An aim is a long term goal that is set by a business in order to improve the quality and value of their company. The Copthorne hotel has four main aims. Their first main aim is ‘To Make a Profit for Shareholders’. The Copthorne hotel and the Millennium group is a plc, meaning their shares are sold to the public on the stock exchange. When a share of a business is bought, they become a shareholder, meaning they own a small stake in the business. They aim to increase their profits for the benefit of their shareholders, the more profit they are making, the higher the dividend their shareholders are going to get back. If for example the value of their shares decline in the stock market, the shareholders may wish to sell them, in order to invest in a company making profit, because in a more valuable company they will be paid a higher dividend.
Their second aim is ‘To Increase Market Share’. Market share is the amount/percentage of a particular category of market owned by a certain company. The Copthorne wants to increase their Market Share in order to increase the popularity of the business. An increase in their market share would mean more rooms being booked, more weddings planned and more conferences put in place. All together meaning that the Copthorne would also see an influx in its income, meaning the company has the money to expand further and beat the competition. In order to this they rely heavily on their customers returning, and new customers coming through their doors. In order for this to happen however, they need to meet the customer’s high expectations and provide a high quality, good value for money service.
Their third aim is to ‘Increase the number of hotels globally’. The millennium group currently have over 100 hotels worldwide, 13 of which are based in Europe. Over the last few years, the company has grown and expanded slowly, as the business becomes more popular. The term ‘floated on the stock exchange’ means that anyone can buy shares in the business, based on the information read in the company’s prospectus. This simply means that the Copthorne can raise money in order to expand. The Copthorne has been floated on the stock exchange as it is a Public Limited Company (plc). A majority shareholder is someone who owns at least 51% of the shares in the company, meaning that they have the most influence of the Copthorne’s decisions, and therefore decide on where, when and how to expand.
Finally, their last aim is to ‘constantly improve customer service’. Customer service means the quality of the service/goods given to the customer, whether it be before, during, or after. If a company provides a top quality customer service then they are more likely to retain their customers, and in addition attract new ones by word of mouth, meaning that the customer tells their friends, they tell their friends etc. Therefore it is extremely important for a company such as the Copthorne because the business is constantly trying to expand, and having good reviews plays a vital, big role in supporting this.
The objectives that the Copthorne set are the shorter term, smaller steps that they take in order to achieve their aims. However as the aims change over time due to external factors affecting the business, the objectives will change and alter as well.
In order to achieve their first objective ‘to make a profit for shareholders’ they need to meet or exceed the financial targets set by the Millennium group. These targets may be to increase the numbers of people in the restaurant, sell more rooms, or lower their prices. Overall, their wish is to attract more people through the doors in order to make a profit, so that their shareholders can be paid back.
Their second aim was ‘to increase their market share’. To do this they constantly monitor their global position against their competitors and expand globally within the continents they operate in. This means that they measure their success against their competitors, they constantly wish to be beating them and make bigger amounts of profit, so they have the financial room to grow and expand.
To succeed in their third objective ‘to increase the numbers of hotels globally’ they try to open a new hotel in a major city across the world every year. By doing this not only are they achieving their aim but increasing the amount of income they get, and therefore helping to achieve some of their earlier aims.
Their fourth and final objective is to provide excellent facilities and customer service measured by achieving 95% or more on customer satisfaction surveys, this is set in order to assist their 4th aim of trying to constantly improve customer service. When a customer is staying at the Copthorne they ask them to fill in a survey, these surveys involve questions to do with, the customer service, the rooms, the food, the facilities etc. If they manage to achieve this aim it is displayed on their website and in other advertisements on order to persuade people to stay, if someone sees that another person likes a business, and rates it highly, then they themselves are more likely to try and experience the high quality of service as well.
The Copthornes mission statement is to ‘Get it right first time, every time and think like a Customer’. The ‘get it right first time and every time’ means that the staff working within the facility need to try and do everything perfectly, without fault, in their first attempt, there are no second chances as people tend to form their opinions on first impressions. The second part ‘think like a customer’ means that the staff and employees in order to maintain a high standard service need to put themselves in the customers shoes and think what would I expect from a hotel of such high standards? And they need to perform to this level. Overall this Mission statement helps the Copthorne employees stay focused, and stay on the right track to success. A high quality service results in the end in increased sales and therefore increased profits.