Hospitality Process and Management - Assignment Example

Hospitality Process and Management Task one 1 Analysis of the differences in different product and services of thehospitality industry. Some of the hospitality product and services includes food and beverages, gust room and public space, property operation and corporate responsibility. 1.1.1 Food and beverages The hotel needs to closely work with the regional and national manufactures of food and beverages for a wide delivery of both the equipments and products that are consumed. Food and beverages consumable products entail products like bakery, meat, seafood, alcohol beverages, dairy, produce, poultry and grocery. Supplies and equipments entail things like glassware, linen, dishwasher, china, flatware and ovens (Hilton worldwide, (n.d). 1.1.2 Guest room and public space The hotel supply management has to develop programs with the suppliers who provide services and products for everything needed by the hotel, from the public space to the guest rooms as well as the current operations. These items include, terry, hairdryers, toiletries, uniform, housekeeping supplies, linens, and amenities. In the guest and public space are also renovations including fixtures, furniture and equipments such as furniture, drapery, television, carpentry, artwork and beds (Hilton worldwide, (n.d). 1.1.3 Property operation For smooth operation of the hotel, the hotel supply management has to work hand in hand with the suppliers providing services and products related to infrastructure property. The main areas are repair, maintenance, administrative office equipments, chemicals, promotion items, office supplies and equipments, repairs, laundry equipments, printing items, pest control service, and hotel utility (Hilton worldwide, (n.d). 1.1.4 Corporate responsibility The hotel goal is to set the sustainable purchase standards and create a suppliers performance source and sustainability in the entire hospitality services and products category. The hotel need to employ practices that measure the use of natural resources and economic value maximization by concentration on programs and product that not only make pleases that guests but also protect the world (Hilton worldwide, (n.d). 1.2 Evaluation of factors affecting the nature of demand in the industry. When determining the different industrial hospitality demand pattern, there exist three major patterns that can be identified. These patterns are transit, recreational and institutional sources. Demand pattern based on institutional sources may be experienced from educational institution, non-governmental and governmental bodies, commercial enterprises, which fit in the economic sector (Medik and Ingram, 2001). Aesthetic beauty, historical, extraordinary and cultural attractions can be grouped under the pattern of demand that is based on recreation. An example is Taj Mahal, an important heritage site found in India. It has the capability of attracting thousands of visitors. Another example is Deedar-E- taj plaza which is the five star hotels will avail facility for them. The hotel may also receive small individual groups who brake in the hotel during a long journey may be considered as demand that is based on the transit sources (Medik and Ingram, 2001). 1.3 Customer Profiles and their different expectations and requirements Depending on the requirement and preference of the customers, tourists can be recognized in as four segments which includes, group meeting travelers, leisure travelers, other traveler and business travelers (Sturman, Corgel, & Verma, 2011, Seth & Bhat, 2008, Cognizant Communication Corporation, 2003). People engaged in government institution, NGOs and commercial may be part of this group. Their main requirement may be availability of space. These referees to a conference room that is more advanced with multimedia instead of lodging. Leisure travelers may be those people who are engaged on sporting events or vacation or visits that are personal to them. For leisure travelers, their most preferred needs may be comfortable facilities for lodging at a price that is affordable. However, group meeting travelers may entail both the leisure ads business travelers. This is to mean that they will need either the lodging and other value added facility. The people who may not fall under the three groups listed above may fall in the group of other travelers. 1.4 Analysis of factors that affect the average spending power. In the hospitality industry the price with reference to the price of beverages and food may be more complex and vital as compared to other industries. Therefore, in the hospitality industry, it is vital to consider the average spending power concept which is referred as ASP. It is related to the concept of pricing. ASP may have the influencing potential during the entire process in reference to beverages and food. Different factors like the design of menu and the outlet type may affect it (Fercher, 2006). For example, for services of hospitality possessing long working hours may seem to have ASP that is higher than other unlike services like those of snack bars that have opening hours that are shorter. Task two 2.1Evaluation of important stages in product and service development Product development can be referred as the evaluation of services and products to identify the improvement chances, customer satisfaction and profit. This process is important when it comes to the adjustment of an existing product to deal with opportunities that have been identified and the trend of the modern market. It contributes to the improvement of the quality of the products and towards the satisfaction of the customers. The process of product development should have the knowledge of product strength and weakness, the trend of the modern market that is facilitated by the advance technology. There are three stages of product development which includes tangible product, augmented product and core product (Jennings & Wood, 1994, Binsardi & Ekwulugo, 2003). Core product is every selling product basic level. For instant, Hilton hotel may provide outstanding dinning, a room that is well appointed and other services for their customers. Products that are augmented may include values added services and extra services which they may provide for their customers. For instant, the spa facilities, gym facilities and other packages