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MKT3125 Services Marketing Management
Date: April 17th, 2021
Lecturer name: Dr. Jeongsoo Han
Student Name: Eron Joshua Alva
Student Number: M00695961
Academic Year – 2020/21
Word Count: 3294 (excluding executive summary and
references)
Assignment Question: Squire Hotel Group Case Study, EFQM
Model Framework.
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Table of Contents
Subject
Pages
1. Executive Summary
3
2. Introduction
3
3. Background of SHG
3
4. Major Issues faced by SHG
4
5. EFQM Model Framework
4-8
6. Organisations using the EFQM Model
8-11
7. Limitations of EFQM Model
11
8. EFQM Model applied to SHG
11–13
9. Recommendations
13
10. Conclusion
14
3
11. References
15
Executive Summary
This report provides a detailed analysis of the EFQM Model. It was founded in 1988
by 14 European Companies, the European Foundation of Quality Management
(EFQM), promoting business excellence in Europe. The EFQM framework comprises
of (1) Fundamental Concepts, (2) The Criteria, and (3) Radar Logic which have been
explained in detail. The background of Squire Hotel Group (SHG) and the major
issues they face have been explained. The model was also successfully applied to 3
organizations: Bursagaz, Adnec, and VAMED-KMB. The limitations of this model
have been discussed. The EFQM Model was applied to SHG to address their issues,
with suitable recommendations on how to improve their service quality.
Introduction
This report will analyze the EFQM Model and its implementation in various
organizations. A background of SHG, along with the issues they face, will be
discussed. The EFQM Model will be discussed extensively with its various
applications and limitations, followed by three examples of organizations that have
successfully applied this model. Lastly, the model will be applied to SHG with
suitable recommendations.
Background of SHG
The Squire Hotel Group (SHG), in a three-star market, operates a chain of 20 hotels,
ranging between 40 to 120 bedrooms, located in Oxford, Warwick, Southport. The
hotels have their personality and style, offering high-quality food and service at a
reasonable price. Most of the mid-week guests are commercial clients with an
occupancy rate of 80%. These clients have shown a high degree of customer loyalty.
The weekend occupancy rate is about 30% due to the weekend-break packages.
The company doesn’t have any major expansion plans for the future but is working
to improve its current market position. They are trying to project an image of a high-
quality, small, and friendly hotel that local businesses can rely upon for their visitors.
The Oxford branch, which is situated close to Magdalen College, has 41 bedrooms.
The entrance lobby is small but is properly decorated. A grandfather clock and an
elegant mahogany desk are the focal points of the room. During the peak season,
the hotel tries to maintain 100% occupancy rates by making sure that every room is
utilized. During the off-season, occupancy rates are 60% which is good due to the
hotel’s location. The hotel receives very few complaints. They usually are regarding
food and the temperature of the vegetables. The Oxford branch has 40 staff
members separated into ten workers on the liquor side, 20 on food, and ten on
apartments. The staff turnover is as low as 30%, compared to other hotels where the
turnover can be 300%. The staff are very good and enjoy working there. The
restaurant in the Oxford branch has 20 tables with a total seating capacity of 100
people. The restaurant is well used by tourists, visitors to local colleges, and local
clients during lunchtime.
SHG has always ensured that their guests feel important and not just another person
they have to deal with (Johnston, Clark, and Shulver, 2012).
Major Issues faced by SHG
SHG faces several issues since they focus heavily on cost-cutting methods. As
mentioned, SHG doesn’t have plans for future expansion, which could affect their
overall sales. The SHG is run with a lot of budget restrictions. Discretion is only
allowed to the staff if the budgets are achieved and maintained. Financial targets are
set on a yearly basis by hotel managers, and if they are not met, their jobs could be
at stake. The monthly performance of the hotels are measured on four criteria:
occupancy, profit, staff, and food costs. This indicates that the focus is on business
results with a very little scope on the value of their workers. In the Oxford branch
during the peak season, the demand for beds exceeds the number of beds available
in the hotel, resulting in the loss of customers. SHG also faces complaints regarding
food, like the temperature of vegetables or other types, such as two elderly ladies
having problems with the jukebox in the bar. A major downside of the organization is
that they do not have any formal means of collecting information such as complaints
or suggestion forms about the quality of the service. This might result in the
organization not being able to understand the customer’s needs and expectations.
