Improving Service Quality: EFQM Model in Squire Hotel - MKT 3125

This report analyzes service quality management at Squire Hotel using the EFQM (European Foundation for Quality Management) model. It discusses the significance of service quality in the hotel industry, introduces the EFQM model, and examines companies that have successfully implemented it. The report details the nine criteria of the EFQM model and explores challenges in its implementation. It evaluates Squire Hotel's service strategy, identifies causes for problems, and assesses outcomes. The analysis includes recommendations for improving service quality through effective application of the EFQM model, emphasizing continuous improvement and customer satisfaction. The report also references case studies of other companies that have benefited from the EFQM model, such as Volkswagen and BMW.

Running head: SERVICE MANAGEMENT MARKETING
Service Management Marketing

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Table of Contents
Introduction.................................................................................................................................................3
Significance of Service Quality Management in Hotel................................................................................4
About EFQM...............................................................................................................................................5
Companies Using the EFQM Model............................................................................................................6
9 Criteria......................................................................................................................................................7
Challenges in implementation of EFQM.....................................................................................................8
Evaluation of Service Strategy inSquire Hotel............................................................................................9
Causes for Problems..................................................................................................................................10
Assessment of outcomes............................................................................................................................12
Conclusions...............................................................................................................................................13
Recommendations.....................................................................................................................................13
References.................................................................................................................................................15

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Introduction
The business scenraio related to hospitality industry has dealt with wide range of transformation
in its existing situation. Hospitality could be essential for global tourism sector due to improving
its conditions but,a hotelshould offer better service quality as per the international standard. The
customer of hotel ishighly tourists and it could beboth foreign and local sectors. The demand
associated with hotel service ishigh due to transforming needs of hotel. Along with this,
observation of future scenario also supports hotel for offering new types of services such as
location availability on digital maps and Wi-Fi connectivity. In addition, tourists will have to
need a menu, list of services and prices that could be available online for organizing their travels
(Quintana-García, Marchante-Lara, and Benavides-Chicón, 2018).
The hospitality sectorfaces critical changebecause it is not being competent for maintaining the
high standard hence it may face shutdown because of the high availability of substitute for
customers and tough competition. Along with this, the loyal customers of hotels focus on new
services offered through hotel because of online marketing. This kind of marketing enables the
customers for arriving at a larger option (Liu, and Ko, 2018). These elements are essentialto
reason regarding why a hotel should upgrade their standards. Service quality management is
fundamental practices in the service structure as well as quality management of the hotel. In
addition, service quality management could be performed in medium as well as high extent of
hotels via implementation of self-assessment technique and total quality management. It may
assure that the quality of the hotel is high as well as assure that the hotel considers a high degree
of global standards (Jusoh, et. al., 2018).
The EFQM model (European foundation for quality management) is implemented by larger
corporations in order to sustain the valueas well as self-improvement.It

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alsoassessescasesassociated with service quality issues of Squire Hotel group. It also defines the
requirement for EFQM model as well as its application. It would be beneficial for Squire Hotel
as it aids in application ofEFQM model and maintaining service quality. It wouldfocus on
importance of quality management and aspect of EFQM model as well as its relevance and
significance (Sánchez-Ollero, García-Pozo, and Marchante-Lara, 2015).
This report will primarily focus on significance associated with quality management with its
implications regarding application of EFQM as well as challenges in the use of EFQM. It can
follow an analytical opinion regarding the case of Squire Hotel group for determining the cause
that may create the issues in its performance with management (Manning, 2018). In addition, it
discusses the EFQM model in the case of Squire Hotel Group condition for resolving the issues.
It may lead to evaluation of outcomes by using different criteria. The benefit of implementing
this model in this scenario will be discussed in this research. In the last, this report recommends
the strategy for the application of the EFQM model (Houshi, and Taleghani, 2016).
Significance of Service Quality Management in Hotel
Service quality is a concept that involves the management for the business procedure in terms of
offering a higher extent of gratification to customer of the hotel. This perspective is essential for
a leader in terms of gaining the competitive advantages in market. There is a strong association
amid the extent of quality in profitability and products or services. The significance of service
quality structure could be developed by assessing and addressing the demand of customers.
Furthermore, the hotel can formulate the procedure as per the viewpoint ofservice quality
management (Farrington, Antony, and O’Gorman, 2018).
In addition, service quality management is defined as the evaluation of global by consumers who
want overall superiority in services. Products should contain the parameter of quality,however,

