CASE STUDY

(GROUP 5)
OPERATIONS OBJECTIVES AT THE PENANG MUTIARA

OPERATIONS OBJECTIVES AT THE PENANG MUTIARA

Questions:
1. Describe how you think Wernie will:
a. Make sure that the way he manages the hotel is appropriate to the way It
competes for business;

b. Implement any change in strategy;

c. Develop his operation so that it drives the long term strategy of the hotel.
2. What questions might Wernie ask to judge whether his operation is a stage 1,
stage 2, stage 3, or stage 4 operation on Hayes and Wheelwrights scale of
excellence?
3. The case describes how quality, speed, dependability, and cost impact on the
hotels external customers. Explain how each of these performance objectives
might have internal benefits.
Problem Statement:
How can Penang Mutiara hotel improve the operations and sustain the
competitiveness so they can give total customer satisfaction to their guests and be a
leading hotel in Southeast Asia?
Analysis and Evaluation:
Penang Mutiara Hotel is located at Teluk Pahang which is prime beach front.
Wernie always make sure that his guests will put a smile on their face after their stay in
his hotel. This will makes them being top of the market since their visitors have their
vacation over satisfied. Being on this strategy, competitor will have a hard time to
compete with their hotel. Wernie will implement any changes in strategy by always
looking and searching for innovative and thinking for total customers satisfaction.
Through continuous improvement, as a long term strategy of the hotel.
Wernie may ask if his operation is of stage 1 by knowing the worst problems and
correcting it while adopting the best practices as judgement for stage 2. Linking strategy
with operatioons must be asked for stage 3 and giving an operations advantage as
stage 4.
Quality, speed, dependability and cost will give them internal benefits because as their
customers returns again and again, their profit will eventually grew, their staff will be
motivated to work harder because of the feedback not even told by the guests, but by
the fact that they are returning for vacation will be an indication that their satisfaction
have met.

Solution to the Problem:

Penang Mutiara hotel being top of the market hotel in Malaysia, still in need of
finding innovative ways to satisfy more their clients. Although what they are doing is
already satisfying to their guests,they still need to improve for the best that they can
offer to their clients. They must strengthen their marketing and operations strategies to

increase their market shares. Knowing and reviewing new service standards, conduct
regular focus group studies, to predict future customer requirements.