The Consultancy Business Report Based On A Case Study Of Ephesus Resort
1. Executive Summary
In hospitality industry proper operation management is essential as it reflects upon the approach of the organizations related to customer service. Effective performance measurement or Total Quality Management of the performance of the employees for putting high value among the consumers is essential in sustaining the competitive marketplace. In this report, the quality analysis of overall departments of Ephesus resorts has been done. EFQM framework of total quality management has been applied here. Customer service, cleanliness, food quality, lack of operational strategies and lack of proper customer feedback system are the identified issues that need to be managed for quality management. The report also analysed the required action plan that must be taken by Ephesus resorts. The implementation of four different TQM tools can help the Ephesus resorts hotel for developing the services that are associated to the hospitability industry. The involvement of the internal benchmarking and external benchmarking aspects would support the Ephesus resorts hotel for developing the hospitality services. Therefore, the impact of Standardized operating procedure and Capacity management tools has been analysed in this report. The challenges of implementing all the TQM tools are also mentioned in this report.
The Ephesus Resort hotel is a four-star hotel that is independently owned and the total number of beds in the hotel is 50. It is a luxury boutique hotel that is situated in Akyaka, Turkey. The Chief Executive (CE) of the hotel is Mr Cox and he has decided to redevelop Ephesus as one of the most attractive hotels in the country. However, due to the poor performance report of the hotel, its plea to join the Relais and Chateaux consortium of international luxury hotels has been rejected. Following the poor performance Mr Cox, the CE of the hotel has approached a leading hospitality consultant and mentoring firm the Bowden Group, to prepare a performance and quality investigation report for Ephesus. As a senior consultant of the Bowden Group, the report is to be submitted to the hotel CE Mr Cox. European Foundation Quality Management (EFQM) framework has been used here to assess minute details of the organisational operations. Internal and external quality audits, financial performance analysis and detailed action plan following four total quality management tools to improve future performance of the hotel are included in this investigation report.
Initially, two TQM frameworks have compared with each other and based on the suitability of the frameworks, the final TQM framework has been chosen for preparing this report. The blanched scorecard is a strategic performance management framework that is used by business organisations as well as hospitality organisations to compare the daily activities with organisational values, mission and vision (Pham, 2020). Both financial and non-financial activities of an organisational are evaluated through the application of the balanced scorecard framework. The perspectives that are mostly covered by the balanced scorecard are financial performance, customer relationship management, internal process assessment, and evaluation of organisational capacity (Panuwatwanich and Nguyen, 2017). In the case of Ephesus Resort, only investigating the four mentioned aspects is not enough. Thus, a more detailed framework had to be considered to investigate the quality issues of the hotel.
In order to do a more elaborative investigation of the quality parameters of the organisation, the EFQM framework has been finally chosen for conducting the quality audit of Ephesus hotel. Excellence term is used here to demonstrate the things the organisation does and the things that the organisation can do for better service delivery in future (Liu and Ko, 2018).
Figure 1: Key parameters of EFQM framework
(Source: Mahmudova and Kovács, 2018)
Certain parameters are assessed in detail for better performance of the hotel. Leadership, policy and strategy, partnership and resources, systems and processes and customers are the key areas that are assessed in this case (Mahmudova and Kovács, 2018). Customer satisfaction is the key performance indicator for hospitality organisations and Ephesus is not an exception.
