The Telematics of Toyota by Jolito Ortizo Padilla

1.       Toyota Organizational  Background

 Vision:

The vision of Toyota Motors is through improvements of conventional technology, as well as pioneering efforts in the application of new technologies, Toyota is taking great steps to develop eco-cars which will help us become a low carbon society.

Mission for Technologies is a statement of activities relating to the development of key technologies.

Toyota creates vehicles that are popular with consumers and provide world-class safety to protect the lives of customers. It provides optimization of energy/infrastructure to local communities, putting high priority on safety and promotes product development with the ultimate goal of “completely eliminating traffic casualties”. It deliver cars that will stimulate and even inspiring and that will thereby earn smiles from  customers, addressing employee’s education under “Genchi-genbutsu” philosophy, which is to go to the source to find the facts to make correct decisions, build consensus and achieve goals at our best speed. Through true mutual trust with partners, contribute to development of new technology and improved expertise will contribute for economic development of local communities with R&D operations functioning effectively in each region.

 2.       Introduction:

Mobile commerce in the automotive industry could characterize in parallel and in conjunction with another term framed within the industry –telematics. The “ telematics” is an emerging business area that allows car manufacturers and aftermarket producers to provide innovative solutions for information services. These information services include automatic and manual emergency calls, roadside assistance services, GPS, traffic and dynamic route guidance, Internet communication and personal concierge services.

In a highly competitive automotive business, both product and quality and competitive pricing no longer provide sufficient differentiation to capture and retain consumer. Toyota provide each consumer with an attractive and desirable design, customer care, user experience and overall vehicle service package, which includes Toyota telematics. The extent to which the automobile manufacturer is successful in providing such package is becoming a differentiating factor in the consumer buying decision (Hogan, 2009). In fact , a firm’s ability to provide information technology capabilities in automobile may become as important as cargo capacity and mileage of an automobile for both retail customers and business service providers, i.e., leasing agencies, transportation and distribution companies. While there are already some mobile application

3.        Case Description and Analysis

Toyota’s telematics technology is intended to streamline the information processing requirements of consumer driving a vehicle, has brought to surface the need for integrating the information technology architectures of various service providers with the manufacturing technologies of various automotive firms.

1.       While system integration has always been an issue when multiple vendors are involved in providing enterprise wide solutions in business, this issue takes a greater prominence  on:
   What is the impact of” telematics”  on the privacy and security of the driving public as a whole?

Toyota telematics marketplace is experiencing explosive growth in unit sale and user acceptance in the domestic market and abroad. The in vehicle information systems market for personal and commercial vehicles will rise from $15 billion in 2014 to $26 billion in 2016 (Greengard, 2013). In vehicle navigation has already seen acceptance overseas, and will account for a global market of $87 billion by the end of 2014. Several other studies also point to the anticipated explosive growth of this market. (Kalakota 2012; Thurston, 2012). This anticipated growth has created an extraordinary opportunity for the automotive industry and electronic marketplace. It has a significant automotive, marine and heavy truck OEM and aftermarket product sales, as well as alternative and additional revenue streams.

According to Larry Swasey, VP of Communications Research for Advanced Business Intelligence, a number of phenomenon are creating huge opportunities in this marketplace. Rising traffic levels, an increase in the amount of time spent in a vehicle and the technology savvy consumers behind the wheel are all driving the vehicle (Swasey, 2012) . Those who actually need to be in a vehicle for extended periods of time will be looking to take advantage of a plethora of services ported from the internet such as weather , traffic and location based information. This information will become available to the masses as GPS units fall in price. There is also a cultural shift and changing expectations of what is the norm of today, in terms of services offered in a vehicle, and in the future.

3.1.1 Core elements of Toyota Telematics

Recognizing these changes , one can already see a steady shift among automobile firms from manufacturing of goods to providing service in order to realize additional revenue and profit streams. Many firms will start providing value added technical and consumer support services, and the demand for such services is hastened by several other shifts in the North American and global economies in the recent decade, as evidenced by the following:

·         Robust niche/ sub economies within the larger economy

·         A technologically astute society

·         Consumer thirst for wireless communications, computing and entertainment conveniences

·         Consumer demand for convenience services accelerating technology and consumer services

·         Personal safety

·         Federal initiatives

·         Automotive technology integrated with high tech industry

·         Hardware/Software and service providers demonstrating a willingness to partner/develop creative business models

·         Drive to develop effective consumer marketing programs to retain customers

·         Business desire for capital and cost reductions

·         Demand for efficiencies in the supply chain

·         Reduction in human capital to execute transaction processing

·         Immersive brand management

·         “I have to invest now because my competitor has the technology

Figure 1: System Integration and  implementation Activities

BRD and RPF	The Phase where Business requirements and Requirement Document and Request are formulated
HLD	Clarifying the planned solution by the specifications about the operation of the system
DS	The Development of the detailed design and specification phase
Configuration	System is programmed by using table with values as defined. System configuration, customization, and development is shown
Implementation	Implementation and operations are converted to the new system
Support and Maintenance	This is a post implementation phase where the system is supported and maintained.

