Operational improvement is very fundamental and essential requirement which needs continuous efforts and development for organisation so that they are successful in market and working in proper environment as well. Operational efficiency will be playing very important role in overcoming challenges and strengthening up their Key Performance Indictors or USP. Managing a company and then its operations are very much important which will be driving growth or profitability into market. This present report is focusing on three areas of current operations and then developing road map to maturity of service organisation of UK which is Baglioni Hotels. The company is an Italian based hotel which is owing about 9 luxurious hotels in Italy, France and in 2004 opened up in UK. Further discussion will be on what company is doing to compete in market of London so that they could be having higher share of profits and what skills and capabilities they would be requiring to compete in market area. Impact of new management system on service delivery system and choice of Baglioni Hotel’s product and service is also studied in last.
1. How would progress of company be tracked by goals?
Baglioni Hotels alike any other company operating within hospitality industry is having certain areas of operations including like that of human resource, finance, sales, security, public relations, food and service and housekeeping. The job and working of operational manager of Baglioni Hotels will be dealing with customers, employees, supervisors with running of hotel on smooth bases. So among these areas of operation of hotel only 3 of them will be included or studied into this report including marketing and public relations, human resources management and finance (Agarwal and Brem, 2015). All three of them are interlinked with each other, having their own long and short term goals with that of overall organisation which they need to achieve. On the same time it is essential that company is been able to measure the progress of all the goals and objective set so that they could be judging their actual performance against the target set.
The goal of various operations will be including like that of:
Marketing and public relations- reaching out wider areas of market so that sales could be improved over coming 12 months.
Human resource management- involving or selecting qualified and capable labour force having quality to handle customer in good way so that customer retention rate could be enhanced over 6 months
Finance department- this area will be dealing with collecting up of more finance so that company could plan to open new set up in other parts of UK. While lowering down cost in each area of working of Hotel is also essential for goal.
These goals set up need to be evaluated based on their level of performance and what progress company is making based on their actual achievement and set targets. There are many tools, techniques and measures which Baglioni hotel should be taking place so that their targets and goal could be evaluated and progress is tracked (Cheng and et.al., 2017). As target of marketing and public relations department is reaching out to larger number of audience so that its base of customer could be increased which is improving sales in coming 12 months. So there are many measures or techniques which are helping company to evaluate and track its performance from the set targets.
Conversion rate- this is the percentage of visitors who are visiting the site of company or viewing their content this will be encouraging Baglioni hotels in building up of more customers with help of website. The rate of conversion is good performance matrix of measuring or tracking set goals which are highly based on industry like in hospitality sector it is around 2-3%. The goal of Baglioni hotels is to increase reach of company with the help of correct marketing tools like that of website content or other social media marketing. So this could be tracked with help of conversion rate which is measurement of effectiveness of marketing targets.
Overall employee turnover- this is another tracking criteria which could be analysing what number of employees are voluntarily leaving organisation each year. This is calculated by adding number of employees towards the starting of year with that in end and then dividing those by two so that average number could be find out. So this will be helpful in tracking down qualified and capable labour forces who remain within organisation for longer duration of time. This is target of human resource department and could be fulfilled only when company is making its efforts in selection and retention of employees for longer duration.
Operating cash flow- this is one of the measures which organisation could be using so that they are been able to understand ability of company in paying up of delivery and routine working (Dalmarco and Barros, 2018). As finance department is setting target of lowering down of cost of firm so that they are having larger amount of revenue if cost is low then.
2. Choice of potential field of hotel
Employees are the main essence of growth, increase in performance, improvement in revenue, gaining larger share in market and also retention of customers especially in service industries. In service industries like that of Hospitality employees are having direct interaction and communication with customers of firm so it is required that Hotel is focusing on their employees more. Human resource department is that which is concerned with selecting, reviewing, recruiting, training and retaining employees it is the most part of any organisation. Hospitality industry is that one area which is including best and qualified professionals so that they are giving their best service to customers and achieving targets of company as well. This area is been selected so that Baglioni Hotels could be focusing on it as it is the most essential and important factor for company to focus on.
