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The Managerial Functional Approach towards…! Faisalabad Serena Hotel By: Falcon Group Group A

Serena Hotel (Faisalabad)

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Page 1: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards…!

Faisalabad Serena

Hotel

By:

Falcon Group

Group – A

Page 2: Serena Hotel (Faisalabad)

Students Profiles

Group – A

(Falcon Group)

Subject: Principles of Management

Course Instructor: Prof. Ammad – UN- Nasar

Project Topic: Faisalabad Serena Hotel (FSH)

Program: B.Com (HONS)

Semester: Vth / Regular

Session: 2008 – 2012

Submission Date: Jan 08th

/ 2011 (Saturday)

Name Roll No Project Status

Ali Burhan Khan 05 – R Group Leader

Ali Raza Sahni 20 – R Project Advisor

Imran Hussain 33 – R Project Assistant

Muhammad Usama 14 – R Data Collector

Page 3: Serena Hotel (Faisalabad)

Contents

NO: Topic Name Page #

1. Executive Summary 01

2. Introduction to Faisalabad Serena Hotel (FSH) 02

3. Brief History 02

4. Company Profiles 03

5. Mission Statement 04

6. Vision Statement 04

7. Setting Organizational Objectives & Goals 05

8. Corporate Environmental Mission Statement 05

9. Facilities in Hotel 06

10. Corporate Social Responsibility (CSR) 07

11. Various Departments in Hotel 08

12. Managerial Policies in FSH 13

13. Marketing & Communications Setups 13

14. Structural Dimensions of FSH 14

15. Hotels Objectives for Next 5 Years 16

16. Organizational Hierarchy 18

17. Various Strategies 18

18. Organizational Micro-Environment 21

19. Organizational Macro-Environment 23

20. Measuring the Hotel Business Plans 24

21. Hotel Registration Cards 24

22. Safety Regulations 25

23. Restrictions – inside the Hotel 25

24. Employees On - the - Job Training 25

25. Various Services for Guests 26

26. Service Classifications 27

27. SWOT Analysis 29

28. Suggestions & Recommendations 32

29. Conclusion 32

30. References 33

Page 4: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

EXECUTIVE SUMMARY

This project is the third task which given to us to work – out on the organizational

view in our B.Com (HONS). The “Pakistan Steel Mill, Karachi” & “State Bank of Pakistan”

were our last projects in Introduction to Business & Money & Banking subjects, respectively.

The sole objective of this project is to get a theoretical manipulation of a business

organization. This project has been written to know how big organizations like Serena Hotels

manage their teams to achieve their common goals.

In the first phase of the report there is the general introduction about the company,

and then the mission, vision, values, objectives and philosophy of the company are described.

After that the various departments, product offerings and structural dimensions of the

organization have been explained.

In the next part pricing strategy, policy statements, strategic plan and SWOT analysis

of Serena Hotel Faisalabad has been done by the help of which it is identified that what are

the strong areas of the organization and where it lacks so that it can improve, and in the end

summing up with some conclusions and recommendations.

Page 5: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

INTRODUCTION TO FAISALABAD SERENA HOTEL (FSH)

The Faisalabad Serena Hotel – A member of THE LEADING HOTELS OF THE WORLD

The richness of eras past is the hallmark of this hotel

The Faisalabad Serena Hotel is the architect of fabulous hotel. This hotel is a mere

reflection typical of Pakistani of cultural heritage also depicting the skills and craftsmanship.

Being state-of-the art building, the hotel beautifully combines traditional systems equipped

with latest technologies.

The true spirit of the hotel is reflected in the aesthetics of the public areas, corridors,

rooms and restaurants with special emphasis on trademarks of Islamic architecture. The hotel

is a remarkable blend of architecture with rich, elaborated and vivid designs where the

artisans have really showed their magic on the ceilings, floors, walls and furnishers.

The Faisalabad Serena Hotel pays particular care and attention towards the security

and well-being of hotel guests. There has been an all-time alert security system with up-

graded high tech, and a revised Crisis Management Plan in place so as to tackle any

unforeseen incident.

The hotel is strategically surrounded by grounds that prevent direct access by any of

the treks. Inside of the hotel has several measures has been taken into serious account to

make sure that unexpected events never happen.

BRIEF HISTORY

Faisalabad city, formerly Lyallpur, with a population of over five million, the city is

located in the North East of Pakistan, in a cotton and wheat growing area. The city is known

as Manchester of Pakistan for its rich Textile industry.

Faisalabad Serena Hotel was inaugurated in 1987 by the President of Pakistan General

Muhammad Zia-ul-Haq. Faisalabad and Quetta Serena hotels have been designed and built

according to the Serena standard, incorporating the local architectural characteristics of the

Region. Islamabad, Swat and Gilgit Serena hotels are located amidst the most scenic areas of

Pakistan and cater mostly to the leisure travelers.

Page 6: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

THE COMPANY PROFILES

Tourism Promotion Services (Pakistan) Limited was incorporated in Pakistan on 19th

March 1969 and is a public limited company (unlisted) registered under the Companies

Ordinance, 1984. Serena Group of Hotels is a part of this company.

