Jonson and Scoles

Table of contents:

1) Resources 4

The physical resources 4

The financial resources 4

The human resources 5

Unique resources 6

2) Competences 6

3) Strategic consequences 7

4) Main strength & weaknesses 7

Strengths 7

Weaknesses 7

5) Competitive advantage 7

6) Bibliography 8

1) Resources Camaron Hotel

The physical resources:

The Cameron Hotel has got thirteen floors with 340 bedrooms. It has different room types: one presidential suite, 30 executive suites with street view and 60 executive rooms with a historic court yard view. The other rooms of the hotel are standard business rooms. In general most of the hotel rooms are outdated. All the rooms are air-conditioned and has a lot of facilities which are expected from a 3-star hotel. During World War two the hotel was nearly destroyed therefore it was fully renovated after the war. It was turned into an office building and in the 1960's it became a hotel again. There is one restaurant the “Fragrant Harbour” with 175 seats, one bar named “Highlands”, a cocktail lounge, a coffee shop/boutique which is franchised by Starbucks and two banqueting rooms which are having together 174 seats. The restaurant and banqueting rooms are having enough seats according to the current occupancy percentage of 54%. If the F&B facilities would be used by all hotel guests when there is 100% occupancy and extra walk-ins for the restaurant, these facilities would not be sufficient enough.

The hotel has only two meeting/conference rooms on the second floor. This is not enough when one considers 53% of the guests are business people. There is a parking space nearby for nearly 100 cars and this is also not enough when looking at the amount of hotel rooms. The hotel has a good accessibility and for the guests there is shuttle bus available from and to the airport. Furthermore, there is one fitness centre, laundry facilities, dry cleaning and broadband internet access.

The Financial resources:

Important stakeholders of the Cameron Hotel are the Henderson Land Development Company Limited group and the Henderson Investment Limited group. The yearly capital contribution of the Henderson group of 2006 is about HKD 10 million is used. The cash of the Cameron Hotel is important, because it will show how the company will be able to pay their liabilities. Over the year 2006 there has been an overall decrease in cash of HKD 162.806. There is a relatively high accounts receivable turnover over the year 2006 of 29,41% which means that this percentage of the revenue is not cash on hand. This means that the hotel is collecting their debt quickly and in a good manner, but it also shows that there is less money on hand for reinvesting. Looking at the overall financial status one can conclude that the Cameron Hotel is doing bad business. The hotel stays alive due to the Henderson group and the Tenant. One of the weak points of the Cameron Hotel is that all the assets are leased from the Henderson group, which results into a low value of assets on the Cameron balance. Concluding to the Horwath the main high costs are from: Beverage (84%), Administrative and general (180%), Marketing (96%), Property (77%) and Rent and lease (679%)*.

* = The difference in percentage of the Camaron according to the Horwath.

The costs of employees are high, so this has to be reduced, the banquet staff has the most less productivity per person ( HKD 24.690). The revpar of the Camaron in 2006 is HKD 194 what should be HKD 403 according to Horwath so it is way to low for a hotel in Hong Kong. The retained earnings are in minus for a long time already which means the hotel is bankrupt on paper. The Henderson group and the Tenant keeps the Camaron hotel in Balance.

The Human resources:

The HRM department of the Cameron hotel is organized by the Miramar Group.

The management team of the hotel exists out of: a General manager, an Executive assistant, a Meeting manager, a Housekeeping manager, a Front Office manager, a Conference manager, a Sales &