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determining service quality has requirement of monitoring the factors such as communication,
customer engagement, the obedience of safety standard, availability, proficient in offering
services and other intangible elements. All these components are used for assessing the service
quality. It could be either impossible, or heterogeneous for containing and passing the service
quality (Sadeh, and Garkaz, 2019).
Along with this, the effectiveness related to service quality management can focus on customers
as well as perpetual enhancement in quality ofservice delivery together with modernization in the
aspect of services. Along with this, conventional service quality management prototype
containsdifferent approaches for addressing the better quality. The primary approach is
associated with a technical aspect that is more applicable regarding the production-oriented
condition whereas another approach is associated with customer oriented and it is more
applicable in the case of hotel management scenario (Martínez-Martínez, Cegarra-Navarro, and
García-Pérez, 2018).
Service quality contain different dimension such as staff, physical facility and materials. It also
categorized into different aspects such as technical and functional quality. A similar strategy is
used in Squire Hotel group where service quality involves different dimensions such as
functional quality, technical quality and environment. Another strategy is also considered in
Squire Hotel group to keep service quality such as tangibility, responsiveness as well as empathy
(Calvo-Mora, Domínguez-CC, and Criado, 2018).
One of key strategy is practiced by hotel to improve the customer satisfaction is benchmarking.
Benchmarking makes competent to hotel for learning from other competitors in this industry and
learns what makes their key market player competitive. In some circumstance, hotels cannot
reveal their secrets to their key market participants. But, Squire Hotel group does not involve

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sensitive data. Due to this, Squire Hotel group is keen to share their confidentiality of their
success. Along with this, hotel innovation makes competent to Squire Hotel group to develop
new strategy that improves the competitive benefits over their competitors (Psomas and Jaca,
2016).
Total quality management is an effective aspect as well as strategies in the business condition. It
is also illustrated that total quality management is an operational approach that is committed to
continuous enhancement as well as customer satisfaction. This approach is widely practiced
model at the international scale by the hotels. It is assessed that EQFM model only emphasizes
on depth approach associated with results, processes along with, technique of company that
creates upgraded aspect in the context of TQM model (Bouranta, Psomas, and Pantouvakis,
2017).
About EFQM
EQFM is defined as the European foundation of quality managementthat could be used to
improve the operation of the business in all sectors. This foundation was developed in the year
1989 by the president as well as CEO of 67 corporations from Europe came together. The
company can declare the commitment regarding the model (Thite, 2019).
This model is generally self-assessment structure for the corporation by which corporations can
assess their strength as well as constantly addresses areas for enhancement. The term distinction
is highly related to the concept of quality in the context of both product as well as services. By
enhancement of quality in products with services, corporation can gain its economic position.
The EFQM modelcould be applied in the company of different sector such as government,
private and industry with differentsize (Psomas and Jaca, 2016).
Companies Using the EFQM Model

