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Organization Study on Fortune Select Trinity Itc Groups- by gowrav kadam
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
CHAPTER 1
INTRODUCTION
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
INTRODUCTION
Organization study is a part of MBA program which a student has to undergo training during
their course of study. It narrows the gap between theoretical knowledge and practical situations.
Training makes man into experienced one.
The intention of organization study is to have an exposure of real organization function and to
strengthen the theoretical knowledge. I did my training program at FORTUNE SELECT
TRINITY, ITC GROUP HOTEL. During the period of one month I was able to experience the
various function of different departments in the organization.
Objectives of the study
1. To get practical exposure in the corporate world.
2. To have a proper balance between the theory and practical knowledge
3. To study origin, mission vision, and status of the organisation.
4. To study the functional departments exist in the organisation
5. To evaluate the effectiveness of the organisation
6. To study the problem areas in the organisation
7. To provide some valuable suggestion to improve the efficiency in the organisation
Scope of study
1 This report s based on the study conducted at FORTUNE SELECT TRINITY, ITC
GROUP OF HOTELS, Bangalore.
2 It aims at understanding the company’s establishment, organisation structure
departments, production techniques, marketing strategies and the advantages it is having
over the competitors.
3 An attempt is made to analyse the company performance in comparison to the theoretical
aspects.
4 It aims to understand the skills of company in areas like technological advancements,
competition and in management.
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
Limitation of the study
Time limit is a major constraint
As per the company rules any financial information was not disclosed
As per the managers are busy in their daily schedules it is not possible for us to spend
more time in interaction and discussion with them
Methodology adopted for the study
Observing the working of various departments like finance, human resource production
etc..
Discussion with the company executives, managers and employees.
Visiting and surfing websites of the company.
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
COMPANY PROFILE
COMPANY PROFILE
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India
Limited. As the Company's ownership progressively Indianite, the name of the Company was
changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited
in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business
portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising
Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery
Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business and Information Technology - the full stops in the Company's name
were removed effective September 18, 2001. The Company now stands rechristened 'ITC
Limited'.
The Company's beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the
centre of the Company's existence. The Company celebrated its 16th birthday on August 24,
1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru
Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more
ways than one. It was to mark the beginning of a long and eventful journey into India's future.
The Company's headquarter building, 'Virginia House', which came up on that plot of land two
years later, would go on to become one of Kolkata's most venerated landmarks.
Though the first six decades of the Company's existence were primarily devoted to the growth
and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the
beginnings of a corporate transformation that would usher in momentous changes in the life of
the Company.
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business. It is today India's most sophisticated packaging house.
In 1975, the Company launched its Hotels business with the acquisition of a hotel in Chennai
which was rechristened 'ITC-Welcomgroup Hotel Chola' (now renamed My Fortune, Chennai).
The objective of ITC's entry into the hotels business was rooted in the concept of creating value
for the nation. ITC chose the Hotels business for its potential to earn high levels of foreign
exchange, create tourism infrastructure and generate large scale direct and indirect employment.
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100
owned and managed properties spread across India under four brands namely, ITC Hotels -
Luxury Collection, WelcomHotels, Fortune Hotels and WelcomHeritage.
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002
and became a Division of the Company, Bhadrachalam Paperboards Division. In November
2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards
& Specialty Papers Division. ITC's paperboards' technology, productivity, quality and
manufacturing processes are comparable to the best in the world. It has also made an immense
contribution to the development of Sarapaka, an economically backward area in the state of
Andhra Pradesh. It is directly involved in education, environmental protection and community
development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial
Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to
improve customer service with reduced lead time and a wider product range.
Launched in 1975, ITC Hotels, India's premier chain of luxury hotels, has become synonymous
with Indian hospitality. ITC Hotels pioneered the concept of 'Responsible Luxury' in the
hospitality industry, drawing on the strengths of the ITC groups exemplary sustainability
practices. Responsible Luxury personifies an ethos that integrates world-class green practices
with contemporary design elements to deliver the best of luxury in the greenest possible manner.
Fortune Hotels are the brainchildren of ITC ltd which is a large commercial conglomerate.
Fortune Hotels have done a splendid job of establishing its brand as a premium hotel brand.
Their chain of 3-4 star hotels across 18 locations in India are mostly business hotels situated in
metropolitan areas.
Branded Accommodation
ITC Hotels has set standards for excellence in the hotel industry by pioneering the concept of
branded accommodation. The chain has developed three brands of accommodation ITC One',
'Towers' and the 'Executive Club' to differentiate between the needs of various travellers and
provide the highest levels of service.
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
Branded Cuisine
ITC Hotels is one of the first to introduce branded cuisine WelcomCuisine - in India. The
Bukhara and Peshawri restaurants give epicures the rugged, outdoor cuisine of the Northwest
Frontier Province. Dakshin has brought together the highly evolved cuisines of the four southern
states- Andhra Pradesh, Karnataka, Tamil Nadu and Kerala. Dum Pukht is a unique restaurant
dedicated to a 200-year old culinary tradition of slow cooking food, in sealed deghs. The
fragrance of the meal becomes an invitation befitting royalty. Today the connoisseur can savour
these delicacies across the country. The sumptuous fare at Kebabs and Kurries comprises a
mouth-watering array of kebabs and a wide range of dishes from all over India. These dishes can
be categorized as Qualms, Qaliyas or Salans.
Rated high by food connoisseurs all over the world, ITC Hotels takes exceptional pride in
showcasing its internationally renowned cuisine. West View brings a careful selection of western
cuisine s from the remote France chateaux, grill houses on the East and West coasts of America,
rosy kitchens of English manors, leisurely Mediterranean villas and bustling German
marketplaces.
ITC’s corporate strategies are:
Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organizational capability with opportunities in domestic and export markets.
Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
Ensure that each of its businesses is world class and internationally competitive.
Enhance the competitive power of the portfolio through synergies derived by blending
the diverse skills and a capability residing in ITC’s various businesses.
Create distributed leadership within the organization by nurturing talented and focused
top management teams for each of the businesses.
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
Continuously strengthen and refine Corporate Governance processes and systems to
catalyze the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.
Company Facilities
No director, senior management and employee shall misuse Company facilities. In the use of
Company facilities, care shall be exercised to ensure that costs are reasonable and there is no
wastage.
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
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Board of Directors »
Audit
Committee » Compensation
Committee »
Nominations
Committee »
Investor Service
Committee »
Sustainability
Committee »
Corporate Management
Committee »
Divisional/ Strategic Business Unit
(SBU) Management Committees,
each headed by a divisional/ SBU
Chief Executive »
Business includes: FMCG, Hotels,
Paperboards, Specialty Papers &
Packaging, Agri Business and
Information Technology
Corporate Functions, each headed by a HOD
Corporate Functions include: Planning and Treasury,
Accounting, Taxation, Risk Management, Legal,
Secretarial, EHS, Human Resources, Corporate
Communications, Corporate Affairs, Internal Audit
and Research & Development
FORTUNE SELECT TRINITY, ITC GROUP HOTEL
Board of Directors
Chairman
Y C Deveshwar
Chairman :- Y. C. Deveshwar (65) joined ITC in 1968 and is an alumnus of the Indian
Institute of Technology, Delhi and Harvard Business School. He was appointed as a Director
on the Board of the Company in 1984 and became the Chief Executive and Chairman of the
Board on January 1, 1996. Between 1991 and 1994, he led Air India as Chairman and
Managing Director.
