Hospitality Operations Management SWOT Analysis

This assignment provides a comprehensive SWOT analysis of Pacific Coffee, a well-known coffee chain. It identifies the company's strengths, such as its brand recognition and customer loyalty, as well as its weaknesses, including high operational costs and competition from other coffee chains. The opportunities section highlights potential growth areas, such as expanding into new markets and increasing online sales. The threats section discusses potential risks, such as changes in consumer preferences and increased competition. The assignment concludes by discussing the importance of hospitality operations management in enhancing customer satisfaction and profitability.

Hospitality Operations
Management

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
LITERATURE.................................................................................................................................1
Analysis of Pacific Coffee..........................................................................................................1
SWOT.........................................................................................................................................1
Application of 5 performance objectives into Pacific coffee......................................................2
Capacity management (Improvement in quality and process design)........................................3
RECOMMENDATION AND CONCLUSION...............................................................................4
The balance scorecard.................................................................................................................4
The service quality......................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Hospitality operations management plays very important role in business to provide
effective services to each customer. It also maximises amount which obtains to produce or
consume in systematic manner (Chan, Lacka and Lim, 2017). In this context, present report is
based on Pacific Coffee company which committed to serve coffee to Hong Kong people and
fostering deep loyalty for customer. For gaining insight knowledge of the company, report
covers assessment of company and SWOT analysis. Furthermore, it includes 5 performance
objectives into the organisation. Moreover, report also provide recommendation to the company
to enhance performance in significant manner.
LITERATURE
Analysis of Pacific Coffee
Pacific Coffee company provide effective services just like five-star enterprises to their
customers who love it and also loyal for the businesses. At different branches of company unique
features are applied by the company for developing effective results (Mostajer Haghighi, Baum
and Shafti, 2014). This organisation opened its first branch in 1992, providing world class coffee.
It helps in satisfying customers and growing demand for special coffee beverages. Mainly the
chosen organisation dealing with 124 outlets in the operations to enhance brand performances for
expansion of functions.
SWOT
In order to develop effective results, Pacific Coffee Company need to assess their internal
and external environment for enhance profitability and revenues. In this context, SWOT analysis
can be conducted in business:
Strength
Pacific coffee is the profitable enterprise which earns more money in the business unit.
Their profits continuously increasing day by day. It is the regional coffee brand which build
reputation for fine products and services (Cohen and Olsen, 2015). The company has almost 98
cafes and shops in more than 8 cities. With serving effective services, the company raising their
efforts which dedicated to several kinds of people such as disable, children, etc. It makes very
positive image of the organisation in front of customers.
1

Weakness
However, Pacific Coffee company weaker to make creative and continuous incorporating
product development. Weakness especially magnified with constantly that change and demand
for the market. It creates vulnerability in the company position. In order to solve this problem,
the enterprise can focus on providing high quality of coffee to customer to produce line of coffee
(SWOT analysis of Pacific Coffee Sample. 2017).
Opportunity
Pacific coffee company continuous grow their functions that increase their revenue.
There are several opportunities for the selected enterprise in the technology savvy Hong Kong
market. The organisation has been strategically developing business aspect which bring several
opportunities (Galliers and Leidner, 2014). Increasing of technology also determines to enter in
new place for continuous shopping.
Threat
Pacific coffee company faces many issues with entering in new place in which they offer
more diversified and creative coffee products at low price. Due to continuous entrants of many
businesses, there is high competitive market so that it creates threat for the selected business.
Further, the company also facing difficulties to set their price which also generate stress to
provide quality in coffee (Sánchez-Ollero, García-Pozo and Marchante-Lara, 2015).
Application of 5 performance objectives into Pacific coffee
In respect to create effective results, following are 5 performance objectives which have
been implemented to take response as the important basis. Further, in Pacific Coffee Company
data collection began with small sample of questionnaire for attribute formation. There are main
10 respondents have been taken by the chosen business who are regular customer and loyal for
the enterprise (del Mar Alonso-Almeida and Bremser, 2013). These elements are more important
aspect that are highlighted for further research as well. It can be classified as follows:
Objective names Aim
Price Price is the main performance objective
element which include cost of coffee drinks.
Environment Environment includes several aspects such as
comfortable seating, atmosphere, ambiance
2

and facilities. In this objective, the chosen
business will easily develop their operations
without harm to the environment
(Aboelmaged, 2014).
Variety of drinks In the business variety of drinks, there are
different range of choice available to
customized level.
Convenience of location Convenience of location determines as the easy
store which founded and also reached in
effective manner for several customers.
Quick service time Another objective of the chosen organisation is
to determine time which taken from line as
well as time to deliver as soon as possible
(Chan, Lacka and Lim, 2017).
Capacity management (Improvement in quality and process design)
In the capacity management, three main aspects have been taken such as define capacity,
measuring capacity and strategies for managing it. Capacity in Pacific Coffee Company defines
as the maximum amount which contain, produce and consumer. Further, capacity planning is the
strategic activity which includes decisions such as size and location for the facilities (Sánchez-
Ollero, García-Pozo and Marchante-Lara, 2015). It includes operational activity which has aim
to assess resources and level to fulfil demand of customer. In the chosen business unit, three
components have been taken such as capital, labour and flow time. With the help of capital, the
organisation can implement building, resources, equipment, etc. Labour includes people and
flow time which consist process cycle with putting time on per unit. Adding value, time, etc.
including for implement waiting time or transportation (Cohen and Olsen, 2015).
Capacity utilisation includes proportion of maximum that is effective to work in
significant manner. With the help of average time one flow unit pass through the process from
starting to end. Rate consists actual number of unit that pass-through system in a given period.
Capacity management in Pacific Coffee company includes volume and time which increase
3

