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Critical analysis of hospitality operations - Research Paper Example

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Critical analysis of hospitality operations

Currently, Alltalia airlines continue to witness a reduction in revenue. It is progressively losing its market positioning and most of its previous clients are showing interest in its competitors. The management is in disarray since it cannot possibly determine the source of the problem. The company that had a capital base of more than three million dollars and over two hundred employees has now shrunk to about five jumbo jets and other smaller jets with monthly revenue of six million dollars down from the previous eleven million monthly incomes. The current revenue cannot comfortably sustain the operations of the industry a fact that has resulted in the company retrenching some of its employees. The hospitality industry has a number of challenges and requires an extremely vigilant and dynamic management to process and effect policies that counter the challenges. Some of these challenges include understanding the market. Stakeholder analysis According to Slattery (2008), no business exists in a vacuum. Before setting up a business, one must have an effective understanding of the market and the entire community. Operations in the hospitality industry have a number of smaller communities that must integrate for the business to succeed. The management requires a fundamental understanding of all these communities and effect operational policies that incorporates all of them. These communities are the global community, the industry community, business community and the local community. The global community determines the scope of the business, by understanding the global community in the hospitality industry, the Allltalia airlines will determine the global destinations that have a sizable customer base and the new global destinations to introduce to make the business relevant to the market (Painter, 2012). By understanding the industry community, Alltalia airline stays conscious of its competitions. In analyzing the competition, the management determines the weaknesses of the current existing companies and majors on their weaknesses to introduce unique products that complement the weaknesses thus grabbing the market from the previous owners. The industry also reveals the stratification of the current market. Through this, the management formulates products that target every segment of the market thus maximizing sales through an increased presence. Understanding the business community is one of the most important determiners of the success of the market. This includes having an effective human resource management. Operations in the hospitality industry relies on the human resource, the employees of the companies require effective management to ensure that there is efficient flow of information and optimum service delivery to the customers resulting in satisfaction. The management must determine cost effective ways of hiring the human resource and keeping them highly motivated. Alltalia is currently retrenching its employees a clear indication of the human resource management flaws (Lane, 2005). The human resource in the hospitality industry interact with the client on the service delivery basis; they thus represent the face of the business and any form of discomfort in them is reflected in the type of the service delivered to the clients resulting in either positive or negative feedback from the ...Show more

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Critical analysis of hospitality operations Name: Institution: Introduction Operations in the hospitality industry require innovations and creativity to revamp product and service packaging to appeal to more customers. This is promoted by the fact that the hospitality industry does not require any capital other than an idea…
Author : kutchterrill
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