 

 3.1  Request for Proposal

This section is prepared by the Core Functional Group to comply with the standards recognized by the vendors. Toyota held a workshop to establish wireless networking technology. Since then new specifications have been introduced by industry alliances. Companies manufacture and sell products based on specifications. A standards group of Toyota examines the needs, technical problems , and solutions provided by the vendor. The standards group formulates a detailed specification and places it in public domain.

Wireless data network require radios that take in digital data, zeros-and ones, modulate and transmit data as radio waves, demodulate the signal, and convert back to zero and one. Coexistence is the ability to have many radios operating without interfering with each other. These capabilities must be explicitly defined in specification, confirmed by standard test procedures and adhered to by manufacturer.

4.0    Alternative Solutions

1.       This evolving marketplace converge the interest of many industries such as technology, consumer electronics and internet content providers as they with the automotive industry in providing the vehicle package. For example, the convergence of voice and data technologies and services is reducing the barrier to designers and marketers within the automotive industry. Mobile communications equipment, cell phones, and palm computers are becoming cellular computing devices capable of GPS, navigation, cellular telephony and computing functions such as office telephones and e-mail.

The evolution is also creating cross industry dependencies, For example, wireless internet communications software, feature and functions are becoming standard for consumer hand- held, desktop and mobile devices. Such dependencies are causing entire business communities to cooperate in some ways never seen before. Standard setting organization, consumer electronics organizations, communications, technology and software vendors are all looking to develop standard locally, regionally and globally. This will inevitably cause a tremendous unrest within the automotive community due to its impact on the automotive product development. Toyota want to let high tech consumer and services sectors manage the dynamic rate of change, but work with them in developing a technologically independent, open standard for automotive connectivity that can be leveraged across its business community. While this may help Toyota focus on its product development cycle, the business opportunities afforded by this mobile technology on the product development itself can’t be ignored.

2.       Toyota’s telematic marketplace will start to have a significant impact on many activities on the automotive value chain such as:

·         Platform development and management

·         Embedded systems engineering software and development

·         Marketing and brand management

·         Consumer services

·         Repair and service parts operation

·         Customer care

·         Warranty services

In system evaluation, selection and implementation Toyota has the different level stages:

Figure 2 : System Implementation Life Cycle

Pre-Implementation                          Implementation                               Post-Implementation

 

5.0   Pre-Implementation (Pre-Sale)

5.1.1          During this phase several vendors were invited to join the bid.  A demonstration is very favorable for Toyota in order to check the performance of the product.

5.1.2          The criteria are of the following:

-          Platform development and management

-          Embedded systems engineering software and development

-          Marketing and brand management

-          Consumer Services

-          Repair and Service parts and operations

-          Customer care

-          Warranty Service

-          For Radio Standards , the cost and power of radio hardware increases with frequency and date rate, so the items listed generally reflects ascending power consumption and cost moves down the list

-          Bluetooth is designed primarily from mobile phones where power, cost and radio component size are at premium.             

-                              - Open Air and Home RF are designed to deliver wireless internet, digital video and audio where cost and ease of installation are the determining factor. The office environment demands high data rates for many people, The 802.11 standards are optimized to deliver data packets (Internet traffic)

              5.2.1  Vendor Selection (Choose the Best Solution)

The various vendors involved in WPAN and WLAN specifications and standards conform by Toyota standard group are:

1.       Wireless Ethereal Compatibility Alliance (WECA)- is an industry alliance certify with interoperability of 802.11b WLAN products under the logo “WiFi” (Wireless Fidelity). Product that bears this label must pass a series or standardized inoperability test administered by Toyota. The endorsement assures customers that the wireless product will interoperate with all other Wi-Fi certified products. It requires networking knowledge, including familiarity with terms like IP address, DHHP, domain suffix , port and protocol.

2.       Bluetooth Special Interest Group (SIG) by Ericsson which released the first Bluetooth product, a wireless headset for mobile phones.

3.       HomeRF Working Group (HRFWG) primarily of radio manufacturer and promote a wireless standard for computer networking , cordless phones , multiplayer games and  toys.

4.       HiperLan Alliance that promotes the ETSI HiperLAN standard.

5.       HiperLan2 promotes worldwide standards for corporate, public and home environments

6.       European Telecommunications Standard Institute (ETSI)  that develops standard for the telecommunication, broadcasting and information technology fields. The ETSI Broadband Radio Access Network (BRAN) develops specifications to insure interoperation of HipwerLan 2 products

 

6.0  Implementation

Toyota has to seek partnership and industry relationships with various technology providers to develop products and services and deliver these to customers in order to be successful in this marketplace. This will become a challenge given at which the technical environment is changing.

