Monday, June 2, 2014

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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http//www. Sheraton.hotel.com

 

 

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