Let's assume A Hotel has 900 rooms. The total fix costs for the hotel on any given night are 22350.The variable costs per rooms is 43. assume the average daily rate for hotel last night is 90. How many room have been sold be break-even last night? What percent of occupancy should have made to be break-even last night?
In: Operations Management
In a survey of 529 travelers, 386 said that location was very important and 323 said that room quality was very important in choosing a hotel.
In: Statistics and Probability
It is believed the present capacity of Ocean Park is well-sufficient in accommodating the heaviest flow of visitors at ease. And the annual visitors to the park fell to 5.7 million in 2019 having topped at 7.5 million a few years previously. Draft, with an illustration of the various cost concepts, the average total cost (ATC) curve which is most relevant and locate the point where the park has been operating at.
In: Economics
You are the accountant of White Hotel Berhad, a corporation that engages in the hotel businesses. The corporation is having a high value of buildings and has been using historical cost to measure it. The directors of White Hotel Berhad wanted to continue using the historical cost measurement since they feel that the valuation exercise is costly to the corporation. Prepare a note explaining 4 drawbacks of using the historical cost measurement for buildings.
In: Accounting
Compensation to a customer when overbooking happens is an expense, right?
A friend of mine that booked a hotel on a site, notified her that there was an overbooking. The site compensated her by giving her a 5 start hotel instead. Compensating her by upgrading her hotel. The site probably paid the amount left that needed to be paid. In order to compensate my friend, right? This cost would go into the site's expense cost?
In: Accounting
"The Role of the Room Rate" Analyze the hotel market in your state and determine if the room rates for the majority of hotels is elastic or inelastic. Explain your rationale and identify contributing factors (e.g., tax rates, competition, etc.). Imagine opening a small hotel in the town in which you attend class, Briefly describe the hotel and determine how you would determine the proper room rate.
In: Operations Management
An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:
Qa = 20 – Pa where a is adult market
Qc = 30 – 2 Pc Where c is children market
QT = 50 – 3 PT where T is the two markets combined
Assume that the marginal cost of each unit of quantity is $5 (constant), the owners of the park want to maximize profit:
In: Accounting
An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:
Qa = 20 – Pa where a is adult market
Qc = 30 – 2 Pc Where c is children market
QT = 50 – 3 PT where T is the two markets combined
Assume that the marginal cost of each unit of quantity is $5 (constant), the owners of the park want to maximize profit:
In: Economics
Red Carpet LLC is a national hospitality and entertainment company with headquarters in Philadelphia, PA with national operations in the US. Historically, the company has had 3 divisions: hotels, food service, and cruise lines. However, it recently completed the acquisition of Sparkstar theaters, a movie theater company, that it is slated to become its 4th division. Red Carpet now owns 200 hotels in 48 states, 4 brands of restaurants with 1776 locations, 4 Buoy Bay branded cruise ships, and 300 Sparkstar theaters.
Its matrix organizational structure consists of a central HR, accounting, business development, sales, marketing, and research and development departments located at the headquarters in Philadelphia that serve each division. Each division is located in a different part of the US and lead by a VP that reports to the President and CEO. The company is privately owned by a consortium of investors and investor groups.
Red Carpet has 16,000 employees, 1000 of which work at its corporate headquarters. The organizational culture of the headquarters is informal and organic and there are few policies and processes that guide employee behavior. The company, as a whole, does not value HR so employees struggle with many employee relations and employment law concerns. The company outsources all of its training to one of the investor group companies, however this training is commonly not customized to the needs of Red Carpet.
As a whole, Red Carpet struggles with its business to business partners and suppliers because of its reputation for being nonnegotiable. Red Carpet would rather disrupt the quality and availability of its only products and services rather than partner for the supply chain resources that it needs. Likewise, Red Carpet does not hold many of the General Managers in its hotels, restaurants, and its cruise ships accountable for performance, opting instead for a weaker political strategy of blaming and gotcha games.
Being aware of these challenges, Red Carpet acquired Sparkstar for their strong industry reputation and financial performance in the hopes that merging the structure and culture of Sparkstar into Red Carpet would change the organization for the better. Historically, Red Carpet has been a highly successful company, however in recent years, its mismanagement has created noticeable effectives in product and service quality and its bottom line.
