Unit 12 Hospitality Operations Management



                                               

Assignment

Assignment front sheet

Qualification
Unit number and title
Pearson BTEC Level 5 HND Diploma Hospitality Management
Unit 12 Hospitality Operations Management
Student name
Assessor name

Arminder Singh
Date issued
Completion date
Submitted on
20/10/2014
14/12/2014



Assignment title
Assignment 1 of 1

LO

Learning outcome
(LO)
AC
In this assessment you will have the opportunity to present evidence that shows you are able to:
Task no.

Evidence
(Page no)
LO 1
Understand the operational and economic characteristics of hospitality operations
1.1


analyse the nature of different hospitality product and service areas
1

1.2
evaluate the different influences affecting patterns of demand within hospitality operations
1

1.3
compare customer profiles and their differing expectations and requirements in respect of hospitality provision
1

1.4
analyse factors affecting average spending power in hospitality businesses
1

LO 2
Understand product development within hospitality environments
2.1
evaluate the key stages in product and service development applied within a hospitality operation
2

2.2
analyse the features which contribute towards the customers’ perception of products and services
2

2.3
assess the opportunities and constraints affecting product and service development within a hospitality environment
2

2.4
evaluate different merchandising opportunities for hospitality products and services
2

LO3
Understand pricing and profitability concepts within hospitality operations
3.1
evaluate different methods of pricing taking into account additional pricing considerations
3



3.2
assess the factors which affect revenue generation and profitability in hospitality operations
3

LO4
Be able to use appraisal techniques to analyse and improve operational performance
4.1
apply different performance measures and appraisal techniques to individual aspects of hospitality operations, the product and the whole operation
4



4.2
determine the effectiveness of different quantitative and qualitative appraisal techniques and their application to hospitality operations
4



4.3
apply approaches to business analysis, evaluation and planning appropriate to hospitality operations, making proposals for action
4



Learner declaration
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.


Student signature:                                                         Date:






In addition to the above PASS criteria, this assignment gives you the opportunity to submit evidence in order to achieve the following MERIT and DISTINCTION grades


Grade Descriptor

Indicative characteristic/s

Contextualisation

M1
Identify and apply strategies to find appropriate solutions
  • complex problems with more than one variable have been explored

  • An effective approach to study and research has been applied.

complex problems with more than one variable have been explored in the analysis the nature of different hospitality product and service areas.(1.1)
an effective approach to study and research has been applied in Analyse the nature of different hospitality product and service areas & effective judgements have been made in evaluating the different influences affecting patterns of demand within hospitality operations (1.2)


M2
Select/design and apply appropriate methods/ techniques
  • a range of sources of information has been used.

  • complex information/data has been synthesised and processed.

  • a range of methods of performance measures and appraisal techniques.

  • the selection of methods and techniques/sources has been justified.

  • relevant theories and techniques have been applied.
a range of sources of information has been used in comparing customer profiles and their differing expectations and requirements in respect of hospitality provision. (1.3)
complex information/data has been synthesised and processed in analysing factors affecting average spending power in hospitality businesses. (1.4)

relevant theories and techniques have been applied in evaluating the key stages in product and service development applied within a hospitality operation. (2.1)

the selection of methods and techniques/sources has been justified by assessing the opportunities and constraints affecting product and service development within a hospitality environment. (2.3)
the selection of methods and techniques/sources has been justified in evaluating different merchandising opportunities for hospitality products and services. (2.4)

the selection of methods and techniques/sources has been justified in evaluating different methods of pricing taking into account additional pricing considerations. (3.1)

a range of methods of performance measures and appraisal techniques to individual aspects of hospitality operations, the product and the whole operation have been applied. (4.1)

the selection of different quantitative and qualitative appraisal techniques has been justified in application to hospitality operations. (4.2)


M3
Present and communicate appropriate findings
  • A Coherent, logical development of principles/concepts for the intended audience

  • appropriate structure and approach has been used

Coherent, logical development of principles/concepts for the intended audience in analysing the features which contribute towards the customers’ perception of products and services. (2.2)

the appropriate structure and approach has been used in assessing the factors which affect revenue generation and profitability in hospitality operations. (3.2)
.

D1
Use critical reflection to evaluate own work and justify valid conclusions
  • Self-criticism of approach has taken place.

