Sales and operation is considered to be a very essential aspect for any organization. This is because it is through sales that an organization is able to get revenues which are required for both the day to day operations and for the long term existence of the organization. It is for this reason the organizations that seek to be competitive and follow the going concern principle put a lot of resources and efforts in ensuring that they have the achieved the set sales targets.
Organizations that fail to invest activities that facilitate the achievement of sales targets end up being out competed by other organizations in the industry. For there to be realization of the expected sales, it is required of companies that they should but in place operations and should plan prior to the implementation activities.
Roles in the planning process
Various roles are played in the planning process of Starwood. These roles are played by the various functions of the organizations which include the finance, marketing, information systems and operations. This happens at the initial stages of the planning process as the organization needs to know what is required for there to be realization of the expected sales. Starwood considers using the various functions in the planning process as they provide various inputs that are essential for the achievement of the set goals in the planning process.
Finance/accounting
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This function of the organization plays a very important role and has various inputs in the planning process. Any organization that operates is able to do so through the finances that it has. No existing organization would therefore be able to operate without the inputs of the finance function. Starwood as any other organization therefore also requires the inputs of the finance function. During the initial stages of the planning Starwood is able to make allocations for the various activities that are involved in getting the products to the consumers. It is through the finance function that Starwood is able to plan for all the activities that require financial resources to operate. The members of staff that are involved in the sales require to get paid and therefore Starwood is able to make for such allocations in the planning stage through the finance function.
Other activities that are involved with sales such as distribution would also require to be financed and this also falls under the inputs of the finance and accounting function. In other words the finance function plays the role that is involved with the monetary requirements of the organization. Budgets as well as expected sales, revenues, profits and expenditure are all planned for by finance and accounting.
Marketing
This is another essential function that a Starwood use for the purposes of ensuring that it meets the set sales projections. In the planning process provisions for how marketing is going to be conducted are very important as they enable an organization to cerate the required market awareness of the products it supplies. Starwood should therefore put in place measures that would enable the market to be aware of the products it wishes to supply. Some of the marketing plans that should be considered by Starwood include conducting massive promotions and advertisements for its products. Advertisement is one of the ways through which organizations are able to make the general public realize the products to be sold. James A. (2009). The marketing plans should ensure that they have recommended that the individuals who are put in charge of conducting advertisement and promotions for Starwood are competent.
The human resource should be able to communicate to the market the advantages of using the products of the organization and why it is they should consider those products over other
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substitutes. It is also essential to include in the planning process provisions that would lead to introduction of prototypes to the market so as to adjust the product according to the needs, tastes and preferences of the consumers. Marketing function therefore provides essential inputs in the planning process that would enable Starwood to have the expected sales.
Information systems
The information systems function plays a very crucial role in the planning process of Starwood. It is through information systems that organizations are able to cerate the required efficiency and effectiveness. By planning to use information systems in its operations Starwood would be able to appropriately conduct activities of developing forecasts, and monitoring activities.
The organization would be able to develop analyses of the different situations that may arise during its operations. By planning to use information systems, Starwood would also be able to facilitate other plans in the other organization functions such as marketing and accounting. This is because information systems are not limited to a particular function. The plans would also be beneficial to Starwood as it would enable the company to analyze the performance and compare it with the expected and set goals and objectives.
Information systems would enable the organization to improve efficiency across all areas of the organization as they can apply to any function. Zmud, R. (2003). By including information systems in its planning process, Starwood would result to better performance in its operations especially those that require analysis and monitoring.
Operations
In the planning process, operations also play a very important role as they would enable Starwood to develop staffing plans for the future. Operations would assist the organization in making provisions that would facilitate in having the correct number of human resource. This would avert a situation where there are insufficient numbers of staff or where there are excess
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members of staff. It would therefore be possible to estimate the payroll requirements by knowing the number of staff that will be present in the organization.
Other inputs that would be from operations would be; enabling the organization to have human resource that is capable of serving the customers of the company with the required standards and competence. This would enable Starwood to cerate customer satisfaction which would consequently lead to customer loyalty. By having customer loyalty, Starwood would be able to maintain the existing customers and put much of its focus in acquiring new potential customers.
Strategy used by Starwood
The organization uses a mixed strategy to be able to handle the different requirements and needs that arise. Since the hotel industrial is characterized by different demand patterns during different periods of the year, Starwood employs techniques that enable it to handle the different patterns in the different regions.
The organization is faced with seasons when there is low demand and it therefore has to put in place measures that would enable it to attract customers to its services and products. It is able to do this by providing offers for those customers who use its services. Such offers include lower rates then those charged during the high season and therefore customers are bale to enjoy the same services at a lower cost. Other offers that are offered by the organization include weekend specials. By providing such offers to its customers, Starwood is able to retain the customers it has as they are able to have high quality services accompanied with lower rates and costs.
Starwood has also taken measures that enable it to handle the challenges that are associated with the high season. The organization has trained its employees to be in a position that they can handle different tasks. This therefore enables Starwood to deploy employees from regions that have moderate demand to the areas that are in need of additional staff. This closes the staffing gaps that may exist in the regions that are experiencing high demand. Armstrong, J. (2005).
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The hotel industry is faced with high levels of competition and therefore it is paramount that organizations in the industry develop their competitive advantages to be able to out compete the other players. This therefore leaves those companies that have not developed a competitive advantage in risk of not achieving their set goals and objectives. By adopting the mixed strategy the organization is bale to handle the dynamics that are associated with the hotel industry.
Staffing disparity
Starwood experiences staffing disparities that are associated with opening a new hotel and staffing an already existing one. The differences occur when the organization is required to make estimations during planning of the staff it requires for its new hotel. For a new hotel, Starwood would be compelled to make estimations during planning of the number of staff it would require. This is because the hotel was not in existence hence resulting to estimations. This is however not the case with an already existing hotel. It would be possible for the organization to provide during planning the exact number of staff that would be required for the next financial year.
Since an organization such as Starwood has verse experience in the industry and has operation of different hotels it would not be very challenging to determine the number of human resource that would be required for a new hotel. The company keeps records and data of the other operational hotels. It would therefore be reasonable to refer to the records of the existing hotels to be able to make decisions on the number of staff that would be required for a new hotel. Records and data that can be useful for Starwood in determining the number of staff would be; the size and complexity of the new hotel compared with the existing hotels. This would be important as it would give a clear indication after comparing the new hotel with the existing ones.
Conclusion
Starwood as an institution in the hotel industry should ensure that it makes use of the different
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functions in the organization to enhance its sales and revenues. Organizations that do not utilize the organizational resources are faced with challenges as they try to achieve the set goals and objectives. Creating a competitive advantage is also essential for organizations in the hotel industry as it creates a strong brand name.
Reference:
James A. (2009) A Framework for Marketing Management : Pearson Prentice Hall.
Armstrong, J. (2005) ‘demand forecasting: evidence- based methods’. Strategic Marketing Management: A Business Process Approach.
Zmud, R. (2003) The identity crisis within the IS discipline: defining and communicating the discipline’s core properties: New York.
