Communication Audit Gfs Food Services

Sheraton Hotel Case

AJ House

100213768

May 29, 2012

Contents

Sheraton Hotel Case 1

Introduction 1

Critical issue 1

Key individuals 1

Quantitative analysis 1

Qualitative factors 2

Other factors to consider 3

Recommendations 3

Introduction

The following is an outlook into the Sheraton case, and a perceived course of action.

Critical issue

Georges, the directeur of the hotel must decide whether to accept a contract from the Alitalia airline. The contract would allow Alitalia control of 40 rooms over the next year. However, Georges fears that adopting to Alitalia's schedule would create additional costs. Also the room rate is significantly lower for Alitalia. He needs to determine whether to accept or reject the proposed contract. Georges only has 1 week to make this decision. in addition his superiors have required him to achieve a 12% return on investment.

Key individuals

* Georges Villedary, directeur

* Alitalia

* Hotel employees, Maids

* Airline Crew

* Marie Alfieri, Assistant

Quantitative analysis

(see exhibit 1, 2) for cost descriptions of the two options.

* $25,000 every day as an allowance for crews

* This meant the hotel had to keep extra maids on duty to have these rooms ready within two to four hours

* Airline crews spent less during their stay at a hotel than a regular guest.

1. Housekeeping - one half-hour per room. Housekeepers were paid $8.60 per hour.

2. Laundry and linen - $.75 per occupied room.

3. Utilities - $1.00 per occupied room.

4. Amenities - $2.25 per occupied room.

Profits of Alitalia contract will incur a greater burden on the hotels operation costs

The price per room discussed are raised to secure a profit. If Georges could come to an agreement of initial costs following an analysis, he may be able to make the decision with a higher level of confidence.

The cost of hiring additional staff to cover various check in times, also the cost of additional work needed to better regulate the wake up times for the crew.

Reduce the overall allowance budget per day to relieve costs

Offer

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