Operations Strategy assignment : Baglioni Hotel

MBA OPERATION STRATEGY
AND INDUSTRY 4.0

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Key forces of digital change which are impacting demographics of Baglioni Hotel................1
Current resources, capabilities competencies which are evolving in business environment......3
Three level strategy and changes in supply chain, infrastructure and services of Baglioni
Hotel............................................................................................................................................6
Content strategy for digital format in order to become part of value adding ecosysten.............8
Implementation of learning culture and continuous operational improvement in order to attain
agility in transformed business....................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Operational strategy and industry plays an important role as both the terms are
interrelated to each other. It is important to derive the best strategic tools to manage changes in
company in accordance with changing business dynamics. The report will be focused on
evaluating demographics of service organisation of UK which is Baglioni Hotel. The services of
Baglioni hotel are renowned as per experience and customer reviews (Lu and et.al., 2016).
Industry 4.0 is the term which comprises of digital advancement that is related to internet of
things, cloud computing, cyber physical systems, cognitive computing, etc. The focus of study is
to evaluate key forces of change which are influencing demographics of hospitality services of
organisation. Further, the focus of research is to outline resources, capabilities and core
competencies which are developing in business environment of Baglioni Hotel. The research
over these factors will help in formulating effective implementation strategy which can occur in
supply chain, hospitality services and in infrastructure of hotels with digitalisation. Thus, the
report will identify operational improvement for managing agility in business.
MAIN BODY
Key forces of digital change which are impacting demographics of Baglioni Hotel
Industry 4.0 is the fourth revolution of digital technology which has created boom in
service industry. It has established easy and approachable ways of reaching customers and
enhancing own services. The aim of advancement is to reduce workload and to manage
successful business operation (Schoffstall and Arendt, 2016). In accordance to digitalisation of
hospitality services it can be argued that the change management is process of huge capital
investment but on the other hand assist in managing systematic and smooth flow of business
information. Further, it can be said that it is related to smart hospitality functions which needs to
be managed in order to cope up with dynamic hospitality trends. The key forces of digital change
which are impacting demographics of Baglioni Hotels are as follows:
Internet of things: It is the most approachable advancement which has boomed the
innovation for hospitality services. With the help of this technique, consumers and hoteliers can
directly connect and communicated at mutual platform. Further, it is the platform which has
increased awareness among customers and it enables opportunity to people to access information
and make comparison according to own interest. However, the internet is the offers the search
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engine where the travellers have right to search for every bit of detail about the companies and
services. However, in accordance to this force of digital change, it is becoming important for the
hotel to enhance its website and to set competitive strategy in order to gain attention of guest
who are travelling to London. However, it is the platform which shares drawback and benefits of
advancement for hospitality services of an organisation (Cheng and et.al., 2017).
Digitalisation of rooms: It is the major concern of Baglioni hotels in accordance to
demographic factors because it increases the risk of consumer preferences. Digitalisation of
room is based on advanced Wifi connection, Availability of digital devices such as laptops, smart
watched, digital locks and wireless connection television music system. With this change in
hospitality services it becomes important for the hotelier to increase prices accordingly in order
to manage investment and profits. However, there are numerous customers are accepts these
changes but on the other hand there are some guests according to whom these facilities are waste
of expense. Thus, this difference between demographic differences impact the digital change
management of services in hospitality firm.
In accordance to above illustration, it has been clearly identified that Wi-Fi is the key
concern for travellers as it is the only source which helps the individual in connecting to different
sources such as maps, location, hotels and its services. Further, from the comparison it is clear
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that Internet is must for travellers but no individual is ready to pay for it. Thus, in accordance to
analysis it can be clearly denoted that it is important for the Baglioni Hotel to implement the use
of internet in hotel and that too for free, which can be a costly for firm.
Customer expectation: It is important for Baglioni Hotel to match up the expectation of
hospitality services according to demographic guests. Experience of different guest with hotels
pays an important role in influencing consumer preferences over services. As per expectation it
is important for the hospitality firm to improvise services but according to feedback and by
segmenting guest (Nardon and et.al., 2018). The segmentation of travellers needs and wants for
hospitality facilities is cost effective process but as per this change the hotelier need to
implement overall changes which can be expensive and risky.
