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MKT01909 Analysis of Service Concept in Coastal Hotels: Operating Strategy Assessment Answer

MKT01909 Service Management for Tourism and Hospitality

General instructions and information for Assignment 1 2

The first two assessments are based on the same topic area. 

To complete these, you will be required to create your owhospitality/tourism/events service organisation, large or small, that you may like to manage (or own) someday. You will need to think about the key aspects of service delivery and as such, focus on the operational management concept rather than simply presenting a business proposal or plan. Most of this can be done in class!

Your service delivery plan will be broken down into two parts and it is strongly advised that before you commence Assignment 1 (Part A), you read the requirements for Assignment 2 (Part B) to identify some of the key concepts that you will need to apply to your organisation at a later stage.

One of the major differences between a manager with a university degree and a manager without a university degree is the use of evidence based decision making. We want to see you use this type of decision making with the service organisation you create. As a university graduate you should be able to draw on relevant literature and think constructively and critically about the information you obtain.

Other important points you should consider when planning, writing, and submitting

Assignment 1 (Part A) and Assessment2 (Part B):

  • There is no need for you to approach any organisation to obtain information. Your analysis must be based entirely on secondary information sourced from observation, academic or applied literature and other web-based sources.
  • Your reports must be word-processed and at least 1.5 spacing, and give yourself plenty of space: use paragraphs!

Assessment 1 (Part A):

Your organisation and its Strategic Service Vision (Stages 1 & 2)

Length: up to 1750 words

Many organisations face choices regarding the types of services they wish to offer and to whom, and the operational procedures they employ. Frameworks are sometimes used to assist in these decisions. Using Heskett’s ‘strategic service vision’ framework as a template, specifically stages one and two, provide:

  • an overview of your organisation
    • you might also like to create a logo for your organisation!
  • its ‘target market segments’ and
  • its ‘service concept’.

In addition to the above, the following questions should be addressed:

  1. Outline the core and peripheral services that make up the bundle of services you will offer to the customers of your organisation.
  2. Provide a description of the proposed servicescape.
    • NOTE: although this is relevant to Part B, it will provide substance to your overview.
  3. The service sector is now a key generator of economic prosperity in many countries. However, changes in the context in which businesses operate are having an impact on their ability to provide this economic wealth. Using newspaper articles (print or online) written in the past 12 months:
    • identify three current issues that would impact on your specific organisation, and strategies that your organisation might implement to minimise these factors.
    • Ensure you reference these correctly
  4. Using a range of sources of information, including non-academic and academic articles as supporting evidence: 
    • identify and evaluate four factors that you think will impact on your business in the future.

Guidelines to your Strategic Service Vision report –  Part A

This assessment is designed as an experiential learning exercise by having you apply theoretical concepts to a potential real-world situation in a critical manner. You should adopt the mindset of a real business owner/investor for the organisation you have elected to base your report on. NOTE: do not submit general service concepts that might be applied across lots of organisations: this assessment is specifically about the organisation you have created.

Your strategic service vision report must be presented using academic report format. It should conform to the following format, and should also include a professionally laid out table of contents prior to the executive summary. The word count for each section is a guide to help you, but you may be longer or shorter in some sections depending upon your organisation.

Executive summary [250 words]

An executive summary of a report is a summary that contains a statement of the report’s purpose and an overview of the findings. Write in past tense (e.g. The purpose of this report was to…). If an executive summary is well written the reader should be able to understand the main points, findings, and conclusions of the actual report without having to read the full report. 

Section one – Introduction [100 words]

This is a brief statement of the purpose of the report, what its objectives are, and an overview of how the report is structured

Section two – Organisation overview [400 words]

This is where you will briefly showcase your organisation, its name, description of operations, its bundle of services [Q1] and its servicescape [Q2]. A good place to start is Topic 2 of the Study Guide (core and supplementary services) and your text book (servicescape). Your goal here will be to sell the idea of your organisation to the reader/marker. You might like to include a logo here too!

Section three – Target market segments [400 words]

In this section you are to refer to Heskett’s strategic service vision, stage 1 and using the most relevant headings, identify the type of customers you plan to attract. Although there are a number of headings, you are not restricted to this list and it is recommended that you source other data and/or literature to help determine the appropriate markets. Study Guide Topic 2 is useful for this section.

Section four – Current and future implications [400 words]

You need to identify three (3) current issues [Q3] (sourced from non-academic and academic literature) that are impacting your organisation. It is important here to source information that is actually relevant to your organisation and you must critically analyse the information, potentially exploring strategies to minimise these factors and implications. 

Also on this section, you need to identify four (4) issues that may impact your organisation in the future [Q4]. Use a range of source material to support your identified issues.

