Jonson And Scoles
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Table of contents:
1) Resources
The physical resources
The financial resources
The human resources
Unique resources
2) Competences
3) Strategic consequences
4) Main strength & weaknesses
Strengths
Weaknesses
5) Competitive advantage
6) Bibliography
1) Resources Camaron Hotel
The physical resources:
The Cameron Hotel has got thirteen floors with 340 bedrooms. It has different room types: one presidential suite, 30 executive suites with street view and 60 executive rooms with a historic court yard view. The other rooms of the hotel are standard business rooms. In general most of the hotel rooms are outdated. All the rooms are air-conditioned and has a lot of facilities which are expected from a 3-star hotel. During World War two the hotel was nearly destroyed therefore it was fully renovated after the war. It was turned into an office building and in the 1960`s it became a hotel again. There is one restaurant the “Fragrant Harbour” with 175 seats, one bar named “Highlands”, a cocktail lounge, a coffee shop/boutique which is franchised by Starbucks and two banqueting rooms which are having together 174 seats. The restaurant and banqueting rooms are having enough seats according to the current occupancy percentage of 54%. If the F&B facilities would be used by all hotel guests when there is 100% occupancy and extra walk-ins for the restaurant, these facilities would not be sufficient enough.
The hotel has only two meeting/conference rooms on the second floor. This is not enough when one considers 53% of the guests are business people. There is a parking space nearby for nearly 100 cars and this is also not enough when looking at the amount of hotel rooms. The hotel has a good accessibility and for the guests there is shuttle bus available from and to the airport. Furthermore, there is one fitness centre, laundry facilities, dry cleaning and broadband internet access.
The Financial resources:
Important stakeholders of the Cameron Hotel are the Henderson Land Development Company Limited group and the Henderson Investment Limited group. The yearly capital contribution of the Henderson group of 2006 is about HKD 10 million is used. The cash of the Cameron Hotel is important, because it will show how the company will be able to pay their liabilities. Over the year 2006 there has been an overall decrease in cash of HKD 162.806. There is a relatively high accounts receivable turnover over the year 2006 of 29,41% which means that this percentage of the revenue is not cash on hand. This means that the hotel is collecting their debt quickly and in a good manner, but it also shows that there is less money on hand for reinvesting. Looking at the overall financial status one can conclude that the Cameron Hotel is doing bad business. The hotel stays alive due to the Henderson group and the Tenant. One of the weak points of the Cameron Hotel is that all the assets are leased from the Henderson group, which results into a low value of assets on the Cameron balance. Concluding to the Horwath the main high costs are from: Beverage (84%), Administrative and general (180%), Marketing (96%), Property (77%) and Rent and lease (679%)*.
* = The difference in percentage of the Camaron according to the Horwath.
The costs of employees are high, so this has to be reduced, the banquet staff has the most less productivity per person ( HKD 24.690). The revpar of the Camaron in 2006 is HKD 194 what should be HKD 403 according to Horwath so it is way to low for a hotel in Hong Kong. The retained earnings are in minus for a long time already which means the hotel is bankrupt on paper. The Henderson group and the Tenant keeps the Camaron hotel in Balance.
The Human resources:
The HRM department of the Cameron hotel is organized by the Miramar Group.
The management team of the hotel exists out of: a General manager, an Executive assistant, a Meeting manager, a Housekeeping manager, a Front Office manager, a Conference manager, a Sales & Marketing manager, a Room Division manager and four Food & Beverage managers.
The hotel has a very international company culture. The managers are both males and females and are coming from different countries. The RD manager meets on daily bases with the managers from his departments. The F&B managers meet on daily basis as well. All the department managers have weekly meeting with the GM and the EA.
The Miramar Group is in charge of recruiting other qualified employees. New staff members are recruited almost daily for the Housekeeping and food server department. This shows that the hotel has a high staff turnover. The work procedures in the Cameron hotel are not standardized. Besides that the ”simple” jobs are poor paid. The Cameron does not seem to have a good overview.
For the Cameron Hotel two organizational structures can be taken in consideration; the multidivisional structure and the functional structure. On this moment the Cameron hotel makes mostly use of the multidivisional structure but for the future it’s better to continue whit the functional structure.
The multidivisional structure: The Miramar Group has a very big control on the Cameron Hotel. The group decides which strategy the Cameron Hotel has to use. The hotel has one General Manager who has the overview of all the departments and he leads all the managers of the departments.
Functional structure: In the Cameron Hotel all the functions are divided. There is one General Manager and every department has its own manager. The managers are having weekly meeting with the GM, who has to report to the Miramar Group. The Rooms Division manager is having daily meetings with the Housekeeping manager, the Front Office manager, the Conference manager and the Sales & Marketing manager. The four Food & Beverage managers are having daily meetings to