Data Explosion: In accordance to trends of Industry 4.0, cloud computing is and
advancement which helps the organisation in systematic recording and storing of consumer data.
Apparently, internet of things is the concept which increased the risk of leading and cyber-
crimes. It is the source by which hackers can access company’s confidential information.
Nevertheless, maintaining digital record helps in easily approach travellers at the time of
schemes and future changes (Roblek and et.al., 2016). Moreover, it establishes the easiest mode
of check in and check out functions in hotels. Apart from this, implementing this changes of
digitalisation is essential for Baglioni Hotel because it will assist the management in developing
targeted pricing or custom loyalty programs.
Current resources, capabilities competencies which are evolving in business environment
Changes in resources, capabilities and core competencies are major driver of change
which occurs in business environment. It is important for the hotel services to be according to
competitive work in order to maintain stability and successful management of operations. As per
trends of industry 4.0 it has been analysed that it is important for the hotels to ensure safe and
effective implementation of advanced tools. The technological advancement in hospitality
environment is the source which is assisting the industry in making optimum utilisation of
resources with the motive of establishing sustainability in organisational functions. As per
analysis of operational strategy and industry 4.0 resources, need of resources in hospitality
services are increasing which comprise follow:
Use of new technology: Developing understanding over technological tools and
implementing is the basic evolving needs of hospitality environment for Baglioni Hotel. Online
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advertisement internet access to rooms, digital locking and check in check out is the developing
needs of resources in hotel services (Trappey and et.al., 2017). These are the basic facilities
which needs to be considered in order to attain advantage and manage successful business
operations. Apart from this, use of social media advertising is the common functions which has
increased the level competition because the hoteliers are promoting dis the innovation in their
services and discounts to attract guest due to which the need of implementing technology has
increased for Baglioni Hotel.
Collection of data to improvise guest experience: It is another increasing needs to
industry because with digital advancement, the needs of travellers has also changed like these
days intent access, digital locks and online booking are the common practices of hospitality
environment. However, to increase guest loyalty and revenue management system, it is
necessary for hoteliers to segment travellers according other preferences and demands.
Apparently, as per global hospitality insights, it has been identified that the hotels in service
industry who focuses on collecting data from review consumer feedback and survey are the ones
who deal with successful management of changing business environment (Agarwal and Brem,
2015). Check over traveller’s preferences is the only operational strategy which can assist
Baglioni Hotel in attaining agility in business.
Taking sustainability into consideration: Maintaining sustainability of business
operations is the key criteria which helps the hoteliers in matching up to the expectation and
evolving needs of hospitality environment. However, with advancement in technology the
governmental regulations have also changed in order to protect interest of organisation and
travellers. Thus, as per this it is important for then organisation to comply with regulations in
order to maintain stability of operations.
Nevertheless, with increasing advancement and use of technological tools, the
capabilities of industry has also been increased. Like the hoteliers have started implementing use
of online booking system which has increased their sales because in this system the travellers
have access and right to compare prices of different hotels (Dalmarco and Barros, 2018). Online
booking system has increased the business of hoteliers because in this the travellers are able to
access all the necessary details which are required as per their expectation. In addition, the
booking is the easiest approach and reduced the risks of travelling to another country. Apart from
this social media advertising has become advantage for the industry as it enabled easy mode of
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targeting and segments travellers. Online marketing has revolutionised hospitality environment
as it enabled power to all types of hotels that is small, medium and large. Further, it made
marketing easier and reduced the need of promotional event and public relations.
Moreover, with the changing trends of hotels industry it has been analysed that the
management of hotels are able to gain practical experience over their services and consumer
response towards their hospitality services (Márquez and et.al., 2017). Industry 4.0 is accepted
by service industry because it established easy mode of communication between hotel and
consumer with the help of which the individuals are able to interact directly on services and
satisfaction.
