Hospitality Operations Management

Hospitality Operations Management

LO 1    Understand the operational and economic
characteristics of hospitality operations     1.1

1.1    analyse the nature of different hospitality product and service areas    1
1.2    1.2    evaluate the different influences affecting patterns of demand within hospitality operations    1
1.3    1.3 compare customer profiles and their differing expectations and requirements in respect of hospitality provision    1
1.4     1.4 analyse factors affecting average spending power in hospitality businesses    1
LO 2    LO2 Understand product
development within
hospitality environments    2.1    2.1 evaluate the key stages in product and service development applied within a hospitality operation    2
2.2    2.2 analyse the features which contribute towards the customers’ perception of products and services    2
2.3    2.3 assess the opportunities and constraints affecting product and service development within a hospitality environment    2
2.4    2.4 evaluate different merchandising opportunities for hospitality products and services    2
LO3    LO3 Understand pricing and profitability concepts within hospitality operations     3.1    3.1 evaluate different methods of pricing taking into account additional pricing considerations    3
3.2    3.2 assess the factors which affect revenue generation and profitability in hospitality operations    3
LO4    LO4 Be able to use appraisal techniques to analyse and improve operational performance
4.1    4.1 apply different performance measures and appraisal techniques to individual aspects of hospitality operations, the product and the whole operation    4
4.2    4.2 determine the effectiveness of different quantitative and qualitative appraisal techniques and their application to hospitality operations    4
4.3    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 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)

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 and passed in first attempt. 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)

•    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)

Hospitality Operations Management
Qualification    Pearson BTEC Level 5 HND Diploma in Hospitality Management
Start date    20/10/14
Deadline/hand-in     14/12/14
Assessor    Arminder Singh

Assignment title    Assignment 1 of 1
Purpose of this assignment
This unit enables learners to gain understanding of the operational and economic characteristics,
product development, pricing and profitability concepts and gain skills to analyse and improve
Operational performance in hospitality. It will introduce learners to the management principles of hospitality operations. It is intended for learners who aspire towards a career in general hospitality management. Learners 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. Learners will
also consider a range of pricing and profitability strategies, using ICT software to model different
Approaches.
Finally, the unit develops learners’ understanding of the appraisal process in relation to hospitality
Operations management and how different aspects inter-relate with each other.
Scenario (FICTION)
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 get new job placement as an Assistant Manager for a 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 come across many product and services which are offered by the hotel. Each product/service is diverse in its nature. As a part of report, Analyse the nature of different hospitality product and service areas.
•    Write a report 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: Hospitality industry is having very much variable demand patterns whether it is seasonality, weekdays/weekends etc. which also affects hospitality operations. As a part of the report, you have to evaluate the different influences affecting patterns of demand within hospitality operations.
•    Evaluate the different influences affecting patterns of demand within hospitality operations.(1.2)

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.

•    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 spending power in hotels, restaurants, pubs, bars and other hospitality businesses.as a part of report, you have to factors affecting average spending power in hospitality.

•    analyse factors affecting average spending power in hospitality businesses. (1.4)

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.
•    evaluate the key stages in product and service development applied within a hospitality operation.(2.1)
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, you have to analyse the features which contribute towards the customers’ perception of products and services.
•    analyse the features which contribute towards the customers’ perception of products and services. (2.2)
Consider the following:

Opportunities and constraints: types eg 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, you have to assess the opportunities and constraints affecting product and service development within a hospitality environment.

•    Assess the opportunities and constraints affecting product and service development within a hospitality environment. (2.3)
Consider the following:

Hospitality advertising: businesses eg 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, you have to  evaluate different merchandising opportunities for hospitality products and services
•    Evaluate different merchandising opportunities for hospitality products and services. (2.4)

Consider the following:

Merchandising objectives: objectives eg promote consumer/brand awareness, encourage consumer/brand loyalty, develop product image; support materials eg 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, in this part you have to evaluate different pricing strategies taking into account additional pricing considerations.
•    Evaluate different methods of pricing taking into account additional pricing considerations. (3.1)
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 meeting 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, by using your knowledge and experience during internship; you have to assess the factors which affect revenue generation and profitability in hospitality operations.
•    Assess the factors which affect revenue generation and profitability in hospitality operations. (3.2)

Consider the following:

Factors affecting revenue generation: factors eg sales mix, customer turnover, average spending power (ASP)
Factors affecting profitability: factors eg labour intensity, shelf-life, elasticity of demand, standardisation, 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 the employee and the manager. By understanding and using performance appraisal techniques, a manager can create a useful evaluation that assists the employee’s development. As a part of the report, you have to apply different performance measures and appraisal techniques to individual aspects of hospitality operations, the product and the whole operation.

•    Apply different performance measures and appraisal techniques to individual aspects of hospitality operations, the product and the whole operation. (4.1)

Consider the following;

Approaches to appraisal: techniques eg 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, you have to determine the effectiveness of different quantitative and qualitative appraisal techniques and their application to hospitality operations.

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

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, you have to apply approaches to business analysis, evaluation and planning appropriate to hospitality operations, making proposals for action working with food
•    Apply approaches to business analysis, evaluation and planning appropriate to hospitality operations, making proposals for action working with food. (4.3)

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.

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

Achievement Summary

Qualification    Pearson BTEC Level 5 HND Diploma in Hospitality Management
Assessor name

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.

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