Strategic Evaluation Document for Grunge Hotels

3861 words (15 pages) Essay in Information Systems

08/02/20 Information Systems Reference this

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Table of Contents


Table of Contents


Strategic Evaluation

Impact of IS

Major System

Types of information

Organisational Changes


Disaster Recovery & Business Continuity Plan

Cost Beneficial



The Grunge Hotel Group has 43 1-star hotels that are already established that provide basic accommodations. Each hotel consists of 37 employees and they have a Head Office with 14 employees.

The Grunge Hotel acquires run down and dilapidated premises and turn them into basic accommodation. The vision for Grunge Hotel Group is to become the number one hotel group in UK for providing basic accommodation with the cheapest rates.

One of the advantages is that the company is steadily growing by acquiring and renovating run down and dilapidated premises and are cash rich.  They have a good rating in a website that produce reports on hotels. And medical professionals recommend it to patients who need a break from everyday life but are not able to spare much cash.

Disadvantages and solutions are

  1. Page 2, Paragraph 3

This affects the Grunge Hotel Group because they use highly skilled Eastern Europeans to renovate the properties that they acquire, and the payment is below average price to be able to continue being the cheapest.

Solution: Page 3, Paragraph 2, line3

They are planning to target school leavers due to the problem stated above. This is a very good idea, because school leavers will easily accept the below average pay to be able to start up on their careers and if they enjoy the job, they may even become permanent employees.

  1. Page 3, Paragraph 3, line 2 till

Due to the lack of the fundamental IT system, the bookings are done manually and can only be taken via the phone while financial transactions of each hotel are done manually and then all the details of the financial transactions are sent to the head office daily. This leads to a lot of time wasted and is prone to many technical errors.


The company should consider evolving into the computing era. A centralised computing system will make it very easy to keep all financial transactions and bookings up to date always. Once an account clerk from a hotel has posted a financial transaction, it would be easy to access it at the head offices.

  1. Page 3, Paragraph 3, line 5

Due to the problem stated in number 2, and an assessment done by the External auditors, it has come to light that the end of year accounts has been below the standard of that needed by a commercial company.


With the evolvement in computing in the company, it will be easier to make financial reports for each Hotel. The reports would be accurate and will be able to show all the financial transactions on specific dates and months.

  1. Page 3, Paragraph 3, line 7

The company has a financial director with no appropriate qualifications and this is to keep the running costs down, but this is one of the main reasons that the company has the issues that are stated in Number 3 above.


The company can either hire a financial director with appropriate qualifications or outsource this and this may be cheaper than hiring a company that specializes in the accounting department itself.

  1. Page 3, Paragraph 4, line 1 till line 6

For the future development in Computing, the company has kept a substantial place to store the servers and computer equipment. But this is not suitable to store the server because they have a water leakage problem when they are heavy rains. The company does not have an appropriate place to keep all the computer equipment and servers.


The servers for the company can be put in a separate location or also be outsourced by the company. Outsourcing the server work will ensure that the servers have security up to date and it will be cheaper than buying a server or several servers.

  1. Page 3, Paragraph 4, line 6 till line 8

We have a lot of employees in the company, and some of the managers may not be willing to the transform into the new era of computing and would like to do the processes as before. This is a major concern as the main goal in computing is to provide a product that will make work easier for the company, due to the reluctance of these managers, the system may fail.


Before starting to build a system, all stake holders should go through a thorough requirement analysis process, this will ensure that all the complains from every end user has been taken into consideration. The understanding of the way the business processes are done can also guide us to make the procedures as they are on to the computer system, making it easier for the reluctant mangers to have a system with similar processes as they have.

Strategic Evaluation

Define SWOT analysis

  1. Strengths
  • They are an already established company with 43 1-star hotels running and that brings in many cash customers making them cash rich. The hotels are one of the cheapest hotels in UK providing the basic accommodations.
  • The Grunge Hotel Group is steadily growing by renovating worn out places into basic accommodation
  • The medical professional recommends clients to the Grunge hotel groups because it is suitable for individuals low on cash because they provide quality services at cheap rates.
  • The website that produces reports on hotels has given the hotel a good rating.
  1. Weaknesses

    • Lack of fundamental IT systems makes it difficult for the booking recorder and the accounts department. With no centralised IT system, the company must do the accounts twice, once in the hotel and once at the head office, this can easily lead to errors.
    • The accounts do not meet the standards of a commercial company because the financial director has no appropriate qualifications.
    • They have a basement where they can keep the IT servers and equipment, but it is not suitable due to the water leakages in heavy rains.
    • Some of the managers are reluctant to change into the new era of computing and want to stick to their old ways. They find idea of IT systems abhorrent.
  2. Opportunities

    • If the company can acquire properties in the auction, they will have expanded to about 100% to 200% then they are right now.
    • The rich Russian Oligarch has invested £500 million fir a week’s holiday at a good quality hotel, if they are able to get the sale, they will make a lot of money.
    • Targeting the school leavers will ensure them at least a few new employees that will also accept the same pay as the Eastern Europeans and the costs of renovating the new acquired properties will not change in price.
    • The company can advance in the technologically department, making it easier for the booking and financial departments.
  3. Threats

    • The biggest threat to the company is the highly skilled Eastern Europeans that renovate the dilapidated premises that the company acquires at prices below the market average.



