Case study analysis Assignment Sample
Executive summary
The present study critically evaluates a chosen hotel case study named Ephesus Resort Hotel in Turkey in terms of considering local, internal, as well as external environments. All the analysis parts are merely supported through critical evaluation regarding the delivering service operation with recent financial performance. The report introduces several ranges of management abilities through developing the service structure and raising the flow of guests towards the hotel. It has been demonstrated in the report how the hotel has faced several negative reviews from the guests. The staffs have stated that the higher authorities and managers are unlikely to listen to employee or customer suggestions, which in turn causes more harm to the hotel’s reputation. The study has presented that how the staffs are getting demotivated due to poor treatment and negative comments from the guests.
Different types of frameworks have been used to conduct macro and micro environmental analysis. PESTLE, SWOT, and Porter’s five forces are introduced in this study to present detailed analysis about the ongoing business performance. It has been identified that the threat from macro environment is quite high as political pressure, economic pressure, financial pressure and social pressure has been affecting the hotel industry. Apart from this, based on the Porter’s five forces, it has been highlighted how the competitors are adjusting themselves and what the specific threats are that Ephesus Resort Hotel currently faces. The SWOT analysis has given a critical representation on the strengths and opportunities of the Ephesus Resort Hotel as the hotel provides lower price fares with a good and calming atmosphere. However, weakness and threats such as poor service quality and lack of technology implementation can cause competitive disadvantage. Thu8s, it is necessary that the hotel takes appropriate steps to counter any kind of problems with appropriate strategies.
Apart from this, this study incorporated two TQM Business Framework including EFQM and “Balanced Scorecard” due to its standard application on analysing current performance. After comparing the two frameworks, the balanced scorecard has been selected as the main framework due to its inherent advantages of gauging both financial and financial metrics. Moreover, balanced scorecard is able to critically deduce Ephesus Resort Hotel’s progress towards SMART objectives, which can be helpful to create action plan for future. Several risks have been identified in this study, which negatively affects business performance such as inconsistent standard, poor staffing policy, poor feedback policy, and lack of development. Therefore, quality management tools such as External Benchmarking”, “Internal Benchmarking”, “Capacity Management”, and “Customer Feedback Systems needs to be used. Lastly, this report also includes an action plan to mitigate such risks so that Ephesus Resort Hotel can improve their operations and performance in the future.
1. Introduction
The report aims to improve the deep level understanding of the context of the operational management process of the hotel and hospitality industry. This specific study is critically focused on a particular hotel in Turkey named Ephesus Resort Hotel, and it shows several arguments to evaluate its ongoing business performance. Based on the given case study details, this study is trying to address several consequences that create a massive impact on the business growth both financially and technologically. This report is going to incorporate critical findings of both micro and macro environmental affect in the business area and also input a section of SWOT analysis of the chosen hotels in Turkey. Along with this, critical comparison and contrast of EFQM VS, Balanced Scorecard also included in this study and then identify the ideal one that is incredibly suited with the business operating structure of this hotel. The quality management tools help delivers effective knowledge about the guideline of quality structure and some risks identified throughout this study with a mitigation strategy.
Case study analysis
The “Ephesus Resort Hotel” is a renowned “4-star deluxe luxury boutique hotel”, which is based in a small holiday resort situated in the city of Akyaka, Turkey. The hotel is independently owned and managed with “50 beds”, and it was opened in “2010”. There are some issues that are faced by the hotel at present namely “that the rooms are dirty”, “in need of decoration”, “lack of choice and authentic cuisine”, and “poor service quality”. These issues have been evaluated after reflecting on the responses obtained from questioning or the feedback from the first 40 respondents out of 50. The hotel is facing the issues of lacking leadership in the management of the staff and operations as per the feedback of the customers. The customers recently have been feeling that the manager is not interested in serving the customers with the best of services and quality of food.
The members of the staff have reported that they do get to hear a lot of comments from the customers as well as the guests; however, they are not getting the opportunity to discuss such feedback with the hierarchy in recent times. It is the view of the staff members that the leadership is not very keen on taking the inputs from the guests or the members of the staff who are at the helm of serving the guests and obtaining their valuable feedback directly. The staff members have reported that they have been hearing a lot of comments from the guests off recently and the manager seems not interested when they pass on the comments from the guests to the management. This has been demotivating the morale of the employees, as the guests who are not returning are satisfied or happy with the quality of service received.
