Organization Study on Fortune Select Trinity Itc Groups (1)

FORTUNE SELECT TRINITY, ITC GROUP HOTEL

CHAPTER 1

INTRODUCTION

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INTRODUCTION

Organization study is a part of MBA program which a student has to undergo training during

their course of study. It narrows the gap between theoretical knowledge and practical situations.

Training makes man into experienced one.

The intention of organization study is to have an exposure of real organization function and to

strengthen the theoretical knowledge. I did my training program at FORTUNE SELECT

TRINITY, ITC GROUP HOTEL. During the period of one month I was able to experience the

various function of different departments in the organization.

Objectives of the study

1. To get practical exposure in the corporate world.

2. To have a proper balance between the theory and practical knowledge

3. To study origin, mission vision, and status of the organisation.

4. To study the functional departments exist in the organisation

5. To evaluate the effectiveness of the organisation

6. To study the problem areas in the organisation

7. To provide some valuable suggestion to improve the efficiency in the organisation

Scope of study

1 This report s based on the study conducted at FORTUNE SELECT TRINITY, ITC

GROUP OF HOTELS, Bangalore.

2 It aims at understanding the company’s establishment, organisation structure

departments, production techniques, marketing strategies and the advantages it is having

over the competitors.

3 An attempt is made to analyse the company performance in comparison to the theoretical

aspects.

4 It aims to understand the skills of company in areas like technological advancements,

competition and in management.

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Limitation of the study

Time limit is a major constraint

As per the company rules any financial information was not disclosed

As per the managers are busy in their daily schedules it is not possible for us to spend

more time in interaction and discussion with them

Methodology adopted for the study

Observing the working of various departments like finance, human resource production

etc..

Discussion with the company executives, managers and employees.

Visiting and surfing websites of the company.

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COMPANY PROFILE

COMPANY PROFILE

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ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India

Limited. As the Company's ownership progressively Indianite, the name of the Company was

changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited

in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business

portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising

Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery

Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers,

Packaging, Agri-Business and Information Technology - the full stops in the Company's name

were removed effective September 18, 2001. The Company now stands rechristened 'ITC

Limited'.

The Company's beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the

centre of the Company's existence. The Company celebrated its 16th birthday on August 24,

1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru

Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more

ways than one. It was to mark the beginning of a long and eventful journey into India's future.

The Company's headquarter building, 'Virginia House', which came up on that plot of land two

years later, would go on to become one of Kolkata's most venerated landmarks.

Though the first six decades of the Company's existence were primarily devoted to the growth

and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the

beginnings of a corporate transformation that would usher in momentous changes in the life of

the Company.

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for

ITC's Cigarettes business. It is today India's most sophisticated packaging house.

In 1975, the Company launched its Hotels business with the acquisition of a hotel in Chennai

which was rechristened 'ITC-Welcomgroup Hotel Chola' (now renamed My Fortune, Chennai).

The objective of ITC's entry into the hotels business was rooted in the concept of creating value

for the nation. ITC chose the Hotels business for its potential to earn high levels of foreign

exchange, create tourism infrastructure and generate large scale direct and indirect employment.

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http://www.itcportal.com/about-itc/profile/history-and-evolution.aspx#ITC

http://www.itcportal.com/about-itc/profile/history-and-evolution.aspx#ITC


Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100

owned and managed properties spread across India under four brands namely, ITC Hotels -

Luxury Collection, WelcomHotels, Fortune Hotels and WelcomHeritage.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards

Limited. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002

and became a Division of the Company, Bhadrachalam Paperboards Division. In November

2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards

& Specialty Papers Division. ITC's paperboards' technology, productivity, quality and

manufacturing processes are comparable to the best in the world. It has also made an immense

contribution to the development of Sarapaka, an economically backward area in the state of

Andhra Pradesh. It is directly involved in education, environmental protection and community

development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial

Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to

improve customer service with reduced lead time and a wider product range.

Launched in 1975, ITC Hotels, India's premier chain of luxury hotels, has become synonymous

with Indian hospitality. ITC Hotels pioneered the concept of 'Responsible Luxury' in the

hospitality industry, drawing on the strengths of the ITC groups exemplary sustainability

practices. Responsible Luxury personifies an ethos that integrates world-class green practices

with contemporary design elements to deliver the best of luxury in the greenest possible manner.

Fortune Hotels are the brainchildren of ITC ltd which is a large commercial conglomerate.

Fortune Hotels have done a splendid job of establishing its brand as a premium hotel brand.

Their chain of 3-4 star hotels across 18 locations in India are mostly business hotels situated in

metropolitan areas.

Branded Accommodation

ITC Hotels has set standards for excellence in the hotel industry by pioneering the concept of

branded accommodation. The chain has developed three brands of accommodation ITC One',

'Towers' and the 'Executive Club' to differentiate between the needs of various travellers and

provide the highest levels of service.

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Branded Cuisine

ITC Hotels is one of the first to introduce branded cuisine WelcomCuisine - in India. The

Bukhara and Peshawri restaurants give epicures the rugged, outdoor cuisine of the Northwest

Frontier Province. Dakshin has brought together the highly evolved cuisines of the four southern

states- Andhra Pradesh, Karnataka, Tamil Nadu and Kerala. Dum Pukht is a unique restaurant

dedicated to a 200-year old culinary tradition of slow cooking food, in sealed deghs. The

fragrance of the meal becomes an invitation befitting royalty. Today the connoisseur can savour

these delicacies across the country. The sumptuous fare at Kebabs and Kurries comprises a

mouth-watering array of kebabs and a wide range of dishes from all over India. These dishes can

be categorized as Qualms, Qaliyas or Salans.

Rated high by food connoisseurs all over the world, ITC Hotels takes exceptional pride in

showcasing its internationally renowned cuisine. West View brings a careful selection of western

cuisine s from the remote France chateaux, grill houses on the East and West coasts of America,

rosy kitchens of English manors, leisurely Mediterranean villas and bustling German

marketplaces.

ITC’s corporate strategies are:

Create multiple drivers of growth by developing a portfolio of world class businesses that

best matches organizational capability with opportunities in domestic and export markets.

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &

Packaging, Agri Business and Information Technology.

Benchmark the health of each business comprehensively across the criteria of Market

Standing, Profitability and Internal Vitality.

Ensure that each of its businesses is world class and internationally competitive.

Enhance the competitive power of the portfolio through synergies derived by blending

the diverse skills and a capability residing in ITC’s various businesses.

Create distributed leadership within the organization by nurturing talented and focused

top management teams for each of the businesses.

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Continuously strengthen and refine Corporate Governance processes and systems to

catalyze the entrepreneurial energies of management by striking the golden balance

between executive freedom and the need for effective control and accountability.

Company Facilities

No director, senior management and employee shall misuse Company facilities. In the use of

Company facilities, care shall be exercised to ensure that costs are reasonable and there is no

wastage.

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Board of Directors »

Audit

Committee » Compensation

Committee »

Nominations

Committee »

Investor Service

Committee »

Sustainability

Committee »

Corporate Management

Committee »

Divisional/ Strategic Business Unit

(SBU) Management Committees,

each headed by a divisional/ SBU

Chief Executive »

Business includes: FMCG, Hotels,

Paperboards, Specialty Papers &

Packaging, Agri Business and

Information Technology

Corporate Functions, each headed by a HOD

Corporate Functions include: Planning and Treasury,

Accounting, Taxation, Risk Management, Legal,

Secretarial, EHS, Human Resources, Corporate

Communications, Corporate Affairs, Internal Audit

and Research & Development


Board of Directors

Chairman

Y C Deveshwar

Chairman :- Y. C. Deveshwar (65) joined ITC in 1968 and is an alumnus of the Indian

Institute of Technology, Delhi and Harvard Business School. He was appointed as a Director

on the Board of the Company in 1984 and became the Chief Executive and Chairman of the

Board on January 1, 1996. Between 1991 and 1994, he led Air India as Chairman and

Managing Director.