  • Affordable 43 1-star hotels
  • Steadily growing
  • Medical professional recommendations
  • Good Ratings
  • Lack of fundamental IT systems
  • Accounts below standard
  • No suitable place to store IT equipment
  • Some reluctant managers



  • 200 properties to acquire
  • Rich resident Russian Oligarch
  • Target School Leavers
  • Technology advancement
  • Loss of Eastern European renovators

Impact of IS

Major System

A property management system (PMS) is a software application for the operations of hospitality accommodations and commercial residential rental properties. PMS is also used in manufacturing industries, local government and manufacturing. A property management system is sometimes referred to as a hotel operating system or hotel OS.

PMS provides a centralized computer system to organize, schedule and perform the day-to-day functions and transactions involved in accommodations businesses. Computer record keeping, and PMS have increased the efficiency of hospitality industries significantly simply by making it possible to update and consult centralized records from multiple computers and devices. PMS solutions have been customized for the needs of the hospitality industry to further increase ease of operations. (Rouse, 2018)


In the list below, the functional requirements, users and the reports produced are indicated:

  1. Central Reservation System (CRS) – this is the module is for room bookings, collection of payments, show available rooms, send emails of confirmed reservations and book any other activities required by the customer. The module will be used by the Receptionists and sales. The module will be able to produce the following reports:

    1. All inventory data and dates are sent to the front desk module.
    2. Current and upcoming bookings report
  2. Front Office Operations – the data send about the room allocations from the CRS are used by the front office operations to allow guest check ins and outs, view and update the room reservations and process all payments. All the data accessed is up-to-date This is module is for the receptionists.

    1. Night audits
    2. Shift audits
  3. Revenue management – the module uses Occupancy, Revenue per available customer and average daily rate to generate an evaluation of the Hotels financial success. This will guide the Managing Director and Hotel Manager to be able to adjust processes for controlled finances and achieve better results.

    1. Evaluation of the Hotels financial success
  4. Housekeeping – the front office makes a list of rooms that require housekeeping and assign the housekeepers. After the housekeeper has done they update the front office. The module provides room status, housekeeper assigned for which room, block or/and floor and list of housekeeping tasks.

    1. List of maintenance tasks
    2. Reports for housekeepers
    3. Records of repair and maintenance for all rooms
  5. CRM and customer data management – this module issued to collect data from the reservations and front office of the set customer and provide all the data of the set customer. All this data is stored on a Database. This data can further help with sales and marketing, gives a measurement of the guest experience and provide a pre and post stay service. This module will enable the hotel to provide more personalized experiences to customers

    1. Customer Information Reports
  6. Reports and analytics – this will assist in knowing the current processes and understanding of the hotel performances. This tool will assist in providing all the types of reports that will be required.
  7. Back-office management – with this module we can do the management of every hotel team, know the back-office operations and administrative hotel operations, like the following:

    1. Catering
    2. Event management
    3. Staff management – this is used by Human Resource and uses shift management and payrolls)
    4. Costs and hotel spending analysis
    5. Room analysis
    6. Reviews management

Types of information

Hotel Manager

  • Task: Manage the hotel and respond to all issues and sort them. Running and maintaining the hotel.
  • Useful Information:

    • All inventory data and dates are sent to the front desk module.
    • Current and upcoming bookings report
    • List of maintenance tasks
    • Reports for housekeepers
    • Room analysis
  • Raw Data:

    • Night audits
    • Shift audits
    • Evaluation of the Hotels financial success
    • Reviews management

Managing Director

  • Task: Ensure the hotels are making a profit
  • Useful Information:

    • Night audits
    • Shift audits
    • Evaluation of the Hotels financial success
    • Reviews management
  • Raw Data:

    • All inventory data and dates are sent to the front desk module.
    • Current and upcoming bookings report
    • List of maintenance tasks
    • Reports for housekeepers
    • Customer Information Reports
    • Catering
    • Room analysis

The following is useful information to both:

  • Records of repair and maintenance for all rooms
  • Event management
  • Staff management – this is used by Human Resource and uses shift management and payrolls)
  • Costs and hotel spending analysis

Organisational Changes

Grunge Hotel Group’s current system has been bringing a few problems on the table and they have been discussed in the introduction. To ensure that these problems are at a minimal, we would like to introduce a new system. They may be big changes to the company and the employees, but we will try to make the changes as least as possible.

The following will be done to ensure that the changes made are done as smoothly as possible and with the least disruptions to all users:

  • The main change will be the addition of computer systems and how they operate. The additional cost of the computer equipment in the start.

The employees who are not happy with change, will be given a chance to test and review the system and make comments for further changes. Once the changes are made, they will be provided with limited test chances to retest and review the system.

