HM601 : Consultancy Project for Hospitality Management Assignment Sample

Introduction To Investigate the effect of operational and economic challenges on hospitality business growth within Hounslow. A case study of Heritage Kitchen and Bar.

Background

Each company aims at expanding its business operation which aids in enhancing overall profitability and financial position. There are various factors creating issue in achieving the goal of expansion. Heritage and kitchen Bar is the Afro-Caribbean restaurant at Salisbury road is involved towards providing large variety of cuisine to the customers (Description of Heritage and kitchen Bar, 2024). This proposal is based on determining the influence of operational and economic challenges in effectively expanding the business operation of heritage kitchen and bar.

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Rationale

In the current times, there is a constant change in the operational measures and economic policy that creates issues for firm in effectively carrying out their operation (Morosan and Bowen, 2022). This creates urgency to identify the impact of operational and economic challenges in promoting the growth within Heritage Kitchen and bar.

Outcome

This proposal will help in determining the measures that should be adopted within Heritage kitchen and bar for growth an expansion. It will also depict the ways to deal with the operational and economical challenges that will help in creating competitive edge within industry.

Scope of research:

The scope of current research is wide as it will cover all the economic and operational challenges impacting on the overall growth of the hospitality industry within UK. This study will help in creating awareness reading impact on challenges and support in providing recommendations to overcome all challenges.

LITERATURE REVIEW

Academic perspective related to economic and operational challenges

Classical management theories

Administrative management theory

According to view point of Elavarasan et al, (2020) it has been stated that administrative management theory should be initiated within organization that help in effectively carrying out all the operations of the business entity. The theory stated that a formalized administrative structure should be initiated within an organization that helps in clearly defining roles and responsibility of individual. It has been identified that operational challenges due to inadequate distribution of responsibilities and equitable balance between authority and responsibilities (Administrative management theory, 2024). The application of administration theory help in determining rational way to design an organization’s structure which help in effectively delegating authority. This division of role helps in maintaining clarity within workers and support in decreasing overall confusion results in effectively carrying out business operation. In this support Wamba and Queiroz (2020) explicated that adequate distribution of responsibility help employees in becoming expert in their task result in enhancing efficiency and overall productivity. This help in reducing cost and improving overall economic position of the business entity. However, author claimed that administration management theory end up creating lot of bureaucracy which result in developing frustration within employees.

Scientific theory

Based on the view point of Al-Shetwi (2022) it has been identified that scientific theory of Taylor should be initiated that help in increasing overall productivity and profitability of business entity (Scientific theory, 2023). This theory focuses over dividing workload, assigning adequate role to employees based on their skills and monitoring overall performance of workforce. This help in adequately facing all the operational challenges and initiating activities that aids in improving productivity. However, Ahmed et al, (2020) claimed that scientific management theory is costlier which impact on financial position of business entity. Along with this, scientific theory does not provide freedom to workers as all the actions and activities of workers are controlled by manager. This results in decreasing overall motivation and creativity of employees leading to creating obstacles in carrying out business operations.

Contemporary Management theories

Six Sigma theories

According to Aksoy et al, (2022) high wastage is one of the biggest operational challenges that place significant impact on overall cost. To overcome the challenge six sigma operational theories should be adopted that includes method by which the defect and errors could be minimized and the quality and efficiency of the overall operations could be enhanced (Six sigma theory, 2023).

Contingency theory

Heinemann et al, (2021) stated that contingency management theory is most impact measure by which overall productivity and efficiency of business entity could be enhanced (Contingency theory, 2024). The theory suggests that there is no fix method by which operational efficiency could be enhanced rather strategies should be formed based on internal and external environment of the organization. In this context, Hospitality industry should involved towards regular evaluating internal and external environment based on which necessary activities could be initiated for improving overall productivity. However, contingency theory does not provide framework regarding the best management practices which creates obstacles in managing uncertainties.

Situational analysis

Pestle model

From the pestle theory it has identified that inflation and interest rate are major issue that is creating economic challenges for business entity (PESTLE analysis, 2024). Increase in inflation results in rise in the cost of production that leads to reducing overall profitability. On the other hand, Liu-Lastres, Wen and Huang (2023) stated that change in the interest rate create difficulty in raising funds that leads to developing barrier in effectively expanding business operations.

SWOT analysis

From the swot analysis of the Heritage Kitchen and Bar, it has identified that firm is having effective brand awareness and image which help in enhancing overall economic position of the business entity (SWOT analysis, 2024). However, the firm faces issues in maintaining competitiveness due to increasing competition which create issue in managing overall profitability. It has been indentified that firm is not able to regularly initiate new technology in their operations which creates issue in effectively carrying out operation in efficient manner.

Industry background on hospitality business

According to Molina-Collado et al, (2022) compliance issue, lack of data analytics, change in technology, equipment downtime, labour shortage, supply chain disruption, shift in interest rate, inflation, unemployment, economic inequality, poverty are various operational and economic challenges. Liu et al, (2021) stated that brand recognition, profitability, cost and market need are various factors impacting on firm’s expansion decision. Limna (2023) professed that this challenges results in creating funds shortages, increase cost, reduce productivity, leads to unavailability of resources that creates issue in growth of business entity.