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There are several companies in different sectors that may applyEFQM model in management
procedure for improving quality related to products and services. This structure could be
practiced throughnumber of companies across Europe. There is a different corporation that uses
EFQM such asVolkswagen, Fiat motors, BMW,Nestle,Bosch,Water Authority (DEWA),Etisalat,
Emirates Nuclear Energy Corporation,Grundfos and Electrolux. Under hospitality sector, there
are several corporations that use EFQM model is Failtre Ireland, Casino services, Swissotel
management and Pirktl holiday as this model is supportive for attaining the better quality (Calvo-
Mora, Domínguez-CC, and Criado, 2018).
There is an electronic company named Bosch also implemented to EFQM model in order to
improve the strategy as well as altering the operation and implementing the radar logic. This may
lead for gaining the productivity by 32%, gain in customer satisfaction by 10% such as from 80
to 90% as well as increases in efficiency of the machine by 30% (Pereira-Moliner, et. al., 2016).
Another example is of Ricoh i.e. an international IT and printing Services Company and it
focused on adding value by EFQM model and attained success over rivalry as well as
emphasizes on accountabilities to conserve the atmosphere. Another illustration is of BMW as
this company is competent for attaining high amount of production levels without declining the
expenses. It may provide higher level of workforce satisfaction and declined level of carbon
emission by using the EFQM model in its Regensburg Plant in Germany (Para-González,
Jiménez-Jiménez, and Martínez-Lorente, 2018).
9 Criteria
EFQM model can be used by managers for addressing the cause and effect association amongst
efforts and outcomes of the company. There are different criteria in this model and it is pillars for
this model. There are 5 out of 9 criteria related to the action of the company whereas 4 of them

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are related to organizational outcomes. The criteria are related to action are identified as the
enablers in the procedure whereas the others are outcomes (Ezzabadi, Saryazdi, and
Mostafaeipour, 2015).
Figure 1 – 9 Criteria Model
(Sources:Metaxas and Koulouriotis, 2017).
The 9 criteria model facilitates a holistic structure that methodologically identifies several
organizational quality concerns and also provides attention to effect through result criteria. It
facilitates a clear analysis of organizational activities and it is effective to make plan as it makes
relation between what Squire Hotel Group does and the results it attains, focusing how they are
accomplished. It is also looking for inspiring the culture of continues enhancement. It is flexible
to be practiced in bite-sized chucks for particular concerns (Amin, et. al., 2017). For example, an
assessment of environment policy of company in less than a single day and offering the structure
for comprehensive review of all the activities of Squire Hotel Group over several months. There
is no need for external validation together with, 9 criteria model could be used as an internally
driven self-assessment technique permits the company to be as sincere and as open as possible in
measuring its performance. Along with this, scoring can offer the Squire Hotel Group with

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internal benchmark for its upcoming self-assessment in order to obtain the trends. It can also be
practiced between organization for some external comparison and benchmarking. This model
identified the significance of consensus in evaluating the strengths and areas of Squire Hotel
Group to enhance (Aquilani, et. al., 2017).
Challenges in implementation of EFQM
EQFM model can be developed effectively to assess the fields of improvement within an
organization. The EFQM model can be updated regularly because quick transformation occurs in
the implementation of corporations. Furthermore, there is an advent of new technologies as well
as shifting the customer demand. With the perspective of management control, the EFQM model
considers different fundamental aspect in order to attain the excellence (Bandyopadhyay, and
Leonard, 2019). There is a needfor furtherdealings that an organization should have in mind.
Model could bedeveloped essentially to assess the areas for enhancement within business.
EFQM model should be updated frequently because prompt alteration may exist in the
operational of corporations because of creating new technologies as well as transforming the
demand of consumers (Suárez, et. al., 2017).
Through management control viewpoint, the EFQM model discusses different fundamental
aspects to attain the excellence. There is no need regarding additional procedures that company
should focus for maintain quality. This model is too simple in terms of dealing with real-life
complicated issues that may arise. The key limitation is that the model does not have measures
for making sure the excellence in the budget environment. The model could be unproductive in
renovatingand improving the financial productivity of company (Aquilani, et. al., 2017).
In addition, EFQM model has different standardsand sub-standardsthat evaluators may not be
competent for assessing the management scheme in an effective manner. One of the keyaspects

