Implication of Location and Operational Problems in Black Country Museum

This report discusses the importance of location in the success of Black Country Museum and the operational problems it faces. It also explores the impact of these problems on the stakeholders of the museum.

INNOVATIVE OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Implication of location over the success of Black Country Museum (BCM)..............................3
Operational problem....................................................................................................................4
Operational problem and its impact on the shareholders of BCM...............................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Operation management refers to the management and administration of the operation of
the business in order to raise the efficiency of the business. It is like converting the entire efforts
of man, material into the final product in the form of efficient and best services. It is the essential
part of every business. No organization can perform its activities without the presence of
operation department. This report will discuss about the concept of operation problems and their
subsequent impact over the stakeholders of the business. Importance and role of location in the
success path of the business is also being highlighted in this report in the overall context of
BCM.
MAIN BODY
Implication of location over the success of Black Country Museum (BCM)
Choosing of appropriate location is one of the important element in the success of every
tourist destination and place. As BCM is located at such place which fully justifies its success
and story. As the location of BCM is related to its ancient history of coal and iron mining so
possessing of museum at such place will help its tourist to know about its ancient history. As no
tourist place would consider as successful if it has not a good share of tourist. In the same way
location of the tourist spot is also very important element in the success and raising the business
of the tourist place (Suhartanto and et.al., 2020). Since, BCM is located at such place from
where its name and place is being justifying so it would not be wrong to say that location of the
spot plays an important role in the success of the spot. This could also be understood that if the
location of museum would be such that it can't depict its importance or justifies its history then
no tourist would show interest towards such place. It will come under the category of artificial
creation. So presence of tourist spot as per its theme is very important and contribute a major role
in the success of the business too.
Since, tourist are the main element and part of the tourist spot. This means without them no
spot will be succeeded. Likewise, BCM has also greater dependency over tourist. As tourist have
major attraction towards the natural tourist places including beaches, artificial tourist spots
consisting of theme parks, man made attraction and festivals and events (Martínez and et.al.,
2019). Thus, the location of tourist spot plays an important role in its success. As BCM is famous

for raising the experience of tourist towards the exposure of open air museum so it is very
essential the selection of location will meet up its theme and objective. As this place being
situated in UK but gives an experience of village culture also so this indicates that choosing of
location is very essential in order to justify the main theme of the spot. In addition, of that
location is the primary and main base upon which entire tourist sector depends and developed.
So choosing of appropriate location will help the BCM in the achievement of success and growth
along with raising its sales and revenues with the increasing share of tourists.
In addition of that there are generally five major elements that are responsible for the
growth of the tourist destination including BCM. Among these elements environmental factors
along with historical and cultural factors plays an important role. This means that good
environment in the form of good climatic condition, beautiful view or surrounding in the mode
of good location contributes aa lot in the growth and development of any spot (Oriade and
Schofield,2019). Likewise, cultural diversity and historical approach of any tourist place
including BCM also plays a similar important role in making the success of the spot. As every
tourist and an individual want to visit only such places where they find good monuments or
ancient sculpture so presence of all these elements in the location of BCM has given this
advantage to it that it is counted among one of the successful tourist destination of the world.
Thus, it would not be wrong to said that the location of tourist place and BCM plays a major role
in the life journey as well as success of the spot.
Operational problem
Operational problem:
It refers to those problems that are associated with the operation of the business and have
direct impact over the business and its operations. Since they are associated with the business
operations so it is very essential that these problems need to be identified and addressed.
Operational problems associated with BCM:
Overbooking issue:
This is also one of the major operational problem where overbooking is being received by the
BCM specially at the time of organisation of event. When BCM organise events then a large
number of tourist participate in that event where the overbooking is being occurred with the
operation of the BCM which is not being able to handle at a moment and as result of that arise in
the form of operational issue.

