Madison Hotel Ltd, Cork: Innovation Plan

Module: MG3012 Project Group: Zuzana Nemesova Kate Roycroft Christina Ryan Adelle Swanton 105778573 105367735 105469911 105483280

This project case is a fictional case

Background
Madison Hotel Ltd is an Irish hotel based on the outskirts of Cork City. It was established in 2002 and has grown over the years to achieve a market share of 7%. The segment of the market Madison is attracting is 30-50 year old Irish professionalsthis is seen from the services that Madison provides: business conferences and weddings, which attract middle-upper class professionals. Madison is hoping to break into a wider segment by attracting families and people who go on a break to relax. To attract this larger segment we will need to update or add new facilities. Currently Madison employs 150 people and, if needed, will be able to employ more. The company has recently showed a turnover of 1200K and has decided to put a plan together for the next 3 years to improve this turnover by expanding our customer base.

Organisation
Name: Plan Title: Vision Statement: Madison Hotel ltd. Madison Innovation Plan (2007-2009) To attract a larger customer base by offering a wider range of services than any other 4 star hotel in Cork County Madison Hotel ltd. is customer driven, high quality service provider whose main focus is on communication between the company and our customers and ensuring their experience is as individual and unique as possible. At Madison your satisfaction is always quaranteed. [Link] [Link]

Mission Statement:

Benchmark:

Competitors
Jurys Hotel Maryborough House Hotel Clarion Hotel Rochestown Park Hotel

Jurys Cork Hotel, Western Road, Cork

Newest 4 star hotel in Cork Riverside backdrop and city centre location

Floor dedicated for meeting rooms and a business centre with state of the art I.T. facilities Leisure Centre with 18 metre swimming pool Bistro and Bar Complimentary high speed internet access Executive rooms on offer for 40 more. These rooms come with a large flat screen TV, tea, coffee, continental breakfast, newspaper and full turn down service Christmas and New Years deals Near University College Cork Free parking Library available Opening soon-Spa with 4 treatment rooms, nail bar and relaxation room

Maryborough House Hotel, Douglas, Cork

Located in a quiet suburb in Cork and just minutes from the city Renovated 18th Century house 79 rooms with views of gardens from some rooms Spa rooms available-includes a jacuzzi bath and contempory styling Broadband and in-house movie service in every room Spa with relaxation pool, sauna, steam room and massages Techno gym with 18 metre swimming pool, in-house dietician and nutritionist Designated wedding services, popular hotel for weddings. Bridal suite available 11 conference rooms with state of the art audio-visual facilities Conference technician and event co-ordinator available Restaurant and caf-bar Weekend rates available Award winning hotel

The Clarion Hotel, Lapps Quay, Cork

Located in the centre of Cork City - immediate advantage Close to the business, shopping and entertainment areas. 191 non-smoking bedrooms, 6 apartments also available. Some with views of the River Lee. Sleep Therapy program available in suites 6 superb meeting rooms are available for business conferences. Health & Fitness Club and Spa with 18 metre swimming pool and 5 treatment rooms Special packages available in the run up to Christmas. Clarion gift card is also available so people can buy weekends away at the Clarion for their families and friends. Phrases such as just because its business doesnt mean it cant be pleasure are used to entice the customer. A Clarion Kids Programme that involves a babysitting service, DVD player hire and a kids library is available for families Wedding services are also available. They cater for parties of 250 people and for any special dietary needs. 2 different restaurants and a caf within the hotel Like Madison, the Clarion is relatively new (2005) and targets the same market.

Rochestown Park Hotel, Rochestown Road, Douglas, Cork

The Rochestown Park Hotel is located in Rochestown which is on the Southside of Cork city. It is located close to the ferry port and the airport. There is a restaurant at the front of the hotel which offers a wide range of dishes including local dishes. Food is also served at the bar. Rooms vary in size and all now contain complimentary wireless broadband access. Location details 5 kms to city centre

5 kms to the nearest airport (cork) 6 km to the nearest station (cork) 5 minute walk to the nearest bus stop Close to the trade fair ground (on site facilities) Hotel Facilities Indoor pool Baby sitting Beauty parlour Car parking (Payable to hotel) Coach parking Disabled facilities Early check-in Gymnasium Laundry facilities Lifts Lobby Porterage Room Service Sauna Solarium

Room Facilities Air conditioning Connection for laptop Direct dial phone Hairdryer Internet via television Radio Satellite television Television Trouser press Voltage

Tasks
Keep up with Competitors As Madison is falling behind its competitors in such areas as offering leisure and outdoor dinning facilities for its customers, it is of primary importance to update and implement such facilities.

Improvement of IT facilities As Madison is located in an industrial park, one of its main tasks is to ensure it offers an upto-date internet service to its business customers.

Extend advertising As part of widening Madisons customer base, Madison will look to advertise abroad. In all, Madison is looking to extend its market base and be perceived as a more modern and well known hotel in Cork.

Environmental Analysis
S.W.O.T analysis A SWOT Analysis was undertaken to see how the hotel is performing in its sector of the industry. One of the main strengths seen is the reputation of the hotel to hold business and wedding functions. It is possible that some other competitors may be looking at this area also (see competitor section). A weakness noted that may need immediate discussion with management is the lack of child services and relaxation facilities, which other competitors already have. To improve market share, more will need to be done in these areas. A broader market share is an opportunity available for Madison; this was seen also under the heading of Weaknesses. In modern Ireland a threat to Madison and all hotels within the country is that family holidays abroad are becoming more popular as they can be cheaper. Irish weather may also be a reason here so promotion abroad may be needed to entice foreign customers.