Section five – Service concept [100 words]

Here you are laying down the foundations for Part B of your assessment. It is the how and what of service design, where you need to bridge the customer s’ needs (as determined in your Target Market research) and the intent of your organisation. You should be aiming to show how you wish the services to be perceived by the customers and other stakeholders. For example, if your organisation is a backpacker accommodation, you might emphasise a cheaper service, utilizing mobile technology whereas a luxury resort may emphasise quality service and personalised attention.

Section six – Conclusion [100 words]

Within this section restate the purpose of the report, then provide an overview of main points covered in your analysis. Ensure that you do not include any new information, only that which has been discussed within the main body of the report.

Demonstrated ability to critically analyse sources

You are expected to ask critical questions of the material you read. Only minimal marks will be awarded in cases where you have merely re-stated what the authors have already said. Can you identify any potential flaws in the concepts? Is there a difference in opinion between scholars? Who do you think is right, and why? These are potential areas of critical analysis you could focus on.

Evidence of original thought and creativity

You must show that you have developed an ability to think about how the theories and concepts covered might be applied in the real world though their links to your own created organisation

Quality of presentation structure; overall content; quality of bibliographic details; written expression

You should present your work in a logical, easy to read format. It should also conform to the structure outlined previously. NOTE: any suggestion of plagiarism, ghost written assessments or use of ‘sham referencing’ will be immediately reported for Academic Misconduct

Assessment 2 Part B

Your organisation and its Strategic Service Vision (Stages 3 & 4)

Length: up to 2250 words

Continuing on from your first assessment, Assessment 2 (Part B) will once again be structured around Heskett’s ‘strategic service vision’ framework although your focus will be specifically on stages three and four. Your role will be to develop an ‘operating strategy’ and discuss those relevant features of the ‘service delivery system’ for your created organisation.

In addition to the above, the following questions/tasks should be addressed:

  1. Productivity and quality are both key facets of the service process. Using the academic literature, explain how your organisation will balance the quality of its service whilst maximising its productivity.
  2. Construct a simple blueprint for one service process in your organisation.
  3. Select any two methods for managing capacity and explain how these could be used to better match supply and demand for a service offered by your organisation.
  4. Explain how your employees can affect the quality of service received by your external customer. What measurements could you use to gauge and manage the satisfaction of your employees?
  5. Choose any service quality model as described in Chapter 12, and analyse and apply the model to your own organisation.

Guidelines to your Strategic Service Vision report – Part B

Once again, this assessment is designed as an experiential learning exercise by having you apply theoretical concepts to a potential real-world situation (through your created organisation) in a critical manner.

The report should conform to the following format, and should also include a professionally laid out table of contents prior to the executive summary:

Executive summary [250 words]

An executive summary of a report is a summary that contains a statement of the report’s purpose and an overvieof the findings. Write in past tense (e.g. The purpose of this report was to). If an executive summary is well written the reader should be able to understand the main 


Executive Summary

In this report, the intention has been to gestate marketing management, human resources management and organisation management of Coastal Hotel. Being connected with the hospitality industry addressing the issues and accomplishment of customer expectations are the most prioritised features for the Company in order to be on a competitive edge and generate profitability. The key five segments discussed in this report would assess those expectations and the influence on them. The operational strategy has been focused on explaining the Company standardised products and the service deliver being aligned with following Levitt’s theory. The service proposal considers the operation as whole to identify the mail pitfalls points for being aware and two significant points holding an imperative bearing on consumers’ experiences. The service delivery system has been kept aligned with operational strategy and hence proposing the essential backbone of service delivery to assessing capacity and productivity management. By the end of this report, quality management and human resource capital management focus prominently on activities of workforce in enhancing delivery services and perceived quality for better performance. 


Operating strategy: In this report, the service concept that has been developed in Coastal Hotels is analysed. The report also focuses on the operation, marketing and human resource and their relation with the customer satisfaction of the hotel. Employee management and quality management as well as the service blueprint of the organisation has also been analysed in this report. The relation between all of the above-mentioned sections and how these sessions are affecting the customers in the hotel and their satisfaction rate are discussed in detail.

1. Operating strategy

According to the theory by Levitt, in order to maintain proper performance and quality in servicing customers in hospitality organisations proper procedures and approaches as well as specific operational guidelines are needed.  As the customer demand in this Hospital the organisations vary according to their expectations and needs, every organisation has to design a certain production line like Service Delivery, serving the customers in table properly, taking the order by customers at counter. Not only the exceptional items in the menu increases the customer satisfaction and customer retention, but also the proper service and consistent quality of performance from the service persons also helps to enhance the customer satisfaction rate (Rayna and Striukova, 2009). 

