Arkin Palm Beach Hotel

Group Project

MGMT 308- International Business I

Instructor: Ridhwan Olaoke

Project by:
Ayna Karabayeva 137589
Daria Budanova 147090
Ik
Ik

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 CONTEXT

1) Introduction
2) About the firm
 When did the firm start operations
 What does the hotel offer- the product
 How many employees are working in the firm
3) Strategies
 How does the firm keep its market share
 How does the firm increase its market share
 How does the firm compete with its rivals
4) About the product
 What are the competitive advantages of the firm
5) External factors
 How do the government policies affect the firm
 How does the Cyprus problem affect the firm
6) SWOT analysis
 Strengths
 Weaknesses
 Opportunities
 Threats
7) Exports
 How much of the product is exported and how much is sold in the domestic
market
8) Imports
 How much of the raw materials, intermediate goods, and/or finished products are
imported
 How much is supplied from the domestic producers
9) Conclusion
10) References

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 INTRODUCTION

Paradise is right outside the door of your room: a green oasis, blue horizon of the
Mediterranean, which calls you, beckons you to stay and enjoy
When it comes to luxury, beauty, exclusivity of your holiday, nothing in the North
Cyprus can compare with the "Arkin Palm Beach Hotel".
The Arkin Palm Beach Hotel provides guests with the opportunity to indulge in a unique
and satisfying experience. Due to its personal service concept and exceptional facilities offered,
The Arkin Hotel endeavors to ensure a truly memorable stay for all its guests.
Work on the project was very informative, and now we know exactly what hotel to
choose for the holiday in Northern Cyprus in Famagusta. The information about the hotel was
very easy to find, since the entire staff of the hotel was very friendly, showed the entire hotel
area and rooms, spa, gym and so on and gladly answered all our questions

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 WHEN DID THE FIRM START OPERATIONS?

Ideally situated nearby the Mediterranean Sea in Famagusta, northern Cyprus, The Hotel
offers "a Heaven on Earth Location" where the turquoise hues of the Mediterranean sea, the
magnificence of its private golden beach, nature`s own beautiful greenery, and amazing sunsets
all come together in a truly idyllic setting.
Just like the city itself, The Arkin Palm Beach Hotel has an ancient history. The landmark
accommodation in the region for many years has caused everyone knew the name. The Arkin
Palm Beach Hotel as it was mentioned before has a long history. The name was actually Palm
Beach and was established in 1940s.It was purchased by the Arkin group in 2009. It has been an
historical point of convenience in the area for a long time .Arkin group has been one of the big
companies in North Cyprus and it has 11 companies. As a recognized brand in the international
fields of hospitality and leisure activity, the Arkin Group has used the period of global economic
slowdown to consolidate its achievements of the last decade. At the same time it has continued a
measured program of acquisition and development of complementary businesses to strengthen its
market position in real estate assets.

It provided so many advantages by integrating and making it efficiently, effectively free

time operations in the country. The Arkin group has always been motivated to manage risk
which made the Arkin Palm beach the only 5 star boutique hotel in Famagusta.

WHAT DOES THE HOTEL OFFER?

Arkin Palm Beach provides pure service and no products and it is included in the
Tourism and Hospitality branch among services. It provides variety of services to both Domestic
(15%) and International (85%) guests. Mostly, the services are being offered to international
people than domestic ones .It is the ideal complement, offering magnificent beach side
accommodation to the international tourist market. Turkey continues to be a major market for the
Arkin Group and the acquisition of the Arkin Pruva boatbuilding yard at Antalya, and is proof of
its confidence in the Arkin brand to attract high net worth customers. Pruva Argos Yachting has
since built and launched the magnificent Daima, a Gulet style motor sailor and winner of the
coveted Bodrum Cup in 2009 and 2011. The fundamental long term success of a major business
can only be secured by a strong capital base. The Arkin Group meets this pre-requisite firstly in a
strong combination of real estate, on-call liquidity and low gearing. Financial capital strength is
reinforced by an experienced international management team and the loyalty of local staff
committed to gaining skills and ambitious to progress. The hotel offers a variety of customer
centric services which are satisfactory to their customers and this has helped the hotel retain
loyal customers over significant period of time. Our study confirms that, the two important
factors, service delivery and customer satisfaction are significantly related and could predict the
growth, improve the quality of services offered, increase the patronage and consequently the
revenue generated at hotel and tourism industry.

