River Moter Inn

Topics: Revenue, Customer service, Income Pages: 4 (1350 words) Published: March 20, 2011
Ron Tembo
SN: 4130969

Riverside Motor Inn

Situation Overview
Ronald Veinot, is the general manager for the Riverside Motor Inn. He wrote a letter on October 1, 1997 to Heidi Smith welcoming her to the staff of the Riverside Motor Inn. Chapters Lounge is a subset of the Riverside Motor Inn that just hired Heidi Smith to finds ways to generate profit alongside of promotion to manager if everything goes according to plan. The Riverside Motor Inn is located in Bridgewater, Nova Scotia. Heidi smith was specifically hired to find ways to modify the operation management of Chapter Lounge. To this date, the owners have invested over $250,000 and need tactical strategies for improving sales to recover and steadily continue to generate revenue. Over the past few years, Riverside Motor Inn has experienced a decline in sales revenue. Between the years 1994-1996, sales ranked from $63,300 to $75,700 and averaged $68,567. In 1997, due to the renovation, sales declined by over $40,000 from $66,700 in the previous year to $21,980 in 1997. It is with the best interests of hiring Heidi Smith to come up with the best strategy for reaching the $100,000 mark in the year 2000. Strengths

Firstly, Chapter Lounge offers a quiet, comfortable, relaxing alternative to “the bar scene”. The items provided that provide these features are padded bar stools, arm chairs, loveseats and a couch. RelevanceChapter Lounge is unique and allows customers to feel more at home than other lounges/bars in the area. Secondly, Chapter Lounge has been newly renovated. Relevance This gives customers a different perspective of the Lounge and allows them to know Chapter Lounge cares about their customers. Lastly, Chapter Lounge is located in a convenient located which is important when looking at place utility. Relevance The location of Chapter Lounge is right inside the Riverside Motor Inn. This gives customers who are in already at Riverside Motor Inn a convenient time and location to be...
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