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  • Subject Name : Management

Project Management, Leadership and Skills: Planning and Control

Executive Summary of Yang Sang Oriental

Yang Sang Oriental has offered the best services in China, Japan, India and other oversea countries. It is located in the grade second building in the heart of Manchester. The company has striven itself to provide the best services to its regional and international clients. The estimates from the reports reveal that the hotel is expanded in a seven-storied building with bars, saloons and green launches. The boutique hotel provides personalized menus starting from the Japan silk duets to pillows and bathroom products. This approach has helped the hotel to be considered as one of the best hotels in both regional and international tourists. During that period the organization committee if would have analyzed the funds they could have saved their organization from putting it the hands in the liquidators. The company due to economic crises was closed in the year 2009.

It is the same year the company began its services for world tourist. Within the 8 months of the company, it experienced huge loss as a result they gave them the company to the liquidator. The company within a short period experienced good as well as a bad time. It could have survived in the market if there would have been no economic slowdown. If everything would have been a place, it would have gained huge profits and within a year and would have even started its branch in some other city. There is no doubt the company has received customer satisfaction from the clients and has been rated at number one hotel in Manchester. Despite it could not survive for a long period in recession. In this report, a project plan is created so that the acquirer can take the company out of the losses. To create the project plan, the company’s performance measurement s done to identify where it was lacking. Along with it, stakeholder analysis is also performed besides some risks were also identified. Resources that would be utilized by the organization along with the financial budgeting for the new hotel is presented. Communication strategies are also described to improve marketing style adopted by Yang Sang oriental. At last, the findings of the report were concluded.



Project objectives.

Performance Measurement/ Management of quality.

Stakeholder analysis.



Project Plan..

Resources to be used including project budget

Constraints and Risks.

Competition in the market

Travel permit restrictions.

Capital availability.

Contaminated product

Communications to be used..



Introduction to Yang Sang Oriental

The report aims at identifying planning problems that Yang sang hotels have experienced due to which the hotel was closed in the year 2009. It suggests some project management technique which the company might have taken to overcome the economic crises in Manchester and become one of the most favourable hotels of customers in the entire city. This project aims to understand why the company collapsed and what should be the new business plan that must have been used by them to mitigate the reasons for the downfall.

This report contains a new business plan that the acquired company will take to improve the hotel's condition and make it a profitable organization. The biggest problem that was identified through the analysis of yang Sang hotel was no or fewer consumers in the hotel. The impact of the economic recession was severe in the hotel industry because it was found that the company was serving only 60 per cent of the consumers. Since it was a recession time therefore people were not willing to pay the complete amount. Most of them were using the facilities on a discount. It is because of the customer's behaviour to take the services changed. They are now restricting their financial spending on tourism (Akbar and Tracogna 2018). The primary reason for the customers were job security and future obligations that they have to complete.

It is during this period customer go and purchase cheaper products. They started utilizing cheaper accommodation rather than using a five star one. It is due to these reasons the company had to face the loss of $7 billion. The company could have mitigated the problems by using some techniques but the loss was so high that the owner decided to sell the company to liquidator. The new liquidator needs to understand the importance of project management to maintain sustainable global operations in the market to provide best services to its customers and improve the condition of the hotel does not have to bounce back. The liquidator started with changing the name of the hotel. Yang Sang Oriental would be launched in the market as Roomzzz Manchester.

It also provides detailed performance measurement of the company along with stakeholder analysis. It describes resources used in the project and risks associated with the hotel. It further discusses the communication strategies that must be used by the hotel to generate more revenue. At last, it concludes the findings in the conclusion section of the report. 

Project objectives

The objective of this project is to create a business plan which would help the company to recover from the recession that is to find a formula which the Yang Sang Hotel might have taken to survive global recession (Lin et al. 2017). Roomzzz current goal is to reach the break-even so, point so that the liquidator receives the investment it has done on the hotel.

 Performance Measurement/ Management of Quality

There are different metrics which would be used for measuring the performance and the quality of services given to the customers by Yang Sang Oriental. Based on the revenue per available room for the hotel, it was not performing as per the expectation. The revenue percentage was very low in comparison to what it should have been to even stay on the breakeven condition. The gross operating profit of the hotel was also not as per the expectation. The rate track tariffs of the hotel were from £179 - £569 per night. These tariffs were not enough to earn revenue. The market penetration index was good but not sufficient. Only 60 per cent of the consumers were present in the hotel this states that the company failed in occupying a large number of customers. The revenue generation index was found to state the loss incurred.

