Gap in Business Implementation - Case Study Example

GAP ANALYSIS This section focuses on the gap analysis of the present internal and external environment of Ramsden Alpha Hotel versus its strategic goal of turning it into a boutique hotel while retaining its original function as a business hotel for travelers. It also analyzes the gap between its present operations versus its strategic goal of becoming the leading hotel in Adelaide targeting both business and leisure customers. It focuses on narrowing the gap between these two in terms of intangible assets to ensure maintaining the hotel’s competitiveness in the hotel and tourism industry in the long run. A boutique hotel is differentiated from other genres of hotels by emphasizing the following aspects in its operations: (a) distinctive, stylistic, warmth and intimate architectural design (Anhar, 2001); (b) personalized level of accommodation, facilities and service (Wikipedia); and (c) accessible location. Overall, boutique hotel focuses on individuality of the service it provides making the experience of guests different every time they stay at the hotel. A. Organization Achieving a personalized service oriented operation distinctive of a boutique hotel requires a lot of organizational changes from Ramsden Alpha Hotel which unilaterally requires infusion of capital into its operations particularly if it involves beefing up the capabilities of its staff to provide the type of service orientation that the hotel wanted. Such is the brand of service that the hotel wants for its customers to differentiate them from other hotels consequently establishing it as its brand in the tourism industry in order to maintain its level of competitiveness. 1. Organizational Structure and Processes The infusion of new members to top management with the introduction of a new investor creates an organizational gap within the hotel in terms of management familiarity towards staff who are used to the previous type of management. Also, the goals of the new members of management might not be in line with the expectations of the rest of the employees; hence creating conflict or distrust between them. This problem can seriously affect the level of service implementation that employees provide towards customers affecting the long term goal of the hotel’s management to be competitive within the hotel industry. Further, current structures within the hotel’s organizational set up becomes a bottleneck for its employees to provide professionalize and personalized service to its clients such as lack of coordination among departments, conflicts between heads of some departments, and poor training allocation. These aspects are very crucial for any organization to succeed longer in the industry since its main product to deliver service is reliant on these aspects. 2. Human Resource The new investor of the hotel is focused on cost cutting particularly in training of employees and cutting wages which can be detrimental to widen the gap towards achieving the overall goal of the hotel to gain service oriented competitiveness. Such moves could lead to highly skilled employees leaving the hotel to find high paying works to other companies or hire employees with substandard skills. Highly experienced and well trained hotel employees are key to the provision of personalized service to customers which require a lot of capital investment to constantly professionalize the service of Hotel Ramsden thereby meeting its goal to be highly competitive in the hotel industry. Outsourcing some duties salient to create professionalize service might backlash on the hotel’s reputation if what is outsourced particularly customer representation is not delivered by regular hotel employees when customers are actually staying in the hotel already due to lack of training which is currently evidenced by poor customers’ feedback on employees ability to provide quality, fast, and efficient service. The hotel provided training to its employees as a start to improve their skills and knowledge. However, there is lack of follow through to monitor how well employees were able to assimilate the learning they got from the training to consequently determine whether re-training is necessary. Again follow through and monitoring relies heavily on the quality of managerial skills supervising or conducting the follow through of employees training which again goes back to the quality of the pool of professionals maintained by the hotel. Reduction in wages of employees beyond industry standards and lacking motivational work environment within the hotel will create negative reputation for Hotel Ramsden in the employment industry which is detrimental to its future outlook of maintaining a pool of highly professionalize human resource. B. Business Direction The gap towards the business direction of Hotel Ramsden is still wide in terms of product development, brand setting, and reputation setting. All of these are reliant on narrowing the gaps in organizational aspects of Hotel Ramsden discussed in the previous section. Product development is actually beefing up the professionalism and ability to provide personalize service of the staff of the hotel which is heavily reliant on how far management will capitalize on this aspect. The product itself is its ability to provide such unique service to its clients from room accommodation, amenities and support service. The hotel is on the process of refurbishing its physical structure. However, the refurbishing of rooms towards architectural designs that suits customer individuality usually seen in a boutique hotel needs careful planning and capital outlay. Also, current staff sentiments and performance is not at par with the expectations of clients for a boutique hotel providing efficient and personalize service; hence it needs to work heavily in setting its brand of service in the market. However, the strategic alliances set by the hotel with two leading international companies reputable for managing hotels is already a starting point in establishing its brand of service in the industry which is perceived by the market to be at par with what its two alliances are known for. Thus, the hotel still has to work on establishing such reputation of its alliances in its own operation which it can only achieved through an in depth strengthening of its internal operations. Also, the hotel needs to overcome the negative reputation it has accumulated in the market the previous years particularly in terms of efficient provision of service and security of its guests which substantially form part of the reason why its occupancy rate these last seven years was declining resulting to lower sales almost putting the hotel’s finances in the negative. Its negative reputation in the market is slowly being overcome with the strategic alliances it formed with these two leading international companies reputed for managing hotels effectively; hence giving way for the hotel to get a share of the market for international guests. Further, the hotel’s