This report will analyze all the varieties of factors that have been affected at the selected hotel as well as will go on to discuss relevant business frameworks in order to better evaluate the case scenarios and later develop greater recommendations on the issues faced by the hotel. There will be two business frameworks used in this report in total namely “European Foundation for Quality Management (EFQM)” and “Balanced Scorecard”. EFQM will be used for measuring the strengths as well as areas that need improvements and adjustments across every activity. A balanced Scorecard, on the other hand, will be used for identifying as well as enhancing the operations internally in order to assist the external outcomes of the hotel.
2. Main body
Part 1: External analysis
Macro environmental analysis- PESTLE
Factors | Evaluation | Impact |
Political factors | ● A consistent situation and atmosphere of the military as well as political uncertainty is prevailed in Turkey (Kara, 2018). This primarily affects the hospitality sector and related businesses, since tourists hesitate to stay in a place that has security concerns (Kara, 2018).
● It is well known that there exists a continuous environment of terror attacks as well as wars in areas surrounding Turkey, and this highly affects its reputation as a safe country. It has been observed that there are times when the Commonwealth Office and the United Kingdom (UK) have laid bans and travelling restrictions on travelling to this country (Ulubeyli and Kazanci, 2018). |
High
Moderate |
Economic factors | ● The high flow of ‘foreign investments’ is one of the biggest and strongest factors that impact economic growth and development at all levels, including global, national and local (Akgunduz and Gürel, 2019). In the view of Israeli et al. (2018) it plays a major role in the advancements of the hospitality industry in Turkey.
● Lack of economic stability is a major concern due to declining current account deficit. This affects the incoming scope of business as well as hospitality companies to team with the existing hospitality companies in Turkey (Koc & Bozkurt, 2017). ● The Gross Domestic Product (GDP) of Turkey in 2020 was $650 billion, which stands at 20th position in the world (Cetin and Okumus, 2018). However, it has been observed that there is a slight fall in the GDP of Turkey due to the Covid-19 pandemic and travel restrictions. This affected the hospitality sector on a large scale as the tourism and hospitality sector of this country mainly depends on inbound tourism from across the world (Toylan et al., 2020). ● The corporate tax rate in Turkey is 22%; however, the good news for the hospitality sector is that the Turkish Government is planning to reduce the corporate tax rate to 20% in order to provide relief to the businesses (Darvishmotevali et al. 2020). |
High
Moderate
High
Moderate |
Socio-cultural factors | ● The young population of this country holds tremendous potential growth, and this has been attracting investors internationally due to its plethora of talent (Jafari et al. 2020).
● There is a sudden rise in unemployment rates, poverty as well as social exclusion (Durmusoglu et al. 2018). The estimate of the unemployment rate is about 15%, however, the Turkish government is planning to reduce the same by significant margins by the end of the year 2021 (Ozdemir and Demirel, 2018). |
Moderate
Moderate |
Technological factors | ● Most of the population is high-tech minded due to the high investments by the Turkish government in both rural as well as urban areas (Altuntas and Gok, 2021).
● Online mobile banking, software, computers, mobile networking, fixed broadband, e-commerce as well as Hospitality are among the top growing industries of Turkey (Aydin and Karamehmet, 2017). |
Moderate
Moderate |
Legal factors | ● The legislative regulations of Turkey provide equal treatment to all people within its boundaries (Baser et al. 2017). This works as bait for potential foreign investors who are attracted to this feature of legislative equal treatment and a secure business environment within the country (Aydin and Karamehmet, 2017).
● Another remarkable feature is the independence of the judiciary of the country from any external factors (Ozdemir and Demirel, 2018). ● As per the laws of Turkey, there cannot be discrimination based on any of the factors including political views, gender, language, race, religion, and nationality (Altuntas and Gok, 2021). This opens doors of opportunity for businesses in the hospitality sector as well. |
High
High
Moderate |
Environmental factors | ● It has been seen that new hotels combined with economic growth have posed an ecological threat to the country (Jafari et al. 2020).
