MA in International Tourism, Hospitality and Event Management
Module: Business Decision Making for the Hospitality Industry
Assignment Title: Report on Decision making for the Luxus Plaza Hotel (LPH)
Assignment Type: Formal Report
Word Limit: 3000 words (+/- 300)
Weighting: 100%
Issue Date: 04/04/2022
Submission Date: 15/06/2022
Feedback Date: 29/06/2022
Issued by: Anuj Batta
Plagiarism:
When submitting work for assessment, students should be aware of the
InterActive/Canvas guidance and regulations in concerning plagiarism. All
submissions should be your own, original work.
You must submit an electronic copy of your work. Your submission will be
electronically checked.
Learner declaration
I certify that the work submitted for this assignment is my own and research sources
are fully acknowledged.
Student signature: Date:
Harvard Referencing:
The Harvard Referencing System must be used. The Wikipedia, [Link] or
similar websites must not be used or referenced in your work.
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Introduction:
This assignment gives you the opportunity to evaluate and critically analyse aspects of
operations management in the hospitality sector. You are given a case study where you need
to elaborate a thorough decision-making framework and also to provide a report. You are
required to write a formal business report that covers the assessments tasks set out below. The
individual performance and grading are according to BSBI’s grading criteria where additional
marks will be awarded for possible connection of your answers.
Learning Outcomes:
LO1. Critically evaluate the informational content of financial statements and their use as a tool for
appraising a company’s performance and recommend, using the literature and research, contemporary
methods that may provide enhanced information about performance.
LO2. Critically apply management accounting techniques for short-term and complex long-term
decision making within a tourism, hospitality and events management environment and provide the
appropriate narratives to aid decision making.
LO3. Critically evaluate and apply contemporary techniques for the effective management of
working capital within a tourism, hospitality and events management environment and provide the
appropriate narratives to aid decision making.
LO4. Critically examine the role of budgeting in organisations and its effectiveness in the modern
business environment, particular in a tourism, hospitality and events management environment and
consider contemporary alternatives and critically evaluate their benefits and issues.
Assessment Criteria: Weighting 100%
Written Report: 3,000 words
Tasks (All tasks are equally
weighted): Tasks
A. Introduction
(I) The story of the Luxus Plaza Hotel (LPH) and Types of Decisions
The Luxus Plaza Hotel (LPH) was a luxurious boutique hotel in Central Europe. The
hotel started out as a 20-bedroom boutique hotel, but recently relocated into a new
building with 120 rooms. Mrs. Mitt Haussen, the hotel manager, designed a unique
hotel that prides itself on providing excellent customer service with high-quality
individually designed rooms and a top-class dining experience.
However, since moving into the 120-room hotel, the reservations and reception
manager, Mrs. Claudia Schiffer has become increasingly worried about the level of
service. Mrs. Claudia says, “When we had 20 rooms it was easy to provide a quick
check in with our registration forms and folder of repeating customers. But now, it can
be chaotic, particularly at check-out time when everyone can arrive 5 mins before
checking out time expires. The reception just can’t cope with this high volume.”
She goes on to explain,
“I used to have 3 receptionists and they all knew what to do, I now have 6 and they don’t
seem
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to understand the reservation process, I ended up with double-booked rooms and all sorts of
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problems that I have to fix. I wish I had time to sit down and make a clearer process
and train everyone, but at the moment, I have too much to do making sure the
customers are happy.” The problems at LPH reception create problems for
housekeeping. Mrs. Maria Adler explains, “They don’t seem to have a clue which rooms
are occupied, and which aren’t. My poor ladies are running from room to room trying to
figure out which ones need a full service clean and which are occupied and need
tidying. We’re fed up of striping and re-making beds when the customer is staying in
the room. Claudia needs to sort this out; she just can’t cope on reception at the moment
and is making more work for us.”
It’s not only LPH reception that is struggling to cope, head-chef Mr. John Callard
explains, “We have a famous restaurant in the LPH. It serves not only hotel
customers but also clients from the nearby town who visit the restaurant to experience
the selected dishes of Chinese and Greek Cuisine. When I had a smaller kitchen with a
capacity of 50 covers at a time, I could ensure the quality of the meals and that they
were delivered quickly to the restaurant or on to room service. But now, I have more
sous-chefs and waiters, but I simply cannot do it all. There needs to be some division
between room service and covers in the restaurant, I cannot be responsible for both.
My reputation for excellence is at stake.”
Mr. Callard is also worried about the lack of
variety. He says,
“I have no time to develop new specials or a changing menu that compliments the
season, I fear I will end up using the same menu for months and months, but worst of
all, I fear that LPH is becoming like a chain hotel.”
Mrs. Haussen is deeply troubled by the troubles that LPH is having, and she
concludes: “Maybe scaling up the hotel was not a good idea. I’m scared I will lose my
loyal customers. I think we need a more efficient way of serving our customers and
monitoring our service. I think for us to continue we need to think carefully about our
processes and use technology to help us know our customers and serve our
customers better.”