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 The services are provided in such a way that satisfy customers and visitors and making
people feel comfortable leave the hotel with unforgettable memories. The services provided by
the hotel can be divided into three main categories:

1. Accommodation : rooms and suits


 JUNIOR SUITE ROOMS
which offer an extraordinary layout for your
comfort and the expansive Mediterranean
Sea views are quite a treat.

 RESIDENT SUITE ROOMS

which provide a master bedroom and a living
room with an expansive Mediterranean
Sea view.

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  GRAND PALM SUITE ROOMS which are one-of-a-kind experience where each
element has been hand-selected or designed for the discerning guest with a sense of style and fun;
open bathroom with a jacuzzi and shower and large balcony with a spectacular Mediterranean view.

 SEA CLUB ROOMS which are the

choice for guests who wish to embrace the sound and
sight of the Mediterranean waves. While those who
enjoy nature choose a Resort View room for lovely
gardens and landscaping as well as a delightful
swimming pool vista.

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2. Hotel: The hotel consists of:
★ Restaurants and Bars:

LOBBY BAR:
24 hour location for drinks and light bites,
including international wines, spirits, and personalized
cocktails, desserts and coffees, either at the bar or on the
terrace.

RESTAURANT CASCATA
Indoor - or al fresco - stylish venue with sea views
offering bountiful and relaxed breakfasts; lunches with a
Mediterranean flair; sophisticated dining featuring locally-
grown and harvested specialties, all complemented by the
Hotel’s impeccable service and warm ambiance.

SURF BAR

Watersports center and outdoor bar on the golden

sandy beach, for a light menu featuring creative salads,
sandwiches, fruit, frozen cocktails and all refreshments.

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 BEACH CLUB
Relaxing poolside, or taking a break from the
beach, bite into the perfect gourmet burger, or chose
from a selection of sandwiches, seaside salads,
Caribbean-influenced tropical cocktails and frozen
thirst quenchers.

Conference and Meetings

Arkın Palm Beach Hotel Conference & Meetings - The Great Room

The Arkin Palm Beach Hotel specializes in pairing the ideal meeting space in North Cyprus with
the most impeccable service at The Great Room. A meeting of the minds that also satisfies the
senses is our business; from exclusive board meetings, to product launches or corporate-wide
celebrations, we ensure all your events are memorable. Dining Capacity up to 400 people.

Spa and Wellness

Replacing your worldly concerns
with a world of comfort is our pleasure.
Escape to the peaceful and rejuvenating
solitude of the Spa
and Wellness Center complete with
treatment rooms, relaxation lounge and
terrace, sauna and steam rooms, fitness
center and lap pool.

Weddings
The Arkın Palm Beach Hotel offers a
five-star, five-diamond wedding setting
with consistently thoughtful, and
above-and-beyond service in every
detail to ensure a memorable occasion.
The venues adapt to host a gathering
for a casual rehearsal dinner to a gala

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occasion, to a poolside reception overlooking the Mediterranean to a stylish farewell brunch at
the bar or on the terrace. Also the friends and family may continue with relaxation on the beach,
at poolside and in the spa. Overnight guests enjoy spacious quarters, with a balcony overlooking
the waves. All guest rooms and suites have been completely restyled with a chic, contemporary
look, capturing the casual sophistication of a seafront home.

HOW THE FIRM ARRANGES THE ORGANIZATIONAL STRUCTURE

OF THE BUSINESS?

Organizational structure generally refers to the way that an organization arranges people
and jobs so that its work can be performed and its goals can be met. In an organization of any
size or complexity, employees' responsibilities typically are defined by what they do, who they
report to, and for managers who reports to them. Both upward and downward form of an
organizational structure can be traced in Arkin Palm Beach. They have a laid down rules and
regulations that employees follow. Information concerning the activities or decision of the firm
are passed down by the top manager to the middle manager who later passes it on to the
subordinates. In addition, to receive the feedbacks, they have to tell their supervisors and it goes
around like that. It is a kind of a firm that respects the interest and charisma of each individual’s
i.e., a subordinates cannot just walk down and talk to the top manager or a low manger cannot
just talk to the top manager. They have to follow the protocol of the firm.

