Chapter No. 1
EXECUTIVE SUMMARY
Holiday Inn Multan is only international standard hotel in Multan. Structure at Holiday Inn Multan is divided into eight departments. The management of hotel is used strategic management concept and they find their strength and weaknesses through the process of internal assessment. The tools for gathering the data is feed back from Guest Comment Cards, Inspection by head office, complaints, Inspections by G.M., Manager on special duty and this data is assimilated and evaluated in meeting where the strategies are built to eliminate the problems and gain competitive edge over competitors.
Chapter No. 2 Literature Review
INTERNAL ASSESSMENT
Internal Audit is the part of the strategic Management process. All organizations have strengths and weaknesses in the functional areas of business. Internal strengths /weaknesses coupled with external opportunities/Threats and a clear statement of mission are establishing objectives and strategies. Objectives and strategies are established with the intention of capitalizing upon internal strength and overcoming weaknesses.
The key internal forces include.
q Management
q Marketing.
q Finance/Accounting
q Production/Operations
q Research and development.
q Computer information system
There are many areas with in these function, such as customer service, warranties, advertising, packaging under marketing.
REASON FOR AUDITING
A firm strength that cannot easily matched with competitors are called distinctive competencies .Building competitive advantages involves taking advantage of distinctive competencies. For example, 3M exploit its distinctive competence in research and development by producing a wide range of innovative products. Strategies are designed in part to improve on a firms weaknesses, turning them into strengths, and may be even into distinctive competencies.
THE PROCESS OF PERFORMING AN INTERNAL AUDIT
Representative managers and employees from throughout the firm need to be involved in determining a firms strengths and weaknesses. The internal audit requires gathering and assimilating information about the firms management, marketing, finance/accounting, production/operations, research and development, and computer information systems operations.
Compared to the external audit, the process of performing an internal audit, provides more opportunity for participants to understand how their jobs, departments, and divisions fit into the whole organization. When marketing and manufacturing managers jointly discuss issues related to internal strengths and weaknesses, they gain a better appreciation of issues, problems, concerns, and need in all the functional areas. In organizations that do not use strategic management, marketing, finance, and manufacturing managers often do not interact with each other in significant ways. performing an internal audit thus is an excellent vehicle or forum for improving the process of communication in organization.
MARKETING
Marketing can be described as the process of defining, anticipating, creating and fulfilling customers needs and wants for products and services .
There are the nine basis functions of marketing.
1. Customer Analysis
2. Buying Supplies
3. Selling Products/Services
4. Product And Service Planning
5. Pricing
6. Distribution
7. Marketing Research
8. Opportunity Analysis
9. Social Responsibility
MANAGEMENT
The function of management consists of five basic activities.
Planning
planning consist of all those managerial activities related to Preparing for the future.
Organizing
Include all those managerial activities that result in a structure of task and authority relationships.
Motivating
Motivating involves efforts directed towards shaping human Behavior.
Staffing
Staffing activities are centered on personal on human resource management.
Controlling
Controlling refers to all those managerial activities directed towards assuming that actual results are consistent with planned results.
Finance / Accounting
Financial condition often considered the single best measure of a firms competitive position overall attractiveness to investors determining an organizations financial strengths and weaknesses is essential to formulating strategies effectively. A firm’s liquidity, leverage, working capital, Profitability, asset utilization, cash flow and equity can eliminate some strategies as being feasible alternatives financial factors often alter existing strategies and Change implementation plans.
Production/ Operations
The production/operations functions of a business consist of all those activities those transform inputs into goods and services production/ operation management deal with inputs transformations and outputs that vary across industries and market Production/Operations management comprises five Functions or decision areas.
Ø Process.
Ø Capacity.
Ø Inventory.
Ø Workforce.
Ø Quality.
Research And Development
The fifth major area of internal operations that should be examined for specific strengths and weaknesses is research and development.
Many firm conduct research and development. The best managed firms today seeks to organize research and development activities in a way that break the isolation of R&D form the rest of the company and promote a sprit of partnership between R&D managers and the others managers of firm. Research and development in firm can take two basic forms
Internal research and development in which an organization operates its own R&D department.
External research and development: in which a firm hires independent researchers and independent agencies to develop specific product.
Computer Information Systems
Computer information systems purpose in to improve the performance of an enterprise by improving the quality of managerial decision.
A computer information system receives raw material from both the external and internal evaluation of an organization. It gathers data about marketing, finance, production and personnel matters internally and social ,cultural, demographic, environmental and other technological and competitors factor externally. Data are integrated in ways needed to support managerial decision making.
Chapter No. 3 Organization’s History
HOLIDAY INN
History of hotel industry
The Hotel industry is among the top three constituents of the world economy after oil and autos growing faster than the petroleum and arms. It is larger than automobile industry in Japan, agriculture in the U.S.A. and banking in Switzerland.
