janit ass. legal

Advanced Diploma Apr 2010 Strategic Management

1. Executive Summary

1.1 Business overview

The Affinia is a boutique hotel located right in the middle of city on 488 George

Street, Sydney. A newly built building also offers a swimming pool, Gymnasium,

tennis court and a cocktail bar inside the premises. Tourists are the main customers

and provide maximum profits to business. There are 4 main business rivals which

Affinia need to deal with the help of marketing strategy and good planning. Business

objectives are clear and their implementation, monitoring and evaluating techniques

are clearly described. Organisation remuneration packages are given with contracts of

employment. planning.

1.2 Ownership structure and explanation:

Ownership Structure:

As explained in Business Structures, there are generally 7 types of business structures,

divided in two main categories:

Unincorporated Business Structures:

Sole trader

Partnership

Joint venture

trust

Franchisee

The Affinia is a limited partnership hotel. the owners of the business may be

personally liable for the debts of the business in case of bankruptcy. The creditors can

personally sue the partners. The income and expense is reported on a separate return

for tax purposes, but each partner then reports his or her pro-rata share of the profit or

loss from the business as one line on his personal tax return.

With a limited partnership, each of the general partners has unlimited liability for the

debts of the partnership, but the limited partner's exposure to the debts of the

partnership is limited to the contribution each has made to the partnership. In this

case, the owners of The Affinia have decided on limited partnership, which means the

legal liability of the owners is limited while they can enjoy the benefits of partnership

Janit Goyal of 40 Student no. 090018


structure business.

Following are a few reasons for the owners of The Affinia to choose the limited

Partnership:

The partners can use their own expertise, make key decisions and handle their

business on their own without paying big salaries to the managers or directors

like companies do.

A partner can leave the business any time in case of dispute or any other

reasons without the need of partnership too be dissolved.

In a partnership partners of he Affinia are able to allocate profits, losses, and

gains as they see fit, regardless of the equity interest of a specific partner;

subject to compliance with tax law.

1.3 Name and location

1.3.1 Business Name:

Affinia Fashion Hotel

1.3.2 Location:

The Affinia

488 George Street,

Sydney,

Australia

2000

Tel: 61-2-9363 4863

Fax: 61-2-9262 0398

1.4 Entry Strategy

Developing a market entry strategy involves a careful study of the competitors and the

potential customers the business will have. The business will have to look into what

they are selling (Hotel room services and cocktail bar services) and then find out:

1. What there resources are: How much money they have, how much knowledge

they have, what are their marketing and technical skills. Will the business be

better off to keep a small customer base or would it be better to get a big



customer base. Is it possible to get more investors in the business?

2. Competition: What is the competition in the market? Would the business be

able to find a place in the market already full of competitors? Does the

business have any unique selling point, which stands it out from their

customers?

Once the business have decided on how much money they can bring in and how much

government is able to help if the business is bought, the partners can think of whether

to buy or to rent the business. While making the decision business should into all the

legal costs of buying and setting a business as well.

1.5 Business potential

The business potential is the feature or the set of features, which make your products/

Servies different from others. These features are also known as competitive

advantages because only your business has those strengths and no other business has

got those benefits to stand out.

Here, the competitive strengths of the business are:

Location of the business (In the middle of the city)

Friendly staff

Previous knowledge of the field for the owners of the business

Special customer attention

Made on a big block on land

1.6 Vision Statement

Vision statement is an overall direction of the business on where the business is now

and what it would like to achieve. The vision statement is an important asset of any

organisation.

The vision statement of the Affinia is to provide excellent customer service.

Increasing customer awareness about the hotel and providing world class cuisine is

Affinia’s passion. We would like to invest and deliver quality services and products to

the customers. Increasing the hotel value and strengthening the devotion of the

constituents is what is looked at and aimed at.



1.7 Mission statement

Affinia, a boutique hotel, has been looking to make sure that each guest gets friendly,

professional and great service. To create a hotel who is exceptional in service and

outstanding in every aspect of its actions. Clean, comfortable and hygienic premises

will be provided to the customers.

All the guests to be treated with respect and care. To impress every customer by level

of care. To thoroughly understand the needs of all the customers and work to meet

them.

1.8 Business objectives:

Business objectives are the targets of the business which are measurable and who are

able to achieve business aims. Objectives help to give the business a clear target.

Plans are made later after the target is defined. This target/ plan help employees of the

organisation understand what is expected of them and what they should focus on.

Any effective business objective should meet the following criteria.

S- Specific

M- Measurable

A- Achievable.

R- Relevant

T- time

Affinia’s business objectives here are:

Focus more on tourists as they provide most of the business to the bsiness.

Provide world class food services.

Provide excellent front house services.

Organisational health and safety standards to be maintained.

Establish position in the market as a honoured and respected hotel.

1.9 Legal requirements

Here Affinia has some legal requirements while starting up business on the basis of:



Business name: The Register of Business Names provides a way for finding

out the details of the proprietors of a business in situations where the business

is not trading under the proprietor’s name. The Register contains details such

as when a particular name was registered and when the registration is due to

expires.

