Political issues for the business is ensuring all licences required are put into place, this includes selling of alcohol, health and safety – fire exits, supervision of swimming pool, CBR checks, hygiene certificates, different licences for opening and closing times of facilities. Grants and funding is also an issue as government have made several ways to get a hold of funding for businesses, via the banks. “For example, executives evaluating potential mergers or acquisitions must consider antitrust suits and other legal matters, and political issues in addition to financial aspects” (Keeney, 1982).
Economical issues for the business getting a hold of loans from the banks, but a main concern would be interest and inflation rates, after the current economic climate of the recession, causing unnecessary leakages within the finance budgets of the business. “Future implications of alter- natives now being considered should be accounted for in the decision-making process” (Keeney, 1982). Sociological issues for the business is more people are staying at FR’s more and cheaper holidays are making it harder, therefore gathering and analysing data is imperative to success, for the business.
“In any case, the process of obtaining and combining the available information is a difficult task that requires balancing all the pros and cons” (Keeney, 1982). Technological issues for the business are costly when technology advances are made, and systems have to be updated. This involves changing all computer systems, reprogramming, and retraining of staff. “Different individuals, however, have expertise in disciplines such as economics, engineering, and other professions which should be incorporated” (Keeney, 1982).
This can be offered by having use of the internet, and having a website for bookings, and information about the company and what the business is about, and use information systems within the business. Both of the hotels use different strategies, the Royal hotel uses Revenue management and the Walton park hotel uses a Blue ocean strategy. This is defined as “untapped market space, demand, creation and the opportunity for highly profitable growth” (Kim and Mauborgne, 2005).
The hotels agree, the hotel market has changed, as consumers are becoming lazy and are booking rooms later and later. Customer loyalty is no longer a priority for the market, but the internet has also made this change as it is easier to compare prices, and standards. The Royal hotel has large functions and weddings occurring they have to be able to plan about three months in advance especially with the strategy of RM. Both of the management from the hotels attend conferences to help with new suggestions and the running of the business.
For gathering information they use questionnaires which helps to have target market information updated and services can be improved, but Royal hotel says if even though they use questionnaires they are very short answered, and some will give exceptional on very thing which does not help the improvement of the business as they need to have constructive criticism. The research conduct uncovered the target market being C1, C2 and D’s using demographic profiling.
The reason for this is because they are more incline to stay in a non-expensive hotel, with a variety of facilities offered, and also due to Weston-super-mare being central, via the motorway and different transport systems available. “We are well-served by the M5, mainline railway and Bristol International Airport (BIA) and have an efficient and comprehensive public transport network” (North Somerset, 2009). Within the business the consumer continuously needs to have the highest level of service.
“For service organisations the interaction between front-line personnel and the customer is crucial as they aim to create high quality service encounters” (Nickson et al, 2005). When providing a high level service for the target market, everyone is different; therefore the needs are not going to be the same, for each person, “delivering superior customer value and satisfaction are crucial to the competitive edge of a firm” (Kotler and Armstrong, 2000 & Weitz and Jap, 1995).
For example certain aspects will need to be in place within the business for those who have disabilities, young families with baby changing facilities, those who are diabetic. Many different concepts need to be taken into consideration, for different consumers, the more efficient of establishing customers needs then a good reputation can be established very quickly for the business. Deng (2008) states “Customer satisfaction increases customer loyalty, reduces price sensitivity, increases cross-buying and increases positive word of mouth”.
A Blue ocean strategy is a way of breaking away from the industry boundaries, going beyond the known and entering the unknown. “Kim and Mauborgne (2005) state “Blue oceans, in contrast, are defined by untapped market space, demand creation, and the opportunities for highly profitable growth …. Most are created from within red oceans by expanding existing industry boundaries”. This is applied to the business as having a link with the local theatres is a new and innervating idea, as no other hotel provides this type of service. The business is going into an area which has not been explored before.
With this strategy in place for the business, profitability will be more inclined, as the research conducted showed there is a market for it. “Companies that create blue oceans usually reap the benefits without credible challenges for ten to 15 years, as was the case with, Southwest Airlines and CNN. Creators immediately attract customers in large volumes” (Kim and Mauborgne, 2004). Using Porter generics strategies of a focus strategy this interlinks as the blue ocean strategy for the business needs to focus on its consumers and adapt the products and services to meet the target markets requirements.
Using the focus strategy not all consumers are going to want to go to the theatre, therefore using the focus strategy, and opportunities available the business will be able to develop further links with other attractions. “An organisation’s knowledge capabilities determine its effectiveness. As the underlying knowledge processes are highly dynamic, the capabilities used in performing those processes must also be dynamic” (Dawson, 2000).