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Question;SOFT ROCK HOTELS;F722;GUIDELINES FOR CASE REPORTS;THE ASSIGNMENT: Prepare an;action-oriented report that presents concisely your analysis and;recommendations for the problems you choose to address. The case is very;loosely based on a real company. Restrict the report to no more than 1200;words typewritten, double-spaced. If at all possible,please use Microsoft Word.;GENERAL GUIDELINES: The report;should consist of four sections: an executive summary, problem analysis;recommendations, and limitations.;Clearly state your assumptions.;Be selective. Do not regurgitate;case facts. Summary tables in the text;are encouraged for quantitative information.;In addition to the report, you may supply figures (visual;representations of information contained in the text), and exhibits. Make sure these are referenced in the;text. Do not use the exhibits to;effectively violate the word limit. The;report should stand alone, and the exhibits should provide only the;documentation or details of a technical analysis. However, the exhibits should be easily;understood. Please insure that variables;are defined and assumptions stated. Try;to bring as much realism to the report as the case context will allow. Outside research pertaining to the industry;or the problem is permitted.;EXECUTIVE SUMMARY: State the;problems you choose to address. If you;do not intend to address all of the major problems in your recommendations;then indicate which one(s) you do intend to address. For a rich case, choosing which topics to;address is an important task. For;example, do not choose a minor problem with an obvious answer. Next, summarize your recommendations. This section of the report should consist of;one to two paragraphs.;PROBLEM ANALYSIS: Provide the;analysis necessary to support your statement of the problems. Indicate the significance or importance of;the problems through discussion of their magnitude, urgency, difficulty and/or;consequences of a delay in addressing them.;Discuss causal relationships whenever possible. You may include a discussion of secondary;problems. Indicate why you think these;are secondary.;RECOMMENDATIONS: State clearly your;recommendations. Take a stand for;action. Do not merely suggest ?more;study? or ?call in a consultant.? Direct;your recommendations to eliminating the underlying causes, not merely;minimizing or elimination the symptoms.;Indicate precisely how these will help to alleviate the problem. Include the most significant and relevant;facts, assumptions and principles. Include computational support where;appropriate. You may want to discuss;major alternatives that you rejected with a brief explanation of your reasons;for rejecting them. Discuss the results;you expect in greater detail, give support, and indicate when you anticipate;the realizations of the benefits.;LIMITATIONS: Discuss limitations of;your analysis or recommendations NOT;case limitations. These might include;assumptions you made but do not feel comfortable with, or impediments to;success that may prove more difficult than you expect. Discuss potential disadvantages of your;recommendations.;Please contact me if you any;questions.;SOFT;ROCK HOTEL;Chicago;Soft;Rock Hotel is an up-scale hotel chain operating in many large cities. The hotel;chain is attempting to appeal to a younger, up-scale clientele. Properties are;primarily located in large, urban cities. The firm is relatively decentralized;and focuses on financial performance measures and reporting. This case;primarily focuses on Soft Rock Chicago ? one of the properties in the hotel;chain.;The;General Manager of Soft Rock Chicago, John Hyatt, is primarily controlled on;hotel profitability when discussing his performance with corporate (along with;some other measures such as occupancy rates, customer satisfaction etc.) Soft;Rock Hotel General Managers are given wide decision making latitude as long as;they ?bring in the numbers.? A large portion of John?s bonus is explicitly;linked to Chicago hotel profitability.;Given;the focus on financial results at the corporate and hotel reporting levels;John has decided to analyze the performance of the Chicago hotel operating;departments (housekeeping, dining etc.) on financial performance.;One;of the hotel departments is housekeeping. Anna Van Degna, supervisor, of;housecleaning for Soft Rock Chicago, was surprised by her summary performance;report for March excerpted below.;SOFT ROCK HOTEL;Housekeeping Performance Report;For the Month of March;Actual;Budget;Variance;% Variance;$164,423;$154,000;$10,423 U;6.768% U;Anna;was disappointed. She thought she had done a good job controlling housekeeping;labor and materials usage but her performance report revealed an unfavorable variance;of $10,423. She had been hoping for a bonus for her good work but now expected;a series of pointed questions from John Hyatt, her direct report manager.;The;cost budget for housekeeping is based on standard costs. At the beginning of a;month, Anna receives a report from Soft Rock Hotel?s Sales Department outlining;the planned room activity for the month. Anna then schedules labor and materials;using this information. The March budget for the housekeeping was based on;8,000 room nights. Each room night is budgeted based on the following standards;for various materials, labor, and overhead;Shower Supplies;????????????????.;3 bottles @ $0.25 each;Towels*;????????????????.;1 @ $2.00;Laundry;????????????????.;10 lbs. @ $0.35 a lb;Labor;????????????????.;? hour @ $12.00 an hour;VOH;????????????????.;$6.00 per labor hour;FOH;????????????????.;$4 a room night (based on 8,000 room nights);*Replacement for towels evaluated by housekeeping as;inappropriate for cleaning and reuse.;With;8,900 room nights sold, actual costs and usage for housekeeping during April;were;$6,890 for 26,500 bottles of shower supplies.;$15,563 for 7,900 towels.;$31,329 for 88,500 lbs. of laundry.;$51,591 for 4,350 labor hours.;$25,839 in total VOH;$33,211 in FOH;In their monthly meeting;management meeting, Anna voiced her disappointment to John. She stated that her;instincts told her that the department was operating efficiently and was;puzzled why this was not reflected in the financial management report. In;addition, she argued that the large focus on financial results was not;providing the information she needed or used on a daily basis. John told Anna;that ?numbers do not lie.? He was concerned, however, that Anna?s frustration;may harm her morale and motivation. He told her he would give the current;situation more thought.;Given this situation, John;hired the world famous performance management consultant, Willy Smart of Perrin;Towers to analyze the situation. Specifically, John tasked Willy with analyzing;current performance and making suggestions on improving the performance;measurement system.;Assignment: Prepare;Willy?s report. Please see the Soft Rock;Instructions for more detail on report preparation.


Paper#42023 | Written in 18-Jul-2015

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