  •  Conclusions have been arrived at through synthesis of ideas and have been justified.
Conclusions have been arrived at through synthesis of ideas and have been justified in Analysing the nature of different hospitality product and service areas. (1.1)
Self-criticism of approach has taken place in analysing factors affecting average spending power in hospitality businesses. (1.4)
Conclusions have been arrived at through synthesis of ideas and have been justified in applying different performance measures and appraisal techniques to individual aspects of hospitality operations, the product and the whole operation. (4.1)

D2
Take responsibility for managing and organising activities
  • Activities have been managed

  • The unforeseen has been accommodated.
Student should have submitted the work on time and shown organisational skills. Activities have been managed and the unforeseen has been accommodated. (1.1, 1.2, 1.3, 1.4,2.1, 2.2, 2.3, 2.4, 3.1, 3.2, 4.1, 4.2, 4.3)
D3 Demonstrate convergent/lateral/creative thinking


  • Convergent and lateral thinking have been applied.
Convergent thinking have been applied in evaluating the key stages in product and service development applied within a hospitality operation. (2.1)
Lateral thinking have been applied in assessing the opportunities and constraints affecting product and service development within a hospitality environment. (2.3)
Lateral thinking have been applied in assessing the opportunities and constraints affecting product and service development within a hospitality environment. (2.4)
Convergent and lateral thinking have been applied in assessing the factors which affect revenue generation and profitability in hospitality operations (3.2) and planning appropriate to hospitality operations, self-evaluation has taken place in making proposals for action working with food. (4.3)



Assignment brief
Unit number and title
Unit 12 Hospitality Operations Management
Qualification
Pearson BTEC Level 5 HND Diploma in Hospitality Management
Start date
20/10/2014
Deadline/hand-in
14/12/2014
Assessor
Arminder Singh

Assignment title
Assignment 1 of 1
Purpose of this assignment
This unit enables you to gain understanding of the operational and economic characteristics, product development, pricing and profitability concepts and gain skills to analyses and improve operational performance in hospitality. It will introduce you to the management principles of hospitality operations. It is intended for those of you who aspire towards a career in general hospitality management. You will focus on a wide range of operational and economic characteristics, including customer profiles and patterns of demand. This will lead to the consideration of product development and the opportunities and constraints that affect such development. You will also consider a range of pricing and profitability strategies, using ICT software to model different approaches.
Finally, the unit develops your understanding of the appraisal process in relation to hospitality operations management and how different aspects inter-relate with each other.
Scenario
As a part of HND Hospitality programme, You are on internship for 3 months at a reputed hotel. You have been given the opportunity to gain understanding and knowledge of the different aspects of hotel management and operations. After the completion of your internship, you have to prepare a report on the various aspects of hotel operations management to apply for the position of Assistant Manager for another hotel, which is newly acquired by the Hilton group.

Task 1 : (LO 1: 1.1, 1.2, 1.3 and M1, M2, D1 & D2)

1.1: During your internship, you have discovered many products and services offered by the hotel. Each product/service is diverse in its nature. As a part of a report, conduct an in-depth investigation into the different areas of your hotel. This could include operational characteristics, i.e what they do and how they do it. This will help you to analyse the nature of different hospitality product and service areas.(1.1)

You should consider:
·         Nature of hospitality products and services: product and service areas e.g. food and beverages, rooms division, conference and banqueting; tangible and intangible elements; perishability; marketing and sales; plant; equipment; supplies and commodities

1.2: The Hospitality industry is having variable demand patterns. Whether it is seasonality, weekdays/weekends etc. they affect hospitality operations. As a part of the report, you have to evaluate the different influences affecting patterns of demand within hospitality operations. (1.2). You could examine the opportunities and constraints of these demand patterns and consider what works well and what does not work well for your hotel. For example; if a weekend is particularly busy due to an event, what is the impact or effect on the departments.