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of EFQMmodel is insufficient operational integration. Moreover,variationcreates between the
objectives of companyhence it should focus onactivitiesofEFQM model (Smit and Melissen,
2018).
Evaluation of Service Strategy inSquire Hotel
Squire Hotel Group is related to hotelsector that contains 20 hotels in differentplaces in London.
Moreover, capacity ofroomregarding these hotels may range from 45 to 125 bedrooms. The aim
for assessing the hotel services is to find areasfor enhancement in hotel as well as their
procedures. The primary customer of this hotel is business class individual who generally visit
the hotel in weakened. This demonstrates that Squire Hotel Group does not useeffective strategy
for influencing the tourists as it depends on its commercial customers (Amin, et. al., 2017).
Squire Hotel Group does not usebasicstructureto take complaints as well as suggestions. When
customers do not share their issues with thesenior staff, then problem from the system cannot be
resolved easily. In spite of profit expectation, there are no factsrelated to solid development in
system. The areas of enhancement are transparent however; no steps could be taken for solving
fundamental issues. Critical issues could be related topromptness of service, terrible requirement
for change and innovation, and fictional complaint receiving system (Vega-Vázquez, et. al.,
2016).
Causes for Problems
The key cause of fundamental issues is management system. Furthermore, no incoming
grievance system recommends that management should focus on standards as well as facilities
for offering. In addition, budget should be individually cut down individually because of market
condition and inadequacies of new facilities are an indication of stagnation that may affect the
financial performance of the company. The staff is being underpaid because of cutting the budget

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and that may cause poor performance as well as may affect the speed of services (Peng, Zhao,
and Mattila, 2015).
This hotel group does not support the innovation as well as depends on its traditional appeal for
obtaining the business growth. But, it should emphasize modern services in hotel for the
customer. Along with this, reduction of quality in service could be expected because oflack of
performance dimension related to service quality that the hotel offers (Amin, et. al., 2017).
It is becoming significant for resolving the existing performance as well as service issues from
company because when these issues would not be dealt then hotel will lose loyal customer. In the
hotel, there is lack of modern facilities and basic requirement of speed in service provision of the
hotels. Moreover,business growth ofhotel group would decline in the case; the company does not
use performance measures associated with service quality(Smit, and Melissen, 2018).
Application related to EFQM in Squire Hotel
Squire Hotel Group faces crisis but it can avoid promptly by application of performance
measures. The EFQM model is a key structure that could be implemented by different
procedures and structures at the workplace for solving the fundamental concerns. The first issues
that can be focused ona system is, where the manager has some targets as well as not being
competent for attaining those targets;cancause of losing a job. The primary component of EFQM
model is leadership that is used to deal with the situation. For usingactive leadership, hotel
manager should develop objectives, mission,as well as vision of company. Managers should
have clear ideas regarding those elements however; it should be explained with the
employees(Vega-Vázquez, et. al., 2016).
. The component related to communication is a key aspect for focusing on the concern of
employee’s performance. Mission and vision of company should focus on serving consumer and

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to attain the related objectives significantly. The employees should communicate between the
team in a significant manner to complete the task promptly. The concept of ‘people’ in 9 criteria
is essential in this situation that would lead the solution of issue related to customer satisfaction.
A hotel should deliver the added value to the customer as it is a keyelement ofmodel. It is
significant to identify suggestion as well as complaints of consumers with introducing new
services at workplace (Amin, et. al., 2017).
Effect on outcomes
There issignificant cause witheffect association inusingmodel as when speed of service enhances,
potential long-standing consumers would influencethe hoteland loyal customers of the hotel can
retain. The effects of the measuring the performance will enhance financial performance and
attainment of organizational goals(Suárez, et. al., 2017).
The introduction related to modern services such as detailed online profile and Wi-Fi availability
will create availability of squire hotel. It highlights rivalry and will pull bulk of customers
towards hotel. This transformation can be related toprocesses ofenablers, products,and services
from 9 criteria. Outcome in 9 criteria is related to effective staff communication, customer
retention, business outcomes, customer results, people results and enhancement in financial
performance(Bandyopadhyay, and Leonard, 2019).
Assessment of outcomes
Outcomeshould havelong-standing impact on growth oforganisation afterimplementation of
EFQM model structure. Outcomes that wereacquired by using this model are effective for
operations after prompt speed of services and effective communication. The resolution regarding
customer complaints by opinion ofcustomer related to input system that has created different
basis transformation to system as well as new services in hotelbecause of consideration related