that are appropriate for different sports like Tennis and Golf (Neirotti, 2012). Tangible can be defined as those products that the customers can be felt physically. There are five steps that are identified in the process of developing a novel product. They include; Commercialization process, Evaluation of Idea, Generation of Idea, Business Analysis, Screening process. The process of idea generation may be a market research result. It would be the proof of a requirement of a commodity based on existing needs of the consumers (Michanek & Breiler, 2013). In the process of screening, idea may be acquired from the potential customers, media and employees. By the utilization of such an idea, the product competition that is expected may provide a good reason according to the trend of the market. In the step of the idea evaluation, expected profit, revenue and cost may be identified. Under this step, the customers that are first expected may be defined theoretically. In the step of product development, manufacturing processes and physical product may do and also determined by the selling price. Not only will the product testing be done. As the final step the campaign process for production may be done in the process of commercialization. 2.2 Analysis of features that have an impact in creating a perception amongst customers on the products and services In the economy of modern globalization, it may be practically hard to differentiate services and products compared to the past years. Therefore, the production of substitute services and products may be a challenging issue in any industry. As a result, most of the organizations concentrating on the reduction of price to compete with there rivals in order for them to dominate the market. When considering the perception of the customers when it comes to services and products, it can be influenced by different factors. According to the findings obtained in a research carried out by Jacobson and Hellofs (Hellofs and Jacobson, 1999). The force on the share of the market on the perception of the customers of a product may contribute to both negative and positive effects. When considering the process of purchasing, the attitude of the customers can be considered as the quality function, product value and the satisfaction level. The information availed by the media, the customers past experience may facilitate the purchasing process of trialling. However, after the process of purchasing, the idea in relation to the services or product may be affected by the satisfaction, quality and value. Therefore, these three factors optimum level may be acceptable to customers always. The concentration on these factors needs to be at a level that is optimal. The value of the services or good is closely related with the price. However, the services and product excellent quality may encourage the customers to pay more for the services or products (Häckner, 2000). 2.3 Assessment of opportunities and constraints. When determining the opportunity affecting the development of product services and quality, various factors like adequate entrepreneurship, labor force availability and the industry location can be considered. Location can be categorized as the most important factor when it comes to hospitality industry (Chu & Choi, 2000). When the company is following the concept of eco-hotel it is of vital to concentrate more on esthetic beauty like, lakes, sea and forest. When it comes to the capital in the hospitality industry, entrepreneurship is very important (Kalnins & Chung, 2006). Availability of a business pattern that is domination may play a vital role in the development services and products. The labor force availability is vital when it comes to the services to the customers. Like all the other industry or organization, custom satisfaction is also vital in the hospitality industry. 2.4 Evaluation of different merchandising opportunities. Due to globalization, there is a trend that is developing for investors to concentrate in investing their wealth at the global market. This may contribute to increasing the frequency at which business travels all over the world. This is highly effective, when it involves the hospitality industry. Furthermore, majority of travelers normally require high quality products and services, but this depends on their ability to purchase them. Therefore, the hospitality industry will get an opportunity to market their services and products and services with value addition. A similar effect may be realized in the hospitality industry when it comes to improvement in the economy of a given country (Akbaba, 2006). Task three 3.1 Evaluation of different pricing methods. Complete and accurate quotation, appropriate pricing, terms of sale selection, and the choice of the correct method of payment can categorized as the four important basics in service and product marketing in relation to the global market. Among the above named four factors, pricing is considered the most vital factor (Jenster, Hayes & Smith, 2005). Different pricing methods in the hospitality industries such as pricing based on competition, market oriented pricing, pricing based on value, cost plus pricing, and target pricing (Avlonitis, & Indounas, (2005, Hinterhuber, 2008, Shipley, & Jobber, 2001, Ingenbleek, Frambach, & Verhallen, 2010 and Boyd, Guardino, & Phillips, 2006). In the pricing method based on competition, the determination of the price will be in relation to the competitor’s similar product. The simplest method of pricing may be the cost-plus pricing. The production cost may be estimated by the firm and the percentage of pre determines may add for the selling price to be determined. Coming up with the prices of service and products based on the market research result on the market that is targeted can be identified as pricing on market oriented. In the target pricing method, there may be a calculation of the selling prices to create a given rate of return on investment in terms of specific product value pre determined. In the pricing based on value, the pricing is depending on the value that was perceived for that. Bearing in mind the domestic market, the firms revenue may be directly associated with the pricing. Therefore, a market research is needed to be cried out to find the different variables on price. If the pricing are set much higher, some problems might be encountered during marketing of the product. However, if the pricing is set too low, then the responsible firm will experience a net loss. Traditionally, the proper pricing determination elements are market competition, demand and the cost (Government Information Services, 1988, Woznick, 1996, United States, & Federal Express Corporation, 1992, and United States, 1993). The three named elements should be suit with the firm objective with reference to joining the global market. However, there may be a small difference between the international market pricing and tat of the domestic. Additional production cost may be taken as a consideration that is important in reference to the international marketing. The additional cost may include the value added taxes, customer fee, production cost fluctuation, and some tariffs. These are the final determination selling prices factor which may have the capability to influence the revenue (Katzman, 2011). 