Case Study Hotel Telek Benoe

Case Study Hotel Telek Benoe



Case Study Hotel Telek Benoe


            Hotel Telek Benoe is among the hotels that were recommended to tourists and people who desired to take a holiday on the Indonesian Island. Its popularity as a three star hotel and its fair price was reason enough for Wendy and Peter to choose the hotel. However, the couple was surprised from the moment they booked a reservation at the hotel. The couple was determined to enjoy their stay from the start and would tell their friends about the holiday. This was not the case. The couple was exposed to various issues that they did not expect. Hotel Telek Benoe was different from the information that was provided on their website, as there were various operational and management issues that arose. From communication to language issues, the couple tried to match the challenges but at some point proved futile. After a close analysis of the Hotel Telek Benoe, it was evident that operational issues were present in the business. To some extent, the staff was incompetent and the financial aspects questionable. Therefore, evaluating the theoretical issues present in Hotel Telek Benoe as well as the corporate social responsibility issues will prove effective in forming a recommendation for improved operational systems in the hotel.


Problems with the Current Operations

            Management Operations Issues

            Operations management involves the process of understanding, designing and managing the activities of a business (Collier & Evans, 2008). Any management operation activity should be well designed, include the operational procedures and ensure that there is an improvement in the productive system of the company. Operational activities tend to transform input to desirable output through creating elevated values. The case of Hotel Telek Benoe has displayed various operational issues experienced by the customers as well as the staff. The role of the operations management team is to understand and analyze the previous and current actions related to the business and come up with procedures that will counter such issues in the future. The first operational management issue that was visible in the hotel occurred when the booking information failed to highlight that it needs to pick people from different hotels before arriving at Hotel Telek Benoe. Similarly, the receptionist failed to understand English therefore communication was impaired.

            The operational system in most hotels includes a reception station on a 24-hour watch, as there may be clients at any point. However, contrary to the expectations of the couple, there was no person at the reception as they had gone on off. They were requested to proceed with the booking procedures the following day. With operations management, the transformational process needs to be smooth and structural. This was not the case as in Hotel Telek Benoe. Incentives within the hotel compound and vicinity were limited and operated during certain hours of the day (Barnes, 2008). It applied when the couple desired to call the hotel reception to inform them of their arrival. Considering that, the transformational process applies to primary services that do not produce a physical product, the hotel failed at ensuring a hasty and smooth shift for the couple. They had to wait close to an hour before they could access their rooms. Hotel Telek Benoe failed in ascertaining the value of their customers.

            Quality Issues

            Quality is among the factors that consumers desire as they purchase a product or pursue a service. In such cases, the production process and standards of service should be able to meet the customer requirements through satisfaction. Quality is the level of excellence that a company aims at achieving (Russell & Taylor, 2009). This is done by ensuring wholeness in the characteristics and features that counter deficiencies in customer needs. Hotel Telek Benoe as highlighted in the Bali Tourism Board website was comprised of quality service through incentives such as modern clean rooms. In respect to the quality requirements for consumers, the couple expected the hotel to match its functionality through fitness of use, the design qualities that include the characteristics into a product through diverse dimensions of quality. For instance, Hotel Telek Benoe failed in ensuring the quality of the supply chain services of a three star hotel in terms of cleanliness and lighting equipment.

            In terms of quality conformance, the hotel failed to ensure that the quality of cleanliness is ensured at all times. Although the couple had checked in earlier than the couple had expected, the hotel was liable for checking them into a hotel room that did not conform to the design specification. Cleanliness and tidiness was a core competence factor that the hotel in such a supply chain level had to maintain. Inappropriate environments place the clients in danger of contracting health related issues and other diseases. The wet towels in the “emergency room” would be a breeding ground for mosquitoes that would transit malaria pathogens. Similarly, Hotel Telek Benoe failed to possess the facilities that were expected from hotels in such a chain. The room was old and worn as Wendy notes. In terms of performance and reliability, the room would suffice as usable when presented with emergencies but it would be unusable in the long term for hotel staff.

            Strategy Measurement Issues

            Aligning corporate and strategic operations ensures that a business accrues maximum profits through customer satisfaction (Neely, 2007). The corporate strategy takes into account the marketing, operational and financial aspects of any business. The corporate objectives of any business are to ensure domination, growth, survival, return on investment and social welfare. However, Hotel Telek Benoe fails at ensuring that their objectives are met by controlling the operational factors. The quality designs fail to meet the required standards for the supply chain classification. The employees fail to manage the operations in the “emergency room” showing the level of incompetence and inconsideration they have for their own safety. It is impossible to place total trust in people who cannot ensure personal safety. Once clients are exposed to such conditions, they are less likely to book reservation assuming that the issue has been experienced severally. This translates negatively to the growth of Hotel Telek Benoe.

