Critical Success Factors of Total Quality Management

This assignment requires a comprehensive review of existing research on total quality management in the hospitality industry. It involves analyzing various publications, including journal articles, conference papers, and books, to identify critical success factors and trends in the field. The task also includes evaluating the impact of online and social media recruitment, customer relationship management, and other aspects relevant to the hospitality industry. By completing this assignment, students will gain a deeper understanding of the key drivers of quality management in the hospitality sector and be able to apply this knowledge in real-world scenarios.

INTERNATIONAL
HOSPITALITY
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background of international hotel industry and tourism.............................................................1
Background to Hotel company....................................................................................................2
SWOT analysis of selected hotel company.................................................................................2
Background to Global Hotel and Tourism industry – developed and emerging markets...........3
Background to emerging markets...............................................................................................5
PEST of selected emerging market.............................................................................................5
Analysis of SWOT and PEST.....................................................................................................6
Hotel strategy that adopted to implement with using strategic model and frameworks within
the entering market......................................................................................................................7
Justification of strategy.............................................................................................................10
Practical application of strategy................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality industry provides essential services such as accommodation, food, etc. for
travellers. In this regard, different reasons exists due to people move one place to another.
Hospitality is a major factor for individual, customer, businesses, etc. It helps to increase positive
results in operations and functions to gain competitive advantages. In this regard, tourism
activities also promoted that helps to attract several tourist in the country (Breakey, Robinson
and Brenner, 2014).
Present study based on Crown Plaza Hotel which is a multinational chain of full services
and exist headquarter in UK. It is catering to business travellers, meeting of business man,
conventions market. Furthermore, they are also focusing on different areas to promote their
business in systematic manner.
For gaining insight information of the present report, it covers background of
international hotel industry and tourism. Furthermore, SWOT analysis also undertaken to
conduct internal and external analysis in appropriate manner. Moreover, report contain
background of global hotel and tourism industry in developed and emerging market. At last,
strategy has been selected to develop effective functions in different areas of the world.
MAIN BODY
Background of international hotel industry and tourism
International hotel industry and tourism well established to offer accommodation across
the globe to face challenges. Managers of the business in hospitality industry trying to satisfying
guest needs, ensure that guest make repeat visit. Innovations in products and processes also
establish to gain more effective results. In the beginning, people have been providing hospitality
for weary travellers since ancestors that is inhabited the earthabout 1,00,000 to 2,00,000 years
ago. Some years down the line in the age of antiquity so that it often provided sleeping facilities
and popular attraction for those seeking rest and relaxation. In medieval times, it was mostly
cloisters and abbeys that provided travellers with accommodation. In this time, popular trade
routes were opened to provide food and lodging for travelling merchants and their horses (Jusoh,
Mardani and Sharifara, 2018).
Moreover, these were not the hotels as people know them today. Hotel chain such as the
Ritz came a hundred years later after industry operate. It was manifestation of the growing
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prosperity of developing industrial nations. The hotel industry is always strived to meet with
changing society's needs and demands. Meanwhile, is developed into highly complex branch of
the economy. Today's time, hotel industry includes all categories of establishment from
inexpensive guest houses to luxury 5 star hotels. In addition to this, within tourism development
continuously entered with demand of subjected studied. Therefore, hospitality management
shows increasing performances with academisation of hotel industry. According to Guinness
Book of Records, biggest hotel in the world with 7351 rooms is the first hotel in Pahang
Malaysia. Ritz Carlton in Hong Kong has distinction of being the highest hotel in the world (A
Brief History of the Hotel Industry, 2018). The chosen is located on the 102nd to 108th floor of
International Commerce Centre and lies of altitude of 484 meters.
Background to Hotel company
Crown Plaza Hotel is a multinational chain of full service which catering several people,
travellers to meet with conventions market. It forms part of Inter Continental Hotels Group
family of brands that operates in more than 52 nations with more than 400 hotels. Usually they
are located in city centres, resorts, etc. Originally it is branded as Holiday Inn Crown Plaza in
United States which was opened in Rockville, Maryland in 1983. In couple of years of the brand
spun off as independent chain that is owned at the time by Holiday Inn. First hotel opened in
Madeira, Portugal in 1999. The chosen hotel company provide qualitative and standard services
so that in different areas of the world they serve with prime business locations, Wi-Fi, fast and
fresh, fitness and wellness, best price guarantee, etc.