Although service concern industries are contributing for the comfort and business provision for the people all over the world but it took long time to recognize hotels as the main and most useful industry in Pakistan. The path of recognition to this industry was paved in 1980 when Prime Minister of Pakistan “ Benazir Bhutto’ declared it as a industry under certain act.
It leads to the development of hotel industry. It helped the owners of the hotel to think more seriously so that hotel can provide the benefits to the economy of our country through attracting foreign tourists in this region.
The industry in Pakistan is not very large to begin with . The major player are of course the Pearl Continental, Sheraton, Marriott and Holiday Inn chains and then there is a Serina hotel chain which is basically at the more prominent tourist spot.
v PEARL CONTINENTAL.
v SHERATON.
v MARRIOT.
v HOLIDAY INN WORLD WIDE.
Introduction of Holiday Inn world wide
HIWW is the largest hotel chain offers the exceptional value service in more than 80 countriesof the world with more than 1900 resorts world wide. With 5 hotels types. HIWW is was established in 1950 . There is also a Holiday Inn hotel for every travel occasion. It is owned by Bass International based in America .
MAJOR TYPES OF HOLIDAY INN
1. Holiday Inn Crowne Plaza
These are Holiday Inn World wide premier properties located in major gateway cities and designed primarily for business travelers. These include Crown Plaza club floors, lounges, and comprehensive meeting rooms, executive rooms, and health club with pool. Holiday Inn Crowne plaza hotels in Europe , Africa and Asia pacific provides outstanding sport for business travelers , superior meeting facilities and a professional conference staff , plus intensive business services .
2. Holiday Inn Crown Plaza Resort
Crowne Plaza Resort in Europe , Africa and Asia Pacific also provide extensive health and fitness facilities as well as leisure service/concierge desk to assist in arranging resort activities which include supervised programs. These hotels are located in premier resorts destination worldwide. They offer high caliber resorts experience at excellent value for money.
3. Holiday Inn Hotels
Holiday Inn hotels are Conveniently located in small towns, gateways near airports for business and shopping throughout the world. They provide a restaurant , a lounge ,Business Center and a range of different facilities .
4. Holiday Inn Resort
Holiday Inn Resort located in inviting resort destination around the world. Holiday Inn resort features a full array of activities for families including children’s club .They are also known as Holiday Inn “Sunspree Resort” in America.
5. Holiday Inn Express.
Holiday Inn Express are simplified version of traditional hotels designed for travelers who do not want or need full service. In Asia Pacific each hotel has a restaurant , a breakfast bar and a rapid check in/out .
Asia Pacific
Asia Pacific region offers around 77 hotels situated in 16 countries of Asia offering about21,000 guest rooms. Asia Pacific countries are controlled by the head office situated in Hong Kong.
Holiday Inn In Pakistan.
In Pakistan HIWW has a chain of 4 hotels.
1. Holiday Inn Crowne Plaza Karachi.
2. Holiday Inn Islamabad.
3. Holiday Inn Multan.
4. Holiday Inn Lahore
Holiday Inn Multan
Established in October 1994, situated at 76-Abdali Road Holiday Inn Multan is the only international standard hotel in Multan. It is a beautiful combination of quality and business facility for travelers and business community. Being situated in the business locality of Multan it is now approaching towards the international standard by attracting the business of Pharmaceutical Companies, Embassy, and Foreign Travelers and has opened its gate for the tourists in this region . Holiday Inn Multan is working with 216 employees , has 98 rooms and 3 banquet halls with a very little parking lot .It is almost a three star hotel having an area of 2000 yards.
ORGANIZATION SETUP OF HOLIDAY INN MULTAN
Holiday Inn Multan officially announced in July 95 have adopted a functional structure . Basically HIWW is a “Franchised System” in which a main quality control head office is established and the Franchise is granted to different owners of the hotels. The hotel , in turn pays the royalty for the name “Holiday-Inn” and strictly implement the standards.
Structure of HIM is divided on the basis of functions. Following departments are presently working in the hotel .
v General Account Department
v Front Office and Reception
v Food & Beverages
v Sales & Marketing
v Engineering
v Laundry
v House Keeping
v Human Resource Department
Beside this, hotel has 3 major outlets
v Mehfil Restaurant
A buffet corner for Continental and Pakistani dishes.
v Shang Palace
Offering typical Chinese food in sophisticated ambience with moderated price.
v TGI-76
It provides 24-hours service , Hi-tea, snacks and ice-cream to customers.
Hotel has overall 98 rooms with 5 suits. It also has 3 banquet halls, 5 small meeting rooms,swimming pool and direct access to the world wide reservation through Holidex System.
