Managing Quality

Case Study for Chapter 6: Managing Quality
Belaire Casino Hotel
The Belaire Casino Hotel is a 50-room hotel and casino in the Nyanga highlands of east-central Zimbabwe. Located 2700-kilometers and three hours drive from the capital, Harare, the hotel serves as a conference center and destination resort. Its facilities include two sizeable conference rooms, two restaurants, a billiard room, a swimming pool, lighted tennis courts, riding stables, a sauna, a fishing pond, slot machines, roulette, blackjack, etc. Single rooms with breakfast are provided for 44 Zimbabwe dollars per day. The main restaurant is open all week and serves a set lunch and dinner, while a small a la carte menu of light food is available in the bar, the common rooms and on the patio. During the weekends the second restaurant is opened with an a la carte menu.
Most guests come by car from within Zimbabwe and from South Africa via Harare. The area includes several hotels without casinos, Mt. Inyanga (7,500 feet) and the surrounding national park, lakes stocked with trout, golf courses, and many interesting rock formations and scenic vistas. The area is a popular summer resort with a number of private cottages nearby. Because of the long history of farming and cattle-raising in the area, there is relatively little evidence of wild game. Because of the elevation, the winters are quite cold.
Security at the Belaire is not a problem, despite being only 30 kilometers from the on-and-off fighting in Mozambique. Most of the staff live in the neighboring villages and walk to work. Underemployment in the areas is heavy and jobs at the hotel prized. However, the staff seems to have frequent difficulty remembering who ordered what at a table, mixes up the laundry on occasion, and occasionally writes down the wrong number for an international phone call. The manager, Mr. Tracy Andrews, 28, who had arrived six months before, posts on the bulletin board in the main hallway next to the front desk, the tabulation of client surveys and the listing of client comments (see Exhibit 1).
The Belaire staff is friendly and courteous to all but the most boorish guests. The food is of lesser quality and style than the Troutbeck Inn, the standard of service in the area, which does not have a casino, but does have a golf course. The typical room contains two single beds side-by-side to serve as a double bed, a desk, two small armchairs, a large storage closet, a coffee table, a telephone, a “radio” in the nightstand playing taped music, and a separate bath which is functional, but spartan. Each guest is asked the hour at which they wished to be awakened and at that hour, a waiter arrives at their room door with their preference of tea or coffee. International telephone calls are usually completed in 15 minutes, while calls to Harare often take several hours to place. Power outages are infrequent.
The betting habits of the guests are quite varied, with the players at the roulette table wagering anything from 50¢ to thousand dollar chips. A sign outside the casino indicates that no jeans are allowed. Mr. Andrews said that the policy is not usually enforced with women, but is with men. His experience at another hotel had been that men who wore jeans to the casino tended to be more “rowdy, heavy-drinking and abusive of the croupiers.” The advertising brochure for the hotel showed happy guests in the casino in black tie and evening dresses, but seldom does an actual guest wear such formal dress. A sign over the bar entrance said “smart casual only after 7 p.m.” but is not enforced. A similar sign at the Troutbeck Hotel appears to have the same effect, although most of the diners at the Troutbeck’s restaurant wear coats and ties, something seldom seen at the Belaire Casino’s restaurant. The kitchens at both hotels close at 9 p.m., but the bar closes at 11 p.m. and the casino even later. The small gift shop with postcards, crafts, toiletry essentials, and souvenir clothing is open from 9 a.m. to 12 noon and 2 to 5 p.m. Limited room service is available.
The Belaire Casino Hotel is owned by a well-known chain of medium-priced hotels in Zimbabwe licensed to use an international trademark, but it does not usually advertise itself as such. As Mr. Andrews says, “We are part of the chain and we aren’t. So long as our bottom line is all right, they leave us alone.”

