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How has the Century Park Sheraton Manila emphasized quality? How has the Century Park benefitted from the quality initiatives? What else could the Century Park do to improve quality and attract more customers from their competitors?

How has the Century Park Sheraton Manila emphasized quality? How has the Century Park benefitted from the quality initiatives? What else could the Century Park do to improve quality and attract more customers from their competitors?

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Century Park Sheraton Says, Move Heaven and Earth for the Customers Century Part Sheraton in the corner of Vito Cruz Manila is among the five star hotels in the country that have withstood the time and crisis in the hotel industry for more than three decades. The hotel, which employs an estimate of 500 people, claims distinctive facilities, highly personalized services, and exceptional food and beverages. With average room rates higher than 5,000 pesos or roughly $100 dollar per night, Century Part realized it must do more than just please its customers in order to succeed. The hotel known simply as "Sheraton" did what many experts thought no hotel could accomplish: in the mid 1990's, Sheraton was facing two 5 start Hotels as direct competitors; Holiday Inn along Roxas Boulevard and Westin Philippine Plaza, now Sofitel. While the name "Sheraton" has been synonymous with quality for years, the luxury hotel did not actively begin its quest for total quality management until 1990. It was then that the CEP told senior managers that he was not satisfied with the hotel quality. He believed that the only reason the hotel was among those considered the leading hotel quality. He believed that the only reason the hotel was among those considered the leading hotel in the industry (together with Manila Hotel, Philippine Plaza and Manila Intercontinental) was that everyone else was even more unsatisfactory. The CEO then introduced a total quality initiative grounded in participatory executive leadership, thorough information gathering, and coordinated planning and execution. A trained, empowered, and committed workforce was another essential element. All employees learn the company's "Gold Standards" – the Century Part Sheraton's minimum set of standards for premium service. The CEP and a team of the hotel's 5 top executives from the senior management quality team which meets weekly to review performance and set standards. “They spend a lot of time working on ways to improve our product by talking to as many guests and employees as possible," reported the corporate director.
Transcribed Image Text:Century Park Sheraton Says, Move Heaven and Earth for the Customers Century Part Sheraton in the corner of Vito Cruz Manila is among the five star hotels in the country that have withstood the time and crisis in the hotel industry for more than three decades. The hotel, which employs an estimate of 500 people, claims distinctive facilities, highly personalized services, and exceptional food and beverages. With average room rates higher than 5,000 pesos or roughly $100 dollar per night, Century Part realized it must do more than just please its customers in order to succeed. The hotel known simply as "Sheraton" did what many experts thought no hotel could accomplish: in the mid 1990's, Sheraton was facing two 5 start Hotels as direct competitors; Holiday Inn along Roxas Boulevard and Westin Philippine Plaza, now Sofitel. While the name "Sheraton" has been synonymous with quality for years, the luxury hotel did not actively begin its quest for total quality management until 1990. It was then that the CEP told senior managers that he was not satisfied with the hotel quality. He believed that the only reason the hotel was among those considered the leading hotel quality. He believed that the only reason the hotel was among those considered the leading hotel in the industry (together with Manila Hotel, Philippine Plaza and Manila Intercontinental) was that everyone else was even more unsatisfactory. The CEO then introduced a total quality initiative grounded in participatory executive leadership, thorough information gathering, and coordinated planning and execution. A trained, empowered, and committed workforce was another essential element. All employees learn the company's "Gold Standards" – the Century Part Sheraton's minimum set of standards for premium service. The CEP and a team of the hotel's 5 top executives from the senior management quality team which meets weekly to review performance and set standards. “They spend a lot of time working on ways to improve our product by talking to as many guests and employees as possible," reported the corporate director.
Century Park Sheraton carefully selects and trains its employees to be quality engineers capable of spotting defects and immediately correcting them. Employees receive 60 hours of annual training on quality issues. Century Park Management believes that the high-quality personnel reduce costs because they do the job right the first time. The company reinforces its employee improvement program by recognizing superior individual performance. Annual raises are tied to the individual's level of performance, and work teams share in bonus pools when solutions they recommend for quality issues are successfully implemented. Managers empowers employees to “move heaven and earth" to satisfy customers. Whenever a customer complain or a service problem arises, employees are expected to take immediate corrective action. Employees have total authority to do what it takes to satisfy customer needs without waiting for management direction. The Century Park Sheraton gathers quality data on all aspects of a guest's stay to determine if the customer's expectations are being met. The Century Park Sheraton surveys more than 5,000 guests each year to determine where improvement are necessary. Century Park computers maintain data on the likes and dislikes of more than 8,000 repeat customers. Together with Manila Hotel, Manila Peninsula, Manila Intercontinental, Philippine Plaza, and Hyatt Regency, Diamond Hotel, New World Hotel, Century Park earned the industry-best ranking in the five star category. Survey indicates that 90% of Century Park Sheraton customers rate their stay as a "memorable visit" exceeding their expectation. Case Questions 1. How has the Century Park Sheraton Manila emphasized quality? 2. How has the Century Park benefitted from the quality initiatives? 3. What else could the Century Park do to improve quality and attract more customers from their competitors?
Transcribed Image Text:Century Park Sheraton carefully selects and trains its employees to be quality engineers capable of spotting defects and immediately correcting them. Employees receive 60 hours of annual training on quality issues. Century Park Management believes that the high-quality personnel reduce costs because they do the job right the first time. The company reinforces its employee improvement program by recognizing superior individual performance. Annual raises are tied to the individual's level of performance, and work teams share in bonus pools when solutions they recommend for quality issues are successfully implemented. Managers empowers employees to “move heaven and earth" to satisfy customers. Whenever a customer complain or a service problem arises, employees are expected to take immediate corrective action. Employees have total authority to do what it takes to satisfy customer needs without waiting for management direction. The Century Park Sheraton gathers quality data on all aspects of a guest's stay to determine if the customer's expectations are being met. The Century Park Sheraton surveys more than 5,000 guests each year to determine where improvement are necessary. Century Park computers maintain data on the likes and dislikes of more than 8,000 repeat customers. Together with Manila Hotel, Manila Peninsula, Manila Intercontinental, Philippine Plaza, and Hyatt Regency, Diamond Hotel, New World Hotel, Century Park earned the industry-best ranking in the five star category. Survey indicates that 90% of Century Park Sheraton customers rate their stay as a "memorable visit" exceeding their expectation. Case Questions 1. How has the Century Park Sheraton Manila emphasized quality? 2. How has the Century Park benefitted from the quality initiatives? 3. What else could the Century Park do to improve quality and attract more customers from their competitors?
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