SWOT Statements
Group Strengths Question What are your organisations advantages? What are your core competencies? Where are you making the most contribution? What are you doing well? Weaknesses What areas are you avoiding? Where do you lack resources? What are you doing poorly? Where are you lacking contribution? What needs improvement? Opportunities Any trends in similar organisations? New technologies? New customer possibilities? New needs of customers (internal or external)? Threats Obstacles to overcome? Competiting organisations? Negative economic conditions? Government regulation? Vulnerabilities? Title Location: Near golf course, near city. Well known, reliable name Good relationship with customers, Hosted many weddings and conferences Business meetings, Wedding packages 100% guest satisfaction, offer many good services Location is a bit far out of the city and the airport for some customers Child services and relaxation facilities Not filling rooms on low season and midweek On new ideas General services, website and upgrading IT facilities Services - culture, trips, dancing Improve check-in times. Younger customers and young families by adding services Relaxation, try to get people to want a peaceful stay outside the city People holidaying abroad instead of Ireland, keeping 4 stars Other 4-star hotels, other Co. Cork hotels, B & B's Rising prices on general items means more expensive Pollution regulations-recycling etc Relying too much on business and wedding functions Status :-) :-) :-) :-( :-( :-( :-( :-( :-( :-( :-) :-( :-(

PEST analysis Political factors affecting Madison include areas such as tax policy, employment laws, environmental regulations, and regulations relating to the importing of supplies. Also company law and laws relating to building and planning. Economic factors are changing interest rates and the effect that would have on borrowings. Exchange rates affect the company to a lesser extent as most supplies are from the EU however the weakening of the Euro against Sterling has negative impact relating to supplies, but is positive in that it is cheaper for people from the UK to stay

in Ireland. Rising inflation rates mean prices must be increased which could impact negatively on business. Also a slow down in economic growth could mean a lot less people will be able to afford to stay in a hotel. Social factors affecting Madison are peoples attitudes towards health. More and more people are looking for the healthier option including spas and gymnasiums of high standard as well healthier and more varied food in our restaurant. With an ageing population the hotel must be friendly to all ages young and old. As there is much choice out there we must be the best with regards to socio-cultural changes. Also press attitudes to Madison are vital as the media is so influential nowadays. Technological factors are very important. The use of video conferencing reduces the need for hotel conferences. Communications within the hotel are now much cheaper. Also the internet and EDI has made contact with suppliers much more efficient.

PEST
Political Tax laws Employment regulations Planning law Environmental regulations Health and safety laws Company law Economic Interest rates Exchange rates Inflation rates Down turn in the economy Attitudes 2 health Aging population Press influence Email Internet bookings EDI Faster payroll systems Intranet within the hotel

Social

Technological

Porters 5 forces

Supplier Power Increase in costs of supplier inputs means an increase in our cost of inputs. The size of the supplier also has an affect as larger suppliers or those which have a monopoly have the ability to charge higher prices. Also if goods are in short supply this will drive prices up.

Barriers to entry If customers are loyal to a particular brand it is not likely that they will switch over very readily. This can create problems as more established hotels will have more loyal customers. Another barrier to entry is economies of scale; larger hotels can buy in bulk giving them a price advantage. There are also very large start-up costs associated with setting up a hotel with huge capital requirements. Government policy can also be a barrier as health and safety standards must be met.

Threat of substitutes Better price performance of competitors can mean a loss of customers. Also if competitors offer a better range and quality of service it can have the same effect. If competitors are more conveniently located this can also affect business.

Buyer Power Buyers can be quite price sensitive so it is important to set the price where it is reasonable to our clientele. If the name of the hotel is unknown then customers will tend to go elsewhere. This is why advertising is so important and why our website must be kept up to date.

Degree of Rivalry Industry concentration creates a lot of rivalry between competitors. As there are many hotels in Cork, the competition is quite intense. Also as there is a slow down in the tourism industry in Ireland there is much fight for market share. To compete we must ensure that our brand is well known and we have a unique service to offer our customers.

Porters 5 Forces
Group Supplier power Increase in costs of supplier inputs leading to increase in our costs Size of supplier- bigger supplier does not need us Availability of supplies Barriers to entry Customer loyalty Capital requirements Economies of scale Cost advantage Government policy Threat of substitutes Better price performance of competitors More convenient location Better quality of service Buyer Power Price sensitivity Unknown brand- customers go elsewhere Substitutes available Buyer incentives Buyer information- update website Degree of rivalry Industry concentration Slow growth- more competition Brand identity Exit barriers

Stakeholders Customers: customers require a quality service that is both safe and reliable as well as enjoyable. Environment: recycling of waste from the kitchen and bar is essential for the environment. This includes glass, plastic etc. also the use of environmentally friendly cleaning agents is necessary. We are also considering the installation of solar panels in our hotel. Government: All tax legislation must be obeyed and taxes paid in full. It is also important that employees are all checked out to make sure they are legal. All health and safety and laws relating to alcohol and closing times must also be obeyed. Shareholders: requirements for shareholders are to try to generate as much of a profit as possible to generate a reasonable dividend while also keeping the business running well and keeping shareholders informed of any recent developments within the hotel. Employees: employees must be safe in the workplace, must be paid well and not exploited in any way. All legislation regarding employees is vital to the business.

