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Hospitality commercial sector

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Hospitality commercial sector page 1
Hospitality commercial sector page 2
Hospitality commercial sector page 3
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Hospitality commercial sector


Task 1 1

The scale of outlets 1

The scope and diversity of service sector 1

Task 2

Organizational structure 3

Organization chart for the Le Meridian hotel 3

Organization chart for small hotel 7

Task 3 8

Michelin rating system 8

AA rating system 9

General meaning of rating by stars 9

Red star awards 10

Diamonds 13

Tick 14

Task 4 15

Marketing 15

Financial planning 15

Human resources 16

Technology 16

Bibliography 17

Commercial Sector Assignment

Task 1

The scale of outlets

Restaurants are organized into groups in chains or ffranchise organizations or stand alone as independents. Also they can be grouped in companies and different organizations.

Private company- a type of company who offers its shares to the public? All companies that are not public are private companies. Private company tends to be used for smaller businesses.

Public limited company (PLC) – a type of limited company whose shares may be offered for the sale to the public. It is similar to a corporation and it is often more flexible from oownership, suitable for smaller companies with a limited number of owners.

Chain outlets- are a range of retail outlets which share a brand and central management and selling the same merchandise, usually with standardised business methods and practices. Such stores may bbe branches owned by one company or franchises owned by local individuals or firms and operated under contract with the parent corporation. Features common to all chains are centralised marketing and purchasing, which often result in economies of scale, meaning lower costs and presumably higher profits.

E.g. hotel chain- a group of hotels managed together under a business arrangement known as franchising.

International -an international organization, or more formally intergovernmental organization (IGO), is an organization whose members are sovereign states, incorporated under the act is exempt from taxation. Non-governmental organizations- (NGOs) are private organizations that can also be international in scope. Generally and correctly used, however, the term „international organization“ is reserved for intergovernmental organizations only. Membership of organizations (global organizations) is oopen to all the nations of the world.

Group- a company is a member of the same group as another if it is the subsidiary of the other or both are subsidiaries of the same corporate body, or each of them is controlled by the same person. Two companies in the same group are called related companies.

The scope and diversity of commercial sector

The scope of the commercial sector of the hospitality industry includes:

Hotels, restaurants, fast food outlets, takeaways, motels, ppubs, guest houses.

All these outlets relates to relaxation, holidays, eating out and drinking.

The table on this page identifies and explains the products and services of 6 hospitality commercial sector outlets.


Products &services

Hotels The products of hotels are: accommodation, food & drink. Hotels provide a huge range of services such as: room service, leisure facilities, C&B, restaurants, audio visual services, secretarial services, computer, transportation, medical, laundry service, concierge, VIP assistance, currency exchange, wake up etc.

Restaurants The product of restaurants is food and drinks. The service includes its preparation and how it will be served. These outlets also can offer the reservation services, events organizing, audio visual facilities. Restaurants are organized in chains or franchise organization or stand alone as independents.

Pubs, Bars, Clubs The product of these outlets is food & drink. The service is simple & common. The ownership is similar to a restaurant. The property can be located in different places and ranges in size from local pubs to big nightclubs. They provide the social environment, entertainment, screens, life music, etc.


Guest Houses



Events Catering A casino is a facility that accommodates certain types of gambling activities. They are placed near or combined with hotels, rrestaurants, retail shopping, cruise ships and other vacation attractions. Some casinos are known for hosting live entertainment events, such as concerts and sporting events. These outlets are providing food & drink. The size and ownership of these outlets varies from big companies and chains to independents outlets.

The basic product of these outlets is accommodation and simplified food & drink. The service known as highly personalized. These outlets are not relevant to the big chains or companies as their size is not very big, usually they are independent or franchised.

Events catering serves and provides food & drink with waiting staff. This service typically provided at banquets, conventions and weddings. The catering is covered by two different groups: independent caterers and companies with a catering business on the side. The events catering company or specialist is expected to know not just food preparation but how to make an event attractive.

Task 2

Organizational structure

Hotel properties range in size from tiny to huge. Most properties perform basically the same functions, but the way they work them varies with the property size. Hotel managers are responsible for keeping the operation of their establishments efficient and profitable. In a small hotel, motel, oor inn with a limited staff, the manager may oversee all aspects of operations. However, large hotels may employ hundreds of workers, and the general manager is usually aided by a number of assistant managers assigned to the various departments of the operation. In hotels of every size, managerial duties vary significantly by job title. Assistant managers help run the day-to-day operations of the hotel. In large hotels they may be responsible for activities such as personnel, accounting, office administration, marketing and sales, purchasing, security, maintenance, and pool, spa, or recreational facilities. In smaller hotels, these duties may be combined into one position. Some hotels allow an assistant manager to make decisions regarding hotel guest charges when a manager is unavailable.

