New Wood Inc
Solution for New Wood Inc CMA Case.
To assume role of Chris Mell, CMA, and prepare a report for the President and CEO Andrew Mayd. This report will advise him on how to address issues facing organization and items discussed at the management meeting.
Executive Summary
GR Hotels Mission is to provide clean, comfortable rooms, good quality services to business and pleasure travelers in Toronto and Montreal at competitive prices. The Vision is to be the hotels of choice for travelers in Canadian cities. The Goals are to increase occupancy rates, focus on business travellers and provide at least a 15% after tax return on any proposed investment. Operating profit for the banks must be at least 11% of revenue per year. We need to improve occupancy rates and attract more business travelers to GR Hotels given the funding and profitability constraints.
There are 3 alternatives for GR Hotels. First, we can convert GR Hotels to an upscale hotel. Second, we could purchase land in Montreal to build a conference Centre or sell for a quick profit. Thirdly, we can increase the number of leisure travellers.
It is recommended that we convert GR Hotels to an upscale Hotel. This will achieve the goals of the company by increasing occupancy rates and business travellers. The constraints placed on the company will be achieved. Return on Investment is greater than 15% and operating profit % of revenue will be greater than 11%. GR has a good reputation and skilled management team which will make this a smooth transition. The current locations are great to make this move as they reside by the airport and will target the business travellers. GR already utilizes Central and On-line bookings which again will target business travellers as they tend to use this service the most. Business travellers are moving towards staying at up-scale hotels and this move will definitely increase occupancy rates of these travellers. Changing the name of the hotel will
To assume role of Chris Mell, CMA, and prepare a report for the President and CEO Andrew Mayd. This report will advise him on how to address issues facing organization and items discussed at the management meeting.
Executive Summary
GR Hotels Mission is to provide clean, comfortable rooms, good quality services to business and pleasure travelers in Toronto and Montreal at competitive prices. The Vision is to be the hotels of choice for travelers in Canadian cities. The Goals are to increase occupancy rates, focus on business travellers and provide at least a 15% after tax return on any proposed investment. Operating profit for the banks must be at least 11% of revenue per year. We need to improve occupancy rates and attract more business travelers to GR Hotels given the funding and profitability constraints.
There are 3 alternatives for GR Hotels. First, we can convert GR Hotels to an upscale hotel. Second, we could purchase land in Montreal to build a conference Centre or sell for a quick profit. Thirdly, we can increase the number of leisure travellers.
It is recommended that we convert GR Hotels to an upscale Hotel. This will achieve the goals of the company by increasing occupancy rates and business travellers. The constraints placed on the company will be achieved. Return on Investment is greater than 15% and operating profit % of revenue will be greater than 11%. GR has a good reputation and skilled management team which will make this a smooth transition. The current locations are great to make this move as they reside by the airport and will target the business travellers. GR already utilizes Central and On-line bookings which again will target business travellers as they tend to use this service the most. Business travellers are moving towards staying at up-scale hotels and this move will definitely increase occupancy rates of these travellers. Changing the name of the hotel will