Trademarks and logos: Section 20 of Trade Marks Act 1995 explains that the

registration of trade marks gives the right to use trade marks and to authorize

other people to use your trade mark.IP Australia helps businesses in

registering their personal trademarks and Logos.

Anti discrimination and EEO: The Anti Discrimination Board protects

employees and employers against discrimination at workplace in relation to

sex, racism, age, martial factor, homo sexuality, disability, transgender and

education. This board investigates and conciliates complaints of

discrimination, harassment and vilification; informs and educates the people of

NSW

Superannuation: The Australian Taxation Office is the Government’s principal

revenue collection agency, and is part of the Treasurer’s portfolio. They help

manage and shape tax, excise and superannuation systems that fund services

for Australians with the help of Superannuation guarantee Act 1992.

Food Laws: There are quite a few laws which look after the food served to

business in licensed firms. All the laws stated above discuss safe and unsafe

food to eat. Defences related to food services, inspection, sampling and seizing

powers of government. Finally it discusses all the penalties which could be

imposed on business bodies.

Taxation: There are a few taxes which comply with Australian taxation system

to help run the country smoothly. Whereas the office of state revenues collects

taxes on state level and have no concerns on national level. State revenues

office as well collects taxes, provides different forms to be filled while filling

taxes and look at any refunds to be done.



OHS: Work cover Australia looks into all the matters which can cause any sort

of injuries at work, find out the ways of eliminating them and if not possible to

eliminate, at least preventing them as far as possible

Trade Practices: Australian competition and consumer commission ensures

compliance of the Trade Practices Act. It prevents any business conduct held

in Australia which restricts the competition and reduces the efficiency in

Australian markets.

Licensing: The NSW office of Liquor, gaming and racing (OLRG) looks after

overall regulatory framework across liquor, licensed cocktail bars, racing

serving of liquor is included in the business then you need to lodge a new

application with the department. There are 6 type of liquor license but hotel

license is the one we need in this case.

Insurance: The Insurance contracts Act 1984 explains that both the parties to

have insurance have to rely on each other and should deliver duty of utmost

good faith and duty of disclosure to each other. here are remedies for non

disclosure or misrepresentation.

2.1 Marketing Environment



2.1.1 Industry profile and characteristics of market

The hospitality industry consists of broad category of fields within the service

industry that includes lodging, restaurants, event planning, theme park, transportation

and additional fields in the tourism industry. They are all based on providing comfort

to the guests. In another words, the hotel industry is so vast that many hotels do not fit

one well. Hotels can be classified on the basis of

Location (City centre, motels, suburban hotels, airport hotels, resorts, floating)

Size of property (Small, medium, large, mega, chain)

Level of service (Economy, mid market, luxury)

Length of stay (Transient, residential, semi-residential)

Based on basis of theme are the boutique hotels. These hotels provide exceptional

accommodation, furniture in a themed and stylish manner, and cater to corporate

travellers. The first boutique hotel was opened in 1981 in London. These days’

travellers just look out for comfort and ease and do not want those big brands offering

same type of services worldwide. Boutique hotels were able to fulfil their demands

and provide different and stylish services in a budget. A boutique hotel is simply

nothing but a hostile place which does not feel good, is not a part of a chain and does

not give traditional services.

2.1.2 External environment:

External environment is those external factors which influence the business

directly or indirectly. These factors can be divided in four categories:

P- Political

E- Economic

S- Social

T- Technologic

Political –Security is a biggest concern of the government when people travel

overseas. Whether they are staying in hotels the security of the guests is still an

issue for the government. One incident means a bad name earned overseas and



reduced business for the country. Even a single incident can have such an impact

on hospitality business that people can stop/ noticeably reduce to travel to that

country and a loss of millions of dollars for government in form of taxes from all

types of businesses.

Economic: When the GDP is growing people tend to travel more, giving a boom

to hospitality industry and more income sources for hospitality employees but

when GDP is low people tend to save money and go less on holidays. It means

less people travelling and less income for hotels.

Social- Youngsters will like a happening and partying place whereas old aged will

like a quiet place. Children will like somewhere they can enjoy and entertain

themselves. As the age group changes, so does the preferences. Similarly a family

holiday is something totally different than a holiday, a single person will like.

Technological- Technology has given new dimensions to the hospitality industry. E

commerce is the biggest boomer. These days guests want to relax and nothing more.

They like to order meals and other amenities of their internet instead of walking to the

reception

2.1.3 Internal Environment

Internal environment is those internal factors which influence the business directly or

indirectly. These factors can also be divided in four categories

S- Strengths

W- Weaknesses

O- Opportunities

T- Threats

Strengths-.Location is ‘Affinia’s’ biggest strength. It is situated right in the middle of

the city, near to all amenities, shops and airport. All what it takes holidaying –

shopping, pubs, night clubs, kids entertain areas and major attractions are just on foot

distance.

