Operations and Project Management at Burj Al Arab Jumeirah

Operations and Project Management atBurj Al Arab Jumeirah
Feb 2017
Table of Contents TOC \o "2-4" \t "Heading 1,1,Unnumbered 1,1"
1Introduction1
2Burj Al Arab hotel2
2.1Hotel background2
2.2Strategic Mission2
2.3Strategic Vision3
3Operation management4
3.1Functions of Operations4
3.2Burj Al Arab hotel's Operational Strategy6
3.3Transformation Model in Burj Al Arab operation9
4Project management12
4.1Burj Al Arab terrace project overview12
4.2Project management approaches13
4.3Project Management Tools and Techniques (Porter’s Value chain)14
5Evaluation16
6Recommendations17
8Conclusion18
References19
List of figures and Tables
Figure 1

Functions of Burj Al Arab Operation

6

Figure 2

Burj Al Arab Operations strategy approches

9

Figure 3

Transformation Model

10

Figure 4

Transformation Model for Burj Al Arab Operation

11

Figure 5

Burj Al Arab Terrace project approaches

14

Figure 6

Porter’s Value Chain for Burj Al Arab Terrace project

15

Table 1

Burj Al Arab Strategic components

10

Table 2

Operation functions

12

Table 3

Burj Al Arab strategy focusing areas

13

Table 4

Burj Al Arab Operations strategy perspectives

15


Introduction
Business would hate to see their customers leaving them because of their inefficiencies, and they would do anything to avoid it. Some hotels are considered to be good while others striving to sustain their businesses. There are several factors to be considered before they are categorized as such: cleanliness, layout, tastes, and settings. However, if an enterprise has succeeded in maintaining and attracting more customers, other factors in operations that are being followed needs to be given more attention. Businesses choose different philosophies in order to gain a competitive advantage over other businesses in the industry.
The public concern regarding the impact of the hospitality industry to the world economy has significantly increased in the past two decades. Businesses in the world know what to say regarding commitment and benefits of being the largest world corporation, yet they are committing the available resources and activities in a manner that links them to the core business philosophy and long-term sustainability based on an organisation's operations management. Burj Al Arab Jumeirah reflects the extraordinary vision of Dubai government to be in the forefront as the city number one in the world. In addition, the hotel is considered to be in top icons of Dubai and it demonstrates the targeted level of development and prosperity aimed by the government of Dubai. In that sense, Burj Al Arab Jumeirah delivers a unique and exclusive service to its guests through taking into account their expectations, needs and desires and carrying that forward to create such a unique and memorable experience which is customised to their preferences.
After a careful examination of the hospitality industry, it is evident that it runs in two parallel lanes; organised operations and planned projects (Sinclair & Sinclair, 2009). However, there appear to be overlaps in some areas such as banquets, the tasks of operations are repetitive while projects focus on new or unique efforts (Project Management Institute, 2013). Overall, this paper will focus on the operations and project management of Burj Al Arab Jumeirah hotel, its business strategy and model it is using to run its operations. In the beginning, this paper highlights the overview of the hotel, its vision and mission. In addition, the procedures of operation management at Burj Al Arab hotel are examined from various perspectives such as functions, strategy and transformation process. Moreover, the researcher will discuss the Burj Al Arab Terrace project in a way which analyse the project management approaches, tools and techniques. Finally, the researcher will evaluate the strategy of Burj Al Arab hotel in view of operation and project management as well as provide recommendation that could improve these procedures.
Burj Al Arab Jumeirah hotel
Hotel background
Burj Al Arab is part of a large group that opened in 1997 named as Jumeirah Group. Jumeirah Group expanded through the UAE to become the most well-known and established organisation in the world. It functions and operates luxuries resorts and hotels, restaurants and spas (MarketLine, 2016). Jumeirah properties are regarded as one of the most luxurious and innovative across the globe and have won several travels and tourism awards (Jumeirah International, 2017). It started with a single property the multi-award winning Jumeirah Beach Hotel, and in 1999 it acquired its second property The Burj Al Arab, Dubai's symbol and a collection of luxury in the world. It has its operations in America, Middle East, Europe, and Asia-Pacific. Jumeirah has development projects plan in Dubai, Jordan, Oman, Qatar, China, Indonesia and India (MarketLine, 2016).
The characteristic shape of the sail of Burj Al Arab Jumeirah is not just a spectacular hotel but it is an icon of contemporary Dubai. Famous as the most luxurious hotel in the world, Burj Al Arab most known hotel with high of 321 metres built on the artificial island. It opened on 1 December 1999 after five years of construction involved of 3000 companies; 250 design engineers and 3500 workers on site (Jumeirah International, 2017). It has a reception for each floor, privet butler service, comprises 202 suites, restaurants and lounges, a spa and health centre, swimming pools and a private beach. This brilliant hotel offers the supreme service and experiences include chauffeur-driven Rolls-Royce, helicopter service, a breath-taking new terrace project with outdoor swimming pools, cabanas and dining venues (Jumeirah International, 2017).
Strategic Mission
The Burj Al Arab has a strategic objective of fulfilling its vision and mission through commitment and utilisation of the available resources (Jumeirah International, 2017). Through the RMS, the hotel has been able to deliver substantial benefits to all of its stakeholders by developing a beneficial mutual relationship. To fulfil its mission, Burj Al Arab hotel's approach can be summarised in four broad components (Jumeirah International, 2017):
Table SEQ Table \* ARABIC 1 Burj Al Arab Strategic components
1

Engaging all the stakeholders in identifying their needs so that they can be satisfied.