In order to understand the impact of the external factors on the performance of the hotels, PESTEL analysis is an effective framework (Kara, 2018).
|Political||In 2017, political unrest had caused a detrimental impact on the hospitality sector. In 2016, at least 270 people have died due to the internal rebellion (BBC, 2017). This issue has been solved now but the reputation damage of the country has caused a loss in the hospitality sector (Daily Sabah, 2021) The Turkish government has decided to postpone withholding tax and payments of the value-added taxes for six months following the COVID impacts (Mondaq, 2020). As per the decision of the Turkish government, the food regulations match with the regulations of the European Union (Food Navigator, 2016). Genetically Modified Organisms are completely banned in Turkey (Food Navigator, 2016).|
|Economic||The Gross Domestic Product (GDP) of Turkey is going to reach 740 billion USD by the end of 2021 (Statista, 2021). Turkey’s GDP is following an increasing trend for the last five years (Trading Economics, 2021). Tourism is the dynamic and fastest-growing value-creating sector of Turkey (OECD, 2020). It provides 3.8% of the total GDP share of Turkey (OECD, 2020).|
|Social||For the last seven years, Turkish people are observed to like vegan foods (TRT World, 2020). With the increase in the number of business travellers each year, the demand for luxury boutique hotels are also being increased (Daily Sabah, 2021). Turkey captures $7 trillion of the world halal food market (Daily Sabah 2021).|
|Technological||With the rapidly increasing trend of digital payment in the global market, payment digitalisation is also being popular in Turkey (SWIFT, 2021). For the last 7-10 years, Turkey-based travel agencies are relying on travel software for further growth. The majority of the hotel bookings in Turkey are done through online booking systems (PROVAB, 2015).|
|Environmental||Turkey is being environmentally conscious and LDPE and HDPE, both types of plastics that are banned in the country (The Guardian, 2021). Turkey is reducing the usage of fossil fuel and measurable energy efficient objectives are being adopted by the country (OECD, 2019).|
|Legal||After the pandemic, the sanitisation and other regulations of Turkey have changed. Restricting usage of allergic food contents are also maintained in Turkey as per the European Food Regulations (Food Navigator, 2016).|
Table 1: PESTEL framework
From the PESTEL analysis, it can be said that political unrest in Turkey since 2016 had highly impacted the reputation of the country to the tourists (BBC, 2017). Sobirov and Alimova(2019) have indicated that a country reputation is highly needed for attracting tourists. Thus, if the condition does not get improved Ephesus Resort Hotel can face a significant loss. A Turkey government has postponed the tax payments as a remedial action of managing loss during the pandemic, it may help Ephesus hotel to increase recent profits. For the last ten years, the GDP of Turkey is increasing and it denotes that the people of the country have the potential to afford luxury hotels. The tourism sector’s contribution to the national GDP has also increased which is an indicator that proper quality management can help Ephesus to grow as one of the profitable hotels in the country (OECD, 2020). If the lunch menu of Ephesus hotel can be evaluated then it can be seen that there is no completely vegan menu option. In contrast with this, both a significant amount of global and Turkish customers is preferring vegan food (TRT World, 2020). Ephesus resort has to consider the external factors to redesign its services.
SWOT analysis is the tool for evaluating the effectiveness of the internal environment of any organisation (Marpaung, Pratomo and Wicaksono, 2019).
|Strengths||The award-winning Ottoman style architecture of Ephesus attracts customers. Go Turkish, the parent organisation of Ephesus has the experience of managing the chain of boutique hotels. Mr. Cox the CE of Go Turkish has proper visions. The lunch menu for the regional foods is good. Well, co-ordinate arrival and airport transport services. Reception desk staffs are highly efficient.|
|Weaknesses||The majority of the occupancy (97%) occurs in the holiday seasons only. Limited dinner options and inclusions of no vegan foods. The housekeeping service is late. The number of employees is less. Food delivery tie is prolonged. Customers need to stand in a queue to get food. Foods are sometimes served cold. Failing in retaining most of the valued suppliers. Operating procedures are not maintained. Staff turnover is 60% in the food and housekeeping sector.|
|Opportunities||Online booking through Go Turkish as well as offline hotel bookings is attracting foreign as well as local consumers. They have a large range of regional food menus. Lack of proper chef who can prepare international standard food items. Good business relationship with local tourist organisations. Adequate hotel space to set out an international quality spa.|
|Threats||Steady fall in sales and the occupancy level of the hotels. Increase in the customer complaints. Application to be included in Relais and Chateaux has been rejected. The majority of the consumers go outside for dining. Following the strategy of fixing things when things are broken. Lack of employee recognition is causing high employee turnover. The unplanned cost-saving strategy of the general manager is reducing the running costs and fixed costs. Cultural discrimination in the hotel. Customer feedbacks are hidden by the general manager. Increased number of complaints.|
Table 2: SWOT analysis of Ephesus hotel
Threats of new entrants: The combination of natural beauty and cultural aspects attract tourists to Turkey (TRT World, 2021). As the country has high tourism potential, many global hotel chains can enter the market. Therefore, it can be said that Ephesus hotel has to improve its services otherwise it cannot withstand huge competition from new market entrants. The threat of new entry is high in Turkey.