            Hotel Telek Benoe fails to ensure operational excellence as it offers services to its esteemed customers. This is evident as the couple is dropped by the bus close to the hospital location. The single light bulb at the front of the hotel shows that the choice of location does not have the necessary equipment. From the welcoming point, it is evident that the employees were not trained to handle emergencies as well as to issue quality service. The room that is allocated to the couple is allegedly cleaned to the best of the duty manager contrary to the evidence present. Goods and services qualify to win orders based on their low price and their efficient marketing skills (Chiarini, 2015). However, such issues are covered up by unrealistic services during situational experiences of most customers. It is possible that Hotel Telek Benoe spends less on maintenance and inventory control to prevent the business from experiencing deficits.

            Product Design Issues

            An effective design procedure is likely to ensure a business remains competitive in the market. Uniqueness in terms of handling clients as well as availing the required services is a step towards attaining product design. However, Hotel Telek Benoe fails to match the standards as expected. This is seen through the booking procedures exposed to the couple. Initially as they booked a reservation through the website, it was much easier and assuring that once they got to the hotel, adapting would be easier. This was different once they were relocating to their assigned rooms. The couple had to fill out various forms issued by the hotel management as the pens made the task much harder. According to the design process, customer requirements and procures need to be met in the simplest and least costly manner. Similarly, the time required to shift rooms needed to be shorter considering they had arrived early. The hotel was unable to account for the deteriorating product design.

            Product design creates value for the customer. It gives a new perspective to the client that the business is concerned with their welfare (Shim & Siegel, 1999). The appearance of the hotel procedures was deceptive and if the couple were aware of such events, they would have preferred a different hotel that matches the design process. Hotel Telek Benoe failed to specify the material procedures that would be required and any dimensions of tolerance that would suffice (Das, 2016). If they had explained to the couple before the procedure, the couple would be at a better position of understanding. Evidently, the information on the site was meant to attract clients and assure them that the hotel is capable of handling as many customers. Hotel Telek Benoe failed to conform to the value analysis conditions in applying technology. Unnecessary features in the website link that required customers to include their method of payment such as cash or credit. The couple was issued with similar forms during their second booking. Hotel Telek Benoe also failed in the product design in terms of robustness that will help maintain the serene condition of the rooms regardless of extreme conditions.

            Service Design Issues

            The service design process involves a strategic guideline that assists employees and businesses to offer quality services to their customers. For a service to suffice as reimbursable, they need to be decentralized and dispersed. They are intangible and if ignored are perishable (Macintyre, Parry & Angelis, 2011). Although serviced do not have to be direct, they affect the client extensively. The service design process involves evaluating the concept of service through identifying the target market. In this case, Hotel Telek Benoe needs to consider the quality of service offered to the clients. The duty managers display inexperience when they randomly leave customer passports lying on a table displaying people’s information. The service package offered by the attendants was poorly done but not as bad as the emergency room that they slept in. Although the bathroom was cleaned, other areas were left undone.

            For the service design specifications in terms of quality to be complete, the services had to meet the performance desires in terms of requirements for the clients. This is achievable by catering for the customer requirements and meeting the expectations. This is evident from an instance when the couple went to have breakfast and the menu was inscribed in an Indonesian language. The couple expected that Hotel Telek Benoe being a popular hosting center for tourists would include English in their menu. Although the waiters and hotel attendees translated the menu for the couple, they took a rather long time. When the food arrived, it did not match the description given by the attendees. This infuriated the couple. It displays a situation where the hotel failed in meeting the service requirements and expectations of the clients (Wild, 1990). The hotel also failed to serve customers who had booked a room and arrived earlier at the hotel premises through a first come first serve system.

            Processes Technology Issues

            Process planning involves the structural approach for the physical provision of services to consumers. It converts physical procedures and structures into practical instructions that can be executed (Lowson, 2003). Different processes are allocated to various customers based on the services they pay for. Unique services are offered to people who can afford the costly incentives such as privacy and additional features. For instance, Wendy could not access the internet services unless she logs into the hotel portal and pay for it. This is contrary to the information provided during the booking process in the website highlighting the availability of Wi-Fi services. Hotel Telek Benoe also failed to observe the principles of the redesigning process that is meant to remove waste, simplify and consolidate such activities. Their inability to create value from processes impaired their success. Similarly, as much as they used digital platforms to attract clients, the hotel failed to capture recorded information through digital platforms at the sources and manipulate it through the hotel systems. Most of their communication technology does not work and leaves the clients at a crisis (Loader & Biggs, 2002).

