Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Sleep Tight is a guesthouse on a plot in a town on the Zimbabwe border. The owner, Sara, started the guest house in
The Sleep Tight is a guesthouse on a plot in a town on the Zimbabwe border. The owner, Sara, started the guest house in 2000 with 6 rooms outside the main house and expanded to such an extent that the number of guest rooms in January 2020 was 35. The main house was diverted into a restaurant in 2008 that became very popular, not only for the guests staying over but also for the people of the town. Sara bought the adjacent plot in 2012 at a very competitive price when it came on the market with the idea to develop another guest house. The Sleep Tight guesthouse was popular with especially businesspeople who worked on contracts in Lesotho as well as people that wanted to take a break from city life over angekends. This resulted in the guest house being approximately 90% full during the week had 50% full over weekends. In March 2020, just before the lockdown due to COVID-19, She continue to pay the salaries of the employees and the bond out of her savings, but by the salary bill was R72 000 and the bond on the adjacent plot R15 000 per month. She could salary permanently employed kitchen staff members, 10 cleaners and 2 gardeners. Her end of January 2021 she knew she was financially in trouble because the savings were nearly depleted and business was picking up at a very slow rate. Explain to Sara the turnaround strategies that could help to change a business around. f
Step by Step Solution
★★★★★
3.53 Rating (153 Votes )
There are 3 Steps involved in it
Step: 1
Turnaround Strategies for The Sleep Tight Guesthouses ShortTerm Strategies 1 Cost Reduction Renegotiate Expenses Renegotiate rent leases and contracts with suppliers for better terms Staffing Analyze ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started