SWOT Analysis: Crown Metropol Melbourne (Research Paper Sample)

Crown Metropol Melbourne
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Contents TOC \o "1-3" \h \z \u Summary PAGEREF _Toc71911561 \h 3Introduction PAGEREF _Toc71911562 \h 4SWOT Analysis of Crown Metropol Melbourne PAGEREF _Toc71911563 \h 6Branding Strategy PAGEREF _Toc71911573 \h 11Target Market PAGEREF _Toc71911574 \h 12Pricing Strategies for Accommodation PAGEREF _Toc71911575 \h 12Source of Physical Assets for Banquet Facilities PAGEREF _Toc71911576 \h 13Operational Plan to measure of Organisational Performance PAGEREF _Toc71911577 \h 14Proposed Solution and intended Outcome PAGEREF _Toc71911578 \h 15Conclusion PAGEREF _Toc71911579 \h 17References PAGEREF _Toc71911580 \h 18
Summary
Crown Metropol Melbourne reopened on 18th February 2021 since its closure on 23rd March 2020. Apart from the significant losses the hotel incurred in the financial year ending 30th June 2020, it has commenced its operations at a time when COVID-19 pandemic is still affecting various global economies and travel restrictions have not been abolished. This study, thus, aimed to assess the strengths, weaknesses, opportunities, and threats that Crown Metropol faces so as to recommend solutions to the identified challenges.
The study relied secondary sources, financial reports, to collect data on the hotel’s performance. Details gathered from the 2020 financial report included earnings before interest, taxes, depreciation, and amortisation (EBITDA); revenue; and financing/credit facilities. Additional data was gathered from Australian Bureau of Statistics and information from previous research studies helped to interpret and explain the findings.
Results showed that Crown Metropol has several strengths including online presence (website, Facebook, Twitter, etc.), existence of employee support programmes, participation in community service initiatives, and collaboration with the Victorian government authorities in prevention of COVID-19 spread. However, Crown Metropol also has several weaknesses such as lack of diversification, inadequate investment in research and development, and legal issues that could damage the group’s reputation. Various solutions are suggested.
Introduction
Crown Metropol Melbourne, according to Guest Reservations (2021), is a five-star luxury hotel in Southbank, Melbourne. It is located close to Docklands, Southern Cross Station, and the Crown Entertainment Complex. The hotel provides an extensive view of Melbourne city, and its services to guests include the access to executive lounge, bar, and a spa with a twenty-five metres pool. Apart from these, Crown Metropol provides guests with air conditioning, bathrooms with oversized showers, LCD televisions, and dining options (such as the Mr Hive Kitchen and bar). According to Crown Melbourne (2021), Crown Metropol Melbourne has better style and offers clients the luxury experience that they cannot find in any other hotel within the city. These include the Twin rooms (Luxe King) where guests find either King or double Queen-size beds, the incredible city-view that room occupants get, the ability to see Port Philip Bay, the infinity pool positioned in the hotel’s 27th floor, the third level meeting space where guests interact with their clients, and the Crown Gift Cards that allow guests time to select their preferred hotel or room. These have brought great aesthetic impacts on customers and earned the hotel numerous accolades and awards in the industry.
Problem:
Crown Metropol Melbourne is part of Crown Melbourne, which Crown Resorts (2020) described as one of the best integrated resorts in Australia and one whose diverse and dynamic facilities attract the highest number of tourists. Crown Resorts 2020 report revealed that COVID-19 had a significant negative effect on Crown Melbourne, as a whole. The domestic and international travel restrictions caused a decline in overall visitation and raised community uncertainty. These claims were confirmed by the Australian Bureau of Statistics (2020), see Figure 1. Transportation industry recorded the highest decline (-42%), and accommodation took third place with more than -20%.
Figure SEQ Figure \* ARABIC 1: COVID-19 Impact of various Sectors of Australian Economy
Source: Australian Bureau of Statistics (2020)
The interconnectedness between transportation and toursism (Lohnmann & Duval, 2011) affects accommodation businesses directly, so that decline in tours and travels decreases demand for accommodation. Consequently, the Crown Melbourne’s revenue of the year 2020 ($1,477.8 million) dropped by 31.4% compared to what it earned in 2019. Moreover, the before Closure Expenses theoretical EBITDA recorded a 39.9% decline to $354.3 million and the costs caused by closure were $65.8 million (Crown Resorts, 2020). Crown Melbourne as well experienced a 37.9% decrease in reported EBITDA. The severity of COVID-19 also caused the company to place about 95% of its employees on hold. Crown Resorts currently provides financial support to the employees on hold through different employee-led programmes.
