Challenges to Business Success: An Operations Management Focus

Executive Summary

In today’s business world, several core challenges have earned great importance among operations managers. In this paper, the challenges have been shown to present difficulties on the success of hotel businesses in future, primarily focusing on the ‘Hilton Hotel & Resorts’ (HHR). Therefore, operation managers need to give more focus on these factors to ensure their business survival especially because hotels operate in an increasingly competitive environment. The six aspects analyzed comprise of changing technologies, global manufacturing, continued globalization, quality management, changing job designs and the changing consumer expectations. Additionally, the paper also assessed the four main aspects of operation management that most likely influence HHR’s business success. They included quality management, supply chain design, management of inventories as well as goods and service design. The four aspects have been shown to affect the hotel’s profitability, performance, and efficiency.

Contents

Introduction. 4

Challenges and Impact on Business in Future. 4

Changing Technologies. 5

Continued Markets’ Globalization. 5

Changing Customer Expectations. 6

Changing Job Designs. 7

Quality Management 8

Global Manufacturing. 8

Areas most Likely to Affect Hotel Business Success. 9

Quality Management 9

Supply Chain Design. 10

Managing Inventories. 12

Products & Service Design. 14

Conclusion. 13

Recommendations to Hotel Companies. 13

Work Cited. 15

Introduction

Operations management (OP) stresses on the management of all aspects associated with an organization’s operations (Shim & Siegel 2009). The concept integrates many different organizational functions, with the two major functions including providing products or services and selling such products. OP focuses on planning and controlling all organizational activities, which are essential in providing products or services. In understanding operations plus their subsequent contributions towards business success, it is important to understand the various challenges that may influence such businesses in future. Moreover, over the recent years there have been several challenges that have won the attention of operation managers in organizations, in relation to how they influence businesses. In this case, this paper will evaluate how such challenges might affect the hotel business in future primarily focusing on the case of ‘Hilton Hotels & Resorts’ (HHR), while also discussing key areas of OP that may influence the success of the hotel’s business.

Challenges and Impact on Business in Future

A hotel business involves a commercial establishment, which offers meals and lodging plus other guest services. This is a business that operates under the hospitality industry, which is an increasingly competitive business. What happens behind the scenes within this industry is critical in delivering great and exceptional customer experience. Moreover, client satisfaction plays a vital role in ensuring the overall success in this form of business. For this reason, the operational functions in this business must ensure they create the best experiences for customers for successful outcomes. In this case, this analysis will be evaluating a number of OP issues that may challenge the HHR’s business in future. HHR is a US-based hotel and among the most popular hotels in the hospitality industry. The hotel’s popularity has been tremendous among travelers all over the world for many years.

Changing Technologies

Technological change consists of the whole process of technological innovation, invention, as well as diffusion (Jaffe  2008). Business future has constantly been shaped and driven by technological developments.  Today’s trends have demonstrated technological changes day after day. As a result, such changes have significant implications upon future businesses of hotels. The digital revolution, for instance, may intensify the HHR’s competitors’ playing field thereby placing their business in a difficult position. This is primarily because smaller competitors in the hotel field may form coalitions in future to allow the forming of similar or larger scale companies without becoming capital intensive. Consequently, this will most likely reduce the big players’ market power.

Huge market players in the hotel industry including HHR, thus, should constantly scan their environment of operation to help in detecting shifts within the consumer environment. HHR can also counter such technological challenges by constantly adopting new technologies as well as new business models to remain competitive and survive in the market. The internet is another increasingly developing field that will shape the hotel business operations now and in future. The trends indicate that internet will be a powerful tool through which hotels like HHR can continue marketing, running and developing their businesses. This is basically because most customers today are deriving diverse information from the internet such as the best hotels and price ratings in specific areas. Indeed, this trend is expected to continue even into the future. Many internet applications are emerging daily, immensely transforming consumer behaviors and HHR must align their business accordingly based on these changes in order to remain relevant and