Deveshwar is a past President of the Confederation of Indian Industry. He is also a Member of
the Board of Governors of the Indian School of Business and the former Chairman of the
Society and Board of Governors of the Indian Institute of Management Calcutta. He is a
Member of the National Integration Council, Board of Trade as well as the National
Manufacturing Competitiveness Council constituted by the Government of India. He also
serves on the National Executive Committees of some of India’s premier trade and industry
bodies, and is a Member of the UK-India CEOs Forum instituted by the Governments of India
and the United Kingdom.
Executive Directors
A Baijal S Banerjee A V Girija Kumar
S H Khan S B Mathur D K Mehrotra
P B Ramanujam S S H Rehman Anthony Ruys
Basudeb Sen Meera Shankar K Vaidyanath
B Vijayaraghavan
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Hotels Division
N Anand Executive Director and Divisional Chief Executive
Dipak Haksar Member
B Hariharan Member
A Pathak Member
M Bhatnagar Member
S C Sekhar Member
A R Noronha Member
G Anand Invitee
A Sharma Invitee
ITC Hotels
ITC Hotel Luxury Collection
ITC Maurya, New Delhi
ITC Mughal, Agra
ITC Maratha, Mumbai
ITC Grand Central, Mumbai
ITC Sonar, Kolkata
ITC Kakatiya, Hyderabad
ITC Windsor, Bengaluru
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
List of Fortune Hotels
Fortune Global Select Gurgaon
Fortune Select Palms Chennai
Fortune Select Trinity Bangalore
Fortune Select Exotica Navi Mumbai
Fortune Select Manohar Hyderabad
Fortune Select JP Cosmos Bengaluru
Fortune Park Bella Casa Jaipur
Fortune Landmark Ahmedabad
Fortune Landmark Indore
Fortune Park Centre Point Jamshedpur
Fortune Hotel The South Park Trivandrum
Fortune Park Calicut Calicut
Fortune Park Galaxy Vapi
Fortune Murali Park Vijaywada
Fortune Park Klassik Ludhiana
Fortune Pandiyan Hotel Madhurai
Fortune Park Panchwati Kolkata
Fortune Fences Tirupati Tirupati
Fortune Resort Bay Island Port Blair
Fortune Resort Sullivan Court Ooty
Fortune Chariot Resort Mahabalipuram
Fortune Resort Central Darjeeling
Fortune Inn Riviera Jammu
Fortune Inn Jukaso Pune
Fortune Inn Sree Kanya Vishakapatnam
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
VISION & MISSION
Vision - Sustain ITC's position as one of India's most valuable corporations through world class
performance, creating growing value for the Indian economy and the Company’s stakeholders
Mission - To enhance the wealth generating capability of the enterprise in a globalizing
environment, delivering superior and sustainable stakeholder value
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
AWARD AND RECOGNITIONS
Bukhara awarded with " Restaurant of the Year" at NDTV Lifestyle Awards, March 2013
Dum Pukht awarded with 'Best in Country' recognition at the S.Pellegrino Asia's 50 Best
Restaurants, Singapore, February 25, 2013
Bukhara recognised amongst S. Pellegrino Asia's 50 Best Restaurants at No. 26, from
close to 900 restaurants in Asia, February 25, 2013
ITC Grand Chola receives green rating for integrated habitat assessment by The Energy
Resource Institute (TERI), Ministry of New & Renewable Energy (MNRE), Government
Of India – February 2013
ITC Grand Central awarded with The Golden Peacock - Corporate Excellence
Recognition for national training by Institute of Directors – January 2013
ITC Grand Chola recognized by HIFI as development of the year in the luxury and
upscale category – January 2013
Kaya Kalp recognized as Best Hotel Spa by CondeNast Traveler, India – December 2012
Bukhara and Dakshin listed amongst Asia’s Top 20 Restaurants – Miele Guide Asia,
January 2013
ITC Grand Chola receives green rating for integrated habitat assessment by The Energy
Resource Institute (TERI), Ministry of New & Renewable Energy (MNRE), Government
Of India – February 2013
ITC Grand Central awarded with The Golden Peacock - Corporate Excellence
Recognition for national training by Institute of Directors – January 2013
ITC Grand Chola recognized by HIFI as development of the year in the luxury and
upscale category – January 2013
Bukhara and Dakshin listed amongst Asia’s Top 20 Restaurants – Miele Guide Asia,
January 2013
Kaya Kalp recognized as Best Hotel Spa by CondeNast Traveler, India – December 2012
ITC Hotels - The Standout Winner for Sustainability , Global Vision Awards -October
2012
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
ITC Sonar awarded with Responsible Tourism Award for being best in resource
efficiency by Wild Asia Tourism, Singapore - October 2012
COMPETITOR COMPARISION OF BALANCE SHEET
Balance Sheet ------------------- in Rs. Cr. -------------------
ITC
HotelIndian Hotels EIH TAJ HOTELS ITDC
Mar
2012
Mar
2012
Mar
2012
Mar
2012
Mar
2012
Sources Of Funds
Total Share Capital 1100.21 72.34 78.59 76.97 55.49
Equity Share Capital 200.20 72.34 78.59 76.97 55.49
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 940.22 2,975.29 985.39 118.81 87.11
Revaluation Reserves 0.00 0.00 241.25 0.00 0.75
Networth 2240.43 3,047.63 1,305.23 195.78 143.35
Secured Loans 0.08 1,598.02 800.87 24.69 21.51
Unsecured Loans 0.00 168.45 12.00 0.00 0.00
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
Total Debt 0.08 1,766.47 812.87 24.69 21.51
Total Liabilities 2240.51 4,814.10 2,118.10 220.47 164.86
Source-ITC hotel website.
Mar
2012
Mar
2012
Mar
2012
Mar
2012
Mar
2012
Application Of Funds
Gross Block 2062.40 2,362.23 1,726.87 422.15 290.24
Less: Accum. Depreciation 711.17 776.83 390.63 63.97 88.70
Net Block 1351.23 1,585.40 1,336.24 358.18 201.54
Capital Work in Progress 422.14 215.10 425.16 51.22 91.82
Investments 684.20 2,026.88 358.81 0.64 0.72
Inventories 11.87 38.91 33.26 5.24 9.40
Sundry Debtors 121.05 101.70 114.37 484.17 11.98
Cash and Bank Balance 97.96 21.81 22.48 31.97 6.58
Total Current Assets 231.88 162.42 170.11 521.38 27.96
Loans and Advances 56.80 1,486.23 231.02 73.53 44.81
Fixed Deposits 7.00 1.63 3.94 0.00 0.14
Total CA, Loans & Advances 871.68 1,650.28 405.07 594.91 72.91
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 591.30 510.89 315.23 753.95 162.68
Provisions 112.45 153.40 93.68 30.53 39.45
Total CL & Provisions 700.75 664.29 408.91 784.48 202.13
Net Current Assets 16.93 985.99 -3.84 -189.57 -129.22
Miscellaneous Expenses 0.00 0.73 1.73 0.00 0.00
Total Assets 2240.50 4,814.10 2,118.10 220.47 164.86
Contingent Liabilities 240.04 1,034.20 381.05 0.00 17.73
Book Value (Rs) 740.27 42.13 27.08 25.44 25.70
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Industry Profile
INDUSTRY PROFILE
The hotel industry that exists today can be traced back to 3000 B.C. where the earliest inns were
homes with rooms provided for travelers. Conditions improved in 1700s England when the
renaissance sparked the desire to travel. The United States saw its hotel industry created a
century later. By this time they had revolutionized many firsts in the industry including private
rooms with locks and doors, free soap, a trained staff, and a pitcher of water in each room.
Indoor plumbing and the creation of the lobby followed shortly thereafter. The business of
providing strangers with hospitable means has come a long way. What once was a service to
fellow man is now the foundation numerous economies throughout the world.
