Challenges Facing the Organization
The hospitality industry in Kenya is growing and businesses are still thriving despite the challenges facing them. Social media is a great tool for recruiting individuals into an organization. It allows one to share the job postings with an entire network and encourages two-way conversations. Even if people reached are not interested in the role a business is hiring for, it is likely they may recognize someone who is fit for the position. The Sarova Whitesands Beach Resort and Spa’s management has struggled in this aspect of business in the digital era. It can improve the situation by investing effort and resources into social media platforms, creating accounts and interacting with different users. Through sharing photos and videos of events held on the hotel, more people can have increased interest for working in the establishment. Additionally, through an application such as LinkedIn, it will become easy to locate potential employees.
The Sarova Whitesands Beach Resort and Spa in Mombasa is encountering a problem of retaining and finding talent and that of personalizing a customer’s experience. Maintaining a sufficient number of workers is critical and determines the level of success of a business in the sector. In 2016, fifteen thousand individuals were employed in the sector. The figure is projected to increase and as the industry continues to bulge, sustaining while also attracting top talents in the job market will become a priority. This is an issue that has already started affecting the hotel in discussion.
For it to edge out the competition, it has to ensure that it has top skills and retaining them is a major challenge. Statistics suggest that around one-third of employees quit their jobs after being there for only six months. Forty-five percent of them manage to stay for averagely two years. From waiters to stewards, individuals have not lasted long in the Sarova Whitesands Beach Resort and Spa. The hotel’s management at the start of 2018 felt that since it was an issue affecting various businesses, it should not pay much attention to it. In 2020, the view was different as the organization realized that there are entrants in the market who could pose a threat to the share since they have the best trained people working for them. Therefore, it needed to develop strategies that will help to attract more candidates to submit their applications and find ways to keep the already-hired individuals happy. The management of the organization settled on two techniques to solve the issue; that is, using social media and implementing an employee referral program.
Apart from that, the management has thrived in implementing an employee referral program. Capable and qualified individuals often make a habit of surrounding themselves with other highly trained professionals. Whereas many people may already be sharing open roles with great contacts in their networks, a well-designed referral program can encourage even more to refer the elite talent they know. The organization has provided bonuses for referrals and made it a contest so that it can create excitement on the issue among employees.
The second challenge that Sarova is facing is difficulty in personalizing a customer’s experience. Travelers have become accustomed to streamline as well as individual shopping experiences. This has also become a wake-up call for hotels such as the one in discussion. Providing clean and good design services is not applicable anymore. The digital era has steered an increased demand for more individualized traveling and lodging experiences. Taking advantage of the trend has been a major problem for the organization. The infrequency in travel has made it hard for the business to understand more concerning the clients. To deal with this matter, the management is offering peculiar designs and locally-sourced food and drinks in an attempt to create memories that will customers for another stay. Additionally, through social media, the brand has mobilized traffic to improve the experience.
Weaknesses facing the Organization
Failure by Management to Implement Competition Strategies
Every type of business in any sector experiences competition from other organizations. This can be good as it forces the businesses to grow and excel since they challenge one another. However, this could also be a problem for those that fail to implement capable strategies that will help in keeping up with competition in the market. For instance, the Sarova Whitesands Beach Resort and Spa’s management has been realized to use plans and approaches that are outdated which means that they are unable to help in the current times. For instance, most organizations nowadays have established a competitive edge by having a great social media presence. To beat them, one has to be better at engaging consumers and potential clients online. The management has not realized this yet and thus, other 4-star hotels are getting more clients than them.
Lack of Experienced Managers
It is the responsibility of the management to forecast and put in place plans to encounter any financial constraints that may face the organization in future. However, at the Sarova Whitesands Beach Resort and Spa, most individuals working at the management level lack skills to accomplish that. This made it hard for the hotel to predict the losses it incurred during the pandemic period in 2020. If there were capable managers with adequate experience, upon the announcement of the first case, the resort would have established strategies to ensure they still remain at the top in the hospitality sector in Kenya.
Lack of Accountability Systems to Monitor the Personnel
One of the reasons most organizations have failed in the hospitality sector is due to the high corruption level in the management and lack of systems that can aid in reviewing their performance. Rather than focusing on how the business can grow and capture new market, individuals have focused on enriching themselves using the firm’s finances. People employed in managerial roles have been discovered to use their access to organizational resources to steal from Sarova Whitesands Beach Resort and Spa. Assessing how certain number of resources allocated to a particular individual and how they have utilized them will help to save much money that gets lost mysteriously from the hotel. If this is not the case, then the establishment is likely to become bankrupt in a few years.