Crown Plaza Hotel is a world popular name in the hospitality sector. They have several
hotels which spread at different cities in all over the world. They serve different kinds of
products and services in several areas (Mohammed, Guillet and Law, 2015).
SWOT analysis of selected hotel company
Crown Plaza Hotel has following strength, weakness, opportunities and threats:
 Strength: Supply chain of the Crown Plaza Hotel is very effective so that they can
deliver the right products to customers on time. The chosen organisation has wide variety
of products and services which helps to get more resources to pursue in new markets and
defend themselves against rivals. High customer loyalty in Crown Plaza Hotel assists to
target new market to grow business. The organisation has ability to charge high price for
their products to place additional values in the brand (Gajjar and Okumus, 2018).
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 Weaknesses: High staff turnover in Crown Plaza Hotel is major weakness so that they
have to recruit employees again and again. Replace valuable staff is very expensive so
that it is weakness in the entity. Qualitative factor lead to increase in cost so that it
subtracts from its value (Rahimi and Gunlu, 2016). Hence, reduce this problem is very
difficult because it is not easily overcome. More investment need to be spend with a lot
time to overcome this problem. Furthermore, they used outdated technology which create
negative impact on firm in terms of reducing its operational efficiencies.
 Opportunities: Crown Plaza Hotel has opportunity to easily generate high income by
implementing innovative ideas and opinion in the new market. It assists to accomplish
desired level of results to focus and maintain creative advantages. Furthermore, it can
also develop more profits and productivity by focusing on systematic work performances
of the business. Greater innovation in the business aids to produce unique products and
services that easily meet with customer needs (Denizci Guillet and Mohammed, 2015).
Utilization of New technology in business processes can be an opportunity for the
enterprise as it helps in meeting needs of customers and satisfy them in better manner. .
Technology also builds competitive results to make long term positive impact on the
organisation.
 Threats: Mature market of the country is competitive so that it is threat to the
organisation. In addition to this, it is difficult and expensive which create long term
impact on Crown Plaza Hotel that reduce value of the company. Intense competition can
make lower profits because competitors can entice consumers with superior products.
Intense competition create long term negative impact on the organisation. Moreover,
availability of substitute products harts to increases price of the business so that
customers can easily switch to another businesses (Aragon-Correa, Martin-Tapia and de
la Torre-Ruiz, 2015).
Background to Global Hotel and Tourism industry – developed and emerging markets
Hotel and tourism depict as a vast industry that consists of wide ranged hotels and tour
companies spread across the globe. Tourism is basically referred to a phenomenon at social,
economic and cultural level involving the movement of tourists from one location to another
with an intent of experiencing an unusual surrounding for their personal or professional drives.
These are the visitors whose activities are being counted as a contribution in tourism expenditure
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to further contribute into the economic development of the entire nation. Tourism being a broad
industry has a categorization of various services that are required to be provided to the visitors.
This involves accommodation, food and beverages, recreation and entertainment, transportation
and travelling. This interrelates the hotel and tourism industry at a global level in both emerging
and developed set of market. Currently, China as a developing market has been chosen over here
for Crown Plaza Hotel in Royal Victoria Dock to expand into it. In the China, there are positive
advantages to increase global hotel and tourism industry in positive consideration. In this regard,
developed and emerging markets also successfully build to focus on creativity. Furthermore,
economic growth and political progress of the country also helps to make development process
in positive manner (Breakey, Robinson and Brenner, 2014). Therefore, the country can gain
more systematic work at workplace. On the other hand, China is not a democracy so that it is
important to Crown Plaza Hotel with innovative characteristics.
In addition to this, global economy is expected to record 3.1% growth in 2013 so that
stable performances can be successfully compare to 2012. GDP of the country from travel
industry has been considered with positive growth so that economy can be build up with further
increasing in emerging market. Long term economic potential is also remained solid so that it is
expected to drive positive performances for the global economy over 2015-2017. Global tourists
also arrivals and inbound spending that are predicted to continue over period of 2012-2017.