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The modern era of the hotel industry saw its beginnings in 1794 New York where the first ever
hotel was built. Profit potential was recognized with the inception of the industrial revolution.
Stock companies invested in hotels seeking profit from property value appreciation and room
occupancy revenue. Surrounding communities were promised increase in sales by means of
higher volume of people passing through., the industry creates a multitude of opportunities that
now saturate the industry in the form of spin-offs of these top four hotel companies creating the
most common chains we know of today. History has proven that the success of this industry has
largely to do with two factors, location and innovative integration, the combination of these two
has created a margin between the larger chains and those who operate on a smaller scale. Soap
and locks on doors were the innovation for their day. Strategic placement and product
differentiation once again guide the success of this industry.
The word hotel is derived from the French hotel (coming from hate meaning host), which
referred to a French version of a townhouse or any other building seeing frequent visitors, rather
than a place offering accommodation. A hotel is an establishment that provides paid lodging on a
short-term basis.
The provision of basic accommodation, in times past, consisting only of a room with a bed, a
cupboard, a small table and a washstand has largely been replaced by rooms with modern
facilities, including en-suite bathrooms and air conditioning or climate control. Additional
common features found in hotel rooms are a telephone, an alarm clock, a television, and Internet
connectivity; snack foods and drinks may be supplied in a mini-bar, and facilities for making hot
drinks. Larger hotels may provide a number of additional guest facilities such as a restaurant, a
swimming pool or childcare, and have conference and social function services. Some hotels offer
meals as part of a room and board arrangement.
Hotel Industry in India has witnessed tremendous boom in recent years. Hotel Industry is
inextricably linked to the tourism industry and the Growth in the Indian tourism industry has
fuelled the growth of Indian Hotel industry. The thriving economy and increased business
Opportunities in India have acted as a boon for Indian hotel industry. The Arrival of low cost
airlines and the associated price wars have given domestic tourists a host of options.
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The 'Incredible India' destination campaign and the recently launched 'Atithi Devo Bhavah'
(ADB) campaign have also helped in the growth of domestic and international tourism and
consequently the hotel industry. According to a report, Hotel Industry in India currently has
supply of 110,000 rooms and there is a shortage of 150,000 rooms fuelling hotel room rates
across India. According to estimates demand is going to exceed supply by at least 100% over the
next 2 years. The future scenario of Indian hotel industry looks extremely rosy. It is expected that
the budget and mid-market hotel segment will witness huge growth and expansion while the
luxury segment will continue to perform extremely well over the next few years.
The Indian hospitality industry is projected to grow at a rate of 8.8% between 2007-16, placing
India as the second-fastest growing tourism market in the world. Initiatives like massive
investment in hotel infrastructure and open sky policies made by the government are all aimed at
propelling growth in the hospitality sector.
The hotel and restaurant industry of India was Rs. 658.89 billion during 2007-08. Travel
& Tourism Industry of India was valued at US$35.73 billion in 2007, contributing 3.56% to
India’s GDP. The number of foreign tourists arriving to India reached 5.08 million compared
with 4.45 million in the year 2006, showing growth of 14.16%. India’s share in international
tourist arrivals at global level gradually improved from 0.46% in 2004 to 0.49% in 2005 and
further to 0.52% in 2006 and 0.56% in 2007.
Hotels in India are broadly classified into 7 categories (five star deluxe, five-star, four star, three
star, two star, and one-star and heritage hotels) by the Ministry of Tourism, Government of India,
based on the general features and facilities offered. The ratings are reviewed every five years. As
of December 2012 (latest available figure) there are following number and category of hotels.
Star Category No of Hotels No of Rooms
5-Star Deluxe 82 18764
5-Star 92 11332
4-Star 132 9401
3-Star 704 31039
2-Star 587 19031
1-Star 212 695
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Heritage 83 2216
To be Classified 50 5127
Total 1934 103973
Source: Ministry of Tourism, Government of India
The table excludes hotels in the unorganized sector that have a significant presence across the
country and cater primarily to economy tourists. Premium and Luxury Segment This segment
comprises the high-end 5-star deluxe and 5-star hotels, which mainly cater to the business and up
market foreign leisure travelers and offer a high quality and range of services. The segment
accounted for 29per cent of the total hotel rooms in the country in December 2005.
GOVERNMENT POLICIES
Tourism being a concurrent subject under the Indian constitution, both the central and state
governments regulates the hotel industry. The regulations include statutory and regulatory
sanctions (or approvals and licenses) from the Central and State departments or agencies. This
includes license to operate a restaurant, a hotel license (issued by municipal authorities), license
from police (issued by local police) and a bar license (issued by excise department).
Tourism Policy
In order to develop tourism in India in a systematic manner, position it as a major engine of
economic growth and to harness its direct and multiplier effects for employment and poverty
eradication in an environmentally sustainable manner, the National Tourism Policy was
formulated in the year 2002. Broadly, the “Policy” attempts to:
• Position tourism as a major engine of economic growth
• Harness the direct and multiplier effects of tourism for employment generation, economic
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
Development and providing impetus to rural tourism
• Focus on domestic tourism as a major driver of tourism growth
• Position India as a global brand to take advantage of the burgeoning global travel trade
And the vast untapped potential of India as a destination
• Acknowledges the critical role of private sector with government working as a pro-active
Facilitator and catalyst
• Create and develop integrated tourism circuits based on India’s unique civilization, heritage,
And culture in partnership with States, private sector and other agencies
• Ensure that the tourist to India gets physically invigorated, mentally rejuvenated, culturally
Enriched, spiritually elevated and “feel India from within”.
The Government’s major policy initiatives include
• Liberalization in aviation sector
• Pricing policy for aviation turbine fuel which influences internal air fares
• Rationalization in tax rates in the hospitality sector
• Tourist friendly visa regime
• Immigration services
• Procedural changes in making available land for construction of hotels
• Allowing setting up of Guest Houses
The Indian Ministry of Tourism has identified 31 villages across the country to be developed as
Tourist Hubs. The states in which these villages have been identified include Himachal Pradesh,
Gujarat, Maharashtra, Bihar, Karnataka, Madhya Pradesh, Andhra Pradesh, Kerala, Tamil Nadu,
Orissa, Assam, Sikkim, Rajasthan and West Bengal.
Group Company including managed hotels
The measure aims at supporting the Group service companies not earning foreign exchange in
getting access to the international quality products at competitive price and providing services of
international standards. This new initiative allows transfer of both the script and the imported
input to the Group Service Company. The earlier provision allowed transfer of imported material
only.
FDI in Hotel and Tourism Sector
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
100 per cent FDI is permissible in the sector on the automatic route. The term hotels include
restaurants, beach resorts, and other tourist complexes providing accommodation and/or catering
and food facilities to tourists. Tourism related industry include travel agencies, tour operating
agencies and tourist transport operating agencies, units providing facilities for cultural,
Adventure and wild life experience to tourists, surface, air and water transport facilities to
tourists, leisure, entertainment, amusement, sports, and health units for tourists and
Convention/Seminar units and organizations.
For foreign technology agreements, automatic approval is granted if:
• Up to 3 per cent of the capital cost of the project is proposed to be paid for technical and
Consultancy services including fees for architects, design, supervision, etc.
• Up to 3 per cent of net turnover is payable for franchising and marketing/publicity Support
fee, and up to 10 per cent of gross operating profit is payable for management fee, including
incentive fee.
Other Government Initiatives
Government has undertaken following initiatives to attract both inbound and outbound Tourists:
• Incredible India - Under this program the Government promotes India through various
Integrated marketing programs.
