Small Business Issue - Mediation Report Writing - Management Assignment Help

Assignment Task

1. Introduction
The situation involves the owner of a small hotel business that has established its operation in the city of Melbourne. The hotel business also consists of about 20 employees that work for the hotel on a full-time basis. It is involved in the preparation of a variety of meals served for full breakfast, lunch, and dinner. It also provides fast food options for people who want to have a quick bite or snacks and an a la carte menu. It also caters for both vegetarian and regular clientele meals. However, the business owner has realized the need for growth to tap into a wider and competitive market. She believes that before the further expansion is realized in Australia, then there should be a couple of things that may require changes. They include outsourcing of critical business functions like the website, inventory/stock, and a payroll system. Ideally, Parminderis playing the major role of the business owner. Some of the things she needs to be improved are business web features. It includes updating the design of the website, which will eventually draw more people and a new market to its site. It will also include the development of the site to integrate the inventory database with the website. Such a step would enable clients to view, choose, and place their orders, which includes deliveries for those that require to take away. Besides, the additional features should allow customers to view the available stock in real-time. Here, Nijen is also playing a critical role as the IT manager and has had a meeting with Parminderbefore over the issue. Besides, she has requisite knowledge for critical analysis of the IT skills and roles for the completion of the objectives of the business owner. She has also provided a quotation to the business owner based on various considerations. They include the technicalities involved, time, demand, and skills of the employees that would be needed to fulfil the demands of the owner. Simranis also involved here and plays the mediator role in the scenario. Upon a critical evaluation of the scenario as the mediator, it will be imperative to come up with solutions that are acceptable to both parties. Ideally, the owner requires a lot, albeit with a stringent budget, whereas the IT manager needs a bigger team and time to complete the impending task. They are both having divergent views on pricing and the idea of outsourcing the package. The mediator will have to listen to the demand by both parties or conflict then arrive at an amicablesolution.

2. Small Business Issue 
The small hotel business has based its operations in the city of Melbourne, serving different clientele needs. The owner of the business provides both fast food and restaurant meals for people who need either of the services. The owner has decided to expand the business to take care of the growing competition and tap into a new market. Before the business is expanded, the owner discovers that she has to fix certain issues about the business to suit the market demands. Besides, she wants to take care of mostly three key issues that are critical towards such an expansion. While withholding of a fixed budget, the owner is in dire need to have the website improved. It is because the existing one is outdated and does not have the required standard features that can effectively attract a new market. Another feature she wants to be added is linking the inventory to the website. Besides, she wants to outsource the employee’s payroll since they are currently using a spreadsheet. It is the same one that they are using for the maintenance of the employee’s payroll and the management of leave. As such, it is very challenging to maintain updated information about issues of taxation. Thirdly is the need for the business to establish its inventory structure for keeping hotel rooms updated.

3. IT Company Issue 
As a representative of IT company, the initial plan was offering the solution of outsourcing systems in three functions as required by the hotel business, which are hotel website, its payroll system and its rook checking system. However, the hotel currently can only afford to update two of these systems with limited financial resources and also seek for a lower price for these systems’ improvement. 

Firstly, the hotel required to redesign its website, provide function of real-time room checking and add new functions to the website. The IT manager was offering to rebuild the entire website with a fresh layout, integrated room checking function, and also adding a new function for room booking to its website. The total cost for this website improvement will require up to $50,000for these advanced web design and functions according to the average marketing price. However, the budget for the website redesign provided by the hotel is around $40,000. Although the hotel can afford $50,000, they want to update all three systems for their business and even asked the IT company to cut down the expenses.But in the perspective of IT company, to build a feature-rich, custom-built and online store-based website, it will need to purchase domain name, graphic and web hosting, which may cost way more than $50,000 and this becomes one of the constraints in the agreement.