Uncertainty:
This is one of the major problem associated with the operation department of the tourism
sector and the BCM. It is considered as major problem because along with changing trends and
time no event will be certain. As this need direct action and had huge impact so it is categorized
as one of the major issue and problem (Verástegui and et.al., 2019). The BCM and its operation
all face this problem. In the current time as Covid and its associated terms in the form of
lockdown has changed the entire way of working of every sector including tourism at large. Due
to Covid everything is being affected which has directly created problem for the operation
department of BCM. This means that it become very difficult for them to make changes and
handle the situation as it has stopped everything including tourism activities too. Likewise,
uncertainty in the form of occurrence of fire and natural calamity will also act acts as an
operational problem with a significant impact. Thus uncertainty and its associated impacts has
emerged as a big operational problem for BCM.
Regulation and compliance:
Compliance of laws and regulations is also one of the major issue and the problem
associated with the operation of the BCM. Since along with changing political and legal
environment many changes are also being occurred in the rule and policies regarding the
operation of the tourist spots and conduction of tourism activities (Miller, 2017). This can also
be understood as due to Covid pandemic every rule and regulation regarding the operation of
business in every sector including tourism has got changed and as a result of that it is also
essential that the business of every tourist spot including BCM has to be complied with the
changes that are being taking place related to rules and regulations. It is also to be considered
that no organization or sector or any tourist place will run its operating activities without the
compliance of rules and regulations so it needs to be carefully analysed the changing rules and
regulations otherwise it would become major operational problem that directly affect the
business of BCM.
Raising overhead cost:
This is also a major issue and big problem concerned with operation of the BCM. Since it
is quite common that no tourist place can operate its activities without the support of other
departments and personals. In order to meet the needs of those personal, along with business
need the overhead cost of the BCM is continuously rising. This has become a big problem for it

and its operation. This is because with high cost it is not possible to operate any business and
tourist spot too. Because high cost has direct impact over the profit percentage of the business
(Kaydos, 2020). So consideration of cost is very important. This means that this high and rising
cost is also considered as one of the big problem for the operation of the BCM. This cost has not
only emerging as a problem for the operation department but act as an issue for the entire BCM
also. It is also to be considered that apart from various department and personal the cost is also
being associated with the maintenance of the tourist spot and property in terms of its cleanliness
and safeguarding. This is because it is an essential element for the successfulness of any spot.
And in order to meet these requirements regarding the maintenance of BCM the cost is again an
important element. Thus, increasing overhead cost is a major issue that can affect BCM and its
operation department.
Sustainability issue:
It is one of the major issue that BCM is being suffering. The issue of sustainability and
related concept has affected and benefited the both. This means that this concept on the one hand
helps the environment in terms of its safeguarding while at the same time also create and raise
issue for the tourist sites that along with operating their business they have to take care about the
environment too ( Vahidi, Torabi and Ramezankhani, 2018). This means that it raised problem in
the operation of the BCM because along with attracting tourist and providing them services it has
to be kept ensured by the operation team of the spot that sustainability concept will be fully
implemented and executed. Implementation of this concept has affected BCM and its operation
in terms of management of adequate finance for the operation of the activities.
Apart from these there are some more operational problem that may include managing and
meeting the expectations of the guest, maintenance of tourist sites and various others are also
categorised under the category of operational problem,.
Operational problem and its impact on the shareholders of BCM
As no organization and any sector can exist without the presence of stakeholders, likewise BCM
has also stakeholders which has interest towards the spot and its betterment.
Stakeholders of BCM:
Owners:

Most important stakeholder, without their presence no organization as well as any BCM can
operate and run.
Investors:
Like the owners, investors are also an important stakeholder. This are important because they
make investment and arrange funds for the betterment of the BCM.
Employees:
Like other they are also a major stakeholder. This is because they make the actual execution of
work and implement the plans and strategies.
Government:
No sector and associated place including BCM can run their operation without the compliance of
rules and policies of the government. Thus, government is also considered as major stakeholder
of the BCM.
Since stakeholder has major impact over the business, likewise operational problems also puts an
impact upon the stakeholders too. This means that along with the rising operational problem the
stakeholder is also being affected. This can also be understood as:
In terms of determining the impact of operational problems with regard to stakeholders
then the issue that is concerned with overbooking puts positive impact towards the stakeholders
of BCM. This means that when BCM will receives more booking then as a result of that the sales
and profit percentages will raise which will affect positively towards the owners (Sedarati,
Santos and Pintassilgo, 2019). In the same way employees will also get benefitted in terms of
raising the chances of getting good share of profits and bonus.
Along with rising overhead cost the entire working of the BCM is being affected. This
has also similar impact over the stakeholder of the BCM too. Along with rising overhead cost the
most affecting stakeholder is owner. Since owner own the property and if the cost of operation
will raise then this will direct have impact over the owner. This means that the owner will be
affected in terms of non-accomplishment of its objective of rising and earning profit. Along with
rising cost, the cost of expenditure also rises so the overall profit share that can be generated will
decline (Woo, Uysal and Sirgy, 2018). This will have a direct impact over owner of the BCM.
Likewise, as the compliance of laws and regulation is also a main operational problem
because of its continuous changes. This has again had a direct impact over the stakeholders of
BCM. This means that the owners, investors, employees and various other stakeholders are being

