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Hospitality Management Crown Resorts Limited

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Question:

Discuss about the Hospitality Management Crown Resorts Limited.
 
 

Answer:

Introduction

The hospitality industry entails the provision of quality goods and services in restaurants, casinos, hotels, and resorts (Brotherton, 2012, p. 6). Crown Resorts is an Australian based company ranked 92 out of the largest 200 companies in the country. Crown Resorts Limited operates in the casino, entertainment, and gaming sector which all fall under the hospitality industry. Crown Resorts operates various gaming and entertainment complexes in Australia such as Crown Melbourne, Crown Perth, Crown Aspinall's, and Cannery Casino Resorts among others. These complexes deal with hotels, casinos, entertainment, convention centers, online social games, and accommodation services to the tourists and other visitors. Domestically and globally, Crown Resorts faces stiff competition from other hospitality companies some of which include: Wynn Macau Limited, Wynn Resorts Limited, MGM Resorts International, Vail Resorts Inc, and Melco Resorts and Entertainment Limited among others. The target market of Crown Resorts is both children and adults of all ages, both local citizens, and tourists from other countries. The company is extending its venture across Asia and establishing a global luxury brand based on the highest quality hospitality services.

Production Systems

Production systems involve the processes, procedures, arrangements, and methods which comprise all functions needed to accumulate the inputs, processes, and deliver the marketable outputs to the target market by the company (Chermack and Kasshanna, 2007, p. 390). In the hospitality sector, a production system consists of inputs and processes aimed at delivering quality hotel, casino, gaming, and entertainment services to the tourists. The management practices of Crown Resorts in respect to the production systems are explained as below:

 

Service Transactions

The service transactions undertaken at Crown Resorts are characterized by guests experience and staff performance. The company offers site entertainment, food, casinos, convention centers, and online social games as the primary service transactions. The involvement of tourists and the internal employee's team at the company are critical elements of service operations (Coman and Ronen, 2009, p. 5680). The management recommends quality control where a high standard of service transactions is achieved at little or no defects. The company empowers employees to address guests issues by focusing on transaction services that improve the quality of hospitality services.

The current strengths of Crown Resorts service transactions underly on the quality of hospitality services to guests and tourists, defect free services, efficient operations cost controls, positive employees behavior, ability to satisfy guests entertainment needs and desires, excellent responses to guests complaint, and simultaneous delivery of accommodation, online social games, and entertainment services (Evans, Stonehouse, and Campbell, 2012, p. 90). The company enjoys highly skilled and qualified staff who ensure that these input services are deliverable to the target market in the right processes, methods, and procedures. As a result, Crown Resorts has generated a long-term advantage in the hospitality sector, and this provides the firm with a competitive edge over the rivals.

On the other side, there are weaknesses faced by the Crown Resorts in its internal entertainment, casino, hotel, food, and gaming services to the guests. These shortcomings include ineffective corporate culture, wrong public perception of the image of the firm, strict need to adhere to the set government regulations, adverse corporate governance issues that prohibit casino gambling, and lack of conducive business environment (Groover, 2007, p. 76). The weaknesses hinder the cash-flow sensitivity analysis since the hospitality manager is mandated to combine financial knowledge with the sector experience so as to offer comprehensive and reputable services to the target market in the hospitality industry.

Maintenance

The hospitality manager is entitled to set goals, plan, organize, and control all the operations of Crown Resorts. The inputs involved in the maintenance of entertainment, casino, and gaming services of Crown Resorts both domestically and globally include: minor electrical equipment for repair and replacement of appliances, casino gaming machines, computer repair technology programs, music system, and well furnished sleeping logins among others (Hall and Gössling, 2013, p. 45). The hospitality manager always directs the maintenance and repair of these inputs so as to provide high-quality output entertainment, casino, hotel, and gaming services in the hospitality sector. The set down work policies, procedures, and processes are strictly observed when offering these services to the guests and tourists.

The strengths underlying this production system include consistent cross training of service employees, involvement of personnel in setting maintenance standards and processes, valuing staff as the most important asset of the firm, established technology reward programs, high quality music systems, technologically casino gaming machines, and high quality sleeping rooms (Ivanov, 2014, p. 12). These strengths provide the company with a competitive edge against the competitors and hence making it thrive in the market.

Based on the analysis of inputs, processes, and outputs of maintenance production systems of Crown Resorts, the hospitality firm faces various internal weaknesses. These evident weaknesses include failure of the maintenance manager to make employees the product, high maintenance costs, insufficient capital for cross training employees, inability to understand visitors and restrain from beauracratic maintenance approaches, and poor record maintenance which leads to poor planning in the next summer event (Markham and Young, 2015, p. 58).

