You are on the Board of Directors for a multinational hotel chain

Over the last 12 months you have seen a decline in room occupancy rates and a decline in operating profits.  Customer complaints have risen by 74% largely due to issues related to the customer service quality and a lack of professionalism. Repeat customers have reduced from 30% to 11%. Your marketing spend has remained steady, set at 15% of the previous year’s operating profit.

For this exercise, you are requested to:

·  Discuss and summarize the potential causes of the deterioration in operating performance and highlight the key causes

·  Create a list of strategic initiatives to improve business performance