Working with Industry Oxford Brookes University & Rezidor Hotel Group (a decade of collaboration) - PowerPoint PPT Presentation

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Employer-Engagement: What does it mean for HLST? “Working with Industry Research to Consultancy” (informing practice) Thursday 6 th November, 2008 St Anne’s College, Oxford Peter Harris Professor of Accounting & Financial Management Working with Industry

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Working with Industry Oxford Brookes University & Rezidor Hotel Group (a decade of collaboration)

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Employer-Engagement:What does it mean for HLST?“Working with Industry Research to Consultancy”(informing practice)Thursday 6th November, 2008St Anne’s College, OxfordPeter HarrisProfessor of Accounting & Financial Management

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Working with Industry

Oxford Brookes University&Rezidor Hotel Group

(a decade of collaboration)

Peter Harris & Knut Kleiven

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The Company (at 31 Dec. 2007)

  • One of the fastest growing hotel groups

  • Based in Europe - Middle East - Africa (45 countries)

  • Corporate office: Brussels

  • Operating some 287 hotels = 50,000 rooms (approx.)

  • Results for year (approx.): Revenue €785m; GOP €291m; Profit after tax €46m

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  • Designed business analyst in-company project(1999)

  • Key development: Stockholm, company embraced “marginal accounting construct” (2001)

  • Designed company-wide cost analysis process(2001)

  • Designed programme for financial controllers & general managers (drivers at properties)Sweden (trialled analysis process) (2002)

  • Delivered seminars in-country at the regionsGermany, Belgium & Norway (2003)Poland, UK & Ireland (2004) France, Denmark & Iceland (2005)Austria, Switzerland & Italy (2006)

  • Embedded through the company’svirtual management school (2002-2006)

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Consultancy (reflection)

  • Natural platform for co-operation and interaction between industry & education

  • Opportunity to reflect on strengths/contributions ofthe organisation and the university

  • Practitioners obtain new/novel applications

  • Faculty research endeavours tested/refined/adapted inrigours of ‘live’ commercial environment

  • Cutting-edge experience to bring back to teachingenvironment

  • Financial rewards to university, school & individual

  • Raises faculty profiles(companies tend to engage with individuals)

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Contribution to research

  • European hotels performance project (a) company-wide questionnaire distribution(b) facilitated follow-up field interviews

  • PhD industry-wide CPA project (Vira Krakhmal)(a) part-funded full-time candidate(b)provided complete data collection access to build a constructive case study model (13-month period)

  • PhD pricing project (Jean-Pierre van der Rest)(a) funded complete data collection stage(b)arranged access to 33 hotels -18 cities -16 countries in Europe

  • MSc dissertations: generous fieldwork access e.g.(a) one student is currently interviewing corporate office executives in Brussels for “investment appraisal project”

    (b) plus another student granted access at two Radisson SAS hotels: Birmingham (for pilot) & London (part of main study)

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Partnership beyondthe ordinary

  • Sponsored professorial inaugural lecture event –champagne reception & buffet for over 100 guests

  • Kurt Ritter, President & CEO attended and deliveredkeynote address for our major alumni event at Chelsea Football Ground

  • Contributed ‘forward’ for new accounting & finance book(& almost a chapter on corporate governance..!!!)

  • Sponsor annual Master’s book prize for top student

  • Joint authored “a decade of collaboration” article

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The company has always said

‘yes’(carry’s responsibility!)

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Research to Consultancy/Practice

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Institute of Chartered Accountants in England and WalesTourism and Hospitality Group Annual Conference, November 2006Customer Profitability AnalysisResearch Findings

Prof Peter Harris


Dr Vira Krakhmal

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Purpose of the project

Construct a model to assist hotel companies to improve customer mix decisions

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Phase 1: PhD Research Project(2002 – 2006)

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Model construction

Development of a CPA Model(using activity-based costing)

Case property is a 280-room, four-star, full-service international city-centre hotel

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Customer characteristics by profit contribution



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20 % of the customers generate 250 % of the profits

80 % of the customers lose most of the extra 150 % of the profits


Cumulative Operating Profit


Unrealised Profit Potential



Actual Profit













Cumulative % of Customers

Case hotel customer profit profile

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Ideal situation;

little or no subsidising

Room for action;

small number of very unprofitable customers


Low risk situation;

no extremes

High risk situation;

dependence on few customers;

extensive subsidising



Subsidising effect


Customer-base portfolio analysis(strategic tool)

Profit profile at the site

Source. Storbacka, 2001

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Phase 2: Dissemination to Industry

(2006 – 2007)

Joint Publication

(BAHA, Oxford Brookes University & The Open University)

“Recommended Practice Guide for

Customer Profitability Analysis”

(revised draft guide submitted September, 2007)

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Phase 3: Informing practice(2008)

Friday 25th April:Presentation of CPA research findings at corporate office, Brussels

Monday 26th May:Meeting with corporate office team from Brusselsat Radisson SAS Portman Hotel, London to:

“Explore the implementation of CPA in the Rezidor Hotel Group”

Meeting resolved to develop a system and pilot in the newRadisson SAS EU Hotel, Brussels

Consulting opportunities are already beginning to flow

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