• Atethie devo bhava (guests are equal to god) - Under this program the Government create
Awareness among Indian people who come in contact with the tourist.
• Various Infrastructure building initiatives
• Encourage religious tourism for instance promotes various places in India as Buddhist abodes.
• Other projects are the Rs. 5,400 million National Highways Development Project, the 5,846
km Golden Quadrilateral and the 7,300 km north-south and east-west corridors.
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CHAPTER 2
ORGANISATIONAL STRUCTURE
ORGANISATIONAL DESIGN
Organizing, the process of structuring human and physical resources in order to
accomplish organizational objectives, involves dividing tasks into jobs, specifying the
appropriate department for each job, deter-mining the optimum number of jobs in each
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
department, and dele-gating authority within and among departments. One of the most critical
challenges facing lodging managers today is the development of a responsive organizational
structure that is committed to quality.
1. The framework of jobs and departments that make up any organization must be directed
toward achieving the organization’s objectives. In other words, the structure of a lodging
business must be consistent with its strategy.
2. Managers give structure to a hotel and lodging through job specialization, organization, and
establishment of patterns of authority and span of control.
ORGANISATIONAL STRUCTURE OF FORTUNE SELECT TRINITY
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General Manager
FORTUNE SELECT TRINITY, ITC GROUP HOTEL
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Executive assistant manager
Human resourse
Accounting Marketing & sales Engineering Purchasing
Rooms division Reservations Convention services
Food & beverages
House keeping Front office
Security Uniformed service
Telephone
Restaurants Bars Catering Room service
Food production
FORTUNE SELECT TRINITY, ITC GROUP HOTEL
CHAPTER 3
FUNCTIONAL DEPARTMENTS
Segmentation of different departments at FORTUNE SELECT TRINITY
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FORTUNE SELECT TRINITY, ITC GROUP HOTEL
There are more than 10 different departments are functioning in the traditional and executive
levels at the management of the hotel. These departments have diverse portfolios and
responsibilities headed by a person in charge of the entire operations undertaken within the
department. He may be a manger/supervisor of the respective department. The reason why hotels
are usually organized into functional blocks, with departments grouped according to the
particular work/activity that particular
Department is actively engrossed. In most scenarios a hotel industry is divided up into 5 different
departments such as rooms, Food and Beverages (usually this department is called as by its short
form as F&B), accounting, sales and Human Resource/HR. Each of these departments has their
own heads of the operations and they should have to report directly to the General Manager of
the hotel regarding the performance of their respective departments. These departments are sub-
divided into various other smaller organizational units. These sub-divisions represent refinement
of the work performed and the knowledge and the skills of the people in each subunit. As
organizations grow large in respect of its size and operations it carries out most hotels tend to
segment its operations to various departments with food preparation and food servicing as
separate entities. Since preparing food and serving it to the guest are usually of two different arts;
both the processes are done through different and separate works. Thus forming departments
along functional line is the most common method in a hotel organization. The department
engaged in the preparation of food is called as Production Department while the division
involved in the art of serving the prepared food to the guests in an eye-catchy and sumptuous
manner is known as the Servicing Department.
Front Office Department
The front office is the command post for processing reservations, registering guests, settling
guest accounts (cashiering), and checking out guests. Front desk agents also handle the
distribution of guestroom keys and mail, messages or other information for guests. The most
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visible part of the front office area is of course the front desk. The front desk can be a counter or,
in some luxury hotels, an actual desk where a guest can sit down and register.
Sell guestrooms; register guests and design guestrooms
Coordinate guest services
Provide information
Maintain accurate room statistics, and room key inventories
Maintain guest account statements and complete proper financial settlements
FRONT OFFICE MANAGER
ASST FRONT OFFICE MANAGER
LOBBY MANAGER/DUTY MANAGER
NIGHT AUDITORS
FRONT OFFICE ASSISTANATS/CASHIER
RESERVATIONS ASSISTANTS
TELEPHONE SUPERVISORS
BELL CAPTION/ BOYS DOOR MAN/LINK MAN
Food Production Department
Food production deals with the preparations of food items. It basically engaged in preparing
those dish, which are ordered by the
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Guest and afterwards is catered by the F&B department. Cuisine like Indian, Continental, Thai,
Italian, Konkani (Coastal Sea Food), South Indian, Chinese, Mexican, etc. Different Chefs are
appointed for the specialty cuisine. Marketing a celebrity chef as a primary component of a hotel
may yield a competitive advantage among that specific hotel’s competitive set.
Food Servicing Department
Food service deals with the process of the delivery of the prepared food items onto the end
customers who ordered it. Service department should also lay special emphasis on the
importance of getting the orders delivered with an eye candy look and appearance.
Food & Beverages Department
F & B deals mainly with food and beverage service allied activities. Different divisions are there
in F & B like Restaurants, Specialty Restaurants, Coffee Shop (24 hrs.), Bar, Banquets, Room
service etc. Apart from that they have Utility services (Cleaning). A food and beverage
department in a hotel is usually guided by an F&B Director followed by an F& B manager. A
Food and Beverage Manager in a hotel should always be ready to undertake a variety tasks each
and every day. Some of the main important functions endowed on this specific department in a
hotel include,
Provide the highest quality in food, beverage and service in all the food and beverage outlets
inside the hotel’s
Provide all guests with the highest quality of food and beverage experience by working as a team
with all the food and beverage outlets ensuring prompt,
courteous, and professional services resulting in increasing employee morale and decreasing
employee turnover rates
Maintain existing programs and develop new programs ensuring the highest quality of food,
beverage and service offered. Arrange daily talks with staff and managers, reviewing plate-ups in
different outlets
Maintain a high quality hotel image through effective housekeeping and sanitation in the F&B
operations
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Meet all the needs and the expectations of the guest by ensuring proper service standards,
providing quality food and beverages, and managing all aspects of operation, resulting in an
increasing Guest Satisfaction Index (GSI) and decreasing guest complaints)
Maintain top-notch security to all the F&B properties and inventories
Maintain knowledge of national and international competition and industry trends. Includes
changing menus based on seasonality, product availability, and input from staff)
Seek profitability in all the F&B outlets by decreasing the operational costs and by increasing the
sales volumes of different menus and beverage items.
EXECUTIVE HOUSE KEEPER LAUNDRY MANAGER ASST.
EXECUTIVE
Housekeeper Cleaner Supervisor Gardener Supervisor
Line Supervisor Laundry Supervisor Washer Presser Line Attender
The Front Office may be regarded as the show window of the hotel and hence must be well
designed in the first place and maintained in a well organized and orderly manner. Regardless of
how a hotel is organized into, the front office is always an essential focal point. Front Office is
the name given to all the functional units of a hotel which are situated in the front portion of the
hotel, that is, the lobby – is the place where the guests are received, provided information on the
products and services offered in the hotel, the luggage of the guests are handled, the accounts of
the guest are settled at their departure, and the guest’s problems, complaints and suggestions are
looked after. The front desk is the link between the guest and the hotel and represents the hotel to
the guest. And is a liaison between the hotel management and the coordination of all the guest
services. It serves as a main channel of both way communications i.e. from hotel to the guest and
guest to the hotel. Hotel terminology includes terms such as front-of the-house and back-of-the-
house. This front-of-the house term includes those portions of the hotel with which the guests
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come in direct contact with during the period of their stay in the hotel, such as building exterior,
lobby, front desk, guest rooms, function rooms etc. The person who is regarded as the head of
the operation of the front-office desk is the Front-Office Manger. The nature of the front office
job is such that he is almost always crowded with various jobs. He should be able to match job
needs to time available for effective and efficient performance. Another responsibility of the
Front office manager is making daily plan of action by outlining work for the next day at the end
of each day. It includes listing all activities for the next day under ABC category as per the
urgency and importance of the job. It is also important to make flexible plans to fit
in emergencies. The assistant front-office manager’s main duty is aiding the front office manager
in supervising and coordinating the day-to-day operations of the front-office staff and resolves
internal problems. She/he co-ordinates staffing of mail and information and reservation clerks
with their supervisors. The AM-front office should also be adept in dealing with
problems arising from guest’s complaints and reservation and room assignment activities. He
should also be responsible for any miscellaneous duties assigned by the front office manager.