In terms of operation, Coastal Hotel is one of the full service operational hotels that provide food and lodging to their customers. Being located in the Northern Sydney sea area, this hotel provides quality wishes to the customers by providing them different kinds of rooms according to the budgets. The Tourist and the backpackers are always welcome in the hotel and in terms of payment instant room booking is available. Along with instant room booking true online, 10% discount and complimentary breakfast are offered to the customers. The customers are also provided with smart rooms and multi cuisine restaurant and food facility.20% discounts are allowed for the Australian customers and backpackers in order to enhance the Australian tourism. The social media marketing Technology has been used by the organisation in order to communicate with their potential and existing customers. In fact the social media has been used for not only the promotion but also taking the feedback from the customers regarding their service and operation (Baek et al. 2020). As the marketing and human resource workforce of the organisation are related to each other, the service providers have already set it as their objective to use the employees as their marketing tool. The employee behaviour and attitude plays a great role in customer satisfaction and mitigating customer need. The organisation has objectified it to train their employees in a way that they can be used as a part of their marketing process. 

2. Service blueprint

Figure 1: Service Blueprint of the Hotel

This blueprint stated above is the overview of the service provided by Coastal Hotel. The points that are marked in light red are highlighted as failing points. Here the customers experiences are affected at the time of service consumption. Mostly the front house staff that serve the customers interact with them. It is the responsibility of these employees to ensure that the customer demands can be mitigated and customer satisfaction can be ensured. However, two of the points according to the blueprint are food provided by other organisations and the verifying satisfaction of the customers. It has been found that mostly in these points the customers evaluate the value of the organisation and therefore their satisfaction rates are also based on these services provided by the hotel (Enz & Way 2016). Customer dissatisfaction can also be found from these points as the intangibility of the service. Verbal and nonverbal communication of the employees and customers help to verify the satisfaction rate as well as the identification of dissatisfaction can also be developed from here (Hummel & Murphy 2011).

On the other hand, in terms of food, the organisation should appoint expert and skilled staff who have the knowledge of multi cuisine foods and prepare them successfully. Sitting management and timing of providing food to the table should also be maintained as all of these are crucial to maintain customer satisfaction. Here also the verbal and nonverbal communication is crucial in order to train the staff, while hiring the new employees for kitchen and food. It is essential to communicate with them so that their problems and knowledge can be understood (Al-Ababneh 2016). On the other hand, it is required to provide free service briefing and post service feedback with them so that these employees can understand their level of work. Post service feedback will also help them to identify their limitations and therefore they can use these feedbacks in order to improve these fields.

3. The Service Delivery System

As a hospitality company, provisioning of unique services inspired their hotel ambience and food quality is considered as the high priority at the Coastal Hotel. In the next section, Coastal Hotel’s steps in service delivery has been presented in such a strategic way such that a visitor enters into the hotel premises and mesmerised with productivity and quality of services. 

  1. Accommodate and Greet-Visitors are directed to their hotel rooms, menus are provided and the first essential orders are noted.
  2. The Hotel staffs take the responsibility of checking the luggage room and even cross check with the logbook of left luggage.
  3. Soon after entering the Coastal Hotel, the receptionist explains all the specialties to be offered and entry is made.
  4. The waiters working at the Hotel takes orders proficiently when a mouthful of food or drink is left on their tables.
  5. The Coastal hotel next offers sparkling or still water to visitors
  6. In case there is any necessity of food and wine, the orders are instantaneously notified.
  7. After that, the ordered menus are served to the respective Hotel rooms according to their order.
  8. The room attendants are responsible for cleaning guestrooms soon after the customers leave the Hotel premises. 
  9. Moreover, during the period of such COVID-19 pandemic, the management in Coastal hotel has been strictly focused on proper sanitization.
  10. All the hotel staff comes to greet each visitor with a warm welcome.
  11. The Coastal Hotel is proficiently focused in leveraging technological innovations while communicating with other departments and hence tract completion of tasks accurately.

The points discussed above constructs the backbone of the excellent services offered by Coastal Hotel. In terms of time management, the entire workforce at Coastal Hotel better knows at which point each guestrooms will be further helping them with productivity, profitability and time. With certain effective steps, it can convincingly be ensured that each customer visiting the Hotel receives equal level of service standards and attention. The Hotel capacity do not rely on the number of customers that can be availed at the guestrooms however the competency of handling all incoming orders in a strategic and timely manner within the framework of the highlighted service delivery steps (Lovelock et al. 2015). Essentially, vacant guestrooms produce no revenue to the Hotel and the objective is set to fill Hotel rooms with visitors resulting in as much turnover as possible. Introduction of reservation systems would be facilitating ease of accessibility to customers taking reservations online. However, it holds much essentiality in balancing how many rooms are filled, number of customers lodged in checkouts at one time. 