Further, phone-as-key-cards, mobile self-check-in, mobile booking, self-service check-in
kiosks, lobby media panels, electronic luggage tags, are the another capabilities of business
environment which has increased the need of development in hotel services in order to serve
travellers satisfaction and establishing innovation in services. In addition, hotel services are
attaining next level of advancement with digitalisation by voicing over internet protocol phones
which are connected to eco system of hotels. In addition, the ordering system and touch screen
housekeeping services is assisting guest in managing. In the hotel industry many procedure are
help to increase the popularity of business like may advance technology occurred in any case for
marketing of hotel service (Ustundag and Cevikcan, 2017). Make promotions the internet helps
to make promotion in organizations like its help to manage all working of marketing for
promotion service of hotel like well staffing, customer’s satisfaction, proper food facility etc.
Apart from that when the technology are increased the various pressure are occurred in
hotel service like they have to used advance technologies' procedure in their hotel for example
automatic system, camera are set in main door which is help to identify the information people
are come in or exit from the door. In hospitality industry many companies has to use latest
technologies' procedure which help improve their functionality of hotel. For the improvement for
hotel service the managers are used the latest technique which is used many five stars hotel they
change their serving style for food to add more decoration to serve food and used fresh food
from that customers visit again to hotel and used benefits of hotel service. Further, the changing
trend in business manager are able to handle all experience of service which is given to the staff
members like they are able to understand to what are the customers’ needs and their demand s
for the hotel staff and what kind of services hotel industry used for customers. The main facts is
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for the pressure for the latest technology to hospitality industry used many ideas for serve the
service to the customers like they handle each and every task of hotel industry. In addition, the
hospitality indirectly increased very fast because the technology are increased fast many
challenges are occurred when the organization used latest technologies products like they used
many kinds of strategic decision in organizations which help to make strategic decision for the
organizations.
Three level strategy and changes in supply chain, infrastructure and services of Baglioni Hotel.
In accordance to carnages in hospitality services of Baglioni Hotel, as per industry 4.0,
the firm will focus on implementing use of three level strategy. The strategic implementation of
hospitality organisation will be focused value orientation, business functioning, conceptual
framework. However, the focus of company is on implementing technological advanced tools
where the management will be aiming at implementing use of Porter's Generic Strategies model.
This strategic model will help the business in attaining competitive advantage by focusing on key
elements of strategic implementation that is cost leadership, differentiation and focus.
Apparently, implementation of digital advancement with the help of this model will assist
the hospitality organisation in service advanced and moreover it will help in managing cost
effectiveness of digital implementation plan as per business case analysis. In addition, as per
analysis it has been determined that Baglioni hotels is focusing on improvising its services but
still lacks services as per competitor due to industry 4.0 where it is important for the firm to
focus on digitalisation concept such as internet of things, online booking system, digitalisation of
room services and data explosion (Wertz, 2018). These are key elements of technological
advancement which needs to be implemented for managing successful growth and attaining
competitive advantage. Thus, in accordance to strategic model the focus of firm will be on
enhancing its supply chain, hospitality services and infrastructure in accordance to industry
rivalry. The implementation of porter generic strategies in Baglioni Hotel is as follows:
Cost focus and leadership: Attaining leadership in cost function is a prior concern when
the changes are related to industry 4.0 because, it is related to advancement where the focus of
hotels is to make business functions and services digitalised. In accordance to cost leadership,
the hotelier will be focused on increasing productivity and optimum utilisation of resources.
Further, this step of change will be based on making differentiation in services which will related
to digitalisation (Schumacher, Erol and Sihn, 2016). Thus, it can be said that when the
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management will implement online booking system and will make digitalised services. It will aid
in increasing booking because it will be related to brand visibility which will promote existence
of hotels among travellers. Further, the implementation of technological tools such as cloud
computing Wi-Fi and digital locking in room system will help the hotelier in improvising
services which is directly related to improved infrastructure and effective supply chain
management. Thus, it can be said that this strategic level of model will help the hotelier in lean
management which will reduce waste activities and system which leads to increasing cost
function.
