Business Performance Evaluation Methods and Analysis

The assignment explores various factors that impact consumer demand in the market, including sustainable tourism, ASP, brand image, products and services quality, pricing strategies, and cost plus pricing. It also examines the pros and cons of different methods for business evaluation and the importance of applying appropriate approaches to make services better and effective.

Hospitality Operations
Management

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1.................................................................................................................................................3
1.2.................................................................................................................................................4
1.3.................................................................................................................................................4
1.4.................................................................................................................................................5
2.1.................................................................................................................................................6
2.2.................................................................................................................................................6
2.3.................................................................................................................................................7
2.4.................................................................................................................................................8
TASK 2 Questionnaire...................................................................................................................8
3.1.................................................................................................................................................8
3.2.................................................................................................................................................9
TASK 3 Individual research........................................................................................................10
4.1...............................................................................................................................................10
4.2...............................................................................................................................................10
4.3...............................................................................................................................................11
CONCLUSION............................................................................................................................12
REFERENCES.............................................................................................................................13

INTRODUCTION
Operational management in hospitality business refers to the work done in various sectors
such as restaurants, hotels, resorts, catering and casinos that deal with tourists generally. Hilton
hotel is one of the well-known hospitality business located in London, United Kingdom. There
are so many rooms, and various types of services provided by firm. In this report, the nature of
Hilton hotel products and services, influences affecting pattern of demand within operational
activities, consumer profiles and their differing requirements and factors affecting ASP (Average
spending power) is explained. Further, key stages in products and services development, features
contributing towards perception of consumers along with constraints and opportunities affecting
products and services development and different merchandising opportunities for products and
services is discussed. Finally, the report will cover, various methods of pricing consideration
along with factors affecting generation of revenues and profits, use of different appraisals
techniques and performance measure, drawbacks and effectiveness of various quantitative and
qualitative appraisal and application of appropriate approaches for Hilton hotel operational
activities is covered.
TASK 1
1.1.
In hotel businesses, products and services can be beverages and foods. These are very
much perishable. Hilton hotel is planning to build a restaurant, more bedrooms, banqueting
center and a conference hall. Various pros and cons of planning and other policies according to
the nature of Hilton hotel's product and services area described below:
Perishable: The beverages and food items along with other type of business product mand
service is not much durable and also much unpreserved ( Styles, Schoenberger and Galvez-
Martos, 2015).

Intangible and tangible elements: The tangible services of Hilton hotel are exterior and interior
designs along with equipment and ambient condition which is visible to all the consumers.
Intangible services are reliability, responsiveness, empathy and assurance provided by firm.
Service areas: There are many Services provided by Hilton hotel such as room divisions for
consumers, beverage and food services, meeting hall for discussions and conference and finally
banqueting system that helps customers to arrange feast like dinner or lunch.
1.2.
It can be said that hospitality firm do not have similar demands all over the year or even
in all the days. In addition to this, there are various factors that have an impact on demand of
consumers in the market and also varies their choices. Four major factors which influence pattern
of demand are discussed below:
Seasonality: the major consumers of Hilton hotel are hikers, ramblers, tourists and people who
love to travel different nations (Law, Buhalis and Cobanoglu, 2014). In most cases, it is seen that
such consumers come in winter or worm season. In this season, demand is high as compared to
other seasons.
Time of the week: Families and couple are another crucial customer group of hotels, who
mainly prefer vacations and weekends to travel. In this term, weekend may have higher
demands.
Healthy livings: Consumers who are very concerned towards their safety and health mostly
prefers to lead safe life choices hotels where they are able to acquire the satisfaction and standard
level. This factors also affect demands of customers of Hilton hotel.
Economic factor: The demands of consumers falls, if there is any crisis regarding national or
regional in the economy of the particular nation. In addition to this, income of major type of
consumers falls is also a reason demand fall.
1.3
The consumer profile of Hilton hotel can vary o the basis of their respective requirements
and expectations effectively. Here, based on the expectation’s differential, profile of the
customers is prepared.

Hospitality business types: There are major three different types of hospitality firms such as
travel and tourism, food and beverages and accommodations. In this case, Hilton hotel is based
on the accommodation’s services provided to consumers (Evans, 2015). This is the reason why,
consumers come here to meet their purpose of accommodation.
Pricing attentions: Couple and families are the major types of consumers for Hilton hotel. Such
clients are very much worried for their products and services rather than their cost. This enahnces
prices for services delivered to them.
Meal and service experience: Meal and service standard of its consumers is high. In addition,
various customers have different choices such as sportsmen prefer healthy food as compared to
heavy foods. Service is also an important part of this standard.
Expectation requirements: Various types of customers visit Hilton hotel that their demand is
also different for sure. In case of demand differential, consumers get services according to their
prospects.
1.4
In case of hotel business, consumers are accessible with different products and services
with various level of prices, which brings ASP (Average spending power). In addition to this,
ASP reveals consumers overall expected impulse or whims (Xu and Gursoy, 2015). In this
context, there are different factors that vary ASP which are described below:
Size of income: It can be said that the level of income for overall customers is more as compared
to the average spending power of consumers. The average spending power of client is raised if
the income level is higher.
Status: It is one of the crucial factors that is normally based on which consumer average
spending power is upgraded. Thus, if a client is a royal person socially, he is not able to lessen
cost by any mere case, rather let him make advanced costs with quality product and service. This
will help to develop his average spending power.
Cultural and social effects: Sometimes, various social and social factors also affect the average
spending power of the consumers. For example, in case of any major event, consumer is keen to
spend more than any other occasion or event.

