Financial Management for a 5 Star Hotel Essay Example for Free

Financial Management for a 5 Star Hotel Essay The service to be marketed is a 5 Star hotel with 380 luxury rooms supported by a range of food and beverage outlets. Located in Dubai, the domestic market will be considered to be the GCC, given the accessibility via short-haul flights and that currencies are broadly all pegged against the US Dollar, and therefore do not fluctuate against each other. The marketing strategy will cover sales in this domestic market as well as a range of global key feeder markets. Through analysis and comparison with economic theories, recommendations to guide the marketing strategy have been made. These point to focussing more strongly on the domestic market based on the higher levels of government spending, backed by a high oil price, the relatively low impact of cross elasticity with airfares and the lack of currency fluctuation risk for sales. Firstly I will consider the cost of production and some scenarios which may impact on the marketing strategy. The main costs in providing a hotel service are labour, rent and upkeep, energy and room servicing supplies (such as linen and tea amp; coffee). In terms of predicting costs for the first half of 2012, it appears likely the cost base will stay fairly stable. All costs are incurred in the UAE, with all items sourced in the local market. The major items, rent, labour and room servicing, are on long term agreements which are already fixed. Longer term macroeconomic effects may impact these, for example expat labour from Asia may be available cheaper next year in the global employment market if the world economy slips into recession. Unit energy costs are variable and could be influenced by macroeconomic factors affecting the oil price. These are difficult to predict, however I have considered that a global slowdown in the period could lead to less demand, forcing the oil price to decline. At the same time, continued tension in the Gulf, particularly around the Straits of Hormuz, could lead to upwards pressure on oil prices. On balance, for this exercise I have assumed that energy prices in Dubai with remain broadly flat. In summary, the overall cost base for the hotel service appears to be relatively flat for the first half of 2012. To assess the service type, I have analysed the price, income and cross price elasticities for the hotel service. I have observed from personal experience in the hotel market in Dubai that a 33% reduction in room rates results in almost doubling of demand, suggesting a relatively high price elasticity of demand of -3. This provides evidence that demand in the hotel market in Dubai is very sensitive to room rates. Whilst the service is considered to be a luxury item, the global tourist market is highly competitive. The income elasticity of demand for such a service is likely to be relatively high, given a luxury hotel’s status as a non-essential item. Since it is a global market it is complex to assess how individual income effects will influence each feeder market, although I would expect that this elasticity will generally be greater than 1. For residents of some countries with high GDPs, such as the GCC, I would anticipate a luxury hotel in Dubai may have a slightly higher income elasticity of demand than for countries with a very low GDP, where increases in income may still not be enough to afford this service. When considering possible cross elasticities, a key factor influencing hotel demand in Dubai is likely to be the cost of air travel to the UAE. Since such a high proportion of guests arrive by air, some from far away with relatively large airfares, there is likely to be a high cross price elasticity between demand for hotel rooms and the price of air travel. Looking to the first half of 2012, possible effects on aviation prices may include additional aviation taxes, such as the EU carbon tax [1]. This cross price elasticity may therefore result in less demand for McKenzie Group’s service from Europe. Assessing the market structure for the McKenzie Group Hotel in Dubai, it is highly competitive. For 2012 STR Global said â€Å"most rooms planned to open in the luxury segment (11,123 rooms amp; 34 projects) and upper upscale category (10,198 rooms amp; 31 projects). The new supply growth in 2012 is expected to reach 9. 6% causing both rates and occupancy to slow down† [2]. Given the range of hotels and brands, my assessment is that the market is near to a perfect competition. Competitive strategies are likely to include discounted room rates, special offers for additional added benefits (such as complimentary transfers, room upgrades and theme park tickets), and increased sales and marketing efforts. Given the analysis above, The McKenzie Group will need to compete on pricing supported by investment in sales and marketing campaigns. In order manage the cross price elasticity risk with aviation prices, The Group should look to focus efforts on the non-air travel local market and pursue pricing opportunities for packages with airlines to give competitive overall costs to global customers. The market for The McKenzie Hotel Group is mainly segmented geographically, location of customers is the biggest influence on buying behaviour. This can be grouped into four key feeder markets: Asia Pacific (10% of sales), Europe (40%), GCC (40%) and North America (10%). Demographically, gender has no noticeable effect and buyers from all markets tend to be middle aged professionals. In the European market government-level economic activity is likely to dominate prosperity given the current crisis. High debt and deficit levels in certain countries will lead to big reductions in government spending and may reduce consumer confidence. Combined with general forecasts for flat growth, if not recession, in the first half of 2012, this could have a large negative impact on overall demand. The GCC market however could be buoyant with high levels of government spending activity, mainly on infrastructure backed by oil and gas revenues. There may also be additional government spending on social schemes as a result of the Arab Spring in Levant countries. As a result of this activity, the domestic market is likely to remain strong. Given the analysis above on the economic climate in key feeder markets and the effects of government spending, The McKenzie Group should target the domestic GCC market much stronger in the first half of 2012. Given the breadth of global feeder markets, a variety of currencies must be considered in relation to pricing effects for customers. Costs are all incurred in UAE Dirhams so the main impact on currencies is not on costs but on sales. Since the Dirham and GCC currencies are pegged to the US Dollar there is no consideration required currency fluctuations with the domestic (or North American) market. However some currency fluctuations could have a major impact on sales in the first half of 2012. The Eurozone crisis may reduce the value of the Euro against the Dollar (and hence the Dirham) which will make hotels in Dubai more expensive for customers in the Eurozone market. As well as the cost of rooms, customers will also be affected by the relative increase in costs for anything bought locally, such as food and entertainment. This risk adds to the argument that Europe is not a good prospect for sales for the first half of 2012. Since the UK is not in the Eurozone its currency (Sterling) moves independently to the Euro and given that it is traditionally a strong market for McKenzie Group, this must be considered. Since the UK may enter recession again in the first half of 2012 it seems unlikely that interest rates will be increased from their current low rates. In addition Bank of England actions might also reduce the value of Sterling and so holidays in Dubai will seem relatively expensive for UK customers. McKenzie Group should reduce its reliance on the UK market in the first half of 2012 to help protect against this risk. Having analysed various macroeconomic and microeconomic influences on costs and sales for McKenzie Group Hotels in Dubai in the first half of 2012, there are some clear recommendations for the marketing strategy. Costs are anticipated to be reasonably stable since they are either already fixed or are incurred locally. Sales are likely to be much less stable. Given the high price elasticity on demand and the near perfect competition in the market in Dubai, price strategies will be key. For sales from the European market in particular, poor economic conditions, low levels of government spending, the risk of weak currencies, and cross elasticity with aviation costs, could all have a negative impact on sales. In contrast, these effects have much less, if any, impact on the domestic GCC market which is also likely to be buoyant from government spending. It is recommended to invest sales effort in the GCC for the first half of 2012.