4. Service employee management

In a service industry a business can flourish only when the employees are devoted and faithful to the company. Devotion towards the work is evident from the motivation towards the work and enthusiasm to improve the quality of service that is provided. Thus it is important on company’s part to keep the motivation high of the employees and keeping the retention rate low. Restaurant industry is not ideal as first workplace due to many reasons such as long hours, atypical schedules, less number of leave and so on which can have a serious impact on health. It also requires certain knowledge (e.g., knowledge about food and liquor) which is very crucial for restaurant industries. It is important for the management to recruit candidates with right attitude, as it a significant part for service industries and skills can be taught with time (Kandampully et al. 2015).  While recruiting for the Coastal Hotel certain personality traits are favoured in the employees which will allow to work as a team, considering the work as fun, and ability to handle stressful situations. 

In service industries which also include the restaurant industries service personnel are considered as the pillar that play a significant role looking after product value, competitive advantage, and customer satisfaction. Especially in case of restaurant industries the employees who work in the front desk are compelled to deliver high-contact services uninterruptedly which require multiple skillets and is extremely difficult and stressful at the same time. In order to attain organisational goals and sales goals keeping in mind customers’ satisfaction, handling customers’ aggression, maintaining a balance between professional life and personal life are the examples of few things that a frontline employee of a restaurant industry has to manage on a daily basis (Razalli 2020). So much of work pressure can trigger stress at any point of time which can affect the performance the employee.   

Because of the hectic schedule of the restaurant industries, it is essential to treat the team as a family, and knowing each employee closely. To maintain the workplace happiness several activities and staff gatherings can be arranged throughout the year, several plan of actions can be followed to motivate the employees on a daily basis (e.g., providing benefits, wages, performance incentives) and also long term opportunities (e.g., financial stability, growth opportunities).

5. Quality managemenmeasures

While globalisation has increased the opportunity it also increased the level of competition in the market. Thus it is important for any organization to create greater customer loyalty to their services and looking after the needs of customers. Evidence suggests that maintaining regular customer is more cost effective than targeting new customers. Because of the multi-faceted nature of the services it becomes often difficult to assess the quality of services. Five different dimensions of service quality have been identified by the concept of SERVQUAL: reliability, tangibles, responsiveness, empathy, and assurance. Multiple gaps between expected and perceived services were also been indicated by the gap model. In order to achieve customer satisfaction five key gaps were identified which needs to be taken care of by the management (Xu 2019). Fulfilling customers’ satisfaction was determined as top most priority factor for the Coastal Hotel. In order to achieve this service gap model will be used by Coastal Hotel to understand customers’ expectation and dimensions of SERVQUAL will be incorporated throughout the process. SERVQUAL Model of the Hotel

Figure 2: SERVQUAL Model of the Hotel 

  • Gap 1: In order to know the segments, extensive market research will be done. During operations several tools can be used to build customer profile (e.g., ResDiary) which will help in knowing the customer personally and targeting to deliver specific services keeping in mind each customer’s need. 
  • Gap 2: Providing training at regular intervals, mentoring, and supporting will help all the employees to become aware about the sequence of services and the service standards. In order to monitor the quality of service customer feedback surveys are conducted and regular feedback is also provided by the manager. Employees are rewarded with incentives on achieving targets (Lemy et al. 2019).   
  •  Gap 3: It become essential for the employee to identify how and which of their actions have an effect on customer’s satisfaction in order to assess all dimensions of the SERVQUAL. 
  • Gap 4: Transparent and achievable promises are made to do promotions and marketing, such as special occasions, like Valentine’s Day or setting different price point menus. 
  • Gap 5: From the viewpoint of the restaurant to understand about how the customers’ expectations have been influenced and to become aware about their perception of services, it is important to understand each customer on a personal level (Chen et al. 2018).   


The report has been proficiently generated addressing the key purpose of presenting the factors that affects customer satisfaction and experiences considering Coastal Hotel’s business operations, marketing management and human resource capital management. For the management it is inevitable to consider all components collectively as measurements in isolation with other factors would affect overall process. Thus, for understanding the influences on customer satisfaction by addressing their expectations is important through evaluation of all key aspects of operation, marketing and human capital management and the way each component impacts on the customers. The final service design allows the company to give best customer satisfaction. It is also clear from the SEVQUAL model that being transparent, customization, employee behaviour and employee expertise has extensive importance in terms of satisfying the customers in a restaurant. 

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