OPerations objectives at Penang Mutiara

Essay by holp1979University, Master'sB, December 2004

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Qn 1a) Describe how you think Wernie will make sure that the way he manages the hotel is appropriate to the way it competes for business;

Penang Mutiara, being one of the most prestigious hotels in Penang, have managed to secure a foothold in this lucrative and highly competitive environment.

Wernie has the vision and very clear focused beliefs about the importance of running an effective operation where customers have every right to demand for first class service which they are obliged to provide for.

Assuming neighbouring competitors such as Pelangi Beach Resort Langkawi and Shangri-La's Rasa Sayang Resort who is adopting common strategies like pricing and product strategies, Penang Mutiara aim at providing impeccable quality and customer orientated strategy to provide a personal touch as part of its uniqueness to retain customers.

In order to compete for business and to keep abreast with stiff competition in the hotel industry, currently, Wernie adopted impeccable quality strategy where he recognizes that "it is impeccable service which gives us our competitive advantage, not price."

Since it is cheaper to retain regular guests than to attract new ones, he understand the advantage of retaining regular guests through providing impeccable services which will in a way retain high occupancy rates to keep costs down while achieving reasonable profitability.

To achieve that, he set basic standards for his staff to be well trained, knowledgeable, sensitive and anticipative to think ahead in order to provide basic and value-added services to satisfy customer's needs. The ability to remember regular customer's information and personal preferences can also add on to a personal touch upon their next visit. Additionally, quality services in terms of providing stylish design and top-class materials and being able to practise good preventive maintenance to the building structure and equipment is also another way...