 

Repairs

Crown Resorts Limited has a reconfiguration model based on repairs approach. Crown Resorts deals with a broad range of services which require advancements, and this needs adaptable production system. The inputs used in repairs production system of Crown Resorts include refrigerators, certified technicians, digital matrix processors, wall mounted DCP1V4S panels, and MTX3 scene memory repair systems (Testa and Sipe, 2012, p. 650). The hospitality manager has assigned work to a repairs manager whose role is to sent technicians who can fix any problem that arises to the restaurant's HVAC system. The desired outputs of these technicians processes are ensuring that the HVAC hotel systems work well and keeping the entertainment site conducive and comfortable for the guests.

The strengths involved under this production system of Crown Resorts Limited have helped the company reap the maximum profits and adaptability in the hospitality industry. These strengths include: highly qualified, skilled, and innovative technicians, comfortable restaurants, conducive HVAC fans, delicious meals which attract many tourists, the ability to understand duct and fans positioning, and well maintained walk-in coolers (Testa and Sipe, 2012. p. 640). Capacity to employ highly qualified technicians enables the company to run its restaurant, gaming, and casino services efficiently since the technicians are ever present to repair any breakdown occurring.

However, grounded on the above inputs, processes, and outputs of the repairs production system, Crown Resorts if faced by various weaknesses (Slatten and Mehmetoglu, 2011, p. 98). The weaknesses underlying the replacement production system of Crown Resorts include high costs of repairs, potential disaster occurrence, the repair processes endanger the health inspection status of the company and customers, machine breakdowns, and the challenge of drafty conditions by the poorly functioning restaurant HVAC system. These weaknesses create a loophole over which the company gets competed out by its main competitors such as Wynn Resorts.

Production

The senior hospitality manager of Crown Resorts Limited acknowledges the production system as the best tool for estimating employees performance as well as maximizing the quality of service delivery to the target market. The key input elements of the production system in Crown Resorts include PA entertainment systems, qualified comedians and experts, attractive hotel structure across the country, and revenue management systems (Slatten and Mehmetoglu, 2011, p. 100). The desired outputs deliverable from these inputs include providing optimal room allocation to the guests, offering fun and quality entertainment to the tourists and visitors, and ensure dynamic pricing of hospitality services in the company.

To achieve these desired inputs, the manager is aided by various internal strengths. These advantages present to the company in the production system include: highly equipped revenue management software, highly technology based entertainment and music systems, high quality hotel production structures, transformation systems, and top quality adhesive magic tape for automatic music production for the entertainment of the guests (Riley, 2014, p. 34). This ability of Crown Resorts to transform the production processes has made it difficult for the competitors to produce the same quality of entertainment, gaming, and hotel services to the guests.

However, there are various weaknesses facing Crown Resorts internally which require the senior hospitality manager to address with immediate effect. These production related weaknesses within the company include: machines breakdowns, lack of logistical support, improper control and monitoring of tools and equipment, negligence by some departmental managers, and unpredictable production output levels due to climatic variations (Marodin and Saurin, 2013, p. 6680). These challenges lower the performance of Crown Resorts in the hospitality sector.

 

Delivery

Delivery is the final production system used by the management of Crown Resorts in delivering its entertainment, casino, hotels, and gaming services. The management of Crown Resorts uses various inputs to provide these services to the target market. The inputs include highly qualified hospitality staff, policy makers, delicious dishes, comfortable accommodation, and entertainment programs (Hjalager, 2010, p. 6). To deliver these services, the management uses transport agencies to carry guests from the airports to the company's premises, employ personnel to direct the visitors, and in strict adherence to the delivery processes and programs set by the enterprise. By this doing, quality entertainment, accommodation, gaming, and casino services get provided to the customers as the end output.

The management of delivery production systems has assisted the senior hospitality management of Crown Resorts to achieve the set goals and deliver high-quality outputs (Chon, and Yu, 2012, p. 88). This has been enhanced by various strengths which include the recruitment of professional hospitality personnel, excellent service delivery processes, positive reputation from the public, loyalty by the target market, and customer recognition programs.

On the other side, the company faces various challenges that to some extend hinder delivery of high-quality services to both the existing and potential target market. These weaknesses include unpredictable weather patterns, inability to use the previous data in designing the expected numbers of guests attendance, high delivery costs, large pays offered to hospitality personnel, competition from other companies, and unfavorable government policies (Chang, Gong, and Shum, 2011, p. 815). The managers have responded to these weaknesses by establishing rules, processes, and procedures of cost versus benefit analysis when initiating delivery production systems.

Interrelationship of the Five Production Systems

The five production systems interrelate with each other in various ways. In a hospitality firm, service transactions, repairs, maintenance, production, and delivery production systems are all based on forecasted demand spells out of the quantity of materials and time needed in delivering entertainment, hotel, gaming, and casino services (Tsang and Hsu, 2011, p. 890). The success of providing services, which in this case is the production goal of Crown Resorts depends upon the smooth integration of all production system segments under all departments in the company. There is the maintenance, repairs, service transactions, procurement, and production managers at Crown Resorts Plc who carefully work under instructions from the senior hospitality manager (Bharwani and Mathews, 2012, p. 410). The integration and interrelationships between these managers and their roles contribute to the success of production system of Crown Resorts since all entertainment, hotels, and gaming services are delivered at the highest quality.

