1.0 Executive Summary
Dubai is growing into one of the world’s most well known travel destinations. With this comes the insurmountable competition between rival resorts and hotels in the pursuit of excellence and customer satisfaction. It is this pursuit of excellence and customer satisfaction that brings an establishment’s operational management to the forefront of an executives mind. This report has been compiled to analyse Wendy and David’s experience at The Creek Hotel in Dubai in order to identify possible issues relating to the management of operations, and present possible solutions to the issues identified by using the appropriate theoretical framework. The report will then conclude by summarising the recommendations made throughout the paper and introduce the steps of implementation.
2.0 Operational Design Choices
“The way in which goods and services, and the ‘processes’ that create and support them, are designed and managed can make the difference between a delightful or unhappy customer experience” (Collier & Evans, 2008). These processes are governed by two main theories which directly relate to the underlying issues of The Creek Hotel – its customer benefits package and value chain.
2.1 Customer Benefit Package
A customer benefit package (CBP) is a “clear and defined group of tangible and intangible features that the customer recognises, pays for, uses or experiences” (Collier & Evans, 2008). The package is centred around a primary good or service which is then encompassed with numerous peripheral goods or services which serve only to enhance the primary good or service. Essentially the CBP establishes the key aspects of the good or service which provides employees and customer’s the knowledge of what to expect when dealing with it therefore acting as somewhat of a safeguard against customer dissatisfaction. As diagram 1 above shows, the CBP must be equal to or above the customer’s needs and satisfactions in order to be successful. Knowing exactly what your primary good or service is to begin with is the key to developing successful business practices. Fundamentally a tangible good is something which you can touch and see and intangible good is something you cannot. Although trivial it may seem, the decision of making your primary offering tangible or intangible is the single most important step when starting a business. A senior executive of the Hilton Corporation stated, “We sell time, you can’t put a hotel room on the shelf” (Collier, Service Management: Operating Decisions, 1987). From looking at Wendy and David’s experience of The Creek Hotel it becomes apparent that its primary offering is its hotel room as that is the only aspect of their stay that Wendy and David were 100% satisfied with. The service features of the CBP were only peripheral and still substandard at best. It can be concluded that by making service (time) the primary offering of the CBP changes can be made within the areas of processes, technology and service delivery systems.
2.2 Value Chain
‘In today’s ever-changing economy, both big and small enterprises are continuously faced with the constant struggle to manage and adapt their business value chains’ (Blanchard, 2008). The value chain ‘describes the network of facilities and processes which are required to bring a product or service from the beginning of production until delivery to the customer and ultimately final disposal after use’ (Kaplinsky & Morris, 2000). An effective business value chain essentially depends on good over-arching operational systems and management which can constantly communicate with both suppliers, customers and employees (Kess, Law, Kanchana, & Phusavat, 2009). Without a clear and functional value chain, any business can become unorganised and dysfunctional as highlighted in the case study. Situations such as the hotel manager being unaware of the arrival time of Wendy and David and the miscommunication between housekeeping and management in...
References: AT & T Corporate Quality Office. (1992). AT & T 's Total Quality Approach.
Blanchard, B. (2008). System Engineering and Management. Singapore: Wiley-Interscience.
Collier, D. A. (1987). Service Management: Operating Decisions. New Jersey: Prentice-Hall, Inc.
Collier, D. A., & Evans, J. R. (2008). OM. Mason: South Western.
Kaplinsky, R., & Morris, M. (2000). A Handbook for Value Chain Research. Retrieved March 20, 2010, from Tropical Agricultural Research and Higher Education: http://www.catie.ac.cr/econegociosagricolas/bancomedios/documentos%20pdf/rde_cv_%20kaplinsky.pdf
Kess, P., Law, K., Kanchana, R., & Phusavat, K. (2009). Critical factors for an effective business value chain. Industrial Management & Data Systems , 63-77.
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