● Many of these developments of the hotels in serene and natural locations have been degrading nature in many forms such as degradation of nature, scarcity of water, deforestation, climate change, marine pollution, and air pollution (Durmusoglu et al. 2018). ● Despite the effective steps being taken by the Turkish government, it has been evaluated that the ecological balance of the country is being disturbed by these developments and growth (Ozdemir and Demirel, 2018). |
Moderate
Moderate
Moderate |
Table 1: PESTLE analysis
(Source: created by the learner)
Micro environmental Analysis: Porter’s five forces
Factors | Impact | Analysis |
“Entry of New Investors” | Medium | This chosen force mainly depends on the core ability of a new hotel business in Turkey to overcome the industry’s entry barriers (Whittington et al., 2019). As per the suggestion of Köseoglu et al. (2020), the hotel industry critically poses several levels of obstacles concerning the new entry of investors. The Covid-19 era created massive risk for the hotel industry and in general hospitality sectors, as complications of travelling and staying at hotel-related risk have made travellers and guests being less attracted by the industry (Ulubeyli and Kazanci, 2018). Besides that, opening in this geographical area of Turkey is remarkably saturated with multiple competitions, potentially creating several difficulties in gaining a significant advantage. Hence, this force creates a medium level of threat as the hotel business still comes into the international business market, and responsiveness comes like a threat for presenting numerous competitors. |
“Threat of Substitutes” | Low | Based on the given case study analysis, it has been acknowledged that threats of substitutes impact is low on Ephesus Resort Hotel in Turkey. Back in the previous day, the format of substitute threat was so far. However, it’s pretty connected with the rapid development of innovative disruption and technology, which proved to be a more critical challenge regarding these hoteliers in Turkey. As opined by Chaleunsouk et al. (2017), the pandemic outbreak has effectively given the rise in order to get a connection of new substitute products, which create a significant impact on the growth of this hotel business throughput strain. |
“Bargaining Power of Buyers” | Medium |
The medium impact of bargaining powers of the consumers helps to forecast that the suppliers have faced moderate difficulty in the context of thinking prices as well as it can even incur medium losses. In the words of Varelas & Georgopoulos (2017), hotels are targeting the area of tour groups or those areas that are effectively concentrated travellers to be more subject to bargain power concerning the consumers. Besides that, the walk-in consumers or individual consumers have less bargaining power since it does not hold an optimal margin. |
“Bargaining Power of Suppliers” | Low | Suppliers do not critically pose too much pressure to grow this business in an efficient construct that is effectively compared with the bargaining power of the tourist and other consumers (Ozdemir and Demirel, 2018). However, it still inflicts a potential threat on this chosen hotel organization in Turkey. As per the suggestion of Moghaddas et al. (2017), the lower range of supplier power is typically aligned with more attractive the hospitality industry, which essentially raises the ultimate profit outcome. As a result, it effectively affects the area of input cost and puts a substantial strain on Ephesus Resort Hotel that ideally relies on its offered services. |
“Competitive rivalry” | High | Competition of the rivalry is thought to be highly impactful in this hotel named Ephesus Resort Hotel in Turkey. As stated by Moghaddas et al. (2017), several factors are effectively coming into play for determining the major competitiveness of this hospitality industry. On the other hand, most of the greater number of competing hotels in Turkey is facilitated as there are nearly identical services and products that are being offered. As a result, the hotel is diversified with weaker comparative power. The entry of new hospitality businesses in this chosen market gave rise to strong competition and formulated an even wider need to differentiate. |
Table 2: Porter’s five forces analysis
(Source: Created by the learner)
Based on the above discussion, it can be identified that five forces are quite impressive to evaluate the micro environmental condition of Ephesus Resort Hotel. As cited by Moghaddas et al. (2017), the hotel manager takes massive advantage of using the best-evaluating strategy in terms of improving the lack of identified area in this above structure. Meanwhile, it has been acknowledged that Ephesus hotel has faced several difficulties with the issue of poor technology implementation as well as the highest competitive rivalry power.