The company despite being in the good state was not able to generate the revenue because the 60 per cent customer who was residing in the hotel out of the 50 per cent were taking the advantage of the cut in price due to the economic recession and rest 50 per cent of them were paying the exact amount. The adjusted revenue per available room was measured to analyze the finical condition of the hotel. It was found that the financial condition of the hotel was in deteriorating phase (Pnevmatikoudi and Stavrinoudis 2016). It was also identified that opening of the business during the economic downturn and converting the paper mill into a hotel was not good. This states that the business idea of the investors was good but the execution of the business plan was not. The major reason for the project failure was schedule overrun, lowering profit and low performance of the hotel in the market. Despite providing a high quality of the services by the staff members still, the hotel failed to generate revenue. One of the reasons for schedule overrun was that most of the things were delayed or on the critical path.

Stakeholder Analysis

An organization have internal and external stakeholders that help in analyzing the situation of the organization. Here are some of them which will help you know what were they feeling during the economic fall and how the hotel could have planned strategies to increase their revenue percentage in the market.


Customers are the most important external stakeholder of the organization. The impact of the recession on customers was so high that they decided to stop their travel expenses for a while till their financial condition become stable again. The company instead of offering them discounts on the accommodation needs to choose strategies to bundle the price rate Yang sang manager must bundle the price of the room accommodating in such a way that they get attracted to the disguise rates. The hotel manager must start marketing about its room rate in the market stating that hotel is offering two nights stay free at the premise or they can even make customers aware about additional services like a free spa treatment, free high broadband facilities and so on. Bundling makes it difficult for customers to analyze the actual price (Jin et al. 2016). It was observed in research that about 40 per cent of the hotels used bundling strategies to survive in the economic downturn. But there is an issue with this technique. The manager to make the bundling approach effective need to analyze the needs and demands of the customer and then find out ways by which the hotel can provide those services most profitably. It is one of the best strategies on which the Yang Sang must have worked to increase business.


Employees are another important stakeholder of an organization. They are the one who put their efforts in running the organization well. In the hotel industry, it is the exceptional services of the employees that attract and allure the customer towards the hotel. The reviews collected from the reports stated that the employees of the Yang sang hotel was good. The customers were satisfied with the services provided by them. Despite their hard work, the employees of the organization were made redundant (Baernholdt et al. 2018). It was because the hotel was not able to pay compensation to the employees for the services they offered. The financial condition of the hotel was worse. It was not able to get the room rates that they were supposed to earn from. The company thought the only option is to start cross-cutting. The very first area which they found were of the employees and this is why they laid off 30 employees from the hotel due to the economic recession.

Project Plan

The company can overcome the slowdown period by adopting cross-cutting methods. It is one of the best measures which the hotel chain can adopt. Roomzzz if start cutting its cost and invest in the growth. It would recover from the loss incurred in the past few months. The company need to cut the cost but simultaneously improve its efficiency. Laying off employees from the hotel seems to be the easiest task by the managers but it would have severe consequences in service and operations (Bochanova and Vasyliuk 2020). Hotel instead of focusing on its employees must focus on efficiencies. It is because the time has come when there is a requirement to put the efficiencies for long term impact. Yang Sang hotel has 48 individually designed rooms. A small shift via connectivity and automation will help a hotel in multiplying revenue. Let us take the example of energy efficiency. By employing artificial intelligence in the rooms of the hotel can analyze the occupancy pattern of the guest room and help in identifying how long will it take to heat or cool the room. The savings done in a single room when multiplied with all the rooms present in the hotel will become a hefty amount. Things that look like a small saving can reduce the hotel's energy consumption up to 25- 30 per cent. The biggest mistake of Yang Sang was it did not try to increase its efficiency by fixing things which require assistance rather it kept on tinkering on things which do not require attention.

Here is some advice which the investors must think of before starting a plan for establishing a hotel again.

  • Began with a plan

All business starts with a plan and thus there must be a solid plan for taking the hotel to recover from the recession.

  • Choose an identity for the hotel

Decide the type of hotel and create a logo according to the basis of it. So that people start recognizing the hotel based on the identity presented in front of the customers.

  • Form business status for your hotel

Consumers today are facilitated by the status and thus the hotel needs to develop status in the tourism market.

  • Secure funds for a bad time

Securing funds for bad time is necessary otherwise the company will fail to operate for long and will have to face the same issue that Yang Sang oriental has faced (Dzhandzhugazova et al. 2016).

  • Hire and train staff

Staff play a very important role and thus they need to be properly trained so that they give the best service to the customers.

  • Create a hotel marketing plan

To make your new hotel famous it is very important to carry out a hotel marketing plan to attract maximum customers.

