Annexure:1

LOVELY PROFESSIONAL UNIVERSITY

School of Business Faculty of Business and Management

Name of the faculty member: Dr.Donthu Somasekhar

Course Code: MGN101 Course Title: BUSINESS ORGANISATION AND MANAGEMENT

Academic Task No: 1 Academic Task Title: Assignment 1

Date of Allotment: Sep 05, 2022 Date of Submission: Sep 16, 2022.

Student Roll No: RQ2228A22 Student Reg. No:12210045

Term:1 Section: Q2228

Max. Marks: Marks. Obtained:

Evaluation Parameters

Learning Outcomes: (Student to write briefly about learnings obtained from the academic tasks)
Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student's work
or from any other source except where due acknowledgement is made explicitly in the text, nor has
any part been written for me by any other person.
Evaluation Criterion: Rubrics on different parameters

Student’s Signature: Mithlesh Kumar Mahato

Evaluator’s Comments (For Instructor’s use only)

General Suggestions for Best part of

Observations Improvement assignment

Evaluator’s Signature and Date:

Assignment done by: Mithlesh Kumar Mahato | 12210045

Business name: Indira International Inn, Delhi

Business type: Small Scale MSME Enterprise.

Business work: Hotel and Restaurant Service

Introduction
Indira International Inn, Delhi

Indira International Hotel is Small Scale MSME Enterprise located in Vasant Kunj, about 8 km
from the International Airport of Delhi. The hotel started functioning in 1971 and is currently
owned by Nitin Malik. The hotel caters to tourists as well as business travellers from almost all
regions of the world. Indira International Hotel is a luxury hotel with 42 beautifully furnished
rooms that enjoy green garden views from the front. The hotel also has a restaurant which offers
Indian, South Indian, Chinese, Continental, and Italian cuisine prepared by professional chefs.
The hotel is surrounded by beautifully kept mature flower and fruit tree gardens. There is
adequate parking for guests' cars. The hotel also offers complete security, taxis, and Cab Rentals
for guests. All rooms have modern comforts and necessities like Wi-Fi Internet connectivity,
T.V., Direct Dialling Facility, Mini-Bar, and Full power backup for all systems including Air
conditioners and Lifts.

This hotel is one of the best budget hotel in Delhi. The Hotel carters 80-100 guests everyday and
operates 24/7. Since it is located near the International Airport, tourists/guest from all over the
world likes to make their stay here. The hotels booking service is available online across all the
famous hotel booking websites like Booking.com, Makemytrip.com, Justdial.com etc. The hotel
has also received 5 Star certificate from Justdial.com and score of 9.5/10 from Booking.com .

The hotel has 30 employees working for different jobs like receptionist, room service, laundry,
chef, waiter, security guard etc. The hotel invests ₹ 2 crores every year for the maintenance of
the hotel. The hotel earns a turnover of ₹ 12 Crore per annum.

Hotels comes under Hospitality and Tourism Industry and this industry is a part of MSME.
In India. During 2019, contribution of hospitality & tourism to GDP was 6.8% of the total
economy, ~ ₹ 1,368,100 crore (US$ 194.30 billion). In 2020, the Indian tourism sector
accounted for 39 million jobs, which was 8% of the total employment in the country.

According to parameters set by Indian government to classify MSMEs (w.e.f 1st July 2020)
for Micro, Small and Medium Enterprises; Indira International Hotel comes under Small
Enterprise, since it has investment not more than ₹ 10 Crore and annual turnover is less than ₹
50 Crore.
Challenges of the enterprise in the post-covid-19

When the Corona pandemic spread all over the world the hospitality and tourism industry got hit
the worst and Indira International Hotel was also one of the part of it. Here are the following
challenges faced by Indira International Hotel post Covid – 19 :-

1. Less Interest for Travelling – Post Covid tourists are showing less interest for
travelling across the country. The fear of Corona has not ended over the people of the
country which impacted in less occupancy of tourists in the hotel.

2. Tourist Spots closed – Most of the tourist spots of Delhi were closed by the government
protocols. This affected the hotel with decline in tourist check-ins.

3. Decline in Business Travellers – Due to pandemic every business and corporate has
shifted their business meetings, conferences and seminars from offline to online mode
with conferencing websites like Zoom Calls and Google Meet, due to this the business
travellers are not going to other cities and states for business meetings and seminars.
They are preferring to stay in their home and do online conference. This affected the
hotel check ins of business travellers.

4. No International Tourism – During post Covid in India lots of other countries were
still in lockdown and their government restricted foreign tourism. The aviation sector
was also shut to travel across other countries which affected the hotel getting
international tourists.

5. Shortage of workers - As Government had imposed lockdown to reduce the spread of

virus all the workers such as chefs, waiters, sweepers, room service people, all of them
were stuck and were forced to go their hometown now workers are frightened to go back
to their work places this resulted in the shortage of workers in the hotel.

6. Turnover declined by 70% - Due to lack of tourists and travellers, the hotel has
suffered a sharp decline of 70% in the turnover from the past 2 years. Post Covid the
results are still same, there is only little growth in the turnover.

7. Financial Crisis – Since the turnover of the hotel is declined by 70% from 2 years due
to pandemic, the hotel is going through a huge financial crisis. The hotel doesn’t have
enough capital to operate it properly. The hotel is also high in debt, the hotel has taken
 loan of Rs. 5 crore in the year 2019. Due to financial crisis the hotel is struggling to
repay the interest and loan amount now.
Recommendation to overcome the challenge

1. Removing and Changing Touchpoints

Hotel will need to transform the ways in which guests interact with their spaces. For example,
new products such as touchless coolers in lobbies and touch-free check-in systems via guests’
mobile devices will provide access to amenities and better customer experiences without
exposing guests or staff to pathogens.
Within hotel room spaces, touch-focused changes will include integrating a hotel operator’s app
with multiple in-room functions such as heating, ventilation and air conditioning
controls; moving the blinds; and using mobile devices as TV remotes. Novelty features such as
duvet covers and decorative pillows also will be eliminated as hotels adopt minimalistic designs
that are easier to clean. Hallways and elevators, also will experience advancements such as
voice-activated elevator controls, robot room service delivery and other innovations that reduce
touches while streamlining the user experience. Implementing these technology in the hotel will
solve the issue of spreading virus and assure guests for their safety .

2. Hire workers from PMEGP Scheme

The issue of non-availability of workers can be solved by reaching out to PMEGP, The scheme
can generate employment opportunities for those who want a job regionally. Local
announcements of jobs available can also let people who want job outreach the business, which
can bring traditionally trained employees. PMPEG can bring cheaper and more efficient
employees.

3. Opening of tourist place with some guidelines

Government should open the tourist spots for the tourists with some certain guidelines so that
tourism can resume and the hotel will get more bookings from tourists.

4. Apply for Relief Package of Government

The Government announced Atmanirbhar Bharat Package vide which Rs.3 lakh crore collateral
free automatic loan to hospitality industry. The loan will have 4- year tenure and 12-month
moratorium. The hotel should apply for this relief package to get out of the financial crisis.

Conclusion:
If the hotel will apply the recommended solutions, it will surely help the business reach new
heights. The hotel will soon get many tourists and guests and the revenue growth will resume.
The government should also normalise the travelling of people so that the hotel will get more
guests to stay.