2

Practising the best business practices and standards in their daily business operations.

3

Managing the environmental, social, and economic factors.

4

Providing feedback to all the concerned stakeholders.


Strategic Vision
Burj Al Arab hotel's vision is “carrying out its business in line with our company’s Guiding Principles of Teamwork, Recognition, Integrity, People Focus, Innovation, and continuous growth” (Jumeirah International, 2017). However, Jumeirah’s vision is to be in the forefront as a leading global-class hotel which is committed to be the pioneer in the hospitality industry in all of our activities through our devotion to our owners, guests, partners of business and our stakeholders (Jumeirah International, 2017). In order to achieve this, the hotel adopts six guiding approaches and three hallmarks. The three hallmarks are represented by smiling and greeting the guests before they do, employees first response to guests will never be no and finally employees will deal in respects and integrity between each other (Jumeirah International, 2017).
Operations Management
Operations are the day-to-day organisational activities that are aimed at creating unique value and enable it to achieve the core objectives. These operations play different roles that contribute to the organisation's overall success. According to Slack et al. (2007; p.4), “Operations management is the activity of managing the resources which are devoted to the production and delivery of products and services”. The management of operations is the business that transforms the strategies, resources, company internal coordination and organisation into goods and services. The operation management comprises of management that embraces managing information, people, equipment and other company’s resources (Reid and Sanders, 2013).
The insistent need for operation-based capabilities which are characterised by the sustainability features and the durability can be easily imitating by the competitor (Asif et al., 2009). Moreover, the operations which based on in involving people and processes are hard to imitate and copied by the competitors (Asif et al., 2009). For this reason, an operations-based strategy can provide the basis for a sustainable competitive advantage. To attract more customers, acquire a significant market share and increase shareholder's value; to date, it seems that Burj Al Arab hotel utilises an excellent operations strategy that will enable it to achieve its objectives. In running its operations, Burj Al Arab hotel focuses on the speed in the delivery of its services, standardisation, the quality, and affordability of its services (Kimes, 2010). It has managed to be ahead of its competitors by paying more attention to these four factors. It competes on these bases to satisfy the tastes and preferences of their customers.
Functions of Operations
Operations are necessary for the existence of organisations. They are responsible for the production of goods and services. Nevertheless, this is not the only reason why an operation exists in organisations. An operation has a core and supportive functions to organisations (Slack et al., 2007).
Table SEQ Table \* ARABIC 2 Operation functions (Slack et al., 2007)
Core Functions

Supportive Functions

* Marketing. Communicating products and services to the market.

Human resources. Recruitment and development of organisation’s staff.

* Product/service development. Creation of new products and modification of the existing ones.

Accounting and finance. Managing the financial resources.

