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Unit 54 Business Skills for Proposals and Pitches Assignment
Diploma in Business
Unit Number and Title
Unit 54 Business Skills for Proposals and Pitches
For an organization to be dominant in a particular industry or in a market, it will have to continuously monitor its business environment. The trends and the expectations of the customers are changing continuously which is supposed to be identified for the survival of the business. If an organization achieves a dominant position in the market and remains inactive in the market then it may get wipe out of the industry. Hence it becomes essential for the management of the organizations to conduct industrial researches in the existing and new markets. This will enable them to identify new trends in the industry and in the new markets which can help them to develop new business ideas, products and services (Chon, Barrows, & Bosselman, 2013). This reports speaks about the relevance of the market research, business ideas etc which can help the management to make the organization survive out of the financial crisis. An organization in the hospitality industry is considered which is having financial crisis. New business ideas are proposed for the organization for changing the current business situation of the organization. Industrial and new market research are conducted to identify the new trends in the industry and in the market. Business ideas are also developed for the market identified.
An organization operating on the hospitality industry is taken into consideration here. This organization belongs to the luxury hotel sector of the hospitality industry. As far as a hospitality organization is taken into consideration, it will have to face high degree of competition. Here the organization is facing financial difficulties and this reports highlights the market researches conduced and new business ideas for sorting out the present problem situation. For serving this purpose a new deluxe suit MegaSuit which includes some special attractions can be introduced focusing the first class and the business class customers.
A. Conduct market research in a particular business area using appropriate online resources including market and industry reports.
Secondary market research is performed for identifying the particulars of the business operations, trends, growth, opportunities etc of the hospitality business area. Here the outcome of the secondary research is obtained through conducting research using various online resources, publications, journals, articles etc. Hospitality industry in UK is a flourishing industry and it is gaining high degree of importance as the travel and tourism industry is gaining momentum. This business area includes the hotels, restaurants, pubs etc which can entertain the tourists with food and accommodation. Not only in UK, this industry flourishing throughout the world. The trends and the customer preferences of this industry may vary from one customer to another (homme & Raymond, 2013).
According to a research conducted in 2010 the guests of the hospitality industry especially at hotels the people wants to be at home. The corporate business organizations are ready to invest in this business area forecasting the future and opportunity of this industry. The offerings like the free breakfast and internet access are outdated nowadays and the people consider this as a standard or mandatory offering. Hence the MegaSuit will have to find more for differentiating themselves from of others. This research also reveals that the introduction of flat screen televisions in the hotel rooms has added value to the hotels. Hence product or service differentiation based on the preferences of the customers in the market is identified as very vital in this business area.
According to another report on 2015, it has been identified that the Canadian hotel industry has achieved the occupancy rate of 74.6 percent which shows a positive perception in this business area. In US the revenue generated from this industry is around 5.7 percent per available rooms. From this statistical report it is evident that this business area can generate good revenue for the organizations in the hospitality industry if implemented the business plans efficiently (Bowie, & Buttle, 2013). The introduction of the new deluxe suit MegaSuit can make the service provided by the organization differentiated and perceive the customers with the standardization in the customer provisions.
B. Select one market and evaluate the current trends in that market.
For the purpose of the evaluation of the current trends the market UK is taken into consideration in this report. In UK the hotel industry is having a good boom as it has many historical heritage spots. This has generated a huge inflow of the tourist to UK and hence the priority for the hospitality industry also gathered momentum. According to the forecast 2015 the resilient economy of the UK has contributed to the development and growth of this industry in UK. As the market UK is associated with various holiday spots and the heritage monuments the customers or the tourists of the nation prefers and expects to have those cultural values in their food and accommodations. The heritage inn which provides a historical and cultural experience of UK has now become an important trend in the UK market.
