MKT 3125: Evaluating EFQM Model for Squire Hotel Group Performance

This report evaluates the potential of the EFQM (European Foundation for Quality Management) model to improve organizational performance at the Squire Hotel Group. It identifies key issues faced by the hotel chain, such as competition, customer satisfaction, and service quality, and explores how the EFQM model's nine criteria (leadership, strategy, people, partnerships and resources, processes, products and services, customer results, people results, society results, and key performance results) can address these challenges. The report discusses the application of each EFQM criterion to the Squire Hotel Group, highlighting areas for improvement in leadership, strategic planning, people management, and process optimization. It also examines examples of other service organizations that have successfully used the EFQM model. The report concludes with recommendations for the Squire Hotel Group on how to effectively implement the EFQM model to enhance service quality, customer satisfaction, and overall business performance.

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Executive Summary
The below mentioned paper evaluate information about the execution of EFQM model on a hotel
chain group. European Foundation for Quality Management is a tool that helps the business
process in attaining excellence in the target market by analysing issues in the business process
and effectively working on them. There are five objective areas in the EFQM model that
determine the ways in which objective can be achieved, these areas are leadership, people,
policy, partnership and resource and process. There are four results that are indicated in the
intended objectives, these aspects are people result, customer result, society result and key
performance results. The paper highlights the implementation of EFQM model on the Squire
Group Hotel. The hotel was facing various problems in its external environment so the
application of this framework will subsequently help the company to grow. More details about
the paper are discussed below.

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Contents
Introduction......................................................................................................................................3
The Squire Hotel Group...................................................................................................................3
EFQM Model...................................................................................................................................5
Application of EFQM to Squire Hotel Group.................................................................................5
Leadership Criteria......................................................................................................................6
Strategic Criteria..........................................................................................................................7
Succeeding through People..........................................................................................................7
Partnership...................................................................................................................................8
Managing Process........................................................................................................................8
Companies that used EFQM Model................................................................................................8
Conclusion.......................................................................................................................................9
Recommendations............................................................................................................................9
References......................................................................................................................................11

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Introduction
The purpose of the paper is to enlighten the reader about the information of the hotel group
Squire Hotel. The paper focuses on the implementation of EFQM model on the enhancement of
performance of the organization. Various issues have been identified in the paper for the hotel
group facing various problems in the external as well as internal environment. The hotel group
lacks formal method of collection of information along with the information about beds etc. The
customers present in the hotel are mainly tourists who are foreign or localities. The company is
aiming to upgrade the business functions according to the service standards of the hotel. There
are various services that are recommended to the company to grow and increase satisfaction in
the target market. The below mentioned report enlighten the reader about the EFQM model
along with its application on the company. The model successfully helps the company to grow,
eliminates the issues and increases the sales of the services in the target market. The European
Foundation of Quality Management model is by many companies prevailing in the market with
an aim to sustain the quality and self-improve the image as well. The report describes the service
quality problem in Squire Hotel Group and use of EFQM model to increase the effectiveness of
hotel. More details about the paper are discussed below:
The Squire Hotel Group
The Squire Hotel Group is a hotel chain of around twenty hotels under them with bedroom
inclusive of 40 to 120 in every hotel. The company has its hotels in regions Southport, Warwick
and Oxford. The company identifies itself a marketing hotel with a rating of three stars. The
company has earned differentiation in the market through its quality, reasonable prices and first
rate services as well. The company majorly deals with commercial clients as their customers in
the market. The Squire hotel that is located in Oxford has a total 41 bedrooms and is located in
Magdalen College. The rooms of the hotel are well designed and efficient services to the
customers in the hotel. The staff turnover rate of the company is approx. 70 per cent and the
infrastructure of the company is also efficient that helps the management in adequately
delivering services to the customers. The budget of the company is prepared at the head office
separately for the individual costs like breakfast, lunch and dinner (Company House 2019). The