Internal analysis: SWOT
Strength | Transportation of this area is great, which helps to reach this hotel in turkey easily. As per the suggestion of Aksu & BAYAR (2019), Turkey is a great place to visit during holidays, and travellers mostly visit several tourist attractive spots frequently. On the other hand, the hotel fare is also cheap compared to other hotels like “D HOTEL MARIS” or “ARIANA SUSTAINABLE LUXURY LODGE” that access Turkey with their average price being “$54” while the average price at Ephesus Resort Hotel being “$34” only (Toylan et al. 2020). Another major strength of this hotel is based on the excellent and calming atmosphere at Ephesus Resort Hotel. Moreover, Ephesus Resort Hotel‘s business plan is guided by Asian ideals, including selflessness, helpfulness, civility, and humility and respect (Toylan et al. 2020) In this regard, the highest range of priority is exceptionally placed based on providing outstanding service. |
Opportunity | Ephesus Resort Hotel critically evolves to maintain the recent business trends and create a great connection of individual visited guests. As per the suggestion of Ay & Ekiz (2021), it is creating a solid network chain with the supply chain as well as the marketing chain also positively affected the growth of the hotel business in recent days. Based on the ongoing competitive business structure of the hospitality industry in Turkey, it has been merely acknowledged that the consumers become pricier to attract by the great climate and location (Atadil et al. 2017). |
Weakness | According to the given case study report of this hotel organization, it has been reported that the department managers are not concerned about guest feedback and lack of quality management. Besides that, the majority of the consumers and guests stated that the service quality is not ideal for good staying accommodation. As per the view of Kara (2018), a huge range of attribution is needed to stand a great hotel service provider through showing a positive input from the perspective of staff. However, the staffs do not get enough facilities, as their employment level is lower day by day. |
Threat | Maintenance of poor service quality is potentially marked as a bigger threat for Ephesus Resort Hotel. As per the suggestion of Tırmıkçı (2021), the sudden outbreak of pandemic due to Covid-19, consequences create multiple risks for greatly operating the quality management roles of the hotel industry. Along with this, the incorrect technology implementation in the operational and logistic area created other barriers to greatly constructing Ephesus Resort Hotel’s business. In this ongoing competitive scenario, most hotels are likely focused on good decoration and providing clean and hygiene rooms to welcome all the valuable consumers (Koc and Bozkurt, 2017). According to the feedback of previously visited consumers and guests in Ephesus Resort Hotel, it can be accounted that the service quality as well as the cleanliness of rooms is considerably poor. As a result, potential customers are likely to choose another hotel to spend their holidays, instead of Ephesus hotel. |
Table 3: SWOT analysis
(Source: Created by the learner)
Current performance analysis
It has been learned that growing numbers of investors, as well as customers, has been making the hospitality sector an attractive investment market option for investors in Turkey (Madera et al. 2017). As per the view of Nasim (2018), hospitality, as well as the tourism sector in Turkey, is effectively driven by its rich heritage along with its culture. This has been reflecting the business performance of the selected hotel company in the present case study. The “Ephesus Resort Hotel” is a “Mid-scale Hotel” in terms of area and quality of service offered as well (Atadil et al. 2017). Therefore occupies a significant share of the total hospitality market. As the arrivals of the tourists and guests have been on a rising scale in the country, the “Ephesus Resort Hotel” has been observing a higher number of guests (Magd et al. 2021). The current performance of the hotel is analysed to be satisfactory with significant quality of services in terms of 50 luxury bedrooms combined with highly rated services which have gained wider appreciation from the visitors from abroad.
The best aspect of it has been its nearness to the city and urban populations that enables the availability of significant resources for its operations. It is due to this reason that the visitors choose to avail of the services of this hotel particularly which is situated just at the outskirts of the city but well equipped with essential commodities of the high-quality service. However, there have been some serious causes of concern for the business of the hotel in recent times due to numerous operational as well as managerial issues. It was observed that the majority of Ephesus hotel’s guests and visitors have been complaining about the poor quality of service and food, limited choice of food at luncheon and lack of commitment as well as interest from the line managers of the hotel in serving the guests with the best of services (Talapatra et al. 2018). The respondents have been not impressed with the cleanliness within the hotel premises as well as the decoration in the rooms.