The Aga Khan Fund for Economic Development S.A., Switzerland (AKFED) holds

majority of the shareholding i.e. 92%, followed by 6% holding by the Industrial Promotion

Services (Pakistan) Limited, another project of AKFED and the remaining 2% by

Government of Pakistan through Pakistan Tourism Development Corporation and Ministry of

Tourism, Government of Pakistan.

The Company owns and manages hotels in Islamabad, Faisalabad, Quetta, Swat,

Gilgit and Hunza. The expansion plan of the company includes development of hotels in

northern and the southern regions of Pakistan. The company is committed to work hand in

hand with the Government of Pakistan in developing tourism in Pakistan.

The Corporate Office and the Hotels are being managed by a team of professionals.

They are committed to provide full support to their associates for delivering the best possible,

efficient and personalized services to their guests.

In addition to Pakistan, over 20 Serena Hotels and Inns are being run professionally in

Kenya, Tanzania, Zanzibar, Mozambique, Uganda, Afghanistan and Tajikistan.

The Faisalabad Serena Hotel has 144 rooms all decorated to reflect the vibrant colors

of the Punjabi people and culture of Faisalabad. Besides all the living amenities through guest

rooms, the Hotel also provides conference rooms, health club, business centre and the

restaurants, which offer Continental, Chinese Pakistani and Bar-Be-Que cuisine.

Page 7: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

MISSION STATEMENT

Our mission is to create buildings of outstanding ethnic design offering the highest

standards of service and product, providing management and our team members with an

environment which enables all of us to deliver operating standards beyond the level of our

guest’s expectations, resulting in satisfactory returns to our stakeholders.´

Faisalabad Serena Hotel is a place where the genuine care and comfort of the guest is

their mission. They pledge to provide the finest personal services and facilities to their guests

who will always enjoy a warm, relaxed, yet refined ambiance.

Motto at Faisalabad Serena Hotel is Together we strive to become what we were meant to be:

Faisalabad Serena Hotel will reflect the image of trendsetter in service and standard

through professional training and personal development, which will mean genuine

caring approach toward its guests.

Faisalabad Serena Hotel will continue to be perceived as a hotel that cares for the

development of social and cultural activities in the area where it’s located.

Faisalabad Serena Hotel in collaboration with appropriate national and international

organization will ensure the widest possible awareness and observance of the

initiative and practice they promote.

Faisalabad Serena Hotel will regularly arrange training of staff internally and in

national institutions to have professional and motivated staff.

VISION STATEMENT

"Our vision is to be the hotel recognized as leader in the Industry in

any aspect. We are committed to Train & develop all our staff members so

that they grow in their careers and provide services & standards, which

exceed guest expectations".

Page 8: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

SETTING ORGANIZATION OBJECTIVES & GOALS

Every organization has some defined objectives and goals in vision because an

organization cannot meet at the customer needs so marketing goals must be elective.

Marketing goals must also be operational and specific, that is useful for developing specific

plans, and because goals in fact communicate to employees what there task and roles should

be. Goals of the hotel may also differ at the same level of the hierarchy. Following are the

basic goals & objectives of FSH are:

To attain maximum business out of the hotel industry

To maintain and add to its identity

To create variation in services

The quality of the services must meet the expectation of the consumers

The standard of services meets the expectations at the international levels

To launch a new service while holding costs to a minimum

To create awareness about all services among consumers

Meeting all the needs of the consumers

CORPORATE ENVIRONMENTAL – MISSION STATEMENT

Serena’s corporate environmental mission statement contains the following parts:

We are committed to developing projects, which pay the highest regard to

environmental concerns in design, planning, construction and operation.

We will be sensitive towards the monitoring of the interests of the local population

including their traditions, culture and future development.

We will practice a responsible attitude towards energy conservation; reducing and

recycling waste; control of sewage disposal, air ± emission and pollutants; reduce use

of unfriendly products such as Chloro Floro Carbon¶s (CFC¶s), pesticides and other

toxic substances; reduce noise and visual pollution.

We will be sensitive to the conservation of environmentally protected or threatened

areas, species and scenic aesthetics and to achieving landscape enhancement where

possible, with indigenous plant material reinforcement.

We must conserve rather than exploit nature.

Page 9: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

FACILITIES IN FAISALABAD SERENA HOTEL

There are diverse varieties of facilities provided by FSH which includes:-

144 guest Rooms and Suites

Complimentary Airport Shuttle Service

Rent-a-car

Concierge

Multilingual staff

Laundry Shop

The Executive Floor and Jasmine Floor offer additional facilities for our guests such as

private Lounge area, Business Center, Meeting Room and Butler Service.

Lyallpur Coffee Shop

Fine-dining Restaurant serving Pakistani, Continental cuisine and Hi Tea With live music

Xuelian Restaurant with Chinese, Japanese and Thai specialty Cuisines

Jharoka, Café and Ice Cream Parlor

The Seasonal Barbeque at the Basant Court featuring traditional provincial Food with live

music

Lobby Lounge serves tea, coffee and light snacks.