Exhibit 1:

Comments/Suggestions January — March, 2003
1. Does re-furbishment have to start at 7:00 AM?
2. Well done — we will be back.
3. Horses have improved — so has the hotel — thank you.
4. How about a booklet on how to gamble?
5. Putt Putt fun but, carpets need replacing.
6. Reception very helpful.
7. Mackingtoshes should be available for hire.
8. Some waiters very slow.
9. Bread stale on sandwiches — ok at dinner.
10. Your night cleaner talks to himself.
11. Thanks to casino — a free holiday.
12. Staff and management could not have been more helpful.
13. Keep it up Belaire.
14. Cut the grass on the croquet lawn.
15. A clean hotel — well done.
16. See you next year.
17. No water on arrival.
18. Noise from the kitchen disturbing.
19. We enjoyed our stay — thank you.
20. Not sufficient shelves or drawers in cupboard.
21. A separate menu for children.
22. Noise bad due to doors being slammed otherwise everything was good.
23. Nice stay we hope to come back for our next honeymoon.
24. Coats hooks required — noise around 2:30 AM.
25. Look forward to winning another holiday voucher.
26. Excellent facilities for all ages.
27. Crockery could be a bit cleaner.
28. The best — keep it up.
29. Food of a poor standard — unappetizing.
30. No channel 2 — no bedside drawers —lunch unimaginative.
31. Service slow — waiters making mistakes with orders.
32. Rooms have improved however food still poor.
33. We are an elderly couple and everyone made our stay very enjoyable.
34. It would be a good idea to put a rubber mat in the bathroom.
35. Friendly staff — wider selection of video games.
36. We are impressed with the standard of the hotel.
37. Waiters over worked to few to cope with guests.
38. Music too repetitive.
39. Room service is so good please keep it up.
40. In all a super weekend.
41. Being vegetarian more variety please.
42. Teaspoon problem.
43. Too much noise early in the morning.
44. Carpet in ladies room needs attention — music enjoyable.
45. We are happy to be your guests.
46. No bible — bath towels funny smell.
47. Very satisfied in all aspects.
48. A very pleasant stay.
49. Once again a pleasant night at Belaire.
50. Telephone directory is outdated.
51. Service was superb.
52. You get full marks — keep it up.
53. Much preferred previous furnishings to new one.
54. We were driven from the lovely sun porch by the unrequested music.
55. I can’t find any complaints.
56. Generally very good.
57. Compliments to chief on outstanding food.
58. Bathroom towels rather off white.
59. Infuriated by being told no entrance into casino wearing one hundred & twenty dollar jeans.
60. Housekeeping was one of the best.
61. Very good and courteous service — well run hotel.
62. Ladies powder room needs attention — however we congratulate you on a very pleasant stay.
63. Since my last visit — 2 yrs ago — standards have improved.
64. Most quiet efficient unobtrusive service.
65. Hotel amenities are marvelous — staff most helpful.
66. Please provide a variety of music.
67. Was insulted by management in casino — future visits to Nyanga will be at Troutbeck.
68. Taps on basin seem to be leaking — service of a high standard.
69. Did not receive tea.
70. Ladies powder room needs more regular checking — towel very wet.
71. Never any double beds — 1 ply loo paper low standard — noise problem however, cheer up, will be back again.
72. Good, but telephone link with Harare is not so hot.
73. The staff is very well trained and polite.
74. Your fountain is too noisy at two in the morning.
75. Our meal in the topside was excellent.
76. Softer pillows please.
77. One waiter in the residents lounge was hopeless.
78. No Burnetts gin in the pub.
79. Please vary taped music.
80. Your P.R.O. deserves compliments on continual effort and attention.
81. I would like some tea in the morning.
82. The bedrooms are pretty and beds comfortable.
83. Are breakfast cereals compulsory?
84. Wake up call never came.
85. Insufficient light in bedroom.
86. Cupboard had to be dusted.
87. Faster waiter service all round — otherwise pleasant — thank you.
88. Bedspreads and curtains should match, this would avoid the “bitty” look which is much heard.
89. Our sincere gratitude to Mr Madumasuma (front office manager) who was most understanding.
90. We had a wonderful time and will be back.
91. The ducks on the dam are very friendly.
92. Greater emphasis on reserving facilities for residents.
93. Ladies and gents toilets need more attention over week-ends.
94. Keep it up — a great hotel with great people.
95. Kindly change room service menu prices.
96. Reported telephone out of order — no response.
97. The size of the food portions implies that I am gross.
98. Superb hotel — expertly managed — a real pleasure.
99. All staff were exceptionally courteous-many thanks
100. The dinnertime of 6:30 is too late for children.
101. Staff and management could not have been more helpful.
102. Keep it up Belaire.
103. Cut the grass on the croquet lawn.
104. A clean hotel — well done.
105. See you next year.
106. No water on arrival.
107. Noise from the kitchen disturbing.
108. Too many moths at night.
DISCUSSION QUESTIONS
1. What tools can the Belaire apply to address issues of quality?
2. Conduct an analysis of both sets of data.
3. What is your recommendation to Mr. Andrews?

