Sales and Operations Planning at Starwood
Length:
13:07
Subject:
Sales and Operations Planning at Starwood
Textbook Reference:
Chapter 10: Operations Planning and Scheduling, page 418
Summary
The focus of this video segment is Starwood’s sales and operations planning. The video considers
planning from the perspective of both corporate planners and individual hotel property general
managers. These two perspectives give students a unique view of what the aggregate planning
process looks like, and how it gets translated into operational plans at the property level. Students
hear from Senior Vice President Todd McCarty as he discusses the challenges of creating the high-
level plans, as well as General Manager Bunty Ahamed from Starwood’s Wild Horse Pass Resort
in Arizona.
Essay or Discussion Questions Based on Video
1. At what points in the planning process would you expect accounting/finance, marketing,
information systems, and operations to play a role? What inputs should these areas
provide, and why?
• The process for preparing a sales and operations plan requires a determination of
requirements for the actual planning horizon first. If the planning horizon for Starwood
is one-year, then each of the functional areas would need to provide input from the start
of the planning process. For example, marketing may be developing special incentive
2. Does Starwood employ a chase, level, or mixed strategy? Why is this approach the best
choice for the company?
• Starwood is using a mixed strategy. The company faces seasonal demand patterns
3. How would staffing for the opening of a brand-new hotel or resort differ from that of an
existing property? What data might Starwood rely upon to make sure the new property is
not over- or understaffed in its first year of operation?
• New hotels do not have the operating history of existing properties, and so factors
unique to their location and operations cannot be used to forecast staffing as other