Suppliers: ensure a good relationship with suppliers and ensure that orders are placed on time to avoid any disputes. Banks/lending institutions: all loan repayments must be made on time to ensure a good relationship with the bank and to maintain good credit rating.

Team
Our initial innovation plan was developed by senior management headed by the general manager. The need to innovate was suggested by various departments within the organization. After various meetings, teams were formed to decide what improvements can be made and how to implement it and what in our organization is missing. Weekly meetings were arranged on Monday mornings to discuss each departmental plans, ideas, and problems. Different groups met pending on departments being discussed. When ideas and problems were progressed further into projects, extra meetings were planned as needed. The table illustrates senior members of our organization and the position they hold.

Individuals
Name Zuzana Nemesova Adelle Swanton Christina Ryan James Butler Kate Roycroft John Burns Deirdre Murphy Chris Curtain Orlaith St. Ledger Pablo Constantez Pawel Wojtek Susan Crawford Job Title General Manager Deputy Manager Marketing Manager Finance Manager HR Manager Executive Chef Bar Manager Restaurant Manager Receptionist Manager Accomodation Manager Maintance Manager Spa Manager

Organisational Chart
It shows the basic structure of our organization. All managers are supported by members of their own department where together as a team progress in the innovation plan. When idea of building spa and leisure centre was progress further into our project, there was a need to expand organisational chart by one new member of the team Spa manager and her team.

Benchmarks
The Radisson SAS Hotel group was chosen because of its international status, its reputation and because it is a well known brand. The Radisson group has a good percentage of the market share both in Ireland and abroad. They pride themselves on the quality of each customers stay and experience. They are permanently coming up with new projects to entice new customers and to expand their market share. The staff is trained to be interested in each customers experience and to ensure each guest has the best stay possible. In the hotel business they are one of the main competitors to watch out for.

Requirements
In our innovation plan we have to compromise the requirements of our stakeholders and work together to ensure better efficiency and effectiveness. This is the reason why we take our stakeholders seriously and our innovation plan included their needs. One of the biggest challenges is to provide better services for our customers e.g. promotional prices and packages, offering wedding planner service and restaurant above the expectation. Other key stakeholders include our employees. To reduce staff turnover, we want to keep our staff happy and to achieve that we want to offer them rewards for excellence performance and further training and personal development of their careers. We want to make sure that our suppliers stay happy, too so we want to improve our communication with our suppliers which is necessary for our new never out of stock JIT system.

Requirements
Group Customer Customer Customer Customer Employee Employee Employee Shareholders Shareholders Shareholders Government Government Government Supplier Title Offering "Yes I Can" service Offering wedding planner Restaurant above the expectation Promotional prices and travel packages Rewards for exellent performance Creating hassle-free environment Continuous training and improvement Pay-out of dividends Maximize annual profits Attain larger customer base Follow HACCAP regulations Follow health and safety regulations Shares issued up to authorised number Improved communication Responsible Kate Roycroft Christina Ryan John Burns Christina Ryan Kate Roycroft Kate Roycroft Kate Roycroft Zuzana Nemesova Zuzana Nemesova Adelle Swanton John Burns Chris Curtain Zuzana Nemesova Deirdre Murphy Status Completed Not Started In Progress In Progress Completed Completed In Progress Not Started In Progress In Progress Completed Completed Not Started Not Started

Objectives
Our main objectives were divided into 5 strategic thrusts: Quality, Planning, Services and Technology. Some of our objectives were already started and some of them are awaiting their approval. Competition is tough and especially with the market slowing down, it is necessary to follow these objectives to achieve success.

Objectives
Group Quality Title Room cleaning efficiency Enhance education and training Ensure no out of stock JIT Ensure no out of stock JIT Promotion abroad Add children services - creche, babysitters Add spa and leisure facility Upgrade internet security Upgrade of the hotel website Continuous improvement of the facility Continuous improvement of the facility Increase capital by issuing more shares Increase annual growth in revenue Responsible Pablo Constansez Outsourced John Burns Deirdre Murphy Christina Ryan Christina Ryan Status Not Started In Progress In Progress Not Started In Progress Not Started Not Started Not Started In Progress Not Started Not Started Not Started Not Started

Planning

Services

Technology

Outsourced Outsourced Pawel Wojtek James Butler Zuzana Nemesova Zuzana Nemesova

Finance

Indicators
The indicators table helps to see how the objectives are progressing. The five decided indicators will help to track how the teams responsible are doing in reaching the targets set out. Different time periods have been stated under the unit heading, 2 being measured monthly and 2 being measured yearly. The objectives that will be outsourced have not been given an indicator as the outsourced company will do all calculations in that area and give management updates. There is no indicator for continuous improvement of the facility. This will be hard to judge but will be done by yearly reporting on the hotels facilities.

Indicators
Title Decrease waste in kitchen Increase capital Decrease labour cost by efficient planning Professionalism Gain market share Unit / month / month % % Current 5K 700K 60K 45 7 Target 3K 800K 55K 60 10 Responsible John Burns Zuzana Nemesova Kate Roycroft Kate Roycroft Christina Ryan Status In Progress Not Started In Progress In Progress Not Started

Relationships (Individual v Objectives)

The table shows relationship between key individuals of our organization and the objectives we want to pursue. The red colour symbolizes that these objectives are going to be met by certain individuals whose teams will be there to support and help them with these objectives.

