Value Chain Analysis for Hospitality Services Assignment Sample

• Subject Name : Management

Systems and Operations Management

Introduction to Value Chain Analysis for Hospitality Services

Materials management is defined as a function of the core supply chain which involves supply chain planning and also certain executional capabilities. Materials management can be defined as a capability that ultimately the firms use in planning the material requirements. The material requirements are gets communicated to the procurement along with other functions for the sourcing. The two groups who are internationally famous have been selected here to undergo value chain analysis. IBIS is a group of hotels which is being owned by Accor. There exist around 1218 hotels under the IBIS brand with around 155,678 rooms in totality across 67 countries (Accor, 2020). The management of the value chain within the organization ensures the joining of both internal as well as external suppliers along with the internal and external consumers.

Through this, the link also gets ensured along with the information flows, customers, and the services throughout the network. There are four important aspects of value chain analysis that is owners, brands, operators, and distributors. To compare the value chain analysis between the two hotel groups, certain aspects need to be highlighted in the task that is the comparison in the material management approaches along with its internal process. Also, the critical analysis of the organizational approaches towards materials management and logistics should be critically evaluated along with the role of emerging technologies for both of the organizations (Baille, 2016).

Value Chain Analysis for Hospitality Services - Task 1

Comparison of Organizational Approaches Towards Materials Management and Logistics

The management of both the organizations like IBIS hotel group and the Holiday Inn follows the vendor compliance program where the vendors get notified regarding the arrival of their products. In this situation, the operational integration with the suppliers assists the hotel's group in achieving the utmost efficiencies. In this context, it can be stated that the organizational approaches towards the materials management and the logistics are entirely based on integrated logistics management where almost all the business management areas can get included (Ceylontoday, 2020).

In both the organizations, the materials management along with the management of the logistics aimed in achieving the sustainable competitive advantages for the individual companies along with the supply chain members through the establishment of co-operative relationships and also through the strategic coordination between the business processes and the tactics across the entire business functions and the organizational entities. Through the logistics management, inventory management of the companies assists the companies inaccurately placing the orders and also maintaining different assortments of certain products and supplies (HNN Newswire, 2011).

Value Chain

Porter’s value chain model makes the involvement of certain primary activities like inbound logistics, operations, outbound logistics along with organizational marketing sales and support. Through the value chain, the organizational processes get well-streamlined which helps in taking the product from concept to the market. In this section, the integral linkages get supported through both of the structural as well as effective communication systems which actually makes the involvement of hiring and training the human capital and it had also been further supported through the indirect activities like that of the record-keeping along with the organizational control (Baille, 2016).

In terms of the operations, according to the Porter value chain analysis, the IBIS hotel group provides exceptional guest experiences across the globe which is being distributed across 79 countries. Besides, the new corporate hotel brand that is IBIS enables the individual hotel brands to develop distinctive identities so that the strong value proposition of the Honorary Programme can get strongly connected and developed. Again concerning operations, the management of Holiday Inn made successful Guest management to endure core beliefs that their associates are their greatest assets. The prime drivers responsible behind the organizational cost so that the efficiency, value, and product differentiation can get improved are the economies of scale, linkages, organizational policies, institutional factors, etc. The management of IBIS focuses on the cost leadership approach by integrated towards a smaller number of industry segments (Gallarza-Granizo, 2020).

The management of the IBIS hotel group is having a higher rate if the service qualities along with guest satisfaction through the development of stronger brand value as compared to other hotels. The management of Holiday Inn focuses on the green supply chain as the value chain management where it focuses on the suppliers and the distribution partners through recycling as well as reducing the energy consumption leading to the low rate of the purchasing costs (IBIS Accor, n.d.). Managing the organizational supply chain like that of Holiday Inn in terms of the operations ensures the joining of internal and external suppliers along with the internal and external consumers.

Internal Processes and Inventory Control and Production

The business of the IBIS hotel group is closely linked with partners like the suppliers of the Accor establishments who operates under the management as well as the franchise contracts. In this section, the responsibility of the IBIS hotel group is an extension of its social, environmental commitments through a proper commitment by the development of both the alternative as well as responsible supply chain models (Jing, 2020).

