Potential Merger Essay Example Pdf - Free Essay Example

Sample details Pages: 9 Words: 2686 Downloads: 1 Date added: 2017/06/26 Category Business Essay Type Review Level High school Did you like this example? Introduction In todays fast-paced business environment, mergers have become a common strategic initiative for organisations (Volberda et al., 2011). Mergers are projected to be based on shareholders proposition or creating value for them, however, it is argued that the decision is initiated by the management (Wolfgang, 2008). The motive may be different for firms in different situations. Don’t waste time! Our writers will create an original "Potential Merger Essay Example Pdf" essay for you Create order For some organisations it may be to survive in the industry by combining with a more established player in the industry (McCarthy and Weitzel, 2013), while for others it may be a strategy to compete better by achieving higher growth (Johnson et al., 2014). A recent merger proposition between bookmaking giants Ladbrokes and Coral became the limelight of the public attention (Kleinman, 2015), whereby the various reasons for the merger were highlighted, followed by two-sided opinions about them. On one hand, media updates depict the potential of greater market power (Farrell, 2015), higher financial benefits (Hall, 2015), faster online growth (GalaCoral, 2015), increased international presence (Schram, 2015) and strong position in the regulatory environment (Maidment, 2015); while on the other, analysts criticize the decision by pinpointing the probability of store closures and job losses (Wood, 2015), loss in share price and dividend yield (Head, 2015), unfit skills set for online g rowth (Nimmo, 2015) and uncertainty about decision confirmation (Martin, 2015b). With such mixed viewpoints, Ladbrokes Coral must take appropriate steps to ensure the success of the combined entity both in the short run and long run. Reasons for the Merger Greater Market Power The most important reason behind the merger intention between Ladbrokes and Coral seems to be their aspiration to gain the market leadership position, i.e. they want to create a new entity which would be the largest bookmaker in the UK (Farrell, 2015). The new entity would have a total of 4000 shops (Rojas, 2015) surpassing the current market leader William Hill, which has only 2400 (Aglionby, 2015). Volberda et al. (2011) identify this as the principal reason underpinning most merger cases, whereby the merging organisations strive to achieve greater market power by ensuring that they will have an opportunity to sell more goods or services than their competitors. Bridge and Craven (2015), however, provide a critical review of this strategy saying that it will be a move with an aim to achieve dominance merely in terms of higher number of shops, and further mention that with the two companies merged together, they will have lots of duplicated shops within the same vicinity, which mig ht not be very useful. Another critique about this strategy was that a single company would not be allowed by the CMA regulations to have that many shops, hence the excess shops will be allocated to smaller competitors like PaddyPower and Betfred; that again makes the purpose of this merger in vain (Kleinman, 2015). As a counter-argument to this, the management of Ladbrokes and Coral stated that even if they lose 1000 stores, they would still have 700 more stores than William Hill, hence it would be beneficial for them (Bridge and Craven, 2015). Wood (2015) argues that as the regulatory authorities enforce to close down excess shops, it would also result in many job cuts and that Ladbrokes Coral management should have considered these consequences while discussing the merger proposal. Higher Financial Benefits According to Hall (2015), the combined entity would be valued at ÂÂ £2.3bn, earning about net revenues worth ÂÂ £2.1bn and delivering cost synergies worth ÂÂ £65m per year. However, critics argue that a mere announcement of the merger has resulted in a 9% decline in Ladbrokes share price, which is alarming (FinancialTimes, 2015). Hence the situation at the time of actual merger may be worse. An analyst Greg Johnson considers this to be a smart strategic initiative as the combined entitys revenues and profitability will be higher, which would result in greater marketing budget, thus helping the bookmaking giant be equivalent to the current leader William Hill (Martin, 2015a). Head (2015), on the other hand, views this as a disadvantage mainly for Ladbrokes, because at the time of announcing the merger, it underwent a reduction in the 2015 annual dividend by 66%. With only 2.3% yield of the shares, Ladbrokes investor confidence may further drop as well. The CEO of Ladb rokes offers a counter-argument saying that although this strategy has shown some dividend and revenue losses currently, it would be useful for the business development in the next 900 years (ProQuest, 2015). The combined retail business of Ladbrokes Coral is viewed as a cash engine of the company, which is why they consider this merger as a win-win situation for both organisations (Maidment, 2015). An opportunity