Occupancy Rate And The Company example essay topic

A research problem analysis is probably the only thing our organization needs to perform in order to find out how the company can survive the recent economy depression. A little introduction about Lakeview Forest Resort would familiarize you with the organization. Lakeview Forest Resort is a company which operates and manages several luxury cabins and lodges located within the City of Big Bear Lake Area, in the San Bernardino Mountains in State of California. The business was established about five years ago with luxury and quality in mind. The demand for better cabins and rooms was high, so the rates were much higher than the rest of the resorts in town. From the start the business was great and the quality service was appreciated by the guests.

The owners decided that an expansion was in order and the second resort was built a year later by the lake. The resort's guests were pleased and they didn't mind the high prices in exchange high quality service and luxury cabins. As a matter a fact the company had no advertisement except the word of mouth. The return businesses were almost 95% and people had to call at least a month before for a reservation. By the start of Year 2002 the businesses in Big Bear started to feel the downside of economy. Our organization was hurting by 50%.

It was time to evaluate the problem and try to cope with the economy. The problem was the high prices. People were settling for minimum quality but inexpensive. The mangers have suggested that the prices needed to be reduced so people with lower budget can afford to stay with us as well. A research is necessary to be performed. The research problem would be "what should our nightly rates be in comparison with our local competition of different type of quality in city of Big bear Lake?

To evaluate other companies who are compatible with our organization was a research by itself. As a result five companies were selected. The research should include the occupancy percentage rate during different seasons, the nightly rates being offered on different types of cabins / rooms, and if any additional packages (ski package or fishing boat packages) are being offered to their customers along with their room charges? For measuring the central tendency calculating the "mean" of the nightly rates is necessary.

The three possible outcomes were: 1. To offer the "mean" rate which is calculated by adding of the five companies nightly rates (at the same time and season), divided by five. 2. To offer the lowest nightly rate out there among the five chosen companies. 3.

To offer the highest nightly rate among the five chosen companies. The benchmark that our organization could use to evaluate the progress to resolve the issue is comparing the occupancy rates with what we use to have before changing the rates. Comparing the profits after the costs would show the success or crash of the new changes also. Every week the company can observe the ups and downs for the occupancy rates. The company needs to know if it is profitable for them if they can offer the same quality service with much lower rates they are offering.

When examining the possible outcomes, which means collecting information and hard data to see if the solution works. The outcomes should be measurable, observable, and realistically achievable. (Research and evaluation 2001) The outline for our organization research problem as the text "Research and Evaluation for Business" has introduced is as follows: 1. Problem Identification. Drop of occupancy rate within last 18 months.

2. Statement of Desired Goal or out come. To bring up the occupancy rate to desire profit for the company. 3. Research Evidence and hard data. The rate prices on the home and cabins collected from the five other companies.

4. Outcomes. To calculate the mean of the prices collected and use either: -The Mean number -The lower number than the mean number -The higher number than the mean number. 5. Identification of possible causes.

Using the mean number will increase the occupancy percentage rate as a result increases the revenue, which would offset the normal daily expenses. Using the lower number than the "mean", will also increase the occupancy percentage and the revenue, however it will attract different class of clients, whom they do not appreciate luxury accommodations and could easily misuse the type of amenities available to them. This will increase the expenses. With the higher rate than the" mean" it could have not much effect than what the organizations already have. 6. The proposed solution.

Our research conclusion was to select the "mean" number for the nightly rate. The steps in business research help to find the right way or the correct solution to our problem of low occupancy. Reducing rates might increase the occupancy rate, and the company would benefit from the number of the customers. That would also bring the business and the return businesses that our organization is very accustom to. Without the collection of hard data and reports from the research for the problem, it is unclear whether the solution to this problem is reducing the rates or other researches are necessary to solve the problem. M.K. Pelosi, T.M. Sandier, U. se karan Research and evaluation for business. 2001 John Wiley and sons, Inc. U.S.A..