Here is a small project plan on which the company should work to survive the recession.

Project undertakings

Month 1


Month 3

Month 4

Month 5







Month 9

Month 10



Competitor analysis


PESTLE analysis


Consumer/stakeholder analysis


Risk analysis


Execution or implementation of the plan


Resources to Be Used Including Project Budget

The hotel must use API – first technology to integrate all new technologies. It would help the hotel to get all the new technology integrated without paying the additional charge. The hotel will be able to integrate the new technology at the same cost it would take to improve the PMS system would be used for getting a new tech online. These technologies will improve efficiencies and improve the experience of the hotels guest. Apart from the technological resources, there would be a requirement of human resources. Human resources play a very important role in managing the entire operations of the hotel. The other resources include tangible and non-tangible items like beds, cupboards, crockery, mirror, shampoo bottles and so on. The non-tangible resource includes the budget for starting a hotel. The project budget for the hotel was 4 million. Yang sang was started with £4 million but it experienced a loss. Thus for a new hotel, the limit should be £8 million (Kwon and Kang 2019). It is low form the initial one because everything in the hotel is step up already the company would have to hire new staff, new technology and new strategies for attracting people.

The budget cash flow of a five-star hotel ( In European Dollars)

Cash flow

Net cash required


Opening balance required





Cash outflow

Cash for outflow required


Department cost required


Other overhead required


Total payment of the operations


Net cash available for other payments required


Other payments required


Closing balance required


Constraints and Risks

Here are different risk and constraints which the hotel industry must be aware of.

Competition in The Market

The biggest risk for the company is the global market. The market is full of competitors providing the same services as provided by the hotel. To compete with them and attract the client towards is the biggest risk (Baek et al. 2019). It is because it may happen that the client does not found anything attractive or is tempted by the policies of others in such cases the hotel would lose the potential customers. Yang Sang Oriental faced both the issues and it is due to this reason the company was providing services to only 60 per cent of the consumers.

Travel Permit Restrictions

Apart from the competition another important factor or risk constraint is travel permits. No doubt in the past few years the people were able to travel internationally but due to security reasons many of the countries had made the travel permit (McCartney et al. 2018). It is due to this reason the people are unable to travel to the destination they have planned for. It decreases the potential customers of the hotel.

Capital Availability

Capital provides liquidity for assets and development. The capital invested by Gerry Yeung was £4 million, it was a very huge amount and this is why the company was expecting to get the return of the investment within the first few months but due to the economic recession despite providing luxurious services to the customer hotel was closed within 8 months of its launch (Young and Pagliari 2017). 

Contaminated Product

Another risk identified is contamination in the food delivered to the customers (Rebouças et al. 2017). It may happen that some of the employees of the organization to order to take some revenge to provide low quality food so that the customers dislike it and never try to attempt to return to the hotel for seeking accommodation. 

Communications to Be Used

At each step of the organization, communication is important. It may start at the first visual contact of the visitor to the brand through a website or marketing text displayed in the form of pamphlets. It is even present in the restaurant menu, building design, music and fragrance and so on. Communication has no dimensions, it is something which is fragile and can have both negative and positive impact (Verma and Verma 2017). Brands which are unable to use communication strategy are the ones who fail in attracting the potential clients and this is why they face loss. Hotels must, therefore, predetermine their action both for internal and external communication.

Internal communication generally takes place between employee and manager. Setting up new strategies for launching the hotel in the market requires coordination between all the people who are involved. The instructions given to all the people involved in the work must be relevant. The managers of the organization must communicate what are they planning and how they are going to achieve the goals that they have set. Hiding things from employees is not a good option. They have the right to known what changes are being made. Apart from the internal communication, the hotel managers must use the multimedia for marketing their strategies (Chaudhary 2019). The organization can capture the customers by running add on the search engines and popular sites visited by the people. The organization must pay attention and start online booking on the platforms like book table, online table and so on.

Besides the opening platforms, there are other social media sites as well like Facebook. The organization must do the same for promoting spa and other similar facilities among the people. The best way to attract customer during economic stress is to niche the market and start targeting a particular group according to the geographical area. Hotel marketing is very important and it becomes more important during the economic downturn. It is because these marketing techniques help the hotel to connect with the ideal customers. The social media and marketing tools are the best source for communicating about the hotel to the customers. It is with the help of these the hotel can talk about its brand identity with thousands and hundreds of people.

