The Establishment of a Separate Pizza-Making Facility - Essay Example

Case Analysis School Q Ans. Tarek should respond to Hind’s proposal positively, though with certain amendments. The relevant facts in the case justify the establishment of a separate pizza-making facility with its own unique identity disassociated with the identity of Holiday Inn. Being the Restaurant and Food Services Manager, Hind is more aware of the problems at the grass-root level compared to Tarek who is General Manager. Tarek should consider the questionnaire responses of the departing guests that suggest that it is the difference in product quality that makes them prefer ordering pizzas from outside the restaurant than within the restaurant. Tarek should also consider the fact that Hind has taken measures to improve the quality of pizza and that blind taste tests have rendered Holiday Inn made pizza to be at least of the same quality as the quality of pizzas made by two major pizza delivery competitors in Amman. Another fact that needs to be considered is that the strategy of installing a pizza oven in the kitchen in the past did bring modest improvement in the room service business, and the only step that could be taken after considering the departing guests’ responses was to improve the quality, which when tried did not improve the business. These facts strongly justify the establishment of a separate pizza-making facility with a separate identity. However, Hind’s proposal that this should be kept a secret is subject to critical analysis. Q. 2: Ans. The ethical issues in the case are hidden truth about the identity of Napoli Pizza. Clients are being made to believe that it is a separate pizza-making facility that apparently has no connection with Holiday Inn. This is evident from the fact that separate Napoli Pizza brochures and special Napoli Pizza boxes are being requested for each guest room in addition to Napoli Pizza hats and jackets for the room service personnel that would be assigned the task of delivering the pizzas to the clients. The fact that their prefix would be other than that of Holiday Inn speaks of Hind’s attempt to hide the pizza’s connection with Holiday Inn. For a restaurant to maintain its high reputation, brand image, and customer loyalty, it is imperative that it stays honest with the clients and does the business in a transparent way. A potential risk in the proposal is that Holiday Inn’s image might be jeopardized in the clients’ eyes if they find out the truth and there are possibilities for this; firstly, the phone calls made at the number mentioned on the Napoli Pizza brochures will be attended at a special phone in room service which makes it possible for a client to accidentally find out the truth. Secondly, the same room service waiters and waitresses will deliver the pizzas wearing the hats and jackets carrying the logo of Napoli Pizza that would serve the clients in other room services as well. Clients might recognize the faces of the room waiters and waitresses and guess that Holiday Inn is trying to deceive them into believing that Napoli Pizza is a separate pizza-making facility that serves clients inside Holiday Inn. Q. 3: Ans. Although Tarek is the General Manager of Holiday Inn and in this capacity, assumes the right to be the sole decision maker in such cases, yet it is advisable for him to include Hind in the decision making process since she is in charge of the Restaurant and Food Services. Hind has been monitoring the room service business for over two years and can be trusted with full awareness and knowledge of the sales and profit profile over the years. In addition to that, the room service waiters and waitresses are also valuable sources of information in this matter since they interact directly with the clients and may provide information that may be important to consider while making decision. Since the key stakeholders of the whole matter are the clients, the questionnaire responses they complete while departing should be taken as a resource while making decision. Tarek should take the opinion of guests through these questionnaire responses, of room service waiters and waitresses, as well as of Hind while reaching the ultimate decision on the matter. However, after taking their opinions, Tarek should take the decision himself since he is at the highest post and assumes more power, authority, and responsibility than all others in the hierarchy of the organization structure. Q. 4: Ans. One alternative for Tarek is to establish a separate restaurant for pizza without disassociating it from Holiday Inn. The restaurant should be given the identity of specialization in pizza and should be constructed within Holiday Inn. This would be like any other restaurant in Holiday Inn that solely serves Chinese cuisine, continental food, or Italian cuisine. Establishing a separate restaurant for pizza within Holiday Inn is different from just including pizza in the menu of the already existing restaurants in Holiday Inn. Tarek should also consider investing in advertising the new pizza restaurant in the media and press so that clients can be made aware of its establishment and how it matches the quality of other food items offered by Holiday Inn. The consequences of this alternative are that Tarek would incur the cost of establishing a pizza restaurant in Holiday Inn related to its construction, installment of equipment and machinery, recruitment of pizza expert chefs, and advertisement of the plan. Another consequence, which might be weightier, is the fact that opening a pizza restaurant might alter clients’ perceptions about the kind of food Holiday Inn offers, in a negative way. So far, Holiday Inn has created an impression on the clients with the existing food items. Pizza, being not in line with the traditionally offered food items, might confuse the clients regarding Holiday Inn’s expertise. Another alternative for Tarek is to first conduct a survey with the room service waiters and waitresses and seek their opinions on Hind’s proposal. If their input contradicts Hind’s proposal significantly, Tarek should consider going with the first alternative. If their input seconds that of Hind, Tarek should consider implementing Hind’s plan. In this case, he needs to completely follow Hind’s plan as it is the hidden identity of the pizza-making facility that makes it potentially different from the first alternative. The consequences of this alternative would be improved room service business. On the other hand, this alternative comes with a big risk of damaging Holiday Inn’s image in the clients’ eyes if truth is revealed onto them. Q.5: Ans. The cost of the second alternative might be just as much as the cost of implementing the first alternative because Tarek would not only have to establish the new pizza-making facility in one hotel, but it would have to be constructed throughout the chain of hotels located at different regions. So, if the estimated profits of the first alternative outweigh the estimated costs incurred in implementing it, Tarek should try the first alternative as it is the safest for brand image. However, if the cost exceeds the budget, Tarek should go with the second alternative. However, in order to minimize the risk that comes with the hidden association of the new pizza-making facility with Holiday Inn, Tarek should consider keeping a separate team of room service waiters and waitresses that would solely serve pizzas to the guests rather than deploying the same team on serving pizza as well as the traditional food items to the guests. In addition to that, Tarek should also arrange for attending the guests’ calls outside Holiday Inn to avoid the suspicion of clients. Read More