Objectives Increase capital by issuing more shares Continuous improvement of the facility

Job Title General Manager Deputy Manager Marketing Manager Finance Manager HR Manager Executive Chef Bar Manager Restaurant Manager Receptionist Manager Accomodation Manager Maintance Manager

Individual Zuzana Nemesova Adelle Swanton Christina Ryan James Butler Kate Roycroft John Burns Deirdre Murphy Chris Curtain Orlaith St. Ledger Pablo Constantez Pawel Wojtek

Increase annual growth in revenue

Enhance education and training

Upgrade of the hotel website

Ensure no out of stock JIT

Upgrade internet security

Room cleaning efficiency

Promotion abroad

Relationships (Requirements v Objectives)

The table shows relationship between our stakeholders requirements and our key objectives we want to pursue.

Relationships
Objectives Increase capital by issuing more shares Continuous improvement of the facility

Requirements Offering "Yes I Can" service Offering wedding planner Restaurant above the expectation Promotional prices and travel packages Rewards for exellent performance Creating hassle-free environment Continuous training and improvement Pay-out of dividends Maximize annual profits Attain larger customer base Follow HACCAP regulations Follow health and safety regulations Shares issued up to authorised number Improved communication

Increase annual growth in revenue

Enhance education and training

Upgrade of the hotel website

Ensure no out of stock JIT

Upgrade internet security

Room cleaning efficiency

Promotion abroad

Problem Ideas
Madison currently has no outdoor drinking/dining facilities. The smoking ban in Ireland has lead to an increase in the demand for these facilities. An idea brought forward to address this problem was to introduce a beer garden. As all Madisons competitors have done this, Madison want to make it more family orientated by introducing not only a beer garden but a playground also. So, as the parents relax they can keep a close eye on their children playing. To do this we will need to consider space and safety. Energy efficiency. Maintenance manager, Pawel Wojtek, brought forward the idea of implementing solar panels to reduce maintenance costs. Mr. Wojtek also suggested that Madison will commit to a recycling plan. Security. As a lot of Madisons customer base is made up of business personnel from the industrial site, Madison should look to seek tighter security on their internet services to enable customers to go about their daily business without fear of theft. This would, intern, encourage people from the industrial park or elsewhere to stay at Madison as they have safe access to their bank accounts etc. Advances in technology have left us straggling behind our competitors in terms of our website. Online booking should be implemented as soon as possible and our overall website updated.

Problems
Group Reactive Reactive Reactive Reactive Reactive Reactive Proactive Proactive Title Building of the beer garden Building of the beer garden Upgrade internet security Upgrade internet security Update the website Update the website Installing the solar panels Set up recycling facilities Impact Medium Medium High High High High Low Medium Risk 2 2 3 3 3 3 1 5 Priority Medium Medium High High High High Low Medium Start Date 10/06/2007 10/06/2007 07/05/2007 07/05/2007 07/12/2007 07/12/2007 04/12/2007 04/12/2007 Due 10/09/2007 10/09/2007 04/07/2007 04/07/2007 14/02/2007 14/02/2007 20/12/2007 18/01/2008 Responsible Deirdre Murphy Chris Curtain Outsourc ed Zuzana Nemesova Outsourc ed Zuzana Nemesova Pawel Wojtek Pawel Wojtek Status Under Investigation Under Investigation Under Investigation Under Investigation Under Investigation Under Investigation Rejected Under Investigation

New Knowledge Ideas

To keep up with our competitors, it has been suggested throughout management to implement a spa and leisure centre at Madison. This will increase our leisure seeking customer base.

Suggested by management, a main idea for increasing Madisons customer base is to implement a culture night. Targeted at all market segments, Madison could hold weekly cultural events such as ceilis, line-dancing, wine-tasting etc. A survey looking for suggestions from staff showed a wide range of interest in hosting a weekly adult disco. As the nearest nightclub is situated in Cork City so this would attract not only residents but locals in the area also. Madison should try to attract more tourists by using the historical and cultural attractions of Cork. Trips to Blarney Castle and Cobh should be made available, taking the bother of organisation off customers and promoting our mission statement that customer satisfaction is always guaranteed. One of our main competitors Rochestown Park Hotel along with one other hotel hosts the annual Balls for staff, each faculty and the clubs of University College Cork. As the number of students at UCC is an estimated 16,000 there is room for one more hotel to provide this service also. Madison could have an advantage as according to 100 students surveyed both competing hotels have increased their price but lowered their standard.
Ideas
Group Proactive Proactive Proactive Reactive Reactive Title Adding spa and leisure facility Adding spa and leisure facility Creating culture nights Organising tour trips Organising college balls Impact High High Low Medium/Low High Risk 1 1 5 4 2 Priority High High Low Medium Medium Start date 10/09/2007 10/09/2007 02/08/2007 05/10/2007 14/09/2007 Due 04/12/2007 04/12/2007 n/a 05/11/2007 09/08/2007 Responsible Christina Ryan Zuzana Nemesova Christina Ryan Christina Ryan Adelle Swanton Status Under Investigation Under Investigation On Hold Under Investigation Under Investigation