Management challenges and their causes

From the research, it has identified that organization is facing large amount of economic and operational challenges which is impacting on overall performance (Wamba and Queiroz, 2020). Economic challenges include issue in managing overall profitability and cost of the business entity. High inflation rate and interest rate is root causes behind such occurrence as it is result in creating obstacles in sourcing material at the reasonable prices. Along with these operational challenges such as compliances issue, managing wastages, ineffective utilization of resources and supply chain management are faced by the Heritage kitchen and bar. This issue are caused as there is regular change in rules and regulations that create issue in effectively alignment. Further, ineffective relationship with supplier is the major reason behind supply chain disruption.

Impact of management issues and challenges:

All the management issues and challenges are creating various negative impacts on overall working of the business entity. Economic challenges results in restricting firm in initiating growth and expansion strategies which impact on long stability of the business entity (Tseng et al, 2021). Due to inadequate cost management, firm is not able to provide services at effective prices results in creating issues in sustaining competitive edge. Further, operational challenges create issues for organization in timely sourcing raw material which results in inefficiency of firm in fulfilling needs and demand of customers. Moreover, non compliance with the rules and regulation result in creating legal obligation on the business entity which negatively impact on overall reputation and goodwill of the business entity.

Recommendations for improvement:

Following are various measures and strategies that should be initiated by the Heritage kitchen and bar for overcoming all the management challenges and issues:

• Manager should focus on conducting macro and micro analysis on regular basis which will help in identifying changes that are initiating within the industry. This help in timely initiating changes so that competitive edge could b created.
• Firm should focuses over using AI technology which will help in effectively managing inventories and support in overcoming situation of under and over utilization of resources.
• Regular T&D session should be initiated which will help in enhnacaing employee’s skills and aids in overcoming issue of employee resistance (Dutta et al, 2020).
• Firm should invest towards marketing strategy which will help in attracting large number of customer and aids in attaining economies of scale. This help in reducing overall cost of production and support in overcoming operational and economic challenges.

RESEARCH METHODOLOGY

Research design

Research design implies the strategy that has been selected with the aim of integrating diverse component of study and to logically resolving the research issue. There are four crucial type of research design that includes experimental, correlation, descriptive and diagnostic design (Taherdoost, 2021). For identifying impact of operational challenges on growth rate of hospitality industry, descriptive research design will be used by the researcher. This method will be used as it helps in determining characteristic of particular phenomena and population. The current study will be carried out with the help of qualitative data as the perception of the managers could not be understood in the quantifiable manner. Further, the qualitative data will be accomplished with inductive approach and interpretivism philosophy that support in gaining in-depth information regarding the issue. Descriptive design method will help in systematically obtaining qualitative information that aids in better analysing situation, population and phenomena.

Data collection method

Data collection refers to the process of collecting and measuring data related to the variables that help in responding to particular question, testing hypothesis and analysing outcome. Majorly, two type of data collection method includes primary and secondary method (Newman et al, 2021). Primary data collection refers to the gathering information from the first hand sources as to collect indigenous facts related to issue. Secondary data collection implies gaining access to information that has collected by someone else. In the context of determining affect of economical and operational challenges, both primary and secondary data collection method will be implemented by researcher. Primary method will be used as it help in ensuring that information is up to date and support in revealing accurate trends.

 Under this, 25 managers of Heritage Kitchen and bar will be selected by using random sampling method on which survey will be conducted via questionnaires. Random sampling method will be used to promote ethnicity while selecting samples and to gain effective and representative of population. Further, secondary data collection method will also be used by the researcher as it help in overcoming the limitation of cost and time and support in understanding perception of large number of authors. In this context, Google scholar will be used by researcher that aids in providing access to large number of books, articles and journal. All the articles and journals before 2020 will be ignored as to promote accuracy and reliability within study. Along with this, thematic data analysis will be used that help in evaluating data by identifying pattern and theme within collected information.

ACTIVITY AND TIME PLAN

CONCLUSION

By summing up report, it has identified that operational and economic challenges has huge impact on expansion decision of business entity. For gaining in-depth information, primary and secondary data will be collected in which 25 managers of heritage kitchen and Bar will be surveyed and various books will be analysed. It has identified that such issues are resulting in reducing productivity, create difficulty in sourcing raw material, increase cost and decrease profit that eventually leads to hampering expansion of business entity.