The Trials and Tribulations Faced In One’s Youth :: Personal Narratives Peer Pressure Essays

The Trials and Tribulations Faced In One’s Youth My life has been filled throughout with influences both good and bad. My high school, although plain and simple from the outside, was anything but on the inside. My high school was known for its academic excellence and its more flush attendance area. But, few not and even some who were associated with my school knew of the problem within. A problem that would even be ignored even when it came right to the forefront of the local news. I never knew that drugs could become such a large part of my life, even without doing them. I never expected to ever find myself in trouble in a drug related incident. But, throughout my time in high school I just did what every other person did and ignored it. But I escaped the problem, others weren’t as lucky. My whole life I could not wait to get to high school. I guess it was always conveyed to me to be the best years of my life. So you can imagine how ecstatic I was to finally began attending Sabino High School in Tucson, Arizona. Home to around fifteen hundred or so students. A school set in a nice community, that was always supportive. It always had much parent backing, and the test scores from the school were some of the best in the state, competing with those scores of private schools. There was a problem though, one that would be ignored throughout my class’ tenure there. As a senior I found myself trapped in a school filled with narcotic sales and use. I even found some of my closest friends involved, and none of them were left with a care in the world. My best friend Zane kept his problem from me. It was not until later that he would admit to participating in any sort of drug activity. He would later tell me that throughout our junior year he used cocaine regularly. I knew nothing of this, and as his best friend worried about him when I did find out. I remember being so mad when he told me about his use of cocaine for that year because people would always tell me that they heard that he was doing it, and I always stuck for him and said that it was a lie.

