Overview of the organisation and the market it operates inThe author is therefore referring to a hotel as an organisation of choice which is situated in Canberra known as Crowne Plaza Canberra. The hotel comprises of 296 rooms. Crowne Plaza as a brand has more than 400 hotels in more than 65 countries. Such an organisation offers facilities such as 296 rooms, an onsite fitness and wellness centre, self”parking, valet”parking, in”room dining, hotel bar which is used for light refreshments, a restaurant where ala-carte, buffet breakfast, lunch and ala-carte dinner is served 7 days a week, 24 hours business centre and also offers complimentary internet.
The hotel is therefore owned by the SB&G Hotel Group (Canberra). Now such a group owns a portfolio of hotels in Sydney, Melbourne. SB&G Hotel Group Pty Ltd. was founded in the year 2015 and are currently based in Melbourne and also have an additional office which is situated in Sydney. Crowne Plaza is therefore managed as well as operated by the InterContinental Hotel Group (IHG).
IHG is a British Multinational Hospitality Company which has more than 5000 different hotels in 100 countries. IHG has different brands and Crowne Plaza is one of it.Such an organisation’s industry is Hotel and therefore operates in a market where Business/ Travellers, Free Independent Travellers, Government Delegates, Leisure Travellers, International Visitors, Young Adults. Market Segmentation is defined as identifying distinctive groups on consumers that have similar needs, wants, and preferences for a product or a service. (Reed, Peter, 2015, p. 144). It can be said that such a Hotel is operating in a market by taking a proactive approach towards highly individualised and personalised marketing. Crowne Plaza Hotel gives the power to the buyers where they are seen customising the product offering up to their requirements. Such a strategy has been implemented by Dell Computers and can be characterised as mass customisation. (Reed, Peter, 2015, p. 144)Target Market Profile of Crowne PlazaAnalysis of the clients basically starts the demographics such as 28 and goes on until mid-40. Such an age group is equally balanced among men and women, mostly unmarried. There is another segment when it comes to their lifestyle. They are often classified as yuppies (young upwardly mobile professionals), muppies (middle-aged urban professionals) or dinks (double income no kids) who are after the purpose of leisure only where they can relax themselves, enjoy their time, mostly here for a vacation/ trip from another place. (Reed, Peter, 2015, p. 145) Crowne Plaza attracts families within the age of 30-40 with mostly 2 kids. Such type of clientele have specific needs as well as wants from the hotel as they are after kid-friendly places, inexpensive restaurants. The families prefer to stay in the hotel only for leisure purposes where kids can have an additional room for example interconnecting rooms or a room with two double beds. Families often get discounts to stay in a hotel as the hotel offers different packages to attract families in the above mentioned age group. Role of Operations in the Organisation and how it is related with the organisational strategy:An operations function has a critical role to play in how efficient and effective an organisation is. (Book, p. 3). The role of operations within this organisation is to provide services and products through a mix of the skills of the people employed within the organisation, the equipment available within the organisation and the service delivery systems or the manufacturing processes used. (Book, p. 3) Operations Management is responsible for providing and delivering services and products to customers by managing people, materials, resources and delivery systems involved, together with other activities that support this core task, managing people, managing both short as well as long ” term timescales, managing the strategic contribution such as day to day tasks, managing within budget, managing the inventory, communicating with other functions as their strategic task concerns providing those order winners and qualifiers for which it is wholly or jointly responsible, managing technology. (Book, p. 22) The role of operations in Crowne Plaza are managed through multiple departments which are therefore responsible to manage different aspects of the hotel by controlling, co-ordinating as well as planning the resources which are required to produce goods and services such as operations include Front Office Department ” the role performed in this department is selling rooms, check-in’s and check-out’s, selling parking etc, Food and Beverage Department ” the role performed in this department is to sell food and beverages, Housekeeping Department ” the role within this department is cleaning the rooms, public areas and toilets etc. Another example within Crowne is departments such as Sales and Marketing are responsible to promote products and services in the existing market and also in the new market through the help of third party websites such as Bookings.Com or Expedia, Finance Department which is responsible for maintaining cash flow, capital investments. (Book, p. 5) The main motive of the operations management is to achieve the organisational strategies such as remaining at all times unique in guest experience, customer service