To attain cost focus the firm will aim at establishing strategic management function by
developing lower-cost advantage in limited market area. This will assist in targeting specific
traveller's ad attaining advantage over cost function. Further, in this the focus of enterprise will
on hiking rise of similar products in industry in order to enhance quality and value of products.
This strategy of hiking cost of services as per advancement will help in managing successful
implementation of trends of industry 4.0.
Differentiation focus and leadership: The focus of hotel will be on targeting travellers
in order to attract travellers towards improvised services. The focus of differentiation will be
based on segmentation of customers where the firm will target tourist according to their
requirements. The infrastructure will be formulated and digitalised as per specific requirements
of people. For instance, there will be 6 or 7 rooms which will be offered at economic price and
will be normal accommodation with digital tolls whereas there will be premium quality and
deluxe room which will be digitalised as per trends of Industry 4.0. (Zhou, Liu and Zhou, 2015).
However, the focused differentiation will help in lean management which will assist hotelier in
promoting effectiveness in supply chain management. Apart from this, for attaining leadership
and attaining cost effectiveness Baglioni Hotel will charge premium price for tits services which
will helps in managing higher production costs and extra value-added features provided to guest.
Thus, in this the focus of firm will be on superior product quality, developing brand visibility and
promoting changes via marketing and advertising.
Thus, as per the analysis of strategic implementation, it has been analysed that it is
important for the hotel to implement the use strategic model in order to manage successful
implementation of changes as per trends of industry 4.0. Hence, these changes will help in
managing supply chain function, enhancement of services and infrastructure of Baglioni Hotel.
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Content strategy for digital format in order to become part of value adding ecosystem
Content strategy is related to change management in business functions with regard to
business functions and management. As per the case analyses and structural plan it has been
analysed that the focus of hotel is on making business functions digitalised for which the
hoteliers will focus on adding value to its current services. However, eco system functioning is
the critical and essential part of business process which needs to be attained tin order to manage
successful change in services, supply chain, lean management and infrastructure.
Apparently, changing business functions are directly concerned to environmental impact
of services. Therefore, with regard to digitalisation of services the focus of hotelier will on
implementing environmental friendly practices in order to attain advantage over corporate
governance. Further, this will help in adding values to its customer services. Like the media
content of hotel for promotion will be modified as per changes of practices and services
(Rüßmann, Lorenz and Harnisch, 2015). The modification in content at the time of marketing
and promotion the firm will be able to gain attention of travellers. Promoting content with regard
to services on official website and in promotional plans is the best idea which helps in gaining
attention of worldwide tourist.
Digital transformation of Baglioni Hotel will help in adding value to ecosystem because,
the Go digital concept is based on transforming customer exercise in another country where
hotelier digital services will be aiming at promoting content with the motive of commercialising
websites. Further, it is done with the aim of developing digital channels and social networks in
order to increase traveller’s network. Online rating of digital services and billing as per hourly
consumption will help the firm in making optimum utilisation of innovation with the help of
systematic procedures. Thus, in accordance to Go Digital concept it can be said that the strategy
will help in adding value to eco system because the content and services in this plan are customer
centric.
Being digital is the field of development which will help Baglioni Hotel In attaining
digitalisation objectives that is to enhance internal hospitality services. This is with the motive of
promoting digital culture (Khan and Turowski, 2016). This change in hotel will be related to e
talent training, open power space, and sales acceleration project. In accordance to these
innovations, transformation and practices the firm will be able to digital travellers, contracts,
partnership, management via digital channels and digital sales. Improvement in these factors will
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ultimately help in increasing return for hotelier which reflect value addition in eco system.
However, as per this change in management functions of hospitality services it can be said that
the system has reduced the need of excessive manual work, resources and waste. However,
management of these elements denotes that digital transformation is an effective technique which
will assist in the enterprise in managing environmental friendly practices.
Nevertheless, in accordance to transformation, it can be said that commercial partnership
with rivalry hotels can assist the firm in setting another level of improvement and advancement
in services. The partnership functions with regard to industry 4.0 will reduce the cost of
investment in digital tool. Moreover, it will assist in gaining advantage over expertise and
training requirement (Kagermann, 2015). Further, it is and effective and a beneficial plan
because it will help in gaining travellers by merging business functions.