Profit and Loss trading account for Ephesus Hotel April 2018 – March 2019 | ||||
Ephesus Hotel P & L | Budget (000) | Actual (000) | Var | % |
Revenue | ||||
Rooms | 10630 | 7598 | -3032 | -29% |
Restaurant | 550 | 296 | -254 | -46% |
Functions and events (Dec-Feb) | 1800 | 1500 | -300 | -17% |
Excursions and commission | 280 | 380 | 100 | 36% |
Health club | 498 | 260 | -238 | -48% |
Wifi | 6 | 20 | 14 | 242% |
Other income | 29 | 29 | 0 | 0% |
Total revenue | 13793 | 10083 | -3710 | -27% |
Departmental Expenses | 0 | |||
Cost of materials (rooms) | 447 | 184 | -263 | -59% |
Cost of materials (restaurant) | 330 | 118 | -212 | -64% |
Functions and events | 414 | 315 | -99 | -24% |
Health club | 398 | 182 | -216 | -54% |
Sub Total | 1589 | 799 | -790 | -50% |
Gross Profit | 12204 | 9284 | -2920 | -24% |
GP % | 88% | 92% | 4% | 4% |
Undistributed operating expenses | ||||
Labour | 2935 | 1844 | -1091 | -37% |
Telephone | 3 | 3 | 0 | 0% |
Other expenses | 15 | 15 | 0 | 0% |
Marketing | 175 | 29 | -146 | -83% |
Administration | 642 | 706 | 64 | 10% |
Prop. Equipment, furnishings & Maintenance | 706 | 385 | -321 | -45% |
Utilities | 165 | 135 | -30 | -18% |
Training and development | 321 | 30 | -291 | -91% |
Undistributed operating expenses Sub Total | 4962 | 3147 | -1815 | -37% |
Fixed expenses | ||||
Lease & property tax | 398 | 398 | 0 | 0% |
Council tax / building rates | 250 | 250 | 0 | 0% |
Insurance | 105 | 105 | 0 | 0% |
Reserve for equip replacement | 1898 | 800 | -1098 | -58% |
Sub Total Fixed expenses | 2651 | 1553 | -1098 | -41% |
Net Profit | 4591 | 4584 | -7 | 0% |
Net profit % | 33% | 45% | 12.2% | 37% |
Table 4: Financial performance
(Source: Case study)
In addition to the above-mentioned issues, the guests have been not impressed with the hygiene of the rooms as well as the options to choose from the available cuisines. The lower-level employees were not satisfied with the way they have been treated by the senior managers during their job hours. It was understood that the managers were reluctant to take any review or input from the staff members who have been hearing comments of the guest complaining about the quality of service. This has been effectively downgrading the morale of the staff members as well as their job satisfaction (Ong & Tan, 2018). The following has been effective in assessing the issues faced by the hotel recently as well as recommending effective measures to overcome the same.
Part 2: Action plan
Analysis and compare two TQM Business Framework: EFQM VS Balanced Scorecard
European Foundation for Quality Management (EFQM) | The Balanced Scorecard (BSC) |
● This is effective in providing a common language to the organizations in order to gain performance insights from the external business environment (Korada et al. (2018).
● It utilizes knowledge networking in order to link companies that have been operating internationally, across multiple industries, and also provides effective feedback on the performance results (Manville et al. 2019) ● It is mainly based on “8 fundamental excellence concepts” namely “customer focus, people development and improvement, management by process and facts, partnership development, leadership and constancy of purpose, continuous learning, innovation and improvement, result orientation and corporate responsibility” (Zhou et al. 2020). ● As per this framework, the key enablers regarding excellence are “leadership, policy and strategy, people management, resources and processes”. ((Alfalah, 2017). ● The results criteria are mainly of four types from this model namely “people results, customer results, and society and business stakeholder results”. (Korada et al. 2018). ● It has been learned that learning, as well as motivation, must be ever-present in this dynamic structure in order to optimize the “enablers” to make sure that they create enhanced performance results in the future. (Manville et al. 2019). |
● It has been learned that this model uses a four-perspective approach in terms of performance management (Manville et al. 2019).
