OPM530

INTRODUCTION TO OPERATION MANAGEMENT

ASSIGNMENT 3
- HOTEL EMASLINK PACIFIC HOTEL

PREPARED BY:
GROUP: DBMF5A

NO. STUDENT’S NAME MATRIC NUMBER

1. MUHAMMAD NUR ALDAZAFAR BIN AZMI 2019787475

2. WAN MUHAMMAD HAZIQ BIN WAN HANAFI 2023369773

3. MUHAMMAD IRSHAD BIN RAZALI 2021445178

PREPARED FOR:

DR. JULAINA BINTI BAISTAMAN

FACULTY OF BUSINESS AND MANAGEMENT

UiTM CAWANGAN KELANTAN

INTRODUCTION
 This OPM 530 – Introduction To Operation Management course involves the
study of concepts relating to the operations functions in both manufacturing and
service organizations. For assignment 3 - Self Reflective Essay, our group has
chosen a hotel which is the first luxury hotel in the state of Kelantan, the New Pacific
Hotel. This hotel is where I worked before serving as a civil servant.

New Pacific is a well-known first five-star luxury hotel in Kota Bharu, Kelantan,
that first opened its doors in 1990 and is well-known for both its architecture and the
people it has housed. This hotel was previously under the management of the
Kelantan State Economic Development Corporation (SEDC), which is the main
choice for most government departments to hold courses, briefings and even
banquets. Then the hotel management was changed in 2018 to Emaslink Company
and the name of the hotel was changed to Hotel Emaslink Pacific Hotel. Despite
being in the midst of its worst financial crisis since 1990 after the change of
administration of the Kelantan Government, New Pacific remained open throughout
the conflict. However, because the economic situation has become unbearable,
Covid-19 has driven the owners of New Pacific to close the famous hotel after nearly
seven decades in business.

ISSUES

Covid-19 pandemic in 2019 made New Pacific hotel facing financial problem
due to dropping of occupancy which make the hotel gain more losses than profit.
The occupancy of the hotel has dropped and fallen very low which is less than 10%.
Besides that, dropping of occupancy has driven to disrupted in supply chain
management.
TOPIC OF OPERATIONS MANAGEMENT THAT RELEVANT REGARDING THE
ISSUE

The topics of operations management that relevant regarding the issues

found in the article is the topic of supply chain management. The goal of supply
chain management is to build the supply chain in such a way that it maximises
competitive advantage and benefits to the end user. It is critical to have a strategic
supply chain in place to ensure the synchronisation of all supply chain activities,
which begin with raw materials and conclude with a satisfied consumer.

The supply chain management of hotel industry has its unique characteristics,
like customer centricity, different types of management and many more. Customer
satisfaction is of paramount importance to the hotel industry. The different
managements systems such as the ownership hotels, franchisees, hotels have
different implications on the supply chain management. On the whole, in order to
drive profit, customers are really important and for the hotel industry, the guest or
customer is like “King” or customer always right. Hotel industry would do anything to
attract customer into their hotel. Without customer or guest, hotel will be facing
problem in their supply chain management.

Close down of New Pacific hotel was the proof that less of occupancy in hotel
made supply chain facing problem. New Pacific hotel that supposedly had balanced
supply chain management at first has been facing disrupted in their supply chain
management after Covid- 19 crisis spreads in 2019 and reducing the total of guest or
customers in the hotel. Reducing of guest made hotel’s cost of production was
higher than hotel’s profit, suffering losses and finally leads to the close down of New
Pacific hotel.
RECOMMENDATIONS

In today’s changing business environment, there is an increased focus on

delivering value to the customer at the cheapest possible costs. Hotel companies
can focus on how to offer products and services while keeping costs low. The
company can reduce costs both from direct and indirect cost. The company should
identify the opportunities cost of production to make sure they would not be wasting
money for unnecessary cost.

Firms should learn from this crisis and invest in mapping their supply networks
so that they are not forced to operate in the dark when the next crisis occurs, as well
as rewriting contracts so that they can rapidly figure out solutions when disruptions
arise. In the long run, these businesses will be the winners.

In times like COVID-19, when supply chains are disrupted, using the right
logistics and supply chain tactics may assist a hotel firm not only enhance its quality
and service, but also lower its expenses. A well-established logistics and supply
chain management system can assist the hotel industry gain a sustained competitive
advantage for individual hotel organisations.

CONCLUSION

In conclusion, covid-19 crisis has impact retail industry operation and make
retailer gain more deficit rather than profit. On the other hand, this crisis make
retailer operate in difficult conditions and facing with major disruptions in supply
chains and working conditions until it can lead to close down of retailers or premise
due to unprofitable income. The impact of Covid-19 crisis on economy sector was
really powerful until it can close down lots of businesses without taking much time.
REFERENCES

1. Operations Management: Understanding and Using It By Adam Hayes

https://www.investopedia.com/terms/o/operations-management.asp

2. Emaslink Pacific Hotel, https://www.facebook.com/emaslinkpacifichotel/

3. Supply Chain Operations Management in Pandemics: A State-of-the-Art

Review Inspired by COVID-19, https://www.mdpi.com/2071-1050/13/5/2504