for business growth has been identified related to the joint procurement and reduction of central overhead costs which would enhance the companys efficiency, making it financially strong to bear the tax increases (GalaCoral, 2015). Faster Online Growth With the major growth opportunities in the industry being online gaming and digital sportsbetting, the combined entity has a higher potential to enhance its online growth (GalaCoral, 2015) by attracting sports fans and younger gamblers through its tablet and mobile applications (Maidment, 2015). It will also set the drivers to enhance customer experience and increase loyalty though effective multi-channel offers (GalaCoral, 2015). Since both the companies use similar technology platforms and have partnered with outside parties such a Playtech and Scientific Games, it will be easier for integration of the systems and would not cause any disruption to their existing customers (GalaCoral, 2015). Investment banker Jefferies, however considers Coral to be an imperfect fit to merge with Ladbrokes, as another analyst determined that the success of Corals online business is only dependent upon its casino games; hence it lacks the competence to help Ladbrokes enhance its online growth (Nimm o, 2015). Increased International Presence Another reason for the merger is the opportunity to have greater international presence (Schram, 2015). After closing this deal, the combined entity would be able to operate in Italy, Australia, Spain and Belgium, and would have the potential to expand further with lesser limitations (GalaCoral, 2015). As a result of this, international revenues would account for more than 10% stake in the companys total revenues (Kleinman, 2015). The management of Ladbrokes and Coral also believes that they are very complementary businesses, which would enable them to compete better in the UK and internationally (Schram, 2015). Although there might be potential benefits of going international, Martin (2015b) argues that the uncertainty of whether the merger will take place or not, may cast serious doubts on the strategy of Ladbrokes and it may then hinder its plans to grow in other countries later on. Strength to Operate in the Regulatory Environment Maidment (2015) believes one of the reasons behind betting firms mergers is their strategy to be strong enough as an entity to be able to bear higher British tax bills and regulations in the industry. Some analysts view this as a strategy which is not well-planned, because Ladbrokes planned to take over Coral in 1998 with the same intention of better online growth, but the imposed regulations by the government to cease the takeover proposal and notices from the trade and industry secretary about the consequences of hurting the competition, made it discard the proposal (Martin, 2015b). Hence similar hindrances may occur this time around as well if the minute details have not been given enough consideration. Recommendations for Success Digital Strategy Jim Mullens, CEO of Ladbrokes admitted in front of the public about the disappointment from poor digital strategy by Ladbrokes, which made them suffer (ProQuest, 2015). In the digital market, Gala Coral accounts for a strong share of about 8% in the UK, while Ladbrokes lags behind with only 6% (Maidment, 2015). Hence in case of the new entity, the innovative ideas and successful technology from Coral may also be used in order to devise a successful strategy for digital marketing. The Coral Group possesses the leading multi-channel technology (Playtech, 2014), which if combined with that of Ladbrokes, would increase their expertise to such an extent that they will be able to upsurge their multi-channel revenue and customers. Separate Investment Entities Since the declining share price and dividend yield may have an adverse impact on customer confidence, the combined company should still keep the shares of existing shareholders to the entities they prefer, meanwhile transitioning the best case practices in both the entities before the merger takes place. This would help in avoiding any future issues in standardization of processes as has been the case in some merger failure cases (Papathanassis, 2012). Another advantage of this strategic move would be foundation of a recreational scale and improvement in the customers experience (Schram, 2015), whereby they would feel more valued. It would also upkeep the shareholders confidence as they would have discretionary power to hold the shares desired by them based on the experiences of customers. Ensuring High Employee Morale According to media sources, the merger is planned to come into effect legally as a takeover of Coral by Ladbrokes (Farrell, 2015), however, there might be problems arising as a result of this issue at the time of implementation of plans, because research suggests that takeover cases normally prove to worsen the situation for employees in the acquired organisation (Risberg, King and Meglio, 2015). Although there is satisfactory representation from both organisations in the executives list (GalaCoral, 2015), the real cultural problems may occur down the hierarchy. Ladbrokes Coral would, therefore, need