You should consider:
·         Patterns of demand: patterns e.g. opening hours, seasonality, time of day/week, sociological influences, healthy eating and drinking patterns, food and fashion trends, accommodation trends, cultural, regional and ethnic influences, pricing and economic factors, elasticity of demand

1.3: Most consumer markets are made up of groups of customers with different sets of expectations about the products and services that they want to buy. As a part of report, you have to compare customer profiles and their differing expectations and requirements in respect of hospitality provision. (1.3). you could identify and explain different types of customers and their expectations in relations to meal experiences, prices for the rooms service, food and drinks and other service charges and cleanliness and hygiene expectations

·         compare customer profiles and their differing expectations and requirements in respect of hospitality provision.(1.3)

You should consider;
·         Customer profile: characteristics e.g. spending power, types of hospitality business, menu/accommodation range, pricing considerations, expectations and requirements, the meal experience

1.4:  There are numerous factors influencing investments in hotels, restaurants, pubs, bars and other hospitality businesses operations. As a part of report, by using examples from the hospitality businesses, analyse factors affecting average spending power in hospitality businesses. (1.4). you could explore the factors affecting financial investment and costing decisions by considering the level of operations and standards of the service provided to the customers by the different hospitality businesses. Furthermore, you could consider the factors which influence spending power of the customers on restaurants, hotels, bars, pubs and other hospitality outlets.

You should consider;
Management issues: issues e.g. integrated planning and resourcing, business and operational plans, staffing, finance, decision-making (gathering information and data, analysing and evaluating data, reaching decisions, forecasting), operating procedures and systems, control systems, technical and procedural standards, service standards, quality systems, team working and team leading, scheduling, training


To achieve M1:
  • complex problems with more than one variable have been explored in Analyse the nature of different hospitality product and service areas.(1.1)
  • an effective approach to study and research has been applied in Analyse the nature of different hospitality product and service areas & effective judgements have been made in evaluating the different influences affecting patterns of demand within hospitality operations (1.2)
To achieve M2:
  • a range of sources of information has been used in comparing customer profiles and their differing expectations and requirements in respect of hospitality provision. (1.3)
  • complex information/data has been synthesised and processed in analysing factors affecting average spending power in hospitality businesses. (1.4)

To achieve D1,
  • conclusions have been arrived at through synthesis of ideas and have been justified in Analysing the nature of different hospitality product and service areas.(1.1)
  • Self-criticism of approach has taken place in analysing factors affecting average spending power in hospitality businesses. (1.4)
To achieve D2:
  • Student should have submitted the work and passed in first attempt. Activities have been managed and the unforeseen has been accommodated.


Task 2 (LO 2: 2.1, 2.2, 2.3, 2.4 and M2, M3, D3)

2.1: Hospitality operations have been changed in many ways. In the recent times, Due to rapid change in customer taste and preferences, technology; hospitality businesses have developed products and services to cater customer needs. As a part of the report, evaluate the key stages in product and service development applied within a hospitality operation. (2.1) you could examine the key stages in product and service development applied within a hospitality operation by considering the customer needs, and customer-product relationship.

Consider the following:
Stages in product development: stages to include market research, market segmentation, idea evaluation, concept development, product development, advertising objectives e.g. persuade, create desire, create awareness, sell, increase market share, and develop brand loyalty, customer awareness.

2.2: Customer perception determines how much value your customers associate with product/service. The more a hotel understands how consumers make their choices -- their buying decisions -- the better the company marketing mix can be designed. As a part of report, by using examples from hospitality businesses, analyse the features which contribute towards the customers’ perception of products and services (AC 2.2). You could explore the features such as brand image, style of service, meal experience, service experience, ambiance etc which could contribute towards the customers’ perception of products and services.
Consider the following:
Opportunities and constraints: types e.g. brand image, nutrition and dietary requirements, disabled access and provision – accommodation facilities, restaurant access; availability of resources (human, financial, physical), standardisation, style of service, space utilisation.

2.3: New product development is an important way for businesses to stay ahead of the competition and continue to appeal to the changing needs of existing customers. A classic strategy for product/service development is simply focusing on customer needs. "Necessity is the mother of invention" they say, and this is certainly true when it comes to new product development strategy.  As a part of report, Assess the opportunities and constraints affecting product and service development within a hospitality environment. (2.3). you could examine the opportunities and constraints of rapid change in technologies social structures and economic changes affecting food and drinks and other service developments within a hospitality environment.

Consider the following:
Hospitality advertising: businesses e.g. pubs, restaurants, hotels, conference centres; products, types of media.