All employees of companies are very much essential and important so it is required for management of hotel so that it is easy to attain goals and targets. The objective which is set by human resources department is to select qualified and capable personals who are having quality to handle customers which is helping in retention of potential customers. This particular area or field is been chosen due to its increasing importance within service sector of economy so it is the most potential area (Lu and et.al ., 2016). It would be including all vital requirements of company like that related to qualified and skilled labour who would be helping company in achievement of their targets and goals.
3. Competitive advantage
Competitors are the part of organisation and markets who would be becoming more and more important for firm so that they could be analysing their presence within markets are who the market sharer are. On the other hand having it is essential for firms that they are having competitive advantages over their rivals or they are having something especial within their products, services or organisation which is making them stand differently within market place. Policies and strategies of competitors are also important for companies to know so that it is easy for Baglioni hotel what their rivals are planning to do and what they need to do. So this is helping company in gaining over their competitors which is essential for them to analysis their current market positions. So the most important part within this will be identification of competitors of hotel who are operating within UK and then knowing their unique selling point or what kind of products they are offering within market.
Then other than this it will be essential that hotel is knowing their own customers from within markets or expectation and demand of consumers. As the demand could be ever changing and could be unstable due to economic conditions as well. Once company is knowing their customers it will be easy for them to set up differentiation strategies or setting up of their marketing plan. It is vital that Baglioni is been forming up strategies for fighting up with competitors who are there into market of London so company could be using Porter’s generic competitive strategies (Márquez and et.al., 2017). This strategy is used for competing or taking out methods of reducing competition within market as well.
Porter’s generic competitive strategies-
The position of firm within industry is determined that whether it is profitable into industry or not either they are gaining below or above average of industry. The basis on which above industry average is determined is that after profitability within sustainable competition of market. The competitive advantage of company within organisation could be related to that of two factors like that of lower cost and differentiation so both of them could be included within. Both the two type of advantages of company should be in linkage with scope and goal which is been set by management of organisation that they are achieving them (Porter's Generic Competitive Strategies (ways of competing),2018). There are majorly three generic strategy used which is focus, differentiation and cost leadership all of them will help company to achieve competitive advantage within market area. Focus in this of two types stating cost focus and differentiation focus.
This is the most commonly used strategies company use in order to remain within market which is making them to survive with all their competition. Differentiation strategy will be helping company to identify what unique they are having in terms of their service or products which is making them stand differently in the market. While purchasing of products customers always include the positive or unique feature of that particular company or their services which is offered by them (Nardon and et.al., 2018). So it is important for company that they are also laying stress on their strength where they are ahead of others in same industry or market. But it is not necessary that company is not following only one of their product or positive aspect rather they should be including almost 3 to 4 steps. Differentiating service or product of company will be making them stand in unique way among their competitor. This should be other than pricing strategy of company as they could not lay more stress on their low price than others in market. While differentiation strategy is not used for small business which are been operating as they are not having any uniqueness into their products. So Baglioni hotel should be having their focus on quality of service which they are good at but price or cost to firm on their operations are incurring must not be part of differentiation strategy of company.
This is when firm is able to set low cost of their products in market than that of other competitors which will then be enabling company to reduce their price and profits are also increased (Roblek and et.al., 2016). But if company is only reducing their cost and not the price of products then they will be having higher profit margin so their share of market will also be more. This cost leadership is not that much easy for any company to achieve as they are been able do this only after they are attaining maturity stage in market. but once company is been able to achieve this stage of maturity then it will be easy for them to lower down their cost of manufacturing and producing products and services. This lower down in cost will be done with various tools and techniques adopted by company like that of technological advancement, using economies of scale and also having access to raw materials. With the help of these factors which are been included company could be easily lowering down their cost of manufacturing, selling and promotion of their products and services into markets. If Baglioni hotels are able to achieve this cost leadership into market then it becomes easy for them to attain higher number of profits and will be becoming best performer in industry as well.
