Case Study on Fort Village

Within the year 1995, Giannuzzi' take over Forte Village and other Italian hotels. From the starting point the project is regarded as one of the most difficult stages that is being taken by the Eleganzia group as Forte Village was been managed by other people that is Lord Forte for 20 years. Thus most of the personnel within Forte Villa were still loyal to him. On the contrary, the expenses of Forte Villa management were greater towards making a good amount of profitability. There was rapid decline in the quality of service because of inexperience shown by Butler as well as service personnel. The gap related to communication between the workers and the management body was being noticed. It was being determined that the tourist industry Forte Villa is facing high competition in the tourism market of Italy. Further, it making greater efforts to meet the requirements of the target market.

Research aim and objectives

The most significant aim of the present investigation is to make a critical evaluation of the position of Eleganzia Group within the tourism market of Italy that is now being regulated by Eleganzia Group. Apart from this it also aims at assessing the success of Forte Village with respect to the tourism industry.

The objectives of the present research have been enumerated in manner as under:

• To gain insight into the management process of the most beautiful tourism sector Forte Village which is now managed by Eleganzia.
• To assess and understand the strategies that are taken by Eleganzia group for making Forte Villa more attractive and appealing to visitors across the globe.
• To determine the challenges that are being experienced by Eleganzia group within the development of Forte Villa.
• To critically appraise strategies taken by authority for carrying out the glory of Forte Villa and offer appropriate recommendations.

Structure of the rest of the report

The research is being conducted in systematic manner in order to find out desired results in an unbiased way. The structure of the present investigation is as below:

• Introduction: In this chapter a brief discussion is being carried out in relation to the chosen case study. Further, it involves important information in relation to the organization that is Eleganzia group as well as their present project of tourism (Forte Villa). It offers detailed background knowledge in order to conduct the investigation. The chapter is comprised of a statement of problem, research aims as well as objectives of the investigation.
• Case brief: In this particular case, a brief description in relation to the situation that is being faced by the Eleganzia group as well as Forte village is discussed in-depth. To make discussion of the present situation, several current articles are being reviewed that in turn act as an aid in discovering the present theory, models as well as concepts in relation to the topic selected.
• Problem statement, plan of analysis: The chapter is comprised of details regarding the statement of the problem as well as an analysis of the issue in relation to the topic under investigation. Apart from this, the chapter offers details regarding the statement of the problem, research philosophy, research approach, sample selection, collection of data process and sources of information. A literature review is being performed within this section in order to clarify the concept, theories as well and models in relation to the case study. Further, the chapter also involves discussion on the ethical issues in relation to the case study.
• Analysis and findings: Within this chapter detail regarding the case analysis is being discussed. The data analysis is being carried out with the usage of varied models. Further, within this chapter, the researcher presents the importance of unbiased information that has been gathered by the investigator.
• The proposed solution to the problem: The chapter involves integrated assessment in relation to the analysis. Within the particular chapter the investigator exhibits the association among the aim of the investigation and objectives, research approaches as well as models with the gathered information. The researcher would offer appropriate recommendations with respect to the selected firm on the basis of the interpretation. On the basis of evaluation, the researcher will be able to make the proposition of a plan related to the actions which the firm can take. Moreover in this section researcher demonstration the limitations of the present investigation and the scope for further investigation.

Chapter -2 Case Brief

Situation analysis

Forte Village Resort provides five star as well as economical four star accommodations. They are involved in making sales of the rooms with what is referred to as half board packages which are comprised of breakfast as well as dinner. However the guests are required to make payment for extras. The extras are comprised of Tennis lessons, the Chelsea soccer school, the Rugby Academy, the Spa, bowling as well as the additional food and beverages are not considered part of their HB deal. Forte Village possesses two major businesses that including Leisure as well as conferences and Incentives, their B2B business. They were being opened from May to November and this involves 4 deluxe five star hotels and villas that are on rent. The visitors have access to over 21 restaurants and an immense amount of activities. Most of them were on pay as the person visits. Giannuzzi's approach towards Forte Village was developed of four pillars. This is comprised of Italianity, service quality, uniqueness as well as innovation.