Bargaining power of suppliers: The power of the suppliers is low in the case of the hospitality sector of Turkey (Kozak and Buhalis, 2019. The hotel can buy the necessary products from several suppliers available in Turkey from whom Ephesus hotel can buy essential goods. If the hotel is not satisfied with the products, then they can choose new suppliers.
Bargaining power of buyers: Turkey is culturally rich. For the past few years, the concept of Boutique hotels has been popularised in the country. There are hundreds of boutique hotels in the country (Culture Trip, 2021). Therefore, if the consumers are not satisfied with the services of Ephesus hotel, then they have other options to choose from. Thus, it can be said that bargaining power is high in the Turkish hospitality sector.
Threats of substitutes: As it has already been discussed that Turkey is rich in cultural resources and tourism in Turkey is popular (TRT World, 2021). As several luxury hotels chains are present in Turkey, if the customers are not happy with the services of Ephesus, then they can easily choose from other options. Already the customers are not happy with the food of Ephesus so they dine out in other outside restaurants. Thus, it can be said that substitute that is high in Turkey.
Rivalry among the competitors:As Turkey is a popular global tourist spot, already several hotels are present there (Culture Trip, 2021. The majority of the hotel chains try to improve their services to draw more customers. Thus, it can be said there is huge competition among the hotel chains existing in Turkey. If Ephesus fails to improve its services, then it can face a significant loss. Competitive rivalry is high for Ephesus in Turkey.
|Budget (000)||Actual (000)||Variance||Variance (%)||Comments|
|Rooms||10630||7598||-3032||-29%||Actual revenue from rooms is anticipated low due to lower occupancy rate during the off-season|
|Restaurant||550||296||-254||-46%||Restaurant has missed the budget by 46% as many customers preferred to go outside for fooding|
|Gross profit||88%||92%||4%||4%||Actual gross profit has surpassed the budget due to heavy reduction in actual departmental expenses.|
|Operating expense||4962||3147||-1815||-37%||Operating cost is down in actual by 37% due to huge reduction in marketing, property and maintenance and training & development.|
|Net profit %||33%||45.2%||12.20%||37%||The heavy reduction in both operating and departmental expenses have improved the net profit margin for Ephesus hotel|
Table 1: Financial Analysis
Leadership: Mr Cox is the Chief Executive of Go Turkish which is the present parent company of Ephesus hotels. Though the hotel is operating in Turkey the parent company is from the UK. Miss. Haversham is the general manager of Ephesus and she is reluctant to communicate in Turkish while the majority of the company staff is local. Ranieri et al., (2018) have defined that operational cost-cutting is a primitive method of improving financial performance. Already the company is understaffed so cost-cutting at the primary stage is not effective to manage the hotel performance. Being so casual about hospitality management is a problematic viewpoint of the GM. Lack of proper training initiatives by the leadership is one of the causes of increased staff turnover (Jaworski et al., 2018). De Pelsmacker, Van Tilburg and Holthof(2018), have indicated that customer feedback is such a method that can improve the performance of organisations. As the GM of Ephesus is not concerned with customer feedback, it can be said that proper customer feedback management can help in improving organisational performance in an efficient manner (Bashir and Farooq, 2019).