Weaknesses- The hotel is regarded to be too noisy because of being situated on the

streets of the city area. Because of having main attractions of the city near to the hotel

it is always too noisy there and even the noise travels from one guestroom to another

guest room.



Opportunity –As the Affinia is only located on one side of the city, owners can

probably think of growing their business to other suburbs of the city. It will expand

their business and will give them brand name power as well. Expanded business

means more facilities to offer and finally more income flows to he business.

Threats- Security of the guests is a big issue in the hotel as the hotel is situated right

in the middle of the city. A noticeable number of drunks and druggists are found

roaming in this area at night time which puts guest’s security in a question. Terror

attacks are what the hotel staff needs to deal with.

2.1.4 Competitor analysis for 4 competitors:

The 4 main competitors whom ‘Affinia’ has got business threats with are:

The Diamont Hotel: A 76 room hotel which enjoys stunning views of city

from every angle is situated right in the middle of city on 14 Kings Cross

roads. It is central to all tourist attractions and is a landmark for nightlife in

Sydney, shopping centres, galleries and restaurants. Rooms offer great

natural lighting with superior bedding and linen, I-POD docking station

and on demand movies. Other facilities given by restaurant are security

parking, access to fitness first and conference rooms.

Pensione hotel: The Pensione Hotel located on 631-635 George st. is

located in the centre of the city and offers greatly visited Sydney’s sites on

foot distance. Specially designed for a budget conscious traveller, this

hotel offers a breakfast area, free kitchen, internet, IDD telephone,

elevators and free cable TV.

Medusa boutique hotel: This boutique hotel is a 18 room building

featuring importance for beautiful surroundings. Bold colours and exotic

mixtures of timbers are definitely eye catching. Situated on 267

Darlinghurst road it is very near to the main attractions in city. Room

facilities include internet facility, private room safe, IDD telephone, alarm,

TV, DVD, mini bar and kitchenette facility.

Manor House boutique hotel: It is very close to some of the most visible

sites in city. This 19 room grand mansion is a 5 star boutique hotel. Its



room are fully air conditioned, have fully stocked mini bar, safe, IDD

telephone, answering machine, internet, radio and large screen television.

2.1.5 Market Segmentation:

Segmentation is the term given to the grouping of customers with similar

needs by a number of different variables. Once this has been done,

segments can be targeted by a number of targeting strategies. A hotel market

segmentation means demographics on hotel customers which disclose the

information about the type of customers hotel is getting. In simple words, market

segmentation helps the business to understand that who there customers are, what

is the purpose of the trip (Business or leisure), how long does the customers like to

stay in the hotel (Short stays or long stays of more than a week)and some other

issues.

The market segmentation process is a three step process –

Segmentation

There is hardly one best factor to segment the market on the basis of. The

factors which should be known before starting segmentation of the market

are:

Industry trends

Location and facility

Area characteristics

Competition

Targeting

Targeting is the next step which involves a business choice on what

areas or what type of customers to focus on. The business should

remember to balance its resources and capabilities in this process

against the attractiveness of different segments.

Positioning



Once the segmentation and targeting is done, the business should be

clear on its position in market.

What products and services to sell

Who your customers are

What is their purpose of stay

Length of stay and revenue collected per room

Segmentation of market:

The following factors will be discussed for segmentation of market:

Industry Trends: A deep knowledge of local and national industry trends will

help determine opportunities and threats to affect profitability. Here the

noticeable trends for ‘Affinia’ are that it is situated right in the middle of city.

So, Tourists will more be coming to the place to visit city or local visitors

enjoying night life will be more interested in. Another industry knowledge is

that new hotel opening near to the ‘Affinia’ which is also a boutique hotel and

has bigger room and services to offer.

Location: ‘Affinia’ is located on a commercial location in the middle of the

city and is right place for any visitors to Sydney to attract to.

Local Area: The city area is a great tourist spot with happening nightlife and

lots of cafes, shops and massage parlours around. Transport is easily available

as train stations on a shorter distances and taxis available everywhere.

Competition: There is a fair competition in the market as there are a lot of

hotels near this area.

Knowing your customer: The ‘Affinia’ is getting more of the tourists, night

life people, who love overnight stays or a weekend stays and have a very less

percentage of people booking for conferences, business activities, students etc,

Targeting:

As discussed earlier, ‘Affinia’ is a small 30 room boutique hotel. As being small,

it can only accommodate a few people at once, it also do have recreational

facilities like gym, pool and cocktail bar which guests should like. So, the target

customer of ‘Affinia’ to get better profits and more occupancy should be tourists.

As discussed earlier, tourists love to reside in city area as they will be closer to



main attractions and beat traffic. They like to enjoy night life of city as well, so

prefer city area accommodations. Moreover, any tourist will stay for at least a

weekend or more, generating more revenues to hotel so, tourists should be main

target.