The higher quality of services can be attained through paying close attention to each detail with respect to the Forte group. Each morning the resort's room manager meets with the division manager of all rooms in order to make examination of the list of arrivals that are new. They are attached with a discussion on the preferences of the customers on the basis of information gained from their past visitors. Giannuzzi in addition to other senior authorities gets involved in the discussion regarding upcoming problems as well as the expected arrivals of notable guests. As part of survey, the individual customers were surveyed and asked to fill out the specific form that would act as an aid in the implementation of further changes or improvements in order to develop the Forte group. The major aim is towards elucidating the appropriate feedback from the customers in relation to the new service or facilities for further improvement in the whole facilities of the group. There is the presence of a separate section within the group that acts as an aid for the customers in getting particularly involved with other appropriate activities related to passing leisure in an effective manner. The individual section that is attached to the Forte group thus involves a varied section such as Food and Beverage, leisure as well as sports, luxurious shopping, experience etc.

At present the general manager possesses greater concern regarding the operations of the luxury group of hotels that is Eleganzia as a reason that there are certain issues in relation to the group. Now the general manager looks towards the famous property, The Forte Village group within Southern Sardinia. II Castelo is regarded as one of the Forte Village's five star hotels that provide a rate of 3300 pounds rate per person for one night. Thinking towards making implementation of a suitable strategy of pricing, he was thinking towards a casual encounter that he experienced within the past summer with one of his loyal four-star clients at the airport. Forte Village group is becoming a renowned destination for VIP and also it includes visits by David Beckham as well as other well-known industrialists. Along with the five-star accommodation, the Forte Village group is offering four-star accommodations at lower rates. However, in spite of having all the resources as well as benefits present, the meeting at the airport with four-star clients has made Giannuzzi have a thought over the strategy of pricing of Forte Hotel group. Loss of well-established customers would not be good in terms of the value of the resort. Therefore thinking on a particular matter made Giannuzzi think whether or not he needs to reshape the model of pricing of Fortes Village resort. He possesses concern regarding the fact that what would assist him in cutting down the customer loss in addition with keeping the activities and reputation similar. Such is making him rethink whether he would put certain extra within the package that is comprised of normal lodging as well as enjoying the other activities. This is also making him think towards whether he should involve semi-inclusive formula rather than half rate of boardroom. Thus they separate the extra charges to a greater extent. This facilitates the general manager towards focusing on the related steps or the strategies of management which are carried out for the purpose of cutting down the expenses for the sake of boosting the occupancy. The crisis within the economy added certain positive side as such will assist Giannuzzi in viewing things by making the creation of important opportunities that can be developed to explore the chance of procuring Rome's prestigious hotel. The Eden. Through several thoughts in relation with the fact that whether this is considered the right time for the purpose of expansion or not as well as the appropriate strategies which can be executed in order to cut shot the expenses as well as hold the sound retention value of the customers.

Chapter -3 Problem statement, plan of analysis

Statement of the problem in the case

According to the given case study issues related to pricing strategy have been faced under the Forte group. This is taking place just because of expansion-related strategy. Here, management was unable to decide on the appropriate strategy to maintain a higher rate of return and attract more buyers towards the same. For this purpose, an appropriate method is employed for the sake of appropriate operation of the business in the marketplace (Wu, 2012). However, the cost of operation of the business is very high to get a certain rate of return. It can be critically evaluated that issues related to service quality also occur due to association of less skilled staff. At the same time, communication barriers were becoming the major reason behind the poor performance of the business. Owing to this, the firm faces issue related to managing its business and building its competitive edge in the marketplace. However, three different factors such as customer intimacy, product leadership and operational excellence are considered. At this juncture, different models can be used to understand the scenario effectively and properly appropriate solutions for the same (Abrate, Fraquelli and Viglia, 2012).

Relevant literature

According to Alex (2012) the issue related to the tourism business can be resolved with the help of application of different kinds of models. At this juncture, HRM strategies and organizational behaviour should be at the top to resolve all related issues. The effective personnel development plan proves to be effective in managing the situation of business by bringing improvement in the service quality and meeting requirements of all related parties. Furthermore, Bjorkqvist, Idefeldt and Larsson (2010)explained that, the workforce needs timely training along with the higher level of motivation in order to derive the higher level of growth with an increased rate of return. This proves to be effective in increasing the overall rate of return and providing good quality services to a large number of buyers. This strategy tends to meet the expectations of buyers along with offering them a good experience of Forte Group.

