BX3193 Hospitality Management Assignment Solution

BX3193 Hospitality Management Assignment Solution

BX3193 Hospitality Management Assignment Solution

TASK B
2.1 Stages of menu product development and planning
1. Idea generation

SWOT of Royal Berkshire Hotel

Strengths

Brand recognition

Quality food and beverages served to the clients

Enhanced quality of operations

Loyalty of the customers (Wei, Yi and Guo 2014)

Weaknesses

Higher dependency on the suppliers

Lack of supply chain optimization

Higher cost of labour

Opportunities

Huge prospects of growth in the Australian markets

Scope of development in line of luxury consumer goods

Threats

Pressure of the high competition in the developing markets

New entrants in the industry

Lack of product service innovation in the business model

The market trends are dependent on the understanding of customer inclinations over healthy food habits has affected the functioning of eths business while operating in the diverse markets (Florén and Frishammar 2012). The concerned organization, Royal Berkshire Hotel, has undertaken steps to propose the food and beverages as per the identification of the inclinations of the customers towards healthy food options (Exclusive.co.uk. 2018). It has helped the organization in making its progress in the diverse international markets. On the other hand, the quality of the products that are developed by the organization has helped the same in upholding the efficacy of the functions. Induction of positive workforce culture in the business model has helped the organization in undertaking the smooth functioning of the same through a well operating workforce.

2. Idea screening and concept testing

The different issues that are faced by the management of the organization re related to the higher cost of labour, which has affected the profitability of the business. On the other hand, the lack of proper allocation of the resources to the departments as per the expertise has affected the smooth functioning of the business venture (He et al. 2014). The cost of raw materials and the labour charges has affected the smooth functioning of the business venture while making its expansion in the international markets. The different issues that are faced by the organization relating to the higher cost of labour and supplies have affected the functioning of the business and the expansion of the same in the markets.

3. Business analysis

The estimated selling price of the foods that are developed by the organization ranges from £12.50- £13.95. On the other hand, the venue booking of the organization starts from £72, which is lesser than that proposed by its competitors (Exclusive.co.uk. 2018). It has helped the organization in attracting the attention of the targeted consumers. The high sales volume of the organization has helped the same in maintaining its sustenance through continuous innovations. The social media integration functions of the business have helped the same in maintaining the efficacy of the business performance management while operating in the diverse international markets (Acur, Kandemir and Boer 2012).

 

Fixed Expenses

Fixed Expenses

 

Real Estate

$ 60,000

Leasehold Improvements

22,000

Capital Equipment

95,000

Location / Admin Expenses

47,000

Opening Inventory

-

Advertising / Promo Expenses

9,000

Other Expenses

65,000

Total Fixed Expenses

$ 298,000

 

Variable Expenses

Inventory or Materials

7586412.0

Direct labor (includes payroll taxes)

1000063.0

cost of raw materials

79653565.0

Other expenses

5321654.0

Salaries (includes payroll taxes)

2362125.0

Supplies

9654565.0

Total Variable Expenses

10557838400%

Breakeven Sales level =

0

4. New product pricing

The impact of the new product on the organizational context is based on the identification of the needs of the customers while operating in the diverse environments. The pricing strategy that is being considered by the organization is Penetration pricing strategy, which has helped the business in attracting the attention of the targeted group of customers to the product and quality service offerings of the venture in order to gain a competitive advantage in the market (Kim, Im and Slater 2013). The new product development of the organization will be enhancing the revenue structure through enhancement in the sales volume of the business.

2.2 Evaluations of influences on the development process (advantages and disadvantages)

The development process that is being undertaken by the business has helped the same in undertaking the sustainable functioning. On the other hand, the diverse innovations are more prone to face different uncertainties due to lack of proper understanding of the client inclinations towards a service or a food product that is developed by the business (Poetz and Schreier 2012). The continuous innovation that is being undertaken by the organization in devising a line of products has helped the same in achieving a competitive advantage over the other players in the markets (Thomas 2013). However, there are risks that are faced by the organization relating to the different fluctuations in the market economics, which might affect the business undertaking as per the approach.

References

1. Acur, N., Kandemir, D. and Boer, H., 2012. Strategic alignment and new product development: Drivers and performance effects. Journal of Product Innovation Management29(2), pp.304-318.
2. Exclusive.co.uk. (2018). Royal Berkshire | 4* Wedding & Conference Venue in England. [online] Available at: https://www.exclusive.co.uk/royal-berkshire/ [Accessed 28 Sep. 2018].
3. Florén, H. and Frishammar, J., 2012. From preliminary ideas to corroborated product definitions: Managing the front end of new product development. California Management Review54(4), pp.20-43.
4. He, Y., Lai, K.K., Sun, H. and Chen, Y., 2014. The impact of supplier integration on customer integration and new product performance: the mediating role of manufacturing flexibility under trust theory. International Journal of Production Economics147, pp.260-270.
5. Kim, N., Im, S. and Slater, S.F., 2013. Impact of knowledge type and strategic orientation on new product creativity and advantage in high?technology firms. Journal of Product Innovation Management30(1), pp.136-153.
6. Poetz, M.K. and Schreier, M., 2012. The value of crowdsourcing: can users really compete with professionals in generating new product ideas?. Journal of product innovation management29(2), pp.245-256.
7. Thomas, E., 2013. Supplier integration in new product development: Computer mediated communication, knowledge exchange and buyer performance. Industrial Marketing Management42(6), pp.890-899.
8. Wei, Z., Yi, Y. and Guo, H., 2014. Organizational learning ambidexterity, strategic flexibility, and new product development. Journal of Product Innovation Management31(4), pp.832-847