3.2 Assessment of factors affecting the revenue generation. 3.2.1 Factors affecting revenue generation Sales mix It is the mixing of related set of products together and coming up with a price that is low than the total amount of the individual products together as promotion for the organization total sale to be raised, however, is basically less than the sum quantity it could be when sold as an individual, therefore at the end, it affects the generation of the revenue (Denton & White, 2000). Customer turnover The turn over of the customers is one of the dependants of revenue generation, if the customers are not certified with services or attracted by the product, they will find it hard to be attracted back to the industry or organization. This challenge at the same time will affect the revenue generation (Mercer, 2009). Average spending power (ASP) The power or average spending entirely depends on the will of the customers. The customers have the right to decide on whether they need to spend more or not. If the customers average spending power falls, the sales will also go down hence the revenue will also be affected as it will fall. In short, where there is no sale, there is no revenue (Kotas, 1997). 3.2.2 Factors affecting profitability Labour intensity To deliver services or produce goods, a big number of human efforts are needed. This is mainly experienced in hospitality industries where there is orientation of many people. If the human labor is grater as compared to the service or product the more the industry will spend in paying the workers and this will affect profitability of the industry (Chapman, Hopwood & Shields, 2009). Shelf-life This is the time or period of time a product may be preserved or stored without it deteriorating. In short the length of time the stored product can still remain usable. Is the stored product is not good for use, it will be categorized bas waste and it will affect the profitability of the industry (American Hotel & Motel Association, 1975). Elasticity of demand If the availability ageist the demand is not handled properly there will be a drop in the profitability as the sells will also go down. Task four 4.1 Application of different appraisal techniques and performance indicators. The hotel needs to use different method and techniques to assess the performance and capacity of the staffs. Furthermore, a survey can know the job duties of an employee, enthusiasm, duties and regular thoughts. In addition, the employees have the capability to deliver and strengthen vocational training, the guest visit the staff performance and capacity of the staff’s hospitality. In some public elation firms, some people can be selected to play an unknown shopper to assess the performance and capacity of the staffs. The aim will be mainly to improve and further practice of the industrial overall performance. Furthermore, the overall service level can be assessed and the areas that need improvement can be identified and the industry can be provided by a chance to ask the staffs programs of self-assessment. For the supervisors and the employees to enhance communication and interpersonal skills, submission can be availed to the staffs by the supervisors and the staffs can write an evolution and requirement of the supervisors. The assessment of the performance can set a time, for instant, two months, four months six months, one year or longer. The performance evaluation of the employees can obtain the information about a performance from the performance official measure, documented and the procedure of structure. This is to be used as a behavior indicator and a target to reach their superiors staff focus and direction. The employee’s communication tools and the performance feedback based on the payment adjustment, bonuses or an increment on salary as the sanctuary requirement and dismissal of standards training requires determination and analysis of efficient employment criteria for the tool that is selected. Performance reviews a chance for the supervisors to obtain employees feedback on their feeling about the job and the manner in which they are treated (Novacovici & Woofter, 2008). The method of 360-degree is in assessment method. This method of assessment can provide feedback to colleagues, subordinates and supervisors. It also entails self-assessment and in other cases external sources feedback which includes the supply and customers business. In the 360-degree method always receive feedback from the people frequently use the developing and training process (Venkateswara Rao, 2000, Kandula, 2013). These methods mainly have a high credibility and employment involvement; may increase both the shared and communication goals in a grater way; may have a strong impact on the person performance and behavior. This method assists by bringing out all the aspect of the life of an employee. According to the representative of Bell core the findings are that the results are better communication; better working; more style and management performance information. Furthermore, the result is increasing the organization and individual effectiveness as a whole; better organization priority grasps; training needs knowledge and greater input of the employees when it come to designing a plan for self development (SHERMON, 2004). Management by objective method is an idea of agreeing of the organization objectives that are within it so that both the employees and the management accept the organization objectives and understand their roles in an organization. Some of the objectives may be collective to the whole department or organization, while other objectives can be individualized. The target principle to make sure that every person in an organization has a good understanding of the goals or purpose, the industry also has some good understanding of there responsibility and role in achieving this goals. An objective management system that is complex is to enable employees and managers the right to take action to put into practice and achieve their plans. 