Case study

MUGHAL MAHAL HOTEL

Submitted to
Sir Naeem Hayat

Submitted by
Saira taj (15121005)
Waleed Sohail (15121007)

Acknowledgement

All glory and honor are for ALLAH ALMIGHTY, the Supreme Being who bestowed profound
perseverance and ability on me to accomplish my Case writing.
I would like to express cordially gratitude to my learned, kind and experienced teacher Mr.
Nayeem Hayat for his valuable guidance and continuous encouragement who gave me the
possibility to complete my six week internship program.
I also would like to thanks my site supervisor Mr. Husnain who always helps me, guide me,
encourage and support me and gave me valuable time.
Especial and great thanks to my parents and friends whom love and support enable me to
perform such activities.

MUGAHL MAHAL HOTEL

September 15 2015, the CEO of the Mughal Mahal called an urgent meeting in the hotel. The
General Manager, executive chef, Marketing Manager and Human Resource manager (Exhibit
1) called for the discussion and to make their action plan on the very serious issues facing by
hotel. The issue was discussed in the meeting was an issue happed recently to the hotel. Mughal
Mahal hotel was sealed for two days for the poor condition of the kitchen and the management is
worried if news is displayed on the social media or went to public, the brand image of MM can
be affected and competitor can also gain some advantage by this type of news. They had also
called the restaurant manager as well as kitchen supervisor in the meeting and ask them what and
why this happened. They were also bearing the cost of this activity so they need to take some
decisions urgently.

BACKGROUND:
Mughal Mahal Hotel is not an old name in history of Gujranwala city. Mughal Mahal Hotel takes
its start on 4th October 2013 and gradually it became first priority of Gujranwala people. It
expanded itself by starting Al a carte restaurant on 1 December 2013. This expansion was very
successful due to high response of people.
Two months later they started their Red Box Caf and theme based halls like Little China,
Wild Safari and sheesh mahal. Soon after this, they captured corporate clients by offering a wellequipped Meeting hall and by providing non-competitive meeting facilities. These are the
reasons of their success as they are new in the market. Through this, the Mughal Mahal is getting
popularity day by day not only in its home city Gujranwala but in other cities also.

NATURE OF THE ORGANZATION:

The organization is hospitable in nature which comes under the main head of service sector. A
hospitable treatment organization performs different functions like friendly and warm welcome
of guest and serving them. It also includes entertaining and reception of guests in an amicable
way. Mughal Mahal Hotel fits best in the definition of hospitality industry because it is well
delivering its services. This hotel has aimed to provide its guests with Royal treatment whether it
is related to food, atmosphere or entertainment.

It offers not only Pakistani Cuisine but also Chinese and continental food. For traditional food
lovers it has Mughlai food and for people having exotic taste it offers meal of their choice. It has
also started giving Membership cards to its regular customers. Although it is categorized in
service sector but it is considered as a profitable organization. The primary purpose of this Hotel
is to entertain its guests and to provide them with memorable experience.

Organizational structure:
The Mughal Mahal hotel has different offices or department which performs their role for the
success of it. Almost 136 employees were working in Mughal Mahal Hotel in different
departments (Exhibit 2) and those offices are:
Front office:
This office constitutes reception as well as booking office. It is responsible for bookings and
customer relationship management. To keep record of all past and up-coming events and to
check the availability of halls and to provide other facilities on functions is responsibility of this
office.
Time office:
Time office is the sub-office of HR department. Time office has keeps all the record of employee
attendance and has to forward all the data to the HR department.
Marketing office:
This office is involved in sales, promotions and marketing activities of Mughal Mahal Hotel. To
develop marketing strategies, establishing sales standards and to explore new ways of
promotions are the responsibility of this department. It also has to make comparison of
marketing strategies with competitors.

HR office:

This office is responsible for Recruitment, Training and Motivation. This department is also
responsible for the job analysis and designing job descriptions. Implementation of HR policies
and practices is also its responsibility.
Finance office:
This office staff is responsible for maintain accounts and for keeping financial record of the
hotel. The duty of the department is to analyze financials and compare those financials results to
their competitors.