to take care that the impression of the acquired firm is not considered in its literal sense, taking example from the successful merger case of Yawata Steel and Fuji Steel to form Nippon Steel, where the employee morale was kept up throughout (Waverman, Comanor and Goto, 2005: 66). The management must, therefore, develop policies according to which the employees of neither organisation are discriminated against to create a healthy work environment. Appointment of Trustworthy and Reliable Executive Members There is a probability that the CEO of HBOS, Andy Hornby would occupy a senior position in the executive board of Ladbrokes Coral (Duncan, 2015). Hornby was accused of pushing the bank into massive failure when it was finally rescued after being taken over by Lloyds bank in 2008 (Inman, 2015). Ladbrokes Coral seems to be waiting for the legal inquiry being published about the HBOS case and that Hornby would be taken on the board if not found guilty. One of the executives in the company suggested that he could be given another chance as he is a good retailer and was probably not well-suited for the banking career (Farrell, 2015). However, critics argue that the bank failed as a result of the reckless lending practices during Hornbys leadership (Aldrick, 2012). Although not being appointed for the main executives list (Duncan, 2015), it is still not fit for Ladbrokes Coral to have Hornby on their panel as it is going to be a huge risk for the company and might hinder its way to achie ve its goals successfully. Even if Hornby was not directly responsible to create the culture of high pressure sales, he was still responsible to not cease it when it came to his notice. Therefore, having experienced personnel with clear and honest work history would be best suited for the executive positions to be filled in for the newly merged company. Conclusion The competitive betting industry poses some amazing opportunities for Ladbrokes Coral, however, the combined entity may be faced with certain threats as well. Therefore, the management must evaluate the benefits of the merger proposition against the criticisms by the analysts to take the necessary actions to ensure the smooth running of the organisation. It may capitalise on Corals remarkable technology to develop its digital marketing strategy and secure stakeholders confidence by keeping the share ownership of the two entities separate. Additionally, it can formulate discrimination-free policies to ensure high morale of the employees in both entities, both before and after the merger, and appoint trustworthy and reliable members for its executive board to lead to a successful future. References Aglionby, J. (2015). Ladbrokes and Coral Confirm Merger. The Financial Times. 24th July. [Online] https://www.ft.com/cms/s/0/6a054918-31cb-11e5-8873-775ba7c2ea3d.html#axzz3olHGUo00 Aldrick, P. (2012). Book Cites Andy Hornby for HBOS Failure. The Telegraph. 9th September. [Online] Available at: https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9531748/Book-cites-Andy-Hornby-for-HBOS-failure.html Bridge, S., and Craven, N. (2015). Merger of Top Bookmakers Ladbrokes and Coral would lead to Huge Local Duplication of Shops all Owned by Same Firm. This is Money. 28th June. [Online] Available at: https://www.thisismoney.co.uk/money/news/article-3141674/Merger-bookmakers-Ladbrokes-Coral-lead-huge-local-duplication-shops-owned-firm.html Duncan, H. (2015). Disgraced Former HBOS Bank Boss Andy Hornby to Land Top Job at Newly-Merged Gambling Giant Ladbrokes Coral. The Daily Mail. 24th July. [Online] Available at: https://www.thisismoney.co.uk/money/markets/article-31724 17/Disgraced-former-bank-boss-Andy-Hornby-handed-job-newly-merged-gambling-giant-Ladbrokes-Coral.html Farrell, S. (2015). Ladbrokes and Coral in Talks to Create UKs Biggest Bookmaker. The Guardian. 23rd June. [Online] Available at: https://www.theguardian.com/business/2015/jun/23/ladbrokes-and-coral-in-talks-to-create-biggest-bookmaker FinancialTimes (2015). Ladbrokes profits slump 44% after Shop Closures. [Online] Available at: https://www.ft.com/fastft/373691/ladbrokes-half-year-profits GalaCoral (2015). Joint Announcement Regarding Proposed Recommended Merger. [Online] Available at: https://www.galacoral.co.uk/~/media/Files/G/Gala-Coral/reports-and-presentations/quarterly-report/pr-24072015.pdf Hall, J. (2015). Ladbrokes Share Price Falls after Confirming ÂÂ £2.3bn Merger with Gala Coral. CityA.M. 24th July. [Online] Available at: https://www.cityam.com/220890/ladbrokes-confirms-23bn-merger-gala-coral Head, R. (2015). Why Playtech PLC is the Jackpot Winner fro m the Ladbrokes PLC-Gala Coral Merger. The Motley Fool. 24th July. [Online] Available at: https://www.fool.co.uk/investing/2015/07/24/why-playtech-plc-is-the-jackpot-winner-from-the-ladbrokes-plc-gala-coral-merger Inman, P. (2015). Former HBOS Boss Andy Hornby to take Charge of Public Company. The Guardian. 