Essay on Contemporary business environment

In the contemporary business environment, the cost of quality can influence consistently the organizational performance. Today, companies attempt to minimize the cost of quality to save costs, to increase the customer satisfaction and to save time on the delivery of products and services to customers. At the same time, companies should pay a particular attention to numerous issues, which may affect the cost of quality and the quality of products and services delivered to customers. In this respect, it is possible to refer to the case of Hotel Escargo, which has relatively low cost of quality and high quality of services delivered to customers.

In fact, one of the major cost estimates that affect the cost of quality of the Hotel Esscargo is the check-in time. Obviously, the minimization of the check-in time will contribute to the lower cost of quality and the higher customer satisfaction because customers will save time on check-in and get to their suits faster. At the same time, the hotel can check in a larger amount of customers, if the check-in time is short (Chenhall, 2003). Therefore, the decrease of the check-in time decreases the cost of quality. On the other hand, customers appreciate their time saved on check-in because long check-in time makes customers irritated and dissatisfied with the quality of services that has the overall negative impact on the image of the hotel and customer satisfaction.

Furthermore, communication technologies and systems available in the hotel and their quality also affect the cost of quality. Today, clients need to have access to advanced communication technologies and systems because they have to maintain the communication permanently. At any rate, customers are very concerned with the availability of communication technologies and systems. Therefore, if communication technologies and systems do not work effectively, the cost of quality increases substantially because customers may suffer from inconveniences in services, which they consider to be essential for them. However, the Hotel Escargo does not face any problems related to communication technologies and systems.

Furthermore, the baggage storage is another cost estimates concerning the cost of quality. Customers want to receive their baggage fast, when they need it. In such a situation, any delay may affect the perception of the hotel by the customers. In addition, delays in the baggage delivery to customers upon their request slows down the flow of customers, because, if customers have to wait longer, they grow dissatisfied with the quality of services of the hotel, while the number of customers served decreases.

The similar trend can be traced in the beverage area. Customers expect to receive their drinks fast and any delay leads to their dissatisfaction and decrease of the customer flow (Royse, 2006. Hence, delays in the beverage area with serving drinks to customers may increase costs of quality substantially, especially because the number of customers drops.

Finally, the room service is also an important cost estimate around the cost of quality. The room service defines, to a significant extent, the overall quality of services provided by the hotel for its customers. Therefore, if the room service is of the low quality, customers grow dissatisfied and may demand room service to be conducted more effectively or to be redone at all that increases the cost of quality.

Thus, the Hotel Escargo focuses on such cost estimates as check-in time, communication technologies and systems available at the hotel, the baggage storage and delivery, the beverage area and drink serving, and the room service delivery.



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