Another important position at the front desk of the hotel is done by the reception assistant. The
friendly welcome given by the receptionist to a guest changes an impersonal hotel building in to
a friendly and homely place and his unfriendly, hostile and indifferent attitude may convert the
guests experience in to an unpleasant and uncomfortable stay. If the front office is the hub of the
hotel then the receptionist can be aptly called as the person ‘who keeps the hotel world moving’.
The reception assistant should be well informed of daily room availability status, and also he
should have detailed information regarding arrivals, their room requirements and expected
departures of the guests. The position of the reservation assistant is also important at the front-
office department of the hotel since the hotel’s good image can be maintained among the
Guests only if all the needs of the guests are taken care of, especially the guest’s requirements in
terms of his lodging. The main function of the reservation assistant is to handle all the
reservations courteously and promptly over telephone, by e-mail, fax etc. He should make proper
updating in the reservation register and records in order to have updated inventory of room
availability. The reservation assistant may also carry out amendments and cancellations
intelligently and accurately. To keep the availability status chart updated. Checkout reservation
stationary and keep a satisfactory par stock of the same. Type out advance reservation slips and
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maintains reservation racks and correspondence files and in case of computers updates
information in computers.
The hierarchical structure of the division of F&B department in a hotel
EXECUTIVE HOUSE KEEPER
LINEN/UNION FLOOR DESK CONTROL PUBLIC AREA HORTICULTURIS
SUPERVISOR SUPERVISOR SUPERVISOR SUPERVISOR
TRAILOR NIGHT SUPERVISOR HEAD GARDENER
HOUSE KEEPING DEPARTMENT
Inspects rooms before they are available for sale
Cleans occupied and vacant rooms
Communicates the status of guestrooms to the Front Office Department
Cleans and presses the property’s linens, towels, and guest clothing (if equipped to do so, free
of charge or for a pre-determined fee)
Maintains recycled and non-recycled inventory items
The House Keeping Department is another important department in the hospitality
industry
Housekeeping Department is responsible for cleaning the hotel’s guest rooms and public areas.
Housekeeping department usually has the largest staff, consisting of an assistant housekeeper,
room attendants, room inspectors, a house person crew, linen room attendants and personnel in
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charge of employee uniforms. They may also have their own laundry and valet service. Hotels
with laundry and valet equipment may use it only for the hotel uniforms.
RESTAURANT MANAGER BEVERAGE MANAGER ASSISTANT F & B-
MANAGER
F & B MANAGER
And linens and send guest clothing to an outside service where it can be handled with specialized
equipment. Basically the main responsibility of the housekeeping department is to ensure that the
guest rooms and the entire public area within the hotel are neat and clean all the time. But the
cleaning duty of the kitchen area is done by Kitchen steward. Cleaning of the lawn area of the
hotel is also set apart from the housekeeping department while the same is carried out by the
gardening division of the hotel. The person who is made in charge of the entire operations being
performed in this specific department is Housekeeping Executive. The Executive Housekeeper is
responsible for the total cleanliness and the, maintenance and the aesthetic upkeep of the hotel.
This end is achieved with the resources made available to his/her of manpower, materials,
machines, money, space and time. The position of the Executive Housekeeper is considered to be
one of the most important positions in the hotels since it carries tremendous responsibility for the
proper cleanliness and the aesthetic fabric of facilities in order that they are sanitary, desirable
and in saleable condition.
F & B MANAGER
Asst. F & B MANAGER
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Restaurant manager Room manager Banquet manager Bar manager
Caption Order caption Sr. caption
Steward Caption Caption
The good Housekeeper, because of the need taco-operate with many other department heads,
must possess a high degree of tactics well as good organizing ability. The Assistant Housekeeper
is the deputy to the Executive Housekeeper of a hotel. His/her manages the resources given by
the executive housekeeper to achieve the common objectives of cleanliness, maintenance and
attractiveness in a given period of time. Assistant Housekeeper’s accountability normally ends
with the completion of the shift. The position of a Housekeeping supervisor is normally occupied
by a competent, personable individual who knows his/her employees well, and is, above all, able
to meet the public. This requirement is so important as far as a hotel is concerned since the
supervisors are actually representatives of the Executive House keeper in the areas assigned to
them. Housekeeping draws special mention since a hotel survives on the sale of rooms, food and
beverage and other minor operating services such as laundry, spa, clubs etc. Of these, the sale of
rooms constitutes a minimum of 50 %. In other words the largest margin of profit comes from
room sales because rooms, once made, can be sold over and over again. A good hotel operation
ensures optimum room sales to being in maximum profit. The room sale is dependent on, apart
from several other things, the quality of the room décor, room facilities, and cleanliness of the
room and how safe it is.
Human Resource Department:
Human resources is exactly meant as ‘resources for human – within the workplace’. Its main
objective is to meet the organizational needs of the company it represents and the needs of the
people hired by that company for running its operations. Every organization needs its stack of
manpower to carry out its day-to-day operations. No establishment cannot operate without being
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involved in some kind of transactions with the people in general. Hence HR department is drawn
with special emphasis as this department is responsible for all activities concerning to the
employees of an organisation.In short HR department is the hub of the organization serving as
liaison between the organization and its employees. On the basis of the size of the company their
department is usually called as the Personnel department in medium–sized establishments, with a
limited number of managerial staff and is guided by a Personnel Manager. For larger and more
complex organizations with hundreds of departments and divisions, the task of managing the
workforce as a whole is much more demanding and intricate. Some of the most important
responsibilities to be carried out by the HR department include.
Employee recruitment & Selection
Employee compensation benefits
Employee relations
Policy formulation
As accompany and the requirements of a position evolve, a company needs to take certain
measures to ensure that the highly skilled workforce is in place. It is actually the responsibility of
the HR department to oversee the skills development of the company’s workforce. After
formulating the requirements criteria to fill up a vacant post in the organization, the HR
department of the company will call for application for the specific post from the eligible
candidates by way of advertising on news papers, televisions, mobile phones etc. Employee
compensation packages also come under the prerogative of the HR department. This covers
salaries, bonuses, vacation pay, sick leave pay, Workers' Compensation, and insurance policies
such as medical, dental, life.
The Human Resources Department is
CLUB MANAGER
IT MANAGER SUPERVISOR
GUEST SERVICE ASSOCIATE
DUTY MANAGER SUPERVISOR DRIVERS
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Responsible for developing and administering a benefits compensation system that serves as an
incentive to ensure the recruitment and keep hold of top talent that will stay on with
the company. With the increased rise in unethical practices and misbehaviors taking place in
today’s workplace such as age, gender, race, and religion discrimination and sexual harassment,
there needs to be mandatory compliance with governing rules and regulations to ensure fair
treatment of employees. In short, employees need to know they have a place to turn when a
supervisor abuses his or her authority in anyway. Regardless of the organization's size, company
policies and procedures must be established to ensure order in the workplace. These policies and
procedures are put in place to provide each employee with an understanding of what is expected
of them. Similarly, these policies and procedural guidelines will assist hiring managers in
evaluating their employee's performance. These policies can be established company-wide or
used to define each department's function. It is Human Resource's responsibility to collaborate
with department managers on the formulation of these policies and regulations to ensure a
cohesive organization.