Policy and strategy: The mission of the Ephesus hotel is to develop it as one of the best boutique hotels chains in Turkey. Improving the reputation standard of the hotel is also important in this case. The hotel has the objective of being selected as an accredited member under the Relais and Chateaux to gain international accreditation. In order to improve the policy of the company, proper planning is essential. From the case study of Ephesus, it can be said that the GM has the mentality to fix the issues when they arise (Sadegh, Shah Hosseini and Heidari, 2020). Ephesus hotel first has to increase the staff numbers of the departments where there is a lack of staff. The porter on one hand carries the luggage of the tourists and cleans up the chandeliers. This is not an effective way of cost-cutting. As the kitchen department has a limited number of staff who serve the entire amount of the customers. They are late in serving the required dish. Thus, it can be said that increasing the employee number in the kitchen department and appointing external auditors for kitchen audits can be effective here (Phornlaphatrachakorn and Janjarasjit, 2018). Turkey has a high number of Muslim customers, introducing halal items and vegan items to the food menu are important here (Bogan, 2020). Presently, the lunch and dinner menu have no vegan or halal food item option.
People: Housekeeping and food & beverage services are the two important departments of any luxury hotel. The revenue generation of the hotels depends on these two departments (Patiar and Wang, 2020). Each year 60-70% of employee turnovers are observed in these two departments. Employing properly skilled employees for different departments is highly essential for a luxury hotel. However, the recruitment strategy that Ephesus is following in Turkey is vague. They just recruit people based on the local recommendations. Designing a proper recruitment strategy for the organisations, with descriptive job roles and required skill sets can help in managing the employee turnover rate (Karimi et al., 2019). There is a lack of training strategies of the company. The hospitality business is enhanced by experiences. Buddy up system of training where the co-employees help each other to attain the skilled efficiency is good but arranging skill development training at the onset of the job is important. This is one of the major lacks that Ephesus hotel is facing right now (Ibrahim, Boerhannoeddin and Bakare, 2017). Cultural empathy is another important aspect that has to e maintained in the working environment of an organisation (Sambasivan, Sadoughi and Esmaeilzadeh, 2017). Present higher management of Ephesus hotel are British and thee hotel operates in Turkey. However, the GM is so rigid in the communication pattern that she does not tolerate the use of any language other than English and this has caused trust issues among the Turkish employees. They think that the management of the hotel is unapproachable and they only focus on cost-cutting, not on the skill up-gradation of the employees.
Partnerships and Resources: There are no details about the industry partners and the restocking activities of the hotel. Go Turkish is the mother organisation of Ephesus but how the hotel manages the resources is not clear enough in the case study. The menu of the hotel in case of traditional food is ok. However, the general menu is not satisfying and even it is causing customers to dine in other restaurants. Understanding the need of the customers and redesigning hotel resources accordingly is important for the upliftment of hospitality businesses (Santra, 2018). The hotel has to improve its stock monitoring and stock rotation capabilities as well as also has to fix the food quality and variety related information. Due to the language issue and unapproachable nature of the higher management employees cannot communicate with them properly. Moreover, there is no proper planning behind the cost-cutting activities of the hotel. Therefore, it can be said that proper resource allocation and management are essential to improve organisational performance (Yeng, Jusoh and Ishak, 2018). This aspect is missing in the case of Ephesus.
Process and systems: Lack of proper official documentation is one of the major activity drawbacks that the hotels are facing currently. Each hotel has a set of standard procedures which it follows to attain the functional goal of the organisation (Rezvaniet al., 2018). The ‘Standard Operating Procedure’ of Ephesus hotel has been discovered from the office of the manager and was covered in dust. This reflects that no one in this hotel follows the rules and regulations. The GM is aware of all the policies and procedures but she tries to operate the hotel on her own. Customer feedback is important for the performance improvement of any hotel (Díaz and Duque, 2021). It has been observed that a simple questionnaire method is used to record the customer feedback and room service staff generally collect the feedbacks manually so often the feedbacks get lost. The GM is not worried about this matter and thinks that customer feedback is nothing important for organisational process improvement. Therefore, improving the customer feedback system through digitisation is essential here.