The hotel employees and employee benefits

As we all know, “employees stand as the bedrock and a gateway to the success of any
organization”. There is always a mutual relation between customer satisfaction and employee
satisfaction. If an employee is satisfied with what he is doing, he will do his best to keep
customers satisfied because he is enjoying what his job. Arkin Palm Beach Hotel employees vary
from season to season. During winter the demand for employees is low between 90-100
employees and in summer it is high between 160-170 employees. The main nationalities are
Turkish employees 80-90% and few British, Arabs and Africans. According to the manager of
the firm “Mr Ozan Kirbac”, he said, our number of employees varies. As we all knew, when it is
winter or fall season, the number of employees reduces to 80 or 100 but during summer period, it
increases to 120 or even 150. He furthered more and told us that there business is a kind of
business that has a high sales during summer period. In addition, most of the employee’s
nationalities are Turkish and other countries like (Arabs, British, Africans and also some of the
countries). They did this in order to satisfy their customers and to prevent language barriers.
Arkin Palm Beach really care about its staff and takes their employees into consideration before
doing anything. Some of the benefits they render to their employees are as follows:
 Providing a conducive environment and an equipped working place
 Providing employees with regulars according to their needs i.e. at most 4 times a
day
 Providing a free transport facilities to move them from their home to the hotel
 Providing insurance and all other securities against any emergency or loss.

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  Providing a comfortable working hour and also gives them discount for health
insurance
 Providing them with all other social activities like picnic, holidays and all other
opportunities.

PALM BEACH HOTEL STRATEGIES ON:

HOW DOES THE HOTEL KEEP ITS MARKET SHARE AND COMPETES
WITH ITS RIVALS?

Market share is defined as the percentage of its control over the total market for its
products and services. For any hotel or resort to maintain its position as a leader, it must analyze
its current and future operating environment, economic and market conditions, consumer and
travel trends, as well as its ever-evolving competitive landscape.
The reason palm Beach hotel continues to achieve success is that it takes a long term
view, by establishing a clear strategic plan which should is reviewed and updated each year. In
their mission statement they have mentioned:

“The Arkin Group has used the period of global economic slowdown to consolidate its
achievements of the last decade. At the same time it has continued a measured program of
acquisition and development of complementary businesses to strengthen its market position in
real estate assets. Taking the view that a strong balance sheet provides vital protection against
inflationary forces, the Group has added a second hotel to its North Cyprus hospitality operations
and extended the existing Colony Hotel in Kyrenia to include all day dining at The House, and
event function facilities for up to a thousand guests at The Garden.”

Creating an effective strategic plan, and using it as a decision-making tool, will help
ensure a hotel's future financial health and profitability. Arkin Palm Beach Hotel is a 5 star
boutique hotel in Magusa, North Cyprus, meaning it distinguishes it from larger chain/branded
hotels by providing guests with ultra-personalized service and accommodation. How it has been
successful in doing this?

 LOCATION SETTING:
Arkin Palm Beach located itself in a conducive environment. It is situated within a
walking distance from the old port city of Famagusta and set in a beautiful palm- filled lush
green gardens. It is located in the area of the “Varosha” where the old history image of the
county can be seen. It is also close to the sea side, supermarkets and people can easily get
whatever they want at the right time at a trackable distance.

 CLIENTELE:
Arkin Palm beach hotel has developed a deep understanding of the type of customers
they want to attract, and offer an experience that is tailored to that specific group in achieving
sustainable, long-term growth. They tried to get more and more adjusted to the preferences of
current and potential guests and build meaningful, long lasting relationships with their customers
and potential guests.

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  SERVICE AGREEMENTS:
Just like tourism industry, during the high season (summer Months) there are tourists
from all over the world coming to stay at Arkin palm beach hotel, but during the low season the
number drops. And they have already planned for that. They have a service agreements with
Organizations like Eastern Mediterranean University to effect making sure they are guests at the
hotel, the agreement includes housing guests of EMU who travel down to the city to give
speeches, hold seminars and other functions at special rates. Also they are agreements with Arkin
Palm beach Casino which is also a company in the Arkin group and they provide
accommodation for Casino customers who fly in from places like Turkey, Russia and the UK to
play Poker.

 ENGAGED CUSTOMERS ARE LESS PRICE-SENSITIVE:

Almost similar to all services, here in the Palm Beach, fully engaged guests who are
emotionally attached to the hotel are of primary importance for the hotel. Customers who are
fully engaged are less sensitive to price because there are emotionally connected to the brand and
it moderates their concerns about cost. This is true for customers of the hotel as well and leads to
customer prioritization.