HR Head Assistant HR Manager HR Executive HR Co-coordinator
Training Department
Training is the process that involves an expert working with learners to transfer to them certain
areas of knowledge or skills to improve in their current jobs. Training Department is considered
to be a stand-by unit of their department. The primary function of this department is to empower
and equip new recruits to the hotel to such a level where they can deliver their maximum to the
company’s growth. All the activities undertaken in this department is guided and supervised by
the training Manager
He is responsible for conducting training programmers’ to the new recruits inducted into the
existing workforce of the company. The spectrum of the training manager’s responsibility also
includes making each new recruit aware of what his duty is? How he is to do his duty? Etc.
In short, it is the function of the training manager to make the new workforce of the company
learned of what is exactly expected of them, and on what degree. Training is usually given to the
employees on the following grounds as and when it demands.
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When a performance appraisal indicates performance improvement is needed
To "benchmark" the status of improvement so far in a performance improvement effort
As part of an overall professional development program
As part of succession planning to help an employee be eligible for a planned
change in role in the organization
To "pilot", or test, the operation of a new performance management system
To train about a specific topic several benefits can be reaped out of rendering proper training programmes.
Increased job satisfaction and morale among employees
Increased employee motivation
Increased efficiencies in processes, resulting in financial gain
Increased capacity to adopt new technologies and methods
Enhanced company image, e.g., conducting ethics training
Employee training programs provide focused training to a number of employees either on a one-
time or recurring basis. Programs can be developed in-house or employees can attend more
generic programs, e.g., at a local university, college or training center. Programs are conducted
for a variety of topics, e.g., training about communications, computer skills, customer service,
quality initiatives, safety, diversity training, etc.
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FINANCE DEPARTMENT
A hotel’s accounting department is keeping track of the many business transactions that occur in
the hotel. The accounting department does more than simply keep the books. Financial
management is perhaps a more appropriate description of what the accounting department does.
Whereas the control department is concerned with cost control guidelines by way of reducing in
investment, reduction in operating cost, control of food service cost, control of beverage cost,
labor cost control etc. In most hotels the person in charge of the finance department of the hotel
is called the Chief Financial Officer. Usually he is addresses by the short-form of his designation
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as CFO. In most major hotels, the CFO or Finance Controller/Manager ranks among the top two
or three decision makers in the hotel hierarchy. No organization can survive without a very
strong financial vigor. The finance controller is responsible for presenting a Financial and
budgetary programs which can strengthen management’s control of hotel’s operating expenses
and help determine the profitability of the property. Specifically forecasting gives owners a
projected level of sales, while budget alert owners and operators alike to significant expenditures
that are on the horizon or predictable shortfalls in revenues. Used together, forecast and budgets
can provide a bench-Mark for sales intensive programs, executive-compensation bonuses,
incentive based management fees and capital expenditure. The administration and department of
accounting and finance coordinate management and staff functions. This includes extensive
contact with our shareholders, other partners. The department of accounting and finance is
responsible for accounting, payroll, budgets and cash flow management. The department of
Information Technology (IT) is also managed by the Finance department in most hotels.
The following shown chart is the common hierarchy of the positions in the Finance Department
in 5 star hotels. But it cannot be guaranteed that the same structure is followed by all the 5 star
hotels. It may depend upon the size and the scale of operations of the respective hotels.
The Accounting Division monitors the financial activities of the property. Some of the activities
that are undertaken in the Accounting Division are listed below:
a) Pays outstanding invoices
b) Distributes unpaid statements
c) Collects amounts owed
d) Processes payroll
e) Accumulates operating data
f) Compiles financial reports
g) Makes bank deposits
h) Secures cash loans
i) Performs other control and processing functions
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SALES AND MARKETING
Marketing is the study and management of the exchange process. It involves the things that the
property will do to select a target market and stimulate or alter that market demand for the
property services. It consists with research, action, strategies advertising, publicity, & sales and
promotion. Sales consist of direct efforts to sell the property by personal sales, calls,
telecommunication & mailings.
A typical hotel should usually have Sales & Marketing division. However, if the staff size,
volume business, hotel size, expected group arrivals is low enough, the hotel might have
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marketing staff placed under the reservation department (i.e. No need for a Sales & Marketing
Division).
A typical Sales & Marketing Division is composed of four different departments:
a) Sales
b) Convention Services
c) Advertising
d) Public Relations
PURCHASING MANAGER GENERAL LEDGER ASST. FINANCIAL
CONTROLLER FINANCE
&
PAYABLE INCOME AUDITOR COST CONTROL CREDIT SUPERVISOR
A/R CLERK F&B CONTROLLER NIGHT AUDITOR CASHIER
SUPERVISOR
Marketing and sales division can be varied with the size, type, and budget of the hotel to hotel.
Small hotel only have one person who is handling all the sales activities related to the hotel
business. But large hotel have organized sales and marketing division with no of key personnel.
A sales department is particularly very essential in large hotels and those with convention and
banquet facilities. The General manger participates actively in this area for and basic reason.
First sales and their development is a long-range activity of the hotel and the second sales policy
of the hotel interwoven with the image of the hotel has in the eyes of public and GM wishes to
enhance that images. This department may have Sales. Manager who assists the GM on sales
calls. The GM and Sales Manager prepare a budget for the year sale of rooms and the conference
hall. They try and achieve the budget by the end of the year. This is done with a lot of planning
and research. This would be achieved by a contract with one or more travel agents in and outside
the town. And for selling the conference hall the sales team should contact various companies
and other business firms. The main function of this department is to increase the sales volumes
of the different services offered in the hotel, be in terms of rooms, food, beverages, clubs,
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restaurants, spa etc. Usually the tools adopted by the department to make the guests accustomed
to different services and offerings in the hotels
(1) Correspondence
(2) Personal contact
(3) mailings (4) Fax etc.
The other core areas of its consideration are as follows
Conduct a market Audit.
Analysis of market competition.
Market place analysis.
Formulation of new schemes and niche offerings.
Selection of profitable market segments.
Positioning the property.
Establishing the objectives and the action plan.
Monitoring and evaluating the market plan.
Restructure the market plan, if needed.
HIERARCHY OF SALES & MARKETING
Head of sales Associate Head of Sales Sales Executives Sales coordinators
Purchase Department
While operating a hotel is supposed to be a difficult task, managing the entire procurement
process (for such a unit) is even more so. The purchase department handles the task of
procurement yet all departments play a crucial role in it. That said technology ensures that inter-
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departmental activities takes place flawlessly. Although purchase has now become dependent on
technology for managing inventories and order status, it was originally a manual job. From
selection of products to deciding on a vendor, this department rests on the human ability of In
most modern hotels, the installation and service of elevator systems is generally the province of
the elevator manufacturer, and hotels typically have extended maintenance agreements for the
elevators. Most engineering departments, however, closely monitor the operation of the elevator
systems. In modern high-rise hotels with high speed elevator service, the slightest problem with
that service should be quickly and easily identified and reported to the contractors. It is generally
the responsibility of the engineering department to monitor these services and their contracts
closely and carefully.
Security Department
The security of guests, employees, personal property and the hotel itself is an overriding concern
for today’s hoteliers. In the past, most security precautions concentrated on the prevention of
theft from guests and the hotel. However, today such violent crimes as murder and rape have
become a problem for some hotels. Unfortunately, crime rates in most major’s cities are rising.