Customer: In the first four years of operation, Ephesus hotel had performed well. With the declining nature of the hospitality services, the demand for the hotel among the customers has decreased. The majority of the occupancy rate of the hotel is observed in the holiday season. Throughout the year’s complaints against poor service quality, food quality and cleanliness have been increased. Proper hygiene and effective food options are the two major offerings of the hotels. After consulting with the customers, it has been observed that the hotel lacks timely service delivery. The food prices are higher than most of the local restaurants. Most of the customer feedbacks are not considered by the higher management of the hotel and they always do what they think to be right. An honest assessment of customer feedback is essential for the performance improvement of an organization (Díaz and Duque, 2021). Proper utilization of the customer feedback can help in the performance improvement of Ephesus resort.
4.1.1 Internal Bench–marking
Name of the quality tools:The involvement of the internal benchmarking supports a business organization to drive the data more accessible with the stakeholders. The internal benchmarking supports a hotel management to operate several hotels while using the same brand name. This will help the organization to develop the brand image of the company. The involvement of the different hotel management internal benchmarking tools will help the organization for the purpose of making development according to the situational requirement. Customer satisfaction is considered as the most important quality management tool. The involvement of the CSI or Customer Satisfaction Index tools will help the organization for the matter of developing the brand enhancing aspects of the company (Prayudha andHarsanto, 2020). The involvement of different CSI tools like NPS or Net Promoter Score, Customer Effort Score can help the management group of the Ephesus Resort hotel for measuring the customer satisfaction aspects of the hotel. The support of the GCC or Guest Comment Cards tool would support the organization to develop the internal benchmarking aspects of the Ephesus Resort hotel. This is considered as the widely used tool that can help a hospitality sector to measure the customer satisfaction aspects of a hospitality industry. The Ephesus Resort hotel must be required to analyse the customer satisfaction rate of the company. This will help the Ephesus Resort hotel for measuring the requirements of the customers. The involvement of the internal benchmarking system will also help the organization to analyse the drawbacks that are associated with the services of the Ephesus Resort hotel.
Timescale:The Ephesus Resort hotel must be required to measure a time for analysing the CSI factors. The Ephesus Resort hotel organization must take six months’ time to analyse the customer satisfaction aspects of the business.
KPIs influence: The support of the KPIs metrics would support the Ephesus Resort hotel for measuring the arrears for developing the services of the Ephesus Resort hotel. The Ephesus Resort hotel must analyze the average daily rate or ADR of the organization. This will help the organization to analyze the amount of the collected revenue. Therefore, analysing the revenue per available room or RevPAR will help the Ephesus Resort hotel analyse the revenue of a hotel during a certain period of time (Frenţ, Niculescu and Creinicean, 2017). The support of the price matrices will help the organization to develop the price matrices of the organization. The implementation of the ALOS or Average Length of stay is another factor that must be analysed by the hotel management group. Analysing the occupancy rate and the online review will also help to measure the KPIs matrices of the organization. The Ephesus Resort hotel must analyse the RevPAR Room Type Index or ReRTI and Market penetration index or MPI will help the organization to analyse the KPIs metrics of the organization.
Internal benchmarking resources: The involvement of the different internal benchmarking resources will help the Ephesus Resort hotel for the matter of developing the business developing aspects. As the internal benchmark procedure of the company can be developed through the support of different CSI tools like the customer survey questionnaire, scoring cards are the essential resources that can be used for the internal benchmarking aspects of the Ephesus Resort hotel.