Deveshwar is a past President of the Confederation of Indian Industry. He is also a Member of

the Board of Governors of the Indian School of Business and the former Chairman of the

Society and Board of Governors of the Indian Institute of Management Calcutta. He is a

Member of the National Integration Council, Board of Trade as well as the National

Manufacturing Competitiveness Council constituted by the Government of India. He also

serves on the National Executive Committees of some of India’s premier trade and industry

bodies, and is a Member of the UK-India CEOs Forum instituted by the Governments of India

and the United Kingdom.

Executive Directors

A Baijal S Banerjee A V Girija Kumar

S H Khan S B Mathur D K Mehrotra

P B Ramanujam S S H Rehman Anthony Ruys

Basudeb Sen Meera Shankar K Vaidyanath

B Vijayaraghavan

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Hotels Division

N Anand Executive Director and Divisional Chief Executive

Dipak Haksar Member

B Hariharan Member

A Pathak Member

M Bhatnagar Member

S C Sekhar Member

A R Noronha Member

G Anand Invitee

A Sharma Invitee

ITC Hotels

ITC Hotel Luxury Collection

ITC Maurya, New Delhi

ITC Mughal, Agra

ITC Maratha, Mumbai

ITC Grand Central, Mumbai

ITC Sonar, Kolkata

ITC Kakatiya, Hyderabad

ITC Windsor, Bengaluru

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http://en.wikipedia.org/wiki/Bengaluru

http://en.wikipedia.org/wiki/Hyderabad,_India

http://en.wikipedia.org/wiki/Kolkata

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Agra

http://en.wikipedia.org/wiki/New_Delhi


List of Fortune Hotels

Fortune Global Select Gurgaon

Fortune Select Palms Chennai

Fortune Select Trinity Bangalore

Fortune Select Exotica Navi Mumbai

Fortune Select Manohar Hyderabad

Fortune Select JP Cosmos Bengaluru

Fortune Park Bella Casa Jaipur

Fortune Landmark Ahmedabad

Fortune Landmark Indore

Fortune Park Centre Point Jamshedpur

Fortune Hotel The South Park Trivandrum

Fortune Park Calicut Calicut

Fortune Park Galaxy Vapi

Fortune Murali Park Vijaywada

Fortune Park Klassik Ludhiana

Fortune Pandiyan Hotel Madhurai

Fortune Park Panchwati Kolkata

Fortune Fences Tirupati Tirupati

Fortune Resort Bay Island Port Blair

Fortune Resort Sullivan Court Ooty

Fortune Chariot Resort Mahabalipuram

Fortune Resort Central Darjeeling

Fortune Inn Riviera Jammu

Fortune Inn Jukaso Pune

Fortune Inn Sree Kanya Vishakapatnam

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http://en.wikipedia.org/wiki/Vishakapatnam

http://en.wikipedia.org/wiki/Pune

http://en.wikipedia.org/wiki/Jammu

http://en.wikipedia.org/wiki/Darjeeling

http://en.wikipedia.org/wiki/Mahabalipuram

http://en.wikipedia.org/wiki/Ooty

http://en.wikipedia.org/wiki/Port_Blair

http://en.wikipedia.org/wiki/Tirupati

http://en.wikipedia.org/wiki/Kolkata

http://en.wikipedia.org/wiki/Madhurai

http://en.wikipedia.org/wiki/Ludhiana

http://en.wikipedia.org/wiki/Vijaywada

http://en.wikipedia.org/wiki/Vapi

http://en.wikipedia.org/wiki/Calicut

http://en.wikipedia.org/wiki/Trivandrum

http://en.wikipedia.org/wiki/Jamshedpur

http://en.wikipedia.org/wiki/Indore

http://en.wikipedia.org/wiki/Ahmedabad

http://en.wikipedia.org/wiki/Bengaluru

http://en.wikipedia.org/wiki/Navi_Mumbai

http://en.wikipedia.org/wiki/Gurgaon


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VISION & MISSION

Vision - Sustain ITC's position as one of India's most valuable corporations through world class

performance, creating growing value for the Indian economy and the Company’s stakeholders

Mission - To enhance the wealth generating capability of the enterprise in a globalizing

environment, delivering superior and sustainable stakeholder value

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AWARD AND RECOGNITIONS

Bukhara awarded with " Restaurant of the Year" at NDTV Lifestyle Awards, March 2013

Dum Pukht awarded with 'Best in Country' recognition at the S.Pellegrino Asia's 50 Best

Restaurants, Singapore, February 25, 2013

Bukhara recognised amongst S. Pellegrino Asia's 50 Best Restaurants at No. 26, from

close to 900 restaurants in Asia, February 25, 2013

ITC Grand Chola receives green rating for integrated habitat assessment by The Energy

Resource Institute (TERI), Ministry of New & Renewable Energy (MNRE), Government

Of India – February 2013

ITC Grand Central awarded with The Golden Peacock - Corporate Excellence

Recognition for national training by Institute of Directors – January 2013

ITC Grand Chola recognized by HIFI as development of the year in the luxury and

upscale category – January 2013

Kaya Kalp recognized as Best Hotel Spa by CondeNast Traveler, India – December 2012

Bukhara and Dakshin listed amongst Asia’s Top 20 Restaurants – Miele Guide Asia,

January 2013

ITC Grand Chola receives green rating for integrated habitat assessment by The Energy

Resource Institute (TERI), Ministry of New & Renewable Energy (MNRE), Government

Of India – February 2013

ITC Grand Central awarded with The Golden Peacock - Corporate Excellence

Recognition for national training by Institute of Directors – January 2013

ITC Grand Chola recognized by HIFI as development of the year in the luxury and

upscale category – January 2013

Bukhara and Dakshin listed amongst Asia’s Top 20 Restaurants – Miele Guide Asia,

January 2013

Kaya Kalp recognized as Best Hotel Spa by CondeNast Traveler, India – December 2012

ITC Hotels - The Standout Winner for Sustainability , Global Vision Awards -October

2012

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ITC Sonar awarded with Responsible Tourism Award for being best in resource

efficiency by Wild Asia Tourism, Singapore - October 2012

COMPETITOR COMPARISION OF BALANCE SHEET

Balance Sheet ------------------- in Rs. Cr. -------------------

ITC

HotelIndian Hotels EIH TAJ HOTELS ITDC

Mar

2012

Mar

2012

Mar

2012

Mar

2012

Mar

2012

Sources Of Funds

Total Share Capital 1100.21 72.34 78.59 76.97 55.49

Equity Share Capital 200.20 72.34 78.59 76.97 55.49

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 940.22 2,975.29 985.39 118.81 87.11

Revaluation Reserves 0.00 0.00 241.25 0.00 0.75

Networth 2240.43 3,047.63 1,305.23 195.78 143.35

Secured Loans 0.08 1,598.02 800.87 24.69 21.51

Unsecured Loans 0.00 168.45 12.00 0.00 0.00

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Total Debt 0.08 1,766.47 812.87 24.69 21.51

Total Liabilities 2240.51 4,814.10 2,118.10 220.47 164.86

Source-ITC hotel website.