2.2 Marketing objectives and positioning statement

2.2.1 The 4 marketing objectives that aligns with business objectives:

Marketing objectives are the goals or targets that the marketing department sets to

achieve overall corporate objective. Objectives must be definable or quantifiable so

that there is an achievable target which to aim at. The 4 marketing objectives which

align with business objectives are:

Increase sales in tourist market by at least 20%

Advertise the hotel more, so that more people are aware of the hotel existence

Provide excellent front house service

Professionally created world class cuisine

2.2.2 Using information gathered provide a positioning statement as

where the business will like their products and services to be

perceived by customers:

Once ‘Affinia’ has chosen its target market as being the tourists, it needs to decide

what position they need to occupy in this segment. Affinia will have to stand out from

their competitors to attract customers. This can be done by providing special schemes

on their products and services. They can divide their room services into deluxe,

premium and average and provide services and charge rates according to them.

Special prices can be provided for people booking via internet. Weekend prices can be

put a bit higher than the normal weekday prices, which will help hotel to get the

business on weekdays as well. Internmet bookings and telephone bookings specials



will attract tourists as they will get good prices for accommodation. Further, providing

some special events in hotel guest room sometimes will help families to come and

visit in ‘Affinia’ finally increasing sales of products and services and furthermore

increasing sales.

The good pricing policy will give ‘Affinia’ new customers but affinia will have to

focus on their old customers by providing quality service. The market position can

only be achieved if the hotel looks after the demands of customers, provide quality

services and make customers happy by any means. A happy customer will always

come back with potential for more sales and therefore more profits to business.

As the customers are tourists the main purpose of their visit will be relaxing

environment and quality service. Every effort should be made by hotel staff to make

sure customers are comfortable in every way to gain their love and affection so that

thy will like to come back to the hotel bringing more sales in.

2.3 Marketing Strategies (Marketing 4p’s)

2.3.1 Explain the marketing mix to achieve marketing objectives

The marketing is used to describe the tactics used by a business to achieve its

objectives by marketing its products and services effectively to a particular target

group. The term marketing mix was first used by Neil Bordan in 1953. Then a

marketer E. Jerome McCarthy introduced 4 P classifications in 1960.

The 4 P’s of marketing mix are themselves known as marketing mix.

Product

Price

Promotion

Place

A brief explanation of how to use the marketing mix to achieve the marketing

objectives is given below.



Product Description:

A product can be a physical item, a service, or an idea. Marketing is all about

providing these products and services to the customers and satisfy customer needs. It

can be done by simply:

Asking customers what they think of each product/ service( Hotel room

services, world class cuisine and excellent front house service )

Feedback on how satisfied they are With products being offered (Asking them

that satisfied they are already with the services provided and how would they

like the hotel to improve)

Features and benefits of the product(Benefits of having these new products

introduced in the hotel and how they will differentiate the hotel from other

hotels)

Analyse the profitability of each product offered (How beneficial it is for the

hotel to introduce that particular product as to its profitability ratio to the

expenses incurred in that product)

Here in product description ‘Affinia’ needs to conduct a survey with the customers to

find out what they think of there marketing plan about introducing front house

services and world class cuisine. They can also ask in their survey what products and

services their customers will like improvements on. How the front house services and

world class cuisine can help attract more customers? Finally, if it is worth to

introduce those new products? Will they be able to generate enough profits? These

profits can be calculated by deducting the expenses incurred from the profits made

from that particular product.

Price

Listing the prices of the products and services sold and describing pricing strategy is

included in this element. Price is the determinant to generate profit, so, is the

important element of the mix. Price ranges can be listed for all the product and

services sold. These ranges can be divided in premium range, deluxe range and

average range. These ranges will help customers to look at the particular areas of

services they will be interested in, rather than looking at the whole price list. Any



discount rates should be included in the list as these are ones which will help attract

customers. The factors which should be considered before pricing the products are:

If the target customers can pay those prices (Can an average customer pay $

350 for one night stay in an average room, Can they pay hotel restaurant bill of

average $80 per person for world class cuisine)

What is it costing to provide those products/ services to customers (How much

does it take to prepare room for one night stay including all bills of electricity,

internet, telephone etc) (Ho much does it cost to serve world class cuisine on

an average to one person)

How much are the competitors charging for the same products and services

(What are the hotel room chargesfor4 hotels explained above earlier and how

much they are charging for food in hotel restaurant?)

Promotion Plan:

A promotion plan describes the elements used to achieve marketing objectives.

Normally, a promotion mix is made of 5 elements:

Advertising

Sales promotion

Public relations

Direct marketing

Personal selling

Placement (Sales and Distribution)

Place is a part of the selling mix that refers to the distribution of the product and

where the product will be sold. In other words, it is simply selling and distributing the

products and services offered by the hotel to the customers. Here, business needs to

think about how to get the services and products to the level or place the business

wanted them to be on. The placement can be done in two ways:

Direct selling to customers



Selling to agents and then getting customers through agents. It will include

some omissions being given to agents but has good chances of getting more

customers or higher rates through the agents as well.

