to having staff present to assist, that processes and procedures for the above are clear and user-friendly. As it does in many instances, the word automation brings along with the connotation of staff redundancy and layoffs. Management is determined to ensure that the communication of this is clear as is the purpose for the automation for the organisation.
- Effective use of facilities
Being positioned in the various cities prime CBD areas, the use of space is crucial and any facility of the hotel that could be improved in terms of its usage should be analysed. Vibe Hotels revenue from the rental of its conference and event rooms have not high enough to justify it being offered. As such, management has decided to convert all event and conference rooms into smaller function rooms as well as removing the business centre entirely and installing into small wall-lined workspaces instead. The remaining spaces converted into extra guest rooms to expand yield revenue. This would lower staffing requirements as well as allow allocation of staff to more needed areas like the caf and guest services.
Out With the Old, In With the New
The 8 hotels are currently in various stages of renovation to accommodate the new business model as well as its new look. Most of the operational staff have been temporarily stood down with pay in anticipation of a reopening in the coming months. Many of the staff are worried about the future of working at the Vibe Hotels and some have resigned to go on to other jobs whilst those that have remained are concerned with the temporary closure and change in senior management.
It is now October. The management team have planned for the hotel chain to reopen for guests over by the January school holidays with new changes in its management style, culture, staff development and benefits and has made it clear to all staff that with a relaunch of the business that a new approach to management, employee management and customer service standards will follow.
About Vibe Hotels
Vibe Hotel Group's hotels are focused in providing the best in quality accommodation, unique and intimate experiences, personalised customers service in the cosmopolitan areas in Australia's major cities.
The group has 18 hotels in urban settings, offering a total of over 1200 rooms, in major cities like Sydney, Melbourne, Brisbane and Perth.
We are the perfect choice for business travellers looking for quick and fuss free accommodation and access to the city as well as for families and couples looking for that exciting urban adventure, visits to familiar landmarks and city sightseeing, shopping and more.
All rooms represent the popular modern yet elegant style of international boutique hotels. Each of the rooms with their simple, fresh, and warm style, and welcoming colours meet the latest city design and comfort standards within the rustic charm of old conservation style buildings. Thestylish interiors of our rooms are completed by LCD television, high-speedwireless internet connection, minibar. Most of our rooms are equipped with queen-size double beds. All rooms are non-smoking.
Our hotels all offer a gift shop, gym and an international buffet breakfast with hot & cold food selection. The hotel's Lounge Caf & Drink Bar provides a perfect place for chilling during the day, where guests can enjoy a great selection of coffee, tea, cocktails, and other beverages.
Vibe Hotels' mission is to put hospitality services on the highest level in order to satisfy the demands and expectations of guests. Their vision is to make the Hotel Grand a place for guests to have unique and intimate hotel experience blending old world charm with modern and accessible amenities.
Our motto "Comfort Made Easy" expresses the desire of the team to make guests feel like at home as much as possible by taking care of them
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