23rd July. [Online] Available at: https://www.theguardian.com/business/2015/jul/23/former-hbos-boss-andy-hornby-to-take-charge-of-public-company Johnson, G., Whittington, R., Scholes, K., Angwin, D., and Regner, P. (2014). Exploring Strategy: Text and Cases. Harlow: Pearson Education Limited. Kleinman, M. (2015). Ladbrokes and Coral Agree ÂÂ £2.3bn Merger. Sky News. 24th July. [Online] Available at: https://news.sky.com/story/1524609/ladbrokes-and-coral-agree-2-3bn-merger Maidment, N. (2015). Ladbrokes and Gala Coral Team up for Online Betting Push. Reuters. 24th July. [Online] Available at: https://uk.reuters.com/article/2015/07/24/us-gala-coral-m-a-ladbrokes-id UKKCN0PY0JL20150724 Martin, B. (2015a). DÃÆ'Â ©jÃÆ'Â   vu for Ladbrokes Investors as Bookie Gambles on Mega-Merger. The Telegraph. 27th June. [Online] Available at: https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/11703159/Deja-vu-for-Ladbrokes-investors-as-bookie-gambles-on-mega-merger.html Martin, B. (2015b). Ladbrokes Merger Months in the Making. The Telegraph. 23rd June. [Online] Available at: https://www.telegraph.co.uk/news/predictions/leisure/11694843/Ladbrokes-merger-months-in-the-making.html McCarthy, K.J., and Weitzel, U. (2013). Merger Motives Merger Motives and the Realization of Gains. In: McCarthy, K.J., and Dolfsma, W. (ed.). Understanding Mergers and Acquisitions in the 21st Century, pp. 109-147. London: Palgrave Macmillan. Nimmo, J. (2015). Market Report: Ladbrokes Stumbles as City Doubts Success of its Coral Deal. EveningStandard. 13th August. [Online] Available at: https://www.standard.co.uk/business/market-report-ladbrok es-stumbles-as-city-doubts-success-of-its-coral-deal-a2488616.html Papathanassis, A. (2012). Post-Merger Integration and the Management of Information and Communication Systems: An Analytical Framework and its Application in Tourism. Germany: Springer Science Business Media. Playtech (2014). Playtechs Multi-Channel Solution Revolutionises the Betting Shop Experience. [Online] Available at: https://www.playtech.com/news/latest_news_and_prs/playtech_s_multi-channel_solution_revolutionises_the_betting_shop_experience ProQuest (2015). Ladbrokes Business Review, Proposed Recommended Merger with Coral Group and Proposed Placing Call Final. Fair Disclosure Wire. [Online] Available at: https://goo.gl/Px3LXl Risberg, A., King, D.R., and Meglio, O. (2015). The Routledge Companion to Mergers and Acquisitions. New York: Routledge. Rojas, J.F. (2015). Betting Giants Ladbrokes and Coral Merge to Create UKs Biggest Bookmaker But will it Close Stores and Axe Jobs? Mirror Online. 2 4th July. [Online] Available at: https://www.mirror.co.uk/news/business/betting-giants-ladbrokes-coral-merge-6128993 Schram, B. (2015). Ladbrokes and Gala Coral Agree on ÂÂ £2.3bn Merger to Create Bookmaking Giant. International Business Times. 24th July. [Online] Available at: https://www.ibtimes.co.uk/ladbrokes-gala-coral-agree-2-3bn-merger-create-bookmaking-giant-1512379 Volberda, H.W., Morgan, R.E., Reinmoeller, P., Hitt, M.A., Ireland, R.D., and Hoskisson, R.E. (2011). Strategic Management: Competitiveness and Globalization. Hampshire: Cengage Learning EMEA. Waverman, L., Comanor, W.S., and Goto, A. (2005). Competition Policy in the Global Economy: Modalities for Cooperation. London: Routledge. Wolfgang, K. (2008). Synergies, Shareholder Value and Exchange Ratios in Value-Creating Mergers: Why Shareholders Should Doubt Managements Pre-Merger Promises. Managerial Finance, Vol. 34, No. 4, pp. 252-261. Wood, G. (2015). Coral and Ladbrokes Merger Result of Adapt -or-Die Phase of Digital Age. The Guardian. 23rd June. [Online] Available at: https://www.theguardian.com/sport/blog/2015/jun/23/coral-ladbrokes-merger-result-of-digital-age

The Pros And Cons Of Uniforms In Schools - 845 Words

School uniforms: a debate that has been tossed back and forth for years now. The percentage of schools that necessitate uniforms and the percentage of the ones that do not are approximately equal. This conveys a dispute that is difficult to find a definite solution for, due to the ambiguous negatives and positives being drawn between both arguments. Uniforms being a part of school systems became widespread first after Long Beach, California implemented them into their elementary and middle schools. It is safe to say that since then, schools have become far more lenient with what restrictions students have when it comes to uniforms. However, some others disagree with the policies on uniforms, believing that they obstruct on childrens†¦show more content†¦It creates a unified community that has no economic or social barriers relating to clothing. To empathize the point being made, it should be known that hectoring youth can lead to both physical and emotional stress, depressio n, and in extreme cases, even death. When the threats of bullying are so prominent in a teenager’s life, precautions must be made. Accepting uniforms in a school will help it present itself in a more professional and safe manner. For instance, if someone were to come up to the school requesting entrance wearing clothing previously banned, it would be a cause for suspicion. This could assist schools in being more efficient in the event of a lockdown or emergency. Meanwhile, schools are still being regularly threatened to date; a study states In addition, school uniforms are generally a benefit for parents, economically. With uniforms having the