International Operations Management Report: Hilton Hotels Case Study

This report provides an executive summary of international operations management, focusing on Hilton Hotels as a case study. It explores the contribution of international operations management to Hilton's overall strategy, including strategic, tactical, and operational decisions, as well as supply chain management and achieving a competitive advantage. The report then delves into two key aspects of operations management: the 4Vs of operations (volume, variety, variation, and visibility) and quality management, analyzing their contribution to Hilton's success. Finally, the report identifies and critically discusses current issues within the hospitality sector, offering insights into the challenges and opportunities faced by international hotel chains like Hilton. The report utilizes academic literature and real-world examples to support its analysis.

International Operations
Management

Executive Summery
International operation management is a concept of managing operation of business at
international business. This project include study of Hilton hotel as company is conducting their
operation in international business. Business at domestic level is different from international
level. Operation management include management of activity of organisation throughout whole
supply chain. Hilton hotels conduct their operation inhospitality industry and has their hotels and
resort in various country, so it is important for them to manage their operation effectively.

Contents
Executive Summery.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Contribution of International operation management in Organisation’s Strategy.......................1
Discussion of contribution of aspect of operation management in success of organisation.......3
Identify and discuss current issues of hospitality sector..............................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
International operation management refers to process of managing business at international
level and include conversion of different resource like labour, material and capital into finished
product and service (Ng and Sears, 2017). A well-designed operation management system assists
managers of business in improving quality of company’s offering as well as their productivity.
International operation management is directly connected with strategy of business. Structure
and management of operation function of a business venture is influence with strategy of
enterprise. This project report includes study of Hilton hotels which is an international
organisation as it conducts their operation in various countries. Hilton Hotels is established in
established in the year 1919 by Conrad Nicholson Hilton which American bases company.
Business is conducting their operation in hospitality industry and is currently having 584 hotels
and resorts in all over world. This project report includes Contribution of international operation
management in organisation strategy. It also includes study of different aspect of operation
management including 4Vs of performance and operation management along with identification
of issues occur in organisation and discussion of solutions for these problems.
MAIN BODY
Contribution of International operation management in Organisation’s Strategy
International operation management refers to management of manufacturing of product and
service to international market (Kache and Seuring, 2017). This include management of local
market for production of good and service by using capital and labour to fulfil customer
requirement in international market. It includes activities which helps organisation to convert
their raw material into product and service to serve their customer in market. It includes
functions like supply chain management, inventory management, process design, capacity
planning and scheduling of organisational activities. Management of business strategy and
process depends upon type company, government authority. Operation management plays an
important role on enterprise in organisation strategy as it assists in attaining organisational goals.
Contribution of operation management in attaining business strategy of Hilton Hotels are as
follows:
Strategic Decision: International operation management allows managers to make decisions
relate to strategic decision (Kshetri, N., 2018). These decisions are based on past experience as
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well as present position of company and helps to develop system which suitable to company
process. This will provide business with competitive advantages long term strategy decision for
an international organisation include technological change, expand market share in various
locations, merger and acquisition. Intentional operation management helps in attaining
organisational strategy through taking strategic decision which is based on past experience and
current situation of enterprise.
Provide better goods and service: In business at international level, managers are
expanding market share of their business (Kuntonbutr and Kulken, 2017). Main goals of
organisation are to provide goods and service to their customer in their full extent. Locations of
business, provide them different benefits specially if they are managing effectively. In service
industry, locations play important role in enhancing quality of their service which ensure
returning of customer to their organisations. Operation management assist managers of Hilton
Hotels to effectively manage their operation in different location and helps enterprise to provide
better service and product to their customers.
Tactical decisions: International operation management assist manager in scheduling
various activities of business along with available resources which helps them efficiently manage
employees and their performance according to legal regulation as per strategic plan of company
(Albort-Morant and Ribeiro-Soriano, 2016). Managers often plan as well as scheduling of raw
material in order to make coordination between different activities of business. Operation
management at international level provide assistance to managers of Hilton Hotels in managing
activity, planning and scheduling these activities in order to get expected result and attain
organisational policies.
