MG301

MANAGEMENT OF SERVICE
OPERATION

INDIVIDUAL MAJOR PROJECT

NAME: VUNIBOLA EREMASI MAVI

STUDENT ID: S11158039
DUE DATE: 30TH APRIL,2020
 PLAGIARISM DECLARATION COVER SHEET

I Eremasi Mavi Vunibola, hereby declare that this assignment is my own piece of work and all
sources that has been used in obtaining data has been duly acknowledged. I verify that this
individual project is primarily my own. If I have used other sources, I have referenced them it
appropriately and had provided their clear citations to the sources on the body of this assignment.
Every sources used, either it’s a person’s words, phrase or ideas have been given clear credit to
that particular individual. I do understand the penalty for plagiarism as per the University
Calendar, and plagiarism at any cause, are to my own actions.

Signature: E.M.Vunibola

Date: ___30/04/2020___________________
 BACKGROUND OF THE ORGANISATION

The service organisations or company chosen for this major project was the Hot Bread Kitchen
which is located in USP Laucala Campus, Suva. The Hot Bread Kitchen is a renown known
bakery in Fiji. Their first shop was opened in February 1981[ CITATION Nav19 \l 1033 ]. Dr. Mere
Samisoni (the owner) said they based the establishment of HBK on the biblical teaching that can
be found in Mathew 25: 14-30 also they based their company and found it on Christian values of
love and hard work. The business was made possible with a joint venture with two Australian
partner in 1982, but in 1982 Samisoni enterprise Limited bought 100% of the shares of the
company. As of today, the company has 26 shops, which includes the recent one at USP Laucala
Campus and one at Namoli Avenue in Lautoka. They also have a new branch which is going to
open soon in Labasa, Vanua Levu. They employ more than 650 staffs which more than 50% are
women including those in managerial positions[ CITATION PIP19 \l 1033 ].

The USP branch was the twenty-sixth branch to be opened in Fiji, and was opened in June, 2019.
It is situated close to the USP book center in campus[ CITATION Kor19 \l 1033 ]. The idea of
opening this outlet was by its CEO John Samisoni who they have observed that many students
pours to Damodar branch on daily hence they invested $400,000 for the campus branch. The
USP branch employs more than 10 employees. Their opening hours is from 6am to 10pm. The
branch operates as a cold store bakery and café offering food items such as pizza, meat (chicken)
roast and other artesian products[ CITATION Vij19 \l 1033 ]. They also offer a wide range of bakery
product and pastry due to the increase in demand for pastries of University students. Such
product varies from different loaves, buns and rolls, pastries and sandwiches, spreads, drinks.
They also offer beverages such as soft drinks and coffee.
ANALYSIS AND FINDINGS

Provider Gap 1: The Listening Gap

According to Candido, listening gap is the difference that persist between the management
perceptions and the customer’s expectations. The analysis bellows describes the customer’s
perceptions at The Hot Bread Kitchen while purchasing pastries and beverages. The staff at HBK
take notes of perceptions in order to close any gaps that may exists.

A. Marketing Research Orientations

Discussion
Service Level at Hot Bread Kitchen
A total of 20
Neutral questionnaires were
Unsatifactory
10% 5% Satisfactory
distributed to customers,
Unsatifactory
Neutral mostly students of USP
Satisfactory
85% Laucala Campus. A
percentage of 85 rated
the Hot Bread Kitchen
Service as Satisfactory,
10% rated their services unsatisfactory while the remaining 5% were neutral about their services.
It can be seen that a lot of needs were satisfied in this research.

B. Communication
Fig 1.2 Communication Level at Hot Bread Kitchen
 Senior management attending to query Employees Product Knowledge
Approachable to query by frontline Less queue on line
Have to wait for Services

The pie graphs demonstrate some of the effective ways, which the Hot Bread Kitchen uses to
reach out to its customers. From different approaches they used to solve complaints an customers
queries.