On the contrary, the management of Holiday Inn in the context of the materials management has planned for the procurement management which is important in the bot of the logistics and the supply chain industries after focusing that how the purchase can be done and how the product can be received from the suppliers along with the development of the relationship with venders through the management of the internal operations. It can be stated in general that under the hotel management agreement of the German law (section 627 of the German Civil Code), certain performance targets needed to be achieved by keeping in mind the hotel management agreements. The hotel management agreement needed to be considered as bonding between the business enterprises as per Section 291 of the Herman Stock Corporation Act (Glińska‐Neweś, 2020).

The Superiority of The Firms in Terms of Efficiency, Economy, and Effectiveness

The management of IBIS is efficient in the sense that it depends on the process focus which is defined as the service factory which is being characterized through the low volume long with the higher variety of the services. Along with this, the management of IBIS gets characterized through low volume along with high service varieties along with effective customization and staff direction controls and also the medium levels of the customer volumes (Glińska‐Neweś, 2020). The service process design of the IBIS hotel gets started with the Guest arrival at the hotel and ends with the checkout of the guest. In this section, the different service process stages get involved in it. On the other hand, the management of Holiday Ingo involved itself into certain use of the updated systems where the guest can be able to check out their self and do not need to stand in a long queue (HNN Newswire, 2011).

The supply chain management of IBIS is defined as the incorporation of certain activities that aim in producing the services and the products and through this, they get transformed themselves into the transitional goods and the final products which get ultimately conveyed to the customers. To achieve and satisfy the end customer’s requirements, the supply chain need to achieve certain objectives like quality, dependability, cost, flexibility along with speed. Concerning the operations, the management of Holiday IBIS engaged itself in strengthening brand loyalty through the digital well as technical innovation support (IBIS Accor, n.d.).

The management of the company in terms of the operations also scaled up with certain technical initiatives through its loyalty app and had also partnered with some boutique hotels in Germany like Kimpton Hotels and Restaurants. The management of the Holiday Inn continued to focus on ensuring and offering attractive brands so that the distinct experiences can be delivered. In this situation, the improved service along with the modern designs required to further enhance the existing brands for global growth and also the development of new opportunities to take the advantage of the organizational scale, expertise, and systems (Jing, 2020).

Competitive Advantage

The management of IBIS hotels group has recognized the need in developing the resilient online systems through which the organizational flexibilities along with the development of new resource capabilities can be adequately met. The organization had decided in redesigning the online reservation systems so that the new business processes can get easily facilitated. This way it became competitive enough as compared to other hotels. The strategic positioning that has been followed by the management of the IBIS hotel group is the change in the products so that a large number of the customers can get attracted soon as compared to other organizations and hotels in Germany (Accor, 2020).

In this situation, the low-cost leadership strategy needs to be followed by both the IBIS hotel group and the Holiday Inn where the relationship between self and the customers can get easily focused through product customization and also through the development of product reputation. As per Porter differentiation, superior organizational profitability gets generated which increases and enhances profitability margin due to the existence of the brand loyalty and there also occurs the need for the competitors to overcome the organizational uniqueness so that the future company expectations can get achieved along with the customer satisfaction through best managerial practices (Holiday Inn, 2020).

Also, the relation between the two hotels is that it enhances hotel visibility and is also having faster distribution channels through TARS reservation systems and also through the formation of the customer relationship based on which the strong revenue management systems and tools can get strategized and developed in the future.

Value Chain Analysis for Hospitality Services - Task 2

Relationship Between Two Organizations in The Context of Approaches Towards Material Management and Logistic

The hotel logistics management focuses on transport management and the orders picking. In both organizations, the existence of effective logistics operations leads to the higher flow of the revenue along with the improvement in the cost structures. The management of the IBIS hotel group is having the vendor compliance program where the vendors get notified when their product gets arrived. In this context, the operational integration with the suppliers ultimately guided and helped the hotel in achieving the highest efficiency within the least point of time (Ceylontoday, 2020). On the contrary, the logistics management of Holiday Inn makes an involvement to show the relationship between the procurement along with the vendors. In this context, the primary goal is an effective rate of compliances which generally occurs through procurement and hence the immediate feedback to the procurement staff got created at the time of establishing commitments and communications with the suppliers.

