7th Jan , 2010

Rep
ort
Management

The University Of Lahore

Lahore Business School
LBS
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Submitted To:
Maam Aqsa
Submitted By:

No Name Roll No

1. Noor Ullah BA-01083-148

2. Adeela Zulfqar BA-01083-129

3. Shiza Khalid BA-01083-166

4. Naveed Latif BA-01083-167

5. Rashid Zameer Minhas BA-01083-160

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6. Waseem Aslam BA-01083-156

Table of contents

Page No.

Dedication……………………………………………….. 04

Acknowledgement…………………………………….. 05

Objectives ………………………………………………… 06

Vision…………………………….. ………………………… 07

Mission …………………………………………………….. 07

Company Introduction …………………………………. .08

Company History…………………………………………

Planning …….……………………………………………… .09

Controlling……………………………………………….. .... 11

Organizing……………………………………………….. .. 12

Leading……………………………………………………….13

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 Internal Analysis………………………………………………14

• Value Chain Analysis

• Swot Analysis

External Analysis………………………………………………17

• PEST-G Analysis
• Industrial Analysis

Conclusion…………………………………………………….20

Recommendations……………………………………….…21

Reference……………………………………………………..22

DEDICATION:

➢ Firstly, we thank Allah for giving us the strength for completing

this job.

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 ➢ To all the people who prayed for us and sent us their best
wishes and gave us the courage to keep going on and never
break in the face of difficulties.

➢ To our respected teacher Mam Aqsa without whose guidance

this project could not have been completed.

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 ACKNOWLEDGMENT:

➢ Our teacher, Maam Aqsa, who provided us with endless and

invaluable guidance throughout.

➢ We thank the management of Holiday Inn for giving us their

time and co-operating with us. They treated us with courtesy
and provided us with all the information we needed.

➢ We also thank all the individuals who have contributed towards

the completion of this project.

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 OBJECTIVE:

In this project we have tried to observe an organization and see how it

is running.

The main objectives were:

➢ To practically observe the functions of Management.

➢ Find out how organization is controlling their external and

internal environment.

➢ The efficiency of the company.

MISSION STATEMENT

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 “THEIR MISSION IS TO CREATE QUALITY

FOR THEIR CUTOMERS”

OBJECTIVES

Achieve quality excellence and serve customers with quality

products

Holiday Inn SHARED VALUES

They value & respect the people.

They communicate openly.

They have integrity.

They are committed to winning.

Holiday inn hotels, an over view:

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 Holiday Inn is an international hotel and resort chain having hotels and resorts in
every known big city in the present world. The head office of the Asian subcontinent
is located in Mumbai (India). There chain includes
 Intercontinental Hotels & Resorts
 Crown Plaza Hotel & Resorts
 Express by Holiday Inn
 Stay Bridge Suites
 Holiday Inn Express
 Holiday Inn Hotels & Resorts.

Holiday Inn Lahore started its operation and functioning in July 1995. Holiday Inn
Lahore a perfect place comfortable and luxurious. Holiday Inn is a four star hotel. They
offer a variety of services and amenities such as full service restaurants and swimming
pools. Credit Card Guarantee Required For All Arrivals - Deposit May Be Required
During Special Events.

Holiday Inn Lahore, franchise of the Inter Continental Hotels Groups family is striving to
achieve new landmarks on roads to success .They are always in rent less pursuit of
excellence ensuring the social privacy of our valuables customers and guests .We know
that they are always there to add value to our prestige and enhance our reputation in the
world of care, comfort and hospitality.

IHG is the world’s most global hotel company and the largest by number of rooms. The
group has more than 3700 owned, leased, managed and franchised hotels and over
600,000 guest rooms across nearly 100 countries and territories.

Their strategy is the aim to provide all their guest outstanding quality and comfort with
genuine friendliness and professional warmth, surpassed by none.

Holiday Inn is located in Egerton Road Lahore 25-26 .It is a 4 star hotel with all
amenities of a 5 star hotels. It is conveniently located in central Lahore and is close to all
business centers. At this time 400 employers are working, three shifts are changed. The
Owner and Chairman of Holiday Inn Lahore is Khawaja Tariq Latif. MD is Khawaja
Khurram.

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Holiday Inn Lahore has the following features:

 120 Guest Rooms

 8 Suites
 15 Non-Smoking Rooms
 68 Double-Bedded Rooms
 52 Single-Bedded Rooms
 1 special room for disables
 Downtown/City Centre
 9 Floors
 Cocktail Lounge
 3 Restaurants (china grills, Lahore gates& top roof barbeque)
 Airline Desk: World Travel
 Rental Car Desk: International Tours (PVT)

Functions of Management
• Planning
• Controlling
• Organizing
• Leading

 Planning
Long range plan:

• The long term objective of holiday inn is to earn revenue.

• Becoming the leader in hotel industry in Pakistan.

Short range plan:

• The short term objectives are to provide courteous, friendly, caring

and best services to its customers.
• Making guests feel welcomes by providing best services.