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managers of each of head office are answerable to every question of the staff and the employees
in the organization. Decisions by the manager in the hotel are implemented considering different
geographical boundaries where the hotels are situated.
Further, talking about the issues faced by the hotel in the environment, it should be noted that
just like any other hotel Squire hotel group also face various problems in the environment that
affects its growth in the target market. The issues faced by the hotel group are increased by
various factors like competition between market players, need of improvement in customer
satisfaction, level of high quality service providing need. These issues pull back the growth of
the company that dissatisfies the customers in the target market. These issues subsequently
reduce the level of profits for the company. According to Charles Harper, the entrance room of
the hotel is maintained in a traditional manner which gives a bad impression to the visitors that
the hotel does not provide adequate service quality in the environment. Further, one of the major
issue is the need of beds in the hotel as during the peak season the hotel require more extra beds
which they are incapable of providing to the customers (Bloomberg 2019).
Thus, lack of bedding facilities dissatisfies the customers to the maximum extent that reduce the
repeat visit of the customers to the hotel. The profit margin of the company is stable but it is not
increasing as the business is not aiming for an expansion plan. However, the issues are reducing
the profitability of the company but the business is not aiming to expand the scope of business to
increase the profitability margin of the company. Food is one of the components for the hotel
staff get complaints on a regular basis, but the complaints are never collect in a formal way. Due
to which the complaints are neither resolved nor addressed by the higher level management.
Lack of suggestions and guidance reduces the competence of Squire Hotel in the target market.
Lastly, high degree of competition in the industry stresses the actions of Squire Hotel that affects
its growth and reduces competence in the market as well. There are many restaurants and hotels
present in the market that provide excellent services to customers, however, the restaurant
manager complain of tight budget due to which they are unable to deliver such services to
customers in the market. It is believed that the EFQM Model will do justice with the company
and eliminate the above mentioned issues as well (José Tarí, and Molina-Azorín 2010).

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EFQM Model
The EFQM display 2010 is a non-flexible system that was established on nine standards. These
principles envelop strategy; leadership quality; people; organization/ partnership and resources;
procedures and processes, product or service; client results; people results; society results and
key outcomes. Further, principles are then segregated in two segments, under which the initial
five aspects are empowering influences while left four segments acts as results (Bou-Llusar, et.
al., 2009). The enablers’ influence shows the activities organized by a company to eliminate
issues, while the result aspect involves the things that are accomplished on the part of a company
and process that are organized to accomplish these results. The enablers’ acts as a creation of the
results and ordinarily, responses from results and conclusions are initiated so as to upgrade
enablers. Implementation of the EFQM model in a company is beneficial in such a way that the
work done by the nine principle segments would further help with comprehension and
examination of reason and effective link between the actions implemented through a company
and the positive consequences are so obtained. Also, the model makes use of a holistic method
for the administration of the activities in an organization and exhibit improvement in the
performance. Be that as it may, the implementation of this EFQM model a corporate may have
many different complexities, the major one is in incorporating opposition created by the staffs
and requirements for new changes in skills by the end of employees (Young Kim, Kumar, and
Murphy 2010).
In the given paper, the EFQM model show 2010 will be associated to the Squire Hotel Group.
Motivation behind use of this model is to learn irrespective of anything that the EFQM model
would be fit for structure for improving the implementation of activities at the Squire Group
Hotel. Surveying, regardless of any other aspect that whether the model is being used by
different companies providing products and services to clients and in what way these companies
are viable as long as execution upgrade, this will provide an impression to the extent that
effectiveness of the utilization of this model is initiated (Gómez Gómez, Martínez Costa, and
Martínez Lorente 2011).

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Application of the Model EFQM in the Squire Hotel Group
When an organization face issue in the market then it is very important for the management to
analyse all the available aspects and evaluate them. Thus, the hotel aims to make use of the
EFQM model to as to analyse various factors and eliminate the issues from the company. This
model will help the hotel group to improve the performance by increase the service quality and
managing the business process with adequate leadership in the environment (Asif, et. al., 2011).
Below mentioned are the criteria of EFQM model.
Leadership Criteria
Leadership is the most important factor that elaborates the success and failure of a business in
organizational context. Leaders in an organization focus on the attaining the targets by satisfying
the customers in the target market. Harper in the Squire Hotel explains that the hotel managers
focus on the monetary target every yea. However, they fail to give specified reasons to the
incompletion of the objectives in the market. The leaders of the business are incompetent of
providing proper justification with valid reason to the top management (Calvo-Mora, et. al.,
2014). Further, according to the model it is expected that the managers need to make use of
proper leadership skills and quality to initiate communication and command to team in the
market. The company should mainly focus on customer satisfaction in the market, all the
activities should ultimately aim to increase the satisfaction level of the customers are provide
them services in such a way that competitive advantage is received to the company in the target
market. The research on the hotel group states that poor communication along with ineffective
decision making process reduces the satisfaction level of customers in the target market
(Doeleman, Ten Have, and Ahaus 2014). The management is not in favour of making changes in
the market that is subsequently reducing the competence of company against the competitors in
the target market. Change management program should implement in the organization so as to
initiate new attributes to attract the customers in the market.
So, in order to implement effective leadership in the environment, the leaders of the company
should initially find out the areas where the company is lacking behind and then they should
focus on changing them so as to increase the quality of service providing by the company
(Gouthier, Giese, and Bartl 2012). In this way, the company would be able to increase the food
quality and they would also be able to understand the concern of the people and satisfy them

