Night Club Operation Management Journal

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Kostas E. Sillignakis –

“Late Entertainment Venues industry: How Nightclubs may measure Customer Satisfaction and how the industry may add business value and create competitive advantage by using Six Sigma model – The “Breeze” Nightclub case study.” By Kostas E. Sillignakis

INTRODUCTION 1.0 THE “BREEZE” NIGHTCLUB CASE STUDY 2.0 MANAGEMENT SYSTEM DESIGN 2.1 ROLES AND RESPONSIBILITIES 3.0 THE TRANSFORMATION PROCESS MODEL 3.1 OPERATIONS MANAGEMENT CYCLE 3.2 FUNCTIONS AND PROCESSES 4.0 CUSTOMER SATISFACTION IN NIGHTCLUB INDUSTRY 5.0 PRODUCT & SERVICE ATTRIBUTES IN A NIGHTCLUB EXPERIENCE 6.0 MEASUREMENT OF CUSTOMER SATISFACTION 7.0 QUALITY MANAGEMENT – SIX SIGMA 8.0 APPLICATIONS OF SIX SIGMA TO “BREEZE” CASE – ACTION PLAN 9.0 LIMITATIONS AND DRAWBACKS CONCLUSION Figure 1.1: Organisational Chart of “Breeze Nightclub” Figure 1.2: Transformation Processes Figure 1.3: The Nightclub Cycle Figure 1.4: A Framework for Nightclubs Operations Management Table 1.0: Functions and Processes in “Breeze” Nightclub Table 2.0: Product/Services attributes in a Nightclub Experience p.1 p.1 p.1 p.2 p.4 p.5 p.5 p.6 p.7 p.7 p.9 p.11 p.13 p.13 p.14 p.15 p.15 p.16 p.17 p.18




Kostas E. Sillignakis –

INTRODUCTION For the purpose of this researched report we will use the “Breeze Nightclub” case study as a vehicle to demonstrate current operational issues and challenges within the late entertainment industry, and we will conclude with recommendations and an action plan, giving guidelines of how those type of operations may add business value to their organizations and how to gain competitive advantage. We will start by describing and analyzing the type of operations carried and the operation processes within “nightclubs”. We will then focus on customer satisfaction and how it would be measured. Identifying critical success factors, and how a competent operations strategy may assist to achieve the organization’s objectives.

1.0 THE “BREEZE” NIGHTCLUB CASE STUDY “Breeze Nightclub” is a relatively new business, operating at about two years. It is located at the best spot upon the seaside of the capital of Crete in Greece. It is an investment of about 3 million euros and for its 2 past years of operations is the busiest and most successful nightclub of the island. It is an open air nightclub, with 3000 square meters operational space. The capacity of the place could reach 2500 customers on busy nights and an average daily turnover is 40000 euros. Even though of its success, the last 2 months the “nightclub” has a significant drop of business revenue and venue capacity.

2.0 MANAGEMENT SYSTEM DESIGN The diverse services and complex organization of a night entertainment venue require an effective management system designed according to a careful developed plan. The management system for nightclubs must be comprehensive, encompassing all necessary management activities and all aspects of available or potentional resources for example food and beverage products, labor, equipment, energy, time (Flynn et al, 2000). The organizational structure of nightclubs varies from property to property, even when size, levels of service, type and other categorical descriptions seem similar (Ninemeier, 1986). 1

Kostas E. Sillignakis –











responsibilities may be viewed as typical. On Figure 1.1 we may see the organizational chart of “Breeze nightclub”, and the way roles and responsibilities of its 95 full time employees have been designed.

2.1 ROLES AND RESPONSIBILITIES As we observe on the organizational chart on Figure 1.1, General Manager has the responsibility of all processes and operations through out the organization including those services that have been outsourced for cost efficiency reasons. We should mention here that shareholders in...
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