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To achieve short term or long term objectives plans are made. Planes regarding
financial matters a made wholly by the executive management. To make a plan for
achieving any short term objective the executive management takes decision from
middle management and the employees as they have to play a huge part in achieving
the desired objectives.

Budgets:

Budgets are allocated to each department according to its requirement by the

executive management. While allocating budgets the revenue earning departments as
food and beverage and housekeeping are preferred. As most of the restaurants
revenue is earned through these departments.

The budget allocated is flexible to some extent as when any department has some new
idea to implement instantly or the restaurant has to fulfill any standard of IHG
urgently the some more budget is allocated to the needing department.

Budget meeting is held once a year in May. In which last year’s budgets are reviewed
and new budgets are allocated to each department. Only executive management is
allowed to attend the meeting.

Bench marking:

As holiday inn in Lahore is a franchise of IHG (Inter Continental hotel group) which is
an international group of hotels, so the hotel has to maintain the prescribed standards
from IHG. Thus the bench mark for holiday inn in Lahore is the international hotels
competing against IHG.

Contingency planning:

The restaurant has contingency plans for every department. For example in HR
department the contingency plan is that in case if the chief chef leaves the job for

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some reason or expires the restaurant will hire a trained chef from somewhere on
contract basis until it finds a chef of its own.

The advantages of making contingency plans are that:

• Helps getting into a better position to cope with unexpected developments.

• Avoid the shock of complete surprise.
• Avoid halting of operations during emergencies.

Participatory planning:

Restaurant involves its employees and staff in planning because they are the one who
will be influenced by the plans. Its HR manager told us that involving the employees in
planning and decision making is very important as whatever the plan is the employees
have to finally work on it. And if they are involved in planning they will work with
more efficiently and diligently.

 Controlling

Controlling means evaluating results and taking corrective measures against them. The
restaurant practices control in every department. For employees, Employee appraisal
form is filled by the supervisor after every 3 months evaluating the performance of the
employee. If the supervisor feels satisfied with the employee then he is passed and if
not then the employee is instructed by the supervisor until his performance is
improved.

Types of control

Company practices feed forward, concurrent, and feedback control.

• Feed forward control:

In some cases the restaurant practices feed forward control for example:

i. Installation of smoke detectors in every room.

ii. Installation of splashier in every room.

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 • Concurrent control:
The performance of employees is checked and evaluated as the work is done. If some
employee creates problem action is taken against him. The rules and regulations for
employees are like a hot stove. If something goes wrong at the employee side immediate
action is taken against him.

• Feed back control:

When services are provided to the customers, after that if any complain comes to the
management, the management takes corrective action after the problem has been
created. This comes in feedback control.

• Communication meeting:
A communication meeting for hotel staff is held after every 6 months in which everyone is
allowed to speak out his problems he is having with his supervisor, or the supervisor is
having with the staff. After listening to all the problems the management takes corrective
measure against it ensuring a friendly and flawless environment between worker and
supervisor.

 ORGANIZING
Organizational structure:
The organization chart of the Holiday inn hotel reveals that the structure in the Hotel
is:

✔ Vertical structure
✔ Centralized Power
✔ Defined reporting relationships
✔ Formal control system

These essentially indicate that there is:

✔ Routine tasks
✔ More formalization

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 ✔ Emphasis on rules and regulation
✔

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Selection of employees:

Persons with best abilities are hired by holiday inn and they are trained according to their
abilities to polish them into skills. This training helps the employees in their promotion
and improvement in efficiency.

Once the HR manager decides for a person through his interview and resume the decided
work is put on a 3 month probation in which he is leaded monitored and inspired by his
supervisors. His performance is evaluated every month, if the supervisor feels that the
decided person is good for the job then he is selected otherwise his is given another
chance or is simply rejected depending upon his performance.

Division of work:

The division of work for each worker is defined by his supervisor which he has to follow. A
worker works two weeks in day shifts, two weeks in the afternoon, and two weeks at
night. Every employee’s shifts are rotated in the mentioned manner.

 LEADING
Holiday inn leads, motivates and inspires its workers by providing them different
incentives and fulfilling Facilities and Incentives:

Holiday inn provides different incentives and facilities to its employees, such as

Incentives:

i. IHG has provided this opportunity to its every employee that he or she can stay at
any LHG hotel anywhere in the world with most nominal prices, enjoying every
facility provided.
ii. An employee working for even a single minute over his shift is paid more than his
co workers.

Facilities:

Facilities given to employees are:

i. Subsidized lunch facility.

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 ii. Each employee is given 1 lunch break during his 9 hour shift.
iii. 2 tea breaks are given to employees during their shift.
iv. Facilities of lockers are provided to every employee.

Due to the provided facilities and incentives the employees are motivated to perform the
best.

Salaries:

The salaries given to the employees are according to their nature of work but holiday in
keeps in mind, its competitors which are Pearl continental and Avari while deciding for
the salaries and sets them more then what both its competitors are offering.