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accordingly. Better management strategies will result in better results from the society, clients
and people. Highly satisfied employees will certainly drive success for the company and increase
the satisfaction level of the customers as well (Dahlgaard, et. al., 2013).
Strategic Criteria
The strategy is being established on the understanding desires and needs of different partners in
the association, including the clients, suppliers, individuals and providers and the society,
everywhere. In order to attain information about recognizing need of the partners and
stakeholders helps the companies in building up procedures with systems, that will encourage
distinguishing proof of the current and the future need and necessities of the customers (Talwar
2011). The organizational manager can make use of such systems as situation creation, the
SWOT investigation or benchmarking, and reviews so as to recognize the necessities of the
stakeholders and suppliers.
For this situation of Squire Hotel, the needs of the clients are altering and changeable, and this
requires an adjustment in the hotel so as to address such issues, along these lines fulfil the
clients’ needs as well. As Dickens recommends, the limit points set forth by the head office of
hotel, disturbs the exhibition of novel menus that will address the current and immediate clients'
issues and devise plans for future expectations. For the current situation, with an aim to
guarantee improved performance of hotel, the directors should think of appropriate methods that
will subsequently help them meet the current needs of the clients while as working in the set
limit defined by the budget. Moreover, the head office of the organization should provide more
sway to the managers, as they are in a main post for judging the requirements of their clients
(Araújo, and Sampaio 2014). In addition, building up relationship along with neighbourhood
firms, as supported by the company, is a basic factor for accomplishing improved execution of
activities in the external environment.
Succeeding through People
People are the major resources who are viewed as the most important asset for an organization.
These people increase the creativity factor in the organization and drives success for the
company. The people in an organization offer skills, innovation, and competence in the
environment that drive work in the internal environment of the organization (Kanji 2012).

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Further, people in an organization should be developing by the way of training and mentoring in
the organization. In the hotel Squire, the top level management should guide the employees with
their expectation from them so as to enlighten them with the business objective of the company.
Along with this, proper training should be provided to each and every employee so as to keep
them intact according to the services expectation of the client (Sampaio, Saraiva, and Monteiro
2012). Staff appraisal, meetings and surveys should also be initiated in the organization so as to
increase the effectiveness of the company.
Partnership
Further, entering into partnership is also always looked as a beneficial action for the company.
Partnership process makes the organizations to share the efficiency of each other and grow.
Partnership in an organization is formed with the key suppliers, customers and the society. For
the Squire Hotel Group, the management should establish effective partnership with the key
people so as to initiate effectiveness in the organization and drive satisfaction for the customers
as well. Effective relationship will also initiate successful functioning of the business process and
elimination of competition as well (Yousefie, Mohammadi, and Monfared 2011). Developing
personal relationship with the local companies and people will reduce the barriers in regular flow
of work.
Managing Process
Lastly, it should be noted that an effective organizational plan will help the management to
properly manage the resources as well as functions of the company. The company should
effectively make use of leadership process so as to manage the business functions and increase
the value from the service provided (Suarez, Calvo-Mora, and Roldán 2016).
Companies that used EFQM Model
Many companies in the external environment make use of the EFQM model so as to improve the
performance of the organization. Most of European companies are a proof that EFQM model is
beneficial for the success of the companies in the target market. Companies like Nestle,
Volkswagen, and British Telecommunication Plc. etc. are some of the renowned companies that
make use this model to successfully grow in the external environment. The model has helped the
companies in various ways to increase their productivity in the external environment. This model

