Description
You are required to identify a hospitality organisation of your choice (within the public domain). Critically assess the key operational management practices and challenges that they currently face (e.g. service innovation, process design, supply chain management, impact of technology) and present recommendations for its future operations management strategy.
Your discussion should indicate the extent of your background reading in this area. You are therefore required to consult academic sources in your submission (e.g. journal articles, textbooks, trade publications). You are also encouraged to offer your own personal observations from a consumer and/or work experience perspective.
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Running Head: OPERATIONS MANAGEMENT
Operations Management
Name of Student
Name of Instructor
Name of Course
Name of Institution
Date
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OPERATIONS MANAGEMENT
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Table of Contents
Introduction ................................................................................................................................................... 3
Literature Review.......................................................................................................................................... 4
Critical operational management practices for Paddywagon Tours.......................................................... 4
Challenges faced by Paddywagon Tours .................................................................................................. 5
Recommendations for future operations management strategy ................................................................ 9
Conclusion .................................................................................................................................................. 13
References ................................................................................................................................................... 15
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Introduction
Operations management involves the administration of business practices to develop the
highest degree of efficiency within a firm. The operations management entails converting
materials into products and services to generate profit for a business. Paddywagon Tours is an
Ireland company that offers transport services for tourists visiting Europe and other sightseeing
people who need to travel from one place to another (Ladrigan, 2014). The company began its
services in the hospitality industry in 1998, where it had a target of offering something different
to its customers. The service sector is one of the significant parts of the Ireland economy. The
industry accounts for 75% of Ireland's total employment, thus making it an important industry.
The company engages in tourism tour operations, where it manages several categories of
operational practices. The company offers day tours to tourists for the most attractive areas in
Ireland. A private expedition arranged by a family is another service the company provides to the
public. The company creates something unique for the tourists, thus making them satisfied with
the services they receive. The company offers multi-day tours to its customers and shore
excursions for cruise passengers from Ireland's leading ports (Paddywagon, 2020). Customer
preferences have become problematic in the touring sector, making companies focus on
customer satisfaction to remain competitive. Due to competition from other touring companies
and advancement in technology, Paddywagon tours face several challenges in their practices.
The paper explains the necessary operational procedures for the Paddywagon tours, its
challenges in its ways, and recommendations for its future management practices.
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Literature Review
Critical operational management practices for Paddywagon Tours
Operations management practices involve the activities that help the company control
and direct the processes that a company uses to offer services to its customers. Paddywagon
Tours deal with tourists and engage in several operations management practices essential in
enhancing customer satisfaction in the hospitality industry. One of the ways involves supply
chain management. Paddywagon tours deal with transporting tourists and their belongings from
one destination to the other. The company manages the logistical operations by monitoring
customer transportation from one place to another to enhance satisfaction. Another practice
involves customer service. Tourists can book a ride from hotels in Ireland or use the Official
Irish Government Tourist Offices to order Paddywagon tour services (Paddywagon, 2020). The
customers can also book directly with Paddywagon tours from the online booking portal for the
company. During the booking process, Paddywagon tours communicate with its customers to
understand their needs, thus offering satisfying services.
The company also has management that controls the operations for the company. The
practices conducted by the firm are under management control, thus oversees the overall
performance of the company. Information technology is another operational management
practice for Paddywagon tours. The company has an online service where customers can book
for service delivery. The primary purpose of the information technology for Paddywagon Tours
is to automate operations for the customers. Instead of physically visiting the company premises
for bookings, they can do it through online services and deliver the service to them.
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Challenges faced by Paddywagon Tours
Paddywagon Tours deals with different operations to meet customer needs. During the
operational management practices, there are challenges which the company experiences, thus
affecting the general performance of the company. One of the challenges involves technical
issues. Paddywagon tours experience the challenge of technological advancement, which poses
information privacy concerns. The technology entails applying scientific techniques in the
business; technological advancements influence business operations in various economic sectors.
