UNIT
12: HOSPITALITY OPERATIONS MANAGEMENT
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LO1
Understand the operational and economic characteristics of hospitality
operations Nature of hospitality
products and
services: product and service areas eg food and beverages, rooms division,
conference and banqueting; tangible and intangible elements; perishability;
marketing and sales; plant; equipment; supplies and commodities Patterns of
demand: patterns eg opening hours, seasonality, time of day/week, sociological
influences, healthy eating and drinking patterns, food and fashion trends,
accommodation trends, cultural, regional and ethnic influences, pricing and
economic factors, elasticity of demand Customer profile: characteristics eg
spending power, types of hospitality business, menu/accommodation range,
pricing considerations, expectations and requirements, the meal experience
Management issues: issues eg integrated planning and resourcing, business and
operational plans, staffing, finance, decision-making (gathering information
and data, analysing and evaluating data, reaching decisions, forecasting),
operating procedures and systems, control systems, technical and procedural
standards, service standards, quality systems, team working and team leading,
scheduling, training
LO2
Understand product development within hospitality environments
Stages in product development: stages to include market
research, market segmentation, idea evaluation, concept development, product
development, advertising objectives eg persuade, create desire, create
awareness, sell, increase market share, develop brand loyalty, customer
awareness Opportunities and constraints: types eg brand image, nutrition and
dietary requirements, disabled access and provision – accommodation facilities,
restaurant access; availability of resources (human, financial, physical),
standardisation, style of service, space utilisation Hospitality advertising:
businesses eg pubs, restaurants, hotels, conference centres; products, types of
media Merchandising objectives: objectives eg promote consumer/brand awareness,
encourage consumer/brand loyalty, develop product image; support materials eg
brochures, websites, posters, floor stands, tent cards, wall displays, table
displays, menus, flyers, vouchers, promotions, clothing (tee-shirts,
sweatshirts, baseball caps), free samples
LO3
Understand pricing and profitability concepts within hospitality operations
Methods of pricing: methods eg cost-oriented,
market-oriented; additional pricing considerations eg service charge, cover
charge, minimum charge Factors affecting revenue generation: factors eg sales
mix, customer turnover, average spending power (ASP) Factors affecting
profitability: factors eg labour intensity, shelf-life, elasticity of demand,
standardisation, portion-control
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UNIT
12: HOSPITALITY OPERATIONS MANAGEMENT
LO4
Be able to use appraisal techniques to analyse and improve operational
performance
Approaches to appraisal: techniques eg fundamentals of
appraisal, basis for effective operational appraisal, use of budgets, industry
norms, information analysis, developing qualitative and quantitative data,
analysing and evaluating data Appraising revenue, costs and profits: measures
eg financial measurement techniques, price and volume data, interpreting
calculations, price changes and inflation, comparing like-withlike and over
time, identifying and measuring costs, apportioning costs, sales mix analysis,
menu engineering, profitability measures, gross profit and gross profit
percentages, net profit and operating profit, stakeholder interests Appraising
the operation: measures eg appraising the product, appraising operational performance
measurement techniques, levels of consideration, when and how, quantitative,
qualitative evaluation, external comparisons, quality management Proposal for
action: proposals eg forecasting future business requirements, levels of
strategy, assessing organisational capability, strategic analysis and planning,
implementation and managing change
UNIT 12: HOSPITALITY OPERATIONS MANAGEMENT
Learning outcomes and assessment criteria
Learning outcomes
On successful completion of this unit a learner will:
LO1
Understand the operational and economic characteristics of hospitality
operations
Assessment criteria for pass
Assessment criteria for pass
The learner can:
1.1 analyse the nature of different hospitality product and
service areas
1.2 evaluate the different influences affecting patterns of
demand within hospitality operations
1.3 compare customer
profiles and their differing expectations and requirements in respect of
hospitality provision
1.4 analyse factors affecting average spending power in
hospitality businesses
LO2 Understand product development within hospitality environments
2.1 evaluate the key stages in product and service development applied within a hospitality operation
LO2 Understand product development within hospitality environments
2.1 evaluate the key stages in product and service development applied within a hospitality operation
2.2 analyse the
features which contribute towards the customers’ perception of products and services
2.3 assess the opportunities and constraints affecting
product and service development within a hospitality environment
2.4 evaluate different merchandising opportunities for
hospitality products and services
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LO3
Understand pricing and profitability concepts within hospitality operations
3.1 evaluate different methods of pricing taking into account additional pricing considerations
3.1 evaluate different methods of pricing taking into account additional pricing considerations
3.2 assess the
factors which affect revenue generation and profitability in hospitality
operations
LO4
Be able to use appraisal techniques to analyse and improve operational
performance
4.1 apply different performance measures and appraisal
techniques to individual aspects of hospitality operations, the product and the
whole operation
4.2 determine the
effectiveness of different quantitative and qualitative appraisal techniques
and their application to hospitality operations
4.3 apply approaches
to business analysis, evaluation and planning appropriate to hospitality
operations, making proposals for action
UNIT
12: HOSPITALITY OPERATIONS MANAGEMENT
Guidance
Links
This unit can be linked successfully with:
Links
This unit can be linked successfully with:
Unit 1: The Contemporary Hospitality Industry Unit 2:
Finance in the Hospitality Industry Unit 5: Food and Beverage Operations
Management Unit 6: Rooms Division Operations Management Unit 8: Marketing in
Hospitality Unit 10: Work-based Experience.This unit links to the following
Management NVQ units:
B1: Develop and implement operational plans for your area of
responsibility
B2: Map the environment in which your organisation operates
B8: Ensure compliance
with legal, regulatory, ethical and social requirements
B9: Develop the
culture of your organisation
B10: Manage risk
B11: Promote diversity in your area of responsibility
C1: Encourage
innovation in your team
C2: Encourage innovation in your area of responsibility
C3: Encourage innovation in your organisation
E1: Manage a budget
E4: Promote the use of technology within your organisation
F4: Develop and review a framework for marketing
F8: Work with others to improve customer service
F9: Build your
organisation’s understanding of its market and customers
F10: Develop a
customer focused organisation
F11: Manage the achievement of customer satisfaction
F12: Improve organisational performance.
UNIT
12: HOSPITALITY OPERATIONS MANAGEMENT
Essential requirements
Tutors must ensure that learners understand the separation
between operational and management issues. The relevance of this unit will be
greatly improved if it is delivered following a period of industrial work
experience where learners have worked in a food and beverage environment.
Tutors must maximise the contribution made by learners based on their own
experiences in food and beverage operations. This will add relevance and
vocational realism to group discussions and may contribute to a wide range of
issues, enabling learners to focus on matters which regularly face managers in
industry.
Employer engagement and vocational contexts
Tutors must ensure that learners have adequate access to
industry, either through visits or through presentations by visiting speakers,
to support the development of knowledge and understanding through ‘theory in
practice’. It will be useful for learners to link with an individual commercial
operation, and use that business as a context in which to assess current
practice, apply theory and observe in a reflective way. These individual
experiences can then be fed back into a group-learning context.
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