● It provides architecture to the executives in order to ease the process of translation of strategic objectives of the respective organizations into a coherent set of measures for driving the performance (Zhou et al. 2020). ● It has been identified that the primary objective of this business framework is to assist in communicating as well as implementing the strategies of the organization (Manville et al. 2019). ● In order to compliment the “financial perspective”, a balanced scorecard is significant in introducing three additional “non-financial” measurement categories namely “customer satisfaction”, “learning and growth”, and “internal business processes” (Zhou et al. 2020). ● As per the view of Alfalah (2017), the primary, as well as the major strength of this framework, is its articulation of business strategies and business visions along with making sure that there is “company-wide acceptance” of the “performance measures”. |
Table 2: Comparison and contrast of EFQM and Balanced Scorecard business frameworks
(Source: created by the learner)
The primary reason behind recommending the “Balanced Scorecard” business framework is its ability to link “Key performance indicators (KPIs)” with the “strategic o0bjectives” in order to formulate the strategy clearly. As per the view of Korada et al. (2018), the Balanced Scorecard (BSC) is a “non-perspective model” which implies that it can be used by organizations in order to design the tools for performance management according to any particular situation. It has been identified that an additional benefit of applying the BSC is its ability to ensure target measurement along with the settings. Furthermore, it has been appraised that this framework is beneficial for the companies in allowing them to compare the previous results with the real ones and set specific performance targets for future accomplishments ((Zhou et al. 2020).). Another significant feature of this model is recommending the requirement for a “compensation system” that is effective in linking the individuals with strategic measures ((Manville et al. 2019).
Recommendation of one TQM
Based on the above-discussed contrast, along with showing a more extensive comparison of these two chosen total quality management frameworks, it can be idealized that the power of Balanced Scorecard (BSC) outweighs those of EFQM, in relation to this case study. The effectiveness of BSC can help allowing leaders of Ephesus Resort Hotel in order to gauge progression towards the SMART objectives. As per the suggestion of Manville et al. (2019), the core and strategic application of BSC in the hospitality industry is mostly delivered through the context of a well-rounded manner. Along with this, the scorecards have shown both non-financial as well as financial metrics, which are accordingly helpful to measure employee performance. According to Zhou et al. (2020), the management group and staff can easily communicate through using this BSC application, as it resembles the upcoming performance of team, which is critically identified for creating a standard image of mitigation strategy (Alfalah (2017). It is focused mainly on multiple aspects regarding delivering service and operations to welcome and satisfy the beach of the visited guest.
Business risk analysis
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A manager does not concern about guest feedback and lack of quality management
Based on the available resources and information from the given case study details, it has been evaluated that Ephesus Resort Hotel has been classified with poor quality management. As per the suggestion of Samengon et al. (2020), without any standard quality management, the hotel failed to join the international luxury hotel consortium of ‘Relais and Chateaux’ and therefore to accomplish the hotel’s key strategic objective. Besides that, the managers no longer have connectivity with the available services and great consumer engagement within this hotel. On the other hand, it has been reported that the management takes a serious concern regarding the visited guest feedback. As a result, they are not likely to upgrade the service standard based on consumer feedback and taste. It is pretty showing a very limited ability of hotel business in terms of expanding its minimal outreach as well as marketing position, as they are no longer connected with consumer-focused orientation.
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Poor staffing and management failed to input staffing input
According to the given information from the case study and staffing structure of Ephesus Resort Hotel, it can be acknowledged that this business is regulated by 36 staff, including both full-time and part-time employees. As a result, it is not enough to maintain a standard level of a five-star hotel as there is no specific staffing hierarchy to regulate them in an organized way. In the words of Ariza-Montes et al. (2019), the ultimate level of consequences regarding inadequate staffing greatly contain potential failure to rescue from any critical difficulty and missed care with dissatisfaction as well as high job stress.
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Inconsistent standard
The management of Ephesus Resort Hotel has faced the biggest issue with poor operational and quality management due to operating through inconsistent standards of this business. More specifically, most of the active employees are young as they have not enough experience about job related rules and responsibility. As opined by Winchenbach et al.. (2019), young employees are not adequately form standard working output and shown lower efficiency as resulting in failing to lead their role properly. On the other hand, in this hotel, there is no food and beverage manager that poses a bigger threat to grow adequately.
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Poor choice of authentic cuisine with poor service quality, and dirty rooms
Based on the guest report and feedback, it can be argued that this hotel has failed to satisfy guest’s needs and accommodate them with perceived experience value. The most common complaint has come from the section of poor choice regarding authentic cuisine. Besides that, this hotel has not a standard operating procedure to follow in terms of safety & hygiene that creates the biggest compliance the industry’s responsibilities as a hospitality business. As stated by Robinson et al. (2019), most of the guests are impressed with the exceptional service from staff as well as well-decorated, clean, and hygienic rooms. However, this hotel does not currently look forward to this standard section that imposes multiple complications during service provision on guests.
