Managing Products and Services Essay Example | Topics and Well Written Essays - 3000 words

Managing Products and Services - Essay Example 100 million. Growing competition in the local hospitality sector, changing customer preferences and the rising importance of green practices were the primary reasons behind this decision to undertake an extensive of the entire hotel. The hotel remained closed for nearly 3 years and opened in 2007 after investing over ?220 million (an excess of ?120 million over the initial budget) in the renovation and replacement of its entire infrastructure (Schwab, 2010). All along, the emphasis on the part of Savoy’s management was to preserve the hotel’s identity, elegance and its old-fashioned glory. Notable features such as the statue of Peter II or the American bar were retained although having undergone extensive makeovers and improvements. In simple words, Spenceley (2008) terms the restoration project implemented by Savoy can be termed as an elaborate improvement. A lot has been written about the green makeover that the hotel underwent during this phase. While the identity of Savoy as a luxury hotel or a place of extravagance does not require any introduction, the question does arise over just how green the hotel has become. The resulting strategies that the hotel’s management has adopted to market and promote its efforts towards environmental safety and customer satisfaction present an interesting situation with the reopening of the hotel. This paper describes an analysis that begins with an analysis of the key internal and external factors that influences the strategic decisions of the Savoy Hotel. The effectiveness with which the hotel has positioned itself in the market post-renovation and the steps taken to maintain and improve customer satisfaction are discussed thereafter. Key macro and micro factors influencing Savoy Hotel The effects of global warming and climate change are being felt the world over. Travelers and customers are increasingly aware of this growing problem and are becoming more active towards reducing their carbon footprint . Renewed needs from customers for green solutions and practices and rising costs associated with conventional methods of operation have prompted some much needed change on the part of the hospitality sector in the UK. The restoration of the Savoy hotel that commenced in 2007 was mainly driven by these considerations and the need to adopt a greener image (Peeters, 2010). Another factor that prompted the Savoy hotel to undergo the expensive renovation was the constantly rising costs as the hotel had previously not considered long-term savings through cheaper, greener solutions (Roth, 2011). The latest renovation and reopening of the hotel in 2010 has also led to the question of how much farther the hotel must go in order to become sustainable. Competition from rival hotels in implementing similar solutions to aid in environmental protection is another trend that facilitated a change in strategy on the part of Savoy hotel. Since 2006, the UK hospitality industry has witnessed a rapid surge in energy costs due to rising fuel prices (Horner, 2008). Prices for conventional fuels like gasoline and natural gas have been on higher over previous years. The ongoing tension in the Middle East and the resulting volatility in the markets have also contributed to this increase in fuel costs. Hotel chains like the Hilton International and the Grosvenor House Hotel have