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The major issue that has to be addressed in the present case is related with suitable strategy of pricing for hotel at Forte village. The Eleganzia group possess tow varied kind of luxury properties for the purpose of attracting the customers towards making selection. With the emergence of economic downturn there is negative influence on the hospitality sector. This has also influenced the business of Eleganzia as well as sales revenue for rooms. The Eleganzia's group manager Giannuzzi faced dilemma in case it is important to make discounts for 4 star room of the Forte Village. This can assist in dripping down of the sales too much. But at the same time it will influence the service quality in relation with other aspects. It has been figured out Giannuzzi in relation with the best way towards setting pricing strategy for the renowned property which is regarded as Forte Village resort. The major problem faced is regarding the manner in which the prices can be set for 2010 leisure season. Further determination has to be made regarding whether it has to be higher, lower or similar as 2009.
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 stage that is being taken by Eleganzia group as Forte Village was being managed by certain other person 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 good amount of profitability. There was rapid decline in the quality of service because of inexperience showed by Butler as well as service personnel. The gap related with communication among the workers and management body was being noticed. It was being determined that tourist industry Forte Villa is facing high competition in 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 critical evaluation of the position of Eleganzia group within 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 tourism industry.
The objectives of the present research has been enumerated in the manner as under:
Structure of rest of the report
The research is being conducted in systematic manner in order to find out desired results in unbiased way. The structure of the present investigation is as below:
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 as half board packages which is comprised of breakfast as well as dinner. However the guests are required to make payment for extras. The extras is 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 possess two major business that includes 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 villa that is on rent. The visitors have access over 21 restaurant and 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 Forte group. Each morning the resorts room manager meets with the division manager of all rooms in order to make examination of list of arrivals that are new. They are attached with discussion on the preferences of the customers on the basis of information gained from their past visitor. Giannuzzi in addition with other senior authorities get involved within the discussion regarding upcoming problems as well as expected arrivals of the notable guests. As part of survey the individual customers were being surveyed and asked to fill the specific form that would act as an aid in implementation of further changes or improvement in order to develop Forte group. The major aim is towards elucidating the appropriate feedbacks from the customers in relation with the new service or facilities for further improvement in the whole facilities of the group. There is presence of separate section within the group that act as an aid for the customers in getting particularly involved with other appropriate activities related with passing the leisure in an effective manner. The individual section that is attached with 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 possess greater concern regarding the operations of the luxury group of hotel that is Eleganzia as a reason that there is certain issues in relation with 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 five start hotel that is providing rate of 3300 pounds rate per person for one night. Thinking towards making implementation of the suitable strategy of pricing, he was thinking towards 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 the renowned destination for the VIP's 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 airport with four star clients have made Giannuzzi have a though over the strategy of pricing of Forte Hotel group. Loss of well established customers would not be good in terms of value of the resort. Therefore thinking on particular matter made Giannuzzi think whether or not he needs to reshape the model of pricing of Fortes Village resort. He possess 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 that 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 to view things by making creation of important opportunities that can be developed to explore the chance of procuring Rome's prestigious hotel. The Eden. Through several thought 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.
According to the given case study issue related to pricing strategy has been faced under Forte group. This is taking place just because of expansion related strategy. Here, management was unable to decide the appropriate strategy to maintain higher rate of return and attract more buyers towards the same. For this purpose, appropriate method is employed for the sake of appropriate operation of the business in the marketplace (Wu, 2012). However, cost of operation of the business is very higher to get certain rate of return. It can be critically evaluated that issue 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 poor performance of the business. Owing to this, firm face issue related to managing its business and build 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 proper appropriate solution for the same (Abrate, Fraquelli and Viglia, 2012).
According Alex (2012) the issue related to tourism business can be resolved with the help of application of different kind 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 to manage the situation of business by bringing improvement in the service quality and meeting requirement of all related parties. Furthermore, Bj;rkqvist, Idefeldt and Larsson (2010)explained that, workforce need to timely training along with higher level of motivation in order to derive higher level of growth with the increased rate of return. This proves to be effective to increase overall rate of return and provide good quality of services to large number of buyers. This strategy tend to meet the expectations of buyers along with offering them 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, competitive edge is created along with focus on profitability. Furthermore, strategic direction of business must be decided with clear communication among management and workforce.