same style every year, albeit with occasional leniencies, there is not much cause for buying new uniforms yearly besides from a child growing. Without a school uniform, teenagers quickly tire of what they wear to school and want to get new clothes around every month. This is due to students wanting to â€Å"stay with the times† and the latest trends. In the logic of the adolescent mind, if you have the latest clothes, then it will boost your reputation and status on the school map, and so a time consuming cycle is forged. This would cost the parents more of their salary that could be better spent onShow MoreRelatedPros and Cons School Uniform1515 Words   |  7 PagesPros and Cons of School Uniforms Trina Warren Liberty University Professor Mink GRST 500/501 June 17, 2013 Abstract The decision for school district to enforce school uniforms has been in existence since the 16th century. School uniforms were originally created for poor children; however, over time, schools saw uniforms as a way to bring students together. There has been debate whether uniforms improve academic success while reducing affiliation of violence. 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Are school administrators or boomers of the American school systems causing students to become Wendys Berrys version of stickers? Having students wear school uniforms have several pros and cons to them, including the costRead MorePros And Cons Of School Uniforms1936 Words   |  8 PagesEnglish 10 CP 27 January 2015 Pros and Cons of School Uniforms In 1994, the school district of Long Beach California was one of the first to enforce school uniforms in the grades Kindergarten through 8th, and crime rates in the district dropped 22% soon after. School attendance also improved after the uniforms were introduced. Although this one statistic shows there are positive outcomes from school uniforms, there is one question that remains: Do school uniforms help or harm the students andRead MorePros And Cons Of School Uniforms712 Words   |  3 PagesAn epidemic among many schools around the United States and around the world is one huge thing. This epidemic among schools is the fact that students have to wear uniforms for their schools. However, some parents and students may disagree with wearing these uniforms. I am one who supports the statement that students should not wear these uniforms for their schools. The next paragraphs will explain the pros and cons of not wearing and wearing school uniforms. I personally think that students shouldn’tRead MoreThe Pros And Cons Of School Uniforms2005 Words   |  9 PagesStates is whether or not public school students should be required to wear uniforms. According to Lisa Flam, author of the article, â€Å"Are School Uniforms Helping or Hindering?† on Today.com, â€Å"Nineteen percent of public school principals reported requiring uniforms in the 2009-2010 school year, up from 12 percent a decade earlier, according to TODAY.† Many people are against the idea of allowing students to dress freely, but students not having to wear uniforms has its benefits. 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Marketing Plan Customer Relationship Management

Question: Discuss about the Essay for Marketing Plan of Customer Relationship Management. Answer: Introduction Marketing plan is an important part of any industry to flourish, increase its goodwill and higher the clientele to increase the profits. In a hotel and tourism industry marketing is an important tool that helps to increase the quality of the business and sets strategies for its development and as a resultant it increases the financial strength of the industry. Hotel industry is considered as the biggest sub-sector of the tourism industry; it is a direct beneficiary of the tourism sector and grows proportionately to the growth of it (Brotherton, 2003). Chosen Organisation: The Roger Smith Hotel, New York RogerSmith hotel is a 250 room family run hotel situated in New York downtown Manhattan that uses social media to make it accessible to guests. It spread its brand name in digital media through social media platform to become popular in New York City. This strategy was done to reach maximum target market and attract a huge number of prospect people.Social media helped and allowed channelizing that was considered important by Roger Smith as it has a people first approach. It is a boutique hotel, offering wifi, internet enabled booking with promotional offers and has won 2015 Social Responsibility Award in US. Market Structure: The market structure analysis helps to evaluate key data, information about a firms competitive environment, position in the industry, customer development, product development leading to market development (Go Pine, 2008). It helps to establish the value drivers which allows to setup metrics that will provide improved terms and increased valuations for the firm. This assessment can be done by doing SWOT (strengths, weaknesses, opportunities, threats) analysis for understanding what RogerSmith hotel offers. This is an audit of the operations, marketing that defines the capability of the brand. This serves as a threshold point for the RogerSmith hotel