Chapter No. 4 Case Study
Internal Assignment in Holiday Inn Multan
This report covering the procedure of internal assignment at Holiday Inn Multan. For different types of organization such as hospital universities Govt. agencies and hotels the functional business areas of course differ. So structure at holiday Inn Multan is divided on the basis of function following department are presently working in the hotel.
v General Account Department
v Front Office and Reception
v Food & Beverages
v Sales & Marketing
v Engineering
v Laundry
v House Keeping
v Human Resource Department
There are many sub-area in these department like in HRM department the sub-area is security checkup and in general account department sub-area is purchase department.
As in one country majority of population proves to be laggards this is all become of literacy rates and limited scope. Especially in Multan people still think a hotel to be a luxury because of social back ground Holiday Inn Multan had to face great problems in the beginning but its management tried hard to change the concept of management and making them aware of “what is called International STD” people are only price conscious not quality so business is not growing much faster.
As requirement of our , we first give process of performing internal and audit then there strength and weakness overall and with respect to every department.
Process of Internal Audit at Holiday Inn Multan
The process of internal audit at Holiday Inn Multan carried out in different ways. First the information are gathered them assimilated and evaluated.
Following are the ways through which information are gathered in the organization.
Forms
The head office send form to Holiday Inn Multan. The main content of this form is about all services and product offering in the hotel. Guest fill this form at the time of check out. These forms are only available in room. The management of Holiday Inn Multan take special care of these form because it is necessary for them to send same number of form back to head office at the end of month which he was received at the beginning of month.
Guest Comment Card
It is also a tool for estimating the level of service at the hotel. These cards are provided at each outlet with related question to that outlet. This gives a quality of data about strength and weakness.
Inspection By the Head Office
Generally once a years team from head office visit the hotel and sometimes it is unannounced. He prepares the detail report of each and every practice during their two days stay. This report is presented to General Manager and Head Office in Hong Kong Copy of this report is distributed among department and target date for adjustment and rectification is set General Managers periodically reviews the progress and keep contact with Head Office.
Complaints
It is also a source of identifying the weaknesses. The manager of every department take action to reduce these complaints.
Inspection by the General Manager
As far as thorough check up of processes at all departments is concerned General Manager carries out the unannounced inspection at various unit along with the head of department Quality Std are checked and deviation from standard is recorded personal manager prepare the Discrepancy Report and head of department is given a target data for rectification and constant follow is maintained.
Manager as Special Duty
Management of Holiday Inn Multan has implemented a nice procedure for regular inspection covering each and every section of Organization Department Head are assigned a duty of “MOSD” on one a week. This schedule is rotated by the personal manager. Each department head performs MOSD duty in addition to his regular working hours.
Assimilating and Evaluating the Information
Once the information is gathered it should be assimilated and evaluated for the purpose of assimilated and evaluated of information the tow types of melting held in Holiday Inn Multan.
1. Routine meeting
2. Special meeting
Routine Meeting
Every day from 9:00 to 10:00 O’clock a meeting held in Holiday Inn Multan. In which General Manager and all head of department participate. In this meeting the manager collectively identify the most important opportunities and threat facing the firm and assimilated evaluate the issues problem concern and need of all department and give same measures.
Special Meeting
Special meeting occur when team from Head Office visit the hotel on any big discrepancy occur.
Now here is some important Internal strength and weakness of the organization.
Strengths
1. Holiday Inn Multan is the only International Std hotel in Multan.
2. No risk factors is involved because the organization is supported by Holiday Inn world wide (HIWW).
3. The technology using at the hotel is latest one.
4. Expenses one very limited because the company is spending is spending very little on advertisement but gaining much sale on the other hand and salaries are very low.
5. The organization is financially strong.
6. Holiday Inn Multan is situated at very good place. The location is prime commercial area.
7. Holiday Inn Multan is beautiful model of typical local touch of architecture with blues tiles combination.
8. The employees of the Holiday Inn Multan are mare skillful as compare to other hotel in Multan.
9. The Holiday Inn Multan offers mare services and product as compared to any other organization.
Weaknesses
1. The major weakness is the parking problem. Management has constructed an underground parking area but it is also limited space.
2. No direct entry far shag palace guests have to pass through lobby main gate.
3. The reception disk is quite distant from main gate. It is better to make reception center near the entrance.
4. Inter-distance between the table is very little mart guest complaint about it.
5. Swimming pool is not available to the guest. Yes complete arrangement such as attendant desk, chair, bed are present but there is a constant problem of water purification. Rusty water has damaged the titles of swimming pool.
6. The employee of the organization do not have required knowledge and proficiency in English. As there employees have direct contact with the customer.
Chapter No. 5
Findings & Suggestions
Appendix - I
Questionnaire
1. Introduction and organogram of organization
2. Does organization use strategic management concept?
3. Procedure for international assessment of Holiday Inn Multan.
4. Time period to conduct internal assessment.
5. Tool for internal assessment.
6. Who develop the goals and objective for each department?
7. Does organization used latest technology?
8. In which areas your organization having strength over competitors?
9. How you communicate policies to your employees?
10. In which areas your organization wants development now?