Ongori and Migiro (2010) asserted that product and service quality can be improved by adding more features. This would be appropriate for management to communicate all its personnel and other related parties. In this manner, a competitive edge is created along with a focus on profitability. Furthermore, the strategic direction of business must be decided with clear communication between management and the workforce.

Techniques helpful to analyze the case study

There are different techniques used for the analysis of the case study. This can be done with the help of models like the BCG matrix, Porter's five forces and others. These are applied as follows-

BCG matrix

It is considered the most effective mode for assessing the business situation under which a corporation can work upon the business scenario. It consists of several factors such as market growth and market share (Yeh, Chen and Lai, 2010). The first component of this factor reflects that how market growth is ensured on the basis of investment. It can be critically evaluated that the position of higher investment and prioritization make it possible to increase the market growth of the business. This would be effective derive a better position for the business under which the firm can get a good rate of return along with a competitive edge in the marketplace. On the other hand, the market share of the business might decrease at the time of business starts reducing its investment and focusing on making profitability only. Owing to this, the model of BCG can be applied for effective decision making.

Porter's five framework

This is considered as the most effective mode under which corporations come to know about other related parties and accordingly, they can come to know about varied kinds of options. This model consists of five different aspects such as the bargaining power of suppliers, buyers and potential entrants. Along with that, the threat of substitutes is also involved which assists the corporation in understanding the exact situation of the entire hotel industry and accordingly derive valid results for its growth and development. By applying this model firm can come to know about the application of suitable marketing strategies and accomplish its long as well as short-term objectives in the marketplace (Lapina and et. al., 2015).

Value chain analysis

This model is directly related to the performance of the business under which a group of activities with the organization are reflected in the graphical form. It includes different kinds of activities such as human resources management, and technological development. Procurement and support activities such as operations, marketing as well as sales. The value chain model facilitates to reduction of cost and increased profitability. Furthermore, value-creation activities are completed by using this particular model

In addition to this models like the 7ps of marketing and belbin team role theory can be applied in workplace so as to provide the effective reflation of all business activities and ensure the upward direction of the corporation (Tavitiyaman, Qu and Zhang, 2011).

Proposed plan of analysis

The proposed plan of analysis starts with the selection of positivist philosophy in order to assess the facts and figures behind the study. This aids in carrying out the entire study effectively for drawing valid outcomes. Similarly, the deductive research approach has been applied in order to generalize the information and then reach a specific one. It proves to be effective in understanding the concept and collecting valid data. Apart from this, a descriptive research design has been employed for the present study under which aim and objectives of the entire study will be defined in a precise manner (Ongori and Migiro, 2010). Apart from this, only secondary data are collected in order to address issues which are being faced by Forte group and recommend valid justification for the same. This in turn entire study will be completed in a detailed manner.

Sources of data

There are several sources of data collection such as journals, books and online articles. Along with that, specific studies are also referred to which similar kinds of issues occur in the hospitality sector. In addition to this, a particular website of a business will be used to access its specific data and accordingly draw valid outcomes. This proves to be effective in collecting valid information.

Chapter -4 Analysis and Findings

The chapter on analysis can be completed with the help of the application of proposed models which are used to understand the problem which is faced by Forte Group. It can be completed in the following manner (Aldehayyat, Al Khattab and Anchor, 2011).

Value chain analysis

The first and foremost aspect is associated with value chain analysis wherein inbound activities of the business will cover, the best quality of the drink, interiors and motor services which must be in line with customer preferences. However,  Forte Group must shed light on its operation by taking into account 24-hour butler services with additional facilities such as swimming pools, conference halls yacht facilities etc. Similarly, the outbound logistics of business reflects how the firm is focusing on marketing or advertisement aspect to the showcase its product and services along with its reputation. However, holiday packages are offered for families and couples by using appropriate social media marketing strategies. Moreover, the service range is extended on the basis of feedback given by consumers (abacchi, 2010). Apart from this, support activities must be effective such as traditional Italian hospitality which sheds light on the warm and friendly welcome of visitors. Moreover, highly skilled personnel who possess necessary knowledge related to all fields of hotels. Similarly, customers are provided with additional technological facilities such as Wi-fi and online access to hotels and other related aspects. Moreover, procurement of business can be done with the help of access to luxury cars, helicopters and contact from external sources.

