The Imperial

Strengths -Most famous seaside hotel -Good corporate Image -Good reputation -High quality service -High quality housekeeping Weaknesses -Cashflow and liquidity problems -Shrinking market share -Seasonal business -Human resources Opportunities -globalization -Safari of cultural tourism Threats -political unrest -new hotels with better facilities -strike action

 Shareholders present in USA, Japan, and South Korea  Method of Management – appoint a manager – generate profits – dividends paid to GP  Once a year – BEQ, TP & MOS calculated

 Personal HistoryProfessional Life Father worked at Imperial Born and brought up in London Multicultural Society (African Descent but Westernized) Needs fulfilled (Maslows Hierarchy) Performance Related Pay Employees thought she was too westernized

Martin Laissez FaireEmpowerment and DelegationWarm Friendly and Outgoing Susan Autocratic Scientific Approach Clear Chain of Command Task Oriented Similar Education Did not fit the Kenyan Society Efficient, Hard working and committed

Marketing Competitive position deteriorating Market share decreasing Finance Working Capital Problems Liquidity Problems HR Martin and Susan’s Relationship Housekeeping Problems Operation Overseas Catering Problem (stock)

Page 2Page 3Page 4 1.Primary Sector 2.Market Opportunity 3.Diversify 4.Cashflow 5.Liquidity Management 6.Sole Trader 7.Corporate Image 8.Reputation 9.High Quality 10.Investors 11.Subsidiary Private Limited Company 12.Globalized World 13.Hands off 14.Profit 15.Dividends 16.Break Even Quantity 17.Target Profits 18.Margin of Safety 19.Multicultural Society 20.Recruiting 21.Westernized 1.Salary 2.Performance related pay 3.Competitive Position 4.Market Share 5.Budget 6.Long-term 7.Secondary Market 8.Marketing Audit 9.Position Map 10.Working Capital 11.Liquidity Problems 12.Profit Centres 13.Non-Revenue 14.Financial Accounts 15.Cost Centres 16.Profit and Loss Account 17.Balance Sheet 18.Financial Performance 19.Closing Stock 20.Actual Stock 21.Human Resources 22.Motivation 23.NPO 24.Discriminated 1.Leadership style 2.Efficient 3.Task oriented 4.Committed 5.Bureaucracy 6.Formal Accountability 7.Clear chain of command 8.Scientific approach 9.Decision making 10.Laissez-faire 11.Empowerment 12.Delegation 13.Autocratic 14.Informal communication 15.Appraisal meeting 16.Dissmissal 17.Training 18.Absenteeism 19.Strike action 20.Negotiation 21.conflict

 Reached decline phase of product life cycle.  Mass renovations required in order to upgrade the hotel and reposition it to its former place as the premier hotel in Mombasa.  This would require substantial investment. ◦ in the physical condition of the hotel almost to rebuild it entirely ◦ in its marketing in order to re-launch it, maybe even with a new brand name.  same customer types, but the product would be much improved.  need an improved workforce

 Transforming all the rooms into self-contained apartments with small kitchens.  Target market: business travellers staying at least one week.  The marketing audit had revealed that: there is an increasing demand for such apartments very few hotels in Mombasa offer such apartments the market is still small the market has high growth potential.  Lower fixed/variable costs.  Apartments serviced weekly  this option could reduce the  housekeeping staff by 70%

 Form a strategic alliance with the famous safari tour company KenSafar for a two-week package tour.  Onyango, a spontaneous, dynamic and charismatic Kenyan who had many networks and contacts, and intuitively knew market trends, even without market research.  Kamau insisted that if the strategic alliance were to go ahead The Imperial would have to: make some improvements to the appearance of the hotel pay Kensafar a 20 % commission for all hotel guests staying at The Imperial and booking through KenSafar.  undertake a marketing audit.

 Product life-cycle  Target market  Workforce planning  Human resources strategic planning  Marketing audit  Growth potential  Fixed costs  Variable Costs  Strategic Alliance  Market trends  Market research

Tourism Foreign tourist arrivals Admissions to safari park Admissions to museums and historic sites

Hotel accommodation Rooms available Rooms occupied

Two possible approaches:  Approach 1: “Up skilling” the existing workforce emphasis on “internal’’ recruitment strong emphasis on training and development no concern about staff retention rate, as most employees would be Kenyan.  Approach 2: Building a new global workforce emphasis on “external” recruitment little emphasis on training and development major concerns about staff retention rate, as most employees would be international.  Features common to both: recruitment training and development retention.

 Internal Recruitment  Staff Retention Rate  External Recruitment  Training and Developments

- Maulik - Aditya - Aman - Sharmi - Nimai - Shubham