1. How does the hotel increase its market share?

As they mentioned in their mission statement:
‘In the United Kingdom the purchase of an 18 hole golf course at Hersham in Surrey
establishes the Group’s leisure offerings there and will be used to introduce its brand to one of
the most important markets in Europe. Turkey continues to be a major market for the Arkin
Group and the acquisition of the Arkin Pruva boatbuilding yard at Antalya, Turkey is proof of its
confidence in the Arkin brand to attract high net worth customers. Pruva Argos Yachting has
since built and launched the magnificent Daima, a Gulet style motor sailor and winner of the
coveted Bodrum Cup in 2009 and 2011. The fundamental long term success of a major business
can only be secured by a strong capital base. The Arkin Group meets this pre-requisite firstly in a
strong combination of real estate, on-call liquidity and low gearing. Financial capital strength is
reinforced by an experienced international management team and the loyalty of local staff
committed to gaining skills and ambitious to progress. Together they look forward with
optimism and confidence to the opportunities for managed expansion in the new era of global
growth”
So they believe with strong combination of real estate, on-call liquidity and low gearing,
financial capital strength which is reinforced by an experienced international management team
and the loyalty of local committed , skilled and ambitious staff they can progress and increase
their share in the market. Together they look forward with optimism and confidence to the
opportunities for managed expansion in the new era of global growth. Some ways to do so can
be:

Creating a customer for life:

The journey toward creating a "customer for life" starts as the customers reaches the
receptionist desk for the first time. As we interviewed with many customers there, they all agreed
that the behavior of the employees and management was quite satisfactory and some of them
were even over satisfied and delighted and did not expect such good quality service. They said

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the employees were responsive and were willing to help and answered their questions about
different things patiently and eagerly. Also they were skilled and knowledgeable at what they
were doing and it created a sense of assurance in the customers. One of them said he found
empathy in the behavior of the employees. They treated each individual according to their needs
and it meant a lot to him. Some said before they came here they had studied the hotel website
carefully and read peoples’ comments and now they were happy because they felt they received
what they have been promised. They said the management and the employees were reliable
because the kept their promises and offered the service as it was advertised on their website.
Also they were happy with physical evidence, first of all the website which includes almost all
the needed information in three languages (Turkish, English and German). Then the hygiene, the
appearance of the hotel, rooms, the uniform of the staff, etc. everything was just perfect
compared to what they expected. Overall, about four in every five-hotel guest is fully engaged,
with staff knowing each of them on first name basis and tailoring their services to their needs,
also carefully respecting privacy and personal space in this regard so customer engagement does
not violate the need for the guests personal space.

APPEALING TO NEW CUSTOMERS:

The new customers are considered as strangers to the service and it is very important to
try to attract them and satisfy them then turn them into friends and eventually loyal ones. As we
found the opportunity to interview with a family from Russia, they were first of all heavily
influenced by others when deciding to book the hotel for the first time. They checked the website
and read all the comments written by previous gusts about the hotel. They relied on
recommendations from friends, while upper midscale guests defer to the preference of family
members and friends. Midscale guests depend on information on the hotel's website when
initially deciding to book a room. The exception is economy customers, who rely on a hotel's
brand reputation when booking an initial stay and regarding this classifications we have taken
extreme care to make sure we appeal to their sensitivities when seeking information from us
directly or through a third party. And Akrin Palm Beach has proved to be quite successful in both
attracting new customers and stablishing stronger binds with the old ones. This includes creating
the right environment to winning the new guests over. These customers value the look and feel
of the property, and they trust their own judgment and observations when choosing our hotel for
the first time.

ENCOURAGING REPEAT CUSTOMERS:

The four old Ps (Price, Product, Place, promotion) have always been the top
considerations for all customer while choosing a service or product. However it does not mean
new Ps should be ignored, (People, Physical evidence and process). Palm beach is located just
five minutes’ drive from the city center and from the beach of our hotel you can see the historic
city of Varosha.(Place) However, the hotel's brand reputation as a five star boutique hotel which
focuses on customer relationship with the brand and how to make sure they enjoy their
stay(physical evidence). To encourage guests to return often, the hotel staff provide them with
reliable service, solve their problems, and respond enthusiastically to their needs from the very
first visit (people). When employees solve guests’ problems, the customers can become more
engaged than guests who didn't experience a problem during their stay.
For our luxury guests, price is not a top factor in repeat booking. The look and feel of the
hotel continues to be a crucial consideration, but responsive employees and their ability to solve

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problems become more important, especially the process matters here. How fast and with what
quality they try to solve the problems. Service reliability is important to upper upscale and
upscale guests, while responsive employees appeal to upper midscale and midscale guests.
Economy customers also value employees who are responsive and can solve problems, but they
still put price first when rebooking, as do midscale customers. Even the most price-sensitive
midscale and economy guests who are fully engaged spend more than their actively disengaged
counterparts.

