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How do quality management systems impact on revenue in the hospitality industry
Pages 12 (3012 words)
RUNNING HEAD: QUALITY Development of a Research Design 2011-2 Table of content 1. INTRODUCTION 1.1. Background Quality management systems have always been considered as the tools to achieve the organizational goal of profit maximization. Manufacturing organizations have achieved immense improvements by implementing quality management systems.
All these elements together form an environment conducive to reducing wastage and application of minimum resources to produce maximum outputs resulting in improved productivity and hence revenues. In 1997 Letz et al conducted a study of nine performance measures of 29 UK companies associated with TQM practices and found all of them at levels which were 62-81% above industry averages of those firms (Dale, 2003). Companies like Motorolla, DuPont and GE applied Six Sigma to achieve higher profitability. (Pande et al., 2000). Though the quality concept started with the manufacturing segment, it has also slowly spread to the service industry. Though the service industry has been late in entering this domain, sectors like hospitality, healthcare and insurance have seen the importance of this methodology to achieve increased revenues as per a study by Hasan and Kerr in 2003 (Yasin et al., 2004). The focus of our study here is the hospitality industry. The purpose of this study is to understand the application of these concepts in the hospitality industry and to see how these have actually helped in achieving revenue generation for this industry. The basic characteristic of hospitality is that it is highly dependent on perceived quality to achieve customer delight which translates into revenues. ...
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