Health Club

Swimming pool and sun-deck

Pool Bar

Tennis Court

Squash Court

Gymnasium

Shopping Arcade

Baby-sitting, additional beds/cots, children’s meals

Conference/Events Centre

24-hour Business Centre

WI-FI Internet access

Flat screen TV with a variety of Channels

24-hour Forex

Room Service,

Valet parking,

In House Laundry and Dry Cleaning same day service

24-hour doctor on call

Power (240V/ 3 pin square- plugs/shaver sockets)

Page 10: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The CSR Programme at Serena is inspired and derived from His Highness Aga Khans

vision of Holistic development where organizations play an essential role in the provision of

social services. The CSR Programme at Serena is known as SEED (Serena Environmental

and Educational Development Programme).

This Programme underpins a broad CSR response in the areas of Culture,

Environment, Governance and Society. This programme follows the concept of an

organization being a social enterprise where the business needs are synergized with the social

outcomes. Serena encourages open and transparent business practices that are based on

ethical values and respect for its employees, communities and the environment.

The social, developmental and operational activities of Serena are designed in such a

manner that these activities deliver sustainable value to the society at large, as well as to

shareholders.

At Serena corporate social responsibility goes far beyond the old concepts of

philanthropy of the past which was just donating money to good causes at the end of the

financial year - and is instead an all year round responsibility that Serena accepts for the

environment around it, for the best working practices, for the engagement in the local

communities and for the recognition that brand names depend not only on quality, price and

uniqueness but on how, cumulatively, Serena interacts with companies workforce,

community and environment.

Now we are moving towards a challenging feature of our corporate responsibility,

where at Serena the results are judged not just by the input but by the outcomes: the change

we bring along in this world in which we live through our foot prints, and the contribution we

make to reduce the sufferings.

Page 11: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

VARIOUS DEPARTMENTS IN FSH

At FSH there are seven major departments and each department has its own style of

working and at the same time it is connected with the rest of the network. These departments

are as follows:-

1) Accounts Department

2) Sales & Marketing Department

3) House Keeping Department

4) Human Resource (HR) Department

5) F & B Department

6) Production Department

7) Engineering Department

8) IT department

9) Front Office Department

10) Security Department

ACCOUNTS DEPARTMENT – This department is considered as the backbone of the hotel

operations. It looks into all the matters related with the finance and cost control. The

department is headed by Financial Controller. He has the full authority and control over the

department and his decisions in this regard are final with the approval of General Manager.

This department is responsible

To support other operational departments

To maximize hotel profitability

To be accurate in bookkeeping system. It should ensure effective Management

Information System and implementation of controls & procedures

SALES AND MARKETING DEPARTMENT – This department plays a vital role in

attracting customers and runs promotional campaigns.

Page 12: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

HOUSE KEEPING DEPARTMENT – This department is responsible for establishing and

maintaining high standards of cleanliness, for both our external customers (Guests) and

internal customers (employees).The scope of the house keeping responsibilities and duties

involve the following activities as:

1) Housekeeping control desk

2) Minibar

3) Linen

4) Front of the house

5) Laundry

6) Flower Room

7) Back of the house

8) Uniform

9) Pest control

10) Lost & Found

HUMAN RESOURCE DEPARTMENT – Human Resource Department is one of the most

important parts of the Faisalabad Serena Hotel back of the house management team. It serves

to handle all the matters regarding attracting, retaining and compensating the employees. It

overlooks all the matters that help to develop smooth employment relations all over the Hotel

to achieve maximum output from the employees. It functions like a bridge in between the

workers and management. There is Human Resource Manager who manages the whole

department and its functioning along with the assistant HR-Manager and HR-Officer.

The sub departments or sections HR-Dept looks into are as follows:

1) Time Office

2) Staff Cafeteria Satoon

Page 13: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

F & B DEPARTMENT – The word F&B stands for Food and Beverages. This department is

headed by F&B director. The main duties assigned are:

Provision of quality food to the guest’s

Serving and related matters

Maintenance of food items

PRODUCTION DEPARTMENT – The Food & Beverages department when comprised of

the production division involves the kitchen having the specialized production area and wide

range of cooking equipment that helps for cooking of different types of meals. The key

objectives of F & B ( Kitchen) is to enhance the dining experience of the guests and to create

the cuisine which is beyond customer expectations by providing modern creative yet

authentic food and maintaining high hygiene standards . It starts from the purchase of food

items and ends with the production. Following are the sub departments comes under the

Kitchen

Butchery

Garde Manger

Patisserie

Ba nq ue ts

Coffee Shop and Room Service

Pakistani, Thai, Chinese

Staff Canteen

Kitchen Stewarding

ENGINEERING DEPARTMENT – The Engineering department is responsible for the

maintenance of various mechanical sections of the organization and operational readiness of

all engineering services. It also strives to achieve declining routine complaints and minimum

down time on machineries and equipment.