6.1.1 Contractual Implementation

The budget was over a Billion yen for this project with the help and support of the vendors.

The rapid change in the technology industry, as well as in the consumer and communications environment, has a significant impact on the success of the mobile environment. Automotive and other technology providers must work together in establishing a robust, stable, ongoing technology and communications environment that can incorporate both emerging as well as existing technologies. Some of the technology challenges include developing

·         On board systems, displacing many off board systems

·         Navigational systems as standard equipment

·         Global open standard in product development

·         Easy to use and flexible interfaces

·         Strategies to ensure data and personal information security

6.2.1. Technical Specifications and Configurations

The technology environment supported by both Toyota and other technology and service providers should be transparent enough to allow consumer to configure the services they need with relative ease, if it is to generate significant acceptance among the consuming public and make the business model profitable for all involved. However, customer expectations on access to information are changing rapidly with each new technology, and are creating a volatile customer and business environment.

These are the general forces that are driving the use of mobile technologies in the automotive sector, and these will ultimately shape the industry’s future applications:

·         Increasing consumer demand to have both computer and technology services at their finger tips

·         Growing desire by consumers to access multi-media and communications while in their vehicles

·         Growing business demand for the application of technology to gain operational excellence

·         Growing need for storing and analyzing customer preference data( using data warehousing technologies) in order to develop strong customer loyalty.

·         Growing concerns related to privacy and consumer protection by various public and private organizations.

6.3.1 User Acceptance Testing(UAT)

Global standards and regional pressures will have a significant impact on any successful telematics initiatives and service in Toyota. Recently federal agencies have determined that dialing a cell phone more distracting than talking to a voice recognition unit with the driver’s hands on wheel. A regulation to reduce this distraction will have a negative impact on the handheld communication devices and will be boon to the voice recognition software and hardware developers. This illustrates how a study/ research that deals with the safety of the driving public could deal a blow to certain technologies while promoting others in the blink of an eye.

Various regulatory bodies of the federal government have established policies impacting each component of the mobile commence of the federal government have established policies impacting each component of the mobile commence and vehicular telematics communities. Many of these agencies are engaged in providing development support, leadership and establishing  policy and procedural standards:

·         National Highway and Traffic Safety Administration (NHTSA)

·         Federal Communications Commission ( FCC)

·         National Traffic and Safety Board( NTSB)

·         Ministry of Transportation

·         Ministry of Defense

·         National Institute of Standards and Technologies ( NIST)

Given that many of these agencies operate under different charter , reaching a consensus is quite complex. Also, these regulatory groups have to work with various business/industry interest groups , if this mobile industry is to support the development of the products and services in the telematics marketplace.

·         Automotive Multimedia Interface Consortium (AMIC)

·         Japan National Standard Institute ( JNSI)

·         Intelligent Transportation Society ( ITS)

·         Consumer Electronics Manufacturing Association ( CEMA)

·         Bluetooth Consortium

·         Japan Automobile Manufacturers Association

These groups have to play , as a watchdog for the automotive industry, not only to monitor and influence legislation that affect the product development cycle, but also support the collaborative effort among the various constituents of this telematics marketplace. For example Figure 1 illustrates the many individual players that have work together in support of providing telematics solution to the consumer. Besides Toyota, this marketplace includes many new players that continue to bring new and innovative products and services to the market at a rapid pace. Given the volatility of this technology market, creating standards and seeking consensus is obviously quite significant challenge for many of this industry groups.

Figure 3: Illustration of Individual players working together in support of providing telematics solution to  the customer

 

7.0 Post- Implementation

Industries must work together at the macr0-level to create a technical environment that supports the amalgamation of business processes and services. Some of these industries include automotive , transportation, telecommunications , distribution, entertainment , technology, publishing and travel. Many of these industries have rarely or never worked together in the past. Each of these industries needs to understand that its business drivers will impact the decisions of others, and partnership is critical if telematics in the automotive environment is to flourish.

Also, each participants has to, with a varying degree allows his/her technology and service to be supported in an open environment. For example , the E-portal model shown in Figure 2 describes how several satellites , electronic and automotive component suppliers work with various Internet , content and other services providers to satisfy a consumer-directed content request, while the consumer in the automobile. To make this happen , several standards have to be agreed upon so that information can move from one technology provider to another , while technologically open standards has to be created to allow business models to co-exists.