2.4 Implementation, Monitor and evaluate

2.4.1 Explain how you will implement, monitor and evaluate

marketing activities?

Implementing marketing activities:

Implementing is to applying in a manner that the idea is moved from concept to

reality.Implementation is the process of turning plans into actions, and involves all the

activities that put the marketing plan to work. Successful implementation depends on

how well the business blends its people, organizational structure and company culture

into a cohesive program that supports the marketing plan. Now when Affinia has a

marketing plan in hand, they know about there strengths, weaknesses, opportunities

and threats. They know what external factors are affecting them and what areas of

market they want to focus on. Finally now, they know what there marketing plans are,

it is the right time to find out for them how to start putting those plans in reality.

1. To implement a marketing plan it is important to make sure that you know what

your plans are. It is always better to write them down on a document so that they can

be viewed by marketing department at any time and they will know if they go off the

track.

2. Create a checklist to find out what needs to be done and by when to implement an

activity.

3. Set up an accountability system in Microsoft Excel. Here it needs to be made sure

that all the records of dates, actions taken, cost, personnel used, target completion

date, tasks completed on that particular day and results following the tasks should be

recorded.



But just writing down everything is not enough. To successfully implement marketing

plan, Affinia marketing team should;

Focus: Focus should be on what needs to be done, how to do that and what are

the deadlines. Focus should be on the ways to get more customers in, getting

high quality food, following food standards and maintaining quality customer

service and front house service.

Attention to detail: Marketing team needs to make sure that they do everything

what was planned and leave nothing behind. Here, marketing team needs to

look at the checklist made in step 2 to make sure nothing is left by.

Management, staff and customers can be asked on how well they are going on

there plans and what needs to be improved.

Managing: Marketing manager makes sure that everyone knows what task

they are responsible for and then look out that how well they are working on

that task.

Monitor:

Monitoring can be defined as the systematic collection and analysis of information to

provide management of the development of the plan. Monitoring gives information on

how the provided funds are being used and what is the outcome of using those funds.

This outcome can be looked into through looking at progress towards the expected

outcomes. Monitoring will help marketing team to check what was planned and where

actually they are now. Monitoring is done to:

Support the day to day activities

To look at the progress of the plans

To get management awareness and participation

To report for the resources used

To give data for periodic evaluations

Although most of the monitoring is done in the implementation itself, still it itself has

utmost importance. There are many ways of monitoring and agreeing on the right way

for the establishment should be done early in the marketing plan.

Following are the ways to monitor the marketing plan:



1. Sales analysis: Under this method the total business sales are broken down in small

parts according to market segments. Affinia customers are tourists, night party people,

students, businesses and others but the maximum income is yielded from tourists and

night party people in cocktail bar. Here Affinia needs to focus on the weaknesses of

these two areas and check how the marketing plan can be implemented to get the best

results and maximize sales.

2. Market share analysis: Market share analysis gives a fair view of how much share

of the nearby hotel market ‘Affinia’ has now and how much share would they like to

occupy, taking care of the market constraints and limited resources. Affinia is looking

to increase its tourist’s customers by 30% in a year’s time. Affinia should monitor on

how well the marketing plan is working to get that percentage and where the plan is

lacking behind at. Finally, Affinia should review the plan if it can get to some better

in that way.

3. Marketing profitability analysis:

Here Affinia should compare the costs of marketing with the profits/ sales promotion

for Affinia because of that marketing. The associated marketing costs here are market

research costs, advertising costs and personnel wages. Once all these costs are added

together, and compared with sales promotion/ profits, then Affinia will better come to

know there market share increase because of that marketing plan.

3 Human resource plans

3.1 Organization chart



3.2 Justification for creating new position:

As explained above Affinia is a boutique hotel. A lot of employees need to be put

together for the smooth operations of the hotel. If there is a shortage of employees

everything can go upside down in such a big venue. So, no staff shortage is possible at

any time of the year. Now, as this is Christmas time, more guests are expected in the

hotel at this time of the year. As more guests are expected in the hotel, obviously,

hotel will be busier and more staff is needed to look after the needs of the guests.

More guests in the festive season mean more meals being cooked in the hotel kitchen

and special festive foods being ordered all the times. Finally more cooking means

extra staff member to look after the kitchen staff and supervise them. To look after

this all Affinia need extra casual supervisor to fit in the roster for festive season, so

that he can help look after the kitchen staff.

3.3. Position Description:

Details:

Location: Sydney

Salary: Fed Hotel Award

Work type: Casual positionTenancy: Temporary, <6 months

Hours: 20-40

Number of positions: 1Reporting To: Food and beverage manager

Source: Employment service providersJob ID: 205981781Last modified: 12 May 2010Options: None

Do you crave the warmer climate where the staffs are always smiling and the guests

are relaxed and enjoying themselves?

Are you looking for a change? This great company offers you the opportunity to

develop your skills and progress your career further.