Therefore, it can help to boost increasing demand from emerging markets. Advanced market also
recovering after difficulties experienced when crisis with tourism flows and spending from
different nations such as Europe, Japan, etc. Online travel agencies are also important for
growing in the China market because players are gaining emerging market to develop significant
results. In developed country, there are several mobile travel booking also becoming
significantly develop their operations to reach shares of online sales in the online travel agency
and hotel categories (García-Lillo, Úbeda-García and Marco-Lajara, 2016). Along with this,
there are several new rules expanded such as recognition to reward which is preferred and
predict direct emotional appeal to feel special to drive with loyalty. Furthermore, it is important
to understand different generation needs. Key segment should be targeted with experimental life
balancing products that designed for increasing forever young people attitude.
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Background to emerging markets
Emerging market consist high growth to measure gross domestic product. Growth may be
taking place across wide variety of economic sectors which includes several services and
manufacturing exports. BRIC and MINT nations are important emerging economies in the world.
Strength of underlying economic development and prosperity China and India create effect on
increase price of travelling businesses. In US travel business market, spending grow 6.5%
annually. Middle classes in the emerging markets need to be offered competitive pricing in
hospitality organisation. In the emerging market, new middle class opens' door for business
development and it contains budget properties in virtually virgin territories (Gajjar and Okumus,
2018). In order to expand operations in emerging market, Crown Plaza Hotel select China. As a
result, they need to identify practical opportunities, consumer understanding and anticipate
challenges.
China have absolute year on year tourism growth that is equal to UK, Japan and France.
Therefore, penetration of the domestic travel market in China create long term return for
international brands. Local brands dominate in emerging areas with appropriate budget. In the
country has large risk to Crown Plaza Hotel. China country continuously grow at 7% per annum
so that half billion Chinese people have escaped poverty. Many long term challenges remain so
that there is lack of democracy and shortage of potential resources (Rahimi and Gunlu, 2016).
PEST of selected emerging market
In order to conduct PEST analysis for China, following elements included in selected
emerging market: Political factors: In China informal and formal rules exists that must be abide by the
enterprise which impact on the nation. Many people claim that political force is most
unsettled element. Government also focused on development of e-commerce. In addition
to this, legal framework for e-commerce also consider at larger stage to maintain
intellectual property rights tax, etc. There are not any regulations that can be support to
the privacy, recognition of digital signature, consumer rights and validation of electronic
contracts (Jones, Hillier and Comfort, 2016). Economic factors: China economy also experienced which impact significantly on GDP
rate. Therefore, it includes certain factors such as rate of savings, more expert business,
potential urban growth. Growth rate also impressive in the country that create impact on
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results. Furthermore, in the country economic development create major impact on SME
businesses and their actions as well. GDP rate also suggested China's to add more values
in the society. It is turn to increasing consumer purchasing power. Labour cost in the
China is extremely low so that it lead for Crown Plaza Hotel. High inflation rate and
property prices create impact on the urging banks to lend less and impose limits on home
purchase (Aragon-Correa, Martin-Tapia and de la Torre-Ruiz, 2015). Social factors: Social and cultural aspect of China play important role as demographic
constantly change. Population growth and age distribution also fluctuate. E-commerce
has changed how local consumers see shopping to avoid perceive risk. In the China
literacy rate is over 90% so that within the country education emphasizes on education
and majority of the nation are literate. In all over the country, there are 420 million
internet users so that internet access also increasing shopping of Chinese people. E-
commerce also beneficial to Crown Plaza Hotel to avoid risk that is associated within the
organisation.
 Technological factors: Technological factors are more effectively create impact on
results with development of new products that is being developed, new purchase
mechanism, new production strategy, new distribution channels such as internet, new
method of working such as mobile telecommunication etc. (Denizci Guillet and
Mohammed, 2015). In the China there is major problem regarding technology so that it
create negative impact on results and outcomes.