However, the interrelationship of these five production systems poses some management challenges for Crown Resorts and these challenges include:

  1. Lack of understanding between the different production systems managers which leads to delivery of poor quality of entertainment and hospitality services in the firm.
  2. There is high vulnerability to misuse of capital since every manager in a given production system provides a budget which may not be realistic when compared to the other projections in the other systems.
  • There is a high possibility to confuse branding rationale. Interrelationships of these five production systems have made Crown Resorts mitigate customer confusion over brand proliferation and shareholder concerns over cross services impact.
 

Recommendations for Tactical Strategies

The analysis of strengths and weaknesses facing Crown Resorts has proved that there are various challenges that the hospitality company faces in its internal operations (Ariffin and Maghzi, 2012, p. 195). The following recommendations should be adopted by the management to overcome these challenges:

  1. To gain a positive public image of the company, the management should ensure a sustained delivery of high-quality guests services. Further, the company should engage in corporate social responsibilities by participating in community work.
  2. The company should strictly adhere to government policies when undertaking hospitality services to the visitors. For instance, the company should only offer services which it is licensed and always acquire intellectual property rights for the same.
  • The management should train, motivate, and train hospitality personnel as the most crucial assets of the firm. This will encourage the employees to deliver high-quality services and thus retain the customers.
  1. The company should conduct thorough marketing of its services to attract more customers and gain a competitive edge against the rivals.
  2. In the estimation of guests who will tour the company in the summer time, the company should always maintain past records of visitors numbers, their demands, and their evaluation of the quality of services delivered.

Conclusion

In conclusion, the hospitality industry has been very competitive. The change in summer patterns on tourist trends remains key to economic growth and a firm's profitability.Production systems play a critical role in the success and functioning of entertainment businesses. The interrelationship of output systems creates uniformity of direction of company's goals. Production systems offer a broad range support and comprehensive management policies which lead to efficiency of business. The fact that production systems have both strengths and weaknesses that affect the functionality of firms means that managers should be ambitious and insightful in evaluating these situations. Therefore, production systems should get integrated into the management systems of business so as to enhance production efficiency.

 

References

Ariffin, A.A.M., and Maghzi, A., 2012. A preliminary study on customer expectations of hotel hospitality: Influences of personal and hotel factors. International Journal of Hospitality Management, 31(1), pp.191-198.

Bharwani, S. and Mathews, D., 2012. Risk identification and analysis in the hospitality industry: Practitioners' perspectives from India. Worldwide Hospitality and Tourism Themes, 4(5), pp.410-427.

Brotherton, B. ed., 2012. International Hospitality Industry. Routledge.

Chang, S., Gong, Y. and Shum, C., 2011. Promoting innovation in hospitality companies through human resource management practices. International Journal of Hospitality Management, 30(4), pp.812-818.

Chermack, T.J., and Kasshanna, B.K., 2007. The use and misuse of SWOT analysis and implications for HRD professionals. Human Resource Development International, 10(4), pp.383-399.

Chon, K.S., and Yu, L., 2012. The international hospitality business: Management and operations. Routledge.

Coman, A. and Ronen, B., 2009. Focused SWOT: diagnosing critical strengths and weaknesses. International Journal of Production Research, 47(20), pp.5677-5689.

Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and tourism. Taylor & Francis.

Groover, M.P., 2007. Automation, production systems, and computer-integrated manufacturing. Prentice Hall Press.

Hall, C.M., and Gössling, S., 2013. Sustainable culinary systems: Local foods, innovation, and tourism & hospitality. Routledge.

Hjalager, A.M., 2010. A review of innovation research in tourism. Tourism Management, 31(1), pp.1-12.

Ivanov, S.H., 2014. Hotel revenue management: From theory to practice. Browser Download This Paper.

Markham, F. and Young, M., 2015. “Big Gambling”: The rise of the global industry-state gambling complex.

Marodin, G.A. and Saurin, T.A., 2013. Implementing lean production systems: research areas and opportunities for future studies. International Journal of Production Research, 51(22), pp.6663-6680.

Riley, M., 2014. Human resource management in the hospitality and tourism industry. Routledge.

Slåtten, T. and Mehmetoglu, M., 2011. Antecedents and effects of engaged frontline employees: A study of the hospitality industry. Managing Service Quality: An International Journal, 21(1), pp.88-107.

Testa, M.R. and Sipe, L., 2012. Service-leadership competencies for hospitality and tourism management. International journal of hospitality management, 31(3), pp.648-658.

Tsang, N.K. and Hsu, C.H., 2011. Thirty years of research on tourism and hospitality management in China: A review and analysis of journal publications. International Journal of Hospitality Management, 30(4), pp.886-896.

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