Chapter 7: Operations: Implementing Technologies, Processes and Controls
Inspired by popular Channel 5 TV show - The Hotel Inspector, this case study highlights various challenges that come with hotel management. Within it, The Artist Residence in Brighton and The Rutland Arms Hotel in Bakewell are exampled to possess issues with trading, décor, hygiene and maintenance. Download full case study here: Chapter 07 - Case study
Chapter 7: Questions
1. What problems with the operations management of the hotels could you identify?
Guidance answer:
Section 7.2 explains the basics of operations management in the following way:
Managing operations is concerned with the production of goods and services. It involves ensuring that processes are efficient, use as few resources as possible, and are effective in meeting customer requirements.
In both of the examples above, the existing operations are not meeting customer requirements. In both examples it can be seen that in order to meet customer requirements, it is not necessarily the expenditure of greater resources that is needed, rather the processes involved need to be more efficient. For example, David needs to focus more on providing better leadership rather than doing the work himself. Similarly the cleaning in both hotels needs more systematic supervision.
2. In chapter seven, the textbook says: Your new venture will have to perform these to a certain minimum standard just to compete in your marketplace.
In what ways did the operations of these hotels not meet the minimum standards of the market place?
Guidance answer:
The main issue appears to be the processes involved in maintaining the hotels to an acceptable level of cleanliness and maintenance. Such tasks appear to be undertaken by relatively junior and perhaps low paid members of staff, the key weakness appears to be that more senior levels of management have been unable to set appropriate tasks, monitor them and then ensure that they are performed to the required standard.
3. Why do you think Alex Polizzi says that people should work in the industry before establishing their own venture? What are the possible disadvantages?
Guidance answer:
In the problems highlighted above, the benefit of having previously worked in the industry in which an entrepreneur wants to establish a business is that the entrepreneur will have a better idea of what customer expectations are. The entrepreneur will also have an idea of what management processes are important in order to ensure that the business is effectively managed. Sometimes people who are very familiar with industry practices may find it difficult to innovate and do things differently.
