Operation Management Research Paper Example | Topics and Well Written Essays - 2500 words - 2

Operation Management - Research Paper Example Introduction Fairmont hotel is a leading traditional five star pit stop for many international tourists visiting Singapore. Due to high market penetration by various leading hotel chains Fairmont is anticipating a major shift in bringing operational efficiency by focusing on increased staff training to rise up the bar in terms of customer satisfaction. Secondly traditional procedures enrooted across the management in each department lacks competitive throughput as compared to other systematically superior newer hotels. Another reason why Fairmont failed to sustain its lustre is due to its lack of emphasis towards replacement of its traditional equipment, fixture and fittings in order to keep abreast with the changing trends. Singapore city had remained economically vibrant over the past few years and thus had attracted both business travellers and tourists alike from across the borders at an increased pace. Demand had remained stable throughout hospitality sector and hotel segment, b ut the hotel’s management had felt an alarming situation whilst its occupancy rate dropped immediately in times when the pressure from either group faded. In instances like business holiday season the occupancy rate dropped more abruptly compared to other industry players or far more than the industry rate. Likewise as soon as the peak season for tourists diminished the rate drop for Fairmont surpassed that of its peers. Management is concerned regarding hotel’s obnoxious performance and fears that if no prompt action is taken to bring in higher efficiency that would match performance of its peers, it might have to face consequences like complete closure. Methodology Business Risk Management is concerned regarding the prevalent obnoxious performance and fears that if no prompt action to bring in higher efficiency that would match that of its peers, it might have to face consequences like complete closure. So in order to implement and transform a strategy shift through change management the solution is to be devised based on the current factors that relate to the business. Fairmont is making handsome profits as far as its financial statements records states. But the gap between its profitability and operating cash flows is widening day by day. The GM who had been with the hotel till his retirement last year, had hands on experience and expertise over business marketing and management, his intervention to uplift and upgrade the hotel’s outlook had remained quite low. Performance measurement standards had been predominantly relied over simpler profitability ratios under his regime. It is truly a managers’ job to bring about the relevant change within each process and critically evaluate management with acute yardstick that would enable an enterprise to foster efficient practices and remove inefficiencies. Traditional models have their certain life after which new advance theories builds upon already defined principals as with time impr ovements are crafted naturally. For such reasons product cycle and stage within this cycle is important to be defined that would translate the