Are you able to supervise and coordinate activities of cooks and workers. Determine

how food should be presented, and create decorative food displays, Ensure proper

portion, arrangement and food garnish to be served. Monitor the quantity of the food

that is being prepared. Assist kitchen cooks and staff with various tasks. Monitor



stock of kitchen supplies and food. Maintain kitchen logs for food and safety

program.

Our client is looking for a fantastic FOOD & BEVERAGE SUPERVISOR to assist in

leading, managing and directing a team in a great location where the service standards

are to a high standard. Must have A la carte restaurant experience, cashiering and bar

work. Applicants are required to have Certificate 3 in Food and Beverage, current

Responsible Service of Alcohol Certificate and Barista training. Candidates must be

reliable and available to work weekends. Interested applicants must submit a current

resume to Work ways Mansfield by 7th May 2010.

(Source: http://www.jobseeker.com.au/Food-and-Beverage-Supervisor-jobs)

3.4 Remuneration package:

As defined by the kitchen supervisor salaries website the average remuneration of a 5

star luxury hotel kitchen supervisor is $68000.

As the average casual supervisor salary is around $68000, the new staff member could

be offered the similar amount. The amount can go slightly up or down by looking into

the experience and responsibilities of the new staff member. These responsibilities

and working power can be judged in the new staff member’s probation period.

Furthermore, to encourage the staff member to work good and whole heartedly a

percentage of the food sales can be offered. i.e. The staff member can be told that 2%

of whatever the sales are in the season will be the reward of the staff member. The

other way is to explain that if his food is liked by the guests and if the hotel food sales

exceed by a certain amount then he will be awarded a certain amount.

3.5 Assessment Criteria:

A specific interview assessment form is used to assess the interviewee. It is

recommended that the selection panel retains the filled form for at least 6 months after

the selection process is completed.

Interview assessment form:



Position Title:_________________________________________________

Applicant’s name:______________ Date of Interview: _______________

Venue:_______________________ Interview Time: _________________

Applicants should be rated on the scale of 1-5 where:

5- Exceeds the requirements

4- More than meets the requirements

3- Meets requirements

2- less than meets requirements

1- Much less than required

A letter of thanks which will be sent to the interviewee after the interview

Dear Sir/Madam

I would like to thank you very much for your willingness to participate in the

interview that..... is conducting with you as part of her formal assessment for the role

of casual kitchen supervisor.

As you may or may not be aware, this interview is a very important part of hotel’s

assessment for this position. Since it is very difficult to monitor some aspects of the

interview without being present myself, it would appreciate if the form enclosed were

completed by you after the completion of the interview.

The form need to be given directly to the hotel. We will provide you with a self-

addressed stamped envelope for your convenience, in the event that you would prefer

to send the form directly to us . If this arrangement is suitable for you I would only

ask that you submit the form within a week of the interview.

Your support in the assessment is greatly appreciated and will provide us with the

necessary information needed.

Thanking you in anticipation

Mr/Mrs....

3.6 Advertising Strategy: (Incorporate a written and media choice)

Positions should be advertised as widely as possible.



Positions can be advertised through following different ways:

internal advertising (encouraging existing employees to apply for positions)

Company Website

Internet

Newspaper

For Affinia following 2 Medias have been selected:

Internal advertising (Internal notice boards)

Internet

All positions should be advertised in the Internet and internal notice boards of the

hotel. It is necessary to advertise on the notice board of the hotel to encourage the

internal employees of the hotel for a chance to go up. Internet has been chosen so that

the advertisement gets widely spread and any eligible candidate from outside the

organization can apply.

The job needs to be advertised at least 3 weeks prior to the closing date. It is done to

give at least 2 full weeks to the people who wish to apply to get their CV prepared. Of

course, first preference is given to the internal employees because no reference checks

are required and the employees are already tested and trusted but, if the external

employee is good enough than the hotel managers can think of those applicants as

well.

3.7 Induction Program:

The induction program does not just make a new hire aware of the organization’s

values and goals but is also the first step towards creating brand loyalty. Senior

management take an active (and often supporting) interest in the assimilation of new

staff into Affinia’s particular culture and atmosphere. The induction program is taken

seriously. It is a comprehensive process that is reinforced by informal staff reviews

that take place after the first three months on the job. Managers and new staff can

then discuss any problems that have occurred in the weeks prior to the review.



In addition to the induction process and review other forms of support are offered to

new entrants during this initial period. These are used to reinforce integration within

the company, to identify any problem areas or issues and to assist all the staff (not just

new entrants) to help them perform their work as competently and efficiently as

possible.

(a)Legislation:

Legislation is the introduction of the rules and regulations required in the hotel. These

rules are related to all of the following as given in Hospitality Legislation:

Alcohol –Liquor Act 1982 NSW: Section 2A: level of alcohol to be served for

both the premises and the bar attendant

Gaming – Gaming Machines Acts and Regulations 2002 Section 2(b)- dangers

of problem gaming

Hours of business – working hours of the business.