Mistreatment of Suppliers by Management
A business in the hospitality industry is reliant on the goods from suppliers and has to ensure that the flow is reliable. Failure by the latter to deliver on time, means that the customers will be impacted. In the recent years, it has been discovered that most suppliers have withdrawn their services from the hotel since they are not being paid on time. That delay has discouraged many individuals from partnering with the organization. If no action is taken against the individuals responsible for this, the situation could lead to poor services for the clients which could lead to losses.
Less Tech-Savvy Individuals among the Staff
In the organization, very few staff members have knowledge of using new technological devices that would help transform the hotel’s operations. For instance, data entry is a part of welcoming guests at the resort. There are gadgets that help to achieve that easily but most employed individuals at the Sarova Whitesands Beach Resort and Spa do not have knowledge of doing this which delays entrance of clients.
Threats facing the Organization
Terrorism
Kenya, the country the resort is in, has faced much pressure from the terrorist group that is based in Somalia, the Al-Shabab. Previous attacks at Westgate Mall and others at the Coastal region has made many individuals from foreign nations to resist the urge to tour the place or settle at the hotels near in the area. One of the establishments is the Sarova Whitesands Beach Resort and Spa which is at the threat of closing in the near future if the issue continues. People want to feel safe during their vacation and if this is not guaranteed then they choose other places whereby they can feel secure.
Airbnb
Another major threat to the business in discussion is the emergence of the Airbnb establishments in Kenya. Many individuals are investing in the business and attracting more people. Kenyans and others from other countries have been seen to prefer these apartments since they have special offers that can be found in a hotel such as Sarova Whitesands Beach Resort and Spa. The prices for staying in the rooms are also lower than the ones charged by the 4-star hotels in Kenya. In the event this trend continues then the latter would run out of business.
Politics
The political atmosphere in Kenya is not conducive and can be very discouraging for foreign visitors. The post-election violence in 2007 resulted in many people losing their lives. As the country is headed for another general election in August, some fear that the outcome might not be impressive to one party’s supporters and thus lead to violence. International visitors make up a significant percentage of individuals in the hotel and therefore this could cause the business losses.
Media
Media in the developing countries has been used by a few individuals to hurt others especially in business and politics. The lack of freedom has forced journalists and reporters to report false claims about certain organizations with the intention of leading them out of business. This is a technique that has led to many companies closing down their operations as the management officials are linked to scandalous events. For instance, in the hospitality sector, potential guests and visitors trust the media to understand the right places to visit on a holiday or vacation. If someone reads from a newspaper, hears or watches a statement from the television that a particular hotel has certain dysfunctions, it is difficult for them to go to those places. The lack of freedom and corruption whereby one business can pay for another’s name to be tarnished is a threat to the operations of Sarova Whitesands Beach Resort and Spa.
Reputation Management
One issue that is crucial in determining the success of a business in the hospitality sector is reputation. The image people have about the organization can determine whether one will have new or return visits. When customer service is poor, no individual will want to spend money for a night at the establishment. In the internet era, this could be disastrous as a person can share the information through the social media channels and instantly, it could become a trending topic online. Dealing with the repercussions could be a difficult task and could impact the future of the business.
Potential for Growth for The Organization
Opportunities
Technology
As much as technology offers a challenge and the hotel is still struggling to keep up with the latest trends in the sector, the management should take advantage of the situation. This can be done by not only developing an application for the organization but also improving the website. Such efforts will ensure that the establishment learns what the customers desire and whether or not they enjoy what they have to offer. For instance, in Google Analytics, one can be able to check the number of times the website has been visited by new or returning users. This is important as high number in both categories is positive as it reveals that the hotel has captured people’s attention. Integration of the latest technology into daily operations can aid in establishing a social media positioning strategy that will be helpful in gaining a competitive edge.
Apart from that, Sarova Whitesands Beach Resort and Spa can use the website to showcase photos and videos of the events that take place there. Quality images will attract guests from various places and thus boost the numbers. This is also a tactic that can steal clients from a rival business in the same industry. Additionally, a website is important since it shows that a brand is credible and can be trusted. It acts as a physical address or contact which clients search for when trying to check which organizations with whom to partner.
Real Estate
At a time when there is a threat to the business, entrepreneurs look for other strategies to continue gaining profit or even earning more than usual. For instance, during the pandemic, companies that had invested in real estate especially hotels started switching to office buildings. The reason for this is that people will not see it fit to spend much money for a single or two nights at a hotel room when the financial situation is unstable. The same individuals would be interested in acquiring a lease for an office since it is long-term. This is what Sarova Whitesands Beach Resort and Spa needs to do.
