TRM 472 BUSINESS STRATEGY

Group Members: Gnce Malan Yasemin Aksoy Ne e Roman

Contents
1.Introduction 2. External Environment 3. Internal Environment 4. Identification of Problems and Key Opportunities 5. Possible Strategies 6. Recommendation 7. Implementation

 First hotel opened in 1961, Toronto, Canada. Canadian based international luxury hotel management company Located in Sultanahmet 65 guest rooms Luxury chain boutique hotel

External Environment
ECONOMIC ENVIRONMENT International tourism had recovered with the growth of 7% in 2010. Uncertainty in many economies to unemployment and increasing energy prices.

External Environment
POLITICAL ENVIRONMENT Policies, legislations, code of laws affect the supply and demand in tourism. The political instability has negative impact on hospitality. (Mavi Marmara Ship Case) Legal forces on hospitality industry ( VAT 8% for accommodation, 18% alcoholic beverages)

External Environment
GLOBALIZATION Business travel has increased International boutique hotel chains

External Environment
TECHNOLOGY !Technology is life!

External Environment
INDUSTRY Boutique hotel categorization Tourism industry in stanbul Structural barriers (high capital costs, poor infrastructure facilities, scarcity of land)

External Environment
TRENDS Green Hotel Trend

Internal da sertifkadan bahsediliyor mu?

External Environment
COMPETITION

External Environment
External Evaluation Matrix Key External Factors Opportunities The continuous growth trend in hospitality industry International business Growth in F&B %8 in VAT Istanbul as leading city in boutique hotels Threats Competition Economic crisis in 2010 Instability in politics Changes in consumer behavior Total 0.1 0.16 0.07 0.01 1 2 3 3 2 0.22 0.48 0.21 0.2 2,18 weight 0.27 0.07 0.07 0.05 0.11 rating 2 3 4 2 4 weighted score 0.54 0.21 0.28 0.1 0.44

External Environment

FS Sultan Ahmet

Bestwestern Acropol

WHotel

INTERNAL ENVRONMENT

MISSION AND VISION

Golden Rule to treat others as we d wish to be treated ourselves- as guiding principle. The greatest asset and the key factor for their success is the people.

ORGANIZATIONAL CHART
GENERAL MANAGER F&B EXECUTIVE

FRONT OFFICE MANAGER

SALES EXECUTIVE

BANQUET SALES EXECUTIVE

HOUSEKEEPING EXECUTIVE

TECHNICAL SERVICE EXECUTIVE

SECURITY EXECUTIVE

HUMAN RESOURCES EXECUTIVE

IT SUPERVISOR

ACCOUNTING MANAGER

HUMAN RESOURCES
- Diversity in the workplace -Training to employees at all levels to help all staff reach their potential with the company -Career growth opportunities and educational assistance for its valued employees -Annual party and sporting events, life insurance and medical insurance, paid holidays, incentive bonus and employee service awards. -Open Door Policy

FINANCE

Thanks to its worldwide brand name-Four Seasons , the hotel has a good financial position and Four Seasons Sultanahmet could cover its working capital and operational expenses.

MARKETING MIX
1- Product: The core product of the hotel is the accommodation and the supplementary products are the historic architecture, high technology equipments and SPA services. 2- Price: Yield Management and special promotions peculiar to special occasions such as Valentine s Day, Holiday Season or weekend promotional packages. 3- Place: Internet (Four Seasons hotels official website), computerized systems like CRS & GDS, and advertising channels through media (i.e. magazines), PR activities, and barter agreements.

MARKETING MIX
4- Promotion: Internet, sky magazines, and media through brochures. Some travel agencies have also promotional agreements with Four Seasons Sultanahmet. Facebook and Twitter 5- People: Direct, personal interaction between customers and employees 6- Process: FS Sultanahmet provides high level of contact and people-processing services by nature.

MARKETING MIX
7- Physical Evidence: The hotel was created from a century-old neoclassic Turkish prison in the core of this fabled city steps from the Blue Mosque and Topkapi Palace. 65 guest rooms and an open courtyard with full of colorful flowers. 8- Productivity and Quality: The quality of the service creates productivity. Communication with customers by internet and phone are being technologically improved to keep quality high. Recognizable brand name provides sustainability.

MANAGEMENT INFORMATION SYSTEMS

Systems are automated; they are using Opera program. All the systems they are using currently updated from both Canada and Switzerland. On each Four Seasons property they are currently having Four Seasons RSS (Really Simple Syndication) systems.

OPERATIONS
Rooms sold through travel agents including wholesalers and tour operators. Other marketing activities include Web sites, seminars and videos, direct response marketing and international sales channels. Meeting facility is efficient. Since the hotel has a limited number of accommodation facility but still can serve up to 275 people in terms of meetings.

IDENTIFICATION OF PROBLEM
 Differentiation
in customer service quality by: brand name, employee motivation, high-quality service, good financial position.

Main threats : Competition, Similar offerings, instability of politics, economic situation. KEY OPPORTUNITIES continuous growth in hospitality industry, discretionary income has been increasing, more time to travel, more business require travel.

POSSIBLE STRATEGIES

POSSIBLE STRATEGIES
Increase marketing activities + increases the number of guests + increases the brand value _ marketing costs are high. _as the product offered in the industry is same, reaching the right target is difficult. Give monthly training to employees and test their interpersonal communication skills + having higher qualified employees + increase in customer satisfaction + increase in service quality _ difficult to make employees attend trainings _ training costs _requires feedback and control mechanism Increase the variety of F&B products and offer catering service + increase in guest satisfaction + increase in revenue _ difficult to find qualified chefs _high cost _ managing different product lines are difficult Invest in updated technology + opportunity to follow new trends _ high cost

A SPACE MATRIX for Four Seasons Sultan Ahmet Financial Strength F&B division s profitability Low employee turnover Industry Strength Growth trend in hospitality industry Profit potential Growth in F&B Environmental Stability Technological advances Competitive pressure Effects of economic crisis on the range of competing services 4.0 5.0 9.0 2.0 1.0 4.0 7.0 -5.0 -4.0 -3.0 -12.0 Competitive Advantage Customer loyalty Service quality in F&B facilities Strong brand name -2.0 -1.0 -1.0 -4.0 ES Average is -123= - 4 IS Average is +73=2.33 CA Average is -43= -1.33 FS Average is +92=4.5 Directional Vector Coordinates: x-axis : -1.33+(+2.33)= +1.00 y-axis: -4+(+4.5)= +0.5 Four Seasons Sultan Ahmet should pursue Aggressive Strategies.

RECOMMENDATION

- Product development - Differentiation strategies

IMPLEMENTATION
Product development :

 expand the variety of F&B products that are currently offered,  invest in updated technological products,  increase number of rooms,  build off site recreation facilities

IMPLEMENTATION
Organic garden project Expansion in the variety of F&B products Invest in updated technological products,

FINANCE
Four Seasons brand has an international budget for innovations in each location all around the world. Four Seasons Sultanahmet will use its portion from this international budget in order to finance this innovation.