Mar

2012

Mar

2012

Mar

2012

Mar

2012

Mar

2012

Application Of Funds

Gross Block 2062.40 2,362.23 1,726.87 422.15 290.24

Less: Accum. Depreciation 711.17 776.83 390.63 63.97 88.70

Net Block 1351.23 1,585.40 1,336.24 358.18 201.54

Capital Work in Progress 422.14 215.10 425.16 51.22 91.82

Investments 684.20 2,026.88 358.81 0.64 0.72

Inventories 11.87 38.91 33.26 5.24 9.40

Sundry Debtors 121.05 101.70 114.37 484.17 11.98

Cash and Bank Balance 97.96 21.81 22.48 31.97 6.58

Total Current Assets 231.88 162.42 170.11 521.38 27.96

Loans and Advances 56.80 1,486.23 231.02 73.53 44.81

Fixed Deposits 7.00 1.63 3.94 0.00 0.14

Total CA, Loans & Advances 871.68 1,650.28 405.07 594.91 72.91

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Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 591.30 510.89 315.23 753.95 162.68

Provisions 112.45 153.40 93.68 30.53 39.45

Total CL & Provisions 700.75 664.29 408.91 784.48 202.13

Net Current Assets 16.93 985.99 -3.84 -189.57 -129.22

Miscellaneous Expenses 0.00 0.73 1.73 0.00 0.00

Total Assets 2240.50 4,814.10 2,118.10 220.47 164.86

Contingent Liabilities 240.04 1,034.20 381.05 0.00 17.73

Book Value (Rs) 740.27 42.13 27.08 25.44 25.70

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Industry Profile

INDUSTRY PROFILE

The hotel industry that exists today can be traced back to 3000 B.C. where the earliest inns were

homes with rooms provided for travelers. Conditions improved in 1700s England when the

renaissance sparked the desire to travel. The United States saw its hotel industry created a

century later. By this time they had revolutionized many firsts in the industry including private

rooms with locks and doors, free soap, a trained staff, and a pitcher of water in each room.

Indoor plumbing and the creation of the lobby followed shortly thereafter. The business of

providing strangers with hospitable means has come a long way. What once was a service to

fellow man is now the foundation numerous economies throughout the world.

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The modern era of the hotel industry saw its beginnings in 1794 New York where the first ever

hotel was built. Profit potential was recognized with the inception of the industrial revolution.

Stock companies invested in hotels seeking profit from property value appreciation and room

occupancy revenue. Surrounding communities were promised increase in sales by means of

higher volume of people passing through., the industry creates a multitude of opportunities that

now saturate the industry in the form of spin-offs of these top four hotel companies creating the

most common chains we know of today. History has proven that the success of this industry has

largely to do with two factors, location and innovative integration, the combination of these two

has created a margin between the larger chains and those who operate on a smaller scale. Soap

and locks on doors were the innovation for their day. Strategic placement and product

differentiation once again guide the success of this industry.

The word hotel is derived from the French hotel (coming from hate meaning host), which

referred to a French version of a townhouse or any other building seeing frequent visitors, rather

than a place offering accommodation. A hotel is an establishment that provides paid lodging on a

short-term basis.

The provision of basic accommodation, in times past, consisting only of a room with a bed, a

cupboard, a small table and a washstand has largely been replaced by rooms with modern

facilities, including en-suite bathrooms and air conditioning or climate control. Additional

common features found in hotel rooms are a telephone, an alarm clock, a television, and Internet

connectivity; snack foods and drinks may be supplied in a mini-bar, and facilities for making hot

drinks. Larger hotels may provide a number of additional guest facilities such as a restaurant, a

swimming pool or childcare, and have conference and social function services. Some hotels offer

meals as part of a room and board arrangement.

Hotel Industry in India has witnessed tremendous boom in recent years. Hotel Industry is

inextricably linked to the tourism industry and the Growth in the Indian tourism industry has

fuelled the growth of Indian Hotel industry. The thriving economy and increased business

Opportunities in India have acted as a boon for Indian hotel industry. The Arrival of low cost

airlines and the associated price wars have given domestic tourists a host of options.

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http://en.wikipedia.org/wiki/Mini-bar

http://en.wikipedia.org/wiki/Climate_control

http://en.wikipedia.org/wiki/Air_conditioning

http://en.wikipedia.org/wiki/Bathroom#Types_of_bathrooms

http://en.wikipedia.org/wiki/Facilities

http://en.wikipedia.org/wiki/Modern_history

http://en.wikipedia.org/wiki/Accommodation

http://en.wikipedia.org/wiki/Lodging

http://en.wikipedia.org/wiki/Townhouse

http://en.wikipedia.org/wiki/French_language


The 'Incredible India' destination campaign and the recently launched 'Atithi Devo Bhavah'

(ADB) campaign have also helped in the growth of domestic and international tourism and

consequently the hotel industry. According to a report, Hotel Industry in India currently has

supply of 110,000 rooms and there is a shortage of 150,000 rooms fuelling hotel room rates

across India. According to estimates demand is going to exceed supply by at least 100% over the

next 2 years. The future scenario of Indian hotel industry looks extremely rosy. It is expected that

the budget and mid-market hotel segment will witness huge growth and expansion while the

luxury segment will continue to perform extremely well over the next few years.

The Indian hospitality industry is projected to grow at a rate of 8.8% between 2007-16, placing

India as the second-fastest growing tourism market in the world. Initiatives like massive

investment in hotel infrastructure and open sky policies made by the government are all aimed at

propelling growth in the hospitality sector.

The hotel and restaurant industry of India was Rs. 658.89 billion during 2007-08. Travel

& Tourism Industry of India was valued at US$35.73 billion in 2007, contributing 3.56% to

India’s GDP. The number of foreign tourists arriving to India reached 5.08 million compared

with 4.45 million in the year 2006, showing growth of 14.16%. India’s share in international

tourist arrivals at global level gradually improved from 0.46% in 2004 to 0.49% in 2005 and

further to 0.52% in 2006 and 0.56% in 2007.

Hotels in India are broadly classified into 7 categories (five star deluxe, five-star, four star, three

star, two star, and one-star and heritage hotels) by the Ministry of Tourism, Government of India,

based on the general features and facilities offered. The ratings are reviewed every five years. As

of December 2012 (latest available figure) there are following number and category of hotels.

Star Category No of Hotels No of Rooms

5-Star Deluxe 82 18764

5-Star 92 11332

4-Star 132 9401

3-Star 704 31039

2-Star 587 19031

1-Star 212 695

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Heritage 83 2216

To be Classified 50 5127

Total 1934 103973

Source: Ministry of Tourism, Government of India

The table excludes hotels in the unorganized sector that have a significant presence across the

country and cater primarily to economy tourists. Premium and Luxury Segment This segment

comprises the high-end 5-star deluxe and 5-star hotels, which mainly cater to the business and up

market foreign leisure travelers and offer a high quality and range of services. The segment

accounted for 29per cent of the total hotel rooms in the country in December 2005.

GOVERNMENT POLICIES

Tourism being a concurrent subject under the Indian constitution, both the central and state

governments regulates the hotel industry. The regulations include statutory and regulatory

sanctions (or approvals and licenses) from the Central and State departments or agencies. This

includes license to operate a restaurant, a hotel license (issued by municipal authorities), license

from police (issued by local police) and a bar license (issued by excise department).

Tourism Policy

In order to develop tourism in India in a systematic manner, position it as a major engine of

economic growth and to harness its direct and multiplier effects for employment and poverty

eradication in an environmentally sustainable manner, the National Tourism Policy was

formulated in the year 2002. Broadly, the “Policy” attempts to:

• Position tourism as a major engine of economic growth

• Harness the direct and multiplier effects of tourism for employment generation, economic

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Development and providing impetus to rural tourism

• Focus on domestic tourism as a major driver of tourism growth

• Position India as a global brand to take advantage of the burgeoning global travel trade

And the vast untapped potential of India as a destination

• Acknowledges the critical role of private sector with government working as a pro-active

Facilitator and catalyst

• Create and develop integrated tourism circuits based on India’s unique civilization, heritage,

And culture in partnership with States, private sector and other agencies

• Ensure that the tourist to India gets physically invigorated, mentally rejuvenated, culturally

Enriched, spiritually elevated and “feel India from within”.

The Government’s major policy initiatives include

• Liberalization in aviation sector

• Pricing policy for aviation turbine fuel which influences internal air fares

• Rationalization in tax rates in the hospitality sector

• Tourist friendly visa regime

• Immigration services

• Procedural changes in making available land for construction of hotels

• Allowing setting up of Guest Houses

The Indian Ministry of Tourism has identified 31 villages across the country to be developed as

Tourist Hubs. The states in which these villages have been identified include Himachal Pradesh,

Gujarat, Maharashtra, Bihar, Karnataka, Madhya Pradesh, Andhra Pradesh, Kerala, Tamil Nadu,

Orissa, Assam, Sikkim, Rajasthan and West Bengal.