2.4: In the recent times, the concept of merchandising has been developed to a great extent in the hotel business. Whether it is online booking of a hotel room through booking.com or buying a discount voucher for a meal at Hilton from voucher.com. So as a part of a report, Evaluate different merchandising opportunities for hospitality products and services. (2.4). you could discover the advantages and judge the merits of merchandising by evaluating different merchandising opportunities for selling and distributing hospitality products and services.

Consider the following:

Merchandising objectives: objectives e.g. promote consumer/brand awareness, encourage consumer/brand loyalty, develop product image; support materials e.g. brochures, websites, posters, floor stands, tent cards, wall displays, table displays, menus, flyers, vouchers, promotions, clothing (tee-shirts, sweatshirts, baseball caps), free samples

To achieve M2,
  • relevant theories and techniques have been applied in evaluating the key stages in product and service development applied within a hospitality operation. (2.1)

  • the selection of methods and techniques/sources has been justified by assessing the opportunities and constraints affecting product and service development within a hospitality environment. (2.3)
  • the selection of methods and techniques/sources has been justified in evaluating different merchandising opportunities for hospitality products and services. (2.4)

To achieve M3,
  • Coherent, logical development of principles/concepts for the intended audience in analysing the features which contribute towards the customers’ perception of products and services. (2.2)
  • Wider research and Harvard referencing along with appropriate structure is required to achieve M3.
.
To achieve D3
  • Convergent thinking have been applied in evaluating the key stages in product and service development applied within a hospitality operation. (2.1)

  • Lateral thinking have been applied in assessing the opportunities and constraints affecting product and service development within a hospitality environment. (2.3)

  • Lateral thinking have been applied in assessing the opportunities and constraints affecting product and service development within a hospitality environment. (2.4)
To achieve D2:
  • Student should have submitted the work and passed in first attempt. Activities have been managed and the unforeseen has been accommodated. (2.1, 2.2, 2.3, 2.4)



Task 3 (LO 3: 3.1, 3.2, and M2, M3, D1 and D3)

3.1: Having decided what to be and offer and to whom, the next most important decision is price. Pricing is a critical decision for hotel’s success because it determines, first, whether or not the intended customers will purchase and second, whether they will be satisfied with the value offered and, thus, be willing to return. As a part of report, Evaluate different methods of pricing taking into account additional pricing considerations. (AC 3.1).  You could examine the affects of different pricing strategies for the Rooms service and food & beverages and consider charges for extra services provided to the customers.

Consider the following:
Methods of pricing: methods e.g. cost-oriented, market-oriented; additional pricing considerations e.g. service charge, cover charge, minimum charge.

3.2: During your internship, you have seen Revenue Manager is always busy having meetings on Revenue management. He is busy in forecasting day to day revenues from different sources. Analysing weekly, monthly and yearly revenue and finding ways to increase revenue by utilising all the available resources. As a part of the report, Assess the factors which affect revenue generation and profitability in hospitality operations. (3.2). you could examine the economic and social factors which affect revenue generation and profitability in hospitality operations. You can explore the opportunities and constraints of these factors on hospitality business profitability and sales revenue.

Consider the following:
Factors affecting revenue generation: factors e.g. sales mix, customer turnover, average spending power (ASP)
Factors affecting profitability: factors e.g. labour intensity, shelf-life, and elasticity of demand, standardisation, and portion-control.
To achieve M2,
  • the selection of methods and techniques/sources has been justified in evaluating different methods of pricing taking into account additional pricing considerations. (3.1)

To achieve M3,
  • the appropriate structure and approach has been used in assessing the factors which affect revenue generation and profitability in hospitality operations. (3.2)
  • Wider research and Harvard referencing along with appropriate structure is required to achieve M3.
.
To achieve D1,
  • conclusions have been arrived at through synthesis of ideas and have been justified IN evaluating different methods of pricing taking into account additional pricing considerations. (3.1)
To achieve D2:
  • Student should have submitted the work and passed in first attempt. Activities have been managed and the unforeseen has been accommodated. (3.1, 3.2)
To achieve D3,
  • convergent and lateral thinking have been applied in assessing  the factors which affect revenue generation and profitability in hospitality operations (3.2)
Task 4 (LO 4: 4.1, 4.2, 4.3 M2, D1 and D3)

4.1: A performance appraisal can be an important process for evaluating staffing and other operations. By understanding and using performance appraisal techniques, a manager can create a useful evaluation that assists the operations development. As a part of the report, Apply different performance measures and appraisal techniques to individual aspects of hospitality operations, the product and the whole operation. (4.1). you could apply range of appraisal techniques to measure the Revenue, cost, profitability and Product of different operations in the hospitality business.