There are different techniques used for analysis of the case study. This can be done with the help of models like BCG matrix, Porter's five force and others. These are applied as follows-
It is considered as the most effective mode for assessing the business situation under which 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 the better position of the business under which firm can get good rate of return along with competitive edge in the marketplace. On the other hand,market share of the business might be decreased at the at time of business start reducing its investment and focus 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 corporation come to know about other relate parties and accordingly they can come to know about varied kind of options. This model consists of five different aspects such as bargaining power of suppliers, buyers and potential entrants. Along with that, threat of substitutes is also involved which assists corporation to understand the exact situation of entire hotel industry and accordingly derive valid results for its growth and development. By applying this model firm can come to know about 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 group of activities with organization are reflected into the graphical form. It includes different kinds of activities such as human resources management, technological development. Procurement and support activities such as operations, marketing as well as sales. Value chain model facilitates to reduce cost and increase profitability. Furthermore, value creation activities are completed by using this particular model
In addition to this models like 7ps of marketing and belbin team role theory can be applied at workplace so as to provide the effective reflation of all business activities and ensure upward direction of the corporation (Tavitiyaman, Qu and Zhang, 2011).
The proposed plan of analysis start with the selection of positivism philosophy in order to assess the facts and figures behind the study. This aids to carry out entire study effective for drawing valid outcome. Similarly, deductive research approach has been applied in order to generalize the information and then reach to the specific one. It proves to be effective to understand the concept and collect valid data. Apart from this, 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 detail manner.
There are several sources of data collection such as journals, books and online articles. Along with that, specific studies are also referred under which similar kind of issues are occurred in hospitality sector. In addition to this, particular website of business will be used to access its specific data and accordingly draw valid outcome. This proves to be effective to collect valid information.
The chapter of analysis can be completed with the help of 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, best quality of drink, interiors and motor services which must be in the line of customer preferences. However, Forte Group must shed light on its operation by taking into account 24 hours butler services with addition facilities such as swimming pool, conference halls and yacht facility etc. Similarly, outbound logistic of business reflects that how firm is focusing on marketing or advertisement aspect for showcase of its product and services along with reputation. However, holiday package are offered for families and couples by using appropriate social media marketing strategies. Moreover, 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 shed light on warm and friendly welcome of visitors. Moreover, highly skilled personnel who possess necessary knowledge related to all field of hotels. Similarly, customers are provided with additional technological facilities such as Wi-fi and online access to hotel and other related aspects. Moreover, procurement of business can be done with the help of access to luxury cards, helicopters and contact from external sources.
The value chain analysis reflects that Forte Group need to make huge investment on building luxury infrastructure and interiors along with focus on quality of services. Furthermore, workforce are 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 of the business as its brand name is very huge. However, availability of competitors can create threat for the business as consumers can easily switch from one to another brad. Furthermore, bargaining power of buyers is moderate where firm is trying to implement appropriate marketing strategies in order to retain them. However, suppliers bargaining power does not affect the performance of Forte Group as it is operating its business on the basis of 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 material for food. Apart form this, competitors like Cala di Volpe, Cervo and Romazzino are create competition for the business.
According to the available information it has been found that, firm must apply suitable strategy to create its competitive edge in the marketplace. This is because competition is very higher. However, strong brand value of the business facilitates to retain its customers.
The rising star of BCG matrix for Forte Group is based on uniqueness, innovation, quality in order to increase the level of satisfaction among customers. At this juncture, business is considered as on the rising start. Furthermore, customer base of Forte Group is from European nation (60%) whereas 60% are coming from Italy (Al-Dmour, Al-Zu;bi and Kakeesh, 2013). In addition to this, global recession, change in social factors comes under the question mark stage. It reflects that business can apply appropriate strategic management tool for managing such kind of situation. The last stage of dogs in the model shed light on reduction on foreign visitors of the business by 10%. However, business is trying to adopt mos suitable approach for attraction of more visitors. In this regard latest example of arrival of Saudi princess can be taken.
On the basis of practical application of model, it has been found that professional training system can be applied for training of personnel so as to bring necessary improvement in the services quality. Moreover, various projects like football training camps, Leisure land and Children park are introduced (Alex, 2012).
There are seven marketing Ps which are applied by Forte Group in order to ensure its better management to gain attraction of buyers in order to increase the competitive edge of the business. For this purpose, first element of marketing mix shows product; infrastructure. Her,e management is putting efforts to make the infrastructure more attractive (Wu, 2012). Furthermore, pricing strategy of business remain higher for the purpose of quality experience to users. The place selected for Forte Group is very attractive as it is in the middle of beaches and Mediterrenean sea. Moreover, marketing strategies of corporation consists of tradition 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 corporation put efforts to sharpen their skills so as to accomplish long as well as short term objectives of hotel (Abrate, Fraquelli and Viglia, 2012). Moreover, the most appropriate service delivery procedure has been adopted by the firm under which preferences of buyers is taken into account. It can be critically evaluated that firm does not have physical environment as it offering services.
