KAMAT HOTELS (INDIA) Ltd.

Introduction
Kamat Hotels (India) Ltd (KHIL) was incorporated on 21st March, 1986 by Lt. Mr Venketesh Krishna Kamat and his companions. KHIL is involved in the business of hospitality and associated businesses and its activities may be broadly classified into (i) operation of hotels owned by the Company, (ii) management of hotels owned by other parties under contract (iii) catering services and (iv) timeshare. It has strongly established four hotel brands that are- The Orchid-An ecotel Hotel in 5-star segment, VITS luxury business Hotel in 4-Star segment, Gadh Hotels and Lotus Resorts. It is Asias first environmentally sensitive hospitality group.

SWOT Analysis
1. Strength  It consciously follows the policy of environment conservation in the operations of its hotels in all aspects like design, operation and construction etc. which gives a dual advantage to the KHIL in terms of visibility and marketing combined with low cost of operations.  It is well diversified across the industry with hotels in high end and business classes.  It provides online reservation facility. 2. Weaknesses  It may be helpless to workers/staff strikes.  Disasters that could limit travellers such as terrorist attack, bird-flu etc. 3. Opportunities  Increase in Income levels have made people to spend spare income on such desirable facility  With open sky policy, the travel and tourism industry has seen increase in the business. Increase in airline activity has roused the demand and helped to improve the infrastructure.  Take the benefit of emerging markets, especially the business class and middle class. 4. Threats  There can be fluctuations in the International tourist arrivals so it should not completely depend on it, so domestic tourism should also be promoted.  Many International major groups like Shangri-La, Four seasons, Marriott Chain etc. are entering Indian markets which will increase the competition.  The company should be able to adopt frequent changes in technology or it may be fatal for the sustainability of the business.

Value Chain Analysis (VCA) in Kamat Hotels India Ltd

VCA helps to understand how a business creates customer value by examining the assistances of different activities within the business to that value. It divides the activities into two broad categories-Primary and Support Activities.

Primary Activities
1. Inbound Logistics  It involves monitoring and operating reservation system for guest room rentals, Handling of advance registration, maintain a record of names, addresses, room number and status of the account of current guests and noting any special request of service. 2. Operations  It involves greeting of guest, check in and check out time, providing information about goods, hotel services and local facilities, providing guest with emergency needs like umbrella etc., organising special functions, checking whether the rooms are properly cleaned. 3. Marketing and Sales It involves maintain of good business relationships with regular corporate and community leaders and also VIP and regular customer. Creating in house sales programme at front desk and promoting the hotel facilities. 4. Services  It involves creating of welcoming atmosphere for guests, Registering and resolving their complaints and greeting and chatting with returning guests.

Support Activities
1. Human Resource Management  It involves motivating and encouraging the workers and staff by rewarding them and giving training to front desk manager, supervisor and the house keeping staff and providing good working condition to them. Teams meeting should be held at regular intervals to improve communication and interaction between employees. 2. General Administration  It involves maintaing and preparation of accounts, financial statements, meeting any legal obligations like payment of service tax, luxury tax etc. collected by the hotel and sustaining safety and security for the hotel and its guests.

3. Procurement

 In Kamat Hotels the procurement of Kiryana items, Dry fruits, Vegetables, Sweets &
Namkeen, Milk & Milk products, Bakery products, Ice Cream, Plain/Flavoured yoghurt, Pork Buffalo, coal, Crockery & Container etc. items are purchased by the Kamat Group of hotels in bulk by giving tender notice to the sellers.

Resource Based View (RBV) of Kamat Hotels (India) Ltd

RBV is a method of analysing and identifying firms strategic advantages based upon examining its distinct combination of assets, skills, capabilities and intangibles as an organization. There are three basic resources- Tangible Assets, Intangible Assets and Organizational Capabilities. 1. Tangible Assets  The debt equity ratio (consolidated financial statements) has increased from .015 to .027. The operating cash flow has reduced from Rupees 10413.13 to Rupees 3624.12 in the year 2011. The Credit rating in long term Bank facilities is BB+ and for short term Bank facilities is PR4.  Fixed Assets are carried out at cost of acquisition less depreciation. There is purchase of fixed assets amounting rupees 3329.06 in the year 2011. 2. Intangible Assets  The goodwill has increased by rupees 148.06 for the year 2010-11. 3. Organizational Capabilities  The brand name, mix of contemporary culture with European heritage and centralized system gives competitive advantage to the hotel to grow further and maintain its position for a longer period of time. All this is evident from the Balance Sheet, Income Statement and Cash Flow Statement and the Financial Ratios, the awards and accolades, the new construction of hotels being undertaken due to the development of the infrastructure by the government and the rising consumer demand. References: Official Website-www.khil.com (17/12/2011) Credit Rating of Kamat Hotels by CARE http://myiris.com/newsCentre/storyShow.php?fileR=20110620162201200&dir=2011/06/20 (18/12/2011)

Annual Report-http://www.khil.com/hospitality-management/annual_reports/annualreport_2011.pdf (18/12/2011)