Topic: Business Data Analisys

Type of paper:	Coursework
Subject area:	Business
Academic level:	College
Style:	APA
Size:	39.0 kB
Word count:	776
Mark awarded:
Date submitted:	2008-11-21 23:37:19
Rating/Votes count:	4.20 / 5

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Tags:

research, business, operations, data, hotel, treaty, exam, final, league, payoff, Total Expenses, January Sales, Sales, Miscellaneous Expenses, Trend Slope, Forecast Sales, Cabot Lodge

Running Head : Majestic Lodge Case Study
Majestic Lodge Case Study
To : Directors of the Majestic Lodge
From : Mr . Kacheck (Manager )
Our present policy to keep the business closed during off-season has
adverse effects on the
profits that we make during season time . Our profit and loss statement
for the year 2000
reveal that off the 160 ,800 revenue earned during the business season 149 ,157 was paid
out as Majestic Lodge is
running a profit of mere 7 .24 on its annual turnover .
In order to remedy this situation I believe we ought to keep the
property open to business
even during the off-season . I further recommend investing in a heated
swimming pool this
facility will undoubtedly attract visitors even during non skiing
season . I strongly believe that
implementation of this recommendation will yield success since Majestic
Lodge overlooks
some of the most scenic spots of the mountain and the village and people
would love to spend
summer holidays in such pleasant setting . Initially we could implant
this idea by keeping the
30 rooms of the west wing open for occupancy while the east wing remains
closed .
By implementing my recommendation I presume that we would have between
20 -40
occupancy for the 30 rooms of the west wings . However occupancy rate is
bound to increase
gradually over the years . By committing 4000 dollars for advertising we
will have a high
probability of attaining 40 occupancy during off-season . It will be
necessary to offer our
services at a discount during the off-season months in order to get the
have a favourable
occupancy rate . I recommend that we offer I west wing rooms at 10 for
single occupancy
and 15 for double occupancy .
In order to minimize the cost of operation we can work without most of
the manpower that
we usually employ during the business season . We may do without a clerk
during the off-
season and employ the services of only 2maids rather then the usual 4 .
Additionally Mrs
Kacheck agrees to work at 100 a week as compared to 140 a week which
she is paid during
seasonal months . So our
of fringe benefits and other taxes .
An additional expense of 2000 will be incurred towards maintenance and 500 for insurance
if the west wing remains open round the year . The cost of utility (Electricity and Phone ) will
increase by an estimated 2340 , cost of linen will presumably increase
by 10 ,440 while cost
of cleaning supplies will increase by 384 .
The cost of running the west wing for 8 months would amount to 32 ,144 .
At an estimated
40 occupancy with 2 :8 single versus double occupancy ratio and at
discounted rates of 10
and 15 for single and double occupancy respectively we can expect
increased revenue of 39 ,600 . Thus the profit would be 7 ,456 which is 23 .20 of our 8
monthly expenditure .
In order to produce better results we will have to target a higher
occupancy rate , this will be
possible only if...

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