and always relevant in design and technology, long term strategies such as service quality and continuity, sustainable resource management, business health, community leadership and readiness for change. The organisational strategy at Crowne Plaza is to provide unique and enjoyable experiences for guest and staff at all times. Therefore the organisational strategies here can be only achieved if the operations management strategies if they are directly related with each other by providing consistency of excellent service which can be achieved by recruiting the right people with right skills, providing safe working environment, providing work life balance to the employees. Therefore it can be said that the operations management play a very important role in achieving the organisational strategies. Chain ModelThe term value chain characterises the activities that are performed within an organisation and links the organisation to its competitive advantage. Value Chain is a traditional manner of departmentalising stages of the business process. (Wright, 2004). A firm’s value chain is an interdependent system or network of activities. (Porter, Michael, 2013, p. 41)A value chain model includes five primary activities such as inbound logistics, operations, outbound logistics, marketing and sales and service and 4 support activities such as firm’s infrastructure, human resource management, procurement and technology. (Porter, Michael, 2013, p. 40). All the activities in the value chain contribute to buyer value. (Porter, Michael, 2013, p. 40)Crowne Plaza’s Value Chain Analysis:1) Primary Activities a) Inbound Logistics ” Crowne Plaza ensures that there is a smooth operation in 429 hotels in more than 65 countries around the world. The inbound logistics at Crowne Plaza is deals in a way where the hotel deals directly with the suppliers which therefore meet the hotel requirements, guest needs and it increases the value of products and services delivered to the guests.b) Operations ” Crowne Plaza brand which is owned and managed by IHG (InterContinental Hotels Group). There are 429 open hotels with 120,168 rooms and 79 hotels in the pipeline. Crowne Plaza Hotels and Resorts operations is divided in segments such as Americas, Europe, Middle East and Africa, Asia Pacific.c) Outbound Logistics refers to once the products/ services are made then it is distributed to distribution channels and clients. Crowne Plaza Hotels and Resorts offers services and products of high quality and of high standards. Offering rooms, laundry, turndown service, offering breakfast, offering airport transport services or products to clients and other distribution channels are some of the services and product examples. d) Marketing and Sales ” This factor assures that the products and services are being targeted to a respective target audience. Around the world Crowne Plaza Hotels and Resorts have employed more than 400 people in the sales and marketing department and the department has been assigned with the role of seeking bookings from corporate and leisure guests, third party travel agencies such as bookings.com and Expedia. The IHG Rewards Club program helps the department to a great extent as clients are entitled to return to the brand again as the members of the IHG Rewards Club receive points by staying in any IHG property such as Crowne Plaza or Holiday Inn which ultimately leads to free room nights and free room upgrades and they also earn points by dining in any of the hotel’s restaurant. Service ” Crowne Plaza Hotels and Resorts have a competitive advantage as it provides services of high quality and high standards. The employees of the Crowne Plaza Hotels and Resorts are fluent in languages such as Japanese, Mandarin, Korean, Spanish, French, German and English. The Customer Service is open 24 hours and can be reached by contacting the main office in Manila, Philippines or through the social media. Support Activitiesa) Infrastructure ” Crowne Plaza is an International Hotel Brand with many resorts around the world. The main motive of such a hotel is to at all times deliver high quality of service and high quality of products to its customer base. In order to achieve such motives Crowne Plaza ensures that products/ services such as rooms are properly cleaned, the beds provide comfort and such products and services are delivered through utmost professionalism in respective departments.b) Human Resources Management ” In order to make sure that the hotel is successful Human Resources Department recruit people with the right attitude and with the right skills, train, develop and encourage people. Appropriate on the job as well as off the job training is given to the employees so that they can do the job in a professional manner and in order to retain such employees IHG (Crowne) offers free night in any of the IHG property, discounted prices if they have worked for the IHG Group for more than a year.c) Technology ” When it comes to technology in Crowne Plaza the technology or the IT Department have developed official hotel websites where people can make reservations from anywhere in the world. Such a website allows them to make any request/ preferences such as airport shuttle, preference of having a firm pillow and etc. By offering technology driven environment Crowne Plaza obtains its competitive advantage.d) Procurement –