Hence, in accordance to overall discussion over content strategy, commercial partnership,
adding value to Eco system in relation to digital transformation, there are various business
opportunities which can be outlined for Baglioni hotel which are as follows:
 Improvised management which will reduce wastage, activities, time and resources.
 Increasing sales and advanced booking management procedure.
 Digital products and track on consumer response to hotel services
 Regular innovation and easy service management.
Implementation of learning culture and continuous operational improvement in order to attain
agility in transformed business.
Maintaining grace in transformed business operations is the most critical part for an
enterprise. In accordance to agility, it is essential for an enterprise to managing learning culture
and continuous improvement in business process. This is the strategy which help the firm
analysing shortcomings and loopholes at initial level which can be easily managed (Erol,
Schumacher and Sihn, 2016). Similarly, to attain agility in hotels transformation the enterprise
will aim at setting objectives which will be based on increased digital consumer base, digital
sales, innovation and increasing contract via e voicing.
However, digital transformation is actually a strategic challenge for Baglioni hotel
comprise risk of acceptance, adequacy, commitment and success. Further, to attain agility over
transformation function, it is important for a business to implement proper learning culture for
which the organisation will design training plan which will helps in managing fundamental
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pillars of digitalisation in hotel business. The training plan will include regular training in order
to maintain consistency and will help in improving performance of employees (Knight, 2010).
However, to improve performance and learning over digital functions the focus of management
will be on providing practical training to workers which will assist in boosting knowledge of
staff members over digital functioning and systems in hotels.
In contrast, hotel will implement the use of maturity model to analyse effectiveness of
digital transformation in hospitality services. In this model the firm will go step wise wherein
initial step the management will aim at determining needs and areas of improvement which
requires training. Second step is based on management where the firm will characterize different
needs of training which needs to be conducted. In third step which is defining the hotel will be
focused on processing training and learning requirements as per organisational guidelines. In
fourth step, the transformation and training will session will be controlled and monitored on the
basis of performance. Lastly, in fifth step, optimizing where learning and training session will be
processed by considering all the aspect of digital changes.
Apart from this, training to employee plays an important role because hospitality services
are directly concerned to guest. Therefore, it is important for the staff to have adequate
knowledge over change in order to assist customers. However, to promote learning culture the
training plan of Baglioni hotel will be implneting use of communication approaches and
differecitaed way of working (Anderl, 2014). Further the mangment will aim at setting systemic
step wise functioning of people acocding to their job function. In addition, the ultimate role
decider and planner will be mnagaer who will be respobile of etermining needs of imporvment in
orderganistional and empoyees performance. Similarly, to gain aglitility in business functiosn the
focs of enteroise will be on beliving in achieving determied goals of improvement.
Hnece, in accordace to learning it can be outlined taht for managing digitalistaion, it is
importnt for the hotel manaegnt staff to ensure safe and secur practuces in order to effectively
managige and coordinate with changes and tehnological advacement. As per teh anaysis and
discusison, it can be siad that continouslearing is benifcial for operationla impovement and will
asist teh managment in seeting different ways to impove functioning in order to attain
competitive advantage and manage sucessfull business operations.
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CONCLUSION
The report summarized about operational strategy and industry which plays an important
role in deriving changes in accordance to competitors. It discussed about need of managing
changes in hotel services of Baglioni Hotels as per Industry 4.0. From the study, it has been
determined that industry 4.0 is related to digital advancement in internet sources, data explosion,
etc. which is beneficial for improving business function as per emerging advancement. Further, it
outlined about business case of hotels with the helps of its resources, capabilities and core
competencies from where it has been analysed that it is important for an organisation to
implement changes as per technological advancement in order to match up expectation of
traveller. Besides, it outlined about Porter's Generic Strategies model which will helps the
enterprise in attaining cost leadership, differentiation and focus. With implementation of change
as per Industry 4.0.Thus, it concluded by analysing important of implementing learning culture
to promote continuous operational improvements.
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