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The Managerial Functional Approach towards…!
Faisalabad Serena
Hotel
By:
Falcon Group
Group – A
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
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
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.
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.
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.
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".
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.
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)
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.
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.
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
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.
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
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.
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
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.
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.
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.
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.
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.
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.
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.
The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan
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.
The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan
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.
The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan
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.
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.
The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan
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.
The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan
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
The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan
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.
The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan
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.
The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan
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.
The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan
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.
The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan
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.
The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan
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.
The Managerial Functional Approach towards Faisalabad Serena Hotel…! Prepared by: Ali Burhan / Ali Raza / Imran Hussain / Usama Awan
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… ///