Page 14: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

IT DEPARTMENT – The Information Technology Department is responsible to design such

technologies for the Hotel that will work efficiently along with the cost control. Following

are the technologies that are used in Faisalabad Serena Hotel:

FOH (Front of the House): Fox Pro DOS (2.6)

BOH (Back of the House): Accounts & Purchase MIS Plan

ACT Technology for Sales & Banqueting: Oracle (8)

Online Guest Comments: Data base periodically

2 Domains: way of communication

2 work groups: Experiences of guests through C-Net # Technology almost300

computers are connected

FTB: Fire Transfer Protocol

75 Personal Computers connected with in the offices

Digital Exchange 4400 BA & BX made by Alcatel

Digital Computerized Exchange

Self-Developed Software: EI (Exchange Interface)

Working on Prestige Club Management System

Multimedia and sound system controls in the Events

FRONT OFFICE DEPARTMENT – following of the services are offered in the front office

of FSH:

Reception

Reservation

Restaurants

Concierge

Guest relation

Business centre

Rent a car

Page 15: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

SECURITY DEPARTMENT – There have always been security needs whenever services

are rendered, but traditionally this has been restricted to pilferage. In modern era service

organization have seen increasing sophistication of the security system offset new and

unexpected challenges.

Some of the functions performed by this department are:

Physical safety of guests

Safety of guest's belongings

Safety of hotel premises from criminal acts

Control of Pilferage

Control of illegal occupancy of rooms by guests

Control of unauthorized use of rooms

Parking control

The Faisalabad Serena Hotel organization has put into effect procedures where the

security dept is authorized to inspect/search any individual even the Assistant general

manager. The General Manager directly controls the security dept.

Page 16: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

MANAGERIAL POLICIES IN FSH

Due to the rapid changes that are taking place the attitude, values, beliefs, ideology

and technology are in a constant state of change. Therefore an organization has to make

policies which can meet these changes. Some of the pearl continental policies about certain

matters are as under

1) MANAGEMENT – We aim to provide attractive job satisfaction and carrier opening.

2) EMPLOYEES – We wish to enhance the carrier of our employees and we like to

think that this a satisfying company to work where condition are above average for all

the workers.

3) PRODUCT – Our product should meet the customer’s expectation and we should

ensure that our products are not harmful.

4) CUSTOMER – The customer is why we are here. We shell not only giver good value

for money we must satisfy his every demand.

5) COMPETITORS – We should respect the competition and we will compete

vigorously but not illegally.

MARKETING & COMMUNICATION SETUPS

Hotel business mostly depends on public relations. Management try to have positive

image in public, so because of this FSH maintains a separate good office of public relations

department. This department performs following important functions:

Organizing advertising companies

Conveying protocol on arrival of VIP's

Publishing pamphlets, bulletin

Organizing festivals

Functions

Page 17: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

STRUCTURAL DIMENSIONS OF FSH

Following are the major dimensions which are adopted in FSH as:

1) Formalization

2) Specialization

3) Hierarchy of Authority

4) Centralization

5) Professionalism

Formalization – There is a formalized system of the departmentalization at FSH. The

company is divided into formalized departments. These are

1. Front Office

2. Room division

3. House Keeping

4. Engineering

5. Purchase

6. Stewarding

7. Food & Beverages (Kitchen)

8. Food & Beverages (Service)

9. Food & Beverages (Banqueting)

10. Prestige Club

11. Public Relations

12. Sales & Marketing

13. Human Resource Department

14. Accounts

15. Information Technology

Specialization – All departments have been assigned a specialized division of labor. They are

responsible for performing their respective tasks and duties when working together. They

share their duties but they are responsible on their own.

Page 18: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

Hierarchy of Authority – Top ± Bottom Approach – The hierarchal structure practicing in

FSH is Top-Bottom approach. Final authority lays in General Manager or Director

Operations that is delegated to the lower level of management.

General Manager/Director Operations

Head of the Department

Asst. Head of the department

Section Head

Supervisor

Centralization – Being the multinational company it is working under standard operational

procedures. Such procedures pre determine the set of activities the individual departments

can perform. The General Manager controls the department in the way that no department

could involve into such activities that is out of their SOPs. The basic concept of centralization

in FSH is to control the activities of the departments in a favorable manner.

Professionalism – In multinational company, the expectations of the clients regarding

services are very high in order to meet and exceed the expectations of the clients; the

companies require a professional work force in order to achieve optimum results.

In Faisalabad Serena Hotel the company hires and trains their workforce to make

them highly professional ion their respective fields to get the maximum satisfaction from the

guests and high profits.

Page 19: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

SERENA’S OBJECTIVES OVER NEXT FIVE YEARS

In general the main purpose of setting the objectives is to state that what is to be

accomplished in future within the specific period of time. The main reason for setting-up the

long term objectives is to set a target or challenge to work for that and to some extent impress

the shareholders and other stakeholders.

Five Years Objectives – When we talk about Islamabad Serena hotel their next five years

objectives include as:

1) To Increase Profitability – Faisalabad Serena hotel has planned to increase their

earnings by 15% annually and to reach at least 40% increase over the next five years.

