40NL Creativity assignment year 3

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Invest in Innovation

As is apparent from the hotel intel provided to you by Ms. Jandal, the owners have under-invested in the property. This may compromise the competitive position of the hotel. In this assignment, you are asked to prepare two investment proposals.

Situation

You have been running the hotel for some years now. You are familiar with its qualities, but also with its shortcomings. Where does the hotel need an extra push? What observations or opportunities - both inside and outside your hotel - do you want to act upon? Now is the time to decide on innovation and invest in the future.

Goal

Elevate the hotel to the next level in such a way that the investment pays off.

Task, deliverable

You are required to draw up an Investment Proposal, based on an innovation - either in services, operations, sustainability, or in the actual product (the physical property). Investors typically like it if they have something to choose from, and the Bergmans also expect a “Plan B”: an alternative investment, and the reasons for you proposing plan A over B.

Assessed elements

• Is the need explained, demonstrated?
• Does the innovation show originality? Does it build on new trends and developments?
• Is Plan B also a plausible investment, and how solid is your suggestion that Plan A should be prioritized to plan B?
• Substantiation of the amounts (ballpark); for Plan B you can be slightly less critical than for plan A, but make sure the family gets an overall idea of how A and B compare in financial terms.
• Last but most certainly not least: what if the family makes the investment? “Show them the money!”, including the impact on operating and financial results

Handing in

Hand in your material by uploading it in the right folder in the Capstone Course in LMS.

• A description of the observations and opportunities that lead to the innovation to invest. Consider e.g., our core courses at BUas. Is it your priority to invest in marketing? Or in hotel staff somehow (OB, Operations Management)? Systems (MIS)? Sustainability (BL&E)? Guest experience? Product innovation?
• Provide “ballpark” figures for the amounts of money involved. Don’t go too much in-depth here, nobody expects you to ask companies for quotes for how much it would cost to buy new dustbins 😉. But say you propose to do some kind of upgrade of the guest rooms, we do expect you to give us an indication of how much such an investment would come down to.
• The impact on depreciation and hotel profit in the future 5 years.

Additional information

• Key metrics
• Operating review, all revenues

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