Accepting or rejecting business presentation

Introduction: ABC Resort is Barb & Alex Messick’s personal collection of their favorite vacation destinations. Each property is unique and an ideal retreat from New Jersey, North Carolina to Florida. The Wildwood properties are directly on the beach in Wildwood Crest.
The resort however is planning to hold corporate awards ceremony in the coming year. The ceremony could be a success as the resort is located at a very beautiful location. People come and spend their vacations at ABC resort from different parts of the country. Thus the location could be a benefit in hosting the ceremony as the people will enjoy the location.
The people will be staying at the resort. They will be occupying almost 55% of the rooms.
The stay is for 8 days and 7 nights. Another important to be considered is that, the time this award ceremony is held, is the peak time that is people during this time come the most. This is the peak season.
The resort will be providing them with a package of all the breakfasts, all the lunches and 3 dinners in the resort banquet area. For the rest four dinners all the guests will be on their own.
This award ceremony is very essential and significant for the image and the reputation of the resort. The reason is that the resort today is just related with the idea of spending vacations and enjoying with family. However after the award ceremony they can also relate themselves with a corporate environment. Hosting this event will diversify the portfolio of products and services that they are offering at the moment.
However accepting and rejecting the ceremony depends upon the financial analysis which will include the cost benefit analysis.
Conclusion:
To summarize the entire analysis in the gist the resort has two options. Number one either they conduct these awards at their resort or they reject the offer and stick with their tourism business.
The decision is based on the cost analysis that is being conducted for the two options available to them.
The guests for the ceremony are going to occupy about 55% of the hotel which means that from the normal sales will decrease by 55%, but the resort will be get paid for this. As they are serving the lunch and the breakfast for all 8 days, the resort will generate their revenue. Also the reservations will be made before hand and thus they will be recovering their lost sales for the 55%. The expense for the resort will increase as they will have to organize for the function. They will have to make special arrangements for the ceremony which will increase the variable as well as the operational costs.
The average length of stay for every person as mentioned in the information provided is 7 days and the guests will also be staying for 8 days, thus the resort will not incur any increase in their variable costs.
According to the analysis it reveals that the resort should organize the event. The reason is that the variable cost is not increasing and also the operating costs are the same. All extra that they need to do will be to organize the ceremony. This will be beneficial for the image of the resort as they can then diversify their own portfolio of products that they originally provide. Relating to the corporate world will be very beneficial for the resort as they can then hold business meetings and conferences at their resort in future. Thus organizing the ceremony is beneficial for the resort as it is providing more benefits than the cost that is being incurred.
References:
Cost reduction – Get cost saving by reducing manufacturing cost … (n. d.). Retrieved October 29, 2009, from Half Cost Products: www. halfcostproducts. com/