Group Company including managed hotels

The measure aims at supporting the Group service companies not earning foreign exchange in

getting access to the international quality products at competitive price and providing services of

international standards. This new initiative allows transfer of both the script and the imported

input to the Group Service Company. The earlier provision allowed transfer of imported material

only.

FDI in Hotel and Tourism Sector

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100 per cent FDI is permissible in the sector on the automatic route. The term hotels include

restaurants, beach resorts, and other tourist complexes providing accommodation and/or catering

and food facilities to tourists. Tourism related industry include travel agencies, tour operating

agencies and tourist transport operating agencies, units providing facilities for cultural,

Adventure and wild life experience to tourists, surface, air and water transport facilities to

tourists, leisure, entertainment, amusement, sports, and health units for tourists and

Convention/Seminar units and organizations.

For foreign technology agreements, automatic approval is granted if:

• Up to 3 per cent of the capital cost of the project is proposed to be paid for technical and

Consultancy services including fees for architects, design, supervision, etc.

• Up to 3 per cent of net turnover is payable for franchising and marketing/publicity Support

fee, and up to 10 per cent of gross operating profit is payable for management fee, including

incentive fee.

Other Government Initiatives

Government has undertaken following initiatives to attract both inbound and outbound Tourists:

• Incredible India - Under this program the Government promotes India through various

Integrated marketing programs.

• Atethie devo bhava (guests are equal to god) - Under this program the Government create

Awareness among Indian people who come in contact with the tourist.

• Various Infrastructure building initiatives

• Encourage religious tourism for instance promotes various places in India as Buddhist abodes.

• Other projects are the Rs. 5,400 million National Highways Development Project, the 5,846

km Golden Quadrilateral and the 7,300 km north-south and east-west corridors.

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CHAPTER 2

ORGANISATIONAL STRUCTURE

ORGANISATIONAL DESIGN

Organizing, the process of structuring human and physical resources in order to

accomplish organizational objectives, involves dividing tasks into jobs, specifying the

appropriate department for each job, deter-mining the optimum number of jobs in each

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department, and dele-gating authority within and among departments. One of the most critical

challenges facing lodging managers today is the development of a responsive organizational

structure that is committed to quality.

1. The framework of jobs and departments that make up any organization must be directed

toward achieving the organization’s objectives. In other words, the structure of a lodging

business must be consistent with its strategy.

2. Managers give structure to a hotel and lodging through job specialization, organization, and

establishment of patterns of authority and span of control.

ORGANISATIONAL STRUCTURE OF FORTUNE SELECT TRINITY

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General Manager


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Executive assistant manager

Human resourse

Accounting Marketing & sales Engineering Purchasing

Rooms division Reservations Convention services

Food & beverages

House keeping Front office

Security Uniformed service

Telephone

Restaurants Bars Catering Room service

Food production


CHAPTER 3

FUNCTIONAL DEPARTMENTS

Segmentation of different departments at FORTUNE SELECT TRINITY

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There are more than 10 different departments are functioning in the traditional and executive

levels at the management of the hotel. These departments have diverse portfolios and

responsibilities headed by a person in charge of the entire operations undertaken within the

department. He may be a manger/supervisor of the respective department. The reason why hotels

are usually organized into functional blocks, with departments grouped according to the

particular work/activity that particular

Department is actively engrossed. In most scenarios a hotel industry is divided up into 5 different

departments such as rooms, Food and Beverages (usually this department is called as by its short

form as F&B), accounting, sales and Human Resource/HR. Each of these departments has their

own heads of the operations and they should have to report directly to the General Manager of

the hotel regarding the performance of their respective departments. These departments are sub-

divided into various other smaller organizational units. These sub-divisions represent refinement

of the work performed and the knowledge and the skills of the people in each subunit. As

organizations grow large in respect of its size and operations it carries out most hotels tend to

segment its operations to various departments with food preparation and food servicing as

separate entities. Since preparing food and serving it to the guest are usually of two different arts;

both the processes are done through different and separate works. Thus forming departments

along functional line is the most common method in a hotel organization. The department

engaged in the preparation of food is called as Production Department while the division

involved in the art of serving the prepared food to the guests in an eye-catchy and sumptuous

manner is known as the Servicing Department.

Front Office Department

The front office is the command post for processing reservations, registering guests, settling

guest accounts (cashiering), and checking out guests. Front desk agents also handle the

distribution of guestroom keys and mail, messages or other information for guests. The most

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visible part of the front office area is of course the front desk. The front desk can be a counter or,

in some luxury hotels, an actual desk where a guest can sit down and register.

Sell guestrooms; register guests and design guestrooms

Coordinate guest services

Provide information

Maintain accurate room statistics, and room key inventories

Maintain guest account statements and complete proper financial settlements

FRONT OFFICE MANAGER

ASST FRONT OFFICE MANAGER

LOBBY MANAGER/DUTY MANAGER

NIGHT AUDITORS

FRONT OFFICE ASSISTANATS/CASHIER

RESERVATIONS ASSISTANTS

TELEPHONE SUPERVISORS

BELL CAPTION/ BOYS DOOR MAN/LINK MAN

Food Production Department

Food production deals with the preparations of food items. It basically engaged in preparing

those dish, which are ordered by the

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Guest and afterwards is catered by the F&B department. Cuisine like Indian, Continental, Thai,

Italian, Konkani (Coastal Sea Food), South Indian, Chinese, Mexican, etc. Different Chefs are

appointed for the specialty cuisine. Marketing a celebrity chef as a primary component of a hotel

may yield a competitive advantage among that specific hotel’s competitive set.

Food Servicing Department

Food service deals with the process of the delivery of the prepared food items onto the end

customers who ordered it. Service department should also lay special emphasis on the

importance of getting the orders delivered with an eye candy look and appearance.

Food & Beverages Department

F & B deals mainly with food and beverage service allied activities. Different divisions are there

in F & B like Restaurants, Specialty Restaurants, Coffee Shop (24 hrs.), Bar, Banquets, Room

service etc. Apart from that they have Utility services (Cleaning). A food and beverage

department in a hotel is usually guided by an F&B Director followed by an F& B manager. A

Food and Beverage Manager in a hotel should always be ready to undertake a variety tasks each

and every day. Some of the main important functions endowed on this specific department in a

hotel include,

Provide the highest quality in food, beverage and service in all the food and beverage outlets

inside the hotel’s

Provide all guests with the highest quality of food and beverage experience by working as a team

with all the food and beverage outlets ensuring prompt,

courteous, and professional services resulting in increasing employee morale and decreasing

employee turnover rates

Maintain existing programs and develop new programs ensuring the highest quality of food,

beverage and service offered. Arrange daily talks with staff and managers, reviewing plate-ups in

different outlets

Maintain a high quality hotel image through effective housekeeping and sanitation in the F&B

operations

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Meet all the needs and the expectations of the guest by ensuring proper service standards,

providing quality food and beverages, and managing all aspects of operation, resulting in an

increasing Guest Satisfaction Index (GSI) and decreasing guest complaints)

Maintain top-notch security to all the F&B properties and inventories

Maintain knowledge of national and international competition and industry trends. Includes

changing menus based on seasonality, product availability, and input from staff)

Seek profitability in all the F&B outlets by decreasing the operational costs and by increasing the

sales volumes of different menus and beverage items.

EXECUTIVE HOUSE KEEPER LAUNDRY MANAGER ASST.

