04 Explain one advantage and one disadvantage to RGP of choosing a location in the city centre. [6]

[BASEL Moderator]

RGP owns a number of luxury hotels. The directors are planning to open a new hotel with 200 rooms. The hotel’s location will be in the city centre. The Human Resources Director said: ‘One of my roles is to recruit the 300 employees RGP will need from the local community. I think selecting new employees with the right personality is more important than their experience. Everyone will have 6 weeks of induction training.’ She knows that effective communication between employees and customers will be important to the success of the hotel.

04 Explain one advantage and one disadvantage to RGP of choosing a location in the city centre. [6]

Possible KN Points:
Advantage:
• Many people passing/close to customers
• Prestige/image
• Good infrastructure, e.g. water, electricity, internet/transport links

Disadvantage:
• Cost/availability of suitable land
• Availability of suitable employees
• Likely to be lots of competition
• Government regulations