Strategic Business Planning Case Study

An award winning resort 30 bedroom 5 Star property, located on the outskirts of a historic town was on a steady downturn of business. More recently with catastrophic weather tragedies, business from the feeder destination was practically non-existent. The management structure was weak and there were no strong financial procedures in place. Marketing was outdated, with no marketing plans been written and no innovation as to sourcing new markets to replace lost business.

We carried out a site visit to the property and completed an extensive needs analysis. It was identified that a strong structure needed to be put in place which clearly outlined each of the senior management’s roles and responsibilities. Targets needed to be set for each aspect of the business. In addition training was delivered in the area of rooms management, rate management and also financial reporting. A comprehensive study of the nearby competition was drawn up and studied as to how they were performing and dealing with business downturns. In addition, similar locations were sought and properties with synergies sought out within the locations. These were studied as to how they had re-engineered their business after major changes in business patterns. Finally, national and global industry trends were evaluated, and ideas sought to re-engineer the business model for the property.

A clear more defined management structure is now in place in the property. A team of three people was created and each were appointed to senior positions i.e. Operations (F & B), Rooms Division and Financial Control. These people were trained in managing their areas efficiently and also in communication methods to their staff. They are responsible for the property in the owners absence, which is 2 weeks out of every four. Each of them were given a clear detail as to their roles and responsibilities within the organisation, with each person knowing exactly what they are responsible for and how to deliver the results.

A marketing plan was drawn, up which included the use of new technologies such as email and web marketing. Analysis of competition both within the location and outside it was carried out and a new more competitive pricing policy was implemented. New ways of bringing business were explored and we embarked on retaining a SPA consultancy, on behalf of the owners, to carry out a study as to the viability of a Spa in the location. The results of this study were overwhelmingly in favour of developing a unique destination Spa. Plans are underway currently to develop this new facility which will bring year round business to the property and increase profitability by over 150%.

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