Corporate Social Responsibility Issues

            Corporate social responsibility issues are regulatory factors that are intergraded into the business model to measure the performance of the business (Idowu & Leal, 2009). It ensures that the business conforms to the government laws, ethical standards and the social norms surrounding the business. It covers diverse issues not limited to compliance but the social wellbeing of the people (O’Riordan, Zmuda & Heinemann, 2015). Purposefully, corporate social responsibility aims at improving the relationship between potential clients and the business. Hotel Telek Benoe fails to ensure corporate social responsibility when it comes to the condition of the hotel rooms, which are in bad shape. The couple displays questionable feelings once they interact with the general manager who was explaining on the procedures carried out in case a dignitary was staying in that hotel. The hotel standards were contrary to what the manager was explaining. Similarly, as much as the manager highlighted that the employees had a checklist it was evident that they fail in their duties. The hotel staff was poorly trained on the importance of ethical training in terms of service delivery. Hotel Telek Benoe failed in creating a shared value on their part where they listened to the complaints of their clients and implement the necessary change.


            Valuing clients is among the major factors that Hotel Telek Benoe needs to consider (Young, 2009). Once the customers are satisfied, they are ore likely to come back arguing on the benefits and relevant services they received. Hotel Telek Benoe needs to invest in ensuring quality services through their staff such as ensuring the hotel meets the expectations of the supply chain class. This is done through concentrating on the desires of the clients such as cleanliness, personal service designs and product quality, which includes food. Corporate responsibility issues should not be present in such businesses, as their uniqueness is desired across various levels. Setting policies on corporate social responsibility with corresponding consequences will enable employees conform to the desired standards (Sullivan, 2011). Quality at each level of production and service needs to be monitored by the superiors to ensure they meet the expectations of the clients.


            This analysis on Hotel Telek Benoe provides extensive information regarding the operational issues that are evident within the business process. Understanding the scope of effect that such factors pose to the business is likely to enable Hotel Telek Benoe to formulate strategies that are aimed at ensuring the success in business as well as maintain its esteemed clients. Quality at each level is desirable and needs to be strategically incorporated into product delivery, service, strategy management and process technology. The recommendations will prove effective in averting impending issues that Hotel Telek Benoe fails to comprehend. They will help the business value their customers more than they value profits.


            Operational management issues exist at each level of production and service delivery. The hotel industry is among the most sensitive sectors that display high affinity towards operational management. Considering the case of Hotel Telek Benoe, strategic operations management will help a business maintain a socially responsible relationship with its clients that translates to increased profits. Similarly, strategic operations will enable the business avoid any additional costs associated with poor strategies.


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Barnes, D. (2008). Operations management: An international perspective. London: Thomson.

Chiarini, A. (2015). Sustainable operations management: Advances in strategy and methodology. Cham: Springer.

Collier, D. A., & Evans, J. R. (2008). Operations management. Mason, OH: South-Western College Publishers.

Das, A. (2016). An introduction to operations management: The joy of operations. New York, NY : Routledge.Bottom of Form

Idowu, S. O., & Leal, F. W. (2009). Global Practices of Corporate Social Responsibility. Berlin, Heidelberg: Springer Berlin Heidelberg.

Loader, D., & Biggs, G. (2002). Managing technology in the operations function. Oxford: Butterworth-Heinemann.Bottom of Form

Lowson, R. H. (2003). Strategic operations management: The new competitive advantage. London: Routledge.Bottom of Form

Macintyre, M., Parry, G., & Angelis, J. (2011). Service Design and Delivery. Boston, MA: Springer Science and Business Media, LLC.

Neely, A. D. (2007). Business performance measurement: Unifying theories and integrating practice. Cambridge: Cambridge University Press.

O’Riordan, L., Zmuda, P., & Heinemann, S. (2015). New perspectives on corporate social responsibility. Wiesbaden: Springer Gabler.

Russell, R. S., & Taylor, B. W. (2009). Operations management: Creating value along the supply chain. Hoboken, NJ.

Shim, J. K., & Siegel, J. G. (1999). Operations management. Hauppauge, NY: Barron’s Educational Series.

Sullivan, R. (2011). Valuing Corporate Responsibility:How Do Investors Really Use Corporate Corporate Responsibility Information. Greenleaf Publishing Limited.

Wild, R. (1990). Essentials of production and operations management. London: Cassell.

Young, S. T. (2009). Essentials of operations management. Thousand Oaks: Sage Publications.

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