Assignment:
CASE ANALYSIS
VERNON HOTEL OVERVIEW
Vernon Hotel is one of the new hotel establishments in the city. The brand is young and has many opportunities within it. Vernon Hotel is owned and managed by Keith Vernon of the Vernon & Greens LLC a company founded in Chicago, Illinois, USA. With over seven decades of multinational retail and corporate experience it was surprise in the business community that Vernon & Greens LLC will invest on something that they have no experience at all. Keith Vernon the patriarch of the company has rallied a group of experts from different marketing agencies and hired some of the best hoteliers to promote and establish a system for Vernon Hotel.
With a vast financial capacity, Vernon Hotel is now capable of competing with established brands such as Marriott, Hilton, Hyatt, Wyndham and Huazhu Group. Vernon is set to build as many hotels as it can to compete with the said hotel brands. Manila, Philippines is one of the locations where Vernon has set his eyes on. Vernon is planning to build a fifty floors mega hotel in the city with compliments of boutiques, entertainment halls and casino.
After two years the building was finished and the company was set to open upon finalizing the hotel's operational systems in 2 months the hotel will finally open its doors to the public. Vernon has begun its hiring process and everyone seems optimistic about the brand. Thousands of aspiring hoteliers applied for employment. In addition, Vernon has made statements regarding the increased salary rate unlike his competitors within the city. Many aspiring hoteliers were captivated and would certainly like to work in Vernon Hotel Manila.
THE CATCH
The operational system is almost completed and, in a few days, Vernon is set to launch a grand opening.
Aspirants accepted for the job at Vernon Hotel Manila were trained for a new operational system introduced by the establishment. Thousands of new employees went daily for training and retraining.
Consultants and experts have collaborated to produce some of the finest and well-trained employees that will render one of the best service-oriented hotel systems in the country.
In the rooms division and housekeeping department alone, the establishment hired around 220 personnel including 30 shift supervisors and 10 shift managers. One of the shift managers hired was you.
For several weeks you undergone a process of trainings that are as tiring as the actual work. Unlike other brands Vernon Hotel has its own system of rooms division that operates as an independent section to make sure that the rooms are always ready to sell.
In other establishment rooms division is comprised of different sections and sub-sections grouped together. In Vernon Hotels, rooms division is a section with its own managers, supervisors, teams and attendants. Vernon believes that a 24/7 service must be maintained and the company seems to have no regards of spending and investing for human resources, which is very expensive. In addition, you are a part of the management a newly hired individual with a key position.
THE OPENING DAY
During the opening day, thousands of people flock to the hotel not only to experience the best lodging but also the boutiques, entertainment halls and casino. The hotel room capacity is at 100%, The 1000 room hotel is full and people continue to inquire for vacancy. It seems that the opening day and its busyness has paid off, since Mr. Luchengko head of the Rooms Division confirmed that the entire 3
months was fully reserved.
Vernon was astounded and amazed by the results of the grand opening. He called Mr. Luchengko to explain the possibilities of expanding the hotel services by opening the rest of the remaining floors, since the current 1,000 rooms were not enough and only 30 floors of the 50-storey building is operational at the moment. Vernon asked Luchengko about the possibilities of opening the remaining floors, he asked if it is feasible.
Mr. Luchengko in behalf of Vernon delegated this research to his selected managers. Mr. Luchengko asked to reasearch if it is feasible to open the remaining floors for the guests.
CASE ANALYSIS: Analyze each question and answer accordingly.
1. Do you think Vernon hotel will be a successful brand? Cite your opinion as well as your argument as to why or why not?
2. Upon spending billions with its hotel program including the creation of its unique operational system do you think Vernon hotel will be able to replace the traditional system found in books?
3. With limited data about Vernon & Greens what do you think is the reason why they diverted some of their finances, investing in hotel industry? Is it advantageous or disadvantageous?
4. Mr. Luchengko has delegated you to work on the feasibility of opening the remaining floors of the 50- storey Vernon Hotel Manila. Is it going to be feasible? Why or why not? Cite your arguments.
5. If Vernon is to open another branch in the Philippines, where would be the most feasible location with a decent amount of market share? Cite your arguments to support your answer.