Service Package for the Aboriginal Hostels Limited - Case Study Example

Running Header: Aboriginal Hostels Limited (AHL) Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission: Table of contents Executive summary.........................................................................................................................3 “Service Package” for the Aboriginal Hostels Limited..................................................................4 Competitive strategies…………………………………………………………………………….5 How home away from home is achieved…………………………………………………………6 How the residents become co-producers in YMPH………………………………………………7 Service Recovery Framework..........................................................................................................7 Areas of improvement at AHL........................................................................................................8 References........................................................................................................................................9 Executive summary This study describes AHL Company which is owned by the Commonwealth and operates under the Australian Government’s Department of Families, Housing, Community Services and Indigenous Affairs. AHL has eight regional offices around Australia with the head offices in Canberra. These offices are headed by independent non-executive board of Directors. It employs more than 500 people and provides about 8,500 meals daily and 2900 beds every night in Australia. The Company provides various service packages such as the provision of supporting facility which include a plane for travelling. The other service is the facilitation of goods to customers and information regarding medical services or the environment. AHL also provides both explicit and implicit services to indigenous Australians. The Company above has effectively attained its competitive advantage by the use of Michael Porter’s differentiation strategy of competitiveness. This is because the company has been involved in making intangible services more tangible for example where it provides accommodation to people with special needs and enabling them to live independent lives in the community. AHL is a company that intends to provide its customers with a home away from home in terms of services and keeping the environment conducive. This is where all hostels allow families and other visitors to visit with no restrictions. The company also provide both indoor and outdoor recreational areas to make their customers feel at home. One of the recommendations for AHL is that it should improve management of its demand and capacity. The second recommendation is that AHL should try to reduce some of the Directors in the board to about five; one Director should manage two regional offices. The final recommendation is that AHL should aim at attracting foreigners who bring in new ideas and development. “Service Package” for the Aboriginal Hostels Limited The service package provided by Aboriginal Hostels includes a bundle of goods and services that comprise of information provided by the environment around the Hostels. There are five features showing the services provision of the Hostels. One of the feature is the provision of supporting facilities for example in order to travel to the hostels, a plane is needed which is provided by the AHL. Stipanuk (2006) describes that residents are provided with internet services are allowed to book flights or search for important information from the internet for example about the medical services provided. AHL service package also include enabling people to acquire necessary goods and services. Provision of a variety of services is an important aspect as it attracts more customers and retains them (Stipanuk 2006). The service package of Aboriginal Hostels Limited also consists of various sections which include provision of accommodation to indigenous Australians who needed a place to live when either travelling, due to education purposes, medical and employment purposes. The other services provides by Aboriginal Hostels include provision of accommodation to homeless people facing life circumstances. Explicit services are provided by AHL for example people being accommodated there for medical attention such as renal diseases where patients feel relaxed once the pain is gone. Implicit services provided by AHL include acquires the status of a degree to people being accommodated for education purposes. Indigenous youths are also provided with implicit services as they are encouraged to learn life skills such as cooking, cleaning and other domestic activities. Competitive strategies Michael Porter used three competitive strategies that can be used by businesses so as to increase competitive advantage. These include cost leadership competitive strategy involve where a business decides to be a low cost producer in a particular industry. The cost advantages results from economies of scale, use of modified technology, easy access to raw materials and other depending factors. Davis and de Roos (2006) describes that companies being able to attain an overall cost leadership perform well in the market and become market leaders. In the above study, this strategy has been applied for example where AHL provides low cost services to its customers, provision of standardized custom service, reduction of personal element for example in the delivery of services and finally in the reduction of network costs for example where residents are provided with internet services and they can even book their flights. According to Porter (2001) the other strategy used is the differentiation strategy which shows how firms seek to differentiate themselves in the industry. This strategy involves being unique by selecting one attributes that interests many buyers and the business positions itself in the market in a way that it is capable of meeting the needs of its buyers. This uniqueness enables the business to significantly gain premium price. It also involves customization of standard products provided, with