REFERENCES

Books and Journals

• Ahmed, S.D., Al-Ismail, F.S., Shafiullah, M., Al-Sulaiman, F.A. and El-Amin, I.M., 2020. Grid integration challenges of wind energy: A review. Ieee Access, 8, pp.10857-10878.
• Aksoy, L., Choi, S., Dogru, T., Keiningham, T., Lorenz, M., Rubin, D. and Tracey, J.B., 2022. Global trends in hospitality. Journal of Business Research, 142, pp.957-973.
• Al-Shetwi, A.Q., 2022. Sustainable development of renewable energy integrated power sector: Trends, environmental impacts, and recent challenges. Science of The Total Environment, 822, p.153645.
• Dutta, P., Choi, T.M., Somani, S. and Butala, R., 2020. Blockchain technology in supply chain operations: Applications, challenges and research opportunities. Transportation research part e: Logistics and transportation review, 142, p.102067.
• Elavarasan, R.M., Shafiullah, G.M., Raju, K., Mudgal, V., Arif, M.T., Jamal, T., Subramanian, S., Balaguru, V.S., Reddy, K.S. and Subramaniam, U., 2020. COVID-19: Impact analysis and recommendations for power sector operation. Applied energy, 279, p.115739.
• Heinemann, N., Alcalde, J., Miocic, J.M., Hangx, S.J., Kallmeyer, J., Ostertag-Henning, C., Hassanpouryouzband, A., Thaysen, E.M., Strobel, G.J., Schmidt-Hattenberger, C. and Edlmann, K., 2021. Enabling large-scale hydrogen storage in porous media–the scientific challenges. Energy & Environmental Science, 14(2), pp.853-864.
• Limna, P., 2023. Artificial Intelligence (AI) in the hospitality industry: A review article. International Journal of Computing Sciences Research, 7, pp.1306-1317.
• Liu, M.T., Wang, S., McCartney, G. and Wong, I.A., 2021. Taking a break is for accomplishing a longer journey: hospitality industry in Macao under the COVID-19 pandemic. International Journal of Contemporary Hospitality Management, 33(4), pp.1249-1275.
• Liu-Lastres, B., Wen, H. and Huang, W.J., 2023. A reflection on the Great Resignation in the hospitality and tourism industry. International Journal of Contemporary Hospitality Management, 35(1), pp.235-249.
• Molina-Collado, A., Santos-Vijande, M.L., Gómez-Rico, M. and Madera, J.M., 2022. Sustainability in hospitality and tourism: a review of key research topics from 1994 to 2020. International Journal of Contemporary Hospitality Management, 34(8), pp.3029-3064.
• Morosan, C. and Bowen, J.T., 2022. Labor shortage solution: redefining hospitality through digitization. International Journal of Contemporary Hospitality Management, 34(12), pp.4674-4685.
• Newman, A., Bavik, Y.L., Mount, M. and Shao, B., 2021. Data collection via online platforms: Challenges and recommendations for future research. Applied Psychology, 70(3), pp.1380-1402.
• Taherdoost, H., 2021. Data collection methods and tools for research; a step-by-step guide to choose data collection technique for academic and business research projects. International Journal of Academic Research in Management (IJARM), 10(1), pp.10-38.
• Tseng, M.L., Tran, T.P.T., Ha, H.M., Bui, T.D. and Lim, M.K., 2021. Sustainable industrial and operation engineering trends and challenges Toward Industry 4.0: A data driven analysis. Journal of Industrial and Production Engineering, 38(8), pp.581-598.
• Wamba, S.F. and Queiroz, M.M., 2020. Blockchain in the operations and supply chain management: Benefits, challenges and future research opportunities. International Journal of Information Management, 52, p.102064.

Online

• Administrative management theory. 2024. Online available through:< https://timespro.com/blog/what-is-classical-management-theory-branches-benefits-and-examples#:~:text=Administrative%20Management,-Henri%20Fayol%20developed&text=Fayol%20introduced%20five%20primary%20functions,work%2C%20and%20authority%20with%20responsibility.>
• Contingency theory. 2024. Online available through:< https://timespro.com/blog/what-is-the-contingency-theory-of-leadership-know-the-different-models#:~:text=What%20are%20the%20key%20principles,to%20match%20the%20specific%20context.>
• Description of Heritage and kitchen Bar. 2024. Online. Available through: < https://www.tripadvisor.com/Restaurant_Review-g528813-d20098380-Reviews-Heritage_Kitchen_and_Bar-Hounslow_Greater_London_England.html>
• PESTLE analysis. 2024. Online. Available through: < https://libguides.libraries.wsu.edu/c.php?g=294263&p=4358409#:~:text=Reports%20and%20Trends-,What%20is%20a%20PESTEL%20Analysis%3F,organization%2C%20company%2C%20or%20industry.>
• Scientific theory. 2023. Online available through:< https://www.cas.org/resources/cas-insights/breakthrough22>
• Six sigma theory. 2023. Online. Available through: < https://www.simplilearn.com/what-is-six-sigma-a-complete-overview-article>
• SWOT analysis. 2024. Online available through:< https://asana.com/resources

Author Bio

Casey Bennett   7 years | PhD

My name is Casey Bennett and I have obtained my graduation, post-graduation and PhD from London Business School. I have been giving education to students for the last 7 years in the United Kingdom. I can help you deal with complex dissertation topics, assignments, and essays and finish them fast.