Economic situations: Finally, situation regarding economic of customers comes. It is always
above the belief of customers, rather lower condition in terms of economy are enforced to cost
less in terms of services provided by Hilton hotel (Van der Wagen and Goonetilleke, 2015). This
will lessen their average spending power.
2.1.
There are some key factors such as product and service development opportunities,
perception of customers and related strength and weakness towards business needs to be consider
while analyzing research over planning. The key stages to initiate a plan for development are
discussed below:
Idea evaluation: Operational manager of Hilton hotel needs to analyze viability of ideas along
with related opportunities and treats. In addition, product development idea needed to be tested
effectively.
Market research: Market research is also important that demand of new products and services
along with consumer preference needed to be analyzed.
Market segmentation: Market segmentation is crucial in case of hotel business. This is the
reason to have a choice between price taking initiative and its plan to differentiate cost. Reducing
cost will help to attract more customers. In this case, sportsmen and sport enthusiasts will come
more rather than couple or families.
Product development: It is a creation of product that is different in terms of characteristics to
deliver additional benefits to consumers. This involves, modification, presentation and
formulation of entire product.
Concept development: It is a basic understanding to make sense of ones’s world. This involves
ideas about objects, environment and self and others.
Awareness and advertising: Upholding the special features of products and services to the
consumers is also an important factor (Ryan, 2015 ). The focus in advertising should be on
market desire, persuasion, increasing selling and awareness creation effectively.
2.2
Hilton hotel requires to create an effective position in the market in terms of brand image,
products and services quality in order to create good impression and attract consumers. This will

help to improve customer perception towards services provided by Hilton hotel. Here are some
contributing factors described below:
 An effective and strong brand image about products and services delivered by Hilton
hotel can draw positive perception of consumers.
 Food menu is also an important part that delicious, nutritious and dietary can attract
number of customers.
 Special facilities and arrangements for the disabled person can make high popularity of
hotel.
 More consumers become willing for the hotel if they ensure resource availability and all
access to the consumers (Xu and Gursoy, 2015 ).
 Preference is affected by style and quality of service. Consumers hold good perception, if
the hotel is able to provide separate service to male, female and even families with
separate service holders.
 The menu of food along with reasonable prices is needed.
 Letting the consumers to use sufficient space is also crucial to hold an effective
perception towards hotel.
2.3
Opportunities helps business to boost profitability and sales. On the other hand, various
constraints restrict hotel operations that leads to decrease of profits and sales. Now, for Hilton
hotel, in order to enhance and appraise opportunities of the product and service developed, a
swot analysis is needed.
 Hilton hotel has great opportunities to compete other firms in the market, when it is going
to deliver larger and similar types of facilities in new process.
 The firm is also scheduling to grasp variation of consumers ranging from couple, single
person, families to sport enthusiasts and sportsmen (Lashley, 2015 ).
 Hilton hotel is also planning to enhance effectiveness of its services in order to attract
wide range of consumers. This will help to deliver extra services to gain competitive
benefits.

 One of the constraints of hotel is that amount of opportunities regarding business around
the city is very less.
 Another constraint is that the firm is unable to find customers who are actually looking
for their services because of the wide sector of hospitality business.
2.4
In this globalized word, people need to travel much for both recreation and business
purpose, which helps to enhance hospitality operations overall world. It can be said that
hospitality sector gets many opportunities regarding merchandising over other businesses. Here
are some aspects as follows:
In most cases, tourists and other people expect high quality services on the basis of their
respective buying power. It is an opportunity for Hilton hotel to make extra values with premium
control.
The financial conditions of tourists of nation is developed, then it provides an effective
merchandising benefit to hospitality business (Thomas, Kitterlin-Lynch and Lorenzo Del Valle,
2015).
Thus, it can be said that different merchandising opportunities are available for hospitality
business to improve their production and profitability effectively.
TASK 2 Questionnaire
3.1
In the sector of hospitality business, there are various types of methods observed such as
market orientation pricing, price of products and services, cost plus pricing, competition-based
pricing etc. the hotel is able to make profits by determining pricing. Thus, profitability level has
also various considerations (Di Foggia and Lazzarotti, 2014 ). In the situation of Hilton hotel,
there are two types of main approaches of pricing are described below:
Cost oriented pricing: This pricing method is known for humblest form of pricing, where the
value is calculated on the basis of manufacturing cost. Percentage of profits are also added to the
manufacturing cost in order to determine final price of the product or service.