Hence today security department also concentrate on these additional criminal activities too. The
main position in the security department is of the Assistant Security Manager. The department
includes the fire and safety officer and the duty guards. The primary function of the security
department is to provide property surveillance and protection to the guest. The latter is more
important for the security department. In the hotel there are two variants of security staff working
round the clock indifferent shifts. First is the direct security staff of the hotel working in three
different shift of 8 hour duration? Considering flawless security to the guests, all the guest rooms
of the hotel are installed with spring glass and smoke detectors and automatic alarm
system. There is a central security office working inside the hotel with all the modern fire
Fighting equipments such as fire extinguishers, dry powder, and other fire dousing facilities. As
a part of the security provision both to the hotel’s property and the guests the entire geographical
area of the hotel is divided in to 3 portions such as Beach Viewpoint, Tide point and the Club –
these three points are all together known as the ‘assembly point’ . The most common methods
adopted by the fire and safety wing of the hotel (it came under the security department) are liquid
carbon dioxide, dry powder etc. The security control post of the hotel will be functioning on 24 x
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7with office secretary, night and day supervisor, and security officer. The security setup at the
hotel is faultless since the hotel cannot compromise on the safety of its valuable guests. All the
activities of the security department is controlled and supervised by the main security officer. He
is also responsible for conducting training programmes on security and fire fighting to the
security staff of the hotel.
CHIEF SECURITY OFFICER
ASSISTANT SENIOR SECURITY
SECURITY SUPERVISOR
DOORMAN GUARDS SECURITY
Reservation
Receive and process reservation requests for future overnight accommodations.
With technology development, the Reservation Department can, on real time, access the
number and types of rooms available, various room rates, and furnishings, along with the various
facilities existing in the hotel
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There should be close relation-ships with Sales and Marketing Division concerning Large
Group Reservations
Uniformed Services
Bell Attendants: Ensure baggage service between the lobby area and guestrooms
Door Attendants: Ensure baggage service and traffic control at hotel entrance
Valet Parking Attendants: Ensure parking services for guest’s automobiles
Transportation Personnel: Ensure transportation services for guests from and to the hotel
Concierge: Assists guests by making restaurant reservations, arranging for transportation,
and getting tickets for theater, sporting, or any other special events
Telephone Department
Answers and distributes calls to the appropriate extensions, whether guest, employee, or
management extensions
Places wake-up calls
Monitors automated systems
Coordinates emergency communications
Engineering and Maintenance Division
This very department maintains the property's structure and grounds as well as electrical and
mechanical equipment. Some hotels might have this very division under different names, such as
maintenance division, property operation and maintenance department…
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CHAPTER 4
MCKINSEY’S 7S MODEL AND SWOT ANALYSIS
MCKINSEY’S 7s MODEL
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Peters and Waterman, and was taken up as a basic tool by the Global Management Consultancy
McKinsey’s: its sometimes known as the McKinsey’s 7s model.
Managers need to take the account of all seven of the factors to be sure of successful
implementation of a strategy-large or small. They are all interdependent, so if fails to pay proper
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attention to one of them, it can bring the other crashing down. To better represent the challenges
of Service Marketing McKinsey developed a new framework for analyzing and improving
organizational effectiveness, the 7s model:
Soft’s:
The 4Ss across the bottom of the model are less tangible, more cultural in nature, and were
termed ‘Soft Ss’ by Mckinsey;
• Skill: The capabilities and competencies that exist within the company.
• Shared Valued: The values and beliefs of the company, ultimately they guide employees
towards ‘Valued’ behaviour.
• Staff: The Company’s people resources and how they are developed, trained and
motivated.
• Style: The leadership approach of too management and the company’s overall operating
approach.
The 3Ss across the top of the model are described as ‘Hard Ss’:-
• Strategy: The direction and scope of the company over the long term.
• Structure: The basic structure of the organization, its department, reporting lines, areas of
expertise and responsibility (and how they inter-relate) system. The formal and informal
procedure that govern everyday activity, covering everything from the Management Information
system, through to the systems at the point of contact with the customer (retail systems, call
centre systems, online systems etc.).
• System: Systems refers to the procedure through which a particular operation/function is
carried our effectively in either one of the department or in the entire organization as a whole.
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1. STRUCTURE:
Organization structure gives concrete shape to the organization. The structure specifies
division of work activities and shows how different functions or activities are linked. It also
indicates the organization’s hierarchy and authority structure, and shows its reporting
relationship. It provides the stability and continuity that allow the organization to survive the
comings and goings of individuals and to coordinate its dealings with the environment.
Pascal and Athos in their book. “The Art of Japanese Management” says. “Organization
structure emphasizes that the quality of management depends on the goodness of which amongst
all those key managerial dimensions”.
An organization structure can be viewed as accomplishing four distinct functions:
• Dividing work in to manageable segments.
• Recombining work in a logical and efficient manner.
• Distributing power to direct or coordinating work.
• Establishing channels of communication and the directive or non-directive nature of
information flow.
2. SKILL
Skills refer to the fact that employers have the skills needed to carry out the company strategy.
Training and Development ensuring the people to know how to do their jobs and says to update
latest techniques. People in an organization need various skills such as managerial, , science, etc.
In the organizational content people also need business skills, such as marketing, finance and
planning etc.
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• Conceptual Skills
• Human Resource Skills
Waterman considers “skills as one of the most crucial attributes of an organization”. The term
“skills” include those characteristics which most people use to describe a company.
• Fortune select trinity, has also shown its capacity in handling cxpenditure of high
magnitude.
3. STYLE:
The organization adopts both top-down as well as bottom-up approach in various situations:
As in the case of making major decisions lie policies, procedures discipline etc. are taken by the
top management.
• What policies and procedures should be adopted by the company.
• The strategy, which is to be adopted by the company to achieve the goals and objects.
Here the middle level management will prepare the memorandum, in consultation with
production department and all related departments and is approved by the top management so,
here the bottom-up approach is adopted.
The organization follows the participative style of leadership. This can be said so, because each
and every employee of the organization are allowed to give their view points with any area of
operations.
The employees who give good ideas which prove to be acceptable and service to toe company as
well as the employees will be awarded. This also makes employees to feel good working.
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4. STRATEGY:
Strategy is referred as “ a pattern, in a stream of decision and actions”. This pattern of decision or
action is aimed at achieving the goals and objectives of the company.
• Fortune select trinity is committed to become a world class organization that can translate
these commitments in to reality.
• It has taken several steps to promote fly ash utilization.
• Its aims at providing a bright, powerful and promising future.
Budgetary Control:
Planning is the basis of managerial function. It helps in determining the course of action to be
followed for achieving organizational goals. Control is the process of checking whether the
plans are being adhered to or not, keeping a record of progress, comparing it with the plans and
then taking corrective actions for future if there is any deviation. Every business enterprise
needs the use of control techniques for serving in the highly competitive and changing economic
world. There are various control devices in use. Budgets are the most important tool for profit
planning and control.
Budgetary control is the process of determining various budgeted figures for the enterprise for
the future period and then comparing the budgeted figures with the actual performance for
calculating various, if any. First of all budgets are prepared and then actual results are recorded.
The comparison of budgets and actual figure will enable the management to find at discrepancies
and take remedial measures at a proper time. The budgetary control is a continuous process,
which helps in planning and co-ordination. It provides a method of control is the end results.
