Individual OPERATIONAL PLANNING REPORT

Thursday 11th March 2004

Table of Contents:
1.0 Introduction....................................................................................................................1 Wyatt Internationals Goals and Objectives........................................................................1 2.1 GOAL - To successfully open a second Wyatt International in Adelaide.................1 2.2.1 Objectives...........................................................................................................1 2.2.2 To be operational for the Wyatt Internationals grand opening..........................1 2.2.2 Profitability.........................................................................................................2 2.2.3 Excellence in service...........................................................................................2 2.2.4 Green Awareness................................................................................................2 2.2.5 Signature restaurant............................................................................................3 2.2.6 Research, Development and Marketing..............................................................3 2.2.7 Diversity..............................................................................................................3 Prohibitive problems and solutions......................................................................................4 Conclusion...........................................................................................................................6 Reference list:......................................................................................................................7 Bibliography:.......................................................................................................................7

Operational Planning

1.0 Introduction
This report is an overview of the operational plan assignment, indicating the main objectives of the operational plan. Goals and objectives are the most important aspects which need to be developed before the planning process can begin. Without these vital goals and objectives there is no foundation or direction for the hotel. The main difference between goals and objectives; goals are long term, where objectives are short term. Once the objectives have been outlined an operational plan can be derived, to obtain these goals and objectives. A plan is vital in the success of any vision. Without planning no direction is shown. As outlined (Robbins, Bergman, Stagg 1997, p 219) when the organisations mangers and employees know where and what objectives need to be met, they can work together to coordinate activities and achieve the objectives. Also as (Robbins, Bergman Stagg 1997, p.219) state a lack of planning can foster zigzagging and thus prevent an organisation from moving efficiently towards its objectives. The report also outlines the prohibitive problems which may hinder and slightly postpone the objectives being achieved; these include environmental, social and technological problems. These need to be analysed within the plan so that preventative measures can be put in place to help cope with these set backs, a contingency plan can be constructed.

Wyatt Internationals Goals and Objectives

2.1 GOAL - To successfully open a second Wyatt International in Adelaide.
This is the main goal. This is what we are working towards with our operational plan. However, successfully open doesnt just mean until the grand opening, it goes further than that, up to one year after the grand opening. That is the reason the operational plan goes through the five phases of opening a hotel; pre-opening, soft and hard opening, honeymoon phase and post honeymoon phase. This is the key goal, without having this goal there would be no hotel and no purpose for compiling an operational plan. From this main goal there are several sub objectives which need to be met to ensure the goal is achieved.

2.2.1 2.2.2

Objectives To be operational for the Wyatt Internationals grand opening.

Objectives are the stepping stones, to successfully achieving the main goal.

A date has been set for the official opening of the hotel, the objective is to ensure the hotel is operational before this date. The reason the pre opening and soft opening plans are essential, is so that all departments can work towards this common objective together. Without having a set date for the opening there would be no urgency to complete the hotel. If bookings have been made for

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Operational Planning guests to stay in the hotel after the official opening and the hotel isnt open and finished in time, where are they going to stay? How does this reflect on the reliability of the hotel? Bad publicity can stay around to haunt for a long time, hence the importance of achieving this objective.

2.2.2

Profitability

All these objectives are important, but none more vital than profitability. The hotel has to make a profit to be viable. Simply, it wants to make money to justify all the hard work which has been put into making the hotel operational. If it isnt profitable it wont be viable for the Wyatt to keep its doors open, wasting everyones time and money. The Wyatt needs to be profitable to pay its employees and be able to provide the highest possible service standards to its guests, without having to cut costs. The Wyatt has made a statement and marketing promise to guests that it will provide 5 star quality services. If they dont deliver and have to cut costs, the hotel could lose its reputation, not only for this particular Wyatt but others in the chain.

2.2.3

Excellence in service

Having excellence in service will, in the long run, help with the profitability objective. The Wyatt wants to be the leaders in Adelaide in service standards. This can be achieved through training which is undertaken by the staff. There is a cost involved, but the Wyatt believes if they invest time and money into their staff, that staff turnover will be lower. Continuous customer service training will benefit all parties; staff, guests and management. The employees will feel like a valued member of the team. The Wyatt International provide the service they want for their guests, thus obtaining a good reputation of excellent service and standards and the guests receive the service they deserve.

2.2.4

Green Awareness

This is important for two reasons. Firstly, to take responsibility for the environment, by using environmentally friendly products, recycling and using energy efficient appliances. Secondly; it is beneficial towards marketing, it makes the hotel stand out and be recognised for its contribution towards the environment. A prime example of a company which does this is World Expeditions (WE). They are an adventure based trekking company and they proudly promote and donate and provide to such organisations as World Wide Fund for Nature (WWF), Wilderness Society, The Himalayan Trust and International Porter Protection Group (IPPG). This works both ways, the company is supporting some very worth while causes, but it also helps with the marketing of their product. Potential clients see that the company is responsible and if they book an expedition through W.E. they also feel like they are giving something back to the environment. Even though the hospitality industry isnt exactly related to the area of adventure travel, the principles are still the same.