Given the diverse players involved in the Toyota telematic marketplace , partnering plays a major role for business growth. In this multifaceted and multilayered marketplace, partnership and industry presence play the linchpin role for successful firms and these firms have to develop strategies that allow for multi-threaded competition. By offering hardware and services at various level to OEM’s revenue stream incrementally as opposed to the single thread “ if we build it, “they will” come model. A firm provide a “single specialized service” in one target market and act as a “ me to”  provider in a different market segment within the same industry. The bottom line is that in this emerging marketplace. The consumer will define what is of value and what line of business will thrive. The participating firms must then determine which service lines to divest, invest, partner or purchase.

Figure 4: Illustrations of how satellite , electronic and automotive component suppliers work to satisfy a consumer related content request.

 

8.0 Conclusion and Recommendation:

With its variety and convenience related service programs, telematics has moved from the novelty phase to becoming an integral part of an overall consumer package. The dynamic technology environment and its influence on the private sector, federal, state and local government agencies ; and the consumer community has created an enormous complexity. This complexity calls for leveraged “business technology” processes never seen before in the automotive sector. New paradigm  are being developed, business models are being created and consumers are thirsting for new services. It has yet to be determined if the three legs of the stool- industry, consumer and government-can get it right and work together to make Toyota telemetric applications flourish, or if they let the inherent complexities create an environment that makes the amalgamation of services, technology and M-commerce transaction difficult to manage in the short run and successful in the long run

Unfortunately, it is difficult to say who will lead or if they will be allowed to lead. However, given the history of Toyota and its fortitude towards developing innovative and reliable consumer products , our contention is that this industry will play a key role in creating standards in support of the telematics marketplace. These standards will then make the incorporation of such product within an automobile industry as transparent to the driving public as many of the other successfully embedded technologies that came before.

Reference”:

Greengard, S (2009) Going Mobile , Industry week , 249

Hogan, M (2009) Keynote, 2^nd Digital Detroit Conference November

Kalakota , R  (2008) M-Business : Race to Mobility McGraw Hill, p456

Swasey, L (2009) Intelligent transportation system : In vehicle navigation and communications technologies , Global Markets and Forecasts. P213, 214

Thurston, C (2009) Management Information System , McGraw Hill, pp 213, 215

Index

Many of these impacts can be categorized as B2B (Business to Business), B2C (Business to Consumer) and B2Me (Business to Me). Note that B2Me is an individual centric portfolio of content and services controlled by consumer , as opposed to B2C , where the focus is on a mass/targeted message pushed out demographic groups. Stated differently , while B2C views services as being pushed by the firm to consumer. B2 Me views services as being pulled by the consumer from the firm.

Industries must work together at the macr0-level to create a technical environment that supports the amalgamation of business processes and services. Some of these industries include automotive, transportation, telecommunications, distribution, entertainment, technology, publishing and travel

Sheraton Hotel- Bahrain...... A Research Study....

Introduction:

1.       Organizational Background

Located in the heart of Manama with easy access to major shopping malls and the Bahrain World Trade Center, Sheraton Bahrain Hotel is the ideal hotel in Bahrain for business or leisure.  The hotel is only 7km from Bahrain International Airport and offers the perfect base for business in Bahrain. Business travelers have easy access to Bahrain World Trade Center and Bahrain Financial Harbour  (http.//www. Sheraton.com.bh)The hotel offers a place to relax with rooms equipped with Sweet Sleeper™ Bed, a place to connect at the Link@Sheraton™, a relaxing space at  the Club Lounge and Sheraton Fitness to keep you fit and healthy. Rich in culture and history, enjoy a tour to the marvelous old sites, colorful traditional souks dotted between skyscrapers and contemporary urban living.

Sheraton Bahrain Hotel consists of 218 guest rooms and 38 suites. Guests staying on the club floors have special      access to the Sheraton Club Lounge - a relaxing space which offers complimentary breakfast, afternoon hors d’oeuvres and a variety of beverage options (http.www.sheraton.com.bh)

The hotel offers a wide range of restaurants (http.www.sheraton.bh) Guests can enjoy a sumptuous buffet breakfast, lunch and dinner with a variety of International cuisnes from Iranian to authentic  Chinese cuisine. Enjoy a perfect cup of espresso at Espressamente Illy café or relax at An Nada lounge with live entertainment and a great selection of beverages.

Plan your next corporate and private event at one of our meetings and events centers. Whether it be your wedding party, engagement, product launch, Sheraton Bahrain Hotel promises to make it an unforgettable event.

2.       Executive Summary

Hotels must carefully balance a number of design and functional relationships to be successful. This balance varies depending on the type of hotel, resort, whether developed for the leisure or business or group market, whether urban, suburban, or more remote; whether traditional, contemporary or striking avant-garde, whether chain operated or independence. But whatever the mix of characteristics  , the its  overall hotel, as well as each functional areas (lobby, food, and beverage outlets, meeting areas guestrooms and suites, and service areas for example) must both exhibit a well conceived aesthetic design, efficient and functional (Tam F.Y., Moon K.L., Ng S.F., & Hui C.L. (2007).