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5. SYSTEM:
The procedures, processes and routines that characterize how important work is to be done:
financial systems; hiring , promotions and performance appraisal systems; information systems,
The finance department. In the finance department, the employees will have the record of
various lists of vendors their details payment,
6. STAFF:
Staff of human resource of an organization in referred as an important asset. So the person to be
selected for this should be carefully selected and appointed airtight place at right time. Various
positions in the company require differing contribution and this has the implication that different
people are needed to fit their various roles. Certain positions require people with special skills
other requires special knowledge and also different of personalities.
• Staffing is the process of acquiring human resources for the organization and assuring
that they have the potential to contribution to the achievement of the organization’s goals.
• To ensure greater objective in appraising the performance of employees new performance
appraisal systems are introduced in the company.
• The staff includes the board, headed by the chairman, who is the director and company’s
senior officers.
SWOT ANALYSIS
STRENGTHS
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ITC is a very strong and established brand name all over the world. It has a base of loyal
customers at local level as well as at international level. It has one of the biggest
international booking structures. Whatever the situation and scenario may be, corporate
and government agencies always prefer for their functions, seminars, and lodging their
guest and customers. ITC Guest Rewards program is the world’s largest and most
preferred frequent guest program and is strength for customer retention.
Natural and cultural diversity: India has a rich cultural heritage. The "unity in
diversity" tag attracts most tourists. The coastlines, sunny beaches, backwaters of
Kerala, snow-capped Himalayas and the quiescent lakes are incredible.
Demand-supply gap: Indian hotel industry is facing a mismatch between the demand
and supply of rooms leading to higher room rates and occupancy levels. With the
privilege of hosting Commonwealth Games there is more demand of rooms in five
star hotels. This has led to the rapid expansion of the sector
Government support: The government has realized the importance of tourism and
has proposed a budget of Rs. 540 crore for the development of the industry. The
priority is being given to the development of the infrastructure and of new tourist
destinations and circuits. The Department of Tourism (DOT) has already started the
"Incredible India" campaign for the promotion of tourism in India.
Increase in the market share: India's share in international tourism and hospitality
market is expected to increase over the long-term. New budget and star hotels are
being established. foreign hospitality players are heading towards Indian markets.
WEAKNESSES
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Poor support infrastructure: Though the government is taking necessary steps,
many more things need to be done to improve the infrastructure. In 2013, the total
expenditure made in this regard was US $150 billion in China compared to US$ 21
billion in India.
Susceptible to political events: The internal security scenario and social unrest also
hamper the foreign tourist arrival rates. The lack of adequate recognition for the
tourism industry has been hampering its growth prospects. Whatever steps are being
taken by the government are implemented at a slower pace.
OPPORTUNITIES
ITC has the opportunity to retain its customers by providing good quality food, as food
quality is not up to mark.
In light of post 11 September, foreign delegations and missions are bound to come to the
federal capital, which opens an opportunity for ITC to attract new business.
Rising income: Owing to the rise in income levels, Indians have more spare money to
spend, which is expected to enhance leisure tourism.
Open sky benefits: With the open sky policy, the travel and tourism industry has seen an
increase in business. Increased airline activity has stimulated demand and has helped
improve the infrastructure.
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THREATS
Emergence of new competition in form of new hotels: Food Street poses a threat for
their restaurant business. Government policies and economic recession can adversely
affect their business.
Fluctuations in international tourist arrivals: The total dependency on foreign tourists
can be risky, as there are wide fluctuations in international tourism. Domestic tourism
needs to be given equal importance and measures should be taken to promote it.
Increasing competition: Several international majors like the Four Seasons, Shangri-La
and Aman Resorts are entering the Indian markets. Two other groups - the Carlson Group
and the Marriott chain - are also looking forward to join this race. This will increase the
competition for the existing Indian hotel majors.
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CHAPTER-5
SUMMARY
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FINDINGS AND SUGGESTION’S
After doing this comprehensive report, we came up with some suggestions for fortune select
trinity to cope with the existing as well as emerging competitions.
Hotel should consider local restaurants as their competitors too and try to attract people
visiting these restaurants as well.
As they are constructing new halls and restaurants, they must consider their pricing
strategy to attract new customers and provide them better quality food at competitive
rates.
According to a report by HVS and The World Travel and Tourism Council, the travel industry in
India is expected to reach 1,747 million travellers by 2021, which will require 1,88,500 additional
hotel rooms. Mid-market hotels will be the driving force because they usually have more rooms
per hotel than a five star or luxury hotel and can be built faster and more cost-effectively in
multiple micro-markets as well as in most tier I, II and III cities . So Fortune Trinity can focus on
building more budget hotels
They should issue News Letter to let its customers know what are their future plans.
Their existing policy emphasizes on existing customers. They should broaden their
customer base.
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LEARNING EXPERIENCE
Exposure to the Industry
This project helped me to get practical exposure that, how an organization works, how
they are marketing their products, what are the different schemes they are going to introduce for
both customers & dealers implementation of theoretical aspects into practically. About company
strategies, their working style, systems like inventory control system, recruitment, training of
employees, performance appraisal, etc. Which are learned theoretically in the classroom. I
observed all these practically about how these theoretical aspects can be practically implemented
in the company.
Exposure to the company
Firstly, I came to know how to approach the companies for getting the project work & to
communicate with the higher officials regarding the project & convincing them how it is useful
to the company & also how it is useful to me.
I learnt how the theoretical concepts in the classroom as apart of my degree were been
implemented in the corporate world as their compulsory policies & procedures to carry out daily
activities.
I learnt how the company sets their vision & mission & the objectives & the policies to
achieve the vision of the company in their journey to achieve the goals in their business
processes.
I could also learn the concepts like:
Elimination of losses
Achieving zero break down
Zero defects
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I could also found that the company is growing in faster rate, which is mainly due to good
relation between the employees. Thus i could learn the relevance of team building in an
organization. helped me to build my soft skills like meeting a deadline time management.
Team work & networking with fellow employees also helped me to understand the corporate
culture & experience in a better way.
I am happy that the employees in the company work like one big huge family. I also learnt
how to work in a fast environment. The training has also given me an invaluable understanding
of the internal business & culture that could never be attained through theory.
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CONCLUSION
Tourism is a phenomenon, which has now become a powerful in its own right. It
has now become a vital part in any country’s economy. This is by virtue of the
being the highest foreign exchange earner and an employment in time industry.
The hotel is undergoing a tremendous change regarding management, which
prefers analyzing innovative thinking in the administration of the hotel.
India today has a very strong computerized system making the work easy.
Budget hotels cater to the needs of the budget conscious travelers
Lot of private airlines is coming up with open off polices of government of
India.
ITC is renowned because of its excellence in providing customer satisfaction.
They were enjoying the status of market leadership rather monopoly since their
existence,. ITC should work to cope with this competition. Whatever the
conditions will be, ITC loyal and permanent customers will always prefer them.
As is not up to the expectations so far, therefore, It has an opportunity to
maintain and improve their quality service and retain their customers. It never
compromises on quality.
ITC is aware of the fact that hospitality industry exists in rapidly changing
environment, where new products and innovations are introduced quite
frequently. It is one of the biggest names in the industry and they always keep
abreast of their competitors. It relies on its international brand name and is quite
sure that will not be that big a threat.
We conclude that ITC is better than any other hotel located in Bangalore at
present and it is always the first preference for its customers.
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BIBLIOGRAPHY
Books
Stephen covery (1994), The Seven Habits of Highly Effective People (6thEdition ), Simon &
Schuster UK Ltd.
The information provided in this project is collected from various sources like;
www.wikipedia.com
Itc website(www.itcportal.com)
Ashok website(www.ashokhotels.com)
www.Scribd.com
www.Wikipedia.org
India Today magazines
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