Divisions
Hotels: Red Carpet branded hotels are mid-price semi-luxury hotels known for high quality. Each customer is given a red velvet cupcake upon checking in. Red Carpet relies on its General Managers to micromanage the hotel. Despite its corporate parent owning a restaurant division, no Red Carpet hotels have restaurants. The Red Carpet division headquarters are in Sedona AZ. Many of the hotels are in need of refurbishment.
Food Service: Chicken Heaven is a fast-food chain with a long tradition of quality, large customer base, and 1000 locations. It is a solid overall performer for Red Carpet with high employee satisfaction. Burger Blast is another fast-food chain recently launched to cater to upscale customers who seek customized, gourmet-style burgers. It has 200 locations, however General Managers are struggling with budget and supplies causing a poor customer experience and high employee turnover. Food Park is a buffet-style restaurant with 500 locations that has been recently struggling because of high competition and poor marketing. Delicacy is a high-end restaurant with an urban theme. It has 76 locations, is the oldest of Red Carpet's food service operations, and provides a unique dining experience for customers. However, General Managers have a high turnover at Delicacy because of the grueling schedule. The food service division is located in Burke, ID.
Cruise Ships: Buoy Bay cruise ships offer low-cost, short-term cruises from Port Canaveral, FL only to the US Virgin Islands. Buoy Bay offers customers average quality staterooms and food from Chicken Heaven, Burger Blast, and Food Park. However, it does not offer a non-buffet formal dining option such as Delicacy. Although they are known for their over-the-top entertainment, employee turnover is very high relying primary on seasonal employees who are poorly trained. Buoy Bay has had much controversy. Just 5 years ago, the Buoy Bay cruise ship, Garland of the Sails, hit a reef, partially sank, and had to be salvaged in a 1.5 billion dollar operation. This resulted in a Federal investigation that is still pending. The Buoy Bay division is located in Lapsowanne, OR.
Movie Theaters: Sparkstar theaters were recently purchased from the Vegamega group for 2.3 billion dollars. Sparkstar is the highest rated movie theater chain the US. It has high customer and employee satisfaction, an efficient organizational structure, and solid financial results. Sparkstar's culture is one of high HR involvement including a strong training and development department, Sparkstar Institute. Sparkstar has a customer rewards program that provides a free movie rental of the film that the customer saw in the theater which has been very popular and has increased its strong customer base. Sparkstar has its divisional headquarters in Pasadena, CA.
The Issues
With the purchase of Sparkstar theaters, Red Carpet is hoping to redefine its operations in the next 5 years. It sees opportunities to integrate its divisions, products, and services to better serve its customers and employees. Here is a summary of some of the issues that Red Carpet must address in its strategic plan:
Internal politics and communication
Improved HR and training
Employee relations issues
Federal investigations
Product and service quality
Marketing support
Performance issues
Redefining the organizational structure
Improving its organizational culture
Integrating products and services
Resource and supply chain issues
Your Role
Leroy Banks, the Director of Change management at Red Carpet is seeking an Organization Development Consultant to address Red Carpet's need for change. You've just received a consulting contract from him to help prepare a plan to assist Red Carpet. You're excited about the opportunity and are motivated to work on this project. You know that your insight will assist Red Carpet with managing organizational change.
Leroy Banks is the Director of Change Management for Red Carpet, a national hospitality and entertainment company. He has contracted you to be an OD Consultant because Red Carpet has recently acquired a movie theater company and needs to create a new division. Leroy realized that this acquisition has provided an opportunity to restructure some other parts of the Red Carpet as well so it can streamline its operations. Leroy has asked you to begin by assessing Red Carpet’s organizational environment.
Review the Red Carpet scenario for this course and with your classmates; discuss the following questions that will help you become familiar with Red Carpet:
Identify and describe 3 examples of external forces affecting
Red Carpet.
Identify and describe 3 examples of internal forces affecting Red
Carpet
What challenges have these forces created at Red Carpet?
In: Operations Management
How can we explain the following scenario using the own-price elasticity of demand? You only need to specify whether demand is inelastic or elastic and how you know.
Recent efforts by the Food and Drug Administration to reduce the flow of illegal drugs into the United States have actually benefited drug dealers
In: Economics