Operational planning is the concept of organizing the hotel or another facility to meet the requirements of both the user and Sheraton Hotel-Bahrain rather than principally along aesthetic or design themes. Given the competitive nature of the lodging business, establishing clear operational planning objectives is essential to a successful venture. The owner and design team must constantly balance the operational needs of the various stakeholders with good design to create a cost effective, safe and marketable property.

3.       Define and Understand the Problem

Equally important is the design brief, incorporating the facility list and space program along with operational staffing requirements. In addition, the team needs to define a myriad of operational details; how is luggage handled? Or room service? Is there an in-house hotel industry? What staff is needed to guest-service calls? Each of these has implications for the physical planning and for guest satisfaction, as well as for setting staffing levels. The following discussion of hotel operations will consider these disparate aspects: (Tam F.Y., Moon K.L., Ng S.F., & Hui C.L. (2007).

3.1 Level of Strategy

·         Design brief

·         Site lay-out and arrival

·         Lobby and public circulation

·         Food and beverage outlets

·         Function areas

·         Recreational areas

3.2  Description of Current Operation:

To know the amount of space dedicated to the functions in a hotel, especially the approximate balance between guestrooms and public/support area. The development of the design brief, especially the space program, does not occur at one time nor does it result in a static document.(Tam F.Y., Moon K.L., Ng S.F., & Hui C.L. (2007).   Frequently, the team refines the initial brief, little more than a thumbnail set of requirements, during the schematic and design development phases, into a comprehensive set of operational and planning standards. This may be based, in part, on information conveyed by the management company in its design guide. That is, throughout the early design stages, the brief evolves as the team collaboratively develops an understanding of the building’s design and its potential operational relationship, building form and organization. These include such factors as visibility and accessibility for arriving restrictions, and the potential to accommodate future expansion.

The Hotel management must organize the hotel functions to meet clear operational goals, both from the guest’s expectations. Parking is the most important, including the design of the approach, driveways, sidewalks, receiving area, and emergency access. Generally, the parking requirement is specified in the local zoning ordinance and may require more than one parking space for guestroom. Providing sufficient parking is critical if a hotel intends to attract banquet and dinner business and, therefore , carefully analyze and balance the real need for parking against its cost.

Even before the guest enter the lobby or are greeted by the staff they will have formed an impression based on the approach and arrival sequence with the adequate and convenient parking, sufficient canopy, incorporated with the number of different entrances, clear signage, building illuminated that is helpful to separate overnight guests from those using the ballroom, to reduce the amount of unnecessary traffic through building to establish a distinct identity for a restaurant or spa, or to provide increased security.

Among the most prominent entry features is the porte cochere, the entry canopy designed to protect guests from inclement weather and to provide visual emphasis to the entrance. The architect’s design should incorporate lighting and signage and be sufficient height for buses and emergency vehicles.

In establishing the image of the hotel, the lobby serves many obvious functional requirements. It is the main circulation space, helping to orient guests and direct them to the front desk, elevators, food and beverages outlets, meeting and banquet facilities, recreational activities, and so forth.

4.       Developing Operations Strategy

Based on the particular markets the hotel serves and its design concept, the development team must establish its own priorities for planning the lobby and circulation spaces. Typically, these operational criteria include (Simmons, J (2000).

·         Circulation: provide clear paths to front desk, elevators, F&B outlets, and function space

·         Front Desk: locate desk visible to the entering guest and the elevators; include sufficient queuing space; provide direct access to front office

·         Luggage: provide space for bellman, luggage storage , and other locked storage

·         Seating: provide seating near front desk and main entrance; provide more private seating nearby; consider use for lobby lounge.

·         Support functions: locate retail outlet, concierge desk, public toilets, house and pay phones, courtrooms, convenient to the lobby.

·         Décor: establish hotel image with millwork, furnishings, artwork, lighting, signage and appropriate to locale.

4.1 SWOT Analysis

Sheraton-Bahrain realize that well conceived food and beverage outlets increases  the demand for guestrooms and meetings and attract the general public, especially at lunch and dinner, and generate additional profits. These outlets, however, vary so widely in quality and character that the program and design of each outlet must be developed individually based on the local market and existing competition on the management. Sheraton creates individual and distinctive outlets in the larger and first class and luxury properties. It carefully script the restaurant describing the look of the space, the theme the menu, service style , table decoration in short, writing full stage direction for eventual production.