Supply chain management: Supply chain management is management of chain of goods
and service, information, money in different locations of business from purchase of raw material
to saes of finished goods and services. It helps mangers in managing movement of facilities,
resources, funds, material. expertise and other resources which are important in creating
uniqueness in offering of company. Operations management provide effective control to
managers over resources in different countries which make movement of inputs and other
resources faster. International operation management helps managers of Hilton Hotels in
managing their operation in different locations as it includes management of funds, resources,
technology.
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Operational decisions: International operation management helps manager in proper
planning various activities, organisation, monitoring decisions related operation under tactical
decisions (Lee and Tang, 2018). These decisions allow managers to focus on each department as
well as branch of business. Shorts term decision include decisions related to daily operations
made by leaders of company. International operation management assist managers of Hilton
Hotels in planning and reviewing their strategic decision as it important for business as they are
conducting their business in different countries.
Competitive advantage: Organisation adopt three strategies which helps them to meet its
mission. These strategies include cost leadership, differentiation and response. Differentiation
strategy are those which helps a business to offer something unique which is not offered by any
other person in market. Cost leadership refers to those strategy which helps an enterprise to
produce their product at low cost than any other market player. Response is getting attention
from customer for offering product and service of business. All these strategy helps to get
competitive advantage in market of offering of firm. Operation management helps in all these
technology as in avoid wastage of resources in organisation and reduce cost which provide cost
leadership. Hilton hotels get competitive management by using international operation
management as it helps them in reducing cost of their operation and getting competitive
advantage.
Discussion of contribution of aspect of operation management in success of organisation
Operations management helps those firms to plan each and every aspect of business which
include capacity of planning, productivity analysis and improvement in quality assurance
(Nagendra, Narayanamurthy and Moser, 2020). It is influence to how firms can improve their
financial bottom line. Two aspects that are influenced to contribute success of the Hilton hotel
are as mentioned below:
4Vs of operations and performance objectives:
In operations various activities are included such as transforming resources and raw material
into finished or final products. There are various factors are plays important role in the operation
process that are termed as 4Ps of operations and performance. In this, four dimensions are
included like volume, variety, variation and visibility that facilitates an organisation to improves
its process as well as performances in order to achieve defined objectives effective and efficient
manner. In operational process organisation creating products and services by converting various
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input resources into valuable products through conversion process. Hilton Hotels uses these four
dimensions in its operations in order to enhance organisational performance and achieve
sustainable competitive advantages than its respective competitors. These dimensions are
discussed below:
Volume: Volume is defined as the quantity of particular or specific product that is required
to satisfy the needs and demand of customers in (De Giovanni, 2019). There are two factors denote
volume such as low volume operations and high-volume operations. Low volume operations are
tend as the process in which less repetitive functions are performed by staff members or they
focus on multitasking on the other hand in high volume operations repeatable functions are
performed by organisation through the help of various automations, it facilitates the respective
organisation to fulfil demand of large customer base. Automation in various technological
factors accelerate the production rate and volume as well. Hilton Hotels conduct research about
potential customers and that formulates effective plans and strategies of producing products and
services in order to satisfy their needs and demands.
Variety: Varity is described as the range of respective product and service that is served to
customers. Variety also termed as the diversity in organisational products and services. If an
organisation contains high variety or diversity then it enhances the flexibility in production of
products as well as services that are able to fulfil all requirement of customers. Respective
concept differentiated products and services on the bases of standardized as well as non-
standardized products. Hilton Hotels ensures that it provides variety of products as well as
services to its customers in order to retain them with organisation.
Variation: Variation is the factor that is elaborated as the changing in the demand pattern of
customers over a period of time through various external factors. Such changes in respective
demand pattern impact on organisational resources like staff, products and services. Hilton
Hotels predicts all variations effectively and organise adequate resources in order to match
demand and control cost of production. Although high variations lead the organisation towards
the low predictability and vis-a-visa. Hilton Hotel’s operational department try to understand
such variance pattern effectively that facilitates it to forecast as well as develop plans for
resources that are required for smooth functioning of operational process.