Risk
1. Solar panels require a large investment and are not as reliable as electricity. It is feared that Ireland does not have the climate to provide energy to keep a hotel and possibly leisure facility in operation seven days a week. 2. New playground and beer garden. As Madison is situated in an industrial park there lays a great risk that it would not attract the desired quantity of customers as transport can be of an inconvenience to local families. Also, if Madison fails to broaden its customer base the beer garden and playground will generate little profit as mid-week

customers are made up of people travelling alone for business and other non-family trips. 3. Weekly Culture nights and Discos would probably be held during the week when business is slow. This could have a negative impact on loyal residents who have to be up early for work. Also, this could be very unprofitable in off-peak seasons when there are no tourists to make up numbers. 4. Providing banking security with our internet service might also generate risk. Is such a service available on a LAN network and if so what are the costs? If costs are high is the project worth foreseeing just so business personnel can do more than check their emails? 5. The demand for trips to tourist attractions will decline dramatically in off-peak seasons. Is there enough of a demand at that time to outweigh the cost of providing this service? Do we have the resources to provide this service at peak seasons? 6. By committing to host University balls are we denying our services to other customers? We will have less dates and function facilities for weddings, funerals etc. But as most balls take place mid-week the threat of this happening is slim.

Projects
After reviewing ideas, projects and risks, the management team decided to pursue the following projects: building of the beer garden, building of the playground, upgrade internet security, update the website, set up recycling facilities, adding spa and leisure facility, organising college balls, issue more shares, room cleaning efficiency, promotion abroad, education and training. The criteria of these decisions were based on revenue inflows, impact, risk assessment and priority. (See table)

Projects
Group Reactive Reactive Reactive Reactive Reactive Reactive Proactive Proactive Proactive Reactive Reactive Proactive Reactive Proactive Reactive Title Building of the beer garden Building of the beer garden Upgrade internet security Upgrade internet security Update the website Update the website Set up recycling facilities Adding spa and leisure facility Adding spa and leisure facility Organising tour trips Organising college balls Issue more shares Room cleaning efficiency Promotion abroad Education and Training Decision due 10/09/2007 10/09/2007 04/07/2007 04/07/2007 14/02/2007 14/02/2007 18/01/2008 04/12/2007 04/12/2007 05/11/2007 09/08/2007 24/02/2008 12/01/2008 13/04/2007 14/09/2007 Responsible Deirdre Murphy Chris Curtain Outsourced Zuzana Nemesova Outsourced Zuzana Nemesova Pawel Wojtek Christina Ryan Zuzana Nemesova Christina Ryan Adelle Swanton Zuzana Nemesova Pablo Constansez Christina Ryan Kate Roycroft Status Approval as project Approval as project Approval as project Approval as project Implemented as Quickwin Implemented as Quickwin Approval as project Approval as project Approval as project Reject the project Approval as project Approval as project Approval as project Approval as project Approval as project

Projects
Title Building of the beergarden Building of the beergarden Building of the playground Upgrade internet security Upgrade internet security Set up recycling facilities Adding spa and leisure facility Adding spa and leisure facility Organising college balls Issue more shares Room cleaning efficiency Promotion abroad Education and Training Cost 60K 60K 8K 20K 20K 25K 350K 350K 15.5K 15K 18K 10K 40K Revenue 100K 100K 8K 1K 1K 25K 200K 200K 40.5K 100K 20K 30K 60K Impact High High Low Low Low High High High Medium High Low High High Risk Medium Medium Medium High High Low High High Low High Low High Low Priority Medium Medium Low Medium Medium High High High High High High Medium Medium Start 01/10/2007 01/10/2007 01/10/2007 30/07/2007 30/07/2007 15/02/2008 07/03/2008 07/03/2008 Aug-08 VII 08 07/01/2007 15/09/2007 09/10/2007 Due 14/04/2008 14/04/2008 14/04/2008 30/09/2007 30/09/2007 15/03/2008 Nov-08 Nov-08 XI 08 Dec-08 04/02/2007 04/12/2007 14/03/2008 Responsible %Complete 10 Deirdre Murphy Chris Curtain 10 Pawel Wojtek 10 Outsourced 100 Zuzana Nemesova 100 Pawel Wojtek 0 Christina Ryan 0 Zuzana Nemesova 0 Adelle Swanton 0 Zuzana Nemesova 0 Pablo Constansez 100 Christina Ryan 90 Kate Roycroft 55 Status On Hold On Hold On Hold Completed Completed Not Started Not Started Not Started Not Started Not Started Completed Overdue In Progress

Portfolio
Project one:
SPA AND LEISURE COMPLEX Project Business Plan Team: Zuzana Nemesova Adelle Swanton James Butler Christina Ryan

General Manager Deputy Manager Finance Manager Sales Manager

This team will be responsible for: Seeking planning permission _- General Manager Applying for business loan of 250,000 General and Deputy Manager Researching and choosing contractors available and able General Manager and Maintenance Manager The entire team will work with contractor to approve of building layout and plan Three months before completion 7. Team: Kate Roycroft James Butler

Human Resource Manager Finance Manager

This team will be responsible for overseeing recruitment and payroll budget for the following positions: Area Pool, Gym, Spa Pool, Gym, Spa Pool Gym Spa Job description Manager Cleaner Lifeguard Training coach Masseuse Beauty Therapist Nail Technician 3. Team Christina Ryan James Butler No of Persons Full Time 1 4 2 2 2 2 1 No of Persons Part Time 0 2 3 2 0 1 0

Sales and Marketing Manager Finance Manager

4.