Findings-

The value chain analysis reflects that Forte Group need to make huge investments in building luxury infrastructure and interiors along with a focus on quality of services. Furthermore, the workforce is provided timely training to give rich experience among personnel (Luan and Sudhir, 2010).

Porter's Five Force Strategy

The application of Porter five force strategy reflects that new entrants might not create barriers to the business as its brand name is very huge. However, the availability of competitors can create a threat for the business as consumers can easily switch from one to another brand. Furthermore, the bargaining power of buyers is moderate when the firm is trying to implement appropriate marketing strategies in order to retain them. However, supplier's bargaining power does not affect the performance of Forte Group as it is operating its business on the basis of its own outlet and risk (Currim and Mintz, 2013). It can be critically evaluated that some of the retailers might be contracted for the purpose of offering raw materials for food. Apart from this, competitors like Cala di Volpe, Cervo and Romazzino are creating competition for the business.

Findings

According to the available information it has been found that the firm must apply a suitable strategy to create its competitive edge in the marketplace. This is because competition is very high. However, the strong brand value of the business facilitates retaining its customers.

BCG matrix

The rising star of the BCG matrix for Forte Group is based on uniqueness, innovation, and quality in order to increase the level of satisfaction among customers. At this juncture, business is considered as on the rising start. Furthermore, the customer base of Forte Group is from European nations (60%) whereas 60% are coming from Italy (Al-Dmour, Al-Zubi and Kakeesh, 2013). In addition to this, global recession, and change in social factors come under the question mark stage. It reflects that businesses can apply appropriate strategic management tools for managing such kind of situations. The last stage of dogs in the model shed light on the reduction of foreign visitors to the business by 10%. However, businesses are trying to adopt most suitable approach to attract more visitors. In this regard latest example of the arrival of a Saudi princess can be taken.

Findings

On the basis of the practical application of the model, it has been found that a professional training system can be applied for the training of personnel so as to bring necessary improvement in the quality of the service. Moreover, various projects like football training camps, Leisure land and Children's park are introduced (Alex, 2012).

Marketing mix

There are seven marketing Ps which are applied by Forte Group in order to ensure its better management to gain the attraction of buyers in order to increase the competitive edge of the business. For this purpose, the first element of the marketing mix shows the product; infrastructure. Her,e management is putting efforts into making the infrastructure more attractive (Wu, 2012). Furthermore, the pricing strategy of businesses remains higher for the purpose of quality experience for users. The place selected for Forte Group is very attractive as it is in the middle of beaches and the Mediterrenean Sea. Moreover, the marketing strategies of corporations consists of traditional marketing and social media to grab the attention of more and more buyers. Apart from this, people as the most important element has been taken under which corporations put efforts to sharpen their skills so as to accomplish long as well as short-term objectives of the hotel (Abrate, Fraquelli and Viglia, 2012). Moreover, the most appropriate service delivery procedure has been adopted by the firm under which the preferences of buyers is taken into account. It can be critically evaluated that the firm does not have the physical environment as it offers services.

Findings

On the basis of application of the model pricing strategy of the firm is creating issues as it is higher than the average. It might be the biggest issue for the corporation to attract more buyers. It is because higher prices of the product or services can be paid only by upper-class people. However, the firm put efforts into improving its marketing and advertisement strategies whereby it becomes easy to attract more customers and provide them services in accordance with their requirements (Björkqvist, Idefeldt and Larsson,2010). This in turn internal structure of the corporation such as marketing objective, organizational improvement and strategic cost are affecting the pricing strategy. Hence, all of the reasons force management to follow the higher price strategy to recover the cost of operation. Thus, another effective strategy might be applied by businesses to recover their costs by increasing their profitability.