Four quality management tools
The four-quality management tools selected is “External Benchmarking”, “Internal Benchmarking”, “Capacity Management”, “and Customer Feedback Systems”.
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External Benchmarking (Formal)
This can be used for comparing the selected organization with its other contemporaries. It is done by selecting the comparable organizations and later selecting areas, statistics and comparing the same across various dimensions (Cotrim et al. 2018). It can be applied in various fields and areas such as wages, labour, geographic locations as well as price data (Basu, 2017). This can be done for the time scale of about 2-3 weeks. The required resources for this will be financial data, annual industrial reports as well as statistics on the industry. For this, surveys, as well as sample size, might be considered as effective tools to monitor the effectiveness of the changes to the service operations (Scotti et al., 2018). These tools might be effective in providing valuable insights and responses from the target customers or the individuals concerned with the service offered by the hotel (Basu, 2017). Though, might not be effective in providing deep insight into the moods and reviews of the respondents and this might be crucial in the development of potential management strategies. The service managers will be the authorities at the helm of utilizing this quality management tool.
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Internal Benchmarking (Informal)
This tool is used by the organization by assessing the virtues inside their management and operations in order to determine the best possible methodology as well as practices to conduct any particular task. This is done by comparing similar kinds of operations within the same organization and analyzing as well as measuring the same. The timeline expected for this quality management tool is 3-4 weeks in general but it might vary with the specific areas. The KPI for this tool is “the performance of any business unit in any particular task”. The resources required for this tool can be easily retrieved from the organization itself such as inputs from the staff members, managers, and past performance records (Cotrim et al. 2018). The best tool for measuring the effectiveness of this quality management tool is conducting performance tests within the organization. As per the view of Basu (2017), this is effective in assessing the strong areas as well as weaker areas within the operations of the organizations and later plans to mitigate the same. The primary limitation of this tool is its limited scope of getting specific results from the performance tests; while the persons involved can be anyone from the organization.
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Capacity Management:
This tool is used for ensuring maximizing of full potential production output as well as activities of the organization at any time and under any given condition or situation. This is applied to the production as well as the operational areas of the organization while the timeline in this can be anything from 1 day to 1 month. The primary KPIs identified for this tool are “Set of targets”, “measures”, “reports”, “actions to establish”, “maintain”, and “audit”. The tools that will be required for this are “workforce”, “finances”, “technology”, “materials”, “machinery”, “natural resources”. The capacity management can be measured as well as monitored by calculating the (number of employees)*(number of shifts)*(efficiency)* (utilization) (Manning, 2018). These tools will be effective in providing the organization with essential details and deep insight into the efficiency of the production output. However, these tools are not significant enough to cover the other external factors that affect the production output overall. The individuals to be involved in this entire process will be the analytical managers as well as higher administrators.
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Customer Feedback Systems:
This is assistive to the organizations by collecting information through multiple feedback channels as well as platforms. This is done to devise the operations as well as services as per the liking of the customers. The timescale to be involved in this particular process might range from 2 weeks to 3 weeks. The KPIs for “Customer Feedback Systems” are “Customer Satisfaction Score (CSAT)”, “Net Promoter Score®”, “Customer Effort Score”, “Overall satisfaction”, “External and industry benchmarks”, “Brand attributes”, “Ask for feedback”. There are various resources of “Customer Feedback Systems” are “Social media”, “Customer surveys”, “Voice of the Customer (VoC) tools”, “Review requests and review generation”. As per the view of Jusoh et al. 2018, these systems will be beneficial to the organization in collecting valuable feedback from the customers and later developing effective operational processes for the same. The reviews from the surveys on social media might be misleading as well and the persons involved will be the IT team.