This team will be responsible for advertising, promotion and setting a membership fee. Team

Spa and Leisure Manager Head Beautician Head Masseuse Deputy Manager Maintenance Manager Adelle Swanton Pawel Wojtek

This team will be responsible for : researching and purchasing gym and spa equipment (cost included in hotels expense account) outsourcing and working with an Interior designer deciding on which and what products to stock developing relationship with suppliers and making stock orders training staff preparations for opening

Spa and Leisure Complex

March 2008 Week 2 3 4 April 2008 May 2008 Week Week 2 3 4 1 2 3 June 2008 Week 1 2 3 4 July 2008 Week 2 3 4 August 2008 Week 2 3 4 September 2008 Week 1 2 3 4 October 2008 Week 2 3 4 Nov 2008 Week 1

Tasks
Apply for planning permission Develop a business plan Apply for mortgage Choose contractors Approve of spa plan provided by the contractors Building commences Recruitment of new staff Advertising Promotion Setting a membership fee Researching gym and spa equipment Purchasing gym and spa equipment Hiring Interior designer Works overseen by Interior designer Getting suppliers Training of the new staff Preparations for opening Spa and Leisure Complex Opens

Project Two:
HOSTING COLLEGE BALLS Business Plan 1. Team Christina Ryan John Burns James Butler Chris Curtin Deirdre Murphy Adelle Swanton

Sales and Marketing Manager Executive Chef Finance Manager Restaurant Manager Bar Manager Deputy Manager

This team will be responsible for: developing a package equal in quality but cheaper than competitors contacting with University College Cork and Cork Institute of Technology promoting functions at Madison taking bookings, numbers and securing deposits on functions communicating with student bodies on preferences such as type of desert etc. outsourcing DJ's and door men ensuring staff are available for work

College Balls
Tasks
Set up team to be working on the project Contact UCC and CIT Marketing Team conducts the survey Sales and Finance team come out with the charge price Hotel makes offer to UCC and CIT Taking the bookings Confirm the numbers Decide on food menu Hire the band Set up cloakroom facilities Hire doormen for the night Ball season starts August first 2 August weeks second half September first 2 weeks September second half October first 2 weeks October second half November first 2 weeks

Skills
Name Job Title Zuzana Nemesova General Manager Skills Communication Organisation Leadership Stress-Management Deputy Manager Time Management Numerical Managing Conflict Team Work Marketing Manager Presentation Social and Interactive Organisation Communication Finance Manager Stress-Management Numerical Time Management I.T. HR Manager Managing Conflict Motivational Training Communication Executive Chef Organisation Presentation Stress-Management Leadership Bar Manager Social and Interactive Managing Conflict Punctual Precise Restaurant Manager Organisation Training Stress-Management Reception Manager Numerical Communication Social and Interactive Accomodation Manager Presentation Punctual Motivational Team Work Maintenance Manager I.T. Precise Time Management

Adelle Swanton

Christina Ryan

James Butler

Kate Roycroft

John Burns

Deirdre Murphy

Chris Curtin

Orlaith St. Ledger

Pablo Constantez

Pawel Wojtek

Skills
The skills currently possessed by the team are shown in the table. The team has a wide range of skills in all areas however more training is necessary to achieve our innovation goals. The relationships table shows the skills already possessed by the team in green. Yellow shows the skills that the team members are capable of having with further training. Red shows the skills that certain team members need in order to fulfil our new plans for development of the hotel.

Relationships
Skills Stress-Management Social & Interactive Time Management Managing Conflict

Communication

Organisational

Presentation

Team-Work

Leadership

Motivation

Numerical

Punctual

Individuals Zuzana Nemesova Adelle Swanton Christina Ryan James Butler Kate Roycroft John Burns Deirdre Murphy Chris Curtin Orlaith St. Ledger Pablo Constantez Pawel Wojtek

Skills already acquired Is capable of having this skill Need this skill

Budget for Education and Training (skills)

A budget of 40,000 per year in the planning period was set aside. This was noted earlier in the projects table. The HR Manager, Kate Roycroft, is responsible for the allocation of the amount to training the managers in new personal skills needed for the hotel. This will include both internal and external training programs, which will be outsourced to a training company within the area. Time will be set aside for each department to ensure they can participate in external training, travel will be provided. Financial management and staff will be trained in new accounting methods and will sit exams. All chefs will be trained to learn the latest food trends. All top management will be trained to learn updated management techniques. The results from the training will be shown by having better equipped and more knowledgeable staff.

Training

Precise

I.T.