reputation in terms of social and environmental responsibility is tarnished by its use of hotel products not in line with international standards for socially and environmentally friendly. Reputation for such advocacy in today’s competitive industry creates favorable feedback from customers that can create corporate recognition in the market. Many travelers now are becoming conscious of corporate responsibility towards these aspects and psychologically prefer patronizing services of companies giving their share of corporate social responsibility particularly if it is coupled with reasonable product or service price. Globalization shifted the face of the market for the hotel industry. It encourages increase in business travelers who are mostly looking for efficient, cozy, and reasonable hotel accommodation which is friendly towards such type of market. The economy of Australia continuously grows inviting frequent travelers of businessmen in its various locations which included Adelaide. Hotel Ramsden prepared for this economic phenomenon by strategically allying itself with international partners which business travelers potentially patronize whenever they are in the area wherein partners of these reputable institutions are located such as Hotel Ramsden in Adelaide. However, as mentioned earlier, it should not only ride on these companies reputation but work its internal capability to fully bear such reputation. C. Business Processes Hotel Ramsden needs to improve on its business processes to provide efficient service to its customers. The current practice of lack of coordination among departments and conflicts among employees are detrimental in creating an efficient business process within the hotel. Departments need to coordinate with each other to keep employees abreast with updates on customers and on service provision such that communication to customers is clear, efficient and effective. Shifting the operation and brand of the hotel into a boutique hotel requires personalize service which is heavily reliant on proper communication between employees for clear delivery to customers. The proposed floor plan of the hotel must be matched with skilled supervisors and front office manager that can facilitate efficient communication between employees and customers and supervise efficient operations of each business operational units in each floor i.e. supervisors for night club, sports club, restaurant, salon and front office. Currently, the hotel is faced with the risk of losing (or have already lost) professional employees due to the threat of cutting wages and training budgets to minimize costs as well as poor working environment; hence there is a gap towards maintaining professional team of employees to carry out the hotel’s goal of providing competitive service to its customers. Also, subcontracting part of hotel functions outside of its employees is a challenge in terms of integration of such service to internal employee operations. Such aspect is crucial to create a smooth operation for the hotel wherein communications are clearly carried out between outsourced and regular employees so as not to create disappointments on customer expectations. D. Information Technology Use of competitive information technology in Hotel Ramsden’s operation is somewhat assured through its recent alliances with the two leading international companies reputed for efficient hotel management. These two companies would implement the information technology it currently practices which would enhance the operational capability of the hotel keeping it abreast to technological advancement of its competitors in the industry. In fact, the hotel already implemented the installation of new information technology facilities to meet expectations of customers who are mostly business travelers. However, creating a database among its customers is another information technology enhancement that is lacking in the current operation of the hotel which could immensely help with provision of special programs for repeat customers as well as recognition within the hotel’s computer system. Also, another important aspect on information technology that the hotel needs to improve on is setting up its own website on the internet where potential customers can access information about its operation any time of the day. Further, technology for easier linking of communication between departments can enhance the level of transparency among personnel in terms of hotel’s operation. Such technology allows qualified personnel to easily access updates or communication between departments to deliver efficient service to customers. E. General Guidelines to Narrow the Gap in Business Implementation Hotel Ramsden should first conduct a strategic management planning session to realign, revisit or reinstate its mission, vision and goals with its employees and management. These two operational entities in the hotel should sit down face to face to clear things and rekindle trust and loyalty between them. Management should clearly states its plans to the employees and gathers their feedbacks on such plans on how to improve it further and clear gray areas particularly on aspects that affects employees’ performance within the hotel. Also, the role of new investors in the hotel’s operation should be made clear to employees as well as its role and expectation in the hotel’s operations. The new investors’ participation in the hotel’s operations should be made clear to the employees to avoid any miscommunication that can fuel distrust and fear among employees. A professionalize manual of operations as well as code of ethics among employees and management should be duly approved by management and fully implemented as well as evaluated. Strict adherence to these guidelines should be implemented. It is necessary to enhance professionalism within the operations of the hotel as well as avoid incidents that can tarnish its reputation. Part of the manual of operations should include how to implement the information technology applied by the hotel. Trainings of hotel employees should be based on these set of guidelines; hence limiting the need to hire professional consultants in training hotel employees thereby reducing cost in the long run but continuously maintaining a team of professional employees. Set remuneration standards for each level of position of employees comparable to industry standards. It will help in maintaining skilled employees than can further create a reputation for the hotel as a company that builds career paths for its employees aligning with its goal of providing a truly personalize service towards its customers as what a boutique hotel is known for. References: Anhar, L. (2001). The Definition of Boutique Hotels. HVS International. Retrieved on 08 December 2007 from http://www.hospitalitynet.org/news/4010409.search?query=lucienne+anhar+boutique+hotel Wikipedia, The Free Encyclopedia. Boutique Hotel. Retrieved on 08 December 2007 from http://en.wikipedia.org/wiki/Boutique_hotel Read More