CHAPTER 5: Dr Nguyen The Anh

HOSPITALITY SERVICE Faculty of Business

Administration
STRATEGY FOCUS
GUESTOLOGY
Guestology = all the organization’s employee must treat customers like guests and
manage the organization from the guest’s point of view
Meet or exceed customer demand via:
 Service product,
 Service setting (service environment or servicescape);
 Service delivery

Guest experience = service product + service setting + service delivery system

DEFINITIONS
Hospitality (hospice – French) = to provide care/shelter for travelers
CHARACTERISTICS OF
HOSPITALITY
24/7
Guest satisfactions
Intangible
Inseparability
Perishability
ROI (Return on Investment)
 QUALITY MANAGEMENT
GOAL EVOLUTION
Stage
1. Quality inspection
2. Quality control
3. Quality assurance
4. Total/ strategic quality
management
Characteristics of each stage
Detection of non-conformance
Methods used grading, sorting, inspection
Quality the responsibility of the inspection department and solely an in-house activity
Systems devised to control processes
Methods used statistical process control, self-inspection
Quality still an in-house activity
A management culture that engages in quality inspection plus control in trying to solve or reduce problems
Proactive approach to non-conformance via prevention
Comprehensive planning and procedures used, with a range of measuring and monitoring tools. The
introduction of externally accredited quality management system to act as a framework for integrating the
various quality tools
Quality function devolved to all departments
Management peripherally involved
Customer needs and expectations sought
A philosophical approach to quality, holistics tools and techniques introduced
Quality methods a mix of internal self-assessment and external verification
Quality function devolved to everyone but with senior managers leading
Empowerment of all employees, working as teams and extensievely trained
Organizational culture one of continuous improvement; building relationships with customers and supplier
important
Customer needs and expectations central to decision making process
 COMPARISON OF QM
PRINCIPLES AND PRACTICES
Definition
Shewhart

Conformance to
Deming

Predictable degree of
Juran

Fitness for purpose

feigenbaun

TQC throughout the

Crosby

Conformance to
Peter

Customer perception
requirement uniformity and organization requirement of excellence
dependability at low
cost
Senior management - Responsible for 94% Response for > 80% Leadership but with Responsible for Should be passionate
responsibility of problem of problems a quality manager quality about quality
Perfromance Various qualities can Many scales: use Avoid campains to Continuos upward- Zero defects; setting Measure everything
standards be measured SPC, not zero defects exhoart perfection moving targets performance
indicators
Judges of quality Customers Users Benefits to users Customer determin Meeting of set Customers
whether goods and standards
services meet their
requirements
General approach Detections of Reduce variability: Emphasis on Application of Prevention Total customer
conformance or non- continuous management of quality systems responsiveness
conformance improvement human aspects throughout the giving rise to a
organization quality revolution
Structure - 14 points 10 steps 10 benchmarks 14 steps 7 patterns

SPC SPC must be used SPC must be used Recommends SPC, SPC to be used; ratio Reject statistically Sees the need for
but cautions against measures for acceptable level of qualitative
tool – based productivity, qualiyt measurement as well
approach effective views of
timeliness of action
 COMPARISON OF QM
PRINCIPLES AND PRACTICES
Basis for
Shewhart

Meeting customers’
Deming

Continuos: eliminate
Juran

Project-based
feigenbaun

Continuous
Crosby

A process, not a
Peter

Create a shadow
improvement changing needs goals approach: set goal improvement to have progamme quality organization
a toal customer in parallel
satisfaction
orientation
Teamwork - Employee Team/ quality circle Individual and Quality improvement Cross-functional
participation in approach teamwork zealotry, teams: quality team
decisions quality circl council
Cost of quality - No optimum, Optimum, Quality is Quality is cost- Quality is free Poor quality costs
continuous not free effective throughout and should be
improvement te processs measured
Service sector No Yes Yes Yes No Yes
considered different
Service concept Concept of tangibles Seven points Defines service and Distinguishes - Customer
and intangible itemizing service service between tangibles expectation and
characteristics characteristics and intangibles of perceptions
service. Importance fundamental to
of customers/ staff assessment of quality
interaction
SERVICE QUALITY
Used-based approach (Brown and Swartz, 1989; Zeihaml et al., 1990; Bitner and
Hubbet, 1994; Parasuraman, Zeihaml and Berry, 1985; Parasuraman, 1995)
 “Customer-oriented” quality