ATTENDANCE TO SERVICES THAT MATTER MOST

Most hotels can fall into to trap of "gold plating," or adding services and products that
result in increase in costs but don't necessarily boost market share. To avoid this trap, Arkin
Palm beach hotel understands which services are meaningful to their customers and new
customers they want to attract so they offer amenities that will entice customers without
increasing price to a level that will drive guests away. Services such as double cleaning daily,
complementary concierge services, complementary bag lifting and late check-out.

CREATING CUSTOMERS FOR LIFE:

It is not easy to write a prescription and apply it for the same survives in one industry.
Although there are some fixed general rules but to win in the market and stand out, you need to
apply different methods depending on many factors. It is the art of management to decide which
method can be applicable where and when. Of course there are general rules as it was mentioned
before like price and location, people (staff), physical evidence, especially in bringing first-time
customers through the door but keeping them and turning them into loyal ones needs planning
and well thought strategy. For example here, Palm Beach employees create an emotional
connection with guests during their initial stay, this is a reason why they are likely to return the
next time they need a hotel, even if another brand is offering a better price or a more desirable
location.
The first visit is a crucial opportunity for hotel staff to create a customized, differentiated
experience that will encourage guests to keep coming back. Winning repeat business comes
down to understanding what is important to the customers and at Palm beach they focus on
offering services that matter most to guests, and ensuring that the staff members understand and
can deliver on guests' preferences. Hotel staff members who can handle problems with ease,
provide reliable service, and are responsive to customers' needs represent an enormous
competitive advantage.

THE HOTEL’S COMPETITIVE ADVANTAGES

 Offering high class services regarding physical evidence: furniture, beds, the
building, hygiene, room cleaning is done twice a day- morning and night cleaning, etc.
 Functioning as an area supported by a full IT and communication services which
allow companies being hosted to focus on solid business time management balanced with
essential relaxation for their executives.
 Being the only hotel in Famagusta that has an open beachfront view for their
guests.
 Employing British staff allows the Hotel to have employees who can
communicate fluently to guests in English, which is the widely spoken language in the world.

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 THE EXTERNAL FACTORS THAT AFFECT THE HOTEL
GOVERNMENT POLICIES AND CYPRUS PROBLEMS
No matter who hard you try to apply the most recent methods and advanced technologies,
still there are always several external factors such as economic policies, taxation policies, and
interest rates, which have huge impact on the hotel and overall tourism industry. When
government increases tax, automatically, the prices of the services and products such as rooms,
food, drinks, and events increases, which customers do not identify with positively besides the
fluctuation of exchange rates always have a negative impact on the hotel and its profit
realization.
Today in Cyprus the quality of life and the ability to exercise basic human rights depends
on which side of the border you live. If you live in South Cyprus, you have the opportunities to
enjoy normal trade, political, and social relations with people around the world because you are
considered a European. In contrast, people living in North Cyprus have had to tolerate
internationally imposed embargoes violates their rights to engage in any political, economic,
social or cultural activities, and it leaves them completely isolated from the rest of the world.
As you will see below, the lobbying of Greek Cypriots has ensured that the embargoes
they have applied to North Cyprus is adhered to worldwide (bar Turkey) and their impact is
therefore as comprehensive as any UN sanctioned embargo.
 Ban on Direct Communication
 Ban on Sporting / Cultural Events
 Ban on Direct Trade
 Ban on Representation
 Ban on Economic Development and International Aid
 Ban on Direct Travel
Because of these restrictions the Palm Beach hotel, is limited in its services and it cannot
enjoy the benefits of direct trade as well as marketing its services internationally, and engaging
in their own area of business with other recognized countries beyond the borders of Cyprus. The
government policies have paralyzed possibility of expansion. The hotel is faced with little or no
privileges of exporting their services or products and face high tariffs during importation.