Health and safety regulations – Occupational Health and Safety Act 2000

(NSW) – This ensures that the place of work is healthy and safe.

Hygiene – Food Act 1989 – Covers all aspects of food handling and

production

These laws bind both employers and employees and penalties can be imposed for

unlawful actions.

(b)Organisation Culture:

A strong culture is one that is shared by organizational members—that is, a culture in

which most employees in the organization show consensus regarding the values of the

company. It is important to realize that a strong culture may act as an asset or a

liability for the organization, depending on the types of values that are shared.

Following are the dimensions of the organizational culture:



In Affinia, the culture is much people oriented, where, the main focus are the people,

who work for the organization (staff) and the people who the organization work for

(Customers)

. Affinia want these people to be happy in any way and at any cost.

(C) Policies and procedures:

Policies:

Answer all guest queries in the most professional manner with regard to

facilities, services and other features of The Landmark London.

Perform the department’s Minimum Operating Standards as well as the

Standard Operating Procedures.

Adhere to the VIP procedures, and initiate established amenity and special

order procedures, involving the appropriate departments, i.e. Room

Service, Concierge, etc.

To increase the hotel’s revenue by up-selling, in accordance with set targets

and daily availability.


http://www.web-books.com/eLibrary/Books/B0/B58/IMG/fwk-carpenter-fig08_005.jpg


Procedure steps

1.On commencement, provide new staff with appropriate induction documentation.

This will include the New Starter Checklist.

2. Introduce new starter to work area and staff Manager

3. Complete On Line Induction Program. Within two weeks of commencing, the staff

member is required to complete the online induction program under the supervision

and guidance of the manager.

4. Complete New Starter Checklist -The staff member must complete and sign the

New Starter Checklist certifying they have completed the online program as well as

been advised on all aspects listed in the New Starter Checklist.

3.8 Contract of employment or award

An employment contract is a legal contract between the employer and the employee.

The contract is written in writing so that the rights, obligations and conditions of

employment can be defined. It should be made sure that the provisions of Minimum

Conditions of Employment Act 1993 are complied with. The contract can either be a

single statement document or a few documents put together to make a contract.

It is the law that all employees should get a written contract within 2 months of

commencing of employment. This document should include the following:

Name of the employer

Name of the employee

Job commencement date

Job title

Work address

Sick pay details

Period of employment



Notice period

Pension details

Disciplinary and grievance procedures

Following is a list of steps to be used while writing a contract:

1. Check whether a contract applies to employee.

2, Negotiate the employment conditions with the employee. Make sure they are

competent with the award / Agreement provisions.

3. Check if all the negotiations comply with Minimum Conditions of Employment

Act.

4. Make an employment contract draft in plain English

5. Discuss the contract with the new employee. Make sure that the new employee

understands his responsibilities, duties and all the terms and conditions in the contract.

3.9 Staff roster



Financial Plan:

4.1 Research and discuss the types of financing required to

establish and operate a business.

The hotel business provides some challenges and opportunities to people who

want to start a new business. It is because the hotel business may be quite

expensive. Before starting up a loan a business needs needs to know:

What securities they can provide for business loan

The latest available P&L A/c of the business.

Personal income figures, balance sheet and bank a/c details.

Further more a business plan should be completed before looking out for finances.

Here Affinia’s business plan is already ready and includes all the importand topics of:

Company and industry overview

SWOT analysis

PEST analysis

Business environment

Company strategy

Marketing plan of Affinia

Human resource plan

Business vision and mission

The Affinia needs to remember that there are some government grants as well while

starting up a new business. These grants may be from federal, state or tertiory

governments.

Now, Affinia as sighting out for loan from banks to start business should know that



what is the minimum loan amount available, what is there minimum requirement and

what are the loan terms and interest rates available from different banks. Here if we

say that the business needs a minimum of $250,000 to establish that business then,

research starts now by visiting different banks and checking what different options

they are providing to Affinia.

Here Westpac’s Business Equity Access loan was available at 8.16% and

Commonwealth’s better business loan was available on 7.86% variable rate ,

Common wealth Business line of credit residential security loan was available on

8.04% whereas NAB Business options prime loan was available on 7.33% and NAB

Business Mortgage Combination instalment loan was available on 8.40%. All these

options were thoroughly looked into and decisions were taken on-

Westpac’s business Equity Access Loan suites the business the best because-

Commonwealth’s better business loan was available on 7.86% but was on

variable rate and the business knows of market research that interest rates are

going high very soon. So, soon 7.86% will go very higher.

Common wealth Business line of credit residential security loan was available

on 8.04% but the business had no residential property to put against the

business loan.

NAB Business options prime loan was available on 7.33% but too much

establishment fee and an overdraft fee was charged by NAB.

Finally, NAB Business Mortgage Combination instalment loan was available

on 8.40%. This could have been a good option but Westpac is giving a cheaper

rate.

