FACULTY OF BUSINESS AND MANAGEMANT

BACHELOR IN BUSINESS ADMINISTRATION OF HUMAN RESOURCE

MANAGEMANT (HONS)

INTRODUCTION TO OPERATION MANAGEMANT (HRM530)

ARTICLE REVIEW

TITLE: OPERATION STRATEGY AS A COMPETITIVE ADVANTAGE IN HOTEL

INDUSTRY

ARTICLE DATE: 16 JANUARY 2020

ARTICLE SOURCE:

. http://www.ccsenet.org/journal/index.php/ibr/article/view/0/41830

PREPARED FOR:

MADAM MASHITAH MOHAMED ESA

PREPARED BY:

SALBIAH BINTI ABDUL JA’AFAR

(2019161191)

GROUP: NBH3C

DATE OF SUBMISSION

14 JUNE 2020
1.0 Summary

Nowadays operation management in hotel industry its most important. This because, it
explains the contributions of operation management as a strategic tool for attaining customer’s
satisfaction. Operation Management as s genre in management is rich and deep. Heizer et.al
(1999) defined operation management as the producer and processes that change raw materials
and input into output or products and services. Besides that, there is also a shortage of a strategic
rigor. A strategy concern how a business firm can position itself within a given market segment in
the end. This involves strategic positioning, unique branding, and how the market segment can
be defended effectively amidst stern competitions.one of the most essential issues facing hotel
industry is increasing internal rivalry and competition both locally and those furnished globally.
There is a dire need for hotel industry to create a competitive advantage and a difference amidst
competitive environment. They need to create a difference through three differentials that is
through connectivity, speed of business and intangibility, which is to boost repute and brand
image.

Besides that, tourism and hospitality industry is an old industry? It began in the 20 century
modestly when people started visiting friends in other states

However, despite the growth and encouraging development of the hotel industry, the industry
has faced many challenges. There are many operating issues such as shortage of trained staff
and skilled workers, increased operating and overhead cost, fragmented market and marketing,
technological challenges like online reservation and of course the most upcoming issues of green
hoteling. Other than that, there was also lack of technology to improve and capture customer
satisfaction and there was an increasing need to address environmental issues in hoteliers. Next,
other issues plaguing the hotel industry, which includes franchise management, higher operating
cost like food and genetically altered food, the emergence of eco-tourism and also the problem of
sexual harassment in workplace. There is also emerging issues of terrorism, natural disaster as
well as outbreak of pandemic like SARS and HIN1, which together effected the occupancy rates,
and competiveness of the industry.

Lastly, many employees also lack English Proficiency and the Malaysia Association of Hotels
argued that it is more important for staff to be conversant in English rather than having them the
ability to converse in divers’ language. Other than that is an issues green Hotel. Where this issues
include the building and construction, the management waste, energy and educating staff and
guest pertaining of this issues.
2.0 Critically illustrate insight or views
1. Operations strategy and competitiveness

Operational strategy is concerned with how each part of the business is organized to
deliver the corporate and business-unit level strategy direction. Operational strategy
therefore focuses on issues of resources, processes, people etc. operations strategy
is the development of a long-term plan for using the major resources and the firm long-
term corporate strategy.

Traditionally, companies in hotel services place heavy emphasis on the use of

financial. The role non-financial indicators, such as customer’s satisfaction, quality
assurance, productivity, employee development t’s become important as they
determine the competiveness of a business as well as its ability to sustain profitability
in the future. Incorporation of non-financial indicators in performance measurement
process is crucial particular in the face of intense competition, shorter product
(services) life cycle and rapid advances in technology, which characterize the
cotemporary business. Also, the changes in performance measurements practice
should incorporate the change in business environment.

Besides that, due to liberalization of economic and globalization, the service

industry is facing a lot of competition and hence has to adapt to change in order to
excel. The hotel industry has not been spared and is under a lot of pressure from
consumers of its services to provide unique and efficient services. There are therefore
a number of operation strategies that have been introduced to ensure efficiency and
effectiveness in hotel operations in order to meet internal and external customer
requirements. With the fast growing hotel industry, many hotels have got different
operations strategies that put them above their competitors. Some of these operations
strategies are: leadership 7 strategies, personal contact strategies and extensive staff
training strategies, strategies on the quality customer service, physical attractiveness,
range of product offerings, unique product features, safety and security systems, and
information technology among others. However, it is not clear which of these strategies
are used by the Hotel in Malaysia.
2. Location strategy

As the trend of green practices becoming more popular in the hotel industry over
the years, it is important for the hotel operators to understand their target market
preference in green hotel. Despite a few mixed results regarding costs and employee
support involved, studies agreed that consumer support was the most influence factor
in implementation of green practices. This is because most hotel operators are value
their guests more than anything else. That is why they need to think carefully before
deciding whether to implement green practices or not.

Besides that, to get guests’ attention towards green hotel, the hotel operator itself
should highlight their hotel image, to show that they are really caring about
environment. It can be done by implementing tangible and intangible green
advertisement and activities that later on can be observed and watched by their
guests. Besides that, maximizing the involvement from guests in green practices could
be a good approach in creating good image as a green hotel. So, managers should
create something that involves guests during their stay in any green activities.
3.0 Reference

1. Tan Seng Teck (January, 16 ,2020). Operation Strategy as a Competitive Advantage in

Hotel Industry. http://www.ccsenet.org/journal/index.php/ibr/article/view/0/41830

2. Barsky, J. (2008). Understand importance of green to guests. Hotel & Motel Management,
October 2008.