The LPH is struggling with its expansion and finds that becoming a larger business is
more complicated.
(II) Question – Set No1
After you read the Introduction Section, please proceed to answering the Question No1:
Question No1 (LO 1 and LO 2)
It seems that in the LPH they do not have clear processes or a system to support their
decision- making.
(A) Firstly, consider the different decisions they are making in the different parts of the
business:
1. Strategic
2. Tactical
3. Operational
(B) Summarize the types of decisions made at each level (top-level; tactical and operational)
for LPH, by making a table.
B. Survey for the LPH Restaurant’s Services (LO3 and LO 4)
Recent data (taken out of a survey of 1,499 adults’ users (customers of the Hotel’s
Restaurant Cuisine) provided important information for the Hotel’s administration depicted
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in Tables 1, 2 and 3.
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Table 1. LPH Restaurant’s Customers’ Evaluation
Average Customers
Number of Evaluation
Attributes Percentage (%) participants in (i.e., value of 1 that
adheres to the worst-
the survey case evaluation up to
10 for
the best-case evaluation)
Cleanliness and hygiene 24,05% 361 5.5
Well-cooked/good food 19,93% 299 8
Efficient and pleasant 4.5
service 12,71% 191
Atmosphere 8,59% 129 2.5
Price range 8,25% 124 5.8
Type of food 7,56% 113 8.9
Clear prices/prices 8.2
shown 4,47% 67
No smoking areas 4,47% 67 2.3
Convenient location 4,12% 62 2.7
Facilities for children 3,09% 46 8.1
Interesting/pleasant 4.5
decor 1,37% 21
None of these/don’t 5
know 1,37% 21
Total Sum 100% 1,499 Average Evaluation
customers 5.5
Table 2. LPH Customers’ preferences for Restaurant’s Cuisines (*)
Age and Income Class Chinese Cuisine (%) Greek Cuisine (%)
All 41 26
Ages between 15 to 24 41 15
Ages between 25 to 34 49 19
Ages between 35 to 54 48 25
Ages of 55+ 27 39
AB (*) 42 30
C1 (*) 40 27
C2 (*) 41 22
DE (*) 40 25
(*) Notes
A = Upper middle-class
income B = Middle-class
income
C1 = Lower middle-class income
C2 = Skilled working class
D = Working class
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E = Lowest income levels
Table 3: LPH Restaurant’s Revenues for 20XX (Food & Beverages-F&Bs) in €
Type of Customers’ 1st half of the Year 20XX 2nd Half of the Year
20XX
Hotel Customers 52,000€ 102,000€
Outside Customers 102,500€ 98,000€
(for the Chinese Cuisine)
Outside Customers 105,000€ 87,000€
(for the Greek Cuisine)
Total 259,500€ 287,000€
(III) Question Set No2
A. According to the Tables 1, 2 and 3, provide a short report in document (i.e., in the
Assignment, not in a separate file) with appropriate descriptive statistics to elaborate a
thorough opinion towards the key characteristics of the Restaurant’s services offered
to its customers.
B. Can you provide some advice to Mrs. Haussen towards a new management approach
for the LPH Restaurant’s operation?
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GUIDANCE ON ASSESSMENT
All materials must be properly referenced under Harvard conventions. The length required is 3,000 words with tasks equally weighted. The writing style should be formal academic
/ report writing style with in-text referencing to support your comments and observations. Originality, quality of argument and good structure are required The report should
demonstrate sound understanding and ability to apply knowledge and theory of in hospitality context with Additional marks being awarded for juxtaposition and insight of issues.
Grading Criteria
Generic Criteria 90 - 100 80 - 89 70 - 79 60 - 69 50 - 59 40 - 49 30 - 39 0 - 29
Knowledge of contexts, Exceptional and Excellent and highly Comprehensive critical Significant Sound understanding of Passable understanding Insufficient Very poor
concepts, technologies and remarkable critical sophisticated critical understanding of current understanding of current knowledge of current of knowledge of understanding of demonstration of
processes understanding of current understanding of current issues and historical contexts issues and historical issues and historical current issues and knowledge of the understanding of
The extent to which knowledge issues and historical issues and historical much of which is at, or contexts, much of which is contexts, some of historical contexts, contextual, historical contextual, historical
is demonstrated: contexts demonstrating contexts demonstrating informed by, the forefront of at, or informed by, the which is at, or some of which is at, or or theoretical issues or theoretical issues
relevant contextual or knowledge at the forefront knowledge the discipline. forefront of the discipline. informed by, the informed by, the that inform the that inform the
theoretical issues are identified, of the discipline at the forefront of the forefront of the forefront of the discipline. discipline.
defined and described discipline discipline. discipline.
historical or contemporary Exceptional and highly Comprehensive knowledge of Significant knowledge of the
practices are identified, defined original understanding of An excellent and highly techniques and processes, and a techniques and processes
and described techniques methods and impressive understanding critical understanding of their applicable to understanding
appropriate technologies, processes of techniques, materials potential to advance scholarship research and advanced Sound knowledge of the Acceptable knowledge Insufficient Very weak knowledge
methods and processes are
and processes in the discipline. scholarship in the discipline techniques and processes of the techniques and knowledge of of technologies,
identified, defined and
described applicable to research processes applicable to techniques methods and processes
and advanced scholarship research and advanced applicable to
in the discipline scholarship in the research and
discipline advanced scholarship
in the discipline.