COMPETITION:
Pakistan is a huge and growing market for food industry. In the cities of Pakistan especially of
Punjab like Lahore and Gujranwala are very famous cities in the world for their food and eating
habit. Restaurants of all types and sizes are jam-packed during opening hours in these cities.
Gujranwala and the people of it are well known for the hospitality and for the food lover.
They use to eat out side very frequently. And the competition is very high in this industry. There
are list of the hotels and restaurants consists of different themes, different sizes with different
cuisine and taste in the market. They all are having their own history, values and specialties.
Mughal Mahal is one of the leading and growing name in the hotel industry of Gujranwala.
There are many competitors of Mughal Mahal providing the same and some other facilities to the
customers i.e. Shahbaz tika, Real taste, Marain, Bundu khan, Royal garden are the main
competitor of it. Size of the hotel, taste, price and range of items in menu also vary from hotel to
hotel. Despite of all competition, Mughal Mahal is growing and improving its name and image
not even in the Gujranwala but also outside the city for its royal treatment and other facilities.

Punjab Food Authority:

The Punjab Food Authority has been established under the Punjab Food Authority Act 2011 to
ensure availability of safe and wholesome food for human consumption. The basic purpose is to
lay out standards for food articles and to regulate their manufacturing, storage, distribution, sale
and import. The Punjab Pure Food Ordinance 1960 was being applied to restaurants and other

eateries. Providing healthy, clean and hygienic food was the need of the hour and food needed to
be produced as per certain standards. Therefore, the Punjab government promulgated the Punjab
Food Authority Act, 2011.
Changes in the law, now called The Food Authority Amendment Ordinance, 2015 include
strict punishments for producing and selling unhygienic food, making such acts cognizable, nonbailable offences. The amendments also introduce special food courts for the first time in the
province to try cases on a summary basis.
Punjab food authority is too much dominant now days in all cities especially in Lahore and
Gujranwala and plays their important role to improve the food industry. They use to raid in the
different hotels, slater houses, bakeries and other eateries or production plants of eateries which
belong to the food. If the condition of the kitchen or production place found unhygienic or
unclean or the standards are not accomplishing, PFA taking serious actions on that like they are
sealing the business for some time period and also gives some punishment in the form of heavy
fines and non-bail able arrest etc.

Problems Description:
Mughal Mahal Hotel is providing the Mughalai environment to their customer. No one is
providing this type of theme in the hotel industry of Gujranwala. So we can say it is the
competitive edge of Mughal Mahal. Mughal Mahal was performing its operations very well. On
September 11 2016, suddenly the inspection team of PFA arrived at there and checked out all the
premises and specially kitchen. Restaurant Manager and Kitchen Supervisor told that when they
never got something they said the kitchen staff never wears gloves and caps. We said that,
operation (cooking) in the kitchen is not starting till now so you should not take this as unlawful
or unethical. Our kitchen staff uses to wear gloves and caps and accomplish all the standards
which are given by hotel and government too. So you cannot take action on this. On this they
became hyper and took this statement personally. After the long argues they took serious action
on it. For that the hotel was sealed for two days and had paid the fine.
They are also facing the problem of employee turnover. When they hired the employees, after
the hiring process they used to train the hired individuals but after one to two month of training

period those individuals became professional and then they left the hotel for better options. It
was a problem for the hotel management due to the following aspects:
The recruitment and selection process takes time and high turnover causes wastage of
time of HR manger in hiring new employees again and again (Exhibit 2).
After getting enough knowledge and experience by the organization the employees leave
the jobs for the better options.
To hire them and trained them, all have some cost which the Hotel have to bear.
Company tries to create an environment where employees became loyal to the hotel and
work efficient to perform their duties.

Conclusion:
Management is so much worried and concerns about the image of the hotel. The PFA is too much
strict this time. Management wants some suggestions through which they can avoid this type of
incident in future. They also want to resolve the turnover problem of their employees. They want
some action plan from you through which they can reduce their employee turnover and sustain
its image in the market.
References:
http://www.punjabfoodauthority.gov.pk/
http://www.mughalmahalhotel.com.pk/
http://punjablaws.gov.pk/laws/2460.html

Exhibit 1:
Hierarchy at Mughal Mahal Hotel

CEO
General Manager

Finance
head

Front
Office

Assistant

HR
Manager

Executive
Chef

Booking
Office

F&B

Restaurant &
Banquett
manager

Marketing
Manager

House
keeping
head

Sales
Executive

Security
staff

Waiters

Sous Chef
Cashier

Stewarding
staff

Exhibit 2:

Chef DePartie

Security
head

Sweepers

Number of employees
Sr.

Number of

Designation
No.
1
Directors
2
Executives

Employees*
5
4

3
4
5
6
7
8

Exhibit 3:

Food and beverages(production)**

Food and beverages (service)**
Finance and purchases
Security and engineering
Housekeeping
Stewarding

40
36
7
8
19
17

Need for recruitment

Recruitment Sources

Receiving of CV's

Screening of
resumes

Test call

Interview

Background
Investigation

Final interview

Selection