4.2 Determination of different qualitative and quantitative appraisal methods. The 360 degree feedback is that when it comes to the communication between the employees and other people and not a communication process that is one way for its performance to be high. It provides the people with a chance to understand how they are being perceived by other people; to see their styles and skills; and improve communication among people. Other types of appraisal like helpfulness towards vendors and customers, collaboration with persons outside the department and many more may not be reworded. The process of feedback to provide the people with an opportunity to provide feedbacks that are anonyms to the colleagues may be given uncomfortable. The recipient feedback may understand how they arte viewed by others. Furthermore, they will have an opportunity to regulate the development and behavior that they are good at. The use of the 360 degree performance evaluation of the feedback system is a practice that is common; however it is always not an idea that is good. The 360 degree feedback process has a structure that is very difficult to correct this is mainly when it comes to the creation of a confidence atmosphere when it is used to measure the performance (Rogers, Rogers & Metlay, 2002). Both performance appraisal and performance review are mainly for the performance evaluation form. They are clear and objective indicators as much as the majority of the staffs will consider performance problems. If the employees are always satisfied there will be no problem in improving the evaluation system of the performance. Furthermore, it may cause a reduction in the morale of the employees and the interpersonal relationship. The performance appraisal should provide the employees with feedback on performance and then record the method used to assign organizational reword, provides an opportunity for organization development and diagnosis (Krishnan, Muncherji & Dhar, 2009). Management objective is frequently emphasizing what need to be done in an organization for the organizational goals to be achieved and the commitment of the employees to attain the set goals of the organization. The development of the objective can consume a lot of time, living the mangers and the employees with little time to undertake there duties (Guzik, 2011; Alaka, Tijani, & Abass, 2011). Both the mangers and the employees will have little time for careful communication of the goals, to elaborate written goals. The elaboration written goals, detailed performance evaluation, careful communication of goal needed in the program of MBO increases the paperwork volume in an organization. 4.3 Application of the approaches to a business analysis, evaluation and planning. For a steady increase in the hospitality industry, there is a need of coming up with strategic planning initiatives. The people living standard has also improved as a result of globalization which has contributed to the development of the hospitality industry. The preferred priority for the firm was diversification and this is the firm priority to utilize the high profile customer’s base that they process. It will be easier to target the customers that are in the hotels door step and this may lead to various strategic plan formulations to target them. Strategic planning plays a role in the definition of actions required in allocating resources to attain the strategy including both his people and capital (Seymour, 2012).Various technique of business analysis can be utilized in strategic planning, and these includes PEST, SWOT and even STEER analysis (Poonia, 2010; Planning, 2012). A hospitality industry consist of various category of fields which entails restaurant, lodging, event planning, transportation, theme park, cruise line, and other field within the tourism industry. Strategic planning for the hospitality industry The high rate at which the popularity of strategic planning in the current years is increasing is mainly attributed to accelerating change in industries, increasing global competition and economies. Most of the organization and firms that engage in strategic planning have proved to have higher performance as compared to those that do not engage in it. The current study in the United Kingdom found that the performance of a business was positively linked to sophistication, thoroughness, formality and participation of the process of strategic planning (Enz, 2010). The foundation of the process of strategic management is strategic analysis of the complete study of the firm and its environment. Just as the Jack in the Box strategic plan, the hotel will plan to open one hundred to one hundred and fifty restaurants which will be combined with a convenient store over the next five years. The introduced store will resemble full size restaurant and will also sell gasoline and other store items such as milk and bread. Because of the existence of no individual company that dominated the market, there existed plenty opportunity. The decision was also reached after an intensive research which found out that a convenient-store customer is twice as probable to eat fast food as compared to non-convenience store customers (Harrison, 2003). Like at Starwood, the hotel will expand through diversification strategy for them to utilize their base of luxury customers to sell the products the industry has newly introduced. This strategic process is as a result of product testing and consumers analysis. The first study is carried out involving frequently traveling six hundred business executive. Eighty five percent of the business executive responded that a luxurious bed will make the hotel to be more attractive for them to enjoy the comfort (Haemoon, 2008). Bibliography AKBABA, A. 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