Feasibility of the projects

Title Building of the beergarden Building of the beergarden Building of the playground Upgrade internet security Upgrade internet security Set up recycling facilities Adding spa and leisure facility Adding spa and leisure facility Organising college balls Issue more shares Room cleaning efficiency Promotion abroad Education and Training Employee availability Employee skillbase Resources Impact High High Low Low Low High High High Medium High Low High High Risk Medium Medium Medium High High Low High High Low High Low High Low Priority Medium Medium Low Medium Medium High High High High High High Medium Medium Responsible Deirdre Murphy Chris Curtain Pawel Wojtek Outsourced Zuzana Nemesova Pawel Wojtek Christina Ryan Zuzana Nemesova Adelle Swanton Zuzana Nemesova Pablo Constansez Christina Ryan Kate Roycroft Status On Hold On Hold On Hold Implemented Implemented Approved to implement Approved to implement Approved to implement Approved to implement Approved to implement Approved to implement On Hold Approved to implement

Feasible Unfeasible Feasibility achieved through further training

30/06/2008 Reassessment of Project Status after 6 month

In revisiting the portfolio of projects, it has been discovered that some projects are taking longer than expected. Due to unforeseen weather and supplier circumstances our spa and leisure complex project has been progressing slower than expected (approximately 3 months behind schedule). Due to these matters of inconveniences, the project has accumulated 30,000 extra in labour costs. Even though four of our projects have been completed on time, our recycling project is overdue, due to supplier constraints. It is estimated the project shall be completed by the end of July 2008. Promotion abroad, which was overdue six months ago at the last evaluation has since been completed. Due to its underestimated success the project was extended for a further six months which has, also, since been completed. The beer garden and playground are going to remain on hold until due to budget constraints brought on by the construction of the new spa and leisure complex.

Reassessment of the projects

Title Building of the beer garden Building of the beer garden Building of the playground Upgrade internet security Upgrade internet security Set up recycling facilities Adding spa and leisure facility Adding spa and leisure facility Organising college balls Issue more shares Room cleaning efficiency Promotion abroad Educ ation and Training Cost 60K 60K 8K 20K 20K 25K 380K 380K 15.5K 15K 18K 20K 40K Revenue 100K 100K 8K 1K 1K 25K 200K 200K 40.5K 100K 20K 60K 60K Impact High High Low Low Low High High High Medium High Low High High Risk Medium Medium Medium High High Low High High Low High Low High Low Priority Medium Medium Low Medium Medium High High High High High High Medium Medium Start 01/10/2007 01/10/2007 01/10/2007 30/07/2007 30/07/2007 15/02/2008 07/03/2008 07/03/2008 Aug-08 VII 08 07/01/2007 15/09/2007 09/10/2007 Due n/a n/a n/a 30/09/2007 30/09/2007 27/07/2008 II.08 II.08 Nov-08 XII.08 04/02/2007 04/06/2008 04/03/2008 Responsible %Complete Status Deirdre Murphy 10 On Hold Chris Curtain 10 On Hold Pawel Wojtek 10 On Hold Outsourced 100 Completed Zuzana Nemesova 100 Completed Pawel Wojtek 80 Overdue Christina Ryan 70 Overdue Zuzana Nemesova 70 Overdue Adelle Swanton 0 Not Started Zuzana Nemesova 0 Not Started Pablo Constansez 100 Completed Christina Ryan 100 Completed Kate Roycroft 100 Completed

Relationships (Objectives v Projects)

The table shows relationship between our key objectives and the project we developed to support these objectives. The red colour symbolizes that objective and project was met and achieved.

Relationships
Projects Adding spa and leisure facility

Building of the beergarden

Building of the playground

Upgrade internet security

Room cleaning efficiency

Set up recycling facilities

Organising college balls

Objectives Room cleaning efficiency Enhance education and training Ensure no out of stock JIT Promotion abroad Add children services - creche, babysitters Add spa and leisure facility Upgrade internet security Upgrade of the hotel website Continuous improvement of the facility Increase capital by issuing more shares Increase annual growth in revenue

Achieved

Balanced Scorecard
The balanced scorecard table shows the progress that has been made in the last six months i.e. since the last time the progress of the projects was evaluated. It shows the original objectives in the objectives column and shows how they are measured in the indicators column. As is clear from the table much of the objectives are close to being met but are not 100% on target.

Indicator Customer satisfaction Professionalism Gain market share Decrease waste Customer satisfaction Customer satisfaction Customer satisfaction Gain market share n/a Increase capital Gain market share

Target 90% 60% 10% 3K 80% 100% 70% 10% n/a 800 10%

Current 75% 45% 7% 5K 0% 0% 60% 7% n/a 700K 7%

Status Completed Completed Completed Completed Completed Not Started Completed Completed In Progress Not Started In Progress

Education and Training

Update the website

Issue more shares

Promotion abroad

Revisited Requirements
Group Customer Customer Customer Customer Employee Employee Employee Shareholders Shareholders Shareholders Government Government Government Supplier Title Offering "Yes I Can" service Offering wedding planner Restaurant above the expectation Promotional prices and travel packages Rewards for exellent performance Creating hassle-free environment Continuous training and improvement Pay-out of dividends Maximize annual profits Attain larger customer base Follow HACCAP regulations Follow health and safety regulations Shares issued up to authorised number Improved communication Responsible Kate Roycroft Christina Ryan John Burns Christina Ryan Kate Roycroft Kate Roycroft Kate Roycroft Zuzana Nemesova Zuzana Nemesova Adelle Swanton John Burns Chris Curtain Zuzana Nemesova Deirdre Murphy Status Completed Completed Ongoing Completed Completed Completed Completed Not started Ongoing Ongoing Completed Completed Not started Ongoing