Effectiveness of the monitoring facilities:The support of the internal benchmarking system will help the Ephesus Resort hotel to determine the metrics that are associated with the business and it will also help the organization to analyze the cost effectiveness of the company (RespatiWulandari and Limmantoro, 2020). Therefore,the involvement of the perfect monitoring approach will help the Ephesus Resort hotel for developing the business aspects of the company. As the internal benchmarking system would be done through the support of the CSI tools, therefore the management group of the organization must be required to properly monitor the reviews and the opinion of the customers according to their services. As many of the customers have complained about the sustainability aspects of the Ephesus Resort hotel, therefore the involvement of the digitalized monitoring equipments will help the organization for the purpose of business developing aspects of the organization.
Benefits of TQM tools:The involvement of the TQM tools can help the business organization to generate an independent perspective to analyse the internal performance of the company. It will also help the organization for the matter analysing the performance gap of the organization, therefore, it will impact the quality developing aspects of the company (Gohar and Indulska, 2019). As a result, it will help the Ephesus Resort hotel for developing the performance aspects of the company. As the TQM tools that will be utilized by the Ephesus Resort hotel are based on the Customer Satisfaction Index, therefore it will also help the organization to analyse the customer’s perspective toward the hotel. It will also help the organization to analyse the factors that are associated with the customers’ requirements.
Challenges of TQM tools:The involvement of the TQM tool for the purpose of developing the internal benchmarking can arise different problems that are associated with the business developments. As the TQM tools are based on CSI or Customer Satisfaction Index equipment, therefore it may arise different challenges for analyzing the service aspects of the company due to cultural and social differences among the customers. The cultural and social differences among the customers will impact the result of the internal benchmarking. Sometimes, the problems may appear while comparing the data with another company data report. The improper implementation of the internal benchmarking approach may leave a negative impact on the customer developing aspects of the company.
Involved person:The involvement of the quality management group will help the organization to analyze the entire matter which is associated with the internal benchmarking.
4.1.2 External Benchmarking
TQM tools:The involvement of the external benchmarking tools will help the organization for the matter of analysing the snapshot of the organization. The external benchmarking aspects support a business organization to analyse the competitive marketing aspects of the business. As a result, it will impact the services that are provided by the organization to the customers (Utamiet al., 2021). The support of the TQM tools like informal or formal alliances, financial reports of the company and service reports of the organization can be considered as the best TQM tools for developing the external benchmarking aspects of the Ephesus Resort hotel.
Timescale:The Ephesus Resort hotel must require eight months of time scale to analyze the external benchmarking aspects of the company through the support of TQM tools.
External KPI influence:The support of the external KPI influence will support the organization for the matter of measuring the performance aspects of the company in a competitive business environment (Manning, 2018). The business objective of the company, financial goal of the business, customer satisfaction level and employee satisfaction will help the Ephesus Resort hotel to measure the business developing requirements of the company.
External benchmarking resources:The involvement of the external benchmarking resources can help the organization for the matter of developing the business developing aspects of the company. The financial report and the performance data of the Ephesus Resort hotel can be considered as the greatest resources of the external benchmarking resources of the Ephesus Resort hotel (Floričić, 2020). The support of the employee data analysis report can support the Ephesus Resort hotel for analysing the external benchmarking aspects of the business.
Monitoring procedure:The utilization of the perfect data analysis tools and technologies will help the Ephesus Resort hotel for the purpose of developing the external benchmarking aspects of the company. The Ephesus Resort hotel must involve the perfect team leaders for the purpose of analysing performance of the employees. This can be considered as the best monitoring approach for the analysing the external benchmarking aspects of the company.
Benefits of utilizing TQM tools:The involvement of the TQM tools for analysing the external benchmarking aspects of the company will support to make development in the business developing aspects of the business of the Ephesus Resort hotel in a competitive environment. The involvement of the TQM tools will support the Ephesus Resort hotel for analyzing the financial aspects of the business that are maintained by the Ephesus Resort hotel.
