Business Management: Small Hotel Management custom essays

Background information
The development of business in Saudi Arabia opens large perspectives for companies operating in hotel and leisure industry because Saudi Arabia is the country with climate and geographical conditions favorable for the development of tourism and, therefore, the demand on hotels is high. In this respect, starting up a small business in Saudi Arabia can be very profitable, taking into consideration the rapidly growing development of tourist industry in this country. At the same time, it is important to take into consideration substantial difficulties that may arise in the course of the development of business in Saudi Arabia, associated with specificities of the local culture, political system and economic development. in such a situation, the company entering Saudi Arabian market should come prepared to cope with challenges, such as the interference of state into business, some elements of protectionist policies being implemented in Saudi Arabia, the lack of democratic rights and liberties, as well as democratic traditions at large, and others. Nevertheless, on overcoming existing difficulties a small hotel built in Saudi Arabia and promoted internationally can become a desirable destination for rich customers, representing the upper segment of the hotel and leisure market. In such a way, the development of the small hotel business in Saudi Arabia can bring considerable profits on the condition of overcoming existing risks and threats and effective business management. In fact, it will be a family-type hotel, with 5-6 employees providing basic hotel services and maintaining the hotel facilities.
Comparison the theory and business
Theoretically, the development of business should be grounded on the adequate correlation between potential risks and possible return on investments. In this respect, the development of the small hotel business in Saudi Arabia represents a potentially profitable business, although risks associated with this business are relatively high. This is why the decision to invest into the development of the small hotel business in Saudi Arabia is quite risky. At any rate, the risk of failure of such business is consistently higher compared to the risk of the development of the same business in a well-developed, democratic country with open-market economy, such as the UK. On the other hand, the development of the small hotel business in Saudi Arabia can bring higher profits compared to the same business in the UK. In this respect, it is necessary to take into consideration the natural environment and factors contributing to the emergence of the tourist industry in Saudi Arabia. Therefore, referring to the theoretical assumption that the investments are worthy to make if there is a balance between risks and potential return on investments, Saudi Arabia is an attracting country to invest into the development of the small hotel business in this country.
Why the business start, motive, push of pull
Today, starting up the small hotel business in Saudi Arabia is very perspective due to the fast development of the tourist industry in Saudi Arabia and the attractiveness of this country for tourists and businesses. At the same time, the country has a significant internal potential to grow economically and the development of the local infrastructure facilitates consistently the development of the small hotel business. In such a way, conditions are favorable for the development of the small hotel business in Saudi Arabia. At the same time, the investment in developed countries, such as the UK, is quite uncertain today because of the negative effects of the economic recession on the economy of developed countries. In addition, potential returns on investments are higher compared to return on investments made in developed countries. In this regard, the small hotel business can develop fast and start bringing profits faster than the small hotel in London, for instance (Peters, 2002). In addition, the level of competition in Saudi Arabia is lower compared to well-developed countries.
Marketing
In such a situation, it is important to dwell upon the marketing analysis of the development of the small hotel business in Saudi Arabia. First of all, the product introduced in the market is the small hotel, Alsaad Hotel, which is equipped with modern technological devices and all essential equipment, including wi-fi internet, air-conditioning, recreational facilities, and other conveniences. The hotel will have about ten suits with classical furniture. The hotel will target at the upper-class audience to hold the premium segment of the market. The hotel will provide services for customers, who attend Saudi Arabia as tourists.
The price of the suits in the hotel and hotel services will meet the average price of hotels in the premium segment of the hotel market. At the same time, it is important to meet the quality of services to the price established by the hotel. Otherwise, the hotel faces a risk of losing its customers. In contrast, the high quality of services will justify the high price of the hotel suits and services (Gitlow, 1999). In this regard, the hotel should focus on the total quality management which is extremely important in the contemporary business environment, especially in the competitive struggle between companies operating in the premium segment of the market.
The place, where the hotel should be build, should be close to the coast and have access to the mainstream infrastructure of the country that means that the hotel should be close to the capital of Saudi Arabia or other large cities of the country, which have a well-developed infrastructure and where the number of tourists is high (Benfari, 1999). In this regard, Jeddah is the most attracting city because it is located on the coast of the Red Sea and, what is even more important, this city is close to Mecca, the sacred city for Muslims from all over the world. Such location of the hotel will help the hotel to accept tourists from different countries, promote its services and gain the positive reputation.
In this regard, the promotion of the hotel is very important. Taking into consideration the fact that the hotel aims at tourists, the promotional campaign should extend to the international level to reach the target customer group. In this respect, it is possible to use all media but internet seems to be the most effective because it allows to provide detailed information about the hotel and its services to all potential clients from all over the world with minimal costs (Mohrman, 1998). What is meant here is the fact that such promotion campaign will be cost-efficient because the costs of promotion via internet are relatively low, whereas the development of a large-scale promotional campaign on television or print media will need substantial financial resources. However, the effectiveness of promotion in print media or on television is doubtful. The effectiveness of internet is beyond a doubt because tourists normally search for a desirable destination and hotels available in the desirable location via internet. Therefore, the hotel should provide its potential customers with the possibility to visit the site of the hotel, where they can obtain all the information they need about the hotel and its services. In addition, it is necessary to provide the customer support service to ensure that customers are able to contact the hotel managers any time and get information on any issue they are interested in.