The current political situation in the country is not good and there is a chance that the hotel receives lowest numbers during this time. This has changed how the real estate industry operates at the moment. The situation gives the management an opportunity to invest in ventures such as office buildings. This would ensure that the organization still earns profits that will be important in supporting and helping them get back to normal operations after the general election in August. Many businesses in times of crisis fail and even close due to lack of planning. This is a perfect plan for the brand as many political aspirants are looking for places to set up as their offices.
Market Development
Betting has grown and become popular in Kenya very quickly, giving established businesses an opportunity to expand and grow. Companies from both locally and internationally have ventured into the business by investing large amount of resources. The firms have gained much profits from the investments as more and more people are interested in gambling. This is a chance for Sarova Whitesands Beach Resort and Spa. Instead of having its own betting platform, the hotel can integrate a casino into the establishment. Many individuals would be drawn there which means that they will get to see other services offered.
People have grown tired of viewing advertisements on televisions or even online. They want business owners to show them what else they have to offer. A casino is a great addition to a hotel since there are already resorts that provide the same services as the one in discussion. This is a feature that could distinguish Sarova Whitesands Beach Resort and Spa from other businesses in the hospitality sector especially at the Coastal region of the country. Differentiation is an important part of gaining more market share and thus, growth. The outcome would be more visits which means more profits and an opportunity to expand into other areas surrounding Mombasa.
Product Development
The standards in the market regarding the hospitality sector are changing and individuals want a different type of service every time they visit an establishment of their choice. A poll conducted on Twitter showed that Kenyans wish for new or improved services to be introduced by hotels. With product development, an organization can either introduce a new product or better the existing one. In this case, the hotel has an opportunity to enhance the customer care services as it would set it apart from other businesses in the hospitality industry. In the recent past, customers have become critical of the type of customer service they receive. Using the internet and social media pages, they have disgraced establishments that treated them poorly which have resulted in losses as clients boycotted those organizations.
It is the responsibility of the hotel’s management to look at the ways the business can improve. Product development is an issue that can help the growth of an organization. Most companies that have failed to do great in business or closed down ignored the reality of the matter that people’s wants change. As more brands enter into the market, individuals desire to explore various tastes and thus, it is essential to ensure that one’s brand remains adaptive and get better.
Vertical and Horizontal Diversification Using Acquisitions
In an attempt to grow and expand in terms of gaining more market share and generating more revenue, a business can indulge in acquisition. The hotel can acquire various establishments that are struggling financially in the sector and thus grow. In the Coastal areas in Kenya, where the resort is situated, there are many businesses that have been started due to the high number of tourists and visitors. All of them have their strengths and most of the time, the smaller brands in an attempt to grow, offer special delicacies that can only be prepared by the local people but still struggle financially. The main constraint they have is the insufficiency in resources which is something Sarova Whitesands Beach Resort and Spa has in abundance. By acquiring the various hotels, it can be a win-win situation for all of them. The brand in discussion grows while the others gain resources that can help them become better in the market. Additionally, during the acquisition, the smaller businesses can use Sarova’s name which would guarantee much more attention to the establishments.
Strengths
Well-Trained Workforce
Sarova Whitesands Beach Resort and Spa has well-trained management and staff that is devoted to working towards the company goals as well as personal ones. When an individual is dedicated, it means that they are motivated to perform their roles. This in turn suggests that the customers on the receiving end of the services are in good hands and thus their needs are met. The hotel has thrived in ensuring that this is the case by sending the employees to training programs on a regular basis. Additionally, members of the management teams are asked to attend seminars. This is where they meet others at their level but working for various organizations and share valuable information about how to endure the pressures of the 21st century client. While applying for a job position at the organization, one is needed to submit certificates that attest to their qualification.
Considers All Types of Visitors
For a hotel to accommodate every type of visitor, it has to ensure that the rooms are conducive for individual guests or a group of persons. At the Sarova Whitesands Beach Resort and Spa, it is easy for someone with a family to find accommodation suitable for a stay of however duration. The only information needed while registering is who are the guests. For instance, the establishment identifies people under the age of seven as babies, those between 7 and 17 years as children and others as adults. This data is key it helps the staff understand the type of room for particular individuals. Apart from families, even those that are working or attending a business meeting can be accommodated at the resort as there are halls that cater for such needs.
