Telek Benoe Hotel Case Study

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Figure 3: Telek Benoe Bali’s goal position in Bowman’s Clock

The corporate goal of the Bali branch is illustrated in figure 3. The Hybrid dimension is implied to consumers that the product or service quality is at a high standard while maintaining an element of low price (Riley J., n.d.). The hybrid is basically how customers expect the company to deliver prior to experiencing the good or service themselves. The company has to stay true to their intended goal lest they be categorised in the uncompetitive dimensions like 6, 7 or 8. In the meantime, new Telek Benoe Bali customers see the company at dimension 3, but deliver like dimension 8. Bowman’s Clock illustrates that positioning can change eventually and the perceived value for Telek Benoe can lower just as similarly.

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Figure 4: Telek Benoe Bali’s potential position in Bowman’s Clock

- Corporate Social Responsibility

To assess the accountability of a company to its social duties, it should look internally and externally at how it impacts various stakeholders consciously and unconsciously investing in its future. It can be the small improvements on specific practices that determine the effectiveness of day to day procedures (McWilliams and Siegel, 2000). It is stated by the General Manager himself that if he achieved his financial targets, then no one was concerned about how he ran his operation. Whilst this appears to be the most efficient management style as argued by many firms, it completely discounts other variables can potentially be beneficial in the long-run. Such variables look at research and development as method of investment in an organisation’s technical capital. These R&D theorems conclude from empirical evidence that investing in technical capital will eventually result in knowledge enhancement, which in turn, will lead to process and product innovation (Griliches Z., 1979). This activity allows the user of the approach to increase productivity and long-term economic growth. For Telek Benoe, research and development is a practice not present in the current operations of the branch in the given case. This is evidenced by the lack of productivity in its operations and the absent development through its existing research.

- Recommendations

As mentioned before, Telek Benoe in Nusa Dua does not need any major overhauls in its marketing, but rather keep with the quality that is communicated to their potential customers. An observable condition to this rule is the shuttle service where it should be communicated to consumers that their transport picks up passengers from other hotels. This appears to be a common practice in many South-East Asian countries, but it appears that those hotels implement various traits in their shuttle bus to keep guests busy. Improvements can be made in this aspect in various ways like a tour guide to keep historically interested patrons entertained while they await arrival to the hotel. Many more improvements in different criteria will be discussed in the following sections.

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4.1 Recommendation 1 – Systematic Overhaul

One of the ways to fix the hotel’s standards requires a complete overhaul of the management system. These include investing in social, ethical and environmental care in the hotel’s processes at all times. Management has to maintain quality as a high priority and not only whenever the general manager is visiting. These include setting certain standards in value, performance and customer feedback for the hotel, which must be met without any exceptions. Introducing an approach in both CSR and TQM would significantly boost the development of Telek Benoe in relation to the perceived value of its customers. The recruitment process also needs to be aligned with these performance standards as it is expected by both management and patrons that employees have an understanding of English, proper hospitality etiquette and efficient delivery of service. Examples of a systematic overhaul can be similar to Crosby’s 14 step theory in total quality management which places absolute focus on quality.

Crosby’s 14 step theory (Bowen R., 2013)

- Attain total commitment from management

- Form a quality improvement team

- Create metrics for each quality improvement activity

- Determine cost of quality and show how improvement will contribute to gains

- Train supervisors appropriately

- Encourage employees to fix defects and keep issues logs

- Create a zero-defects committee

- Ensure that employees and supervisors understand the steps to quality

- Demonstrate your company's commitment by holding a zero defects day

- Goals are set on 30, 60, or 90 day schedule

- Determine root causes of errors, remove them from processes

- Create incentives programs for employees

- Create a quality council and hold regular meetings

- Repeat from step one

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4.2 Recommendation 2 – Service Quality Dimensions

To address the major gaps in quality, an organisation must attain significant elements in their service quality; this is where the dimensions of service quality come in. The consumer centered, SERVQUAL research demonstrates that there are five dimensions that are considered important to customers (Berry, Parasuraman and Zeithaml, 1988).

Tangibles: Physical aesthetic of facilities, utilities, staff and communication materials.

Reliability: Performing the promised service accurately and dependably.

Responsiveness: Willingness to help guests and provide ready service.

Assurance: Enthusiasm,