To create a communication strategy for a new hotel is difficult. It is because the communication strategy is full of challenges that the organization has to deal with. It can be handled by finding out a solution to improve the result of the hotel by organizing things better. In case if there is a requirement to train the staff members of the hotel then they must be trained so that they can communicate with the customers as well as colleagues properly (Clow 2016). They are the property essence as they put their hard work to upgrade the guests feeling of authenticity and luxury. Since the company is going to be launched in the market again under the name Roomzzz. The authority member must design the logo and tag line to determine the design-related actions. It is the logo and trademark symbol which communicate its values, services, culture and level of hospitality that would be provided to the customers.

Conclusion on Yang Sang Oriental

It can be concluded from the above findings that Yang Sang Oriental did not flourish in the market for long because it was not prepared for the risks that other hotels were already experiencing. The lack of knowledge in the field resulted in the loss incurred. The company could have resisted the economic downturn if they would have taken care of some points and started increasing the operating efficiency instead of laying off employees form the hotel. The biggest mistake of the hotel was that it was not able to strategies its pricing policy moreover it was not able to target a niche market If the company would have worked upon these recommendations than it would have been expanding its business in the other cities. It was also found that the company does not even have the technologies which could have saved it from the increase in energy consumption and other related stuff.

Its marketing strategy of the company was also not that appealing. It could have used social media to market about the company. It was observed from the case study that people who have visited the luxurious hotel were satisfied with the services provided in the hotel. It was found from the magazines and trip advisors that the yang sang hotel was the best hotel in Manchester. To overcome the recession and economic downturn the company decided to hand it over to the liquidator who analyses the performance of the hotel and created the business plan for an entirely new brand named Roomzzz.

References for Yang Sang Oriental

Akbar, Y.H. and Tracogna, A. 2018. The sharing economy and the future of the hotel industry: Transaction cost theory and platform economics. International Journal of Hospitality Management, 71, pp.91-101.

Baek U., Sim, Y. and Lee, S.K., 2019. Analysis of Hierarchical Competition Structure and Pricing Strategy in the Hotel Industry. Journal of Asian Finance, Economics and Business, 6(4), pp.179-187.

Baernholdt, M., Dunton, N., Hughes, R.G., Stone, P.W. and White, K.M. 2018. Quality measures: a stakeholder analysis. Journal of Nursing Care Quality, 33(2), pp.149-156.

Bochanova, I. and Vasyliuk, A., 2020, April. Project of Hotel Information Management System. In Computational linguistics and intelligent systems: proceedings of the 4th International conference (2), pp. 156-162.

Chaudhary, D. 2019. Digital Marketing Tactics & Strategies for Hotel Industry-To Convert Third-Party Business to Direct Channel (Doctoral dissertation).

 Clow, K.E., 2016. Integrated advertising, promotion, and marketing communications. India: Pearson Education India.

Dzhandzhugazova, E.A., Kosheleva, A.I., Gareev, R.R., Nikolskaya, E.Y. and Bondarenko, A.P. 2016. Business administration in the hotel industry: problems and solutions (by the example of the Russian Federation). International Journal of Applied Business and Economic Research, 14(14), pp.651-660.

Jin, J., Ji, P. and Gu, R. 2016. Identifying comparative customer requirements from product online reviews for competitor analysis. Engineering Applications of Artificial Intelligence, 49, pp.61-73.

Kwon, H. and Kang, C.W. 2019. Improving project budget estimation accuracy and precision by analyzing reserves for both identified and unidentified risks. Project Management Journal, 50(1), pp.86-100.

Lin, P.M., Kim, Y., Qiu, H. and Ren, L., 2017. Experiential learning in hospitality education through a service-learning project. Journal of Hospitality & Tourism Education, 29(2), pp.71-81.

McCartney, G. and Pao Cheng Pek, R. 2018. An examination of Sina Weibo travel blogs’ influence on sentiment towards hotel accommodation in Macao. Journal of China tourism research, 14(2), pp.146-157.

Pnevmatikoudi, K. and Stavrinoudis, T. 2016. Classification of hotel performance measurement indicators presented in international scientific research. European Journal of Tourism Research, 12, pp.82-98.

Rebouças, L.T., Santiago, L.B., Martins, L.S., Menezes, A.C.R., Araújo, M.D.P.N. and de Castro Almeida, R.C. 2017. Food safety knowledge and practices of food handlers, head chefs and managers in hotels' restaurants of Salvador, Brazil. Food Control, 73, pp.372-381.

Verma, M. and Verma, K. 2017. Social media a promotional tool: hotel industry. Journal of Advances In Humanities, 5(1), pp.221-223. 

 Young, K. and Pagliari, S., 2017. Capital united? Business unity in regulatory politics and the special place of finance. Regulation & Governance, 11(1), pp.3-23.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Project Management Assignment Help

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