C. Relationship Focus at the Hot Bread Kitchen

Fig 1.3

Services at HBK are very fulfilling 18

Services at HBK is uncontended 2
HBK focusses on Value than Monetary terms 10

HBK focusses on Transaction than Value 6

Employees are friendly with greetings 18
Employees does not greet 2
With its relationships focus, HBK is commented to be fulfilling in its services with 90% people
voted while 10% are uncontended. Moving on to developing value than transaction, 50% agrees
with it while 30% did not. To top it off, 90% of the customers recommended their friendly
services with greetings and services.

PROVIDER GAP 2: SERVICE DESIGN AND STANDARD GAP

As indicated by Kasper et al, this gap shows the board's erroneous interpretation of the service
policy arrangement into rules and rules for workers[ CITATION San19 \l 1033 ]. Many companies
usually face difficulties in this phase whereby they have to convert expectations into actual
quality delivery.
 Fig 2.1 Effectiveness and Major changes taken place at Hot Bread Kitchen in terms of its
Product and Service Delivery

A. Hot bread kitchen- Consistency and Effectiveness Qty

Ineffective 6
Neutral 5
Effective 9
B. Changes in Hot Bread
Introduction of new meals 7
Opening of new outlets-branch 7
Recognition of long working staffs 6
The above illustrations show how the participants of the survey stated the effectiveness of Hot
Bread Kitchen in delivering its services. 6 participants say they are very ineffective especially in
the morning (peak hours), while other 5 are neutral about effective and ineffective. The
remaining 9 stipulates that they are effective in delivering their services. On the other hand, are
the changes that has taken place in the organization. 7 customers say introduction of new meals
has increased service delivery, 6 say HBK started to recognize its long working staff and the
remaining 7, it has been impacted a lot by opening of new branch.

Fig 2.2 Customer expectations and Standards at Hot Bread Kitchen

A. Satisfaction Level on New Product launched

Unsatisfied 0
Satisfied 20
B. Service Provided with Customer Expectations
Usually 14
Seldom 6

With referenced to the table above, it can be seen that all the participants are satisfied with the
new products being introduced in Hot Bread Kitchens menu. This new meal was roast Chicken
in Rosemary and soy sauce. Moving on, are the comments by the participants in regards to the
service standards. 14 of the participants commented that the services standard usually fulfills
their expectations while the remaining 6 say that seldom.
PROVIDER GAP 3: Service Performance Gap

Service provider gap highlights the gap that exists between the driven service design and the
service it delivers[ CITATION Raj13 \l 1033 ]. The gap is a result of lack of commitments from
management to report expectations from customers into deliverance of services. Some of the gap
comprises of poor standard of pastries, failure of order and so forth. The Hot Bread Kitchen also
provides its staff with uniforms, safety kits, training and lectures on handling customers.

A. Fig 3.1 Human Resources Policies

E ffectiveness of Hot Bread Kitchen
The above figure highlights the
9 perspective of customers on how Hot
8
7 Bread Kitchen staff are carrying out
6
5 their duties. In reference to the
4
3
2 survey made, 2 customers strongly
1
0 agree with job effectiveness, 9
Strongly Disagree Neutral Agree Strongly
Disagree Agree totally agree, 7 are neutral and 2
disagree with employee’s
performance and effectiveness at the Hot Bread Kitchen.

Employees Behavior Towards Customers

Stubborn Staff
Neutral
Friendly and
Courteous
Only Friendly
sometimes

Fig 3.2 Hot Bread kitchen towards Customers

 The beside pie graph highlights that 52% customers rated the staff to be friendly and
courteous, 21% rated, that they only friendly sometimes, other 21% stay neutral about the
judgement while 10% says that their staff are really stubborn and unfriendly and rude.

Fig 3.3 Quality of Services at Hot Bread Kitchen

Consistency and accuracy of Service quality Quantity

Not always 3
Always 16
Never 1
The above table shows that 3 of the participants finds the quality of services at Hot bread
to be not always the same, 16 finds its to be always the same, on every business day
while 1 of the participants says that quality of services differs from all outlets.