reduced risk. Personal training and control of quality are other attributes that may interest buyers to purchase from a certain business (Ransley and Ingram 2004). The focus strategy is also used by a competitive business in an industry and it involves a situation where a firm selects a segment or target group in the industry and focus on serving them exclusively. This strategy is commonly used where there in a narrow competitive scope in the market (Gomez-Mejia et al. 2008). In reference to the operation of AHL the strategy that suit most is the differentiation strategy. This is because AHL has significantly differentiated its services by proving intangible services tangible for example through the five services provided. AHL has also modified the products they provide which is not the case for other hostels in the industry (Jain et al. 2008, p. 27). We find that AHL provides not only accommodation for the homeless and people who need to live away from home due to various purposes but the firm also provides accommodations for specific needs. The hostel also caters for the homeless young people by enabling them to develop various skills to enable them live independently. The hostel has also differentiated its services by providing home for the aged, people requiring rehabilitation and young people aged between 16-24 years. AHL is also able to control its quality services for example by encouraging the provision of feedback with respect to the provision of services and the feedback is anonymous but reviewed for further consideration. How home away from home is achieved AHL ensures that every part of the area is well kept and running smoothly. It shows how technology streamline operations procedures for example in AHL all the reservations are managed by a software system called Reservation Management System. The hostel has ensured that both staff and management are able to use this system as a way of avoiding errors and ensuring quality services are provided to make people feel home away from home. The environmental concerns are also well managed by AHL for example where management ensures guest satisfaction by providing a feedback sheet where guests provide details on how they find the services being provided and which places need improvement. AHL also encourage students to socialise with staff and their fellow students so as to create a feeling of acceptance. Speed (1999) shows hostels accommodating youth offer residential youth workers who assist the youths to learn essential life skills. The young people are encouraged to cook, clean and do other domestic activities therefore making them feel at home. How the residents become co-producers in (Youth Mobility Program Hostels) YMPH Residents in the YMPH become co-producers by being assisted to learn life skills. They are also provided with family environment for example the provision of televisions and other personal possessions in their rooms encourages them to be more independent therefore co-producers. They are also encouraged to socialise with their colleagues and staff to share necessary ideas. Youth hostels also enable residents in becoming co-producers by providing them with internet facilities under supervision. This helps them develop as they are allowed to book flights or get necessary information from the internet. Service Recovery Framework Since AHL is funded by the Federal Government in all its operation, the service recovery framework may work if the government is still willing to fund the hostel. However, AHL should ensure that management of funds provided by the government are effectively managed for the improvement of physical facilities. The central office should ensure that every regional office effectively manages the funds provided so as to achieve development (Kotter and Dan 2002). Areas of improvement by AHL Though AHL Company seems to be effectively managed, some of its operations need improvement in some parts for example on how AHL manage their demand and capacity. AHL should design a method of managing capacity of people to ensure that they do not close opportunities for other who needs the services most. Kleiman (2010) shows patients suffering from painful tooth for example should not be denied accommodation due to lack of a room. AHL should design a way where some reservations should be made for emergencies. This is one way of retaining frequent customers to the company and which build a good reputation. AHL should reduce on its number of Directors in the board to about five; one Director should manage two regional offices. This will reduce on the spending as the money paid may be useful in the attainment of service recovery framework. AHL should improve its services in a way that they also attract foreign visitors. Corgel and de Roos (1999) this enables the region to develop through diversified ideas from foreigners. Foreign investor may also be attracted to sponsor the company and develop it further. References Corgel, J & de Roos, J 1999, The lodging property index, 4th ed., vol. 8. Innside Issues. Davis, G & de Roos, J 2006, Deal or no deal, The next three years in hotel investment, Hotel Yearbook 2007, vol. 1, no. 1, pp. 46-47. Gomez-Mejia, R, David, B & Robert, L 2008, Management, People, performance, change, 3rd ed. New York, USA: McGraw-Hill. Jain, S, Weintraub, R Rhatigan, J Porter, M & Kim, J 2008, Delivering global health, Student British Medical Journal, vol. 16, no. 1, pp. 27.  Kleiman, S 2010, Management and executive development, Reference for business, p. 25. Kotter, P & Dan, S 2002, The heart of change, Boston: Harvard Business School Publishing. Porter, M 2001, Strategy and the Internet, Harvard Business Review, pp. 62-78. Ransley, J & Ingram, H 2004, Developing hospitality properties and facilities, 2nd ed., Butterworth Heinemann. Speed, J 1999, A re-appraisal of competitive strategy, Marketing intelligence and planning, vol. 7, no. 5, pp. 8-11. Stipanuk, D 2006, Hospitality facilities management and design , 3rd ed, Educational Institute, American Hotel & Lodging Association, Mich. Read More