EXECUTIVE

Housekeeper Cleaner Supervisor Gardener Supervisor

Line Supervisor Laundry Supervisor Washer Presser Line Attender

The Front Office may be regarded as the show window of the hotel and hence must be well

designed in the first place and maintained in a well organized and orderly manner. Regardless of

how a hotel is organized into, the front office is always an essential focal point. Front Office is

the name given to all the functional units of a hotel which are situated in the front portion of the

hotel, that is, the lobby – is the place where the guests are received, provided information on the

products and services offered in the hotel, the luggage of the guests are handled, the accounts of

the guest are settled at their departure, and the guest’s problems, complaints and suggestions are

looked after. The front desk is the link between the guest and the hotel and represents the hotel to

the guest. And is a liaison between the hotel management and the coordination of all the guest

services. It serves as a main channel of both way communications i.e. from hotel to the guest and

guest to the hotel. Hotel terminology includes terms such as front-of the-house and back-of-the-

house. This front-of-the house term includes those portions of the hotel with which the guests

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come in direct contact with during the period of their stay in the hotel, such as building exterior,

lobby, front desk, guest rooms, function rooms etc. The person who is regarded as the head of

the operation of the front-office desk is the Front-Office Manger. The nature of the front office

job is such that he is almost always crowded with various jobs. He should be able to match job

needs to time available for effective and efficient performance. Another responsibility of the

Front office manager is making daily plan of action by outlining work for the next day at the end

of each day. It includes listing all activities for the next day under ABC category as per the

urgency and importance of the job. It is also important to make flexible plans to fit

in emergencies. The assistant front-office manager’s main duty is aiding the front office manager

in supervising and coordinating the day-to-day operations of the front-office staff and resolves

internal problems. She/he co-ordinates staffing of mail and information and reservation clerks

with their supervisors. The AM-front office should also be adept in dealing with

problems arising from guest’s complaints and reservation and room assignment activities. He

should also be responsible for any miscellaneous duties assigned by the front office manager.

Another important position at the front desk of the hotel is done by the reception assistant. The

friendly welcome given by the receptionist to a guest changes an impersonal hotel building in to

a friendly and homely place and his unfriendly, hostile and indifferent attitude may convert the

guests experience in to an unpleasant and uncomfortable stay. If the front office is the hub of the

hotel then the receptionist can be aptly called as the person ‘who keeps the hotel world moving’.

The reception assistant should be well informed of daily room availability status, and also he

should have detailed information regarding arrivals, their room requirements and expected

departures of the guests. The position of the reservation assistant is also important at the front-

office department of the hotel since the hotel’s good image can be maintained among the

Guests only if all the needs of the guests are taken care of, especially the guest’s requirements in

terms of his lodging. The main function of the reservation assistant is to handle all the

reservations courteously and promptly over telephone, by e-mail, fax etc. He should make proper

updating in the reservation register and records in order to have updated inventory of room

availability. The reservation assistant may also carry out amendments and cancellations

intelligently and accurately. To keep the availability status chart updated. Checkout reservation

stationary and keep a satisfactory par stock of the same. Type out advance reservation slips and

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maintains reservation racks and correspondence files and in case of computers updates

information in computers.

The hierarchical structure of the division of F&B department in a hotel

EXECUTIVE HOUSE KEEPER

LINEN/UNION FLOOR DESK CONTROL PUBLIC AREA HORTICULTURIS

SUPERVISOR SUPERVISOR SUPERVISOR SUPERVISOR

TRAILOR NIGHT SUPERVISOR HEAD GARDENER

HOUSE KEEPING DEPARTMENT

Inspects rooms before they are available for sale

Cleans occupied and vacant rooms

Communicates the status of guestrooms to the Front Office Department

Cleans and presses the property’s linens, towels, and guest clothing (if equipped to do so, free

of charge or for a pre-determined fee)

Maintains recycled and non-recycled inventory items

The House Keeping Department is another important department in the hospitality

industry

Housekeeping Department is responsible for cleaning the hotel’s guest rooms and public areas.

Housekeeping department usually has the largest staff, consisting of an assistant housekeeper,

room attendants, room inspectors, a house person crew, linen room attendants and personnel in

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charge of employee uniforms. They may also have their own laundry and valet service. Hotels

with laundry and valet equipment may use it only for the hotel uniforms.

RESTAURANT MANAGER BEVERAGE MANAGER ASSISTANT F & B-

MANAGER

F & B MANAGER

And linens and send guest clothing to an outside service where it can be handled with specialized

equipment. Basically the main responsibility of the housekeeping department is to ensure that the

guest rooms and the entire public area within the hotel are neat and clean all the time. But the

cleaning duty of the kitchen area is done by Kitchen steward. Cleaning of the lawn area of the

hotel is also set apart from the housekeeping department while the same is carried out by the

gardening division of the hotel. The person who is made in charge of the entire operations being

performed in this specific department is Housekeeping Executive. The Executive Housekeeper is

responsible for the total cleanliness and the, maintenance and the aesthetic upkeep of the hotel.

This end is achieved with the resources made available to his/her of manpower, materials,

machines, money, space and time. The position of the Executive Housekeeper is considered to be

one of the most important positions in the hotels since it carries tremendous responsibility for the

proper cleanliness and the aesthetic fabric of facilities in order that they are sanitary, desirable

and in saleable condition.

F & B MANAGER

Asst. F & B MANAGER

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Restaurant manager Room manager Banquet manager Bar manager

Caption Order caption Sr. caption

Steward Caption Caption

The good Housekeeper, because of the need taco-operate with many other department heads,

must possess a high degree of tactics well as good organizing ability. The Assistant Housekeeper

is the deputy to the Executive Housekeeper of a hotel. His/her manages the resources given by

the executive housekeeper to achieve the common objectives of cleanliness, maintenance and

attractiveness in a given period of time. Assistant Housekeeper’s accountability normally ends

with the completion of the shift. The position of a Housekeeping supervisor is normally occupied

by a competent, personable individual who knows his/her employees well, and is, above all, able

to meet the public. This requirement is so important as far as a hotel is concerned since the

supervisors are actually representatives of the Executive House keeper in the areas assigned to

them. Housekeeping draws special mention since a hotel survives on the sale of rooms, food and

beverage and other minor operating services such as laundry, spa, clubs etc. Of these, the sale of

rooms constitutes a minimum of 50 %. In other words the largest margin of profit comes from

room sales because rooms, once made, can be sold over and over again. A good hotel operation

ensures optimum room sales to being in maximum profit. The room sale is dependent on, apart

from several other things, the quality of the room décor, room facilities, and cleanliness of the

room and how safe it is.

Human Resource Department:

Human resources is exactly meant as ‘resources for human – within the workplace’. Its main

objective is to meet the organizational needs of the company it represents and the needs of the

people hired by that company for running its operations. Every organization needs its stack of

manpower to carry out its day-to-day operations. No establishment cannot operate without being

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involved in some kind of transactions with the people in general. Hence HR department is drawn

with special emphasis as this department is responsible for all activities concerning to the

employees of an organisation.In short HR department is the hub of the organization serving as

liaison between the organization and its employees. On the basis of the size of the company their

department is usually called as the Personnel department in medium–sized establishments, with a

limited number of managerial staff and is guided by a Personnel Manager. For larger and more

complex organizations with hundreds of departments and divisions, the task of managing the

workforce as a whole is much more demanding and intricate. Some of the most important

responsibilities to be carried out by the HR department include.

Employee recruitment & Selection

Employee compensation benefits

Employee relations

Policy formulation

As accompany and the requirements of a position evolve, a company needs to take certain

measures to ensure that the highly skilled workforce is in place. It is actually the responsibility of

the HR department to oversee the skills development of the company’s workforce. After

formulating the requirements criteria to fill up a vacant post in the organization, the HR

department of the company will call for application for the specific post from the eligible

candidates by way of advertising on news papers, televisions, mobile phones etc. Employee

compensation packages also come under the prerogative of the HR department. This covers

salaries, bonuses, vacation pay, sick leave pay, Workers' Compensation, and insurance policies

such as medical, dental, life.