Fig 2.4 Customers Roles and Responsibilities

The beside graph is based on the 20

Understanding their roles as Customers
Participants of the questionnaire on
Hot Bread Kitchen. 31% of the
participants does not know about their
No
32% 32%
Unsure role as customers, 32% are unsure
Yes
while the other 37% participants know

37% their role as customers and have been

Upholding their responsibilities too.

PROVIDER GAP 4: Communication Gap

This particular gap focuses on the differences of their service delivery and what was really
communicated externally through various sources such as advertising their services through
poster, social media and other various form of exchanging communications for promotions. In
other words, it is the difference in the actual services and the promised services. There are
several factors that lead to the gap between serviced promised and service delivery at Hot Bread
Kitchen. They are:
  Integrated Service Marketing
Fig 4.1

Hot Bread Kitchen- Delivering Service Promised

20%
40%

40%

Yes Sometimes No 4th Qtr

According to the research made, it has been seen that Hot Bread Kitchen are able to
deliver its promised services. 40% of the respondents says that HBK are able to maintain
their productions while a 40% commented that their product always go on shortage,
hence cannot deliver promised service, while the remaining 20% says that they cannot
dully deliver their promised services.

 Fig 4.2 Hot Bread Kitchen Marketing and advertising (effectiveness)

The bar graph represents the
E ffectiveness of Hot Bread Kitchen effectiveness of the Marketing and
Marketing and ad's
Advertising for Hot Bread Kitchen on
various medium. 5 participants say that
very Ineffective ads were very effective, while 7 of
Effective them says it was effective due to its

Neutral promotional video. Other 3 were

Ineffective
neutral about their responds and 5 says
0 1 2 3 4 5 6 7 it was ineffective.
Pricing
Fig 4.3 Matching quality of Product and Service with Charged Price

Quality of Service and Product vs Price Charged

Never
7%

Sometimes Yes
31% Sometimes
Yes Never
62%

The above pie chart figure is based on the questionnaire answered by random customers.
According to the data, 62% of the customers find that quality of services is matched with
the price charged while 31% of the customers says that the quality and the price are only
matched for some product. However, the remaining 7% of the customers says that HBK
charged high price on their pastry, hence quality are not good and does not agree with
price charged.
SERVQUAL DIMENTIONS

Perception of customers varies, that is why Hot Bread Kitchen plays an excellent role in ensuring
that they made their customer satisfied with the service they offered. With reference to
SEVQUAL, there are five dimension which can be used to define and make judgements in
regards to the quality of services they offer. The level of satisfactions by customers can be used
to compare and contrast the different perceptions with the expectations[ CITATION Usm15 \l 1033 ].
The below dimensions can be used to access the service quality at The Hot Bread Kitchen.

Tangibles

Hot Bread Kitchens appearance can be easily spotted in every town due to its unique color
making it appealing. The Red and White bakery can be seen while passing by on the street due to
its clear glass making it appealing to the customers due to its cleanliness, the presentations of
menus, chairs and tables. In addition, the bakery had surveillances camera on the interior and
exterior. Staff are so hygienic with their gloves and hairnet and the bakery is so quite making it
easier for them to communicate or customers placing order. There are also screen on their shops
which display menu and also entertainment. Uniformity can be seen in all outlet due to their
same color uniform and presentations.

Reliability

The Hot Bread Kitchen customers are usually satisfied with the pastries and beverages they
serve, for they are always hot and crunchy. But on the other hand, some are dissatisfied due to
shortage of pastries hence may not fulfil their desire. This is handle by cashier and packing
women, where they professionally apologize to their customers for the shortage. Sometimes
customers of HBK have to buy other product to substitute with those in short.

Responsiveness

Hot Bread Kitchen is known for their friendly staffs and friendly services. Also they are so good
in delivering service in a short span of time. Staffs are so responsive to the customers’ query
regarding their product and service, even at peak hours they usually refer them to senior
employees. Also they have feedbacks boxes in their shops for customers’ feedbacks. Also they
respond on emails, TripAdvisor, and comments on social media.