to understand the journey plan to improve in order to reach the desired state. The hotel leadership and management together with the employees need to understand their contribution towards making the brand a success. PESTLE analysis of the organisation and know the advantages and disadvantages of the company. This helps in knowing where the brand and the organisation is currently standing in the market and the weaknesses it needs to overcome (Francesco Gold, 2007). The US elections are on the way shows that political risk factor will be low, but the republican/democrat ideology may have change in industry or sector. The US economic slowdown has been a wary signal which it needs to ponder as consumer spending will be conservative and restricted. Hotel industry a sub-sector of the tourism industry; is dependent on the business sentiments. Hotel industry has to perform various tasks in order to connect and use promotional tactics to attract the people all around, for this it has to use promotional strategies, marketing skills, know its customers and plan according to the needs of the customers and make its efforts known to them. Socially the sector can benefit from the friends, relatives, business colleagues who can bring in additional business, and repeat footfalls as hotel guests. Legally the compliance for operations and HR laws has been adhered to avoid litigation. However, Bowie Buttle (2007) added that the customer disputes need special attention that has a direct outcome on the hotel brand name. Technology is an enabler and also a great tool for customer interaction making it convenient. The above tool allows understanding of the current market structure, the players at macro level whose direct and indirect association affects the hospitality business and aids in understanding the trend of the market structure. Market structure contains the price/value that has real value and perceived value components. So the RogerSmith hotel value is right service at right time for all customer segments needs evaluation with customers viewpoints that will help to improve the service. Designing the service delivery process which emanates from the vision and mission of the hotel helps to align those components and the pricing paradigm. The price which the customer pays is therefore a measure of the value component which the customer receives (Harrison, 2003). The comparison of the offerings made against the price charged should lead to sellers. This for RogerSmith hotel will be the total number of hotels in a zipcode in New York City, their tariffs, total customer base and service offerings. The aggregate of total number of sellers in the hospitality sector in New York City is the next step to understand the competition intensity. Roger Smith hotel is a good hotel with adequate brand reputation that has too many competitors in NY City. In order to understand operations and delivery, the regulations and compliance needs listing for maintaining the minimum requirement criteria. This has labour laws that is applicable for the employees in the Roger Smith hotel, the establishment of the premises which is approved and authorised by NY police, NY fire department The market structure also needs assessment of the technologies involved currently, cost of implementation and the range of advantages or value adds it can perform. The buyers perspectives about the RogerSmith hotel perception will be surveyed to understand how customers perceive (segmenting them) against the competition. Thus these components allow the market structure dimensions to align the RogerSmith hotel value that needs to be repositioned as per industry trends visible in NewYork City. Figure 2: Market Structure Analysis Competitive Analysis It is necessary for a company to assess the market and the competitors on a periodic basis so as to review their own standing in the market. The competitor analysis should be able to evaluate the strategy of the competitor and predict responses that are competitor moves. Changes in the industry key parameters like RevPAR, occupancy rates, economic condition of the US, that are important guidance for the hotel industry, employment rates, business outlook (Hooley et al. 2008). Applying Porters Industry analysis tools, the Five forces analyses the type of forces which are acting on the firm. Porters five force analysis: RogerSmith hotel, NY The Porters five force analysis shows if the hotel industry is capable of withstanding the challenges and barriers in the external environment that affects the capabilities of an organisation to exist in the competitive environment. Entry of new entrants: [LOW] This is a boutique hotel and niche, with family converting in the property into a hotel group. The industry has dominance is that of the popularly established hotels such as Hilton, Shangri La etc. which are the internationally acknowledged hotels. This makes the entry of new hotel(s) and offering a very competitive service with affordable rates extremely difficult. The establishment cost will be over USD 22-50million to gain entry into an already established industry in NY as there will be additional cost overruns. Bargaining power of