Hotel food service goes through the frequent cycles of changing popularity with the public. Since 1990, Sheraton Hotel- Bahrain with the increasing need to generate revenue, Sheraton Bahrain has striven to create innovative dining rooms and bars. Sheraton realize that well conceived food and beverage outlets increase the demand of guestrooms and meetings, attract the general public, especially at lunch and dinner, and generate additional profits. It is necessary for the hotel to confirm the recommendation and establish their concepts for the F@B areas.

( Aljian G.W. (1984).  As Sheraton increase in size they provide additional outlets so that the scale of the restaurant or lounge does not become overbearing.

One is the Atrium, where diners are seated in a park like setting not unlike a sidewalk café. The Atrium area is treated most casually, with brick paving, trees and tables with placements or cloth runners. The intermediate zone is slightly more formal and the interior section includes leather banquets, table linen, darker lighting levels and such additional accessories artwork.

Sheraton establishes the program for the hotel bars and lounges.  Open to the lobby space, the lounge provides a small bar, limited food or tea service, occasional entertainment and lounge seating which can be used flexibly to expand the capacity of the lobby. A second beverage out let often is a cocktail bar or entertainment room. This facility is completely enclosed, and features lower light levels and more tightly spaced setting. Depending on the theme, the lounge might have distinct sections, including a sit down bar, and entertainment area with a stage and dance floor, a games area with billiards or backgammon, and quieter seating alcoves ( Knudsen, Mette Pest, Servais, Per (2007).   

Sheraton operational objectives are:

·         Location: position the main three meal restaurant convenient to the lobby; position the specialty restaurant with direct exterior access.

·         Service: Group all foods outlets close to the kitchen or a satellite pantry; provide bars with service backup.

·         Flexibility: design larger restaurants and bars so that sections can be closed during slow periods.

·         Support areas: provide public toilets, coatrooms, and telephones nearby.

·         Layout: provide host desk, multiple service stations, and a flexible mix of table sizes; minimizes or eliminate level changes to better accommodate handicapped guests.

Functions areas

Perhaps the clearest distinguishes feature is the size and mix of their function space; the ballrooms, smaller meeting and banquet rooms, reception and exhibit spaces, and dedicated conference and board rooms. The hotel primarily needs facility for large group meetings, smaller rooms for seminars and workshops, and extensive exhibition space. In addition, the organization uses hotel function space for a variety of meetings, banquets, and receptions. The convention center include a major ballroom,, for 1000 or more people( Knudsen, Mette Pest, Servais, Per (2007).   The ballrooms are designed for major banquets and social functions but include audio/visual and other systems for meetings. Conference centers are different still, designed for smaller groups, no larger than 100 to 200 people, and feature dedicated single purpose banquet, meeting, conference and boardrooms for a particular need. Sheraton offers such amenities as extensive foyer and gathering areas, 24 hour use of meeting rooms, additional conference services  and full/visual systems, sometimes even including a recording audio ( Aljian G.W. (1984).

 For guest satisfaction that reduces operational inefficiencies Sheraton operational strategy are:

·         Floors: select carpet pattern to aid in room setup; use portable dance floor for special functions.

·         Walls: apply chair rail to protect wall finish; add fabric panels to improve acoustics and upgrade appearance.

·         Ceiling: consider flexible lighting including decorative chandeliers, track and fluorescent fixtures; provides fully dimmable lighting system and other system, organize HVAC, sound system, fire protection and other systems into a unified design.

·         Windows: add full blackout capability.

·         Furniture: select balance of rectangular classroom tables, round or oval banquet tables, stacking chairs, risers, lecterns.

·         HVAC system: separate mechanical, electrical and sound systems for each room division

·         Communications: include TV, telephone, recording, data lines in each function and control room.

Recreational Areas

The approximate mix of recreation facilities must be based on an understanding of the market needs and competitive analysis on other hotels in the area. Considerations for guests access to the facilities and the relative need to isolate them from building elements( Kraljic, P., 1983 ).  The hotel try to separate the pool area so that guests do not need to pass through a lobby, or other major public areas, swimwear or robes. Where the health club is used by outside members they will need convenient access to the facility from the parking area.

4.2 Evaluating Alternative Business Strategies

Sheraton emphasizes on operational planning for their development. They have strong marketing departments, many of which conduct regular research on customer preferences and use focus groups to understand what features are desirable to the users.

The conventional wisdom of Sheraton is grounded in single venues. The process is designed to reduce risk for capital providers by giving assurance that the venue will be able to attract sufficient demand with cost structure that will produce the target returns. It is opportune that Sheraton –Bahrain in the midst of the current political turmoil and current market downturn a medium and long term prospects for Hotel Industry is keeping in the development process and progress(Håkansson, H. (2001)

The imbalance in the structure of Sheraton is the function of the imbalance in the structure of economies. Padilla classifies economies into five types: experience, market service, citizenship service, industrial and subsistence.  In subsistence economy, the bulk of economic activity is in agriculture and extractive industries as with the GCC Region and only a minute proportion of the indigenous population. This is the reason why the Sheraton relies on foreign visitors for its demand. In the industrial countries consumer spending is higher than in subsistence economies and it is concentrated on consumer.

