1

College of Business Administration

Department of Management, Marketing and Public Administration
Operations & Supply Chain Management
(10112)
Instructor: Dr. Panagiotis (Panos) Zervopoulos

Fall 2016/2017

1. A Classification of Operations: Case study

Formule 1 chain hotels strategy is based on standardization. They are usually located
close to roads, junctions and cities which make them visible and accessible to
prospective customers. All rooms are nine square meters in area, and are designed to be
attractive, functional, comfortable and soundproof. They are designed to be easy to
clean and maintain. All rooms have the same fittings and decoration. The reception of a
Formule 1 hotel is staffed only from 6:30am to 10:00am and from 5:00pm to 10:00pm.
Outside these times an automatic machine sells rooms to credit card users, provides
access to the hotel and even prints a receipt. Formule 1 hotels do not include a
restaurant as they are usually located near existing ones.
Anantara Bangkok Riverside Resort & Spa is a member of the exclusive Small Luxury
Hotels of the World. It is located inside an 11 acres tropical garden besides a river just
3 kilometers from the center of Bangkok. Its concept is to about providing guests with
laid-back luxury service with an experience of local culture. Every customer experience
is a unique voyage of discovery and inspiration that is distinctly Anantara. It employs
over 550 staff and has 407 spacious rooms and suites decorated in a Thai style making
use of colorful Thai silks, hardwood floors and fine furniture. All rooms have internet
access, TVs and DVD players with iPod docks and private balconies that have
spectacular views. The hotel has ten restaurants and bars. There is outdoor tropical pool
and Jacuzzi. Should any guests want to venture outside the luxury; the hotel also offers
river cruises, supervised activities for children, and Thai cooking classes.

1. A Classification of Operations: Case study

Formule 1 Hotel
High Volume: Low unit cost (e.g. Formule 1 hotels do not include a restaurant;
Formule 1 hotel is staffed only from 6:30am to 10:00am and from 5:00pm to
10:00pm; An automatic machine sells rooms to credit card users, provides access to
the hotel and even prints a receipt)
Low Variety: Standardized (e.g. Chain hotels strategy based on standardization;
All rooms are nine square meters in area. They are designed to be easy to clean and
maintain; All rooms have the same fitting and decoration); Low unit costs (see above)
Low variation in demand: High utilization (e.g. They are usually located close to
roads, junctions and cities which make themaccessible to prospective customers);
Low units costs (see above)
Mixed high and low visibility: (a) High visibility: Customer contact skills needed (e.g.
Outside these times (6:30am to 10:00am and 5:00pm to 10:00pm) an automatic
machine sells rooms to credit card users, provides access to the hotel and even prints a
receipt); (b) Low visibility: Standardization (see above); Low unit costs (see above)

1. A Classification of Operations: Case study

Anantara Bangkok Riverside Resort & Spa
Low Volume: High unit costs (e.g. is to about providing customers with laid-back
luxury service; It employs 407 spacious rooms and suites All rooms have
internet access, TV and DVD players with iPod docks and private balconies that have
spectacular views etc.)
High Variety: High unit costs (see above); Match customer needs (e.g. Every
customer experience is a unique voyage of discovery and inspiration that is distinctly
Anantara etc.)
The variation in demand is likely high as the unit costs are high and the demand
could vary according to the season. However, there is no information whether
seasonality affects demand (e.g. summers resorts report high demand during summer).
If the bookings are more or less the same throughout the year, the variation in demand
could be regarded as low.
Mixed high and low visibility: (a) High visibility: satisfaction governed by customer
satisfaction; Received variety is high; High unit costs; (b) Low visibility: low contact
skills.