2) To Increase Market Share – Serena Hotel has an objective over the next five years to

increase their market share from Internet sources and through alliances with airlines

and to give more attractive packages to their customers.

3) Delivering Shareholder Value – They are being committed to be growing company.

Their success will result in investment returns that are consistently among the best

hotel industry. Their primary business objective is to maximize current returns to the

shareholders by increasing cash flow available to pay distributions and provide long-

term total returns to shareholders.

4) Being the Best – Faisalabad Serena hotel has an objective to become an innovative

leader in the hotel industry and to continuously improve their products and services.

They will seek from their supplier highest quality of product and services at the best

value.

5) Working Together as Colleagues – They emphasize on sharing responsibility,

accountability and recognition through a climate of teamwork, because this thing will

ultimately help to improve their overall efficiency, as the employees will be

motivated.

Page 20: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

6) Providing a Climate of Enthusiasm – They are committed to every one at Serena hotel

by providing a caring and motivating, and rewarding environment. As an industry

leader, they have an objective over the next five years to bringing out the best people

though effective training and meaning full carrier and personal development and by

encouraging individuality and initiative.

7) Contribute To National Growth – Tourism is a sector of Pakistan's economy that has

significant potential and a country can increase the foreign earnings with the help of

tourism. Operating under the ³Serena´ brand name, Tourism Promotion Services owns

and manages fifteen hotels in East Africa and Asia. Besides earning foreign exchange

and increasing employment and manpower development, tourism can contribute to

national growth in more qualitative ways. So now their main objective over the next

five years is to satisfy the wants and needs of tourism businesses and hotels as well as

consumers in the 21st century.

8) Maintain High Standards – Now they have an objective to keep the same high

standards regarding the quality of their goods and services and to make improvements

in those areas where they are lacking behind.

9) To Create Alliances – Increase business from Internet sources and through

partnerships. So in order to capture or increase the market share now the objective of

the Serena hotel is to create an alliance with airlines so that all the staff and passenger

stay in Serena hotel, which will definitely brings a huge amount of revenues on

regular basis.

Page 21: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

ORGANIZATIONAL HIERARCHY OF FSH

The Faisalabad Serena Hotel has

developed and positioned itself in the society as

a highly esteemed place and to maintain its

position it follows a hierarchy of needs which

increases the organization¶s financial stability

from step to step as the organization increases

and maintains its path towards excellence.

VARIOUS STRATREGIES IN FSH

Marketing Strategies

Promotional Strategies

Pricing Strategies

Organizational Considerations Strategies

Proposed Strategies

Growth Strategies

Strategic Plans

MARKETING STRATEGIES – One of the most important functions of the marketing

department is to design a set of written goals, objectives and strategies for marketing

activities of the organization. This means establishing rules and business concept of how the

organization will conduct itself on the market, what marketing instruments will be used, what

goals will be set and what strategies should be applied to attaining effective advertising

campaigns. The marketing department develops a market based business strategy that

provides unique value to the customers on all services and products of the organization.

The strategy establishes the workflow in the marketing department so that each

process within the workflow can be continually evaluated, measured and improved until the

marketing goals are successfully achieved.

Page 22: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

PROMOTIONAL STRETAGIES – Finding new customers is the key challenge for every

business. Through creative advertising and promotion a business can attract new customers

and gain more revenue. The marketing department is responsible for providing

product/service advertising and promotion. The function of advertising and promotion is

especially important when the organization launches a new brand and it should be promoted

by informing the customers of the brand’s features and advantages. The advertising and

promotion plan may consist of the following parts:-

Advertizing

Sales Promotion

Marketing Materials

Publicity

Trade Shows

PRICING STRATEGIES – Too often Serena’s pricing specialists treat pricing as a tactical

problem in financial analysis of sales management. Pricing products and services is a

strategic problem that requires coordination of many functional areas. The ability to manage

effective pricing affects a company’s growth and profitability more quickly and directly than

any other strategic decision.

To be able to reach at a right decision, they need to do the following:

Change customers price perceptions to capture more value

Evaluate the real financial implications of pricing decisions

Use pricing strategically to guide our business to long-term profitability rather than

reactively to solve short-term problems

ORGANIZATIONAL CONSIDERATION STRATEGIES – Management must decide

who within the organization should set prices. In large companies pricing strategy typically is

handled by divisional or product line managers. The FSH's management considers its position

while setting the prices of its services. Top management sets mostly the prices, but it

considers the suggestions given by middle level management. Pearl Continental considers its

permanent corporate clients and offer them due concession in prices.

Page 23: Serena Hotel (Faisalabad)

The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

PROPOSED STRATEGIES – As we all know that hotel industry is highly attractive

market because of increasing trend of tourism, and Faisalabad Serena has a strong

competitive position so we suggested them to opt for growth strategies.

GROWTH STRATEGIES – In simple words we can say that corporate strategy provide a

strategic platform to handle the business with a common set of strategic capabilities and it

really helps by stating how the company will achieve its mission and objectives. Vertical

integration is really beneficial for Serena hotel, and it gives Serena hotel the following

advantages:

Cost can be controlled by eliminating the steps

Can create synergy

Avoid time consuming tasks like Serena hotel is advertising through public relations

with the media people, through magazines, through Pakistan tourism and in flight

advertisement etc.