Service quality defined as excellence

 Service quality = the degree of excellence intended that meets customer requirement
SERVICE QUALITY SCHOOLS

Scaninavian • Customer satisfaction =

customers perception – customer
schools of expections
service quality • Gronroos and Gummesson
North • Service quality = Excellence
American • Zeithaml, Parasuraman and
schools of Berry
service quality
GRONROOS MODEL OF
SERVICE QUALITY
SERQUAL MODE
SERVICE QUALITY IN
HOSPITALITY
Quality = Excellence (Peter, 1987)
Service quality = degree of excellence intended
QUALITY, VALUE AND COST
DEFINED
Quality = quality guest experience – quality guest gets
The value of guest experience (Vc):

Cost
THREE GENERIC STRATEGIES

Lower – Price Differentiatio

provider n

Market niche
THE HOSPITALITY PLANNING
PROCESS
ASSESSING THE
ENVIRONMENT

The overall The Industry The Operating

environment environment Environment
• The economy • New Entrants • Competitive Position
• Society and Demographics • Bargaining Power of • Customer Profiles and
• Ecology Supplier Market change
• Politics • Substitute Product and • Supplier relationships
• Technology Service • Creditors
• Rivalry among exist Firms • Labor Market
• Bargaining Power of Buyers
EXTERNAL FACTORS
EVALUATION MATRIX
EXTERNAL FACTORS
EVALUATION MATRIX
Step 1: Identify external factors

Step 2: Assign weightage

Step 3: Rate each factor

Step 4: Calculate the weight score

Step 5: Summarize and interpret

ASSESSTING THE
ORGANIZATION ITSELF
Core competencies

Internal Assets

Vision and Mission Statement

INTERNAL FACTORS
EVALUATION MATRIX
INTERNAL FACTORS
EVALUATION MATRIX
Step 1: Identify internal factors

Step 2: Assign weightage

Step 3: Rate each factor

Step 4: Calculate the weight score

Step 5: Summarize and interpret

DEVELOPING THE SERVICE
STRATEGY
Asking Customers What The Excellent Service
they want Strategy

4 Components of Excellent Service: Quality,

Value, effort on service, sense of genuine
achievement

Supporting Strategies: Service Product,

Environment, and Delivery System
SWOT ANALYSIS
QUANTITATIVE STRATEGIC
PLANNING MATRIX (QSPM)
QUANTITATIVE STRATEGIC
PLANNING MATRIX
Step 1: to identify key strategic factors (EFE & IFE)

Step 2: To formulate the type of strategy (SWOT, SPACE, BCG, IE

matrix)

Step 3: to weight external and internal factors in the overall scheme

Step 4: To define Attractiveness Scores (AS) (How each factor is

important or attractive to each alternative strategies)

Step 5: To calculate Total Attractiveness Score = weights x

attractiveness score

Step 6: To sum total attractiveness score and choose the best

alternative strategies
SETTING THE SCENE FOR THE
GUEST EXPERIENCE
DEVELOPING THE
HOSPITALITY CULTURE
The importance of leaders:
 Behaviour of the organizations’ leaders
 Supervisory personel at all levels = culture keepers, teachers, and translators;
 Culture and Reputation: A company’s culture drives its reputation;
 Manager in hospitality organization understand the value of a strong culture and do whatever they
can do to reaffirm and support what the organization values and believes

The important of culture

 Strategy and employee commitment:
 Culture as a competitive advantage
 Culture as a competency
 Culture: the shared philosophies, ideologies, values, assumptions, beliefs, attitudes, and norm that
knit a community of different people together
DEVELOPING THE
HOSPITALITY CULTURE
Culture and the enviroment:
 Learning the Culture, Learning from the Culture;
 Subcultures

Communicating the culture:

 Law
 Language
 Stories, Legends and Heroes
 Symbols
 Rituals
DEVELOPING THE
HOSPITALITY CULTURE
Communicating the culture:
 Leaders teach the culture
 Guest teach the culture
 Culture and Physical Space
 Culture and Leadership Skills

Changing the culture

DEVELOPING THE
HOSPITALITY CULTURE
Leader define the culture, tech it, and sustain it

Culture: interpersonal relationship > work tasks

Strong cultures are worth building

Subculture will form in larger organizations

Sustaining the culture by communicating

Fitting between employees and organization culture