In report format students must answer the following questions :
1. Identify the operations management issues and problems facing the organisation
2. Using relevant operations management theory analyse the root causes of these issues.
3. Grounding the answer in theory, make recommendations as to how the organisation can change the operations processes to improve efficiency and effectiveness.
Seven Hills Hotel – Rome
Case Study Scenario:
As the Event Planner for Global Events you were briefed to find and organize a major product launch and conference for ‘GloTech’ which is a high technology company that has seen phenomenal growth over the last 10 years. You selected a five star hotel called ‘Seven Hills Hotel’ which is based in the heart of the Old City of Rome because it has excellent reviews and excellent conference facilities. The facilities were not the cheapest but you managed to get a good deal and overall this was within your budget. There were 550 delegates attending the conference of which 260 had chosen to bring their partners.
After the conference in July 2014 you were summoned into your manager’s office where she highlighted several serious concerns. Your manager, Michelle Viking said that she had received several phone calls from their client ‘GloTech’ that afternoon stating from their perspective the entire thing had been a complete disaster.
The first phone call from the Senior Director of ‘GloTech’
“I was under the impression that a professional organization that supposedly has the required expertise to organize and run a professional product launch would have chosen an appropriate hotel in a suitable location, facilities and the level of service required. As a leading organization we now feel that the entire event was a disaster and our image has now been damaged. We have global customers flying in from all over the world and we now feel that just about everything went wrong from the start. I cannot understand why you didn’t check the route from the airport to the hotel which took 45 minutes longer than anticipated. The driver was not sure where the hotel was and the bus they were travelling on had no air conditioning and frequently got stuck in traffic because of this confusion. The entire journey from the airport to the hotel took 1 hour and 30 minutes and the feedback we received was that ‘the entire journey was a nightmare as we were stuck in endless traffic jams and when we did arrive at the hotel we were exhausted from the heat’. To add insult to injury the delegates had to walk a further 10 minutes to the hotel entrance because the bus driver was unfamiliar with the one way system and the road works. Upon arrival at the hotel the receptionist was struggling to use the new computer system that had been introduced that morning and it was clear that staff had not been given the appropriate training as they could not manage the amount of people trying to check in. The reception staff were panicking and becoming increasingly rude to the delegates. It was very clear who ever chose this hotel had not done the appropriate research. The hotel staff also warned their customers that there had been several muggings in recent months where people had wallets and purses stolen. The staff were advising that their customers should stay together in groups and try and avoid wearing expensive clothing and jewelry when venturing outside the hotel. In addition, many of the rooms in the hotel were going through refurbishment and the smell of paint was overwhelming in some of the corridors and rooms”.
Delegate’s feedback:
“The staff at the hotel were extremely rude and there was a strong smell of paint that hit you in the face as soon as you entered the hotel entrance. Very quickly you felt dizzy and unwell and we were hoping that this was not the same in our rooms. Once we got to our rooms the smell of paint subsided but the standard of the rooms was more three star than five star which was very disappointing. In addition, the rooms had not been cleaned properly and it was very obvious that the towels had not been changed from the previous guests. The bathroom had black mold in the shower and the complimentary soaps had not been changed either….The work men in the corridors painting were extremely rude to the guests and the bar staff were not much better and often ignored their customers and frequently gave them the wrong drinks and change after payment”.
Spa facilities:
The Spa facilities in the hotel were seen as a huge selling point for the hotel and many of the delegates wives had booked various treatments at considerable cost. Unfortunately the Spa facilities were placed in the basement of the hotel where they have had some sewage problems over the last few months. The smell of sewage was so overwhelmingly pungent that many of the delegates wives could not stay for their full treatment. In addition, the corridors leading to the Spa were poorly illuminated and the ladies felt vulnerable and slightly intimidated by the work men in the adjacent corridors. This is clearly unacceptable and not the type of place I want my delegates to stay in.
Dinner:
Overall the conference dinner was a huge disappointment as there was huge confusion about what drinks were alcoholic and non-alcoholic. Can you imagine the embarrassment of a delegate being served a non-alcoholic drink only to find it had been given a double shot of gin. We have a very cosmopolitan customer base and it is not acceptable to make such mistakes. The function did not run on time either and the whole thing seemed to be chaotic.
The food was a huge disappointment and some people were being served meat when they were strictly vegetarian. When the meals were served correctly the food was often dry and rubbery and the vegetables were being served cold. The cutlery was often dirty and when delegates asked for this to be changed the staff took so long to replace them that their dinner was completely cold.
I can assure you we have no intention of paying all your charges and I expect a full written apology so I can pass this onto my delegates. Our Board of Directors are questioning why we used you and to be honest I am thinking the same at this point…
Next, Seven Hills Hotel General Manager:
In the absence of our Conference Manager who is currently on long term sick, I have every intention of investigating this matter fully. However, I am aware that Global Events were made fully aware that the hotel was going through various building works which was factored into our costings. The road works in Rome are out of our control and this has been a long term project that will take about two years to complete as it involves replacing all the sewage systems in the city which is common knowledge. In addition, Global Events failed to notify us of the number of delegates that were attending despite numerous requests from ourselves.
Behind the scenes of Seven Hills Hotel various members of staff involved in the banquet made the following comments
From the Conference Manager before he went off sick:
‘…The levels of communication from Global Events were extremely poor despite numerous requests about specific dietary requirements for their customers, we got nothing. The hotel did not even know how many delegates would attend and when they did arrive dietary requirements should have been put on the booking form. As a team we are over worked and struggle to keep staff. When staff do stay they have high levels of sickness. Furthermore we had two members of staff phone in sick which meant we had a few problems at the banquet itself. These International Conferences can work well when you have good communication but if they don’t follow the system it’s their fault’.
From the Head Chef:
‘…I am an artist and I take enormous pride in my work and I always get my schedule from the Head Waiter and if things run a little late you are going to have problems. I know the waiters were very upset with the behaviour of some of the customers. It was evident that some of the delegates were drinking heavily and getting slightly rowdy and excited and being rude to the waiters. The waiters did make several complaints to the Chefs in the restaurant and we advised them to stay professional and act accordingly. Some of the customers might have been slightly upset about the speed of the service but they need to realize that certain sauces go with certain dishes and fresh produce takes time to prepare’.
Please note the organization and all the characters named in this case study are purely fictional.