w w ap eP m e tr .X w om .c s er UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education 0450/21 BUSINESS STUDIES Paper 2 October/November 2010 INSERT 1 hour 45 minutes READ THESE INSTRUCTIONS FIRST This Insert contains the case study material. Anything the candidate writes on this Insert will not be marked. This document consists of 4 printed pages. DC (CW/CGW) 16127/6 © UCLES 2010 [Turn over 2 The Dream Hotel The Dream Hotel is owned by two brothers Jenn and Kiang. They set up the hotel 5 years ago as a partnership. Each brother has a 50% ownership. MAIN CITY 5km AIRPORT 5km The net profits from the hotel had steadily increased until 2008 when they reached $300 000. Jenn was concerned about the 2009 profits after looking at the data in Appendix 1. He said ‘the best way to increase profits is to increase the number of guests staying at the hotel’. The hotel has 200 rooms but on average only 50% of them are occupied. Most of the guests are business people who are travelling to meetings in the city and therefore stay 2–3 nights. The hotel also has a leisure centre with a gymnasium and swimming pool that hotel guests can use. There is a restaurant which is only used by hotel guests and also a car park. Hotel guests who are flying from the nearby airport can leave their cars at the hotel while they are away and pay car parking fees to the hotel. 75 people work at the hotel. Appendix 1 A summary of the revenue and costs for The Dream Hotel for the year ending 31st December 2009 Total costs = $1 800 000 The costs are from the following: Total revenue = $2 000 000 This revenue comes from the following: Car park Leisure centre Hotel rooms 10% 10% 25% Restaurant 5% 50% 75% 10% Restaurant Hotel rooms © UCLES 2010 0450/21/INSERT/O/N/10 10% Leisure 5% centre Car park Hotel fixed costs 3 Appendix 2 The organisation structure of the Dream Hotel (The numbers in the brackets are the number of staff in each job.) HOTEL MANAGER (1) RESTAURANT MANAGER (1) HOTEL ROOMS MANAGER (1) LEISURE CENTRE MANAGER (1) CAR PARK MANAGER (1) FINANCE MANAGER (1) ASSISTANT RESTAURANT MANAGER (1) ASSISTANT FINANCE MANAGER (1) ASSISTANT LEISURE CENTRE MANAGER (1) ASSISTANT CAR PARK MANAGER (2) CHEFS (4) HOTEL RECEPTIONISTS (5) SUPERVISORS (4) GARDENER (1) ASSISTANT CHEFS (2) BAR STAFF (5) ASSISTANT SUPERVISORS (2) ROOM CLEANERS (16) LEISURE CENTRE RECEPTIONISTS (3) KITCHEN SUPERVISORS (5) WEBSITE DESIGNER (1) WAITERS (10) BAR STAFF (6) © UCLES 2010 0450/21/INSERT/O/N/10 [Turn over 4 Appendix 3 Competitor’s Website luxury-hotel – Internet Explorer File Edit View Favorites Tools Help Back Address Search Favorites Media http://www.luxury-hotel.com Go Luxury-Hotel Welcome to The Luxury Hotel CLICK HERE to receive the latest news & special offers CHOOSE YOUR STAY DESTINATION DATE RESERVATIONS Welcome to The Luxury Hotel. The hotel is located near to the airport and offers conference facilities for business meetings. We have modern presentation equipment for you to use for a professional meeting. Membership of the leisure centre is available to non-hotel guests. For a small monthly fee you can use all the facilities at the hotel which include a swimming pool, gymnasium, sauna and jacuzzi. An excellent high quality restaurant is also available to non-hotel guests. Enjoy celebrations from weddings to birthdays in our luxury surroundings to make your celebrations extra special. Phone to make a booking and leave the rest to us. Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. University of Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University of Cambridge Local Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge. © UCLES 2010 0450/21/INSERT/O/N/10