The company – Nirvana Hotels and Resorts is an international organization that manages 150 hotels and 15 restaurants across UK. It is one of the leading hotel organizations serving over 9 million people annually. It is one of the valuable brands and holds a primary share within the UK market providing services at average to high rates to its customers. With time, Nirvana hotels and resorts have won acclaim for its quality service and superiority in dining, interiors, business services and other client oriented facilities. .
At present the company is undergoing a reform in its structural management and developmental issues. The dynamic growth of the country has attracted a lot of global attention, and has subsequently raised the demands for travel and lodging services. A SWOT analysis on the company intends to reveal the underlying strengths and weakness of the organization, as well as the susceptibility of the system. The distinguished strength of the organization includes the affect of a booming hotel industry in the country and the administrative efforts to upgrade the hospitality sector.
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The company aims to provide a lot of credibility in hotel management, protection of the legal rights of the customers; modernization of the hotel facilities in line with the international standards to the clients. With ample resources, development and managerial experience the Group is poised to become a new global as well as domestic appeal. Weaknesses – As the group is set to take on the challenges, the management is aware of the weaknesses that are exhibited by the organization and are effecting the domestic management of the hotel management.
The weakness that are in particular affecting the growth and development of the group as a whole are – 1) Regional managerial structures, lack of management control, discipline, and modernism at various regional outlets of the group in UK, have been affecting the group’s performance. 2) Regional debt issues are a direct result of the inefficient lending policies of the management to the regional headquarters, which at times do not pay attention to the viability of the new venture or the existing requirements.
3) Excess of high-end luxury facilities in some restaurants that are unable to bring good customer business. Also, there exists some difference in the managerial skills and marketing strategy across the chain of Nirvana Restaurants and resorts. Opportunities and Reforms – the group needs some fundamental changes in view of the inefficient performance of the hotel management. The opportunity to enhance the profits of the chain, it is required to transfer the control to the local administration rather than administering through the regional headquarters.
This will also save the bad loans and will liquidate the non performing assets of the Nirvana group and help it to become more competitive. New joint venture projects, internal management transfers and new hotel holdings are some of the reforms that can bring out new opportunities for the Nirvana group. Business diversification and expansion in view of new market opportunities, creation of a large centralized management group for Nirvana hotels, can be a successful reform plan, particularly in the main cities.
Client service evaluation is another example which can be out into use for enhancing the quality of the services at Nirvana. Threats – the barriers that confront the development of Nirvana group of hotels and resorts are evaluated and considered for contingency forecast. The major threats that are faced by the group are – 1) Abundance of hotels in the UK hospitality market which has been a result of the rush to take advantage of the rising potential of the hotel industry. 2) Trade and industry slowdown across the globe, debt problems may be the trigger behind some unknown threats that can work against the hotel industry as a whole.
3) More competition from international as well as domestic groups and aggressive marketing strategy of these brands can be one of the main emerging threats for the Nirvana group. FUTURE DEVELOPMENT The UK hotel industry has been growing rapidly and appropriately fuelled by the economic growth of the region. The driving forces of tourism and economy have rested great potential for the hotel industry in UK which can be cashed in by the Nirvana group of hotels and resorts. With the help of a good hotel management infrastructure, Nirvana can offer an extensive range of hotel products so as to cater a broad range of clients.
The new management can enhance the responsibility of administration, and defense of client interest in accordance with the international standards. These developments will definitely tend to create a positive environment for the growth of the Nirvana group. The existing assets that are not performing in line can be easily targeted to new reforms that can meet the demands for brand development and management. As consolidation continues, the management will follow multifaceted mixed-use expansion projects, which will consist of profit-making, accommodation, and housing functions.