SWOT ANALYSIS
What are the strengths, weaknesses, opportunities, and threats as well as a structured
planning method which evaluates these four elements of a project or business venture or in our
case the hotel service? Why is important to be aware of these four elements?
By understanding the weaknesses of our business, we can manage and eliminate threats
that would otherwise catch us unawares. More than this, we can start to craft a strategy which
helps us distinguish ourselves from our competitors, so that we could compete successfully in
our market. Strengths and weaknesses are often internal to an organization, while opportunities
and threats generally relate to external factors. With information we have gathered, we are now
able to examine the strengths, weaknesses, opportunities and threats of Arkin Palm Beach Hotel.

STRENGHTS
Location: the first and most important strength of the hotel is its location. It is located a
few minutes’ drive away from the city which allows its guests to explore Famagusta at ease. It is

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also a few minutes’ drive away from the city center which also has historical landmarks such as
“Castle” that guests at the hotel who include tourists, can tour at will.

Achievements: Palm Beach Hotel is the only 5 star hotel in the vicinity, and it has
received awards and recognition such as Certificate of Excellence from, Best customer service
in 2012 and ranked in the Top 25 luxurious hotels (both in south and north Cyprus).

Variety of luxury service: It is the only hotel in the vicinity which offers a variety of
luxurious services such as a spa, casino, swimming pools, gyms, bars, an event and occasion
hall, saloon and menu variety to its customers to satisfy the different preferences of its
customers.

Loyal customer: the company has been able to develop and build a good relationship
with it costumers to the point of knowing some of them by their names, with their specific
preferences and offering them unique customer services allowing customers to continue to revisit
the hotel.

Brand name: Being that Palm Beach Hotel is a sub- company of a well-established
family of Arkin Group Companies, it automatically benefits from Arkin Group brand name and
recognition.

Unique décor: its unique and grand interior and exterior décor is a plus to the hotel, as it
creates an atmosphere of exquisite comfort and satisfaction for its guests.

Employees: It has always trying to hire the most talented knowledgeable empathic
employees who can attract customers and stablish good relations with them.

WEAKNESSES:
Not all services provided are a hundred percent perfect. They have their own weaknesses
which should be identified and solved. Some of the weaknesses related to Palm Beach Hotel can
be categorized as:
 Some of the items listed on the menu are often not available due to seasonal foods.
 Low staff diversification: the hotel lacks diversification of both workers which
limits the hotel as both workers and customers are mainly comprised of just Turkish, Cypriots,
British and a very few other European countries.
 Language barrier: employees not being able to communicate fluently with its
costumers mainly in English could serve as a shortcoming or disadvantage to the hotel.

OPPORTUNITIES
 Closed borders: If the boarders were to be open it would kill the natural beauty of the
environment and open a gate way for many competitors to establish themselves.
 The summer seasons: with an in troop of tourists and other guests during the summer
seasons, the hotel spontaneously sells its self, serving as an opportunity to it.

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 THREATS
 The winter season may pose a threat to the progress of the hotel. There is no inflow
of customers as the weather is not favorable during this period.
 Seasonal foods limit the supply of a variety menu the hotel offers to its guests.
 It also faces high tariffs on importation of goods due to the embargoes placed on
goods.
 Unrecognition of North Cyprus is a huge intimidation for many businesses in
Cyprus, in the Palm Beach Hotel.
 The hotel limits it’s marketing to Cyprus alone, as it cannot market its services in
other countries and beyond due to the embargo placed on Cyprus.
 Because the hotel has no direct threat or competitor, it has a tendency to relax which
could be a threat in itself to the hotel.

DISADVANTAGES OF SWOT ANALYSIS

The SWOT method is not a process in itself, such as strategic planning, opportunity
analysis or competitive analysis. Instead it's a tool used to structure a particular brainstorming
session. As a result, a problem or process that's addressed using the SWOT tool may itself be
thought of in terms of phases or a life cycle. Despite the advantages this tool provide like being
“ Problem Domain, Application Neutrality, multi-Level Analysis, Data Integration, Simplicity,
low cost”, it has its own disadvantages as well like :

No Weighting Factors:

SWOT analysis leads to four individual lists of strengths, weaknesses, opportunities and
threats. However, the tool provides no mechanism to rank the significance of one factor versus
another within any list. As a result, any one factor's true impact on the objective can't be
determined.