Study Objectives:
The general goal is to explore the strengths, weaknesses, opportunities, and the threats faced by Crown Metropol Melbourne. Specific objects include, to:
1 Describe Crown Metropol’s target market, branding, and pricing strategies
2 Report on the channels used by the hotel to acquire the facilities it uses to attract customers
3 Explain how Crown Melbourne can measure its performance
4 Suggest solutions to the discovered issues
SWOT Analysis of Crown Metropol Melbourne
SWOT is the acronym for Strengths, Weaknesses, Opportunities, and Threats. Teoli, Sanvictores and An (2020) explained that SWOT was launched in 1960s by Albert Humphrey. According to Namugenyi, Nimmagadda, and Reiners (2019), managers employ SWOT analysis to identify factors that impact the performance of a business from within and outside the organisation. In particular, “Strengths” aids the identification of internal business features that affect the attainment of organisational objectives and efficiency of customer service. The “Weaknesses” are also internal factors but these refer to constraints that hinder the attainment of organisational objectives. On the other hand “Opportunities” and “Threats” are both external factors (Teoli et al., 2020). Opportunities comprises the various factors that could benefit the organisation if it decides to exploit them, while threats are unfavourable elements with the ability to delay or fully hinder the attainment of business goals. Generally, SWOT analysis looks into business’ competitors, raw material prices, and the systems within the supply chain (Namugenyi et al., 2019). The outcomes of SWOT analysis should provide detailed understanding of the resources a company owns, and enable identification of strategies for enhancing the company’s competitiveness. Below is the SWOT analysis of Crown Metropol Melbourne.
Strengths
Crown Resorts is the organisation to which Crown Melbourne, and Crown Metropol Melbourne, belongs. In the 2020 financial report, Crown Resorts Chairman explained that the company was a leader in tourism as well as hospitality and gaming in Australia hence the Crown’s Board has to prioritise stewardship. In this regard, the company enhances its risk management practices to meet the conditions set by the evolutions in the business environment and address emerging issues (Crown Resorts, 2020). One way the company achieves this is by ensuring highest degree of compliance and governance. Also, Crown Metropol Melbourne avails several assistance initiatives for its employees during COVID-19 employment hold. Some of the programs include the Crown Jobs Network and Hardship Fund. These comprise of committed teams of human resource with capacity to propel the hotel employees’ skills to a level that equals those required in external job opportunities. Again, in response to the bushfires experience in 2020, Crown participated in the relief programme by donating $5 million. The funds were raised by the Crown Resorts in collaboration with Packer Family Foundations (Crown Resorts, 2020). The company gave these donations to various charities as well as employee-oriented projects within the community.
The impact of COVID-19 on Crown Metropol Melbourne and the rest of Crown Resorts enabled the business to qualify for the JobKeeper programme provided by Commonwealth Government. This has helped the company to continue assisting thousands of its staff. Other employee support initiatives included the ex gratia payment that ensured biweekly funds disbursement to both the part- and full-time workers, and $1,000 lump sum payment for qualified casual workers (Crown Resorts, 2020). Through the Hardship Fund, the organisation selectively assisted employees to whom COVID-19 brought severe financial struggles and Crown Jobs Network enables Crown to direct employees to outside employment opportunities. Crown Metropol Melbourne is, as well, part of Crown Resorts Foundation that has a mission to provide educational support to Australia’s young population. As of 2020, Crown Resort and its partner, Packer Family Foundation, had disbursed more than $105 to assist 330 recipients of the grants (Crown Resorts, 2020). Moreover, Crown has participated in additional initiatives which has seen it contribute over $550,000. The amount was generated through personal contributions by around 1,500 employees, organised benefit concerts, and accommodation charges from 115 rooms offered to bushfire evacuees.
In the challenging environmen...