Mutira Penang Essay Example

services and wireless internet access. Additionally, it is crucial to diversify our offerings in order to cater to the diverse demands of customers. This may involve offering various holiday travel packages, different conference packages based on the season, or a variety of food choices.

In addition, the hotel can implement an automatic system for offering services and processing payments. Furthermore, the hotel should form alliances with other hotels in different regions to increase its profits. Additionally, the hotel needs to expand its operations strategically to align with its long-term goals. To achieve this, Wernie's should expand its business into new areas to gain a larger market share and effectively compete with strong global competitors. The hotel should also prioritize providing differentiated, high-quality services and creating a comfortable environment for customers. Additionally, the hotel should target high-income individuals and organizations such as upscale businesses and political unions. By positioning itself as an upscale establishment, the hotel can attract and cater to an affluent clientele.

To focus on this organization, it is because they are more loyal and spend more compared to youngsters. This helps the hotel generate more repeat sales. Additionally, creating and enhancing a hotel website that includes information about hotel services, a map, resources and promotions, online booking, customer requirements and feedback, and online payment can also help the hotel establish a strong brand image and drive long-term business. Furthermore, ongoing improvements to the overall operation help align with market demands in operational decision-making and the long-term strategy of the hotel.

2. Wernie needs to ask some questions to determine if his operation falls into Stage 1, Stage 2, Stage 3, or Stage 4 on

Hayes and Wheelwright's excellence scale. In Stage 1, the operations function is internally neutral and considered the lowest level of contribution. In this type of organization, operations are seen as a necessary evil. The other functions may view operations as hindering their ability to compete effectively. They may see the operations function as inward-looking and reactive, with very little positive impact on competitive success.

It is doubtful that the function has adequately developed its resources to align with the company's competitive position. The most it can hope for is to be disregarded. When operations are ignored, it does not hinder the company in any manner. Other parts of the organization do not regard operations as the origin of any innovation, creativity, or competitive ambition.

The operations function strives to meet the minimum acceptable standards of the organization, aiming to be internally neutral and avoid major mistakes. Even if good organizations are let down by their operations function, the resulting negative publicity can be damaging. As Hayes and Wheelwright suggest, the first step in moving out of Stage 1 is for the operations function to compare itself with similar companies or organizations in the external market. While this may not immediately place it among leading companies in the market, it is at least aspiring to reach that position and benchmarking its performance against competitors.

The operations function is not hindering the company's progress. Although it may not be extremely innovative in its management approach, it strives to be appropriate by implementing the best practices seen among its competitors. By adopting industry norms and successful strategies, the company aims to maintain neutrality. At Stage 3, the operations function has

likely achieved a high level of proficiency within its market. While it may not surpass competitors in every aspect of operations, it is on par with the best performers. Nevertheless, Stage 3 operations aim to be unequivocally recognized as the market leaders.

They aim to achieve this by gaining a clear understanding of the company's competitive or strategic goals and then organizing and developing the operational resources necessary to excel in the areas where the company needs to compete effectively. In addition to developing appropriate resources, they also take on the role of implementing strategy. The operations function strives to be internally supportive by providing a credible operations strategy. In Stage 4, the operations function becomes externally supportive. While the difference between Stage 3 and Stage 4 is acknowledged to be subtle, it is nonetheless very significant. Essentially, a Stage 4 company recognizes the operations function as the foundation for its future competitive success.

Operations focus on the future, anticipating market and supply changes, and devising strategies based on operations to ensure the company can compete in upcoming market conditions. Essentially, the operations function is increasingly crucial in strategic decision-making. Stage 4 operations are forward-thinking and dynamic, organizing resources in innovative ways that can adapt to evolving markets.

Companies strive to outperform their competitors by innovating products, services, and organizing operations in an outwardly advantageous way. At Stage 4, the focus is on not only establishing necessary resources and implementing a competitive strategy but also influencing long-term strategy. Two crucial considerations emerge:
- Operations' effectiveness is evaluated based on its ambitions and desired perception within the organization.
- As companies advance from Stage 1 to Stage 4, there

is a gradual transition from operations playing a negative and operational role to assuming a positive and strategic role.

The company's competitive strategy is built on an advantage based on operations. The case details the effects of quality, speed, dependability, flexibility, and cost on the hotel's external customers. Explore how each of these performance objectives could bring internal benefits.

(50 marks) Quality refers to the act of performing tasks correctly. For Mutiara, quality involves consistently delivering flawless services, using high-quality and long-lasting materials to create the desired atmosphere and anticipating and proactively addressing any potential issues. This approach simplifies the operation and contributes to establishing a positive and reputable image globally for the hotel.

The hotel's growing reputation worldwide improves business and leads to increased efficiency. The use of high-quality processes ensures fewer mistakes, easy coordination, and the ability to meet standards. Dependable equipment and tools enhance internal customer satisfaction. This ultimately reduces costs for Mutiara by minimizing errors and decreasing labor expenses. Additionally, utilizing top-class materials helps save on maintenance fees, transportation costs, and other unnecessary expenditures.

Quality is a crucial factor that significantly impacts customer satisfaction and their likelihood of returning. Conversely, poor quality diminishes the chances of repeat business. In addition to quality, swift response time is essential to expedite decision making and the flow of materials and information within operations.

The benefits of implementing this technology include reducing inventories, increasing the utilization of rooms and restaurant, expediting the cleaning and preparation of available rooms for waiting customers. In general, it enhances the efficiencies of the entire hotel. Additionally, speed contributes to flexibility and dependability. Rapid response enables operations to effectively handle urgent matters.

And fast delivery

of the latest information within the hotel enhances its dependability. Dependability is indicative of reliability and encompasses well-managed and coordinated operations. This includes accurate prediction, on-time delivery of materials and information, and planning for facilities, reordering, and human resources. Dependability promotes efficient and effective operations by organizing facilities, information, materials, workforce, money, and time. This ensures their availability when needed, eliminating the need to wait or search for alternatives.

The dependability arrangement aims to reduce the occurrence of repeating input resources or leaving some resources unused, which would increase the cost of maintenance, storage fees, or labor costs. On the other hand, flexibility enables adjustments according to different requirements or situations, allowing for quick changes and decision-making. Flexibility in arranging and coordinating operations' work not only saves resources but also prevents unnecessary repetitions in planning, spending, and resource utilization (such as time, money, and workforce). By deviating from traditional approaches, flexibility enhances response speed and enables the provision of fast service tailored to customers' needs.

Flexible operations allow for the swift deployment of additional skilled staff and equipment in urgent situations and emergencies to meet the demands of other customers. Cost is a crucial factor that affects all hotel operations. Conducting tasks in a cost-effective manner provides a competitive advantage. High-quality operations ensure that time and effort are not wasted on redoing tasks, and internal customers are not inconvenienced by subpar service. In essence, high-quality operations can lead to cost savings.

Furthermore, the hotel experiences a decrease in inventory and administrative overhead due to rapid operations, resulting in reduced overall operational costs. Approximately 60% of the total operating expenses are designated for food and beverages, which not only

improves guest comfort but also enhances the hotel's reputation. Energy costs make up 6% of the total operating costs and present opportunities for savings. However, the hotel remains mindful not to compromise service quality while aiming for cost reduction. These factors contribute to an increase in return guests and assist in generating higher sales.

The higher the number of guests Mutiara has, the more rooms and restaurants are utilized, which ultimately keeps costs down and maintains a reasonable level of profitability.