In addition, Mortlock Hotel’s manager has been replaced eight times in the last five years, and the departments in the hotel are demoralized. A significant problem is that customers make regular complaints about service at the hotel. Moreover, the hotel has accrued significant debts, meaning that it has been operating below the break-even point.The aforementioned problems comprise part of what PDR Hotel Resorts will inherit when it finally gets acquisition rights for the Mortloch Hotel. To begin with, PDR Hotel Resorts will have to make a turn around in the quality of services in order to boost customer confidence in the hotel. Secondly, PDR Hotel Resorts will have to develop mechanisms to improve service delivery, among them deploying qualified personnel in the various departments who will embrace excellent human resource management skills. Thirdly, the group will have to focus on the customers’ complaints and provide solutions since customers are the cornerstone of the success of any business organization. Additionally, PDR Hotel Resorts has to look into ways of solving any problems that arise due to debts.The significance of the above problems is that PDR Hotel Resorts plans to buy Mortloch Hotel as part of its expansion program, yet it is evident that the hotel currently has a clouded image. If the purchase is not critically appraised, PDR Hotel Resorts may end up tarnishing its reputation in case the trend at the hotel continues even after the group acquires it. Therefore, when PDR Hotel Resorts eventually acquires Mortloch Hotel, the group will have to prove indisputably that the hotel is indeed under new management, with new services that will leave customers craving to make subsequent visits.In order to facilitate an effective and problem-specific structure to increase revenue, it is imperative to improve quality and service while minimizing the running costs in order to eliminate debt.
Managing Expansion Change in Business a Business Organization