On the basis of application of model pricing strategy of firm is creating issue as it is higher than the average. It night be biggest issue for the corporation to attract more buyers. It is because higher price of the product or services can be paid only by upper class people. Though, firm put efforts to improve its marketing and advertisement strategies whereby it becomes easy to attract more customers and provide them services in accordance with their requirement (Björkqvist, Idefeldt and Larsson,2010). This in turn internal structure of corporation sch 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 business to recover its cost by increase the 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:
Each member of the firm has to determine the work in 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 absence of position Shaper of the firm faces certain challenges.
In the Year 1995 Giannuzzi acquired Forte Village and other Italian hotels. From the starting the project is regarded as the difficult step that is ever been taken by Eleganzia group as Forte Village was being regulated under other 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 turn down the appropriate issues in relation to economic crisis as well as financial problems which the group is experiencing. Giannuzzi is required to focus on improvement of Forte Village for the sake of holding the base of customers. As the project is regarded as most difficult one from starting thus they are required to develop precise and suitable system of management which can assist in execution of the suitable management and business plan. As workers possess the loyalty thus they needs to make suggestion of certain effective as well as important strategies in order to enhance working conditions and present environment of Forte group so as to maintain the base of customers.
In relation with the present issue, it is being recommended that Giannuzzi should enhance focus towards developing Forte group. This would assist the manager in highlighting and gaining insight to the economic crisis that is being experienced by the group. This facilitates in making assessment much better. As one of the most difficult project that has to be tackled, steps needs to be devised effectively in order to provide ease. Thus it offers greater freedom to the employees for expressing their thoughts so as to improve the crisis at present.
Reconstructing the boundaries of 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 execution of appropriate and effective techniques such as minimizing the package price, involving certain decent extras within the package or to move semi inclusive formula rather than half board rate of 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.
In contrast to this expenses of Forte Village management was too much towards making sound profit. The quality of service was decreasing in rapid way because of inexperience of Butler as well as service personals. The gap in the communication among the workers and management body were being noticed.
Solution to problem 2
In relation with 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 act as an aid in addressing the issue like threat of substitute. This majorly include reshaping of the expenses that is 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 to the role of reshaping the policy related with 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.
With respect to the present issue the suggestion that can be offered is that regulations of expenses as well as costs is required to be developed with effectiveness. The reshaping of the expenses would offer suitable access tool for entire enhancement of Forte group. Through gain insight towards focus on 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.
Suitable monitoring of members of team. This act as an aid in assessment of the performance of personnel for betterment of whole process. This is comprised of noting down of the key strengths and weaknesses as well as features of individuals needs to be listed. Further it is significant to make determination of the weaknesses, areas of conflicts and strengths that are missing. Along with this involvement of the highly educated people would assist to instill the communication modes between the employees.
It was being determined that tourism industry Forte Villa is facing greater competition in 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 case it can be presented that Forte Villages is at present competing within 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 make implementation as well as enhancement of suitable strategies which seeks at developing the whole background of Forte Villa and thus meeting the customer demand. The solution to such can only be met through exploring suitable methods which assist Forte Villa in holding effective position within the present competitive environment. The management body can involve greater number customers thus it can retain older customers through offering them packages which involve minimization in room charges, inclusion of extra packages with the reduction in investments, the introduction of semi-inclusive formula rather than rate of half boardroom which is applied by Forte Villa. Therefore for the sake of holding effective position within the market, various schemes are required to be executed that can assist in attracting larger base of customers.
The major suggestion for the issue presented involves implementing appropriate tool that assist in managing the problem. Thus such facilitates in satisfaction of the customers need and demands. The management needs to make introduction of appropriate alterations within the marketing strategies so as make production of positive influence over the customers. For the sake of attaining the present demand in detail investigation would be done on the entire market within Italy. Such assist in knowing the preferences of target market. The management can make use as well as implementation of social media for attracting customers through providing and advertisement of attractive packages relating with price.
Other suggestion that can be offered includes management needs to involves various promotional activates for the sake of awareness regarding the product about the package of firm. For enhancing the communication in marketing as compared to existing competitive field, Forte group should use marketing mix tools that assist in 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.
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 make execution of methods that would assist in shifting the culture of firm to culture which is primarily and effectively driven by the premium returns over the products. The product involves packages which Giannuzzi is thinking for implementing so as to retain the older and new customer base within the market. Therefore this assist Giannuzzi as well as management team of Forte Village group in making application and implementation of 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 to as well as listening to the concern of the routine customers who on regular basis visits 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 one that are attached with the Forte group for longer span of time.
Hospitality Management, Resort Management and Spa Management, Restaurant Management, Travel and Tourism Management, Accounting and Book keeping, Business Economics, Business Finance, Business Management and Operations, Business Marketing
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