For example:

PC and Avari both are giving their waiters the salary of Rs. 7,000 while holiday inn is
giving its waiters the salary of Rs, 8,000.

Training of labor:
The employees are given training about their specific fields after every 6 months which
increases their performance and learning.

 Internal Analysis
Swot Analysis:

Strengths:
The basic strength of holiday inn resorts is appreciation of their guest and they get the
feedback of their strengths through the comment card.

i. Company Image

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 Holiday Inn is a reputable organization and is well known all over the world.
Perception is of producing a high quality product and services.

ii. Quality Conscious

Holiday inn maintains a high quality standard.

iii. Unique Architecture

Holiday inn has unique architecture like roof top swimming pool. They have
built holiday inn Lahore with high technical approach.

Weaknesses:

i. Cost of production: The cost of production has increased due to structural and
administrative changes.
ii. Budgetary constraints: Budgetary constraints have limited the advertisement
budget for the company.
iii. Parking place: They have no proper parking place and the parking area is away
from the hotel building.

Opportunities:
i. New packages:

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Holiday inn has plans to launch low rate package just like PC (Marco Polo), which
according to its experts’ calculations would gain a handsome market share due to its
strong brand image.

ii. Changing Social Trend:

As in all over the world people are rushing towards quality which not only satisfy their
needs rather also give them feeling of being elite, so holiday inn provide them not only
satisfaction but pride as well.

Threats:
i. Competitors:

The major threat they are facing that if its competitors like PC and Avari lower the rates
or there service then they might be in trouble.

Value Chain Analysis:

Porter's Generic Value Chain

Inbound > Operations > Outboun > Marketing > Service > M
Logistics d & A
Logistics Sales R
G
I

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 N

Firm Infrastructure

HR Management

Technology Development

Procurement

The goal of these activities is to offer the customer a level of value that
exceeds the cost of the activities, thereby resulting in a profit margin.

The primary value chain activities are:

• Inbound Logistics: the receiving and warehousing of raw materials

and their distribution to manufacturing as they are required.

• Operations: the processes of transforming inputs into finished

products and services.

• Outbound Logistics: the warehousing and distribution of finished

goods.

• Marketing & Sales: the identification of customer needs and the

generation of sales.

• Service: the support of customers after the products and services are
sold to them.

These primary activities are supported by:

• The infrastructure of the firm: organizational structure, control

systems, company culture, etc.

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• Human resource management: employee recruiting, hiring, training,
development, and compensation.

• Technology development: technologies to support value-creating

activities.

• Procurement: purchasing inputs such as materials, supplies, and

equipment.

 External Analysis

Industrial Analysis:

Porter’s 5 forces model:

Michel Porter’s 5 forces model influence Holiday Inn in the following ways:

i. Rivalry:

Competitors are the main force of porters five forces .Holiday Inn’s main
competitors are the pearl continental hotel, Avari and other hotels in
Lahore.

ii. Threats of new entrants :

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Competitive market has always threat of new entrants which makes the
competition intense .For Holiday Inn nowadays this force is not too much
because hotel business in Pakistan is going mainly in losses.

iii. Bargaining power of buyers :

For Holiday Inn the bargaining power of buyers is not much as Holiday Inn
is a 5 star restaurant and customers cannot bargain about its payments.

PEST-G Analysis:

Political Factor:
i. The changing of government once introduced Holiday Inn to use
Kinley instead of Aquafina.
ii. There is often an agreement between the government and Hotels
that there people will stay in the hotel which have agreement with
them, so changing in government influences this factor a lot.

Economic Factor:
i. The increases in inflation rate in the economy the people in Pakistan
have money but the value of money is less due to which there is
gap in status. People who belong to Elite class only visit to their
Hotel.

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 ii. Economic conditions can greatly hamper the or strengthen the
growth of Holiday Inn, the recession can inhibit the Holiday Inn
growth whereas the boom can lead the hotel to mounting profits.

Social Factor:
i. People are status conscious and brand conscious in society due to
which they are compelled to choose a multinational hotel for their
stay.

Technological Factor:

i. They have replaced conventional TV with LCD Monitor

according to customer demand due to which they have
to bear a large amount of customer.

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Conclusions:

• The good side of holiday Inn hotel:

Regarding customer as the king.

Adaptability according to the customer requirements.
Use of technology.
Maintaining the essence of a 4-star hotel.
Expanding as required.
On-line reservations.

• The bad side of holiday Inn hotels

Lengthy recruitment process.

High tariffs that tend to attract exclusive class only.
Non diverse work force.
Less percent age of women employees.
Not involved in any corporate social responsibility

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  Recommendations:

• The hotel should permit the employees to join the crew

permanently, evaluating them after one month.

• The percentage of women employees should be increased without

glass ceiling effect and discrimination.

• The hotel should diverse work force by outsourcing employees

from other countries.

• The hotel has reasonable goodwill between its customers but it is

not practicing any corporate social responsibility, being the part
of society and working in the new economy the hotel should
involve itself in some corporate social responsibility.

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References:

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