Challenges: The Ephesus Resort hotel may face different challenges while utilizing the TQM tools for analysing the external benchmarking aspects of the Ephesus Resort hotel. The problem might appear while gathering the business-related data. The involvement of inefficient financial management and data analysing groups can arise different problems that are associated with implementing the TQM tools. The improper utilization of the data analysis tools may arise several problems that are associated with utilizing the TQM tools.
Involvement: The excellent involvement of the data management department of the Ephesus Resort hotel will help develop the factors that are associated with the external benchmarking aspects of the Ephesus Resort hotel.
4.1.3 Capacity management
Quality tool: According to the case study analysis of the Ephesus Resort hotel it has come to know that the hotel is also dealing with several problems that are associated with capacity management. The insufficient arrangement of food items and drinking beverages are arising several issues with the customer satisfaction. The involvement of the perfect TQM tools in the capacity management aspects of the Ephesus Resort hotel will help to enhance the business developing aspects of the company (Talib and Rahman, 2021). The involvement of the capacity management software can help the Ephesus Resort hotel for developing the capacity managing aspects of the business.
Timescale:The Ephesus Resort hotel must require three months of time to properly implement the capacity management tools for developing the business aspects of the company.
KPI influences for capacity management:The Ephesus Resort hotel must maintain the different KPI influences for analyzing the capacity management aspects of the Ephesus Resort hotel. As the issue appears due to customer dissatisfaction, therefore the capacity management group of the Ephesus Resort hotel must analyze the customer satisfaction rate of the Ephesus Resort hotel (Lin et al., 2020). The budget estimation of the hotel and the analyzing the resources of the raw materials of the services that are provided by the Ephesus Resort hotel must be considered as the best KPI influences of the Ephesus Resort hotel.
Resources of the capacity management: The capacity management aspects of a hospitality industry are centred around the factors that are associated to five different segments such as food, pantry, lodging, recreation, travelling and tourism. The Ephesus Resort hotel must analyse the resources that are associated with these five different factors (Anttikoski, 2020). The resources of a hospitality industry are also included with the factors that are associated with different tangible assets like the bedding requirements of the hotel room and different intellectual resources. Therefore, the capacity management group of the Ephesus Resort hotel must analyze the resources that are associated with all the previously mentioned factors. The effective support of the supply chain management of the Ephesus Resort hotel will help the capacity management group of the organization to overcome several issues.
Effectiveness of the monitoring system:The effective monitoring approaches of the capacity management group will help the Ephesus Resort hotel in overcoming the issues that are associated with the capacity issues and customers dissatisfaction (Suveatwatanakul and Sukpatch, 2017). The capacity management group of the Ephesus Resort hotel must monitor the number of resources that are associated with the business developing aspects of the hospitality industry.
Benefits of TQM tools:The proper implementation of the TQM tools in the capacity management aspects will help the Ephesus Resort hotel for enhancing the capacity of the services that are associated with the hospitality business. It will also help to gather the positive responses of the customers. Moreover, it will help to develop the quality of the services and will enhance the image of the hotel.
Challenges of implementing TQM tools in capacity management:The capacity management group of the Ephesus Resort hotel might face different challenges while implementing the TQM tools in the Ephesus Resort hotel. The problem might appear due to the insufficiency in the resources of the service materials. The ineffectiveness of the supply chain management of the organization might create several challenges. Moreover, as the Ephesus Resort hotel would implement the TQM software, therefore the problem can appear due to inefficiency in utilizing the digitized TQM tools.
Involvement:The involvement of the capacity management group will help to properly implement TQM tools that are associated with the capacity management aspects.
4.1.4 Standardised operating procedure
Names of the TQM tools for Standardised operating procedure: The involvement of the Standardised operating procedure tools can help the Ephesus Resort hotel for developing workflow of the organization. The involvement of different cloud-based software supports to develop the aspects of Standardised operating procedure of the Ephesus Resort hotel.
Timescale: The Ephesus Resort hotel must require three months of time for implementing the Standardised operating procedure tools.