Through vertical integration they can differentiate its product and services, like they

are providing their customer with the facility of limousine.

In general we can say that Serena hotel is following the differentiation strategy as they

are providing unique and superior value to their customers in term of their product

quality and services.

Serena hotel is targeting the limited market, which is the upper class or business class

so keeping in view the highly attractive industry they can open a new hotel for middle class

with relatively lower prices. The hotel may start under the same brand name or with a new

name.

STRATEGIC PLANS – Following are some strategic plans of Faisalabad Serena Hotel

(FSH) for the up – coming next futures:

Work with American Airline to develop alliance to reduce their marketing cost and to

increase market share.

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Within one-year initiate a program to analyze and review the overall

transport infrastructure so that more and more people come up for tourism purpose.

In addition to attracting new visitors, it is important to broaden the current tourism

base, both in terms of time and geography. In order for this effort to be effective,

Serena must work with regional organizations and statewide industry associations that

are already successfully promoting tourism, and encourage and support regional

groups to expand their capacity to promote tourism.

Geographically expanding the firm activities by going into other major cities and

acquire market share.

Strengthen the climate of support that exists for the tourism industry by

communicating the economic benefits of responsible tourism development to the

general public as well as to the state and local government representatives.

THE ORGANIZATION'S MICRO – ENVIRONMENT

The microenvironment consists of the forces close to the company that affect its

ability to serve its customers, the company, suppliers, marketing channel firm, customer

markets, competitors and publics.

The FSH has a successful microenvironment in their hotel. The microenvironment of

this hotel depends on all of the above factors. Now we explain these factors in the aspect of

Pearl Continental.

The Company – In designing marketing plans, marketing management takes other

company groups into account- groups such as top management, finance, research and

development, purchasing, and accounting. In any organization all these groups are

interrelated and form the internal microenvironment of the company.

In FSH all these groups are interrelated and they perform their own task. In this hotel

top management sets the organization's mission, objectives, and broad strategies and polices.

Marketing Intermediaries – Marketing intermediaries help the Organization to

promote, sell and distribute its goods to final buyers. They include resellers, physical

distribution firms, marketing services agencies, and financial intermediaries. Resellers are

distribution channel firms that help the organization to find customers and make sales to

them.

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The business of FSH depends on the different type of marketing

intermediaries. The major business of this hotel depends on the marketing service agencies.

Marketing services agencies help the hotel to convey the message to the target consumers.

The advertising agencies and media firms help the hotel to convey the message about

promotional strategies to the end users.

Customers – Every organization needs to study its customer market closely. There are

five types of customer market in any organization. These are:

Consumer Market

Business Market

Reseller Market

Government Market

International Market.

Competitors – Every organization must provide greater customer value and satisfaction

than its competitor. This concept is true in Faisalabad Serena Hotel. The hotel always gives

great importance to customer value and satisfaction in all the departments. The management

adopts different strategies according to the needs of the target consumers. The hotel provides

best services than its competitor.

Publics – A public is any group that has an actual or potential interest in or impact on an

organization's ability to achieve its objectives. In any organization there are different types of

Public like;

Financial Public

Media Public

Government Public

Local Public

General Public

Internal Public

- Financial Public include banks and different other companies.

- Media Public includes newspapers, magazines, radio & television.

- General Public is concerned with general public's attitude.

- Internal Public includes its workers, managers, volunteers and the board of

directors.

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THE ORGANIZATION'S MACRO – ENVIRONMENT

“The organization's macro environment consists of large societal forces that

affect the whole microenvironment demographic, economic, natural, technological,

political and cultural forces”.

Demographic Environment – Demography is the study of human populations in

terms of size, density, location, age, gender, race, occupation and other statistics. The FSH

has a strong demographic environment. The hotel provides different services according to its

demographic features. Hotel offers special packages according to different demographic

factors. There are special packages for children, for women & for business people etc.

Economic Environment – Economic environment consists of the factors that affect

consumer buying power and spending patterns. The management of the FSH is trying to

achieve strong economic environment in their hotel. They make different efforts, so that

consumer effect and avail their services. The hotel provides services with respect to the

different income level of the people.

Technological Environment – This environment force creates new technologies,

creating new services and market opportunities. The management of the FSH is always trying

to introduce new services in the hotel. They replace new services to the older one. The new

services create different marketing opportunities to the customer.

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The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan

MEASURING THE HOTEL BUSINESS PLAN

Motivating managers and measuring their performance are key challenges of any

organization. Financial results are typically the basis for gauging management¶s

effectiveness; however, the drivers of financial results are management¶s performance in the

areas of marketing effectiveness, sales, revenue management, sound labor relations, quality

assurance systems and financial systems, hygiene and control, amongst other things.

The Hotel Management Balanced Scorecard measure the Hotel¶s management

performance in implementing the four areas of the Business Plan (Marketing, Quality, Staff

and Finance).