Market oriented pricing: This pricing method is based on the competitor pricing strategy in the
market which is done by market research. On the basis of competitive pricing strategy, market-
oriented price is computed.
Apart from this, service charge, cover charge and minimum charges are not applicable as
these are not useful in conducting pricing strategy to gain competitive advantage for the firm.
3.2
There are various factors affecting hospitality business revenue’s and so profits.
Revenue making factors such as average spending power, sales mix and client turnover
along with profit factors such as elasticity of demand, portion control, labor intensity and
shelf life also affect hospitality business (Pirani and Arafat, 2014 ).
Hospitality firm: Hilton hotel.
Particular Elements to be considered Remarks
Labor Intensity Amount money and labor used. In Hilton hotel, the use of money
is much less than the labor. This
is the reason; the sector is labor
intensive.
Shelf life Value of brand, number of
consumers, amount of client
satisfaction and level of positive
step taken by organization.
An effective development
strategy towards products and
services is crucial to remain
sustain in the market.
The level of client satisfaction
must be enhanced.
Elasticity of demand Demand of product and service. In the Hilton hotel, demand of
price-elasticity is inflexible which
describes the changes in demand
of consumers is less than changes
in the price of services and
products offered by firm
(Sundiman, Mursidi and Putra,
2016) .
Standardization Sanitary issue, menu selection
and coming of royal consumers.
Hilton hotel management is very
much concerned about their level
of usual in menu and various
services. This is the reason, royal
consumers come more.

TASK 3 Individual research
4.1
In the operations of Hilton hotel, appraised based on various methods helps to know the
pros and cons of entire functioning activities and systems (Osman, Johns and Lugosi, 2014 ).
Here are some evaluation methods to measure total performance of company discussed below:
Quality management: In this process, the administration needs to examine service quality of
not only products and services but also need to control ways to improve them effectively.
Speed of delivery: Service quality depends on how fast customer receives his order, which is
very important in hospitality business.
Developing quantitative and qualitative data: Different qualitative, (customer satisfaction,
reliability and service quality) as well as quantitative (Number of royal consumers, customer per
week, pricing strategy related to competitors) needs to collect in order to analyse and accomplish
appraisal. This helps to measure performance of operational activities.
Evaluation and data analysis: The quantitative and qualitative data is compared to expected
performance to evaluate the present performance of Hilton hotel.
Sales performance: Sales performance is also important to calculate sales revenues of firm
which in effect leads to the enhance of net and gross profit (Rivera and Pizam, 2015 ).
External comparison: In order to do external comparison, a related hotel can be set as the
benchmark to compare service quality and pricing strategies. This helps to get idea of developing
operations.
Performance evaluation is one of the greatest techniques to measure business
performance as well as workers working there. Service cost of the products and services is
considered for this along with time management techniques.
4.2
In most cases, evaluation methods are based on example information, which is not useful
sometimes as the true indicator for performance. For an example, the products and services
offered by Hilton hotel, behavior and attitude of workers, skills and knowledge of employees are

considered as for the method of quantitative appraisal (Pirani and Arafat, 2014 ). In addition to
this, these factors can be determined by various procedures such as interviews or questionnaire or
even through group of meeting which is applied to the wider populations effectively.
The major disparage of the qualitative method is that the outcomes generated by the
analysis may not applicable for the broader population.
4.3
.
Business analysis is a practice of enabling changes within firm by determining needs and
solutions to deliver value to stakeholders. In addition, business evaluation is a process of
estimating economic value of owner’s interest in firm. Business plan includes objectives, goals
and operational activities done by management to accomplish them.
It is very difficult to consider the approach while applying various approaches for the
operations of hospitality firm such as accommodation, marketing, service or facility and also
demand generating source. For example, hotels in India facilities are enhanced by adding value
added services that consumers are treated by lodging facilities delivered to them. On the other
hand, catering market is also an important factor which needs to be considered by Hilton hotel in
order to generate production and profitability.
Organised groups, house guests and non-residents are three categories available for
business to raise their profits. Along with that, three different source of demand such as
institutional hospitality business, recreational and transit are operational activities done by firm
(Di Foggia and Lazzarotti, 2014 ). These are all the factors that are effective enough to create a
good impression in order to build effective marketplace demands. All these value-added facilities
can be planned for the further growth of corporate operational activities in order to enhance
profits and production.

CONCLUSION
It can be determined from the above statement that there are various factors that have an
impact on demand of consumers in the market. Sustainable tourism is also helpful to determine
attempts towards employment for people. In addition, ASP reveals consumers overall expected
impulse or whims. It is analyzed that effective position in the market in terms of brand image,
products and services quality helps to create good impression towards consumers. There are
various types of methods observed such as market orientation pricing, price of products and
services, cost plus pricing in order to develop overall operational activities to make profits.
Appraised based on various methods helps to know the pros and cons of entire functioning
activities. Application of appropriate approaches helps to make services better and effective.
Further, it is examined that further expansion of business operational activities is necessary to
enhance profits and production.

REFERENCES