Business Analysis: The hotel chain, Astor Lodge and Suites, Inc

955 WordsFeb 22, 20184 Pages
The hotel chain, Astor Lodge and Suites, Inc., operates 250 properties in 10 western and Rocky Mountain states. The company’s customer base primarily comprises business travelers. In addition, the locations of the properties surround airports, large regional shopping centers, and major highways close to suburban industrial sites as well as office complexes. Projections of 2005 fiscal year forecast a fifth consecutive year of a gross loss for the firm. The estimates include an anticipated $422.6 million in company lodging revenues but a net loss of $15.7 million for 2005. As a result, Joseph James, president and CEO of Astor Lodge and Suites, Inc., initiated a challenging goal for executive management to devise a strategy achieving net profits in two years and sustaining positive growth in the future. Definition of the problem As a consequence of the president’s strategy to become profitable in two years, the senior vice president of sales and marketing and the vice president of advertising must formulate a marketing plan that will allow the company to achieve desired goals. This plan must take into consideration market segmentation, continuation of current marketing strategy, and sales promotions. Alternatives and Uncertainties The firm has four major alternatives; each proposed alternative can coincide with another alternative. 1. To decide how much of the marketing and advertising expenditures will be utilized to expand occupancy of family and leisure vacationers 2. To

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