Native Employees
In addition to a well-trained management and staff, the hotel has employees that have grew up in the Coastal areas and understand the various cultures of the people in the surrounding communities. When individuals visit the region, one of the attractions is learning about the different traditions present in the area. This cannot be taught unless by someone who is a native. By employing such people, the hotel is a position to offer more than accommodation services which sets it apart from its rivals. Individuals choose organizations that are willing to go an extra mile. This is important as the clients are usually charged when visiting various places to study the customs of the Coastal communities.
Good Ratings from Past Clients
The other strength of the organization is that it has always been associated with success. A poll conducted on Twitter asking about the satisfaction level of individuals after visiting the resort, confirmed that the business was ranked among the top in East Africa. When an organization has good ratings, clients are naturally drawn without having to invest as much on marketing as other brands. Despite the pandemic hit and other issues such as taxes and insecurity in the areas, the management has been able to ensure that the business operations run normally. People have seen the efforts the business is making towards improving. Once the market notices that a particular brand is not content at the level they are in and are constantly searching for ways to get better, they lean in towards them. This is a reason why people are willing to pay whatever it costs to be hosted at the hotel and another reason why the resort keeps growing.
Safe Accommodation
Previous visitors can attest to the fact that Sarova Whitesands Beach Resort and Spa offers secure abode that is away from their homes. No one can deny that it provides a safe accommodation for individuals, who are not only tourists but also businesspeople, when they are not close to their usual residences. The hotel itself boasts of many decent rooms that are of high standard. With a range of services and staff that is dedicated to deliver and cater for the desires of the customers, it is fitting to state that clients’ needs are met at the establishment. They provide every person a place to rest and relax from all the stress about daily life experiences and work. Without the hotel, vacations as well as road trips would not be possible or even safer.
Conclusion and Recommendations
Conclusion
The hospitality sector in East Africa and particularly in Kenya, is growing at a fast pace. Businesses are thriving in spite of the various challenges that continue to emerge due to the changing business and political environment. The Sarova Whitesands Beach Resort and Spa in Northern Coast of the country is encountering a problem of retaining and finding talent and that of personalizing a customer’s experience. The same can be said about other organizations in the same industry.
It is important to note that the growth and success of the hotel in discussion is highly dependent on the state of not only global economy but also the local. Additionally, having capable and adequate personnel guarantees success for the business in general. This means that recruiting and maintaining sufficient number of workers is critical. Five years ago, fifteen thousand individuals were employed in the hospitality industry. The figure is projected to increase and as the sector continues to bulge, sustaining while also attracting top talents in the job market will become even more of a priority for Sarova. Most brands are struggling with the issue which should not be the case in a country where unemployment is at an all-time high.
The paper shows a tactic that can be helpful in dealing with the matter mentioned above. Social media is a great tool for recruiting individuals into an organization. It has allowed many to share job postings with an entire network and encourage two-way conversations. Even if people reached are not interested in the role a company is hiring for, it is likely they know someone who is fit for the position. The Sarova Whitesands Beach Resort and Spa’s management has invested effort and resources into social media platforms, creating accounts and interacting with different users. Through sharing photos and videos of events held on the hotel, more people have gained more interest in working for the establishment. Additionally, through an application such as LinkedIn, it has become easier to locate potential employees.
Recommendations
Even though the hotel is making strides towards establishing itself as a huge player in the hospitality industry in East Africa, there are various ways it could still improve and beat the competition. For instance, in its marketing strategies, the management could become more active on social media and give them a better chance at attracting new market. In this era, very few people watch television for advertisements on places to visit. Most are using platforms such as Instagram or Facebook to see the photos of establishments they should tour. It is thus, the responsibility of the management to ensure that they develop a team of individuals who understand the type of content users online prefer.
Apart from marketing, the hotel can improve on its recruiting techniques. Even though there are many young unemployed people in Kenya, where the resort is established, this does not mean that it is easy to acquire the top talents in the job market. It as well does not suggest that retaining already-hired staff is an easy task. Using modern channels such as social media platforms and websites can ensure that one gets what they need. For instance, on a platform such as LinkedIn, employers meet candidates and this is where they can check on their qualifications. Through this, not only does that the hotel saves on time but on resources as well.
Lastly, it is important that Sarova Whitesands Beach Resort and Spa management understands carries out activities that help to promote the image of the company. Most establishments in the sector have found themselves in a bad position in the market since a competitor collaborated with a media station to damage their reputation. To avoid such problems, the hotel in discussion can get involved in charity events that aim to help the local communities.