Analysis of SWOT and PEST
In order to consider analysis of SWOT and PEST strategy in China, following elements
can be included:
Analysis of SWOT: SWOT analysis consider increased enormously so that customers are getting
more educated and fashionable. They are more demanding towards luxuries services and
products that urge to focus on the better marketing and strategic planning. Personal and strong
relationship can be maintained by Crown Plaza Hotel to develop more significant results. In the
business, high turnover of employees impact negatively on the operations and functions so that
enterprise need to focus on solution for reducing turnover of employees. Furthermore, more
investment also required in the business to increase productivity and profitability in appropriate
manner. On the other hand, advance technology assists to develop positive results and
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performances which would be beneficial to take several advantages at workplace. It also
increases creative results in the business to produce significant results (Solnet, Kralj and Baum,
2015).
Analysis of PEST: In order to consider PEST analysis, it can be stated that China has flourishing
market with implementation of certain small changes. Companies have several benefits to
understand external macro environment in which functions can be operated in the future. Rapid
economic growth also stable with political conditions that assists to make e-commerce industry.
There are several risks such as lack of trust. Other risks also exists such as stable and secure
online payment systems. In addition to this, there is no proper legal protection so that it create
impact on the results and outcomes. Hence, it creates uncertainty and challenges within the
particular market (J. Harrington, Chathoth and Altinay, 2014).
Hotel strategy that adopted to implement with using strategic model and frameworks within the
entering market
In order to make growth of the hotel, following are different strategies has been adopted
that assists to develop more significant advantages to entering in market:
Porter Generic Strategies
Five forces of shape strategy consider significant impact on the firm's profitability in the
particular industry. Therefore, it contains following elements that create significant impact on the
results: Threat of new entrants (High): In China, there is more threat of new entrants to Crown
Plaza Hotel because it increases competition in the market. Building economies of scale
also lower and fixed cost per unit which providing new value proposition to customers. In
order to build and attain competitive advantages, it is essential to make safeguard in
competitive edge (Jusoh, Mardani and Sharifara, 2018). Bargaining power of suppliers (Moderate): There are several businesses exists that
contain their operations with multiple suppliers. Therefore, the Crown Plaza Hotel need
to maintain their relationship with suppliers so that they can easily get raw material on
time with effective consideration. In addition to this, building efficient supply chain with
multiple suppliers also tackle bargaining power to develop dedicated results in the
business.
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 Bargaining power of buyers (High): Buyers are also often a demanding so that they
want to buy best offering availability with paying minimum pricing. In order to attract
customer from new places, Crown Plaza Hotel need to focus on the increasing discount
and offers that increase ability to seek desired level of results. By building large base of
customers, production process also streamline to develop more opportunities (Yee, Pei
and Foong, 2018). New products also reduce defection of existing customers in China. Threat from substitute products (Moderate): In the China market, when Crown Plaza
Hotel expand their business, there are several other organisation also create substitute of
products so that they can beat with different enterprises easily. Hence, the chosen
business need to make themselves as service oriented instead of product oriented.
Understanding core need of the customer also increasing switching cost for the different
people in the nation (Lee, Dopson and Ko, 2017).
 Rivalry among existing players (Low): In China there are very less number of hotel
industry those deal as existing players in industry to beat with intense competition. It
drives on the down pricing and decrease overall profitability in the industry. International
hotels also competitive lodging industry. This competition not take on overall long term
profitability in the business (InterContinental Hotels Group PLC Porter Five Forces
Analysis, 2018). With the help of building sustainable differentiation, Crown Plaza Hotel
can easily compete in better aspect of the market.
Ansoff Matrix
Ansoff matrix consider clear and insight into possible growth strategies that is based on
the combination of existing and new products in different market. Within Crown Plaza Hotel,
this strategy can de divided in four different categories that are explained under here: Market penetration: In China, Crown Plaza Hotel open their new branch to target several
customers. In this way, they can easily beat with competition to develop more significant
advantages. With this consideration, it can be stated that products and services of the
business also develop in positive manner so that it would be beneficial to focus on the
ascertained market competition (Mohammed, Guillet and Law, 2015). Product development: With this regard, the chosen business need to develop their
products and services to implement new ideas, innovation, etc. In this way, they can
easily attract several numbers of customers in the business. Furthermore, Crown Plaza
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Hotel can renew their products with different range that is beneficial to develop creativity
at workplace easily. Market development: In this strategy, the chosen business need to sell their products and
services in new market. In this way, Crown Plaza Hotel present own product range in
different manner through using tools and techniques, such as internet, abroad and
franchise, etc. (Robinson, Solnet and Breakey, 2014). With respect to develop more
creativity and effectiveness, it can be stated that market development of products
successfully build with effective consideration.