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Operational Planning

2.2.5

Signature restaurant

The Wyatt wants to have a signature restaurant which is world class, similar to the reputation The Grange has at the Hilton. It wants it to be innovative and original. This is important for the Wyatt because they want to stand out from the crowd. In addition the restaurant, if original, can provide profits i.e. if it has a fantastic reputation it would be full, bringing more guests into the hotel. These guests will use the bar and drink wine, cocktails and other beverages in the restaurant further expanding on profits, and also including a great advertising, base word of month. If people are happy with the service and food they will talk about it and people are willing to pay for quality.

2.2.6

Research, Development and Marketing

Continuous research being used on a regular basis, is away to successfully generate new and innovative products. From the beginning the Wyatt International has employed an outside market research team, because they have expertise in market research. Hiring an outside company gives the hotel a different insight and both the sales and marketing department and market research team can work together and compliment each other. After the opening the marketing and sales department want to continue to generate new products and procedures, to stay in front of the market and in the long run add to the hotels profitability. This is especially important in Adelaide because there is a small market share. During some periods of the year Adelaide is alive and full, but in the quieter times the Wyatt needs to have a edge to stand out in the crowd of hotels and the new apartment hotels which are slowly appearing in Adelaide.

2.2.7

Diversity

This is especially important, in Adelaide. The Wyatt International needs to develop procedures which will allow flexibly to diversify from its direction if new markets are identified. They need to be opened minded to changes in the market and be able to quickly identify changes and move into these new markets. If the Wyatt isnt achieving profits in one area they need to be able to identify other areas which will provide growth. The Wyatt will have to think outside the square.

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Prohibitive problems and solutions

OBJECTIVES Operational for the Wyatt Internationals grand opening. PROHIBIT Council restraints, taking longer to approve aspects of the construction, than was expected. Pay dispute within the construction team, developing into a strike. INHIBIT Floor Plan unworkable within the banquet area. Uniforms not prepared in time. SOLUTIONS Prohibit have an operational plan which takes into consideration these uncontrollable delays i.e. Gant chart, this will show the time it is supposed to take in conjunction with the time it may take. Inhibit Ensure all plans are analysed in details not only by the manager, but by each department director to ensure floor plans are practical. Prohibit Change marketing direction, for a short period of time, market domestically or locally. Inhibit Review staff training, to ensure being taught effectively. Review market plan/marketing staff. Prohibit Have a contingency plan i.e. another supplier. Back up generators Inhibit Review training program. Conduct individual staff appraisals to source where the lack of motivation is coming from.

Profitability

World Climate i.e. war, bombings, world wide health issues (SARS) Recession, people dont have the same disposable income as before.

Lack of or inefficient staff training. Poor marketing.

Excellence in service

Delay in delivery of essential supplies. Power failure.

Lack of or inefficient staff training. Lack of motivation.

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Operational Planning

OBJECTIVES Green awareness

PROHIBIT Lack of product availability. Strikes within the recycling company.

INHIBIT Inefficient products. Lack of staff training.

Signature restaurant

Food poisoning from outside source/supplier. Specialised menu item unavailable.

Head chef sick. Electrical fault in kitchen.

Research & development

Outside research company missed the mark Outside research company failed to meet the deadline.

Wrong advertising published. Advertised wrong date.

SOLUTIONS Prohibit Use another supplier Inhibit Source another supplier and try new products. Retrain staff in recycling. Prohibit Thorough research of the hygiene standards of suppliers. Innovative chef with back up menu. Inhibit Ensure back up staff available who have been trained in the signature restaurant. Ensure back up generator is available. Prohibit Research other marketing companies. Inhibit Identify error quickly and alter plan. Marketing department always has someone to double check days, dates & prices, before being advertised.
Prohibit Seasonal marketing strategies, to go with the market demand. Change marketing direction, for a short period of time, market domestically or locally.

Diversity

Change in seasons. World Climate

One of the banquet rooms is too big. Restaurant underutilised.

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Operational Planning
Inhibit Implicate a procedure where the room can be divided, so it can be used as two banquet areas. Advertise theme nights for the restaurant to gain interest.

Conclusion
With these firm goals and objectives, the Wyatt International is in a good state to achieve their overall goal of successfully opening a second Wyatt International. This is not just the grand opening; this plan incorporates the honeymoon and post honeymoon phases. These phases being as important as the pre phases and allow the Wyatt to analyse their progress and reach their goal. The group which complied the operational plan worked well together, continually brainstorming ideas and continually changing the ideas and brain storming again. I feel however, that a Gant Chart would have been perfect to successfully analyse the progress of the hotel. With a Gant Chart you can look, with one glance, and see exactly where you are and it also incorporates the prohibitive problems by including the proposed time and the actual time, in case problems occur.

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Operational Planning

Reference list:
Robbins, S. P. Bergman, R. Stagg, I. 1997, Management, Prentice Hall, Sydney

Bibliography:
Robbins, S. P. Bergman, R. Stagg, I. 1997, Management, Prentice Hall, Sydney International College of Hotel Management. 2003, Operation Planning, Subject Notes & Assessment, International College of Hotel Management, Adelaide Cole, K. 2001, 2nd edition, Supervision The Theory and Practice of First-Line Management, Pearson Education Australia, Frenchs Forest.

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