The environmental sustainability for MegaSuit can be considered as another trend in this market. The business operations of the hotels can cause harm to the society and the environment in some way or the other. The population and the government of the UK are more concerned about the public health and the sustainability of the environment. The accommodation and service standards are the other trends. Due to high degree of competition in the UK in the hospitality industry the hotel sectors are providing high quality customer service and standard so as to achieve competitive advantage and to remain dominant in the market. The development of the technology has also become the most modern trend. The service provision of the online bookings, the applications of the hotels which can be downloaded in the smart phones of the customers etc act as a revolutionary trend in the hospitality industry.
C. Within that market choose a particular product or a service and analyse its strengths and weaknesses.
The new product deluxe suit MegaSuit is a luxury product which includes the attractions like
- Minimum 33 m2 / 355.2 ft2
- Ergonomically designed workspaces
- Vi-Sprung mattresses
- Samsung digital systems with over 400 complimentary TV channels
- Complimentary 100MB high speed wireless Internet throughout the hotel
- Complimentary web printing service
- Direct dial telephone numbers
- International sockets
- 'In hotel' mobile phone hire
- Working desk
- Nespresso machine
- MegaSuit can satisfy the expectations of the customers who look for comfort; standardization, etc (Jones, 2014). This product meets the business needs and requirements of the first class customers.
- The market has high potential customers and various holiday spots, hence this quality and standardized product can attract the business class and high class customer prefers
- Through providing high quality service MegaSuit can attract more customers to their other accommodation and food service too.
- The introduction of MegaSuit can enhance the competitive advantage of the organization and can add value to its reputation.
- Since almost all hotels in this industry provide this service, the organization will have to face severe competition.
- For providing quality service the organization will have to focus on recruiting good and talented staffs.
- Any pitfall in achieving the quality standards can lead to negative perception among the customers.
A. For your selected product/service analyse the macro-environment through the use of a PESTEL analysis.
Through performing PESTEL analysis the organization can evaluate macro environment of the organization. The success rate of the service introduced can be evaluated through this analysis. For the service event management, the macro environment is analyzed through the use of the PESTEL analysis.
- Political: The political environment of the hotel is very stable as the UK government supports the growth and development of the hospitality industry. The introduction of the new service does not have to face any political impact in the UK market.
- Economical: The UK economy is very stable which can contribute to the success of the new service. This enables the organization to invest in the new product MegaSuit through financing with stable interest rates. The revenue generated through this new service can also contribute to the revenue generation of the nation through hospitality industry which can influence the economy positively (Gustavo, 2013).
- Social: Almost all families in the population of the market UK are having dual income. They also look for highly standardized service and prestige. This social characteristic of the UK population is quite promising to the success of the MegaSuit.
- Technological: The MegaSuit is associated with the latest technological adoption which provides the business class people to manage business from the room itself.
- Environmental: The MegaSuit cannot cause much harm to the environment and its implementation can be performed through adhering to the environmental laws. .
- Legal: The legal constraint can certainly influence the MegaSuit. Some of the regulations like the employee rights and benefit acts prevailing in the UK, fair and honest dealing etc can control the activities.
B. For your selected product/service select a target market through the process of market
Segmentation: Segmentation is the process through which a target market is identified and selected for the purpose of marketing and promotional activities. Segmentation can be performed by considering the similarity in the buying behaviour of the customers, requirements etc (Weinstein, 2013).
- Geographic Segmentation: Since the UK market is associated with many reputed business organizations and holiday spots, they can be considered as the target market MegaSuit.
- Demographic Segmentation: The high class and the business class people of the UK population can be segmented for the new product MegaSuit as they prefer comfort and technological advances.
- Psychographic Segmentation: The customer who prefers high class life style and standardized services can be focussed for MegaSuit.
- Behavioural segmentation: Based on the reaction of the customers to the new product MegaSuit the customers of the UK market can be grouped.
C. For your selected product/service analyse the micro-environment through the use of Porter’s five forces analysis.
Through porter’s five forces analysis the management can analyse the business environment and can identify the present situation of the new MegaSuit and can formulate appropriate strategies to achieve success.