Secondly, the hotel business required to develop a payroll system for managing both employee’s payment and leave requests. As an IT company, we provide several options of payroll software with various prices. The hotel business need to make a decision based on their need and financial limitation. 
Lastly, the hotel required the IT company to build up a room checking system that allow their customers to check the number of vacant room on their website. The initial plan was to offer $45,000 for database design, database setup, PHP Grid setup and building user interface. On the other hand, the business is only willing to pay $30,000, which also became another constraint.
4. Mediator role 
As a mediator, the responsibility is help people negotiate a mutually acceptable agreement in conflicts. It is important to facilitate communication and promote understanding between two parties, using suitable mediation processes and agreement documents for the terms of agreement and identify their benefits and needs. Through communication with two parties and mediator decided using three ways to solve the issue. 
For website issue,
• The hotel business realized the outdated website is unable to adapt to current needs, the hotel owner wants to redesign the website and upgrade integrate room collection function and database function which customer could check the room available online. IT company gives the budget estimation up to $50,000 which over the over the fixed budget of hotel ($40,000). Mediator negotiated with both parties and bring the satisfactory budget estimation in redesign the website: $7,500.
• IT company would completely engaged into developing room collection database function and provide new searching functions in the website which cost $30,000. The total estimated cost for redesigning website is $37,500.
For payroll system issue, the IT company recommend three software, ELMO, clock on and TrackTik. These three software have their own characteristics and functions, but the budget is quite expensive for a small hotel business. Therefore, there has another payslip system that mediator recommend, Easy Payslip is a software and application for small business with ATO(‎Australian Taxation Office) approved. It is accessible from both mobile devices and website. The payment is based on the number of employees in the business, the price range is from $12.95 to $21.95 per month with a first 30 days free trial.
For stock(room checking) system, the hotel business realized the MS access is hard to use and notcompatible to current business model. The cost of software IT company recommended exceed the budget of the hotel, mediator recommend the hotel PMS(the hotel property management systems) which manage all aspects of hotel business operations, including the delivery of superior guest experiences.
5. Conflicts and Solutions 
As this case, the requirement of hotel company is redesign website, upgrade payroll system and establish hotel room checking system. The owner of hotel has the cost limitation and IT company gives the service price which highly exceed the budget limitation of the small business. 
During the debate, the first conflict is redesign the website which contain the integrate room collection function. The budget for the website redesign provided by the hotel is around $50,000, the hotel company only agree to offer $40,000 because hotel company is small business and the owner absolutely not agree to cost so much at the website design. The solution from the mediator is searching the price at fair trading and negotiate with two parties, the budget of redesign the website is $7,500. Due to the foundation of the hotel company already has its website, the redesign of the website would be easier for technicians. Hotel company agrees with this budget negotiation but IT company indicates their hesitation and rejects the price because they think the cost of webpage redesign of hotel company is $10,000, they need to abandon the previous webpage and establish all new user interfaces. However, the solution of developing room collection database function of website is consistent between two parties, the IT company promise they would customised user interface of room collection function in $30,000 budget and customers would check room availability at website.
The second conflict is upgrade payroll system. The hotel need upgrade its payroll system which maintain ATO approved, leave management and other services. IT company recommend three softwares, hotel company are not satisfied with them due to its high price and sophisticated instructions. Mediator recommend the another payslip system for small companies – Easy Payslip. Easy Payslip made for Australian Small Businesses, it is an ATO approved system that could access from both mobile devices and website. It has the functions that hotel company needs, such as calculate the tax, leave management, and tracking employee professional development. Prices increase with the number of employees, the silver plan is $12.95/month with 1-6 employees, the gold plan is $19.95/month with 1-10 employees and platinum plan is $21.95/month with 11+ employees. All types of price plan with a free 30 days trail.Hotel company and IT company are agreed with this recommendation. 
The third conflict is established hotel room checking system. The cost of software IT company recommended is $45,000 witch highly exceeded the hotel budget. Mediator recommend the hotel PMS (hotel property management systems) is a good system used in hotel stock management. There three main PMS system models – pay-per-room model, tiered model and one-time license. According to this hotel business case, pay-per-room model is the option to maximize profit because it is a small hotel, the room is limited. Pay-per-room model is according to the number of room to calculate the fee. The minimum fee is $4/room/month with an accompanying $500 initial setup fee. This cost is much less than the hotel company required budget. Hotel company and IT company are agreed with this recommendation. 

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