The Human Resources Department is

CLUB MANAGER

IT MANAGER SUPERVISOR

GUEST SERVICE ASSOCIATE

DUTY MANAGER SUPERVISOR DRIVERS

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Responsible for developing and administering a benefits compensation system that serves as an

incentive to ensure the recruitment and keep hold of top talent that will stay on with

the company. With the increased rise in unethical practices and misbehaviors taking place in

today’s workplace such as age, gender, race, and religion discrimination and sexual harassment,

there needs to be mandatory compliance with governing rules and regulations to ensure fair

treatment of employees. In short, employees need to know they have a place to turn when a

supervisor abuses his or her authority in anyway. Regardless of the organization's size, company

policies and procedures must be established to ensure order in the workplace. These policies and

procedures are put in place to provide each employee with an understanding of what is expected

of them. Similarly, these policies and procedural guidelines will assist hiring managers in

evaluating their employee's performance. These policies can be established company-wide or

used to define each department's function. It is Human Resource's responsibility to collaborate

with department managers on the formulation of these policies and regulations to ensure a

cohesive organization.

HR Head Assistant HR Manager HR Executive HR Co-coordinator

Training Department

Training is the process that involves an expert working with learners to transfer to them certain

areas of knowledge or skills to improve in their current jobs. Training Department is considered

to be a stand-by unit of their department. The primary function of this department is to empower

and equip new recruits to the hotel to such a level where they can deliver their maximum to the

company’s growth. All the activities undertaken in this department is guided and supervised by

the training Manager

He is responsible for conducting training programmers’ to the new recruits inducted into the

existing workforce of the company. The spectrum of the training manager’s responsibility also

includes making each new recruit aware of what his duty is? How he is to do his duty? Etc.

In short, it is the function of the training manager to make the new workforce of the company

learned of what is exactly expected of them, and on what degree. Training is usually given to the

employees on the following grounds as and when it demands.

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When a performance appraisal indicates performance improvement is needed

To "benchmark" the status of improvement so far in a performance improvement effort

As part of an overall professional development program

As part of succession planning to help an employee be eligible for a planned

change in role in the organization

To "pilot", or test, the operation of a new performance management system

To train about a specific topic several benefits can be reaped out of rendering proper training programmes.

Increased job satisfaction and morale among employees

Increased employee motivation

Increased efficiencies in processes, resulting in financial gain

Increased capacity to adopt new technologies and methods

Enhanced company image, e.g., conducting ethics training

Employee training programs provide focused training to a number of employees either on a one-

time or recurring basis. Programs can be developed in-house or employees can attend more

generic programs, e.g., at a local university, college or training center. Programs are conducted

for a variety of topics, e.g., training about communications, computer skills, customer service,

quality initiatives, safety, diversity training, etc.

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FINANCE DEPARTMENT

A hotel’s accounting department is keeping track of the many business transactions that occur in

the hotel. The accounting department does more than simply keep the books. Financial

management is perhaps a more appropriate description of what the accounting department does.

Whereas the control department is concerned with cost control guidelines by way of reducing in

investment, reduction in operating cost, control of food service cost, control of beverage cost,

labor cost control etc. In most hotels the person in charge of the finance department of the hotel

is called the Chief Financial Officer. Usually he is addresses by the short-form of his designation

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as CFO. In most major hotels, the CFO or Finance Controller/Manager ranks among the top two

or three decision makers in the hotel hierarchy. No organization can survive without a very

strong financial vigor. The finance controller is responsible for presenting a Financial and

budgetary programs which can strengthen management’s control of hotel’s operating expenses

and help determine the profitability of the property. Specifically forecasting gives owners a

projected level of sales, while budget alert owners and operators alike to significant expenditures

that are on the horizon or predictable shortfalls in revenues. Used together, forecast and budgets

can provide a bench-Mark for sales intensive programs, executive-compensation bonuses,

incentive based management fees and capital expenditure. The administration and department of

accounting and finance coordinate management and staff functions. This includes extensive

contact with our shareholders, other partners. The department of accounting and finance is

responsible for accounting, payroll, budgets and cash flow management. The department of

Information Technology (IT) is also managed by the Finance department in most hotels.

The following shown chart is the common hierarchy of the positions in the Finance Department

in 5 star hotels. But it cannot be guaranteed that the same structure is followed by all the 5 star

hotels. It may depend upon the size and the scale of operations of the respective hotels.

The Accounting Division monitors the financial activities of the property. Some of the activities

that are undertaken in the Accounting Division are listed below:

a) Pays outstanding invoices

b) Distributes unpaid statements

c) Collects amounts owed

d) Processes payroll

e) Accumulates operating data

f) Compiles financial reports

g) Makes bank deposits

h) Secures cash loans

i) Performs other control and processing functions

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SALES AND MARKETING

Marketing is the study and management of the exchange process. It involves the things that the

property will do to select a target market and stimulate or alter that market demand for the

property services. It consists with research, action, strategies advertising, publicity, & sales and

promotion. Sales consist of direct efforts to sell the property by personal sales, calls,

telecommunication & mailings.

A typical hotel should usually have Sales & Marketing division. However, if the staff size,

volume business, hotel size, expected group arrivals is low enough, the hotel might have

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marketing staff placed under the reservation department (i.e. No need for a Sales & Marketing

Division).

A typical Sales & Marketing Division is composed of four different departments:

a) Sales

b) Convention Services

c) Advertising

d) Public Relations

PURCHASING MANAGER GENERAL LEDGER ASST. FINANCIAL

CONTROLLER FINANCE

&

PAYABLE INCOME AUDITOR COST CONTROL CREDIT SUPERVISOR

A/R CLERK F&B CONTROLLER NIGHT AUDITOR CASHIER

SUPERVISOR

Marketing and sales division can be varied with the size, type, and budget of the hotel to hotel.

Small hotel only have one person who is handling all the sales activities related to the hotel

business. But large hotel have organized sales and marketing division with no of key personnel.

A sales department is particularly very essential in large hotels and those with convention and

banquet facilities. The General manger participates actively in this area for and basic reason.

First sales and their development is a long-range activity of the hotel and the second sales policy

of the hotel interwoven with the image of the hotel has in the eyes of public and GM wishes to

enhance that images. This department may have Sales. Manager who assists the GM on sales

calls. The GM and Sales Manager prepare a budget for the year sale of rooms and the conference

hall. They try and achieve the budget by the end of the year. This is done with a lot of planning

and research. This would be achieved by a contract with one or more travel agents in and outside

the town. And for selling the conference hall the sales team should contact various companies

and other business firms. The main function of this department is to increase the sales volumes

of the different services offered in the hotel, be in terms of rooms, food, beverages, clubs,

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restaurants, spa etc. Usually the tools adopted by the department to make the guests accustomed

to different services and offerings in the hotels

(1) Correspondence

(2) Personal contact

(3) mailings (4) Fax etc.

The other core areas of its consideration are as follows

Conduct a market Audit.

Analysis of market competition.

Market place analysis.

Formulation of new schemes and niche offerings.

Selection of profitable market segments.

Positioning the property.

Establishing the objectives and the action plan.

Monitoring and evaluating the market plan.

Restructure the market plan, if needed.

HIERARCHY OF SALES & MARKETING

Head of sales Associate Head of Sales Sales Executives Sales coordinators

Purchase Department

While operating a hotel is supposed to be a difficult task, managing the entire procurement

process (for such a unit) is even more so. The purchase department handles the task of

procurement yet all departments play a crucial role in it. That said technology ensures that inter-

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departmental activities takes place flawlessly. Although purchase has now become dependent on

technology for managing inventories and order status, it was originally a manual job. From

selection of products to deciding on a vendor, this department rests on the human ability of In

most modern hotels, the installation and service of elevator systems is generally the province of

the elevator manufacturer, and hotels typically have extended maintenance agreements for the

elevators. Most engineering departments, however, closely monitor the operation of the elevator

systems. In modern high-rise hotels with high speed elevator service, the slightest problem with

that service should be quickly and easily identified and reported to the contractors. It is generally

the responsibility of the engineering department to monitor these services and their contracts

closely and carefully.