Guest and visitors | |||||
Objective | Measurement criteria | Target | Strategies | Time duration | Key responsibility |
To improve the context of flawless guest flow | Check guest feedback as well as evaluate the section of internal guest feedback with internal performance review. | No wait of reception regarding to the visited guests | In terms of visiting other luxury hotels and competitor, analysis is helpful to gather necessary information about the recent trends and operational process to handle the demand of visited guests (Tajeddini et al. 2020). As per the view of Sourvinou and Filimonau (2018), check the service quality also need to develop the guest visiting number through concern about well-maintained behaviour and full fill their needs and preferences by enhancing service quality. | 6 months | General manager and each involved management department |
Process of internal business | |||||
Objective | Measurement criteria | Target | Strategies | Time duration | Key responsibility |
To enhance the area of supply chain and reshape structure of staff number | Check the area of quality improvement of the management as well as analyse the section of internal performance review regarding staff management | Five to six quality suppliers used
Increase staff number up to 50, using a proper process of recruitment that integrates job analysis and interviewing by experts |
The HR department needs to promote more ideal staff in different operational section to manage all the deliverable tasks within given time with best quality effort. As stated by Baum (2019), benchmarking indexes can be helpful to improve the area of supply chain connection. | Approximate 6 to 8 weeks | Finance manager and head of each involved management department |
Growth and learning | |||||
Objective | Measurement criteria | Target | Strategies | Time duration | Key responsibility |
To enhance service-related skills as well as improve the staff engagement | A number of necessary training hours and service rating structure can help to measure the positive changes. | Each of the involved staffs need to received refreshers as appropriate | Invent new training sessions to build the ability of each staff in terms of delivering service and adjust them into this diverse workplace culture (Lugosi, 2019). | 3 to 4 months | HR department, and administration manager |
Accommodation | |||||
Objective | Measurement criteria | Target | Strategies | Time duration | Key responsibility |
To offer hygienic and clean room | It is monitored through guest feedback. Along with this, rising number of guest visitation in next one year can help to monitor the strand of providing a well maintained room with hygiene (Halpin and Smith, 2017). | Deliver best assumption about the guest experience during visiting this hotel. | As per the suggestion of Brown et al. (2017), investing more money on a daily basis, cleaning the room and maintaining standard hygiene level during this pandemic scenario help to attract more visitors to this hotel. | It take minimum 2 to 3 weeks | The managers and staffs |
Table 5: Action plan
(Source: Created by the learner)
3. Conclusion and recommendation
Conclusion
The entire part of this report is concluded about the process of quality management as well as operational management of a chosen organization from the section of hospitality industry. Based on the case study scenario, it has been acknowledged that Ephesus Resort Hotel has a need to develop its delivering service quality. Along with this, staff arrangement was also very poor which showed major difficulties to deliver the best range of service to the visited guest. Based on the report of the above discussion, it has been accounted that the guests are not well satisfied with services, and they raise complaints against the poor hygienic room and un-aesthetic cuisines. However, the management has no concern about the feedback of employees and guests that poses a negative impact on entire business construction during this ongoing comparative business market. Therefore, the management needs to develop its entire operation management construction and implement advanced technology such through using big data and artificial intelligence.
Recommendations
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Implement advanced technology
It is suggested to implement better technology in each delivering area as technology serves better results in supporting business performance. As mentioned by Abbas (2020), mobile communication and digital booking system and automation with offered smart room keys are mostly effective to reduce human errors in services. In addition to that, implementing the function of in-room technology such as infrared and robots sensors can help to provide all the guests with standard technical experience (Yadegaridehkordi et al. 2020).
Figure 2: Recommendations
(Source: Created by the learner)
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Arrange smart training to all the staffs
It is requested to motivate all the staff with a great training session that is beneficial to express great confidence to show strong employment ability. As opined by Othman et al. (2020), adjust within diverse culture, proper communication and behaviour-based training necessary to enhance the growth rate of staffs to engage in different working actions and determine the changes of ongoing tourism areas. Besides that, propose a monthly reward system to employees depending on their task, firm standard communication with smart technology also trigger their ability level (Aydin, 2020).
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Stretch complimentary service offering based on mass customisation
It is recommended to offer some extended range of complimentary service to each guest and focus on digital marketing through exposing a few attractive offers for advanced booking tract the consumer towards this hotel service. As suggested by AL-Hazmi & Alkhateeb (2020), free wi-fi, smart room upgrade without any additional cost, complimentary breakfast and 24 hours room services are also effective to improve the service structure.
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