- Threat of new entrants: This factor is medium as far as the event management is concerned. The probability of hotels to start this new MegaSuit is medium. Since it requires a good investment for developing a quality, standardized and luxury suits the small hotels may neglect providing this service.
- Bargaining power of customers: The customers can bargain for high quality service and this factor is very high for the service. The customer can switch to any other reputed hotels if they have any issues with the service
- Bargaining power of suppliers: The suppliers for this service may also possess demands as there are many hotels offering this service. Prior booking and nice relationship is very essential here (Franek, & Kresta, 2013).
- Threat of substitute products: This force is having less influence as far the luxury accommodation is considered as no service can be replaced with this.
- Competitive rivalry: The competition in this industry is very high as there are many hotels providing the same service.
D. Based on the research that you have conducted, justify the suitability and feasibility of this strategy.
As per the market research conducted in the hospitality industry UK is a market where the hospitality industry is having a dominant position. The government of the market also supports the growth and development of this industry. Hence the political and legal interference will be very less for the introduction of the new service. If a well defined business paln is produced which is confined to all rules and regulations and submitted the organization will certainly get the approval (Jiang & Schmader, 2014).
The economic and the social conditions of the market are also stable which provides potential customers to the new service. If the organization could exhibit high quality service and standards via MegaSuit then certainly it may gain success. The customers also prefer this service and are looking for differentiated services which provide a good opportunity. If the organization could perceive the target customers and could create a positive perception then this service can generate huge revenue and reputation for the organization. This can eliminate the present financial crisis of the organization.
Hence the introduction of the new product luxury deluxe suit MegaSuit can certainly gain the attraction of the customers and can generate revenue for the organization.
A. Pre-meeting communication
As we all know that we are assigned to develop new business ideas for supporting the present situation of our organization. I appreciate your support and commitment which you have shown by taking the responsibility of developing new business ideas. The development or the introduction of the new product MegaSuit can certainly contribute to the elimination of the financial crisis of our organization. Lots of research and identification are required for identifying an appropriate product or service for our organization.
As we discussed in our previous meeting with our respected CEO we are supposed to develop a business plan for new product MegaSuit and services individually. Now our CEO has announced another meeting on which we are supposed to exhibit and highlight our business plans with relevant documentations and presentations. In this meeting you can highlight your research methods and can justify the reasons for which you have selected your product. You can also add value to your justifications by highlighting the benefits which your product or service can gain for the organization. Our CEO will be chaired in the meeting and based on our presentations one product or service will be selected for moving forward.
So I request for your participation in the meeting and to exhibit your valuable opinions and findings. The meeting will be held tomorrow at 10.30am. Kindly ensure your participation.
B. Participating in a formal meeting and presenting a proposal
The business idea of the MegaSuit can be presented in the meeting which is chaired by the CEO and other fellow directors. The fellow directors also present their business ideas and one product or service will be selected for the further processes.
Business Proposal:From the research and the various analysis performed I have identified that the product or service differentiation is very important for our organization. Since an entirely new product or service development and its experimentation will be risky and costly for our organization when our present financial situation is considered, I would suggest our team to introduce new luxury deluxe suit MegaSuit for the high class and business class. As this service is practiced by many of our competitors and are generating huge revenues we can fearlessly enter into this service (Collis, & Hussey, 2013).
As per the PESTEL and porters five force analysis this method can be identified as a less risky but more productive method for enhancing the profit margin. Our target marketing is highly potential to accept this service and if we could deliver a high quality service with competitive standards and prices we can reach our objective or eliminating the financial crisis. Apart from these through introducing this product the standard and our reputation will be developed and we will also get more customers for our accommodation and food service. The findings and the identification of the new products or services by my fellow directors are also excellent. But they focused on developing entirely new products and the introduction of online facilities. Even though the methods suggested by my fellow directors are effective they cannot generate much income which can resolve our present problem financial crisis. We need to get the customer attraction and should gain more profit through the introduction of a risk free product or service. Hence I suggest our team to go forward with the introduction of these deluxe suits for the benefit of our organization (Bryman, & Bell, 2015).