Consider the following;

Approaches to appraisal: techniques e.g. fundamentals of appraisal, basis for effective
Operational appraisal, use of budgets, industry norms, information analysis, developing qualitative and quantitative data, analysing and evaluating data.

4.2: Hospitality manager’s use both qualitative and quantitative reports to track the work performance of individuals, operations and workforce as a whole. As a part of report, determine the effectiveness of different quantitative and qualitative appraisal techniques and their application to hospitality operations (4.2). You could discover the effectiveness of quality management techniques to measure the level of customer satisfaction and other operational achievements in hospitality operations. You could explore how the quantitative and qualitative appraisal techniques are applied in different operations in hospitality businesses.

Consider the following;
Appraising the operation: measures e.g. appraising the product, appraising operational
Performance measurement techniques, levels of consideration, when and how, quantitative, qualitative evaluation, external comparisons, quality management.

4.3: business analysis, planning for the future, evaluation of past performance, analysis of current strategies and finding solutions to the problems are inevitable part of the work life of hospitality operations manager.  As a part of report, Apply approaches to business analysis, evaluation and planning appropriate to hospitality operations, making proposals for action working with food. (4.3)
You could conduct business analysis to find out the strengths and weaknesses of the business operations and further evaluation could have been done to explore the opportunities and on that basis future planning can be done appropriately to implement change in the hospitality operations.

Consider the following;
Proposal for action: proposals e.g. forecasting future business requirements, levels of strategy, assessing organisational capability, strategic analysis and planning, implementation and managing change

To achieve M2:
  • a range of methods of performance measures and appraisal techniques to individual aspects of hospitality operations, the product and the whole operation have been applied. (4.1)

  • the selection of different quantitative and qualitative appraisal techniques has been justified in application to hospitality operations. (4.2)

To achieve D1,
• Conclusions have been arrived at through synthesis of ideas and have been justified in applying different performance measures and appraisal techniques to individual aspects of hospitality operations, the product and the whole operation. (4.1)

To achieve D2:
  • Student should have submitted the work and passed in first attempt. Activities have been managed and the unforeseen has been accommodated. (4.1, 4.2, 4.3)
To achieve D3,
• Convergent and lateral thinking have been applied in evaluation and planning appropriate to hospitality operations, self-evaluation has taken place in making proposals for action working with food. (4.3)
Evidence checklist
Summary of evidence required by student
Evidence presented
Task 1
Typed report on a word document submitted via My Page

Task 2
Typed report on a word document submitted via My Page

Task 3
Typed report on a word document submitted via My Page


Task 4
Typed report on a word document submitted via My Page



All items should be on the one word document and submitted via My Page.


Sources of information:

Advances in Culture, Tourism and Hospitality Research 1871-3173 Book series http://www.emeraldinsight.com/books.htm?issn=1871-3173
Advances in Hospitality and Leisure 1745-3542 Book series http://www.emeraldinsight.com/books.htm?issn=1745-3542
International Journal of Contemporary Hospitality Management 0959-6119 Journal http://www.emeraldinsight.com/journals.htm?issn=0959-6119

Heizer, J. and B. Render (2004) Operations Management: International Edition, 7th edition, London:     Pearson Prentice Hall.

Ninemeier, J. D., & Hayes, D. K. (2005). Restaurant Operations Management: Principles and Practices . Upper Saddle River: Prentice Hall.

Mill, R. C. (2006). Restaurant Management: Customers, Operations, and Employees, 3rd edition. Upper Saddle River: Prentice Hall.

Walker, J. (2008) Exploring the Hospitality Industry, New Jersey: Pearson.

Walker, J. R., & Walker, J. T. (2013). Introduction to Hospitality Management: Pearson New International Edition, 4/E. Essex: Pearson Prentice Hall.