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has helped the companies to focus on the key areas and find out where the company is lack
behind and subsequently work on them as well. This process significant make all the process of
an organization come together and work simultaneously for the growth of the company. This
model has adequately identified the issues faced by Squire Group in the target market. The
application of this model on the company is evidence that it will increase the performance as
well (Asif, and Gouthier 2014).
Conclusion
Thus, in the limelight of above mentioned events, the fact should be noted that the paper
highlighted information about the Squire Hotel Group. The hotel is facing major problems in
managing its success in the target market. The hotel group is unable to align all the business
activities together towards the growth of the business due to which they profitability is depleting
in the environment. Further, the above mentioned paper highlighted information about EFQM
model and how it works in an organization. The model is a flexible as well as diversified tool
that helps the business process in identifying areas of difficulty and initiating success in the
target market. The application of this model is explained in the above mentioned paper to
determine success for the Squire Hotel Group. Thus, with the help of this model the hotel group
would be able to eliminate the issues and increase its profitability in the target market.
Recommendations
There EFQM model is a diversified tool that is generated and influenced by the TQM tool only.
It is very important for the business like Squire Hotel to make use of quality management tools
and techniques as it helps the management in delivering the service as required by the customers
in the environment. The company should effectively make use of this type of tool so as to
analyse the demand of the customers present in the market. Thus, it should be recommended to
the Squire Group of Hotels that they should effectively ask for feedback and do surveys in the
target market so as to analyse the expectation of the customers from the company (Balbastre-
Benavent, and Canet-Giner 2011). This will help the management to implement the tool by
focusing on the expectation of client from the business. Further, the feedback should also be
taken from the employees of the company so as to get information about their point of view and

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perspective about the company. This process will help the business to analyse internal as well
external expectations from the company. Adequate appraisal plan should be initiated in the
organization so as to keep the employees motivated and make them work according to the
expectation of clients and business objectives as well.
Also, the EFQM has a differentiated method of approaching towards the areas where
improvement is needed in the organization. This work is done by the assessor in an organization.
Under this process of EFQM model, specific steps and initiated that allow the assessor to analyse
and evaluate the areas where the business needs improvement. The business implements certain
steps through which they attain results in the internal environment. By the way of this process,
the financial performance of the company is improved along with higher level of satisfaction on
the end of customers as well (Ionică, et. al., 2010). Thus, it can be said that the RADAR
approach helps the management to analyse the results of performance of the employees and the
company by the way of increase financial data and key performance indicators of the company.
This approach analyse the results and then review it and refine it according to the expectation of
the customers.

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References
Araújo, M. and Sampaio, P., 2014. The path to excellence of the Portuguese organisations
recognised by the EFQM model. Total Quality Management & Business Excellence, 25(5-6),
pp.427-438.
Asif, M. and Gouthier, M.H., 2014. What service excellence can learn from business excellence
models. Total Quality Management & Business Excellence, 25(5-6), pp.511-531.
Asif, M., Searcy, C., Garvare, R. and Ahmad, N., 2011. Including sustainability in business
excellence models. Total Quality Management & Business Excellence, 22(7), pp.773-786.
Balbastre-Benavent, F. and Canet-Giner, M.T., 2011. The strategy formation process in the
EFQM Excellence Model: a critical review and new perspectives. Total Quality Management &
Business Excellence, 22(7), pp.727-742.
Bloomberg., (2019) Company Overview of Squire Hotels Ltd [online]. Available from
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=242364768
[Accessed on 19 Mar. 19].
Bou-Llusar, J.C., Escrig-Tena, A.B., Roca-Puig, V. and Beltrán-Martín, I., 2009. An empirical
assessment of the EFQM Excellence Model: Evaluation as a TQM framework relative to the
MBNQA Model. Journal of Operations Management, 27(1), pp.1-22.
Calvo-Mora, A., Ruiz-Moreno, C., Picón-Berjoyo, A. and Cauzo-Bottala, L., 2014. Mediation
effect of TQM technical factors in excellence management systems. Journal of Business
Research, 67(5), pp.769-774.
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https://beta.companieshouse.gov.uk/company/07800289> [Accessed on 19 Mar. 19].
Dahlgaard, J.J., Chen, C.K., Jang, J.Y., Banegas, L.A. and Dahlgaard-Park, S.M., 2013. Business
excellence models: Limitations, reflections and further development. Total Quality Management
& Business Excellence, 24(5-6), pp.519-538.