Security Department

The security of guests, employees, personal property and the hotel itself is an overriding concern

for today’s hoteliers. In the past, most security precautions concentrated on the prevention of

theft from guests and the hotel. However, today such violent crimes as murder and rape have

become a problem for some hotels. Unfortunately, crime rates in most major’s cities are rising.

Hence today security department also concentrate on these additional criminal activities too. The

main position in the security department is of the Assistant Security Manager. The department

includes the fire and safety officer and the duty guards. The primary function of the security

department is to provide property surveillance and protection to the guest. The latter is more

important for the security department. In the hotel there are two variants of security staff working

round the clock indifferent shifts. First is the direct security staff of the hotel working in three

different shift of 8 hour duration? Considering flawless security to the guests, all the guest rooms

of the hotel are installed with spring glass and smoke detectors and automatic alarm

system. There is a central security office working inside the hotel with all the modern fire

Fighting equipments such as fire extinguishers, dry powder, and other fire dousing facilities. As

a part of the security provision both to the hotel’s property and the guests the entire geographical

area of the hotel is divided in to 3 portions such as Beach Viewpoint, Tide point and the Club –

these three points are all together known as the ‘assembly point’ . The most common methods

adopted by the fire and safety wing of the hotel (it came under the security department) are liquid

carbon dioxide, dry powder etc. The security control post of the hotel will be functioning on 24 x

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7with office secretary, night and day supervisor, and security officer. The security setup at the

hotel is faultless since the hotel cannot compromise on the safety of its valuable guests. All the

activities of the security department is controlled and supervised by the main security officer. He

is also responsible for conducting training programmes on security and fire fighting to the

security staff of the hotel.

CHIEF SECURITY OFFICER

ASSISTANT SENIOR SECURITY

SECURITY SUPERVISOR

DOORMAN GUARDS SECURITY

Reservation

Receive and process reservation requests for future overnight accommodations.

With technology development, the Reservation Department can, on real time, access the

number and types of rooms available, various room rates, and furnishings, along with the various

facilities existing in the hotel

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There should be close relation-ships with Sales and Marketing Division concerning Large

Group Reservations

Uniformed Services

Bell Attendants: Ensure baggage service between the lobby area and guestrooms

Door Attendants: Ensure baggage service and traffic control at hotel entrance

Valet Parking Attendants: Ensure parking services for guest’s automobiles

Transportation Personnel: Ensure transportation services for guests from and to the hotel

Concierge: Assists guests by making restaurant reservations, arranging for transportation,

and getting tickets for theater, sporting, or any other special events

Telephone Department

Answers and distributes calls to the appropriate extensions, whether guest, employee, or

management extensions

Places wake-up calls

Monitors automated systems

Coordinates emergency communications

Engineering and Maintenance Division

This very department maintains the property's structure and grounds as well as electrical and

mechanical equipment. Some hotels might have this very division under different names, such as

maintenance division, property operation and maintenance department…

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CHAPTER 4

MCKINSEY’S 7S MODEL AND SWOT ANALYSIS

MCKINSEY’S 7s MODEL

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Peters and Waterman, and was taken up as a basic tool by the Global Management Consultancy

McKinsey’s: its sometimes known as the McKinsey’s 7s model.

Managers need to take the account of all seven of the factors to be sure of successful

implementation of a strategy-large or small. They are all interdependent, so if fails to pay proper

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attention to one of them, it can bring the other crashing down. To better represent the challenges

of Service Marketing McKinsey developed a new framework for analyzing and improving

organizational effectiveness, the 7s model:

Soft’s:

The 4Ss across the bottom of the model are less tangible, more cultural in nature, and were

termed ‘Soft Ss’ by Mckinsey;

• Skill: The capabilities and competencies that exist within the company.

• Shared Valued: The values and beliefs of the company, ultimately they guide employees

towards ‘Valued’ behaviour.

• Staff: The Company’s people resources and how they are developed, trained and

motivated.

• Style: The leadership approach of too management and the company’s overall operating

approach.

The 3Ss across the top of the model are described as ‘Hard Ss’:-

• Strategy: The direction and scope of the company over the long term.

• Structure: The basic structure of the organization, its department, reporting lines, areas of

expertise and responsibility (and how they inter-relate) system. The formal and informal

procedure that govern everyday activity, covering everything from the Management Information

system, through to the systems at the point of contact with the customer (retail systems, call

centre systems, online systems etc.).

• System: Systems refers to the procedure through which a particular operation/function is

carried our effectively in either one of the department or in the entire organization as a whole.

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1. STRUCTURE:

Organization structure gives concrete shape to the organization. The structure specifies

division of work activities and shows how different functions or activities are linked. It also

indicates the organization’s hierarchy and authority structure, and shows its reporting

relationship. It provides the stability and continuity that allow the organization to survive the

comings and goings of individuals and to coordinate its dealings with the environment.

Pascal and Athos in their book. “The Art of Japanese Management” says. “Organization

structure emphasizes that the quality of management depends on the goodness of which amongst

all those key managerial dimensions”.

An organization structure can be viewed as accomplishing four distinct functions:

• Dividing work in to manageable segments.

• Recombining work in a logical and efficient manner.

• Distributing power to direct or coordinating work.

• Establishing channels of communication and the directive or non-directive nature of

information flow.

2. SKILL

Skills refer to the fact that employers have the skills needed to carry out the company strategy.

Training and Development ensuring the people to know how to do their jobs and says to update

latest techniques. People in an organization need various skills such as managerial, , science, etc.

In the organizational content people also need business skills, such as marketing, finance and

planning etc.

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• Conceptual Skills

• Human Resource Skills

Waterman considers “skills as one of the most crucial attributes of an organization”. The term

“skills” include those characteristics which most people use to describe a company.

• Fortune select trinity, has also shown its capacity in handling cxpenditure of high

magnitude.

3. STYLE:

The organization adopts both top-down as well as bottom-up approach in various situations:

As in the case of making major decisions lie policies, procedures discipline etc. are taken by the

top management.

• What policies and procedures should be adopted by the company.

• The strategy, which is to be adopted by the company to achieve the goals and objects.

Here the middle level management will prepare the memorandum, in consultation with

production department and all related departments and is approved by the top management so,

here the bottom-up approach is adopted.

The organization follows the participative style of leadership. This can be said so, because each

and every employee of the organization are allowed to give their view points with any area of

operations.

The employees who give good ideas which prove to be acceptable and service to toe company as

well as the employees will be awarded. This also makes employees to feel good working.

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4. STRATEGY:

Strategy is referred as “ a pattern, in a stream of decision and actions”. This pattern of decision or

action is aimed at achieving the goals and objectives of the company.

• Fortune select trinity is committed to become a world class organization that can translate

these commitments in to reality.

• It has taken several steps to promote fly ash utilization.

• Its aims at providing a bright, powerful and promising future.

Budgetary Control:

Planning is the basis of managerial function. It helps in determining the course of action to be

followed for achieving organizational goals. Control is the process of checking whether the

plans are being adhered to or not, keeping a record of progress, comparing it with the plans and

then taking corrective actions for future if there is any deviation. Every business enterprise

needs the use of control techniques for serving in the highly competitive and changing economic

world. There are various control devices in use. Budgets are the most important tool for profit

planning and control.

Budgetary control is the process of determining various budgeted figures for the enterprise for

the future period and then comparing the budgeted figures with the actual performance for

calculating various, if any. First of all budgets are prepared and then actual results are recorded.

The comparison of budgets and actual figure will enable the management to find at discrepancies

and take remedial measures at a proper time. The budgetary control is a continuous process,

which helps in planning and co-ordination. It provides a method of control is the end results.