Level 7
Understanding through Exceptional and Excellent and highly Rigorous use of established Confident use of established Sound use of established Passable use of Insufficient use of Inability to use and
application of knowledge remarkable demonstration sophisticated methods of research combined methods of research methods of research to established methods of existing interpret existing
The degree to which of research methods demonstration of research with the ability to generate new combined with the ability to develop and interpret research to develop and methodologies to research
research methods are which generate highly methods leading to concepts or insights into existing recognise new concepts existing knowledge. interpret existing develop knowledge. methodologies
demonstrated: developed critical insights impressive critical insights knowledge. using existing knowledge. knowledge.
into existing knowledge into existing knowledge
relevant knowledge and Inability to fully
information is compared, Exceptional and Critical evaluation of current Critical evaluation of Evidence of critical understand or
contrasted, manipulated, remarkable critical Excellent and highly knowledge to evaluate Critical evaluation of current current knowledge and evaluation of current interpret relevant
translated and interpreted evaluation of existing sophisticated critical methodological practices and knowledge to analyse recognition of knowledge and knowledge and
knowledge and information knowledge leading evaluation of existing propose new hypotheses. methodological practices methodological practices. recognition of methodological Little or no ability to
is selected, analysed, directly to new knowledge working and propose hypotheses methodological practices. practices. evaluate existing
synthesized and evaluated hypotheses towards new hypotheses Sound judgements made knowledge
in order to generate Carefully considered Informed judgements made on complex research Passable judgements
creative ideas, solutions, Exceptional and Excellent and highly judgements on highly complex on highly complex research problems showing made on complex Research problems
arguments or hypotheses remarkable judgements sophisticated judgements or ‘under-researched’ problems problems showing evidence evidence of systematic research problems are insufficiently Inability to define a
made in relation to made in relation to showing evidence of systematic of systematic analysis and analysis and deduction showing evidence of complex and require research problem and
creative practice, current creative practice, current analysis and deduction and deduction and creative and creative processes to systematic analysis and mainly routine to generate solutions
ideas, arguments and ideas, arguments and creative processes to resolve processes to resolve them resolve them. deduction and creative analytic and creative or hypotheses through
hypotheses hypotheses them. processes to resolve processes to resolve research and practice
them. them.
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Application of technical Exceptional and Excellent and highly Evidence of a high level of Evidence of the critical and Evidence of the Evidence of the Inability to Very poor ability to
and professional skills remarkable critical and sophisticated critical and critical and evaluative skills in evaluative skills necessary critical and critical and demonstrate the apply appropriate
The degree to which: evaluative skills utilised evaluative skills utilised order to create original solutions to construct solutions to a evaluative skills evaluative skills critical and materials and media to
leading to highly leading to impressive to a range of highly complex range of complex problems necessary to identify necessary to identify evaluative skills present ideas and
appropriate materials and original solutions to very solutions to very problems. solutions to a range solutions to a range necessary to identify solutions
media are selected, complex problems complex problems of complex of varied problems. solutions to
tested and utilised to Application of advanced Application of advanced problems. problems
realise and present ideas Outstanding application Highly impressive skills, techniques and processes skills, techniques and
and solutions of advanced technical application of that challenge knowledge and processes that contribute to Application of advanced Very poor judgement
appropriate technologies, skills that fundamentally advanced technical understanding of the discipline. knowledge and Application of advanced skills techniques and Insufficient ability to shown in choice of
methods and processes challenges current skills that challenge understanding of the skills techniques and processes that sustain demonstrate the methods and processes
are demonstrated understanding and current understanding Demonstration of a very high discipline. processes that sustain independent learning in skills necessary for
transferable, professional practices and practices level of professionalism, self- independent learning in the discipline. sustained
skills are effectively management and independent Demonstration of a the discipline. independent learning Inability to manage
demonstrated Exceptional and Excellent demonstration of learning competent level of Acceptable self, meet deadlines,
remarkable demonstration professionalism, self- professionalism, self- Clear demonstration of demonstration of work professionally
self management and of professionalism, self- management and management and professionalism, self- professionalism, self- Insufficient evidence and independently
independent learning management and independent learning independent learning management and management and of professional and
are demonstrated independent learning independent learning independent learning transferable skills