However, both the organizations follow centralized ordering processes with having favorable pricing so that the control visibility can be helped into which the suppliers can actually get ready to be shipped and also the quantity through the web-based scheduling capabilities. The internet-based inbound transportation tools assist the organizations in assisting and also controlling the visibility through which the suppliers can be able to make the shipment easily and also the quantity through the web-based scheduled capabilities. However, in the context of material management, exchanges are one of the diverse supplier programs by the Hotel Groups who had welcomed the differences (IBIS Accor, n.d.). However coming to materials management, the materials are purchased from the green partners by bot the hotel groups having lesser environmental impacts. In the context of the distribution facilities, packaging and space utilization gets focused. The management of the IBIS hotel group continued to embrace the technologies based on which the customers can be able to show their trust and this way the company goodwill can get created (Sickel, 2018).

In the context of gaining visibility and control, there exists technology which differentiated the smaller hospitality companies which struggle in managing their supply chains with the limited resources and also the budget from the large, multi-unit chains with the limited resource and budget from multi-unit chains. In the case of the Holiday Inn, the myriad business model gets followed. The purchasing in the hotel industry gets complicated by the fact that the businesses face fragmented business managerial operations which involves franchises and also individual owners/operators. This also includes the management of multiple brands under one corporate umbrella (Ceylontoday, 2020).

Both the organizations get equipped themselves with the standardization purchases and along with this, through hospitalities, the companies gained through effective technical utilization so that the cost of integrating the technical solutions can be made gainful. In both the hotel groups, the competitive advantage stems from discrete activities in the context of designing, marketing, delivering, and producing as well as support offerings. Under the material management, the successful offering is one which is gets determined regarding how the customer needs to be met and how the activities get perfumed with the adequate resources used to meet them (IBIS Accor, n.d.).

Contractual Agreements Aspects and Informal Agreements

The contractual agreement is undertaken by the management of IBIS organization with regions like North and Central America, South America, Europe, the Middle-East, Africa, and Pacific Asia. In this aspect, the management of the organization that is IBIS had undertaken the agreements where its focus should be towards the lean and mean that is focusing on the high impact properties for every targeted brand so that the maximum strategic, as well as the financial value, can be achieved. The business of IBIS co-innovate with its partners to open up new horizons to develop concrete form behind the development of positive hospitality (Glińska‐Neweś, 2020). Both the business as well as the organizational performances get closely connected which gets operated under the management and franchise contracts.

Through this, the social, environmental commitments can be extended based on which the value chain standards get uplifted gradually. On the other hand, the management of Holiday Inn franchises its brands and makes use of the asset-light strategy which helps businesses to grow and through the agreement, it tries to follow the winning model to deliver the superior value creation through brands, people, and the systems. Ultimately through this, the management of both of the Hotel Groups have tried to frame strong brand portfolios as well as loyalty program and also the development of the superior owner proposition. In this aspect, the effective channel management gets established by the organizations through the reduction of the distribution costs and also delivering better returns for their owners. The winning model especially of the IBIS hotel executes strategy through the development of the preferred brands (Holiday Inn, 2020)

Value Chain Analysis for Hospitality Services - Task 3

Role of Emerging Technologies for Both Organizations

The management of both of the Hotel Groups that is the Holiday Inn and IBIS hotel Group works with IDEO and For people to develop interior designs that make the use of the smart technologies which involve mobile check-ins and streamed entertainments in the rooms. In this case, the designs have been created through the use of the “guest insight” process to trial an also develop design concepts (HNN Newswire, 2011).

The systems development of both of the Hotel Groups involves the use of the cutting edge technology which is implemented through the incorporation of best as well as brightest technical professionals to assist the hotel group to develop industry best industry experience. The benefits out of this system development are in bringing both the passion as well as the personality among the individuals to work and also in return make the individuals involved so that they can thrive for any future opportunities to grow. Both of the hotel groups should interact with AI via chat interfaces. This trend takes advantage of the popularity of messaging apps so that the customer experiences can get improved. Through this, the guests can be assisted to schedule proper room cleaning and at the am time can also be able to check out at the time of leaving.

In addition to this, the management of both of the hotel Groups had initiated a new level in the check-in identity verification. Some of the hotels use face scanners so that the identification of the guests can get verified and at the same time the guests can be allowed in gaining access to the dining room for breakfast purposes. Block chain technology had come a long way since it became associated exclusively with the crypto currency sites. This type of technology delivers transparencies, securities along with control of the electronic transactions (IBIS Accor, n.d.). Block chain technology eliminates the need for third parties. On the other hand, the management of the organizations should involve themselves in the enhancement of the media presence through the appointment of brand ambassadors. Nowadays a positive review gets created in social media which can create a difference between the low occupancy and full occupancies. The other important emerging technologies used in the hotel groups are the Wi-Fi infrastructural overhauls, mobile automation system, robots, and infrared sensors along with the cloud services to save the data for future purposes.