* Operations function. Production and delivery of products and services


Organisations are using operations to gain a competitive advantage over others in the industry (Porter, 2011). It allows the organisation to focus on the factors that influence the buying decisions, which are influenced by the various actions taken in the different operations within a company. An increase in productivity leads to decrease in production costs (Ottaviano and Melitz, 2008), which has a significant impact on the factors that influences buyer decision. Linking the operational strategies with the overall operational strategy creates synergy within the organisation. Through this, facilities, equipment and employees are viewed as the means of achieving the overall objectives of the organisation rather than departmental elements (Krajewski et al., 2007). It also changes the manner in which operations is being judged within an organisation.
Historically, the operations management was judged as a cost control objective, but now it is being viewed as global performance measures such as the quality of the product, performance and variety, delivery time and customer services (Bhagwat and Sharma, 2007). Understanding the operations management of an organisation ensures that there is flexibility within operations to enable it to respond to the changing tastes and preferences of the customers faster and inexpensively. Figure 1 bellow illustrates the functions of Burj Al Arab hotel in terms of operation which are contributed to maintaining the hotel's reputation in the global market as the most luxuries hotel in the world.
Figure SEQ Figure \* ARABIC 1 Functions of Burj Al Arab Operation. Pictures from (Jumeirah, 2017)
Customer relationship management is another operation function that is important in the hotel industry. If properly implemented and managed, it enhances customer loyalty as well as profitability in the organization. CRM strategies aim to provide necessary and important information to customers by making it available through appropriate technologies. This will create unique and personalized experiences to customers (Sigala, 2005).
Jumeirah Group has invented and implemented various technologies to enable the customers have new experiences. Over the years, the key strategy in the operations of the organization is the constant upgrade of its technical infrastructure and its facilities. In 2015, the group collaborated with Google to launch JumeirahTM Inside which is a virtual platform that comprises 360o video and photography. This platform enables customers to "make hotel bookings, access never-before-seen footage, discover hidden treasures and share them with the world," (Thakkar, 2015). This new technology provides access to the "Burj Al Arab Jumeirah through 360o video, 3D sound playful interactions and exclusive hotspots," (Thakkar, 2015).
Sustainability and environmental performance is responsible for ensuring that the operations of an organization are saving to the environment. Maintaining the environmental standards and being certified from the appropriate authorities strengthens customer confidence in the organization contributing to the overall performance of the organization by reducing any environmental impact (Darnall et al., 2008; King et al., 2005). Burj Al Arab has succeeded in implementing sustainable environmental operations by taking many actions and contributions in this area and receiving an eco-friendly hotel award.
Burj Al Arab hotel's Operational Strategy
Burj Al Arab hotel utilises a strategy that is different from other organisations. Its strategy is the one that has made it famous. It is focused on offering services that are different but of quality from their competitors in the industry. This strategy is resulting from the fact that their customers are different and so should be their properties and services. This strategy is critical in honouring the uniqueness of their properties while offering a memorable experience that competitively superior and successful. The hotel provides lasting and extraordinary memories through their superior services in their properties offering exceptional experiences to their customers. The organisation delivers its strategy by focusing on the following three areas:
Table SEQ Table \* ARABIC 3 Burj Al Arab strategy focusing areas
Imaginative and exhilarating

The organisation focuses on delivering "imaginative and exhilarating' experiences to their customers. Its design and choreography opportunities that offer exciting and unique memories to clients in a careful manner. Their services and products are known as "imaginative and exhilarating"(Jumeirah International, 2017).

Culturally Connected

Jumeirah is dedicated to creating services and products that will provide customers with insights into other cultures based on their tastes and preferences. Its initiatives, programs, and exhibitions are designed in a manner that creates experiences to the customers by reflecting the importance of cultural diversity (Jumeirah International, 2017).

Thoughtful and Generous

This area enables the organisation to focus on the needs and preferences of the customers. According to the organisation, thoughtful and generous means "being courteous and considerate, surprising and extraordinary, and proactive and personal" (Jumeirah International, 2017).

Operations strategy provides the pattern of strategic decision and actions that will enable the organisation to achieve its overall goals (Slack et al., 2007). Operations strategy process is the framework that is followed in making strategic decisions in an organisation (Slack and Lewis, 2010). Different scholars have tried to provide an overview of how the frameworks look like, but they have carried slight differences. Despite the differences, Burj Al Arab hotel come up with strategy perspectives as describe in table 3 bellow:
Table SEQ Table \* ARABIC 4 Burj Al Arab Operations strategy perspectives
Top-down strategy

In this strategy, the organisation chooses a strategy that positions it in the market which involves various decisions such as what business to venture into, where to establish its operations and financial resource allocations (Slack et al., 2007). The decisions are prepared by the top management and communicated down to the lower ranks. Burj Al Arab Jumeirah applies the perspective (Top to down ) which is inspired by Dubai Government vision. Therefore it takes the instructions from the upper management to the lower management according to a certain chain of command. By applying this perspective, the vision of Dubai government is being well translated to reach a uniqueness in this industry.

Bottom-up strategy

In this strategy, strategic decisions are made on operational levels. ‘High-level’ strategic decision making does not happen here, and if it happens it is only done to confirm the decisions (Slack and Lewis, 2010). The organisation incorporates various ideas from each function based on their day-to-day experiences. The hotel gives a paramount importance for the feedback raised from the guests and even the employees. These feedbacks are considered to be the guidelines for the hotel to enhance its services and avoid any failure through dragging the attention of the management to the hidden aspects of development and allowing the management to take the necessary corrective actions.

Operations strategy perspectives are there to help organisations to meet the needs of their customers. Therefore, the operational strategy an organisation chooses must reflect the requirements of the owner (Dubai holding). Based on these perspectives and close examination of the hotel, it is clear that Burj Al Arab hotel utilises an “integrated strategy” between Top-down strategy and Bottom-up strategy.
Figure SEQ Figure \* ARABIC 2 Burj Al Arab Operations strategy approches. Information from (Jumeirah International, 2017)
Transformation Model in Burj Al Arab operation
Operations enable organisations to transform inputs (capital, labour, materials, and equipment) into outputs (goods and services) that provide value to customers. The transformation model is considered to be the backbone of operations management (Slack et al., 2005). Operations are seen as systems whose objective is to produce a specific outcome through efficient management of inputs, transformati...