Walker, J. R. (2014). Introduction to Hospitality: Pearson New International Edition, 6/E . Essex: Pearson.
Journals
These publications contain up-to-date industry information, articles about current developments, advertisements for job vacancies, management data and current food costs:
      Caterer and Hotelkeeper magazine
      Hotel Industry News
      Hospitality magazine.
Websites

The following web links will provide valid information and current data to support the research aspects of this unit:
      4Hoteliers: www.4hoteliers.com
      Caterer and Hotelkeeper magazine: www.catererandhotelkeeper.co.uk
      Big hospitality: www.bighospitality.com
      Hospitality magazine: www.instituteofhospitality.org; select ‘Publications’ then ‘Magazine’
      British Nutrition Foundation: www.nutrition.org.uk





Achievement Summary


Qualification
Pearson BTEC Level 5 HND Diploma in Hospitality Management

Assessor name

Arminder Singh

Unit Number and title
Unit 12 Hospitality Operations Management

Student name




Criteria Reference
To achieve the criteria the evidence must show that the student is able to:
Achieved?
(tick)
LO 1


1.1
analyse the nature of different hospitality product and service areas

1.2
evaluate the different influences affecting patterns of demand within hospitality operations

1.3
compare customer profiles and their differing expectations and requirements in respect of hospitality provision

1.4
analyse factors affecting average spending power in hospitality businesses

LO2


2.1
evaluate the key stages in product and service development applied within a hospitality operation

2.2
analyse the features which contribute towards the customers’ perception of products and services

2.3
assess the opportunities and constraints affecting product and service development within a hospitality environment

2.4
evaluate different merchandising opportunities for hospitality products and services

LO3


3.1
evaluate different methods of pricing taking into account additional pricing considerations

3.2
assess the factors which affect revenue generation and profitability in hospitality operations

LO4


4.1
apply different performance measures and appraisal techniques to individual aspects of hospitality operations, the product and the whole operation

4.2
determine the effectiveness of different quantitative and qualitative appraisal techniques and their application to hospitality operations

4.3
apply approaches to business analysis, evaluation and planning appropriate to hospitality operations, making proposals for action


Higher Grade achievements (where applicable)


Grade descriptor


Achieved?
(tick)

Grade descriptor

Achieved?
(tick)

M1: Identify and apply strategies to find appropriate solutions

1.1, 1.2

D1: Use critical reflection to evaluate own work and justify valid conclusions
4.1, 1.1, 1.4

M2: Select / design and apply appropriate methods / techniques

1.3, 1.4, 4.1, 4.2, 3.1, 2.1, 2.4
D2: Take responsibility for managing and organising activities
1.1, 1.2, 1.3, 1.4,2.1, 2.2, 2.3, 2.4, 3.1, 3.2, 4.1, 4.2, 4.3

M3: Present and communicate appropriate findings

3.2, 2.3

D3: Demonstrate convergent/lateral/creative thinking
2.1, 2.3,2.4, 3.2
Feedback will be given via My Page.



Glossary of BTEC Directive Terms
Account For
Requires more than a description. An explanation of the topic is needed giving reasons why.
Analyse
Break down a complex topic into simpler parts, exploring patterns and explaining significance
Assess
See Evaluate
Compare
Identify and explain similarities and differences
Contrast
Identify and explain differences
Demonstrate
Show awareness and understanding
Describe
Give description of major features
Discuss
Present and examine clearly the various views on a topic or issue
Evaluate
Examine the strengths and weaknesses and judge the merits of particular perspectives
Examine
Lay out the essential elements of an issue and investigate in detail.
Explain
Show clearly knowledge and understanding of a topic
Explore
Examine or investigate a topic or issue, often in an imaginative way
Identify
Pick out and describe main points
Illustrate
Give examples to clarify the argument or answer
Interpret
Clarify or explain the meaning
Investigate
A careful and systematic inquiry into a topic or issue
Justify
Provide reasons why something is valid
Outline
Identify the main features
Research
Use a variety of sources to establish facts or collect information
Review
Write a critical assessment
Significance
Consequence or importance
Specify
Identify clearly and definitely
State
Provide information in a brief uncomplicated way
Summarise
Give an account of the main points


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