Chapter 8 Case Study
“Where to locate Southwestern University new stadium.”

Internet Case Study for Chapter 8: Location Strategies
Southwestern University’s Location Decision
With the steady growth in attendance at Saturday home football games, Southwestern University’s president, Dr. Joel Wisner, had reached a decision. The existing stadium, with seating capacity of 54,000, simply would not suffice. Forecasts showed increasing interest in the program [see Southwestern University: (B) in Chapter 4], and complaints by loyal fans and big-money athletic club boosters revealed the need for premium-class seating and luxury amenities not found in a 1950s-era stadium [see Southwestern University: (C) in Chapter 6].
But the choice of what to do was anything but clear to President Wisner. His vice president of development, Leslie Gardner, had presented three options: (1) expand the existing stadium to 75,000 seats, adding numerous luxury skyboxes and upgrading most of the yardline seats to include comfortable backings; (2) build a brand-new stadium three miles from campus on land, worth about $3 million, donated by a team booster; and (3) signing a 10-year contract with the Dallas Cowboys football team to rent their stadium, 28 miles away, for a fee of $200,000 per game.
Each of these options had clear benefits–yet each had at least one very strong negative as well. Expanding the current facility carried a $12 million price tag, with an annual fixed cost of about $1 million and with a variable cost of about $1 per attendee. If the job were not completed in the nine-month off-period between seasons, the team would be left without a home field on which to play in 2004. This meant reneging on contract dates with powerhouse teams that were signed some 3 to 4 years earlier. Contract violations are not a matter taken lightly in the NCAA or the Big Eleven Football Conference.
Building a brand-new stadium off-campus would yield a plush, state-of-the-art facility, but it had to be named after the donor of the land. It also meant a huge fundraising drive on the order of $40 million by President Wisner, plus likely bond insurance placing a 20-year debt burden on the college’s balance sheet. He tentatively concluded that fixed cost would be in the neighborhood of $5 million per year and variable cost about $2 per attendee.
The third option had definite advantages from the perspective of many, if not most, of the fans who attended the games. A large number already lived in the Dallas—Fort Worth area and would be spared the long commute and horrible traffic jams that always seemed to occur in Stephenville on game days. Clearly, however, students would be unhappy and buses would have to be provided by SWU, for free, to bring students from Stephenville to Dallas. While the actual noted price of $200,000 per game seemed high on the surface, the $1 million per season (there are five home games a year) was a drop in the bucket compared to the other options. However, the Dean of Students said the school should expect the bus transportation to be about $10 for each of the 15,000 student tickets sold for each game.
Prior to asking the VP of finance to do the detailed analysis, President Wisner asked Gardner to survey three groups that held personal stakes in the project: students, booster club members, and college faculty/staff. Selecting 50 people at random in each of these groups, Gardner asked them to “grade” each possible location on five factors. Using letter grades, the results are shown in the table below.
Factors Existing Sites New Site 3 Miles from Campus Dallas Cowboys Facility
________________________________________
Students’ Ratings of Locations
Convenience A B F
Guaranteed Availability
for Next Season C D A
Comfort B A A
Cost A D B
National Image D B B

Boosters’ Ratings of Locations
Convenience D D A
Guaranteed Availability
for Next Season B C A
Comfort C B A
Cost A C A
National Image C C B

College Faculty/Staff Ratings of Locations
Convenience B C D
Guaranteed Availability
for Next Season A C A
Comfort C A B
Cost A D B
National Image B B C
Gardner decided to give equal weight to the grading of each of these groups. But the administration did not equally weigh the five factors. “Cost” and “guaranteed availability” were rated twice as important as “convenience,” which in turn was ranked twice as important as “comfort” and “national image.”
DISCUSSION QUESTIONS
1. Are the factors Gardner selected for evaluation reasonable and complete? What others might be included?
2. Prepare a crossover chart based on the information provided.
3. Based first on your analysis of the survey data, and then on your analysis of the crossover charts, provide a justification for each location. Provide a complete list of reasons for not selecting each of the three sites.
4. Which location do you recommend, and why?

 

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