possible reasons for business change

1. What could be possible reasons for business change? Outline key reasons for change.

There are many reasons that can make one business to change. Many factors with different type and nature can cause one business to modify and choose another direction of development. However some of them will be explained during the answer of this question such as:

-Changing of the owner –

is one of the reasons that would cause certain changes concerning the business in the organization. It is normal for the new owner to develop some new ideas and implement them in the business. That will normally give the business another direction.


are another reason for change. It can be caused be the enacting of new policies, interpreting the needs of new management and implementing new technologies.

-Significance –

concerning this method it is included the environmental changes, political actions and legal issues. All of them can lead a hotel in changes. Like for example following the laws in the tourism can cause some changes in the business in the hotel in order to keep up with following and respecting the rules that are required by some of the laws. The same refers and to the politics.

-The new trends in tourism

are many times reason for change in some certain parts in the business in the tourism industry, especially in a hotel. In order to follow the new trends, the hotel business many times must change its character or some part of it. That is normally done because of one main reason – keeping the current clientele and attracting new customers or tourists in the case of one hotel organization.

-The variable

of the expenses would be another reason for some certain changes in the business. Like for example if the manager wants to improve the quality of the food and beverage that will automatically reflect with increase of the expenses.

-External causes -

some of the changes can be caused by many factors from the external environment of the hotel such as changing in the trends in the tourism, changes on the market the hotel.

-Internal causes –

sometimes the changes can be caused by some factors within the hotel. Like for example change of the highest management will means change of the structure of the business in

2. What recommendations would you make at the existing structure? Which of the reasons above would each of your recommendations achieve?

Based on my experience for many years in the hotel I would suggest few different changes concerning the structure of the hotel organization such as:

* The housekeeping department must incorporate in the room division.

It is very important for the both departments to corporate between each other because it is quite known that they actually depend between themselves. By corporation the rooms division department will have enlarged and stronger communication with the housekeeping which will result with better selling without any problem. The room status will be known and transferred to the reception much faster and that will give the reception exact information in order to sell as much rooms as they can. On the other hand the housekeeping department will be informed precisely about the room's checks and the ones with priority in order to be ready before the others. Finally by making this decision the rooms selling rate will rise up as result of the corporation between these two departments.

* The sales manager must have corporation in the marketing department.

Concerning the fact that the hotel has large capacity (about 500 rooms) it would be better if the sales manager has better corporation with the marketing department. By making this move, both of these departments are taking advantage. Sales information will pass more frequently to the marketing allow the marketers to take faster decisions about probably changes in strategies and the result will be saving time and money. The corporation will increase the protocol of communication between the sales and the marketing department. In that way the marketing manager will be able to control the sale process. As a result of that the company will become more responsive and alert. With other words it will become more flexible in the room selling and that will normally result with better revenue.

* The kitchen then the restaurants and bars managers must have corporation under the F & B manager that will be responsible for all the activities that are happening in that area.

With the fact that the F&B manager has control over these departments, the work generally as well as the communication will be established and developed in extraordinary level. The kitchen will have better corporation with the orders that are coming from the restaurants for example and that will result with better and faster work and will increase the quality generally at the same time. On the other side the F&B manager will have exact picture of the F&B department condition. That can assist the manager on his decisions and he will inform him about important issues of the hotel function the senior management. With other words he will be the one who has the responsibility of taking care of it and develop it in the best possible way. After all it is a hotel that has 500 rooms which means it will definitely have many tourists. Therefore hiring an F&B manager would be a wise decision in order to reduce the already enormous number of responsibilities that the senior management have.

· My other recommendation concerning the hotel structure will be to separate the human resource department with the finance department.

It is important to mention that these two departments have two different and in the same way important parts in the hotel organization. Concerning the large number and capacity of the hotel it will be better if these two departments work separately. The human resource management has the responsibility of handling with the staff generally while the finance department has to do with the financial part of the hotel. When we will separate them, the HR manager will have the time to focus on the staff and the working situation like for example requiting and staffing while the finance manager will have more time to pay attention on the sales and expenses that the hotel have. As a result of that the hotel will have better profit. The staff quality as well as the service will increase and on the other side the expenses generally will decrease.

3. How would you recommend these changes to be made? Explain key methods for managing change effectively.

In order to make these changes, we have to pass through certain different but important phases. First of all it is very important that these changes are understood by the rest of the management in order to be able to follow and contribute in them. Therefore communication and consultation must be established between the levels of the management. We have to make sure that these changes are realistic and able to implement them or else there could be a big failure. Therefore we have to make sure that the people that are affected by these changes are ready to accept and understand the reason for these changes. The best way for informing is to communicate face to face with them in order to give them the exact required information. We must understand that helping them will strengthen the connection between us and develop our corporation with them as well. That will normally result with high level of performance. The manager is the responsible of this activity. It is he who will have to organize and prepare the staff and the rest for the change, to guide them and give them instructions.

4. Investigate different methods of communication by managing director

In order to explain the different methods of communication, we have to clarify what the term communication means. Generally the communication is determined as a process of sending message and information from one person or group of people to another. In order one communication to be established, two or more people must be present sending and receiving messages. Although there exist one-way communication, the two-way communication is more effective due to progressive exchange of the information, ideas and thoughts. In order the communication to be effective there must exist message, sender and normally receiver on the other side. Concerning the method of communication, the role of the sender is to define and encode the message that has to be sent while on the other hand the receiver is the one who is accepting and decoding the message where afterwards is sending a feedback.

As it was said there are two different types of communication: one-way and two-way communication. One-way communication is the type of sending information without any expectation for answer or feedback. Example of one-way communication would be an announcement provided by the F&B manager about some certain change in the working hours. It is a type of communication where the manager as a sender presents information which the workers are receiving it. However there is no any answer or feedback according to that announcement. Internal communication can have different form such as letters memos, reports, proposals, contracts, faxes, and e-mail or discussions documents. However the communication established throughout a conversation – spoken communication has the first priority in a hotel organization. The external communication is a type of a spoken communication that can be presented throughout meetings, conversations and presentations, videos, voice messages etc.

5. Assess the importance of effective communication by Managing Director in business situations.

The effective communication by the managing director is more than important in one hotel industry. It is very crucial for one director to have good communication with the rest of the management as the staff as well. The managing director is the one through whom all the information is passing. He is the one who corporate with each department of the hotel as well as the employees, the guests, the shareholders, the suppliers, the creditors and any other person or organization throughout the world with which the business has any contact. Therefore the managing director first of all must be person with extraordinary communication skills. The result of that will be better profit and revenue of the business, like keeping the level of quality in the performance and improving it at the same time. With good communication he clearly clarifies his ideas and intensions to the rest of the people in a way that is understood. Therefore the working quality and attitude will improve. That will lead the hotel to greater level of success. The bad communication is the main reason for misunderstanding ideas and the cause of many problems that the people and the organization have to face with. Therefore one hotel organization must be more then sure with the recruitment and hiring about the person who is going to take this job placement.

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