Revisited Objectives
Group Quality Title Room cleaning efficiency Enhance education and training Ensure no out of stock JIT Ensure no out of stock JIT Promotion abroad Add children services - creche, babysitters Add spa and leisure facility Upgrade internet security Upgrade of the hotel website Continuous improvement of the facility Continuous improvement of the facility Increase capital by issuing more shares Increase annual growth in revenue Responsible Pablo Constansez Outsourced John Burns Deirdre Murphy Christina Ryan Christina Ryan Status Completed Completed Completed Completed Completed Not started Ongoing Completed Completed Ongoing Ongoing Not started Ongoing

Planning

Services

Technology

Outsourced Outsourced Pawel Wojtek James Butler Zuzana Nemesova Zuzana Nemesova

Finance

Final Report
As Madison is a new enterprise, ideas are plentiful and there is a lot of enthusiasm to embark upon an array of new projects. It seems that Madison exceeded its capacity of resources and took on a portfolio of projects that was, in practice, impossible to complete. It was decided after revisiting the portfolio that some projects should be put on hold and some should be abandoned altogether. This decision took pressure off the management teams who had been involved in many projects and meant that all undertaken projects would be given the full attention and resources needed. Consequently projects would then be more likely to succeed and fewer resources would be wasted. The Beer Garden and Playground project was put on hold as it was costly and not as high a priority as other projects such as the Spa and Leisure Complex. The former is a development that will potentially have high priority in the future but, for now, will remain on hold. The upgrading of internet security has been highly welcomed by business people staying in the hotel. Security of the internet, though, is limited due to technology constraints in the market. It proved a cumbersome project to complete. We currently supply a LAN (Local Area Network) to our customers and in order to make it secure for banking transactions we would have to implement a password protected service to each individual user. The project has been discarded as impractical. Upgrading the website of Madison has resulted in an increase in online customer bookings. This has been accredited to our new booking format, a system with improved reliability and accessibility. It has helped Madison to improve its market share by advertising more of its products and services. People are now becoming more aware of Madison than ever before. The possible introduction of solar panels to the hotel was abandoned after thorough investigation and research. At present, Madison is seeking to consolidate its position in a demanding market and it was felt that reliance on relatively new technology in favour of traditional sources of energy may be a risk not worth taking. The Irish climate was also considered a factor detrimental to installation because of its unreliability, frequent precipitation and cloudy, overcast conditions. However, as a company Madison is aware of its environmental responsibilities. Hence, the project is definitely something to look at in the future as typical solar contributions to water heating systems can range between

30% and 60% and can have paybacks in the region of 6-10 years1. With increased costs and growing environmental concerns, energy efficiency has never been higher on the business agenda. The recycling facilities are due to be completed shortly. Behaviour changes such as switching printers and photocopiers off at night along with recycling waste will not only save money for Madison (by reducing refuse and energy costs in the long run) it will also contribute to reducing our carbon footprint. Looking to the future, Madison hopes to achieve the Green Filte Award (Environmental Awards Scheme for Hospitality Businesses)2 by 2011. It is hoped that these initiatives will increase staff participation and motivation toward the project. The Spa and Leisure Complex is almost three quarters complete. It is slightly behind its target complete date due to unforeseen and unavoidable weather conditions. The team in charge were forced to seek more funding (30,000) to cover the costs incurred. Management has learned from this set back and will in future account for this risk in other project evaluations. All other projects are going according to plan: all necessary equipment has been ordered, additional staff and tenders for interior design contracts have been received. Promotions have been set-up to attract locals to join and all prices have been decided. Staff and management at Madison are looking forward to the opening. The organisation and hosting of college balls is due to commence this August. Already there has been a huge large number of inquiries from college societies, however no final prices have been finalised. It is hoped, if successful, that this project will become a regular service provided by Madison and future plans might include extending the service to other institutions and organisations in the area. The project of issuing more shares has not yet started but shall commence next month. More capital will mean that Madison will be able to complete projects on hold and begin projects not yet started. Room cleaning efficiency has proved to be a labour intensive operation. Although larger companies tend to benefit from improvements more3, due to the volume of casting production, Madison has achieved a noticeable profit improvement. This success is due to reduction in equipment cost, increase in staff training and improvement of cleaning rotas. The promotion abroad project turned out to be very successful so management has decided to extend it for the future. This initiative has helped Madison increase its market

1 2

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share from 7% to 9% which is just slightly off its target of 10%. This project has been Madisons most successful. However, due to the Law of Diminishing Returns (each additional unit of variable input yields less and less additional output), after a while the project will generate less and less success the more money put into it. So, it has been decided to reduce cost on this project next year. Education and training will mean reduced staff turnover, more responsibility for staff, more promotions and less employee/employer conflict as studies have proven that staff working on their own initiative are not only more productive but also retain more job satisfaction . Excellent performers receive rewards in the form of weekends away or discounts. Staff are reported to be more motivated and interested in long term career options at Madison. Overall, Madison is very much operating to the high standards we set ourselves. It is hoped that existing and future projects will contribute to the quality customer service we offer and consolidate our already impressive market position. This ensures that Madison can fully expect to enjoy a financially secure position as a market leader.

Bibliography
Clarion Hotel: [Link] Goliath: [Link] Jurys Hotel Cork: [Link] Maryborough House Hotel: [Link] Rochestown Park Hotel: [Link] Sustainable Energy Ireland: [Link] Waste Management Website: [Link]