Impact of EFQM Model on Organizational Performance of Squire Hotel Group

1
MARKETING SERVICES MANAGEMENT
Name of the Student:
Subject Name:
Date:

2
Executive summary
The report provides insights on the impact of the EFQM model on the organizational
performance of Squirrel Hotel Groups that have been facing different managerial and quality
issues. Various issues such as inadequacy of bed capacity, stiff competition, low budgetary
allocation results into poor quality food products and services as compared to the potential
competitor. The application of the EFQM model aims at improving the performance of SHG like
in other organization such as Volkswagen and Barclays bank. SHG thus needs extensive training,
resource allocation, and commitment of all stakeholders to follow the recommendations to
implement the model that has different criterions successfully.
Table of Contents

3
Introduction......................................................................................................................................4
Squire Hotel Group..........................................................................................................................5
Squire Hotel Group Quality issues...............................................................................................5
EFQM model 2010..........................................................................................................................7
Application of EFQM to the squire hotel group............................................................................10
Performance objective of SHG..................................................................................................10
Leadership criteria..................................................................................................................11
Strategy criteria......................................................................................................................13
Succeeding through people....................................................................................................13
Building a partnership............................................................................................................14
Managing process...................................................................................................................14
Examples of service organizations that have used EFQM............................................................15
Possible Challenges that might be faced during the implementation of the model by SHG.........15
Conclusion.....................................................................................................................................17
Recommendations..........................................................................................................................18
Bibliography..................................................................................................................................20

4
Introduction
Over the past years, hospitality industry has faced numerous quality challenges that have
affected the performance leading to their closure1. The challenges thus have forced many hotels
to find better ways of upgrading their service quality to meet the set global standards and
customers’ demands such as provision of Wi-Fi connectivity, digital maps, and online menu
among many others. The high standard requirements by the ever-changing consumer preferences
and stiff competion in the hospitality industry forces some to close down unless they adopt and
implement Total Quality Management Models and other self –assessment methods; to improve
on their quality2. The most commonly used model by organizations to attain sustainable quality
products and service provision is the European Foundation for Quality Management (EFQM)3.
Thus, this paper is an exploration of how the EFQM model can be applied at Squire Hotel
Group to improve the organizational performance with focus on eliminating major challenges
facing the hotel. The paper further cites examples where the models have been successful in
improving the service of other organizations to strengthen its importance. The paper further
1 Peters, Mike, Andreas Kallmuenzer, and Dimitrios Buhalis. 2018. "Hospitality Entrepreneurs
Managing Quality Of Life And Business Growth". Current Issues In Tourism, 1-20.
doi:10.1080/13683500.2018.1437122.
2 Al Ababneh, Mukhles M. 2017. "Service Quality In The Hospitality Industry". Journal Of
Tourism & Hospitality 06 (01). doi:10.4172/2167-0269.1000e133.
3 Bolboli, Seyed Amir, and Markus Reiche. 2016. "Development Of An Instrument For
Assessing Corporate Culture In The Context Of EFQM Excellence Model". Organizational
Cultures: An International Journal 16 (2): 37-50. doi:10.18848/2327-8013/cgp/v16i02/37-50.

5
identifies possible challenges that can be faced during the implementation of the model and how
to overcome the challenges to achieve the objectives.
Squire Hotel Group
Squire Hotel Group is a three-star hotel with a specific personality and style of services
and quality foods at an affordable price. The group comprises about 20 hotels with rooms
ranging from 40-120 and located in various locations such as Warwick, Oxford, and Southport.
SHG has various types of customers entails mostly ye commercial clients and throng into the
hotel during the mid-week that register at around 80%, while weekend occupancy is at 30%.
Squire Hotel Group Quality issues
Squire Hotel Group is ranked as one of the best hotels in the world with good quality
foods and services. However, in a business environment, organizations are always exposed to
various problems, and challenges and SHG is no exception. These challenges are accelerated by
the constant change of target requirements and taste, continual entry of new business entities and
stiff competition from the existing companies that keep on improving the quality of customer’s
services and experience. Hospitality industry market share is based on the nature of customer
relationship that is majorly based on the quality services, thus identifying and addressing factors
affecting the quality of food, accommodation, and services are the key for the improvement to
the excellence.
SHG faces different issues that are identified in the case study. The major issue facing
SHG is the unavailability of modernized hotel room entry since the available one is the
traditional one that gives the hotels poor outward look. Numerous customers desire to enter into

6
a hotel are always activated by the outward look first; a method of advertisement, before
experiencing the actual food, service, and environment, thus when the entrance does not
captivate, the hotel is on the verge of losing a great number of customers.
Secondly, the hotel tends to face problems during the peak season. From the case study,
it is evidential that each hotel has bed capacity that ranges from 40 to 120, thus during the peak
seasons such as end year holidays, the hotel rooms tend to be full to an extent turning away
another guest. The turned away guest at times always feel disappointed and decides never to
come back, thus posing the group on the verge of losing potential customers. Additionally, the
hotel does not have an expansion plan to capture the bed demand during the peak season to
collect enough revenue to take them through the low-yield season.
Thirdly, SHG faces stiff competition from other hotels that have large bed capacity,
quality foods, and services. Oxford has about 115 hotels both three and four stars such as
Mercure Oxford Eastgate Hotel, Eynsham Hall, Hotel Ramada, Hotel Oxford Spires, De Vere
Oxford Thames among many others. The stiff competition brought about by incomparable
services is as a result of the budget limitation by the head office of the SHG. Thus the tight
budget tends to limit menu innovativeness of the hotels as well as reduces the chances of
employees getting required service quality training. The limitation of the budget has negatively
impacted the hotel's performance leading to loss of potential customers especially during the
peak hours such as lunch breaks.
From the analysis of the above challenges , it is evidential that SHG is at high risk of
becoming irrelevant and if closing down if the proper model is not applied to address the
challenges. Thus the proposal of applying of EFQM in the SHG is significant since the models