 Diversification: Diversification of the business is also important consideration that assists
to expand desired level of results. In this way, Crown Plaza Hotel can also establish new
range of products and services that would be beneficial to develop more creative results
at workplace. With the help of business diversification, they can also attain competitive
advantages in the market (Breakey, Robinson and Brenner, 2014).
Nykiel's fourteen hotel strategic growth option Horizontal expansion: Crown Plaza Hotel has opportunity with expanding from line of
hospitality products and services to other. For instance, hotels into restaurants, restaurants
into resorts. Geographical expansion: Growth of the hospitality firms relatively expanded with small
radius or their origins in larger geographical areas. Product hybridization: In this regard, products can be expanding across a broad range of
services and goods that mix and match. Specialisation-specialist: With this consideration, specialisation associated with upscale
development in both pricing and services that offered with low budget conscious in
hospitality sector (Ryan, 2015). Product tiering: It also allows hospitality industry to deal with forces that are related with
population growth and greater market segmentation. Product re branding: In this way, products of hospitality company become too
proliferated in different consideration such as franchising, product relabelling,
rebranding, etc. Non franchising: When products and services wish to keep control over their products
services and brand quality ownership and management of the products are offered.
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 Brand collection: Investors-driven companies seek to take advantages of relatively low
stock so that branded operations having potential growth (Lashley, 2018). Management contrast: Firms are also specialised to manage hotels for owners with
institution as banks, insurance companies, etc. Vertical and horizontal integration: Hospitality companies also involved more than one
hospitality segment and component that create more opportunities in the company to gain
competitive results by investing in multiple elements of industry. Singleness: Development of one product and service not entering into product
segmentation. Therefore, in vertical and horizontal integration strategies increase positive
results (Gehrels, Lashley and Cavagnaro, 2017). Value related products and services: Launching of new products also assists to satisfy
specific value and trends amongst consumers. Hence, Crown Plaza Hotel need to assess
demand of products.
 Global positioning: Overseas operations also successfully develop to widely expanded
results in integration of little changes in the products and services.

Justification of strategy
With the help of, product rebranding, Crown Plaza Hotel can expand their operations and
functions in different areas of the world. In this regard, effectiveness also generated to focus on
the business development and creativity. On the basis of new product development program, it
can be stated that focus on branding clearly define what product and services can be develop in
term of quality, services, location and price. As a result, it assists to focus on the business
development in positive manner (García-Lillo, Úbeda-García and Marco-Lajara, 2016).
Practical application of strategy
With the help of competitive pricing strategy, Crown Plaza Hotel can increase their
performances in different areas of China market. In starting time, this strategy is useful to
develop more growth and performances in positive consideration. Furthermore, it is setting of
price same level as competitors so that similar products and services could be successfully
develop in positive consideration at workplace (Raj and Griffin, 2015).
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CONCLUSION
From the above report, it can be concluded that in international market hospitality
operations can be successfully develop to gain more profits and revenue. In this way, report
included SWOT and PESTLE analysis to expand Crown Plaza Hotel in emerging market China.
Therefore, different strategies has been analysed to focus on business development and gain
creativity. Furthermore, it summarised about background of global and tourism industry to
develop successful results in developed and emerging market. In this regard, effectiveness of
different areas also assess to produce positive results. At last, hotel and growth strategy also
expanded to attain more creativity in the business to ascertained more creative results. For
instance, Ansoff matrix, Porter generic strategy.
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REFERENCES
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Solnet, D., Kralj, A. and Baum, T., 2015. 360 degrees of pressure: The changing role of the HR
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Online
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InterContinental Hotels Group PLC Porter Five Forces Analysis. 2018. [Online] Available
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