The first problem is John who has been not static enough on one idea and test it, such as sticking to the idea of a good run restaurant.
Over spending on marketing by Mary was a grave mistake, even though she thought that marketing is not a cost and will be compensated. This is not right for a 20 room hotel which is competing with similar category hotel and in a small market. There are fewer exemptions for mistakes in a sensitive and small market, which Mary ignorantly committed.
Analysing the origin of problems
John sensed that the restaurant was not doing well or not fit to be run when it fell in its sales only a bit, which could actually have been due to natural economic shifts. Changing the restaurant plan abruptly led to the resignation of his reliable chef and the eventual close down of it. John seemed to be preoccupied with a notion of finding faults when the majority of things were going good with a small amount of unexpected events. These can always be accommodated as they may not be of an intentional nature, but being externally influenced. The processes were never in place for a long enough time for them to reflect their impacts on profits, because John and Mary kept on changing and intervening in them when there was a slight fall. Too much intervention leads to cluttered thinking, leading to ignorant decisions, often self-destructive in nature. They could have hired and retained good quality staff by learning from them and forming a committee of new ideas proposed by all heads of departments. Involving people in suggestions, decision making could have made an otherwise difference to the hotel than it did with their own intervention (Mauri, 2012).
What caused the problems?
The problems caused within the framework are the lack of proper belief in the authenticity of the processes which make things much simpler, and free the owners from their daily responsibilities. They did not have a proper HR system, and a team bonding program which was lacking and which bred more distrust within the team than trust, leading to simultaneous resignations. No single process was allowed to survive for substantial time until it was fully exploited and a conclusion was reached.
Other problems lie in the distrust of the Powers in delegating their responsibilities to more reliable and expert employees. They could have hired more knowledgeable and skilled employees than themselves to run the hotel instead (Hayes, Ninemeier & Miller, 2012).
The destination’s beauty and advantages were not fully exploited by the Powers, who always tend to go with the market flow. They could have explored the hidden treasures of the location by offering unique stay experiences, different from its rivals. In addition, the hotel did not develop one single core competency that could have made its regular clientele keep coming back, despite the slowdown. Building one or two superior market qualities makes the hotel survive turbulent times.
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