Organization chart for the Le Meridien Hotel

Le Meridien Hotels is owned by the Starwoods company and in each hotel of this company is employed a General Manager under whom an Executive Assistant Manager assumes responsibility for day-to-day operations. The General Manager is responsible- with a Director of Sales & Marketing, Financial controller, Executive Chef who is responsible to F+B Manager and Human Resources manager.

The importance of Sales & Marketing department is to

increase when there is an over supply of rooms in a market. The Director of sales & marketing is analyzing market research done by others; proactively develop the business through local and international contacts across all market segments, to manage the sales team. Sales manager and sales persons are responsible for finding sales leads and following up on them with personal calls and booking functions.

Executive Chef is in charge of food preparation and production and of all the personnel involved iin the task. He/she is assisted by sous chef, chef de partes’ and is responsible to F+B manager.

F+B manager is responsible for quality control of food, overall organization structure, budget and personnel, ensuring a sensational dining experience for guests of the hotel. Assistant F+B manager is responsible for administration, distribution and technical f+b function.

An accounting department is headed by a Financial Controller and consist of a several managers. Their function involves: accounts receivable and financial reporting and control, ppreparing operational systems, conducting special cost studies, overseeing the hotel’s cost control systems.

The Human resources manager is managing people in their particular section: recruitment, interviewing, training, advice and conflicts dealing.

Under an Executive Assistant Manager’s responsibility are Executive Housekeeper, Front OOffice Manager and Chef Engineer.

Executive housekeeper is responsible for the overall appearance of the hotel. Typical duties include the following: Supervising, training and assisting the other housekeepers in deep cleaning, laundering clothes and household linens, cooking and servicing meals, running errands, changing bed and household linens, keeping the household supplies stocked, polishing the silver, caring for household pets and general household projects.

Chef Engineer supervises the engineering staff. Together they are responsible for operating the hotel’s heating and air conditioning, for lightning, transportation systems, and mechanical equipment.

The Front Office manager controls the front desk, and it is the manager’s duty to work in collaboration with reservations to ensure that occupancy and revenue are maximized. He or she is also responsible for sstaff rosters, and the effective use of front office staff.

The Assistant Front Office manager’s role is to guarantee the smooth operation of the front desk. He or she handles any guest’s complaints, and taking care of VIP guests.

The Reception Manager has responsibility for allocating rooms for groups, takes charge of the actual arrival and coordinates the whole process while keeping all other relevant department informed.

The Reservations manager is in charge of the section and ensures that staff is operating eeffectively and efficiently. He or she also ensures that the hotel operates with a maximum occupancy and determines the levels of overbooking each night.

The duties of Chief Concierge includes: control of the concierge staff, acting as a centre for information for internal and external facilities and services, the control of messages and mail delivery, the booking of external tickets, security.

Duty Manager is responsible for maximising service, satisfaction, and repeat business, understanding of laws, responsible for monitoring and maintaining operational and health and safety aspects of the business.

Night manager responsibility is overseeing hotel operations, ensuring an excellent reception service is provided to the customers, also to be responsible for the security of the premises during the shift and to be on call in case of an emergency.

Switchboard supervisor and staff handle all incoming calls, looks after in-house paging system for staff and management operates the public address system.

Organization chart for small Hotel

It is very important to note that a small property have a functional areas, not a departments.

The general manager, for example, has overall responsibility for the operation of the hotel. Within guidelines established by the owners of the hotel or executives of the hotel chain, the general manager ssets room rates, allocates funds to departments, approves expenditures, and establishes standards for service to guests, decor, housekeeping, food quality, and banquet operations.

Housekeeper ensures that guest rooms, and public areas are clean, orderly, and well maintained. They also train, schedule, and supervise the work of cleaners, inspect rooms, and order cleaning supplies.

Front office manager coordinates reservations and room assignments as well as train and direct the hotel’s front desk staff. They ensure that guests are treated courteously, complaints and problems are resolved, and requests for special services are carried out. Front office managers often have authorization to adjust charges posted on a customer’s bill.

Food and beverage manager direct the food service operations of hotels. They oversee the hotels’ restaurants, cocktail lounges, and banquet facilities. These managers also supervise food and beverage preparation and service workers, plan menus, set schedules, estimate costs, and deal with food suppliers.