Visibility: It is the fourth dimension of operational process that is related to customer’s
ability to see as well as track their experiences with the respective organisation (Luo and Zhang,
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2016). It is most important factor that ensure the customers or end users have the visibility of
organisational overall operation process from the starting to the delivery of product and service.
Hilton Hotels make sure that it established high level visibility in its operations that provide
various information to customers and build effective relationship as well as retain them with
organisation for long period of time.
These dimensions facilitate the Hilton Hotels to keep all functions smoothly as well as
ensure the effective operation process and enhance the performance, productivity efficiently. All
factors must be carefully examined and analysed by the respective organisation and deal with
them appropriately in order to get competitive advantages and reduce operational cost. Hence,
optimality of operation process in highly depends upon these four dimensions.
Quality management in operations:
The term quality management is an act to see all activities and tasks to achieve and maintain a
desired level of quality (Vladimirovich and Viktorovna, 2016). It includes quality policy, quality
assurance, quality control and improvement in quality. It is important in operations management
because to ensures highest quality of products or services and continuous changes and
improvement in system. The procedures should be start when organisation sets quality targets
which are met to be and agreed upon the customers. It is essential for customer’s satisfaction
which leads to customer loyalty and it helps the firms to design and create a product which
customer can accomplish their desires and wants. It ensures to enhance their revenues and higher
profitability and productivity in an organization.
Quality management in hospitality industry is mainly consisting of delivering services to
meet the highest standard in owner of hotel. When customer are expecting highest quality
services and reward with loyalty and referrals they have to achieve effective quality
management. With relation to Hilton hotels, it holds a considerable share in hospitality industry
internationally. Their services have been to be developed to satisfy diverse needs of different
groups as well as customers. In order to deliver their services that Hilton hotels offer its guests,
three major operational processes that need to be performed in an efficiently manner and
managed Front Desk Operations, maintenance of room, housekeeping operations and marketing
operations. As a managerial approach, quality management are major factor in organization
success and reflected in teamwork goals and focus on customers which define to greatly increase
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their customer satisfaction. To contribute their success with context to Hilton hotels are as
described below:
Good hiring and proper training of employees: It will enhance their brand loyalty when
management and their staff to share a commitment for special customer service (O’Neill, Sohal
and Teng, 2016). To achieve a customer satisfaction in hospitality industry this requires a
willingness of employees. New managers should have a understanding of job which includes
long hours, on call duties and personal issues. If there is effective quality management with
hiring and training procedures which should be include policies that are required for hiring
managers.
Shows up in all profits: Customer satisfactions are moving towards in profitability in
hospitality industry and rates are most important factor that contributes to success for an
organisation. Profits in hotel industry are directly related to number of rooms that are to be filled
each and every day. Less expensive hotels result that they are to be maintained a constant level
of quality which is more profitable on whole than a higher priced with full of amenities and less
dependable in delivery process. If customer expectations are fully understandable by hotel then
they have feedback about this hotel this will impact they have to increase their brand value also
increase their profits because more and more customer are attract in this Hilton hotel.
Identify and discuss current issues of hospitality sector
The current issues that are faced by hospitality sector because of Covid-19. During this pandemic
situation, the economy will go down almost shut down (Ketokivi and McIntosh, 2017). It will also
be impacted in hospitality industry many of hotels and restaurants are significantly decreased
their businesses. There are restrictions for travelling, stay at home orders and many more issued
by authorities that have led to sharp reduced income and hotel occupancies. Within hospitality
industry that would be slowly recovery because of covid 19 and many of hotels are expected to
change to their operations in pandemic situation that business environment in state to employees,
customers health and safety are increase to their willingness to support their organisations. Major
issues are facing by hospitality industry with context to Hilton hotels are as follows:
Implementation of technology: These types of issues changes in hospitality industry are
self check-ins, contactless services, online payment and payment through apps. It is challenge for
this industry that provide a better customer experience with tech enabled interactions. Many
hotels are finding various technologies in this pandemic situation that will be easy for customers.