customers: [HIGH] The hotel industry is a highly competitive environment the bargaining power of the customer is more with the advent of internet (Knowles, 2007). The rates and availability is knowledge driven and accordingly shapes the customer expectation set. There is range of numerous competitors available in the NY market presents a greater challenge. So demographics, availability of services, and other factors is dependant for a hotel to thrive (Kotler et al. 2006). Hence, if in a particular place if the number of hotels is high that have same services and quality then the bargaining power of the customers will also be high. Threat Substitutes: [MEDIUM] Threat of substitutes in the hotel business as there are home stays, BB (bed and breakfast), service apartments in NY that are changing the landscape of this hospitality business. Establishments such as cottage, BB(bread and breakfast) and inn provide similar or standard services to the customer in reasonable price. There has been a sharp increase in the popularity of these substitutes in the last decade as the investor to invest huge capital required for the establishment and maintenance of high budget hotels. Hence presence of close substitutes makes the market more competitive and reduces profitability of renowned hotels. RIVALRY: [HIGH] The rivalry relates to the direct competition the RogerSmith hotel is facing that has revenues as competition, customer base in the given zipcode. It has competition therefore translates to the occupancy in any given day as it directly relates to the revenues (Buhalis, 2008). CRM is effective along with social media that enables two way communications about the offers, and criticisms of services. The competitor analysis also requires doing a marketing audit before instantiating a change management plan in its operations. Ps: RogerSmith hotel, NY The marketing mix deploys the components like product/service, price, promotion and place to maximise the effect on the target market (consumer segment) (Hyde, 2006). Product: The product for RogerSmith hotel is the hotel stay for a specified amount of time, which is a service offering. The product is positioned in the mind of the customers, though the basic amenities at a price point are being evaluated. Price: The dynamic pricing of RogerSmith hotel for any given date is a new concept that is ecommerce enabled. The aggregate demand of rooms in a given day and its supply influences the prices up and down making it dynamic. Promotion: The offers on the self booking done online are discounted while the loyalty bonus and complementary stays are customary gestures which are seasonal for the RogerSmith hotel. Place: The place is the hotel itself as it is location in Manhattan is bound to attract, business travellers, casual vacationers, from US and abroad. There is process, the manner in which RogerSmith hotel offers the service to the guests that is an integrated internal mix of functions comprising of HRM, finance, IT, marketing which makes the service creation possible. The people are the employees who make it the service creation a reality and can do differentiation in the service creation process (Kotorov, 2006). Physical evidence is the brand existence in the particular location which is Manhattan in NY. In order to compete with the competitors RogerSmith hotel the management needs to drive the as is KPIs key performance indicators to be linked to the PMS (performance management systems). This is a vital step to change the culture and embrace change in the service standards. The quality of service needs to be defined in terms of time taken to produce and evaluated by the customer receiving it making it a 360degree approach (Olsen, 2004). The change in customer centric processes in operationalising the hotel needs a unified binding approach which can be value driven. The use of McKinsey 7S is beneficial for the hotel, as The values mentioned in vision, can be propagated into a systems approach, for each staff at various organisational hierarchy levels. Their style of functioning will reflect in their skills which is an element of the corporate business strategy. Conclusion Thus, market structure and competitor analysis are very important in a business plan. Going forward, there can be CRM to keep the tab on the customer base, analyse it for finding trends. Internal marketing with the employees as spokespersons will enable to engage the customer form a bond on emotional plane (Kotorov, 2006). This will help the customers to engage with the service elements, the RogerSmith hotel staff in order to drive the steady occupancy levels. The plan to promote during lean season and undercut the price in the peak season can compensate the RogerSmith hotel revenues. The overall plan of service audits of RogerSmith hotel, market audits therefore will be spread over three months in order to bring in a gradual change in operations in order to boost the marketing functions. References Bowie, D. Buttle, F. (2007) Hospitality Marketing: An Introduction. 5th ed. Oxford: Elsevier. Brotherton, B. (2003) International Hospitality Industry. 5th ed. 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