Amber Inn and Suites Case Analysis

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Running head: AMBER INN AND SUITES CASE ANALYSIS

Amber Inn and Suites Case Analysis
Selwyn Paul
Davenport University
Marketing Strategies
MKTG610
Dr. Paula Zobisch
Jul 26, 2011

Amber Inn and Suites Case Analysis
Case Recap
Amber Inn and suites, Inc. is a hotel chain with 250 properties scattered throughout 10 Western and Rocky Mountains states. The hotel chain was formed in 1979, and the company operates 200 Amber Inns, and 50 Amber Inn and Suites. Each Inn has the capacity of approximately 150 individual guest rooms or suite units. In fiscal year 2005 the company projected revenues of $422.6 million and with a net loss of $15.7 million. In the spring of 2005 the Senior Vice, Kelly Elizabeth, President of sales and marketing of Amber Inn and suites, Inc. held a meeting with the vice president of advertising Catherine Grace about the profitability of the company, and to consider options for better success in the future. (Kerin & Peterson, 2010, 331) As a result of this meeting with Catherine Grace the company decided to hold several other meetings including a senior vice president conference with Joseph James the company's new chief executive officer and president. Not more than one week before Mr. James was appointed as chief executive officer after the sudden resignation of his predecessor. The senior vice presidents were given the task of presenting his/her initiatives, plan of expenditures, and outcomes, and budgetary initiatives for the upcoming fiscal year 2006 which was to begin on June 1, 2005. The new executive officer Mr. James put forth his proposal, which was to set a goal for the company to achieve profitability within two years. He proposed a corporate objective of 7% annual increase in EBITDA over the next two fiscal years. Mr. James also expressed his desire to have each a senior vice president re-examine the initiatives and…...

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