KPIs for Standardised operating procedure: The involvement of the different KPI measurement can help the Ephesus Resort hotel for analysing the requirements of the Standardised operating procedure (Hossain et al., 2020). The KPIs factors can be measured while analysing the rate of employee turnover, the support of labour materials, the aspects of the training system of the Ephesus Resort hotel, the value analysing system of the customers, and the hotel organization must analyse the cash flow aspects. However, all these factors will help to analyse the KPIs for Standardised operating procedure.
Resources:The current organizational business operating data are considered as the most essential resources of the Standardised operating procedure. The perfect training equipment is also considered as the greatest resource of the Standardised operating procedure (Chang et al., 2021). However, the involvement of all these factors leaves a great impact on the Standardised operating procedure of the hospitality business.
Effectiveness of the Standardised operating procedure:The support of the effective Standardised operating procedure will help the Ephesus Resort hotel for minimizing the rate of downtime learning procedure. It also supports understanding the role of individual employees of a business organization. Moreover, the support of the standardised operating procedure supports to maintain the consistent performing aspects of the hospitality business. Therefore, it will help the organization for the matter of developing customer-based business developing aspects of the company.
Effectiveness of monitoring system:The involvement of the perfect monitoring aspects of the company will leave a great impact on the aspects of standardized operating procedure. The involvement of the perfect management group and the perfect quality measurement procedure will help the Ephesus Resort hotel for developing aspects of the standardized operating procedure (Buhalis and Leung, 2018). The implementation of the several digitalized equipment will also support the organization to enhance monitoring facility of the Ephesus Resort hotel.
Benefits of standardized operating procedure:The involvement of the standardized operating procedure supports a business organization leaves a positive impact on the promotional approaches of the business organization. Therefore, the implementation of the standardized operating procedure also supports making improvements in the Employee Training and Management aspects of the hospitality industry.
Challenges of standardized operating procedure:The Inadequate support of the SOPs can arise several challenges, therefore the problems might arise due to the lack of proper maintenance. The ineffective training system can cause different problems.
Involvement:The effective support of the operation management group will help the organization to implement the TQM tools of the Standardised operating procedure.
From the study it has been identified that the case organization intends to enhance its performance and manage quality for attaining strategic goals. The identified tools for total quality management shows how the KPIs can be effective in attaining business objectives of the selected hotel. From the above discussion “Performance Management System” or PMS seems effective as it might help the organization in managing the performance of the employees, teams as well as work (Hervaniet al., 2021). Apart from that for providing high service along with responsiveness the organization should be focused on “Customer Service System” where customers can easily put query, get quote and provide feedback based on which the Customer Care Unit can response properly. Additionally, implementation of “Capacity Management System” is also necessary within the business operation of the organization for estimating required resources for enhancing targeted performance (Hervaniet al., 2021).
From the above-mentioned discussion it can be concluded that effective operation management in hospitality industry helps in enhancing internal performance of the organization and that helps in serving the consumers in a better way. As per the The Ephesus Resort Hotel case study, the organization is thriving to identify issues related to the performance so that the value of this Four-Star Hotel can be enhanced in the market. In order to identify the issues internal and external business environment has been identified based on which clear action plan considering the implication as well as implementation of quality management tools have been presented for attaining the aim of this report. From the discussion the issues have been identified which revolves around, Proper activity planning to achieve organisational aims and Improvement of customer feedback method.
Based on the identified issues few recommendations are being enumerated below to mitigate the described issues.
- The management should keep track on implementation of Customer Satisfaction Index Equipment by implementing “Customer Service System” and “Performance Management System” within the operation process. As a result of the implementation of these systems the organization can be able to manage people (both employees and consumers) from two different angle. With the implementation of the systems the performance of the organization might enhance by 15% within the next 6 months.
- The organization needs to estimate capacity of the required workforce for serving the consumers in a better way. With the application of this strategy the consumer satisfaction level might enhance by 10% within the next 3 months.
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