processing through changes in volume elements from physical aspects. Further, redesign also
important process which take less time. Bottlenecks also included in capacity management which
develop through theory of constraints. It involves all limited resources is the bottleneck such as
upstream queues to enhance activities for effective process. It is used to improve processing
capacity treat the bottleneck.
RECOMMENDATION AND CONCLUSION
Following recommendations can be given to the chosen organisation:
Recommendation for sit in customers
At workplace of Pacific Coffee company, sit in customers is very important element
which advise for target revitalizing the business environment that is the greatest advantages. In
this aspect, the organisation need to set Wi-Fi hotspots in all their locations and using for main
marketing objective (Sánchez-Ollero, García-Pozo and Marchante-Lara, 2015). It is the best way
to attract so many customers together at workplace. With this regard, it need to be available for
customer to use after purchasing with product password also required in it. To maintain seceracy,
it need to be changed it in month or week as well. With hosting of Wi-Fi facility, customer can
easily satisfy and connect with each other so that it is the best way to attract many people.
Further, redesign in the store for sitting and adding more value to floor plan. Each seating area
consist of two power outlets to conserve energy.
Recommendation For takeaway customers
The chosen organisation also need to take issue to improve overall services with time
convenience of the location. It is important attribute to takeaway customer segment. Through
recommend online ordering system and customer loyalty program, effective results can be
develops at workplace. With taking online ordering system, the selected business can create
website for login account and able to take pre-order food or drinks. Customer can also able to
choose size of drink and food product which create loyalty towards business products.
The business can also start application of smart phone
From the past decades, it has been seen that in market there purchasing power rising due
to smart phones. From the help of survey, it has been found that smart phone is second highest
thing which penetrate to the customer that beneficial for Pacific Coffee company to attract them.
4

The balance scorecard
In this way, Pacific Coffee company need to make performance metric in their strategic
management to identify and improves internal functions. Their results comes as external
outcomes which used to measure and provide feedback to organisation. Balance scorecard is
strategic planning and management system which used by the organisation to communicate and
trying to accomplish goals and objectives. It also demonstrates prioritize projects for products
and services (Mostajer Haghighi, Baum and Shafti, 2014).
The service quality
Service quality defines as the conformance to specifications which included in products
and services. It is a degree to enhance customer expectations to satisfied them in significant
manner. It means, Pacific Coffee Cafe pursuing right at first time in which fair exchange price
and value determines in business. In addition to this, it is also consistent attention to detail plan
and objectives. It includes philosophy of the business excel.
In service quality, there are several factors included such as tangible, behaviours and
organisation. It can be classified in the following manner:
 Tangible: In the tangible elements, layout, Aesthetics, cleanliness, comfort,
functionality, reliability, etc. included which required in Pacific Coffee cafe. This is
because, in the organisation these elements' tangible and customer attracted easily (Chan,
Lacka and Lim, 2017).
 Behaviours: Behaviours aspect in the chosen business includes attentiveness, care,
commitment, competence, flexibility, integrity, responsiveness, etc. (Sánchez-Ollero,
García-Pozo and Marchante-Lara, 2015). In the selected business unit these elements
requires in each staff member so that they can easily make efforts to attract different
people at workplace.
 Organisation: Organisation includes availability of staff members, products availability,
facilities, flexibility, security, etc. In this aspect, targets could be achieve through
implementing several values at workplace (Mostajer Haghighi, Baum and Shafti, 2014).
5

CONCLUSION
From the above report, it can be concluded that hospitality operations management is the
important business to enhance satisfaction and profitability as well. In this aspect, Pacific Coffee
company has been taken for analysis and ascertain effective results. Furthermore, it summarized
about SWOT analysis which impact on the performances objectives of the chosen business with
implement new products and services.
6
Illustration 1: Factors in service quality

REFERENCES
Books and Journals
Aboelmaged, M. G., 2014. Linking operations performance to knowledge management
capability: the mediating role of innovation performance. Production Planning &
Control. 25(1). pp.44-58.
Chan, H. K., Lacka, E. and Lim, M. K., 2017. The role of social media data in operations and
production management. International Journal of Production Research. 55(17). pp.5027-
5036.
Cohen, J. F. and Olsen, K., 2015. Knowledge management capabilities and firm performance: A
test of universalistic, contingency and complementarity perspectives. Expert Systems with
Applications. 42(3). pp.1178-1188.
del Mar Alonso-Almeida, M. and Bremser, K., 2013. Strategic responses of the Spanish
hospitality sector to the financial crisis. International Journal of Hospitality
Management. 32. pp.141-148.
del Mar Alonso-Almeida, M. and Bremser, K., 2013. Strategic responses of the Spanish
hospitality sector to the financial crisis. International Journal of Hospitality
Management. 32. pp.141-148.
Galliers, R. D. and Leidner, D. E. eds., 2014. Strategic information management: challenges and
strategies in managing information systems. Routledge.
Mostajer Haghighi, A., Baum, T. and Shafti, F., 2014. Dimensions of customer loyalty in
hospitality micro-enterprises. The Service Industries Journal. 34(3). pp.251-273.
Sánchez-Ollero, J. L., García-Pozo, A. and Marchante-Lara, M., 2015. Measuring the effects of
quality certification on labour productivity: An analysis of the hospitality sector.
International Journal of Contemporary Hospitality Management. 27(6). pp.1100-1116.
Online
SWOT analysis of Pacific Coffee Sample. 2017. [Online] Available through:
<https://blablawriting.com/swot-analysis-of-pacific-coffee-essay>. [Accessed on 6th
September 2017].
7