Belbin complementary roles

It is comprised of varied roles and their analysis in detail (Ongori and Migiro, 2010). These have been enumerated in the manner as under:

• Plant: The manger within Forte Village is proactive and possesses the ability solve problems.
• Monitor evaluators: The CEO as well as the director keeps track of the progress of the company as well as makes introduction the innovations in order to attract a greater number of customers.
• Specialist: Giannuzzi is regarded as a specialist and person having immense knowledge regarding the strategies of the hotel and management of the resort.
• Coordinator: The resident manager is considered an essential part of the team. She has an essential role towards bringing the team together. Further, she performs as coordinator among the team as well as higher management.
• Team worker: The employees of Forte Village are considered team workers and they make efforts to offer the best service quality to visitors.
• Resource investigator: Innovation is considered as the main phenomenon that every employee of Forte Village, Eleganzia group needs to be competent.
• Shaper: There is the absence of a shaper within Forte Village.
• Implementer: The CEO, directors, and brand managers are important personnel for Forte Village.
• Completer finisher: The CEO, and directors, are essential members who focus on the completion of decided strategies.

Findings:

Each member of the firm has to determine the work in an effective manner by taking into account positions. Giannuzzi has been determined to be most efficient in tackling several roles as CEO and director of the firm. Because of the absence of position, Shaper of the firm faces certain challenges.

Chapter -5 Proposed solution to the problem

Problem 1

In the Year 1995, Giannuzzi acquired Forte Village and other Italian hotels. From the start the project is regarded as the most difficult step that is ever been taken by the Eleganzia group as Forte Village has been regulated under another person for 20 years. Thus most of the personnel with Forte Village were loyal to him.

Solution for Problem 1

The present manager of the group, Giannuzzi needs to lay emphasis on the Forte Village for the sake of enhancing as well as turning down the appropriate issues in relation to the economic crisis as well as financial problems which the group is experiencing. Giannuzzi is required to focus on the improvement of Forte Village for the sake of holding the base of customers. As the project is regarded as the most difficult one from starting thus they are required to develop a precise and suitable system of management which can assist in the execution of a suitable management and business plan. As workers possess loyalty thus they need to make suggestions of certain effective as well as important strategies in order to enhance working conditions and the present environment of Forte group so as to maintain the base of customers.

Recommendation

In relation to the present issue, it is recommended that Giannuzzi should enhance focus towards developing the Forte group. This would assist the manager in highlighting and gaining insight into the economic crisis that is being experienced by the group. This facilitates making assessments much better. As one of the most difficult projects that has to be tackled, steps need to be devised effectively in order to provide ease. Thus it offers greater freedom to the employees to express their thoughts so as to improve the crisis at present.

Action plan

Reconstructing the boundaries of the market in order to prevent the development of the economic crisis. Such would assist the managers as well as employees in cutting down the economic crisis through the execution of appropriate and effective techniques such as minimizing the package price, involving certain decent extras within the package or moving semi-inclusive formula rather than half board rate of the room.

The firm is required to reach beyond the present demands of the customers. In order to address the current financial as well as economic crisis which is being experienced by the customer the Forte group is required to develop and reconstruct the strategies in the manner customers are specifically dealt with.

Problem 2

In contrast to this expenses of Forte, Village management was too much towards making a sound profit. The quality of service was decreasing in rapid way because of the inexperience of Butler as well as service personnel. The gap in communication between the workers and the management bodies were noticed.

Solution to problem 2

In relation to the case provided it can be presented that for the sake of improving the entire business expenses, the price as well as performance ratio are required to be altered within effectiveness. As such acts as an aid in addressing the issue like the threat of substitutes. This majorly includes reshaping the expenses that are making sound profitability. Expenses or financial strategy which has to be executed with effectiveness takes into account both quality and resources which are provided to the customers. Therefore Forte group associates as well as workers are required to gain insight into the role of reshaping the policy related to expenses which would assist in making sound profit. Also, it has significance in retention of the customer base. The decrease in the quality of services is required to be amended through enhancement in the experiences of the Butler and service personnel. Further, they are required to be equipped with modern scientific methods and structure which assist them in becoming more experienced so that they are able to understand and satisfy customer demand.

Recommendation

With respect to the present issue, the suggestion that can be offered is that regulations of expenses as well as costs are required to be developed with effectiveness. The reshaping of the expenses would offer a suitable access tool for the entire enhancement of the Forte group. Through gaining insight towards focus on the fact that is effectiveness of expenditure strategy would assist in formulation and enhancement of the note down of the cost of financials and expenditures. By means of noting down of the costs and expenses assistance is offered towards understanding the expenses and modes which are required to cut down for enhancement of the development of Forte Group.