C. Produce a brief but formal record of a meeting
A formal meeting of XYZ organization is duly held on 30.06.2015 at 10.30am. The meeting was chaired by the directors of the organization and the CEO. I was assigned to record the minutes of the meeting and I act as one of the directors of the organization. The directors of the organizations presented their new business proposals and ideas which cloud meet the current requirement of the organization. Each director highlighted and explained how their product or service could serve the current requirement. They also commented on the products and services of the other directors and justified their own products. The current issue of the financial crisis and the completion of the hospitality industry have been discussed by all the directors and suggested their products for eliminating those issues. Finally the service luxury deluxe suits are taken into account by the CEO by considering its benefits. The further movements for the implementation of the new business plan are asked to prepare by the CEO. The meeting took approximately 1 and half hours of discussion which got ended up at 12 pm.
D. Critical evaluation
The main purpose of conducting the meeting was to discuss about various new products and services which can be introduced in the organization. The financial situation of the organization is the main issue which the organization is currently facing and the introduction of the new product is to resolve this existing problem. Through the meeting the team has identified a new service which can be introduced in the organization that is deluxe suit MegaSuit. The outcome of the meeting seems to be appropriate as the service deluxe suit MegaSuit meets the current requirement of the organization. Since this method is widely practiced in the industry the success rate is very high. In the meeting it has been specified that this service can also contribute in the revenue generation of the organization. Since it serves the primary purpose of the organization and can achieve competitive advantage, this service will be appropriate for the organization (Hair et al, 2015).
A. Critical evaluation
The task of conducting research on the market and to identify specific products and services for the organization has been assigned to us. Each one in the team is the directors of the organization who holds some responsibilities. Everyone including me has exhibited a good performance in the meeting. My team has identified their own new products or services by conducting intense market research and various analyses like pestle analysis and porters five force analysis. Every one put their maximum potential to identify the appropriate product which can resolve the financial crisis of the organization. From this group work it can be learnt that the management should always focus on identifying the changing trends and customer preferences in the industry. The hospitality industry is very competitive. The periodic market research and evaluation of the current products and services can help the management to identify the competitive level. Through this efficient strategies can be formulated for gain a competitive position in the market. Through such activities the situations like financial crisis can be eliminated.
If such a similar task is given in the future some of the improvements can be made on it like
- A detailed study on some of the potential markets can be performed.
- The activities of the competitors can be monitored and recorded.
- Primary research can be conducted to identify customer preferences.
Unit 54 business skills for proposals and pitches assignment has been prepared based on an organization in the hospitality industry which is a financial crisis situation. Research has been conducted on the hospitality industry and the market UK to identify the market trends. A new product MegaSuit has been suggested for the organization. A business plan is developed and presented in a meeting. The outcome of the meeting and the individual performance is critically reviewed.
Bowie, D., & Buttle, F, 2013, Hospitality marketing. Taylor & Francis
Bryman, A., & Bell, E, 2015, Business research methods. Oxford university press
Chon, K. S., Barrows, C. W., & Bosselman, R. H, 2013, Hospitality management education. Routledge
Collis, J., & Hussey, R., 2013, Business research: A practical guide for undergraduate and postgraduate students. Palgrave macmillan
Franek, J., & Kresta, A, 2013, Competitive strategy decision making based on the five forces analysis with AHP/ANP approach.
Gustavo, N, 2013, Marketing management trends in tourism and hospitality industry: Facing the 21st century environment. International Journal of Marketing Studies, 5(3), p13.
Hair Jr, J. F., Wolfinbarger, M., Money, A. H., Samouel, P., & Page, M. J, 2015,Essentials of business research methods. Routledge
Jones, M, 2014, Sustainable event management: A practical guide. Routledge
Jiang, J., & Schmader, S. W, 2014, Event Management Education and Professionalism: The View from the Trenches. Event Management, 18(1), 25-37.