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A Strategic Analysis of the Westin Bayshore Resort & Marina And A STRATEGIC ANALYSIS OF THE WESTIN BAYSHORE RESORT & MARINA AND STARWOOD HOTELS & RESORTS D'Arcy Coon B.A., York University 1992 PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In the Faculty of Business Administration O D'Arcy Coon 2005 SIMON FRASER UNIVERSITY Summer 2005 All rights reserved. This work may not be reproduced in whole or in part, by photocopy or other means, without permission of the author. APPROVAL Name: D'Arcy Coon Degree: Master of Business Administration Title of Project: A Strategic Analysis of the Westin Bayshore Resort & Marina and Starwood Hotels & Resorts. Supervisory Committee: Senior Supervisor Ed Bukszar, Associate Professor Second Reader Neil Abramson, Associate Professor Date Approved: SIMON FRASER UNIVERSITY PARTIAL COPYRIGHT LICENCE The author, whose copyright is declared on the title page of this work, has granted to Simon Fraser University the right to lend this thesis, project or extended essay to users of the Simon Fraser University Library, and to make partial or single copies only for such users or in response to a request from the library of any other university, or other educational institution, on its own behalf or for one of its users. The author has further granted permission to Simon Fraser University to keep or make a digital copy for use in its circulating collection. The author has hrther agreed that permission for multiple copying of this work for scholarly purposes may be granted by either the author or the Dean of Graduate Studies. It is understood that copying or publication of this work for financial gain shall not be allowed without the author's written permission. Permission for public performance, or limited permission for private scholarly use, of any multimedia materials forming part of this work, may have been granted by the author. This information may be found on the separately catalogued multimedia material and in the signed Partial Copyright Licence. The original Partial Copyright Licence attesting to these terms, and signed by this author, may be found in the original bound copy of this work, retained in the Simon Fraser University Archive. W. A. C. Bennett Library Simon Fraser University Burnaby, BC, Canada ABSTRACT This paper will examine a hotel and its relationship with a hotel management company. Chapter one, Markets and Overview describes target markets, revenue streams and market shares of firms. Chapter two, Industry Analysis, includes a discussion of scope, key competitors, five forces of power and key success factors of the firms. Chapter three, named Internal Analysis, discusses the: generic strategies, five forces of power analysis, internal analysis, generic strategies and organizational competencies. This Chapter includes discussion on: value chain analysis, core competency, culture and organizational structures. Lastly a financial analysis of the firms is provided. Chapter four, named Issues, identifies: problems with the management contract structure; absence of management company leverage hotel ownership; organizational structure concerns; and, operational inefficiencies. Chapter five discusses the following recommendations: changes to managed hotel contracts; changes to the organizational structures of the firms; implementing performance incentives; and, converting the hotel into condominiums. DEDICATION To my loving wife Sandra, who has steadfastly supported me through my scholastic journey. Also to my parents Carol and Jimmy Coon who in large part defined who I am today. ACKNOWLEDGEMENTS Special thanks to my wife, Sandra, who has steadfastly stood by me during my two years of study, that were coincidently also our first two years of marriage. Thanks to both my family and friends who provided me with support and encouragement during my MBA school experience. Thanks to my EMBA team Jay Roberts, Helmut Neuper, Soo Loh and Jackie Ka Man Lee, whose encouragement and help made the experience a great one. Thanks to, Ida Crisostomo, Gilles Fraissange, Pam Simey, Emma Fyfe, Carmen Villarin and Brian Mayer, who provided me with sage advice and guidance during my MBA experience. Extra special thanks goes to Mark S. Andrew, who provided me with inspiration and encouragement I needed to complete the program. His support made it possible to complete my MBA. Finally thanks to Ed Bukszar for his time and endless patience. TABLE OF CONTENTS .. Approval ............................................................................................................................ 11 ... Abstract ..............................................................................................................................111 Dedication ......................................................................................................................... iv Acknowledgements ............................................................................................................v Table of Contents .......................................................................................................... vi List of Figures ..................................................................................................................... x List of Tables .............................................................................................................. xi ... Glossary .......................................................................................................................... XIII 1 ProductsIMarkets and Overview of the Firm .......................................................... 1 1.1 Description of Organization .................................................................................. 1 1.2 The Westin Bayshore Resort & Marina Ownership .............................................. 2 1.3 Hotel Management Company ................................................................................ 3 1.4 Hotel Owners versus Hotel Management Companies ........................................... 4 1.5 Focus of Paper ....................................................................................................... 5 1.6 Resort Services ...................................................................................................... 6 1.6.1 Guest Rooms .................................................................................................. 7 1.6.2 Conference Facilities ...................................................................................... 7 1.6.3 Food & Beverage Outlets ............................................................................... 7 1.7 Target Market ........................................................................................................ 8 1.7.1 Guest Rooms ..................................................................................................8 1.7.2 Conference Services .................................................................................... 1 0 1.7.3 Food & Beverage Outlets ........................................................................ 10 1.8 Influences on Market Behaviour ...................................................................11 1.8.1 North American Hotel Market ..................................................................... 1 1.8.2 Greater Vancouver Hotel Industry ............................................................... 12 1.9 Product Differentiation ........................................................................................ 12 1.9.1 Guest Rooms ................................................................................................ 12 1.9.2 Meeting Services .......................................................................................... 13 1.9.3 Food & Beverage ......................................................................................... 13 . 1.9.4 Competitive Placement of Resort ................................................................. 13 1. 10 Offering Portfolio ................................................................................................ 15 1.1 1 The Westin Bayshore Resort & Marina's Associated Revenue Streams ............ 16 1. 1 1.1 Rooms Division ............................................................................................ 16 1. 1 1.2 Conference Services ..................................................................................... 17 1. 1 1 -3 Miscellaneous .........................................................................................17 1.1 1.4 F&B Outlets ................................................................................................. 22 1. 12 Approximate market share .................................................................................. 23 1.12.1 Guest Room Market Share ........................................................................... 23 1.12.2 Conference Service Market Share ................................................................ 23 1 .1 2.3 Food & Beverage Outlet Market Share ........................................................ 24 2 Industry Analysis .....................................................................................................25 2.1 Industry Scope .................................................................................................... -25 2.2 Key Competitors - North America ......................................................................26 2.3 Key Competitors - City of Vancouver ...............................................................
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