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5. SYSTEM:

The procedures, processes and routines that characterize how important work is to be done:

financial systems; hiring , promotions and performance appraisal systems; information systems,

The finance department. In the finance department, the employees will have the record of

various lists of vendors their details payment,

6. STAFF:

Staff of human resource of an organization in referred as an important asset. So the person to be

selected for this should be carefully selected and appointed airtight place at right time. Various

positions in the company require differing contribution and this has the implication that different

people are needed to fit their various roles. Certain positions require people with special skills

other requires special knowledge and also different of personalities.

• Staffing is the process of acquiring human resources for the organization and assuring

that they have the potential to contribution to the achievement of the organization’s goals.

• To ensure greater objective in appraising the performance of employees new performance

appraisal systems are introduced in the company.

• The staff includes the board, headed by the chairman, who is the director and company’s

senior officers.

SWOT ANALYSIS

STRENGTHS

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ITC is a very strong and established brand name all over the world. It has a base of loyal

customers at local level as well as at international level. It has one of the biggest

international booking structures. Whatever the situation and scenario may be, corporate

and government agencies always prefer for their functions, seminars, and lodging their

guest and customers. ITC Guest Rewards program is the world’s largest and most

preferred frequent guest program and is strength for customer retention.

Natural and cultural diversity: India has a rich cultural heritage. The "unity in

diversity" tag attracts most tourists. The coastlines, sunny beaches, backwaters of

Kerala, snow-capped Himalayas and the quiescent lakes are incredible.

Demand-supply gap: Indian hotel industry is facing a mismatch between the demand

and supply of rooms leading to higher room rates and occupancy levels. With the

privilege of hosting Commonwealth Games there is more demand of rooms in five

star hotels. This has led to the rapid expansion of the sector

Government support: The government has realized the importance of tourism and

has proposed a budget of Rs. 540 crore for the development of the industry. The

priority is being given to the development of the infrastructure and of new tourist

destinations and circuits. The Department of Tourism (DOT) has already started the

"Incredible India" campaign for the promotion of tourism in India.

Increase in the market share: India's share in international tourism and hospitality

market is expected to increase over the long-term. New budget and star hotels are

being established. foreign hospitality players are heading towards Indian markets.

WEAKNESSES

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Poor support infrastructure: Though the government is taking necessary steps,

many more things need to be done to improve the infrastructure. In 2013, the total

expenditure made in this regard was US $150 billion in China compared to US$ 21

billion in India.

Susceptible to political events: The internal security scenario and social unrest also

hamper the foreign tourist arrival rates. The lack of adequate recognition for the

tourism industry has been hampering its growth prospects. Whatever steps are being

taken by the government are implemented at a slower pace.

OPPORTUNITIES

ITC has the opportunity to retain its customers by providing good quality food, as food

quality is not up to mark.

In light of post 11 September, foreign delegations and missions are bound to come to the

federal capital, which opens an opportunity for ITC to attract new business.

Rising income: Owing to the rise in income levels, Indians have more spare money to

spend, which is expected to enhance leisure tourism.

Open sky benefits: With the open sky policy, the travel and tourism industry has seen an

increase in business. Increased airline activity has stimulated demand and has helped

improve the infrastructure.

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THREATS

Emergence of new competition in form of new hotels: Food Street poses a threat for

their restaurant business. Government policies and economic recession can adversely

affect their business.

Fluctuations in international tourist arrivals: The total dependency on foreign tourists

can be risky, as there are wide fluctuations in international tourism. Domestic tourism

needs to be given equal importance and measures should be taken to promote it.

Increasing competition: Several international majors like the Four Seasons, Shangri-La

and Aman Resorts are entering the Indian markets. Two other groups - the Carlson Group

and the Marriott chain - are also looking forward to join this race. This will increase the

competition for the existing Indian hotel majors.

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CHAPTER-5

SUMMARY

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FINDINGS AND SUGGESTION’S

After doing this comprehensive report, we came up with some suggestions for fortune select

trinity to cope with the existing as well as emerging competitions.

Hotel should consider local restaurants as their competitors too and try to attract people

visiting these restaurants as well.

As they are constructing new halls and restaurants, they must consider their pricing

strategy to attract new customers and provide them better quality food at competitive

rates.

According to a report by HVS and The World Travel and Tourism Council, the travel industry in

India is expected to reach 1,747 million travellers by 2021, which will require 1,88,500 additional

hotel rooms. Mid-market hotels will be the driving force because they usually have more rooms

per hotel than a five star or luxury hotel and can be built faster and more cost-effectively in

multiple micro-markets as well as in most tier I, II and III cities . So Fortune Trinity can focus on

building more budget hotels

They should issue News Letter to let its customers know what are their future plans.

Their existing policy emphasizes on existing customers. They should broaden their

customer base.

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LEARNING EXPERIENCE

Exposure to the Industry

This project helped me to get practical exposure that, how an organization works, how

they are marketing their products, what are the different schemes they are going to introduce for

both customers & dealers implementation of theoretical aspects into practically. About company

strategies, their working style, systems like inventory control system, recruitment, training of

employees, performance appraisal, etc. Which are learned theoretically in the classroom. I

observed all these practically about how these theoretical aspects can be practically implemented

in the company.

Exposure to the company

Firstly, I came to know how to approach the companies for getting the project work & to

communicate with the higher officials regarding the project & convincing them how it is useful

to the company & also how it is useful to me.

I learnt how the theoretical concepts in the classroom as apart of my degree were been

implemented in the corporate world as their compulsory policies & procedures to carry out daily

activities.

I learnt how the company sets their vision & mission & the objectives & the policies to

achieve the vision of the company in their journey to achieve the goals in their business

processes.

I could also learn the concepts like:

Elimination of losses

Achieving zero break down

Zero defects

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I could also found that the company is growing in faster rate, which is mainly due to good

relation between the employees. Thus i could learn the relevance of team building in an

organization. helped me to build my soft skills like meeting a deadline time management.

Team work & networking with fellow employees also helped me to understand the corporate

culture & experience in a better way.

I am happy that the employees in the company work like one big huge family. I also learnt

how to work in a fast environment. The training has also given me an invaluable understanding

of the internal business & culture that could never be attained through theory.

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CONCLUSION

Tourism is a phenomenon, which has now become a powerful in its own right. It

has now become a vital part in any country’s economy. This is by virtue of the

being the highest foreign exchange earner and an employment in time industry.

The hotel is undergoing a tremendous change regarding management, which

prefers analyzing innovative thinking in the administration of the hotel.

India today has a very strong computerized system making the work easy.

Budget hotels cater to the needs of the budget conscious travelers

Lot of private airlines is coming up with open off polices of government of

India.

ITC is renowned because of its excellence in providing customer satisfaction.

They were enjoying the status of market leadership rather monopoly since their

existence,. ITC should work to cope with this competition. Whatever the

conditions will be, ITC loyal and permanent customers will always prefer them.

As is not up to the expectations so far, therefore, It has an opportunity to

maintain and improve their quality service and retain their customers. It never

compromises on quality.

ITC is aware of the fact that hospitality industry exists in rapidly changing

environment, where new products and innovations are introduced quite

frequently. It is one of the biggest names in the industry and they always keep

abreast of their competitors. It relies on its international brand name and is quite

sure that will not be that big a threat.

We conclude that ITC is better than any other hotel located in Bangalore at

present and it is always the first preference for its customers.

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BIBLIOGRAPHY

Books

Stephen covery (1994), The Seven Habits of Highly Effective People (6thEdition ), Simon &

Schuster UK Ltd.

The information provided in this project is collected from various sources like;

www.wikipedia.com

Itc website(www.itcportal.com)

Ashok website(www.ashokhotels.com)

www.Scribd.com

www.Wikipedia.org

India Today magazines

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http://www.itcportal.com/

Organization Study on Fortune Select Trinity Itc Groups (1)

Documents

Transcript of Organization Study on Fortune Select Trinity Itc Groups (1)