It also recognizes that, at any stage, the four focus areas may not be of equal critical

importance to the Hotel, in periods of high, sustainable occupancies, marketing may be of

lesser importance than maintaining GUEST service and quality. Each µplan¶ has an

adjustable µweighting factor.

The measurement of achieved results against goals set in all four weighted areas

constitutes the measurement methodology of the Hotel Management Balanced Scorecard,

giving an overall performance score for the Hotel, as a whole, plus scoring each contributing

focus area (Marketing, Quality, Staff and Finance).

HOTEL REGISTRATION / CHECK IN CARDS

Hotel Registration Cards are handed over directly to the guests upon arrival, which

has to be filled in complete and presented at the reception desk or at the desk set up for this

special purpose to obtain room keys. Hotel expects to receive detailed group naming list one

month prior to the arrival date.

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SAFETY REGULATIONS

Following are some safety instructions inside the arena of hotel as:

Any accident or loss occurred to the exhibitor's personal staff or exhibits will be the

exhibitor's own responsibility.

Exhibitors will comply with hotel safety regulations specifically in regard to fire proof

decoration or protection against electrical malfunction.

Any activity threatening fire safety standard or damage to the hotel property will be

discouraged.

RESTRICTIONS – INSIDE THE HOTEL

There are following some restrictions inside the building of hotel for security purpose:

Display of signs or banner is not allowed within all public areas of the hotel.

Consumable, i.e. Food and Beverage items, may not be brought into the hotel. Food

and Beverage items cannot be served to the exhibit booths.

The exhibitor can only use the area placed at its disposal and cannot be exte nded to

the other public areas of the hotel.

The exhibitor undertakes to return the space in its initial condition, any requirement

regarding setup or display against the walls must require prior permission from

Conventions department.

The use of nails, tack, stickers etc. is prohibited.

EMPLOYEES ON – THE – JOB TRAINING

In Faisalabad Serena Hotel (FSH) immense stress is given on the training of the

employees. The process of training an employee does not end with probationary period but it

continues during the whole service of the employee.

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The hotel has a training g room which is administrated by the system training

manager. The training room is equipped with modern teaching technique such as audio,

video, TV, projector. It has sitting capacity of around 50 seats. Apart from that the training

room also has a small library. The library contains the books about hotel management,

general management and personality development. These books are issued to the employees

on request.

Training classes for each department are arranged regularly and headed by chief

executive or a senior member of the department. The schedule of the classes is displayed on

the notice board. English classes are also arranging to enhance the spoken capability of the

employees. The training classes are also essential for senior executive because annual

increment is not based only on job well done but also on learning abilities and enthusiasm to

teach others.

At the end of training programme an exam is conducted to assess the learning of

employees. During the training programme it is the responsibility of the employees to attend

and participate I all classes whether it is about hotel rules and regulation about his job or

English classes. It is also important that the employees should participate in the classes and

pass his exam.

VARIOUS SERVICES FOR GUESTS

The guests have access to all kinds of services and facilities so as to make their stay,

not only comfortable, but also a memorable one. The FSH is not simply all that. It has every

intention of offering its guests services and facilities that they expect of genuine first class

hotels, services which have not yet been made available on this scale before in Pakistan.

Besides these the following services and facilities are available to our guests:

Laundry/Dry Cleaning

Jewelry and Gem shops

Travel Desk

Parking

Baby Sitting

Authorized Money Changers

Airline Offices

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In-House Doctor

Florist

Bookstore

Business Centre

Pharmacy

24 Hour Room Service

Car Rental

SERVICES CLASSIFICATIONS

Services are related with the intangible products and differ from the tangible products.

Services are classified into the different groups. Classification is important it gives us a great

understanding of the values that we provide to our customers. This understanding about

calcification of services provides the insight needed to create effective marketing strategies.

The FSH has classified its services on:

1) Profit Objective

2) Customer Type

3) Labor and Equipment needs

4) Customer Contact

PROFIT OBJECTIVE

A major distinction among service providers is whether or not they seek financial

profit. Hotel industry makes strategic marketing decisions based on potential return on

investment.

The basis purpose of Faisalabad Serena Hotel in the hotel industry is to achieve

maximum profit out of the business. The location, services, equipment and target potential

groups of the hotel are all chosen with an eye to making a profit.

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CONSUMER TYPE

Service firms have both consumers and organizational customers. The services are

identical in some cases, but different marketing strategies are required for the different type

of customers. The FSH has two types of clients:

The Regular Corporate Client

The General Client

The seventy five percent (75%) of the hotel's business is depend on the corporate

client. Many large organizations have a contact with the hotel and their clients regularly avail

the services of the hotel. Seventy percent (70%) of the tourists are regular corporate client of

the hotel. They come here and avail the services for the business purposes or for recreation.

There is another type of customers that is the general clients of the hotel. These customers

come here for the recreation. So the hotel has a different marketing strategies for the

corporate client and different for the general client.

LABOR BASED SERVICES

Labor - based services are those services that are delivered by the people and are

primarily concerned with the activities of the people. The FSH provides services to its

customers directly through the people. They have a direct marketing with their customers.

