Hospitality Operations Management

Higher National Diploma in

Unit Title: - Hospitality Operations Management

Assignment Title: - Assignment 1 Business Development Plan

Student Name &
Student to add full name
Student to add data number

Unit Title and
Hospitality Operations Management
Marco van Dyk

September 2013 Group

Issue Date:
Week Commencing

22 September 2014
Draft Submission:
19/11/14 during the class session

Final Submission:
Friday 28/11/14 by 5pm to turnitin ONLY.

IV Name & Date:

Unit Learning Outcomes:

LO1: Understand the operational and economic characteristics of hospitality operations

LO2: Understand product development within hospitality environments

LO3: Understand pricing and profitability concepts within hospitality operations

Assignment Brief:

You are required to investigate the current state of a hospitality business and suggest a new product or service to develop the business further. You will have to investigate operational and economic factors that influence the business to inform your new concept. You will then need to discuss and explain how you would develop this considering product development stages and pricing methods.

Submission Format

This assignment must be submitted in the form of a Business Development plan. This should be in the format suggested in the class hand-out and include a content page, appropriate paragraphs, and a bibliography. All discussions must be supported with existing research and theories, and all sources must be referenced accordingly using the Harvard referencing system. You must include a full bibliography at the end.

Your report must be submitted via TurnItIn.

Class ID: 807388
Password: marco


Key Task:

1.1 analyse the nature of

different hospitality product
- Investigate and explain the different

and service areas
elements and areas within a chosen

hospitality organisation that must be

1.2 evaluate the different
managed to ensure businesses a business

influences affecting patterns of
performs well.

demand within hospitality
- Also consider and discuss factors and

influences that affect demand for products

or services in a chosen business.

1.3 compare customer profiles

and their differing expectations
- Explore and explain the different types of

and requirements in respect of
customers that may frequent hospitality

hospitality provision
organisations, and in particular, in the

business you chose to discuss.

1.4 analyse factors affecting
- Identify the spending power of guests that

average spending power in
frequent your business and factors that

hospitality businesses
affect customers spending power in general.

Explain the influence this could have on your

business development.

2.1 evaluate the key stages in

product and service
- Considering your customer profile and

development applied within a
spending power identified previously in 1.3

hospitality operation
and 1.4, create a new offering in your

business to address their specific needs. This

2.2 analyse the features which
may be for a certain segment of your

contribute towards the
customer profile, or the whole customer

customers’ perception of
base. Make use of secondary research to

products and services
support your new concept. (2.1)

- Discuss the key stages of developing your

2.3 assess the opportunities and
new product or service in your specific

constraints affecting product
business. Also explain the main features that

and service development
influence a customer’s perception of a new

within a hospitality environment
product or service. This must be specifically

focused on customers in your organisation

and explain why this new offer will appeal to

them. (2.2 & 2.3)


2.4 evaluate different

merchandising opportunities for
- As part of introducing your new product or
hospitality products and
service, consider possible merchandising
opportunities that may assist in promoting the

new concept. Highlight a variety of possible

options and explain the reason for you final

choice of merchandise ie: why was that the

best choice to support your new concept?

3.1 evaluate different methods

of pricing taking into account
- Outline and discuss how you would price
additional pricing
the new product or service, accounting for
the costs and possible return on your initial

investment. Refer to theory and secondary
3.2 assess the factors which
research to support your chosen pricing
affect revenue generation and
method. Investigate the various factors that
profitability in hospitality
would influence the amount of revenue and
profit you would make.


Grade Criteria at a Pass:

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


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
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
Grade Criteria at a Merit – In addition to the above Pass Criteria:
M1 - Identify and apply strategies to find appropriate solutions - effective judgements have been made about a suitable new product or service for a particular customer profile in a hospitality organisation.
M2 - Select/design and apply appropriate methods/techniques – relevant product development theories and models been applied to support recommendations in discussions
M3 - Present and communicate appropriate findings - the appropriate structure and approach has been used as outlined in the guidance provided during the sessions
Grade Criteria at a Distinction - In addition to the above Merit criteria:
D1 - Use critical reflection to evaluate own work and justify valid conclusions – realistic new product/service have been proposed against defined characteristics for success
D2 - Take responsibility for managing and organising activities - substantial research and investigation have been done into the chosen business to plan and organise a new concept and merchandise
D3 - Demonstrate convergent/lateral/creative thinking – innovation and creative thought have been applied to create a new concept for an existing customer base in an hospitality organisation.