Ambiguity:
SWOT analysis creates a one-dimensional model in which each problem attribute is
viewed as a strength, weakness, opportunity or threat. As a result, each attribute is seen to have
only one influence on the problem being analyzed. However, one factor might be both a strength
and a weakness. For example, locating a chain of stores on well-traveled streets that grant easy
access to customers might be reflected in increased sales. However, the costs of operating high-
visibility facilities can make it difficult to compete on price without a large sales volume.

Subjective Analysis
To significantly impact company performance, business decisions must be based on
reliable, relevant and comparable data. However, SWOT data collection and analysis entail a
subjective process that reflects the bias of the individuals who collect the data and participate in
the brainstorming session. In addition, the data input to the SWOT analysis can become outdated
fairly quickly. The Palm Beach hotel relies on its SWOT analysis and relying solely on SWOT
analysis could be a threat as e.g. corporate planning which looks at a company's goals, objectives
and future work activities. The plan expresses the strategies, milestones and desired outcomes for
the hotel, along with progress review practices and change management policies of the hotel.

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Strengths: Weaknesses:
 Location  Low staff diversification
 Achievements
 Language barrier
 Customer loyalty
 Seasonal menu
 Unique décor
 Brand Name

Opportunities: Threats:

 natural beauty of Cyprus  Embargoes

 The summer season  High tariffs

 The winter season
 Limited marketing opportunities

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 EXPORTS
Since the Arkin Palm Beach is a service company, they are limited when it comes to
exports. Palm Beach hotel as a body exports tourism and accommodation services from
Famagusta North Cyprus to countries mainly, England, Turkey, Russia, Kazakhstan, Azerbaijan.
They are restricted in exporting or marketing their services to European countries or in the EU
due to the embargo on North Cyprus by the UN & EU. They focus their marketing on
neighboring countries and their former colony England.

PALM BEACH HOTEL IMPORTS

Palm Beach Hotel imports different goods and expertise as we interviewed with the
manager. Some of the intermediary goods they import are fine marble and tiles, light fittings, and
bathroom fittings. They import finished goods like furniture, and assorted interior and exterior
designs and décor. They also import their customized towels, staff uniforms, bath gels, soaps,
and a lot more.
Most importantly they import services, such as their top management, some of whom are
British-based.

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 CONCLUSION AND SUGGESTIONS

To conclude, it should be noted that Arkin Palm Beach Hotel has proved to be a very
strong growing establishment since it restarted in 2009. It has been able to provide a quite
satisfactory service among tourism and hospitality services in Magusa, North Cyprus, due to the
enormous effort and much deep studies on customer attraction, satisfaction and loyalty. It has
also been able to utilize its resources to its best ability by identifying its weaknesses and threats,
the Palm Beach Hotel is able to explore its strengths, and optimize its opportunities to its best
capacities.

The only suggestion we could have is that the hotel should try to find possible legal
avenues to break through barriers restricting its trade within Cyprus alone and from other
internationally recognized countries, also the hotel should look to apply political pressure on the
government towards a quick and positive solution of the Cyprus problem so as to expand its
market share.

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 REFERENCES
1. http://www.north-cyprus.travel/Arkin_Palm_Beach_Hotel
2. Idris S. Qubtan, Front Office assistant Manager: Arkin Palm Beach Hotel. Arkin
palm beach hotel
3. http://www.arkinpalmbeach.com/
4. James. M, Amy. C, (1996-2015) The SWOT Analysis: Discover New
Opportunities, Manage and Eliminate Threats
5. https://www.mindtools.com/pages/article/newTMC_05.htm
6. Embargoed Ltd. (2005): Turkish Cypriots Under Embargo,
7. http://embargoed.org/embargoes.php
8. https://en.wikipedia.org/wiki/Embargo_against_Northern_Cyprus
9. From Economy to Luxury, What Matters Most to Hotel Guests. John Timmerman
and Daniela Yu
10. http://www.arkingroup.com/index.html
http://www.referenceforbusiness.com/management/Ob-Or/Organizational-
Structure.html#ixzz47nwPTaCO
11. http://hotelexecutive.com/business_review/78/strategic-planning-positioning-
hotels-in-a-competitive-landscape
12. http://www.casinosavenue.com/en/casino/arkin-palm-beach-casino-hotel-
famagusta/8644
https://www.directtraveller.com/blog/an-unbiased-and-informative-review/
13. http://smallbusiness.chron.com/advantages-amp-disadvantages-swot-analysis-
41398.html

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