The management of both of the Hotel Groups should be managing in using the online reputation management technology through which the future bookings can be predicted. This way, an online reputation can get well managed. The other forms of smarter technologies involve customer surveys, smart loyalty program management as well as mart hotel management tool. This plays a bigger role in showing how the hotels get operated. This way the implementation of the right technologies through which the guest experience can be met along with the expectations of the hoteliers needs to know the travellers better way (HNN Newswire, 2011).

“As we move toward 2020, we can expect to see more hotel properties leveraging a variety of smart tech to reduce operational costs, improve the guest experience, and exploit new sources of revenue. The opportunity is in the data. The successful properties will be the ones that invest in collecting and analyzing it in an actionable fashion” (IHG, 2020).

The HMS modules get defined after analyzing the customer management system where the total cost depends on the modules as well as the features which are filling them. Through the reservation operations, also acts as one of the emerging technologies where the guests start interactions with the hotel in booking the room. In this respect, the reservation module should be taken into considerations seriously at the time of the hotel management and software development. Through this, the reservation details also get added and stored in the database through which the data transfer can be created well to the front-desk platform so that the staff members can be able to review it. Here exists certain strategies like pricing, distribution along with market segmentation. This involves the affordability of different demographics which is paramount to underhand that how the price can get easily distributed along with the room sales across the various channels (Ceylontoday, 2020).

Factors Responsible for The Role of Emerging Technologies for Both Organizations

The smart thermostats as well as the occupancy sensors can be able to monitor and also respond to the occupancy fluctuations. This thing is also one of the important factors through which energy consumption can be bale to get optimized through which the hotel cost can get reduce. This way the resale value of the hotel can get increased at a significant use.

The other factors that are responsible besides the role of the emerging technologies for the organizations are big data and big data protection. The benefit of smart technology is the data aggregation and this way the tings get actionable. In this stage, the biggest concern is the necessary data harbouring to keep the data on the customers to be safe so that the massive data breaches can get voided and also helps the customers from getting falling into the risks (Holiday Inn, 2020). The smart reserved parking is also being used by the hotels like that if the smart sensors along with different hotel applications so that the hotels can be able to save the labor costs if the hotel groups and hence the smoother experiences can be obtained through which the parking inventory can get managed well.

The critical analysis has been made regarding the operations and the supply chain management of the Hotel Groups through the literature and also through the analysis by incorporating the interpretation as well as the consideration of the challenges so that the real-world factors can be related to the companies under the scrutiny. The leveraging of the smart technique so that the organizational operational costs can get reduced and hence better income flow can be generated through the exploitation of the new revenue sources. The opportunity lies in the data and here the successful properties are the ones that invest in the collection and the analysis in the actionable fashion (Glińska‐Neweś, 2020).

Conclusion on Value Chain Analysis for Hospitality Services

To conclude, it has been found that the management of both of the organizations have organized themselves beautifully so that their mission regarding the servicing the preeminent global hospitality be the primary mission Along with this, The other things that they need to look after this the system development so that they can be able to serve the guest with stylish accommodations along with the defined luxuries and also through the creation of the positive stays so that the simple guest directed services, as well as the thoughtful local choices, can be made easily.

Through this, innovative as well as the modern approaches can be reflected and highlighted. Along with this, the different operational models along with the effective value chain analysis have been conducted through which the personal sense of the comforts can be developed and also the style with the attentive as well as unscripted services.

References for Value Chain Analysis for Hospitality Services

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IHGPLC, 2020. IHG signs contracts for four new hotels in Germany. [Online]
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Jia, S., 2020. Motivation and satisfaction of Chinese and US tourists in restaurants: A cross-cultural text mining of online reviews. Tourism Management, Volume 78, pp. 104-171.

Jing, Z., 2020. Knowledge, practice and emotion in migration: The lifeworld of Chinese migrants in Germany. Chinese Immigrants in Europe. Image, Identity and Social Participation, 5(1), p. 53.

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