Action Plan

Suitable monitoring of members of the team. This acts as an aid in the assessment of the performance of personnel for the betterment of the whole process. This is comprised of noting down the key strengths and weaknesses as well as features of individuals need to be listed. Further, it is significant to make a determination of the weaknesses, areas of conflict and strengths that are missing. Along with this involvement of highly educated people would assist to instil the communication modes between the employees.

Problem 3

It was determined that the tourism industry Forte Villa is facing greater competition in the tough tourism market of Italy. Further, it is constantly failing towards meeting the customer demand to a greater extent.

Solution For Problem 3

With respect to the case it can be presented that Forte Villages is at present competing with tough tourism issues. Thus for them, there is greater difficulty in meeting the current and upcoming customer demand. Therefore for the sake of surviving within the tough market the management of Forte Village is required to implement as well as enhancement of suitable strategies which seek to develop the whole background of Forte Villa and thus meet the customer demand. The solution to such can only be met through exploring suitable methods which assist Forte Villa in holding an effective position within the present competitive environment. The management body can involve a greater number of customers thus it can retain older customers through offering them packages which involve the minimization of room charges, inclusion of extra packages with the reduction in investments, the introduction of a semi-inclusive formula rather than the rate of half boardroom which is applied by Forte Villa. Therefore for the sake of holding an effective position within the market, various schemes are required to be executed that can assist in attracting a larger base of customers.

Recommendation

The major suggestion for the issue presented involves implementing appropriate tools that assist in managing the problem. Thus such facilitates in satisfaction of the customer's needs and demands. The management needs to make introduction of appropriate alterations within the marketing strategies so as make produce of positive influence over the customers. For the sake of attaining the present demand in detail investigation would be done into the entire market within Italy. Such assists in knowing the preferences of the target market. The management can make use as well as the implementation of social media to attract customers through providing an advertisement of attractive packages relating to a price.

Another suggestions that can be offered include management's needs to involve various promotional activities for the sake of awareness regarding the product about the package of the firm. For enhancing communication in marketing as compared to the existing competitive field, Forte Group should use marketing mix tools that assist in the assessment of the present market scenario. Therefore through understanding of the tools of marketing understanding can be developed regarding the existing marketing scenario which depends on the revenue and sales which is utilized in the marketing of Forte group.

Action plan

The associated management needs to bring changes in the culture of the firm. Such presents that management of Forte group should in an effective manner execution methods that would assist in shifting the culture of the firm to a culture which is primarily and effectively driven by the premium returns over the products. The product involves packages which Giannuzzi is thinking of implementing so as to retain the older and new customer base within the market. Therefore this assists Giannuzzi as well as the management team of Forte Village group in making application and implementation of a wide range of cultural activities which aim to enhance the measurement and effective issue resolving procedure which would be initiated by the management so as to hold their place within the competitive market.

Determination of the economic consequences of the firm is another action plan. This deals with gaining insight into as well as listening to the concerns of the routine customers who on a regular basis visit the Forte group resort. The economic consequence would assist in gaining insight to fact that which new packages will be included and satisfy the needs of the customers specifically the ones that are attached to the Forte group for a longer span of time.

REFERENCE

• Abrate, G., Fraquelli, G. and Viglia, G., 2012. Dynamic pricing strategies: Evidence from European hotels. International Journal of Hospitality Management. 31(1). pp.160-168.
• Al-Dmour, H., Al-Zu’bi, Z.M. and Kakeesh, D., 2013. The effect of services marketing mix elements on customer-based brand equity: An empirical study on mobile telecom service recipients in Jordan. International Journal of Business and Management. 8(11). pp.13-26.
• Aldehayyat, J.S., Al Khattab, A.A. and Anchor, J.R., 2011. The use of strategic planning tools and techniques by hotels in Jordan. Management Research Review. 34(4). pp.477-490.
• Alex, N.J., 2012. An enquiry into selected marketing mix elements and their impact on brand equity. IUP Journal of Brand Management. 9(2). p.29.
• Björkqvist, O., Idefeldt, J. and Larsson, A., 2010. Risk assessment of new pricing strategies in the district heating market: A case study at Sundsvall Energi AB. Energy Policy. 38(5). pp.2171-2178.
• Lapina, E.N., and et. al., 2015. Regional agriculture, food supply systems and competitiveness of agriculture production industries in Stavropol Territory. Asian Social Science. 11(6). p.92.

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