How Might Hospitality Organizations Optimize Their Performance Measurement Systems - Assignment Example

Answer Quality is, indeed, an essential part of a product (good or service) offered by a profit maximising business firm in the marketplace. Quality is defined as exceeding or meeting customer expectations about functionality and use of a product. Once satisfied, the customer becomes loyal and opts out to make purchases in future. In addition, a satisfied as well as loyal customer also markets a top quality product in one’s social and community network. For instance, an advertisement of a product that highlights its key features, characteristics and price would enable potential buyers to have a much overview of actual uses and scope of that particular product. In short, a person could easily decide, after analysing the product attributes including quality, whether to acquire a product for use and reuse. I have chosen a print advertisement of Nokia’s latest cell phone (fill the model) from (mention newspaper name and date). Indeed, this ad highlights model’s key features, performance durability, reliability, serviceability and aesthetics. In short, the marketers have used six quality dimensions out of eight presented by Garvin in his concept of Quality Dimensions. The ad is attractive in a way it has been elegantly designed and accurately targeted towards potential consumers. It is informative and persuasive in nature as it is differentiated, develops interest and desire of buyers as well as could assist in quick purchase decisions. Answer 2-a 73 words A generic organisation’s internal customers would be its core suppliers, managers, executives, consultants, vendors and processing staff that could be affected from quality of a particular product or from its production process. The term external customers refer to end users of good or service who visit stores or display offices to get information about a product and to buy it in exchange of monetary units. Both are important for a profit-maximising business firm. Answer 2-b 111 words The Travelodge budget hotel, launched in 1985, is a UK based hotel that provides accommodation services to external customers such as foreign and domestic travelers, passengers and visitors across United Kingdom. The brand has grown to over 380 hotels and enjoys a loyal pool of over 9 million external customers that prefer night stays at Travelodge (Internet: travelodge.co.uk). Indeed, the company has also developed various workers’ development and training sessions to maintain decorum, discipline and open communication among internal customers such as services personnel, reception staff and managers. In addition, Travelodge highly values its core furniture suppliers to ensure timely delivery of ordered commodities and to enhance efficiency internal customer service. Answer 2-c 78 words It should be pinpointed that the major aim behind customer focus is to improve customer satisfaction, long-term loyalty and perceived customer value that would lead to future purchases and long run profits. Indeed, any organisation could pay greater attention to individual customer needs and desires after which should develop products that meet or exceed buyers’ expectations. As a result, customers become satisfied and return in future for new purchases. The loyalty level improves and profits increase over time. Answer 2-d (i) Among different consumer satisfaction measures, one of the commonly preferred measures is to determine customers’ actual behavior toward a specific good or service. Indeed, this will enable the company managers to determine whether the buyers have inclination to purchase or repurchase a product and whether they intend to recommend their preferred product in social networks or not. The data could be obtained in the form positive consumer responses such as “I am glad”, “an appropriate choice” etc. (ii) One of the internal customer performance measures that would result in obtaining useful data for the hotel’s management is financial performance of a firm. Indeed, the information could be obtained from firm’s liquidity, debt management and profitability ratios that in turn enable decision-makers to devise alternative strategies to accomplish optimal performance targets. In addition, financial ratios may also, somewhat, help in determining customer satisfaction, loyalty and brand’s strength obtained from number of repeat customers and new customers (Ines, 2007). (iii) One of the biggest underlying problems with measures used in data collection is biasness or fake responses of consumers when a survey is conducted. Indeed, this also happens when a participant, although, agrees to fill the questionnaire but just randomly tick options for close-ended questions. In this way, there has always been a possibility that data obtained may not be accurate. On the other hand, over the last few years, many financial advisors have already moved from commission-based remuneration to “fee-for-service”, i.e. similar to how accountants and lawyers charge for their services. Answer 3- (a) Financial advisors have shifted from ‘Commission-based remuneration’ to ‘fee-for-service’ in last few years. Indeed, they now tend to charge fixed fees for services and consulting advice they tend to offer to clients for investment and financial planning. Indeed, the fee-for-service is a relatively better option because the advisor is more truthful to customers and inclined to provide best consulting services because of immediate payments. In addition, this option also improves communication and coordination between customer and advisor, since the latter tries to create his / her goodwill in the market. Indeed, a satisfied pool of customers will refer new clients to sincere consultants. In contrast, the advisor is more interested in earning commissions from financial institutions where customers would invest after their advice. The quality in terms of sincerity and ethics may reduce because customers may be misguided from exaggerated opinions of advisors about investment plans of certain institutions. Answer 3- (b) Financial institutions, unlike advisors, tend to present their plans and investment schemes in a highly attractive manner so that their clients would invest and pay commissions for advice and consultation services. Although, these firms focus to build long run relationships and create value to ensure survival, growth and sustainability, yet they are interested to maximise their own commission-based earnings. Some agents also misguide and deceit investors by portraying false information on profitability and liquidity of an institution. Independent financial advisors tend to charge fixed fees for their consultation services; hence they are more interested in building positive and cordial relationships with their clients by providing unbiased analysis about scope, reliability and validity of various available investment plans. They pay attention to advice for secure financial investments rather focusing on personal gains or commissions in the short-run. Hence, the quality of services rendered is much higher than the advice by banks and insurance companies. Answer 5 -a: (i) A top-down flowchart diagram shows the major steps that are going to be used in a purchase, production, supply or sales process. Indeed, this type of flowchart is very beneficial because it provides all major sub-steps used followed by intermediate output or outcomes attained during entire course of action. For instance, it provides a bird’s view of entire predefined procedure as well as identifies the number of personnel that are a part of this process. Finally, it is quite helpful because the invigilator or concerned manager could identify and rectify weak areas or sub-steps that lead to inaccurate results or intermediate outputs (Rao et al, (ii) Customer is Customer visits Customer takes informed a showrooms purchase decision 1) From ads 1) Checks quality, features etc. 1) Negotiate Pricing 2) Friends, family etc. 2) Pricing 2) Leasing or cash purchase 3) Reviews in magazines 3) Evaluate Alternatives 3) Delivery, registration and use 4) Check additional services b) (i) Cause and Effect diagram identifies all major causes that lead to particular effect or effects. The major purpose of this Diagram is to facilitate in decision-making, improvement and problem-solving so that business goals and targets could be accomplished and alternative solutions could be formulated and implemented. (ii) Customer is Customer visits Customer takes informed a showrooms purchase decision Effect: I was nettled from the product quality, durability and reliability and decided never to purchase it again neither would recommend to anyone else. (c) Answer 6: Here, I would like to provide the example of electronic doors locks in cars that used some mistake-proofing devices. Indeed, the device ensures that doors are not left unlocked. In addition, the device automatically locks any unlocked door after a specified time (for example 5 minutes) because of central locking system. Next, another device ensures that doors are not automatically locked when open and when engine is running. References: Ines, Cruz (2007) "How might hospitality organizations optimize their performance measurement systems?", International Journal of Contemporary Hospitality Management, Vol. 19 Iss: 7, pp.574 – 588 Read More