The current COVID-19 global crisis has made most business operations virtual, hence mandating
businesses to leverage technology-based business operations (Curran, 2020). Paddywagon
Company uses technology-based data management systems to store client data. Clients make
their travel arrangements online, which requires the company to monitor the privacy of client
information. Technological advancements pose a significant threat to companies that store client
data in electronic devices. Data in electronic systems are prone to hacking, and this raises
concerns about a breach of privacy.
Paddywagon Tours Company faces the challenge of cybersecurity when handling
customer personal information due to privacy issues. Businesses spend a fortune investing in
technology to improve their services and meet the market's technological demands.
Digitalization is changing the hospitality industry since companies implement specialized
interfaces that allow clients to enjoy benefits independent of direct employee engagement. The
adoption of self-service technologies in the hospitality industry is causing a significant strain on
most organizations. Paddywagon Tours Company faces a challenge in coping with new and
sophisticated technological developments in the hospitality sector (Paddywagon, 2020). As
technology improves, companies incur the expense of implementing new technology to cope
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with market pressure. Some clients are uncomfortable with the idea of cyberspace. Moreover,
the cost of training clients to adopt new technology is overwhelming, especially in case of
service failure.
Government policies are also another challenge that Paddywagon tours experience in
their travel operations. The government influences business operations by enacting laws that
either improve or suppress business activities. Paddywagon operates under the regulations and
state policies that govern procedures in the tourism business. Countries increase taxes on
businesses to fund various government projects and activities. Heavy taxes make business people
realize low profits from their operations. Governments use both fiscal and monetary policies to
regulate business activities in various sectors. Government regulations increase interest and
borrowing rates, which lower business activities. The current COVID-19 pandemic has caused
many governments to enact various business regulations that affect most tourism companies'
travel operation. The travel restrictions have affected the transport operations of Paddywagon
tours. Dublin's current travel restriction constitutes significant impacts on the travel operations of
most tourism firms in the region (Hesse, 2020). The travel restrictions on the tourism sector
include a burden that reduces firms' profits in the industry. The regulations make travel
companies increase travel costs for various tourist destinations, which might mitigate their
clients. The tourism sector experiences economic saturation, and when taxes become a burden,
firms in the tourism industry experienced a significant decline in profits.
Poor management is another challenge in Paddywagon tours. Management constitutes the
strategies that a company uses to plan and achieve its organizational goals. Poor management in
business affects the customer experience. Employee management during the current COVID-19
pandemic is challenging due to the restrictions to contain the crisis. Paddywagon Tours
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Company has several client complaints about its booking services, cancellation policies, and
travel service experience. Some clients have recorded challenges when booking and adjusting
their travel arrangements. The incidents reflect the low management strategies in the company,
which is a significant disadvantage. Management of a company determines the employeemanagement relationship. Companies that have executives that bully their subordinates are likely
to have a low management hierarchy. Poor leadership results in pilled client complaints,
inadequate services, and declined client satisfaction. Viral claims that some clients who have
used Paddywagon travel services complain of unprofessional drivers who do not know
directions.
Poor customer service is another challenge the company is experiencing. Paddywagon
Tours deals with clients with a customer service department that communicates with customers
and handles customer claims. Customer preferences are changing, and customers expect instant
customer service. When Paddywagon tours customers interact with the company physically or
through the website services, they expect the company to respond to their issues instantly.
However, this has not been the case for the company. Customers raise their claims to the
company, but it takes a long time for the customer service to respond, making them less satisfied
with the customer services. For instance, a customer argued that they requested a refund because
of the tour cancellation, but the customer service took more than two months before responding
to the claim (Paddywagon, 2020). When a business fails in its customer service, it is likely to
lose customers to the competitors. The touring industry in Ireland consists of several companies
that customers can choose from when they want.
Insufficient service innovation is another challenge Paddywagon Tours is facing. Service
innovation involves the company's service process depending on the available technology or a
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company's systematic procedure. When reviewing the customer experiences for Paddywagon
tours, several customers indicated that they provide unsafe customer experiences. The challenge
may be a...