A Rose for Emily Character Analysis

Miss Emily Grierson, the protagonist of William Faulkner’s â€Å"A Rose for Emily,† is an unusual character in the sense that she is depressed, withdrawn, and ill. Isolated in her father’s decaying mansion in Jefferson, Mississippi, unwilling to accept the passing of time, Miss Emily shows several symptoms of a mental illness. Throughout the story, Miss Emily is living all alone (except for her servant, Tobe) in her deceased father’s decaying mansion. Miss Emily’s story is told by the townspeople, who are very interested in the unusual traits that Miss Emily shows. Miss Emily refuses to change with the town and the times, and stubbornly clings to the past. She is a lonely woman because her father scared all of her suitors away when she was younger. All alone and mentally ill, Miss Emily shows that she is mentally sick through her sad, stubborn efforts to cling to the past. Miss Emily shows her first signs of being unable to change with the times at the beginning of the story, when she refuses to pay her taxes and give her house a mailbox. The members of the Board of Alderman visit Miss Emily to collect her taxes, she is very offended at the action. Miss Emily insists that she is not required to pay taxes in the city of Jefferson and that the officials can speak with Colonel Sartoris about the issue. However, at the time of this conversation, Colonel Sartoris has been dead for nearly a decade. Miss Emily struggles with moving forward with time because she does not want to change. She does not want to face the fact that she is all alone and unhappy. Miss Emily is unable to cope with the loss of her father, who was the only man in her life, and this is the main cause of Miss Emily’s mental illness. The story then jumps forward about thirty years, and the townspeople recall another incident of Miss Emily being visited by town officials. At this time, Miss Emily’s father, Mr. Grierson, has just passed away, and there is an awful smell coming from the mansion. Judge Stevens, the town mayor who pity’s Miss Emily decides to solve the problem by sprinkling lime in her yard, rather than to confront her. At this point in the story, the townspeople feel sorry for Miss Emily because she is thirty years old, and still single because her father never allowed her to date or marry. The next day, the women from Jefferson pay a visit to Miss Emily to offer condolences from her father’s death. Miss Emily refuses to admit that her father is dead, and holds on to the body for three days before finally turning it over for the funeral. The smell coming from the Grierson home, most likely from her father’s decaying corpse, shows Miss Emily’s inability to let go of the past and move on with the future. Later in the story, Miss Emily becomes very friendly with a construction foreman, Homer Barron. The townspeople assume that Miss Emily is spending time with this gentleman because she was never allowed to date when her father was alive, and the pity her because Homer is below her social class. As Miss Emily and Homer Barron continue to see each other, Miss Emily goes to the local drugstore to purchase arsenic, with no explanation. The next day, the package is delivered to her home with a note saying the arsenic is for rats. After Miss Emily purchases a sliver toilet set that is monogrammed with Homer’s initials, the townspeople assume that Miss Emily and Homer have gotten married. Soon after, Homer comes home one day, and never leaves again. Miss Emily’s appearance soon decays along with her home. No one from the town ever saw Miss Emily or Homer again, until her death at age seventy-four. When the townspeople come into the Grierson home for the funeral service, the townspeople find a room that appears to have been untouched for a number of years. Inside the room, the townspeople see Homer Barron’s dead corpse laid in the bed with an iron gray hair on the pillow next to him from Miss Emily’s latter part of life. Miss Emily was unable to admit to the loss of both her father and Homer Barron because she had a hard hold on the past, and refused to let go of it until she finally died. Miss Emily was a sad character, because she was depressed, mentally ill, and unable to grasp the passage of time. It is seen by the townspeople through her actions that she was very sad and lonely, and willing to go to great lengths to keep from being alone. Faulkner showed the struggle that Miss Emily had with this through her lack of upkeep to her home, her inability to change with the town of Jefferson, and her refusal to let go of her deceased loved ones.

Final Film Critique Paper Hangover Part Iii - 1014 Words

Final Film Critique Paper: Hangover Part III Barbara Kordell English 225: Introduction to Film Instructor: Michael ODonnell May 27, 2013 Final Film Critique: Hangover Part III I have chosen the Hangover 3, directed by Todd Phillips, to critique; it seems to be a very humorous movie from just watching this one clip. This movie is in the genre of comedy, it is being called the epic final of the â€Å"Wolf Pack†. Since the Hangover III does not get released until May 23, 2013 I will base my paper on the movie clip, I my critique I will attempt to explain the uses of sound cinematography used in the clip that I have viewed, and how well the actors play there parts in the clip. The scene for the clip titled Hangover Part III†¦show more content†¦I only included the main cast that where in the film clip that I viewed. There are many more in the cast and crew that made this film that I have not included, as that would take up the whole paper. Main Cast: Bradley Cooper as Phil Ed Helms as Stu Zach Gailifianakis as Alan Justin Bartha as Doug Ken Jeong as Mr. Chow John Goodman as Marshall Directed by: Todd Phillips Writing Credits: Todd Phillips Craig Mazin Jon Lucas Scott Moore Cinematography by: Lawrence Sher (IMDb, 2013) As far as the impact on society, having not seen the entire film I really cannot say that it has any impact, but from viewing the clips I would think that it would not have an impact one way or the other on anything as it is a comedy and not a documentary. When deciding on a movie clip to write about I viewed about ten different clips, The Hangover III caught my attention with the witty humor included in just the movie clip. It appears that it will be an entertaining movie to see. The scenes that were used in the clip are well thought out and picked for the witty humor that must be present in the films entirety. | | | | | | Reference Goodykoontz, B., amp; Jacobs, C. P. (2011). Film: From Watching to Seeing. San Diego, CA: Bridgepoint Education, Inc. Kim, J. (2013, May 24). Jonathan Kim: ReThink Review: The Hangover 3 - Just Dont. Retrieved May 20, 2013,Show MoreRelatedStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesTraditional View of Conflict 447 †¢ The Interactionist View of Conflict 447 †¢ Resolution-Focused View of Conflict 449 The Conflict Process 449 Stage I: Potential Opposition or Incompatibility 450 †¢ Stage II: Cognition and Personalization 451 †¢ Stage III: Intentions 452 †¢ Stage IV: Behavior 454 †¢ Stage V: Outcomes 455 Negotiation 458 Bargaining Strategies 458 †¢ The Negotiation Process 463 †¢ Individual Differences in Negotiation Effectiveness 464 †¢ Third-Party Negotiations 467 Summary and Implications