Head chef organises and leads the restaurant and caters for functions, preparing food and doing basic cooking, and is also responsible for maintaining high standards of hygiene, handling deliveries and stock rotation.

The restaurant is run by the Restaurant manager who directly supervises all employees (bar stuff, waiting staff).

The duties of Head Receptionist is to pprovide an efficient secretarial and administrative service, be the first point of contact for all customer issues in the hotel, to be familiar with the operating budget and budgetary systems, participate in the marketing and promotion of the hotel, help to organise and manage events and sales of the products and services, receive incoming calls and route as required, provide secretarial support to the Management.

Task 3

Classification systems

Michelin Rating System

The MICHELIN® Guide, whose prestigious rating system is internationally recognized as the height of culinary success, A comfort rating: levels of comfort are rated using one to five forks and spoons ( ) to ( ) for restaurants and one to five pavilions for hotels ( ) to ( ). Those symbols only judge the comfort of the establishment. They are: the furnishings of the establishment, the service, the cleanliness and upkeep of the surroundings.

Special distinctions for certain establishments: these include stars for the very best restaurants ( to ), Bib Gourmand ( ) and Bib Hotels ( ) symbols for the best moderately priced food or accommodation. Red forks and spoons or red pavilions ( to ) are for especially pleasant establishments. The stars

and the Bib Gourmand symbols judge only „what’s on the plate,“ meaning the quality of products, the mastering of flavours, the mastering of cooking, the creativity of NEW YORK.

The MICHELIN® Guide, whose prestigious rating system is internationally recognized as the height of culinary success, is already published in 12 editions covering 20 European countries. Its offers a broad selection of hotels and restaurants in each price and comfort category, taking into account each country’s local environment. This rating is unique aand consistent across all countries covered by the MICHELIN® Guide. It is expressed in two ways:

• A comfort rating: levels of comfort are rated using one to five forks and spoons ( ) to ( ) for restaurants and one to five pavilions for hotels ( ) to ( ). Those symbols only judge the comfort of the establishment. They are: the furnishings of the establishment, the service, the cleanliness and upkeep of the surroundings.

• Special distinctions for certain establishments: tthese include stars for the very best restaurants ( to ), Bib Gourmand ( ) and Bib Hotels ( ) symbols for the best moderately priced food or accommodation. Red forks and spoons or red pavilions ( to ) are ffor especially pleasant establishments. The stars and the Bib Gourmand symbols judge only „what’s on the plate,“ meaning the quality of products, the mastering of flavours, the mastering of cooking, the creativity of the chef and his team, the value for money and the consistency of what it offers to its customers both throughout the menu and the year.

Certain restaurants deserve to be brought to the reader’s attention for the particularity fine quality of their cooking. These establishments are identified by Michelin stars, which are awarded for the standard of meals served. As Michelin often says, „The stars are in the plate.“

The star ratings are as follows:

• One star ( ) indicates „a very good restaurant in its category,“ aa good place to stop on your journey.

• Two stars ( ) denote „excellent cooking, worth a detour,“ with specialties and wines of first-class quality.

• Three stars reward ( ) „exceptional cuisine, worth a special journey,“ where diners eat extremely well, sometimes superbly. The wine list features generally outstanding vintages, and the surroundings and service are part of this unique experience, which is priced accordingly.

• The chef and his team, the value for money and the consistency of what it offers tto its customers both throughout the menu and the year.

Since this breakthrough in travel technology, the Michelin Group has been dedicated to providing unbiased, accurate, clear and easy-to-understand information for the travelling customer. Michelin as the most respected arbiter of fine dining. With their unparalleled commitment to quality, Michelin publishes close to 20 million maps, atlases, travel guides and hotel and restaurant guides in more than 70 countries worldwide every year.

AA rating system (British System)

This system focuses on a consumer’s perspective on accommodation properties. The objective was to introduce a classification system easily understood by the consumer. This system is part of the description of properties seen in travel books. The American version is the AAA system. The AA Rosette Awards are given to UK restaurants annually which achieve the highest standards in food quality. Many Rosette Awards are given to restaurants within hotels, or increasingly to restaurants which provide rooms. The awards are recognised as prestigious by leading chefs, a sure sign that they hint at fine dining excellence

General meaning of rating by stars

A star is a symbol used for classification purposes. In particular, a set of one to five stars is employed to categorize hhotels. Although there have been numerous attempts at unifying the classification scheme so that it becomes an internationally recognized and reliable standard, huge differences exist as far as the quality of the accommodation and the food within one category of hotel is concerned, sometimes even in the ...

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