Nirvana Hotels and Resorts

1. TASK

Nirvana Hotels and Resorts, is an international organisation that owns and manages holiday resorts, hotels and restaurants. In the UK, Nirvana Hotels and Resorts UK Ltd. (NEHRU) own and manage 3 distinct brands of hotel that are distributed widely across the United Kingdom and comprise the following:

1. Nirvana Express:
Caters for low cost/ budget market with rates between £60-£90 per room per night.
90 Hotels across UK and a divisional Head Office Building
2. Nirvana Inn:
Caters for the mid cost/ mid budget market with rates of between £80-£120 per room per night.
45 Hotels across UK and a divisional Head Office Building
3. Nirvana Plaza:
Caters for the premium sector with rates of between £120-£220 per room per night.
15 Hotels across the UK and a divisional Head Office building

and one restaurant chain that is similar in nature to TOGA Friday’s called:

4. Jo’s Bar and Grill
45 restaurants across the UK and a divisional Head Office Building

At present the three hotel brands and one restaurant chain are each managed by a separate division of NEHRU. Each division operates out of its own divisional head office and has a high level of autonomy over, for example:

Financial Management
Human Resource Management
Reservation Management
Estates Management
Quality Management
Supply Chain Management,
Customer Management

NEHRU also owns a group Head Office that co-ordinates the 4 divisions. It also undertakes group wide activity such as marketing and brand management.

Over the next 5 years NEHRU have plans to expand each hotel chain and restaurant chain across the UK by 25%. This will involve substantial investment in the acquisition and refurbishment of premises, both acquired and leased, and the new construction of some facilities.

In preparation for this expansion the board undertook an internal review, suggesting that although NEHRU currently trades successfully, to survive the planned expansion certain structural changes to NEHRU must occur. It suggested:

1. Restructuring NEHRU so that the 4 divisions are integrated thus enabling centralized management and operation.
2. Establishing a total facilities management organisation to manage and operate non-core business activities in an integrated way rather than the fragmented, separate discipline manner which has been its practice to date.

NEHRU has appointed yourselves, Sanford Management Consultants, to carry out a comprehensive review of the facilities management aspects of the business and to propose a workable strategy to meet the future demands of the enlarged integrated organisation. Your task is to prepare a report to the Board of Directors NEHRU which will describe this proposed strategy.

Your report is required to address the following issues:

1. A SWOT analysis of NEHRU in its current form in the highly competitive and dynamic industry in which it operates.
2. A facilities management strategy for the operation, management, and maintenance of the physical assets, including land and property, and support services systems which you propose will be required by the business.
3. A procurement strategy for the recruitment of all the support services to be required by the business, including specialist technical services.
4. An analysis of the threats to the business continuity of the organisation and the development of a plan to minimize the risks identified.
5. A mechanism for the monitoring and control of standards of performance and quality which is consistent with the intended market position of the organisation.

Credit:ivythesis.typepad.com