With Baglioni hotels there are three major ways to accomplish this cost leadership in market which will be able to make them increasing their return on investment. High asset utilisation is one of the most commonly used approach which is there into cost leadership. This is representing that all types of fixed cost to assets will be spend by Baglioni hotels on large units of products or assets of firm which will then be lower down unit cost of products and services of firm. Then they could also be using lower indirect and direct operating cost of firm which is been achieved only if company is been able to offer all customer higher standard of products. Other than this company will also be offering their customers good quality of products at lower price and also the personalise service to them (Schoffstall and Arendt, 2016). the third dimension will be that of controlling value chain into all functional group with ensuring lower down cost like that of finance, inventory, IT and marketing related.
This will be having focus on various aspect of quality of product either on targeted segment on or price or lowering down of cost of products. So this focus is having 2 variables which are cost and differentiation focus if firm is seeking to gain more market share within industry. Both the above stated strategy of company will be making difference between targeted segment and what is the other segment within industry. All the targeted segments should be potential buyers who are having need of products and also able to buy that particular products.
4. Capabilities and skills required
In way to achieve focus, differentiation and cost leadership which will be leading to attainment of competitive advantage into market or industry Baglioni hotel will be requiring to have certain capabilities and skills required (Trappey and et.al., 2017). These skills and capabilities is thus helping company to achieve their targets and goals of firm like that of cost leadership or differentiating uniqueness in quality of products. Other than this there are also required resources which will important for company to carry out so that their targets are been met that too on timely basis. These skills, capabilities and resources will be required to be there with company that is suitable for Baglioni Hotel especially that linked with technological advancement within industry.
This is than most important capability which must be there with company that they are using best form of technology within their working and operations. Technology is the most important part of company as it will be helping them to set their targets and then attaining them all. Baglioni hotel can also use social media channels for advertisement and promotion of their products and services which is the mostly used platform for marketing.
Management of staff-
This is also a skill which is required by company which should be there into their staff and employees of firm. Management and administration of employees is including various aspect like that of motivating them, giving them compensation and then helping them to retain within company for longer duration of time. Staff management is related to setting their goals which will be linked to goal and objective of firm as well.
Enhancing experience of customers and clients-
This is the most important part of service industry that is related to customers, giving them quality of products, handling them in most efficient manner and lastly enhancing their experience so that they are been retained within company for longer duration of time. This enhancement of their experience could be done at time when company is having good quality and skilled labour force (Ustundag and Cevikcan, 2017). Experience of customers is most important for company which is enabling Baglioni hotel to include more number of clients who are then associated with firm.
5. Management systems required to build, operate and maintain these capabilities
Management of technology is also important for company which is allowing Baglioni to manage discipline and thus creating competitive advantages. There are number of systems of management which is building, operating and maintaining the capabilities of staff and their skills development as well. There is also an included part of technology management which is enabling Baglioni hotel to make and formulate strategy and forecasting as well.
Other than this there are many management theories which need to be applied by company so that their staff could be motived and managed as well. The management theories which Baglioni Hotel should be using theories like that of systems theory. Under this theory the aim will be that of overall achievement of organisational goals and targets which is thus helping company in their effective working and understanding of functions and cycles related to the organisation.
6. Impact of new management system on service delivery system
The new management which will be related to achievement of goal and targets of company which will be essential for them to use the System Theory of management (Nardon and et.al., 2018). It will also be impacting or changing service delivery method choice and products of company as well that is used profiling of services. The new system if is used and implemented in correct manner then only will be impacting the service and products of Baglioni hotel. The only way is to correctly and authentically setting up of system theory of management so that it is helpful for company in their longer run.
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It is concluded from the above report that:
- In order to track the goal and objective of firm it is required that they are firstly setting up targets based on each department and then using appropriate tools and methods.
- The tools and methods which could be used are like that of conversion rate, overall employee turnover and operating cash flow. All of them could be useful for company in long and short run as well.
- Other than these company must be choosing human resource management which is the most potential field and area for development and growth of firm. This will be useful and helpful for Baglioni hotel to efficiently manage their staff.
- In order to gain competitive advantage firm must be using Porter’s Generic model which is telling them to enhancing their unique identity of product in market, lowering down cost for attaining leadership and focusing on either of them.
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