The document discusses repositioning the Bon Star Hotel (BSH) as the Bon Star Business Center (BSBC) to address issues of mismanagement, unprofessional practices, and underutilized space. It recommends that Krieg Corp refurbish the building, hire new management, outsource services, and position BSBC as an integrated hotel and office solution offering quality at competitive prices. Implementing this plan over five phases from 2010 to 2015 would improve BSH's performance and profitability.

1. Bon Star Hotel“The main thing is to keep the main thing the main thing”Stephen R. CoveyAuthor, public speaker, consultant McKenzie Consulting A. Bech Bruntse, L. Lawaetz, L. Pedersen, S. Troll

3. Non-transparent business practices.

4. Unprofessional management

5. Run downfacilities

6. Unutilized space

7. How can Krieg Corp. utilize its core competencies to reposition BSH more profitably in the market?

8. Refurbish the building complex

9. Hire new hotel management

10. Outsource additional services

11. Reposition BSH as Bon Star Business Center30.01.2010 2 McKenzie Consulting

12. BSH should offer higher hotel quality at competitive prices High 5* 4* BSH 3* Hotel Price 2* 1* High Low Hotel Quality 30.01.2010 3 McKenzie Consulting

13. 30.01.2010 4 BSH is currently below industry standard McKenzie Consulting

14. 30.01.2010 5 The most profitable solution for Krieg Corp. is to reposition BSH on the market McKenzie Consulting

15. BSH should integrate both, hotel and office solutions 30.01.2010 6 McKenzie Consulting

16. BSHs occupancy rate is below industry average for the hotel and in line with the industry average for the offices 30.01.2010 7 McKenzie Consulting

17. Hotel Office Importance of collaboration between hotel and office BSBC 30.01.2010 8 McKenzie Consulting

18. BSBC should offer higher hotel quality at competitive prices High 5* 4* BSBC 3* Hotel Price 2* 1* High Low Hotel Quality 30.01.2010 9 McKenzie Consulting

19. Phase 1 Phase 2 Phase3 Phase4 Phase5 Dismiss Kaplan and layoff excessive staff Renovate hotel Develop incentive scheme Reposition BSH to Bon Star Business Center Evaluate opportunity to sell BSBC Hire business lawyer Hire local GM with hotel expertise Launch new webpage Evaluate and reward performance Increase current office prices Outsource training and education of staff Create strategic alliance with office lessees Focus on core competency: Refurbishment Integrate office section Negotiate outsourcing deals BSH should implement these five phases to reposition as BSBC 30.01.2010 10 McKenzie Consulting

20. 2010 2011 2012 2015 The implementation of the five phases will be completed in 2015 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 30.01.2010 11 McKenzie Consulting

21. 30.01.2010 12 BSBC will offer above industry standard quality at competitive prices McKenzie Consulting

22. Krieg will incur total refurbishing cost of $7.5 million for BSBC 30.01.2010 13 McKenzie Consulting

23. 30.01.2010 14 BSBC will have greater monthly revenues over a five year time horizon McKenzie Consulting

25. Non-transparent business practices

26. Unprofessional management

27. Run downfacilities

28. Unutilized space

29. How can Krieg Corp. utilize its core competencies to reposition BSH more profitably in the market?

30. Refurbish the building complex

31. Hire new hotel management

32. Outsource additional services

33. Reposition BSH as Bon Star Business Center30.01.2010 15 McKenzie Consulting

34. Questions? 30.01.2010 16 McKenzie Consulting

35. BSH has to change its management and ownership structure to exploit its potential Poor Hotel Conditions Ownership Structure Theft Run down facilities Management Lease of land 30.01.2010 17 McKenzie Consulting

36. BSH is currently positioned at the lower end Bon Star Hotel 30.01.2010 18 McKenzie Consulting

37. BSH needs to improve performance in order to stay competitive BSBC 30.01.2010 19 McKenzie Consulting

38. 30.01.2010 20 Including refurbishing expenses, BSBC might incur a negative revenue in the first year McKenzie Consulting

39. Critical issues for BSBC 30.01.2010 21 McKenzie Consulting

40. Krieg Corp. core competencies lie within refurbishing, the rest will be outsourced Integrated Facility Services Cleaning, Facility Management, Security, Catering Gym equipment and maintenance Basic gym equipment lease, maintenance, operations Casino operations Refurbishing of casino space, running of casino business 30.01.2010 22 McKenzie Consulting

41. By repositioning, BSH will turn into a profitable business with a long term selling option 30.01.2010 23 McKenzie Consulting

42. Office/roomdistributionat BSH 30.01.2010 24 McKenzie Consulting

43. BSH current revenue and expenses 30.01.2010 25 McKenzie Consulting

44. Revenue from BSCB 5 year average 30.01.2010 26 McKenzie Consulting