Reflection Paper
Summary of the Overall Experience
Throughout the strategic hotel investment capstone course, I have used the HOTS simulation program to delve into the operations of the Grand Formosa Hotel. The experience has been very enlightening because it has enabled me to experience the operations in a major hotel. Through the HOTS simulation, I have learnt of the operations in different departments in a hotel. In my opinion, the use of the program was more than what theoretical perspectives could have offered in terms of knowledge and practice. During the course period, I had the opportunity to undertake an externship at the Grand Formosa Regent Taipei. The externship supplemented the learning experience using the HOTS simulation program. This is because during the externship, I was able to learn about the daily routines and practices of a hotel through supervised visits to different departments. In a nutshell, the experience of the strategic hotel investment capstone course has given me a host of knowledge on the strategic management of a hotel investment.
The HOTS Simulation Program helps one model the operations of a hotel using figures and indicators, similar to those used in the hotel business. Using the HOTS Simulation Program, the profits of the Grand Formosa Hotel indicate the effectiveness of the management style employed in the running of the hotel. For instance, the profit margin ratios of the hotel showed an increasing performance over the two years.
Figure 4.0 showing the graph for profit margin ratio for the current year
These two graphs are adopted from a previous analysis of my hotel using the HOTS simulation program. In the analysis of the current year, the profit margin year increased exponentially before experiencing a dip from the month of August. This was a marked improvement from the results posted in the previous year where the hotel only broke even in the month of August as shown in the graph below.
Figure 5.0 showing the graph for profit margin ratio for the previous year
Gross profit ratio is also an indicator of performance. The gross profit ratio also shows marked improvement in the performance of the hotel as analyzed through the HOTS simulation program.
Figure 2.0 showing the graph for gross profit ratio for the current year
Figure 3.0 showing the graph for profit margin ratio for the previous year
The HOTS simulation program also provides information on the staffing needs and decisions of the hotel. Using this program in this way, one is able to balance the staffing needs of different departments depending on the intensity of work. This gives one the understanding the staffing needs of a hotel investments. The HOTS simulation program also helps one understands the act of balancing the staff in various departments. Marketing is very important in the running of a hotel investment. The HOTS simulation program has been very important in illuminating the ideals of marketing and the effect of advertising on business operations. More precisely, the HOTS simulation program allows one to see the effects of marketing strategies like advertising on the efficiency and performance of the hotel as shown by indicators like profit margins.
With regards to food and beverages, the HOTS simulation program enables one to understand the dynamics of decision making in this department. The procurement of different food supplies is at the core of the business operations. The HOTS simulation program enables one to understand the factors that need to be taken into consideration when making decisions in the foods and beverages department. These factors, as exemplified by the HOTS simulation program include suppliers, meal types and the cost of meals in relation to the cost of supplies.
The HOTS simulation program also offers practice in environmental management systems. This is in regards to the disposal of wastes and other installations that relate to conservation of resources like energy and water. The program enables one to visualize the decision making process with actual figures and levels of installations that are used in the hotel practice. Concerning upgrade of facilities, the HOTS simulation program enables one to understand the various facilities present in five star hotels. As I have learned from the program, the upgrade of facilities is not only dependent on needs in the hotel industry but also the capital expenditure that the hotel is willing to invest in facility upgrades.
Meaning
One of the indicators that have exemplified the performance of the hotel is profits. From the analysis of this indicator and the analysis in the reflection and earlier papers, I have learnt that changes in the operational efficiency can translate to the better performance of any business. This is evident from the transformation of the financial slump that the hotel was experiencing in the previous year to the sustained growth in profits among other indicators in the current year.
Reaction
I liked the HOTS simulation program and how it progressed because it allowed me an opportunity to understand the operations of hotel investments. Consequently, I feel better prepared to take up a job in the hospitality industry.
Future application
The material in the HOTS simulation program is very relevant to me as a student and a future hotelier. As a student, the material in the program helps in understanding the intricacies of strategic management of a hotel investment. This is because over and above the theoretical perspectives of strategic management, the HOTS simulation program offers a practical experience where one can see the various dynamics at play. Through the program, the student is able apply the knowledge from theoretical perspectives, thereby gaining a better understanding.
As a future hotelier, the material was relevant because it gave me an understanding of the decision making process in the operations of different departments. Furthermore, through the material in the HOTS simulation program, I am aware of the factors that should be considered during decision making and the various indicators that I can use to measure the effectiveness and impact of my decisions. Finally, the material in the program has helped me evaluate my own management style and gauge its effectiveness under various circumstances.