  • Staffing – the staff will be tested for which department they would fit in best and they will be re organized accordingly, to bring out the best from these employees. The employee will be notified about the testing and after that before any changes are made, all employees will be informed about where they will be allocated and what their duties will be. Some employees may be deployed due to redundancy.
  • User operating procedures – after the testing, notifying and re allocations are done, all employees are going to be trained fully for the job positions given to them or the ones they have picked. All users will be provided with user manuals and a copy will be kept with the Hotel Managers in case of any loss of their manuals. Online, phone and site visit supports will be provided accordingly to any problems arising.
  • Management style – the way management used to work may change and policies of computing will be added. They will new policies added, and a lot of old ones may be reviewed and changed according to the requirements of the hotel.


Outsourcing some of the services of the hotel will bring the following advantages:

  • Focus on your core competencies – while some of the services are outsourced, the Hotels can focus on the vision of the hotel.
  • Save labour and equipment costs – they will not have to buy any special equipment’s for the services that are outsourced. They will not be required to hire staff for the outsourced services.
  • You hire trained professional – they cost of training will be gone as the outsourced services will already have trained professionals.

The following services of the hotel can be outsourced:

  • Housekeeping & cleaning – this service should be outsourced because of the advantages listed below and they can be hired according to the how much cleaning and housekeeping is needed, and this becomes cheaper than hiring staff.
  • Security – security is a major concern and hiring security guards would be cheaper than training and keeping your own security guards. The company hired would be specialised in security and they would provide better security.
  • Laundry management – just like housekeeping and cleaning, laundry can be hired as required per the customer orders and this reduces costs. The quality of the laundry cleaning gradually improves.
  • Server management – this is a very expensive for an in-house service. Outsourcing this will ensure that the server is monitored 24/7, maintenance and updates are done for both the hardware and software. Since the hardware and software are up-date the vulnerabilities are minimized.
  • Human Resource and Payroll – the human resource deal with all staff recruitment, contracts, payrolls, taxes and complaints from employees. When the professional deals with the employee complaints, the employee doesn’t feel like the HR is being biased to their bosses only, giving them a chance to tell the truth and the professional will also ensure that the compliance factors are taken care off. All paper work on employees is done by HR.

Disaster Recovery & Business Continuity Plan

Grunge Hotel Group is a big business and for a big business, the downtime of the servers can cause a lot of losses. To ensure that the business is not interrupted for a long period of time, we would use prevention methods:

  • Avoid Overheating – to avoid any damage from overheating, we will monitor the temperature of the room the server is in. The server will be kept in a room which will have an Air conditioning and the air conditioning will be kept as needed by the server.
  • Clean often – once a month, the server room and the server will be cleaned to ensure no dust or debris are trapped in the server which may lead to a fire or a malfunction in the server and due to the cleaning, the server will be in good condition.
  • Make sure we have the right server – depending on the full needs of Grunge, we will the server that is fit for the purpose instead of trying to cut corners and save money. A wrong server can be costlier as it may fail at any point. The right server can be easily upgradable as business grows as well.
  • Keep the power consistent – power consistency is very crucial as power fluctuations can easily damage or even fry the whole server. We will use an uninterruptable power supply (UPS) to ensure that the power is stable and if power goes completely, the UPS can keep the servers running.
  • Backup – the server will be backed up on a cloud to ensure we do not lose much data in case of a server failure. And they will be a second physical back up done of the server after every 24 hours onto an external Hard drive.
  • Backup facility – a warm site can be used, this already has hardware and can restore the service using the physical backup or cloud back up. After restoration is complete, the recovery work can begin.

In case the servers do fail, we can use the following recovery option:

  • DRaaS is a low-cost service that is flexible in replicating data centre infrastructure and critical servers. The cloud virtual environment has pre-built options which include network connectivity, security and server failovers. Working applications like SQL Server have a consistent recovery. The applications that have been backed up can be run as a service until the normal servers are back up or new servers have been placed. It takes a few minutes to copy a backed-up system onto the cloud and resuming the operations immediately that makes it a minimal downtime for the business.
  • We can use a backup facility is in place, we can easily use the Hard Drive and restore data, and then ensure that the data is up-to-date and continue working.

Cost Beneficial

They are 2 types of benefits the system will bring, and these are:

  • Direct Benefits

    • Reduction of staff – as discussed on the organisational changes, some people may lose their jobs and the remaining will be trained according to the job positions. If employees are happy and satisfied with their jobs, they will do their jobs very easily and overall it will become a great friendly environment to work in.
    • Increased sales – sales will be increased as it will be easier to get customer information faster making it very easy to respond to all customers using very little time.
    • Customer reviews – this is help in improving the hotel and this will keep customers even happier.
  • Intangible Benefits

    • Customer service improved – this will be improved because of the customer reviews done.
    • Great job satisfactions – The trainings will ensure that the employees do the work in less time, giving them time for more work and overtime will be reduced as they will be able to complete their work in working hours.
    • Better management information – the managers will get proper information from the reports and they will be able to manage the hotel.


  • Altexsoft, [Online]
    Available at:
    [Accessed 29 October 2018].
  • Rouse, M., 2018. [Online]
    Available at: [Accessed 29 October 2018].
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