Leisure economies in the industrial countries are more focused in the home and consumer spending on hotels is relatively limited. Factory production, in which larger productivity is achieved through a larger size and fewer workers, generates limited demand for hotels and that manly from sales and marketing devices. When industrial economies reach a high degree of efficiency, the GDP is produced by fewer citizen s and manufacturing is progressively transferred to lower cost economies(Gadde, L-E and Håkansson, H. (2001) .The emerging economic problems include rising unemployment and a workforce trained in redundant skills.

The hotel industry in experience economies is not only more concentrated, but also larger due to the higher frequency of both business and leisure demand. The industry has all the representation throughout the market levels and all configurations of hotel facilities. It is not only the Hotel that grows. but also all of hospitality , travel and transport which become a significant contributor to  GDP.

4.3 Formulating and Implementing Operation Strategy

Sheraton continues to see increased globalization, segmentation and technological innovation all having an impact on the operation. Each product has its own target markets, its own brand identity, and its own design brief and operational standards. This creates a new customization of the hotel product, which offers great opportunities for creative new approaches to design and operational solutions.

Sheraton offers an immense opportunity to target a particular market niche and gain competitive advantage. But this requires understanding very different local markets, then carefully tailoring the building design to meet the needs and price constraints of the locale.

Technological innovation continues to have an impact on hotel issues. Management attempts to reduce staff in order to squeeze more profitability from the hotel increasing competitive environment. Computers and cell phones are everywhere; sensors monitor activity and can turn on/off practically any building system. Most travelers seek speed and efficiency and increasingly accept self service systems such as banks, ATMs. Recognizing this, Sheraton continues to pursue sensible automation( Ghauri, P., Granhaug, K. and Kristianslund, I., (1995).

5. Information Technology and Operations Management:

Design=Form + Function

This is an old formula that holds today. “Form” refers to the overall space, and its style, image and experience. “Functions” has many layers and can refer to the physical function, comfort, durability, maintenance and physiological factors, in other words the product’s general functionality.

Modern technology dictates that detailed research is undertaken into the most relevant up to date back office systems. Consideration should be given as to how these will interface with front of house point of sale and to corporate office. Dependent on the scale of the hotel , the role should encompass purchasing and IT. If the operation is a standalone development a manual should be produced detailing procedures, job tasks and standards of performance. A payroll system will need to be implemented and this can in many occasions be outsourced to a specialist support company, often providing a more cost effective solutions (Bensaou, M., (1999).

One of the most important elements to a long term success of Sheraton is the preparation and delivery of management information. This means evaluating all specialist software support, ensuring its appropriate integration into other systems. A suitable management reporting format should be compiled, supplemented by the creation of  key performance indicators (KPI).   

 The success of Sheraton is dependent and maintained upon well defined policies and procedures. It is essential to create a job and task for each role within the hotel These are then supplemented by the standards of performance manuals (Bensaou, M., (1999).   Creation in the creation of these standards has to be given to the desired standards of profitability of the hotel and to the matching expectations.

The amount of money necessary is determined inter alia by scarcity of skilled labor within the local environment. It is essential when recruiting that the culture and attitude fit of employee is married to aspirations of Sheraton. Technical training can then be undertaken either by full time trainers employed by the company or obtained from an external training company. A training plan should initiates for all departments to integrate with the recruitment schedule and opening time lines. The trainers  will use relevant job descriptions and standard of performance manuals in the execution of their work.

Dependent in the level of support the operating supplies and equipment the purchasing manager can be one of the most important in the company. Key areas that will require identifying expenses are restaurant supplies such as crockery, cutlery, linen, bar supplies including glassware, coffee machines, blenders, ice machines, conference and banqueting items, room service items and guests supplies.

6. Designing and Developing New Services

Every service concept relies on integrating the physical property with the service requirements. The greater the efficiency in the design and planning aspects the lower the capital costs of the development and greater the potential to enhance the units’ potential of the operational profit. Equally important to the size allocated to each area its relationship to another, for instance , the kitchens in the conference hotel and conference events facility.  It is important that the two parties will be considering the constraints of the site and building form and collaborate to achieve the most efficient solution to satisfy their respective aspirations.

The decision on style is more subjective; nevertheless, if it reflects the design sets out the methods and systems to be utilized in the operation and cover the requirement for the physical and operational aspects( Barber.M (2012).