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In case of Hilton hotel, they are provide innovative technologies that will be beneficial for
customers not just hotel operations it helps that hotel are stand out from competition and attract
more new customers. Investment in new technology is very critical to long term success in an
organisation but most common thing is it must come with cost of personal service.
Goodwill for management: It is very important for hotels to manage their reputation and
providing benefits for customer with new technologies (Terminanto and Hidayanto, 2018). In case
of Hilton hotels, various online platforms for customers that they are provided and they are
become increasingly their popularity. Through this, customers are giving online reviews for
firms, giving feedback, comments, ratings and posting photos in their websites this has impact to
increase their reputation. The hospitality industry has been battling to generate their strong
relationships with their clients to enhance their goodwill.
Hiring and retaining their staff: The major issues in this hospitality industry are to
manage their hiring new and attracting employees after this pandemic situation. Each and every
hotels requires quality staffs to all fronts; their maintenance, administration, kitchen and
housekeeping. Lack of educated skill in youths is also proving major issue and challenges in
hotel industry. To solution this, to training employees on regular basis is only solution are
available and retain a qualified staff are requires to employ a few strategy.
Operational issues: There are many operational challenges in this industry and ranging
from reservations, attending guests, cleanliness in hotel rooms and many more. With relation to
Hilton hotels, their department are failing to perform all these tasks which lead to dissatisfaction
of customers. To solve the problem is front office problems are connected to integrated hotel
PMS system. Their operation management are automated and integrated of all functions with
PMS.
Rising cost of daily consumables: prices are increase of daily used products and other
supplies have also rising (Thomas, Deblecker and Ioakimidis, 2018). It is affected of all industries
because it takes a huge portion of issues and challenges that are face in hospitality industry. To
solve this problem, Hilton hotels are provide a observable solution that would to keep a fixed
check on inventory, control of stock and reduced wastage as much as possible. It is useful only
when they save their costs at property which would help to manage their enhanced costs.
Sustainability: Smart hotels understand that corporate responsibilities are help to win
their customers trust, benefit employee, their environment and incomes. There are many
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opportunities to increase their brand value in terms of environmental impact by focus on
decrease in food waste, water consumption, energy consumption and many ways to implement
their financial savings and formed new strategies. With context to Hilton hotels, they are already
understanding that what the importance of corporate responsibility was and reduced energy use
by 30%. They announced their partnerships with world wildlife fund and launch new water
stewardship to tackle their water usage. In this sustainability if hotels can meet those challenges
an expectation of customers they can ensure that they can success their long term growth in a
proper way and increase their customer satisfactions.
Changes in guest expectations: It is one of the biggest problems in this pandemic
situation that guest expectations are (Prajogo, Oke and Olhager, 2016). There are lot of demand in
this hotel like free WiFi, various discounts should be provided, entertainment system and unique
experience of customers to stay in this hotel. During this pandemic situation, they also were
expecting these contactless services in hotel to ensure a safe stay. The solution of this problem is
these type of services are provided with right technology and consider that self service portal are
started that will be easy for customers and facilitate quick check in and checkout services, pick
up and drop off services. It will be beneficial for both customers and hotels in a better and
efficient way.
CONCLUSION
As per above information, it has been understood that operations management are practices
of creating a highest level of efficiency in an organisation and converting materials labour into
goods as much as possible. It is concerned with controlling and planning of production
procedures in business operations. In this report, various topics are covered which are named as
identify how operations management contributes to organisations strategy, how 4Vs of
operations and quality management in operation contribute to success of the organisation and
discuss current issues in hospitality sector. It has to be recommending that hotel improves their
services like treat their customers like VIP, proper training of employees so that they will
increase their profits and update their technology during this pandemic situation.
RECOMMENDATIONS
From above mentioned project report it has been recommended that hotel improves their services
to customers like they treat their customers like VIP, proper training of employees so that they
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will increase their customer satisfaction and also increase their profits in an organisation. The
should update their technology during pandemic situation like new innovations, new thoughts
and ideas are to be developed. They can offer complementary services to customers this will
impact more and more customers are attract and their goodwill are increased. The can provide
incentives for new employees that they will hire and retain because if they do that it will be
beneficial for both customers and hotels.
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