So, Affinia finally decides on Westpac Business equity Access Loan on 8.16%.



Operational Review

5.1 Prepare an operational Review schedule showing when

business controls will be used to monitor and evaluate each

function of the operation.

The achievement of the operational targets should be regularly monitored/

reviewed to ensure that the maximum business performance is achieved in

accordance with the goals and objectives of the business. Here all the systems of

the business will be reviewed and business will be divided in different structures

and finally reviewed, with a vision to more effectively support business

performance. All the business operating problems should be investigated and

thoroughly checked to find out the causes and then the changes should be applied.

These changes to policies and procedures should be applied to incorporate

corrective action taken.

Here, in Affinia there are three types of operations :

Marketing

Human Resources

Financial

Monitoring and evaluating is required in each operation to see how well the business

is going.

Monitoring can be defined as the systematic collection and analysis of information to

provide management of the development of the plan. Monitoring gives information on

how the provided funds are being used and what is the outcome of using those funds.

How the human resource plan was incorporated and how well the plan is working.

What was the financial plan of Affinia and is it being well working? Here outcome

can be looked into through looking at progress towards the expected outcomes.

Monitoring will help management to check what was planned and where actually they



are now. Evaluating is a process of determining significance or worth by careful

judgment. Monitoring and evaluating is done to:

Support the day to day activities

To look at the progress of the plans

To get management awareness and participation

To report for the resources used

To give data for periodic evaluations

Following are the ways to monitor the marketing plan:

1. Sales analysis: Under this method the total business sales are broken down in small

parts according to market segments to find the business strengths and weaknesses

Affinia customers are tourists, night party people, students, businesses and others but

the maximum income is yielded from tourists and night party people in cocktail bar.

Here Affinia needs to focus on the weaknesses of these two areas and check how the

marketing plan can be implemented to get the best results and maximize sales.

2. Market share analysis: Market share analysis gives a fair view of how much share

of the nearby hotel market ‘Affinia’ has now and how much share would they like to

occupy, taking care of the market constraints and limited resources. Affinia is looking

to increase its tourist’s customers by 30% in a year’s time. Affinia should monitor on

how well the marketing plan is working to get that percentage and where the plan is

lacking behind at. Finally, Affinia should review the plan if it can get to some better

in that way.

3. Marketing profitability analysis:

Here Affinia should compare the costs of marketing with the profits/ sales promotion

for Affinia because of that marketing. The associated marketing costs here are market

research costs, advertising costs and personnel wages. Once all these costs are added

together, and compared with sales promotion/ profits, then Affinia will better come to

know there market share increase because of that marketing plan.

Following are the ways to monitor the Human resource Plan:



Human resource plan should always be updated with the current legislation and

resources available in the market. To monitor the human resource plan, the

management should

Always check the Contract of employment

Always explain the contract to the new employees as to they understand all the

terms, conditions and their rights and responsibilities.

Always keep an check on the employees to make sure they are the right thing

Always delegate the right duties to right people.

Make sure all people work for common business objectibes and know what

they are doing.

Following are the ways to monitor the Financial position:

Finances are the funds needed for the smooth operation of business. To make sure that

financing is going in right way, from right institution and sufficient is available

everytime, following should be considered:

1. Make a present financial position statement.

2. Compare the present financial position with the past/ industry position.

3. Check what ideal financial position was needed. What level of funds were needed

by Affinia.

4. Compare the actual position with the ideal.

5. Make a ideal future financial position by looking into all the constraints and

resources.

6. Plan and take action to ensure that ideal position is determined in future.

(Source: http://www.buzzle.com/articles/strategies-to-monitor-and-control-your-

financial-position.html)

Following is the operational review schedule showing controls to be used:

Recommendation Agreed action Responsibility Resources

implicated

Time frame

Recognising the

property issues are

beyond the reach of

HR

Better use

should be

taken of space

available

HR manager Any required Until the

issue gets

resolved



The competitors

getting more business

than Affinia

Advertise

more and

provide more

discounts to

attract people

Marketing team Advertising

and word of

mouth

As early as

possible but

for sure

within 6

months.

The noise in the streets

getting too much

Provide noise

proof walls

Management Finances Within 2

months time.

The inflation factor is

decreasing the visitors

day by day

Provide

cheaper rater

and try to

attract

customers

from overseas

Management +

Marketing team

Advertising +

Finances

As soon as

possible

Personnel not working

properly

Provide

training again

and if still not

working then

provide

counselling

forms

HR manager Internal

resources

As soon as

possible

Contrant of

employment needs to

be reviewed

Look into the

new

legislations

and provide a

new contract

document for

new

employees

HR Manager Laws+ Legal

documents +

services of

solicitor

Utmost

importance

Advertising needs to

be increased

Try new areas

of marketing

and advertise

at new places

Marketing

manager

Finances By the end of

the year.

Financing documents

can’t be kept up to date

Try and keep

records of all

financing

documents

Financial advisor As required Utmost

importance


janit ass. legal

Documents