Figure 1. Typical Sheraton Hotel Design and Integration (Pick up in Costa)

7. Process management

The key question for Sheraton  , once the services and utilities has been ascertained , is how to maximize the sustainable cash flow from all facilities provided, while at the same time maintaining the quality and character and character of the hotel. Sheraton would probably change the order of foregoing, due to the desire to promote brand and increase distribution and with a substantial part of compensation based on turnover( Barnes, D., Dyerson, R, Harindranath, G., (2008).

It is clear that Sheraton will have an extensive marketing experience and with its brand, sales network  and loyalty program will be able to attract diverse client base, which protect the hotel from swings in the individual local, regional and rational markets.

However, the expert knowledge with regard to accommodation services may not replicated in the area of food and beverage and other supporting facilities. This may mean by employing specialist operators, the Hotel is able to generate a higher level of profit. The manager with local knowledge and experience may be able to source more appropriate operators for the facilities.

The service and operating standards are also important from a cost perspective. Again the question arise as to what is the most cost effective way to service the rooms, provide catering services, and carry out the maintenance.  It is important that the basic standards are maintained, but expenditure needs to be restricted for areas which are due for a major refurbishment.

8.0 Quality Management:

One particular approach to improved organizational performance and effectiveness concept is the concept of the Japanese inspired total quality management (TQM). Sheraton has implemented successfully because of its active participation of top management. It places and emphasis on the involvement of people as key to improved quality. TQM involves changes to the traditional culture with greater emphasis on natural work groups, multi-  discipline working and team based management. Attention must be given to effective education and training, empowerment and motivation to take ownership of quality, and systems of communications at all levels of the organization (Astley, W. Graham, and Andrew H. Van de Ven 1983)

8.1 Quality Framework

Sheraton is involved with an integral part of quality approach which is Kaizen which literally means improvement or as often interpreted as gradual progress or incremental change. This approach:

·         Analysis every part of process down to the smallest detail

·         Sees how every part of the process can be improved

·         Looks at how employees’ actions, equipment and materials can be improved’

·         Looks at ways of saving time and reducing waste

Sheraton term this as “Change for the Better” that implies continuing improvement involving everyone that does not cost much. Sheraton based culture on three super-ordinate principles :process and results; systematic thinking; and non-judgmental, non blaming.

9.0 Forecasting and Capacity Planning

In order to reach global presence objectives, the challenge for Sheraton will be to grasp the mantle of developing skills of product development and managing a diverse stable at different that can deliver the sort of trading results that attract the long customers. Sheraton should need to accept that it is no different to any industry, developing and selling services to the consumers market and that its management skills have to be honed. The difference between the existing practice of refreshment, repositioning and new is primarily the introduction of modeling and market testing( Aljian G.W. (1984).

Mixed use of developments incorporating retail, entertainment, bars and restaurants, residential and hotel accommodation are part of Sheraton future strategies. The property owners are utilizing facilities management companies to manage such property. Each tenant operates their business independently and contributes to the overall maintenance requirements of the complex managed by the Sheraton (Simmons, J (2000) 

 

Mixed use developments offer another opportunity to expand their services product range. All the skills to manage and provide facility services for a mixed use development are very skills that Sheraton has to  exercise each day. Hospitality operator entails the provision of services such as security, cleaning, maintenance, marketing and letting space. By extending the range of facilities for which such skills are utilized both investors, owner and operator can benefit

10. 0 Recommendation

Sheraton Hotel Bahrain has led the industry for a decade and the units has inevitably has the specific service standard and the desire for differentiation led the guest stay and happy. There are number of recommendation that needs to be realized:

·         Differentiate its full service brands between each other and those of the competition

·         Standardize product and reflect local culture and environment

·         Obtaining fund for global expansion

·         Establish a management structure for a worldwide multiproduct, service and operating group’

·         Maintain short term returns on capital intensive and long term development projects requiring individual management

·         Raise staff skills and retention levels while maintaining affordable staffing cost

·         Maintain or extend planned product life cycles.

·         Keep control of room stock pricing

·         Deal with rising market fragmentation in terms of age, culture and consumer lifestyle aspirations.

 

11.0 Conclusion:

More energy is focused on strategic planning, market analysis and financial forecasting than any other aspect of the business. Development becomes a process of replication and product development an issue of cost reduction and not surprisingly, the limited services boomed and the full service sector struggled. The hotel sectors in Bahrain offer a relatively static environment. This was spurred on by the recognition that the average consumer wealth, confidence, knowledge, international experience and greater leisure time had instilled a desire and ability for greater discretionary spending. Restaurant development boomed and Sheraton faced a paradox, geared to product roll out programs was suddenly assailed by consumers demanding differentiation.

Not surprisingly, new players in the market exploited the opportunity to develop a range of “niche products such as lifestyle hotels. These challenges were the embryonic topics of debate as the world moved into a millennial celebration.

 

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