Thursday, July 25, 2019

Management Decision Making Essay Example | Topics and Well Written Essays - 2250 words

Management Decision Making - Essay Example This report will present an analysis of the hotel’s resources and systems and evaluate the financial systems, customers, internal business operations, learnings and growth of Forester using the method of balance score card. It will also employ the SERVQUAL method to help in the decision making about the change in revenue generation model. The main task of the report is to conduct an analysis of Forester Hotel in order understand the competitive priorities for the hotel’s customers. This is undertaken by using the Balances Score Card Method for Forester Hotel. The Balanced score card is a technique that provides in depth insights about what a given strategy’s impact may be on different aspects of the organization including the operational and the financial performance, the customer satisfaction and the learning and growth of the organization (Kaplan and Norton, 1996). It is an appropriate tool to arrive at the targets and measures that the organization needs to ad vocate in order to achieve its strategic vision. A Balanced Score card can be used for any organization, but it is particularly useful for service organizations where intangible compinents of operations and services need to be evaluated (Denton and White, 2000). In addition, a balanced score card lets the hotel assess the perceptions and expectations of the customers and hence make the relevant changes in its strategies (Denton and White, 2000).     It is also an exhaustive exercise for the same reason as it involves several steps like the Systems Mapping, the Objectives Mapping and the Strategy Mapping before the balance score card can be developed. Sytem Mapping A balanced score card is however developed on the basis of the information gathered about the financial systems, the customer related systems, the internal operational systems and the learnings and growth systems of the organization. It therefore relies on an exhaustive mapping of the organization in terms of its syste ms and the interlink between them (Kaplan and Norton, 1996). The following figure is a system map and it showcases the systems that are operational at Forester Hotel. Fig 1: Forestar System Mapping Government Legal system: Standards, Licensing Financial support system: Credit, Interets rates Forestar Hotel Operating Systens Restaurants (purchase, prepare, serve) Rooms Management (scheduling $ housekeeping) Activities (schedule, maintenance) Quality Planning Staff Training Food Standards Equipment Maintenance Financial Cost/ Resource Aquisition System Control Systems HR Logistics Purchase Income Generation Capacity Planning Number of Rooms Leisure activities Construction Activities Accomodation Staff Size Food Conferences /Parties Source: Author A system map is a detailed diagram showing the inter-linkages between different sub-systems within an organization and also highlighting the influence of external systems (customer, governmental, legal) on the internal sub systems. It is an e xhaustive representation of how different processes related to each other and hence helps in identification of the impacts that any proposed changes in strategies may bring to the organization (Kaipa, 2000). The only disadvantage of using this technique is that it is time consuming and requires an in depth analysis of the organizat

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