They send their personnel in different organizations and they give them information about the

new service.

EQUIPMENT BASED SERVICE

Equipment based services are those that are delivered by equipment Pearl Continental

also use the equipment based services. They inform the customers about the services through

telephone, fax, E - mail, computers etc.

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SWOT ANALYSIS OF

FAISALABAD SERENA HOTEL

STRENGTHS

Serena Hotel is one of the Best Chain of hotels in Pakistan. They have five branches

in Pakistan and 20 branches outside Pakistan and it is the first five star hotels in Islamabad.

Following are the strengths of Islamabad Serena hotel: Internal pros or plus points of

Faisalabad Serena Hotel (FSH) are as follows:

Largest Chain – Serena Hotel is the largest hotel chain in Pakistan.

Largest Facilities – The FSH has largest number of rooms and banquet halls. No other hotel

has such large facilities in this great city.

Largest Car Parking – The FSH has largest parking area than any other hotel in the city of

Faisalabad.

Quality Products – The FSH is the symbol of quality with respect to it’s offering i.e.

restaurants, hotels, motes, etc.

Excellent Services – The Faisalabad Serena Hotel (FSH) aims at providing excellent

services to all type of customers.

Competitive Advantages – The FSH has an edge over its competitor’s i.e.; it provides

executive club services.

Financial Strength – Faisalabad Serena Hotel is financially strong hotel because in the

current economic conditions it is maintaining its position because of financial strength.

Favorable Reputation / Image – The FSH has captured the favorable image in the mind of

the customers.

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Innovation / Creativity – After every 6 month, the FSH launches new offering which is very

stylish and eye catching.

Organized Management – The FSH management is highly qualified, competent and

organized.

Services with Latest Tech – The FSH has its control room in which the rooms and halls

temperature is controlled and maintained according to the environment and customer’s

requirement.

WEAKNESSES

A good and well- reputed organization should overcome its weaknesses, in this way

company can achieve its goals. So within the context of Serena hotel we come to know the

following weaknesses. Internal cons or negative points of the Faisalabad Serena Hotel (FSH)

are as follows:

Laundry Shop - The laundry shop in hotel is not according to the standard which offering in

the FSH and others hotels.

High Prices – The FSH charges very high prices for all of its services especially room

facility and most of the people in Pakistan can’t afford it.

Low Incentives – The FSH offers low incentives to its customers, so fails to attract the

middle class people.

OPPORTUNITIES

The opportunities in any organization are the predictions of future of this

organization. The external pros or plus points of an organization.

Expand Product Line – The FSH can expand their product line by offering other facilities

like home delivery of food etc.

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Entrance into New Markets – The FSH can enter the new market by opening its branches

in various up – grooming cities of Pakistan.

Attraction of Tourists – The Faisalabad Serena Hotel (FSH) can attract a large number of

tourists by advertising in international magazines and journals.

Diversify to the Board Risk – The FSH should diversify their product, production and

services as were because you must not rely heavily and put your resources on one product.

Much Improve CRM – The FSH can improve its Customers Relationship Management

(CRM) by providing different incentive plans.

THREATS

Everyone have threats in this world so like us, organizations also have various threats by their

competitors, policies, rules & regulations, etc. the external cons or negative points for FSH

are as follows:

Worst Economic Conditions – the present economic conditions are not favorable for the

growth and flourishment of hotel industry.

Increases in Sales Tax – Sales tax has increased which results in the increased customer

prices and reduced sales level.

Restricted Govt. Policies – There are various restriction imposed by the government

regarding tax payment effects profitability of hotel management.

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SUGGESTIONS AND RECOMMENDATIONS

The electrical and security system should be improved according to new challenges.

The inventory system in food and beverages should be improved.

There should be a health club in this hotel.

The FSH should attract quality brand in shopping Mall.

The FSH should improve communication and coordination among all hotels.

Company policies shall be clearly defined and planned which result in efficient

management and progress over the night.

Balanced rates for rooms and food items shall be charged, keeping in view the other

competitors in local hotel industry like

The management should take steps to control the lobby traffic.

It should increase and improve its food storage facilities.

The management should offer more attractive packages to attract customers in the

hotel restaurants.

The management should improve the incentive plans for employees.

There should be some monetary reward for employee of the month in different

department

CONCLUSION

The Faisalabad Serena Hotel (FSH) organization doesn't maintain and encourages

performance excellence in form of monetary terms. There is a formal performance appraisal

form for all employees, and this is tied to a reward system. It is my view that there are severe

problems with the performance appraisal from in that it is very subjective in nature. Because

of the subjectivity the system can lead to gross errors, and since this is linked to reward

system, the error is not only perpetuated but exaggerated.

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References

- Faisalabad Serena Hotel (FSH)

- Ali Burhan’s visits to FSH personally

- Islamabad Serena Hotel (ISH)

- Freeintrnship.com

- Scrib.com

- Google Search Engine

- Microsoft Encarta ® 2010

- Mr. Abdul Mannan Sahni / Loyal Customer of Serena Hotels

- Honorable Teachers

-

The END… ///