affected. As it is very essential that there should be a compliance of laws but along with
changing situation the rules and regulations also got evolved and changed which affect the BCM
and consequently its stakeholders too. This can also be understood as with the current pandemic
of Covid the rules of operation of tourist spots got changed. This includes restriction over the
trade and as a result of that the BCM also got closed. This has put a direct and major impact over
the stakeholders of BCM. Due to such closure the owners are being affected because the whole
trade got stopped working. Similarly, it has impacted its associated employees and workers too.
They got affected in terms of non-performing of work and reduction in their salaries
(Rachmawati and Fountain, 2020). Along with that many employees got unemployed too. Thus,
this operational problem has again impact over the stakeholders of BCM.
As uncertainty is categorized as a major operational problem. This has again had a direct
impact over the stakeholders of BCM. Since all the external forces are uncertain so any changes
in them will direct put impact over the business of every sector including the BCM. This
uncertainty has again impacted stakeholders of BCM. As along with the occurrence of
uncertainty the operation of the BCM also have to change its way of working and operation.
Along with changes taking place in the operation of the BCM its stakeholders got affected. This
can be analyzed as if the uncertainty occurs in the form of raising of interest rate and imposition
of restriction on tourist activities suppose instead of 100 only 50% were allowed or occurrence of
fire and natural calamity. Then this will directly put impact over the stakeholders as the owner
will not able to grab desired level of profit. Likewise, due to imposition of restrictions, the
overall profit share of the BCM will also decline. This will again put impact over its associated
employees in terms non getting of high remuneration. In the same way if the cost of interest will
raise then it will put impact over investors because the amount of investment will be reduced.
Lastly problem related to the concept of sustainability will again impacted over the
stakeholders of BCM. Since sustainability has three measures in terms of earning profit,
benefiting the society and not harming the environment in terms of preserving natural resources.
As BCM is famous tourist spot which is famous for its living in air museum or natural
occurrence. Thus compliance of this concept also puts impact over owners. This means if the
BCM will fully consider this concept then the impact can be positive in terms of raising interest
of investors, employees and owners in terms of attracting more tourist (Roxas, Rivera and

Gutierrez, 2020). But if this concept will be overlooked then it will adversely affect stakeholders
in terms of declining their interest along with non-earning of profit for the owner.
In the same manner the other operational problem consist of meeting guest expectation and
maintenance of site is again having similar impact over the stakeholders which could either be
positive as well as negative. This means that if this problems will be meet in desired manner then
it will give positive outcome but if the problems will be overlooked then this will adversely
affect them
CONCLUSION
From the above report it is concluded that operation management plays a very important
role in the success of every business including BCM. In addition of this it is also understood that
selection and choosing of appropriate location and accordingly establishment of business and
tourist destination as per the location like in the case of BCM has a major contribution towards
the success. Likewise, it is also summarized that along with location, an occurrence of any
problem in the operation department of the business of BCM has direct and major impact over
the business activities as well as stakeholder of the BCM.

REFERENCES
Books and journals
Kaydos, W., 2020. Operational performance measurement: increasing total productivity. CRC
press.
Martínez, and et.al., 2019. An analysis of the stability of rural tourism as a desired condition for
sustainable tourism. Journal of Business Research. 100. pp.165-174.
Miller, G.P., 2017. The law of governance, risk management, and compliance. Wolters Kluwer
Law & Business.
Oriade, A. and Schofield, P., 2019. An examination of the role of service quality and perceived
value in visitor attraction experience. Journal of Destination Marketing &
Management. 11. pp.1-9.
Rachmawati, E. and Fountain, J., 2020. Role of External Stakeholders in Tourism Development
and Community Empowerment. International Journal of Applied Sciences in Tourism
and Events 4(1). pp.25-36.
Roxas, F.M.Y., Rivera, J.P.R. and Gutierrez, E.L.M., 2020. Mapping stakeholders’ roles in
governing sustainable tourism destinations. Journal of Hospitality and Tourism
Management. 45. pp.387-398.
Sedarati, P., Santos, S. and Pintassilgo, P., 2019. System dynamics in tourism planning and
development. Tourism Planning & Development. 16(3). pp.256-280.
Suhartanto, and et.al., 2020. Tourist loyalty in creative tourism: the role of experience quality,
value, satisfaction, and motivation. Current Issues in Tourism. 23(7). pp.867-879.
Vahidi, F., Torabi, S.A. and Ramezankhani, M.J., 2018. Sustainable supplier selection and order
allocation under operational and disruption risks. Journal of Cleaner Production. 174.
pp.1351-1365.
Verástegui, and et.al., 2019. An adaptive robust optimization model for power systems planning
with operational uncertainty. IEEE Transactions on Power Systems. 34(6). pp.4606-
4616.
Woo, E., Uysal, M. and Sirgy, M.J., 2018. Tourism impact and stakeholders’ quality of
life. Journal of Hospitality & Tourism Research. 42(2). pp.260-286.
1

2