The Sleep Tight is a guesthouse on a plot in a town on the Zimbabwe border....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Sleep Tight is a guesthouse on a plot in a town on the Zimbabwe border. The owner, Sara, started the guest house in 2000 with 6 rooms outside the main house and expanded to such an extent that the number of guest rooms in January 2020 was 35. The main house was diverted into a restaurant in 2008 that became very popular, not only for the guests staying over but also for the people of the town. Sara bought the adjacent plot in 2012 at a very competitive price when it came on the market with the idea to develop another guest house. The Sleep Tight guesthouse was popular with especially businesspeople who worked on contracts in Lesotho as well as people that wanted to take a break from city life over angekends. This resulted in the guest house being approximately 90% full during the week had 50% full over weekends. In March 2020, just before the lockdown due to COVID-19, She continue to pay the salaries of the employees and the bond out of her savings, but by the salary bill was R72 000 and the bond on the adjacent plot R15 000 per month. She could salary permanently employed kitchen staff members, 10 cleaners and 2 gardeners. Her end of January 2021 she knew she was financially in trouble because the savings were nearly depleted and business was picking up at a very slow rate. Explain to Sara the turnaround strategies that could help to change a business around. f The Sleep Tight is a guesthouse on a plot in a town on the Zimbabwe border. The owner, Sara, started the guest house in 2000 with 6 rooms outside the main house and expanded to such an extent that the number of guest rooms in January 2020 was 35. The main house was diverted into a restaurant in 2008 that became very popular, not only for the guests staying over but also for the people of the town. Sara bought the adjacent plot in 2012 at a very competitive price when it came on the market with the idea to develop another guest house. The Sleep Tight guesthouse was popular with especially businesspeople who worked on contracts in Lesotho as well as people that wanted to take a break from city life over angekends. This resulted in the guest house being approximately 90% full during the week had 50% full over weekends. In March 2020, just before the lockdown due to COVID-19, She continue to pay the salaries of the employees and the bond out of her savings, but by the salary bill was R72 000 and the bond on the adjacent plot R15 000 per month. She could salary permanently employed kitchen staff members, 10 cleaners and 2 gardeners. Her end of January 2021 she knew she was financially in trouble because the savings were nearly depleted and business was picking up at a very slow rate. Explain to Sara the turnaround strategies that could help to change a business around. f
Expert Answer:
Answer rating: 100% (QA)
Turnaround Strategies for The Sleep Tight Guesthouses ShortTerm Strategies 1 Cost Reduction Renegotiate Expenses Renegotiate rent leases and contracts with suppliers for better terms Staffing Analyze ... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
Students also viewed these general management questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Suppose that in response to a negative supply shock, the Federal Reserve raises interest rates. Their reason for doing this might be to Keep the economy from overheating Shift SRAS to the right Move...
-
Vision statements should be massively inspiring, overarching, and long term. a) Provide several examples of potential vision statements for various organizations and discuss how such vision...
-
Determine the moment of inertia of the solid steel assembly about the x axis. Steel has a specific weight of st = 490 lb/ft 3 . 0.25 ft -2 ft- -3 ft- 0.5 ft X
-
Allan Stratton is a cost management consultant with over 35 years of experience who shares the benefit of his experience providing tools and resources via the internet. In one of his articles he...
-
For the House Selling Prices OR data file on the text CD, the output shows the result of conducting an ANOVA comparing mean house selling prices (in $1000) by Age Category ( New = 0 to 24 years old,...
-
Level 2 - Calculating Travel Costs at America Travels As a new sales associate at America Travels travel agency, you assist travel agents in finding the best fares for corporate customers. As a...
-
Scientists have studied how snakes grip and climb ropes. In one study, they found that an important characteristic of a rope is its "compliance"--that is, how easily the rope, while under tension,...
-
The K.E. of a satellite is 2 MJ. What is the total energy of the satellite ? (1) -2 MJ (3) MJ (2) -1 MJ (4) -4 MJ
-
) Jiaxing owes $11,850 payable 5 years from now. What alternative amount should their creditor be willing to accept today if the money can earn 5.8% compounded semi-annually?
-
An operating system is a program that manages the complete operation of your computer or mobile device and lets you interact with it. a. True b. False
-
Suppose Wildhorse Company uses a periodic inventory system. Details related to inventory for the month of January are as follows: Units Unit Cost Total Balance, 1/1 280 $5.00 $1400 Purchase, 1/15 140...
-
The IASB and FASB have worked together to develop a single set of high-quality, understandable, enforceable and globally accepted international financial reporting standards. True or False
-
Getting Started Consulting began operations on January 1 , 2 0 2 4 , as a sole proprietorship. During the first month of operations, the business conducted the following transactions. 1 . The owner,...
-
The equation of motion of a moving particle is given by 4xy" +2y' +y = 0. Find the solution of this equation using power series method and also check whether x = 0 is regular singular point of 2x(x ...
-
Four GWU students have been selected to taste food sold by 3 different food trucks labeled as food truck A, B and C on H & 22nd Streets every Monday for 3-weeks. For each student, food trucks are...
-
Lynn and Jack jointly own shares of stock of a corporation, have a joint bank account, and have purchased and own as tenants in common a piece of real estate. They share equally the dividends paid on...
-
What types of indorsements are the following? (a) Pay to Monsein without recourse. (b) Pay to Allinore for collection. (c) I hereby assign all my rights, title, and interest in this note to Fullilove...
-
Identify and describe the sources of law.
-
Ken loans his grandson Rex $20,000 at 5.5 percent per year to help pay for executive chef schooling in Florida. Rex requires 3 years of schooling before beginning to earn a salary. He agrees to pay...
-
Renaldo borrows $8,000 from his aunt today to help pay for college expenses. He agrees to repay the loan according to the following schedule, at a rate of 6 percent/year compounded annually. a. Draw...
-
An investment has the following cash flow series where interest is 8 percent a. Determine the present worth of the series. b. Determine the future worth of the series at the end of year 8. c. Find...
Study smarter with the SolutionInn App