Assurance

At HBK, the staffs are well trained in customer services. They are trained in handling complaints
and grievances from customers regarding wrong order or any sort of issues. Also they provide
service recovery where they usually win customers trust and loyalty. With its security purpose,
they have security cameras installed on their shops and also man is employed to ensure their
women are secured in the premises.

Empathy

It is simply showing caring, and have attention on customer’s order. For instance, HBK also
offers customs order on certain pastries. For example, when a customer asks for all the
ingredients and is allergic to one, the staffs automatically comes up with other pastries that does
not contain that particular recipes. Hence, customers regret from purchasing their product due to
their dissatisfactions in order made.

CUSTOMERS EXPECTATIONS VS COMPANY PERCEPTIONS

Customers satisfactions is a key role and has become an important aspect in developing success
of a business[ CITATION Ain18 \l 1033 ]. According to the research made, there is a gap that existed
between the expectation of customers and the perceptions when it comes to the analysis of
service at the Hot Bread Kitchen. The analysis has based its findings on the gaps that can be seen
on the quality of their services, the job performances of staff, understanding customer’s roles and
responsibilities, pricing versus service standards and many more. The four provider gap have
given analysis from the customer’s perspective which Hot Bread Kitchen can use to improve on
their services. In knowing so, from customer’s perceptions, Hot Bread Kitchen can be seen as
neither effective nor ineffective, whereby the company seen it as just perfect. Consumers have
direct communication with staff making their services consistent. The research also stipulates
that Hot Bread Kitchen terms of services is good; hence improvement is needed in small places.
CONCLUSION

In conclusive, the survey has found out the gaps that exists between the customers and the
management which has portray the directions and the picture that the Hot Bread Kitchen
currently stand in terms of its servicing and quality services. A very few positive and negative
points were found in this survey. In the listening gap, Hot bread Kitchens lacks to survey and
collect customer’s perceptions on their services. This may be due to, management not been in the
shops to reach out customers for their perception (lack of communications). Provider gap which
is the Service standard Gap. Customers are really satisfied with the physical appearance of their
shops, design but are too narrow in regards to their services quality at Hot Bread Kitchen. The
service Performance gap which is provider gap 3 were mainly positive with staff behavior of
being approachable, but on the other hand they were not really together with the staff’s job
performances. The conclusive gap which is the communication gap portrays that customers were
fifty-fifty on their deliverance of service, as they do not really fulfil their needs and also price
charged were really enough with some pastries but some were too costly for them.

SERVQUAL instrument was used with its five dimensions in order to gather the customer’s
perceptions and expectations of the Hot Bread Kitchens quality of services. There were some
differences that was noted while giving the analysis, but many people were satisfied, this
stipulates that Hot Bread Kitchen are on the right track to getting individual purchase from their
shops. Hot Bread Kitchen looks up at all the dimensions and making sure that one doesn’t falls
out.
RECOMMENDATION

After completing this research project there are several recommendations that has been drawn
up, and they are:

 Hot Bread Kitchen should conduct survey daily in order to get the perceptions and
expectation from customers to help boost their quality of services. They should put a lot
of focus on getting customers feedbacks on services and invest more on them as they are
the future clients of Hot Bread.
 Hot Bread Kitchen should include those frontline cashiers in their Board Meetings, as
they are one who holds many comments and have experience with customer’s complaints
and customers’ expectations. They interact more with customers, hence this way, it will
help them to mend the gap.
 With reference to the survey made, some customers say that the price does not agree with
the standard of the services. Hot Bread Kitchen should get a closer look on their pricing
strategy in order to gain more customers. They should set their price on a good level, to
allow low income earners to have access to their products.
 One of the comments made by the participants is that pastries usually runs out, HBK
needs to look into this matter if they still want to retain their old customers. This can lead
to bad Word of Mouth advertisements.
 Lastly, The Hot Bread Kitchen should reach out and make their menu and pastries being
diverse to accumulate our diversity here in Fiji. It can be seen they have started to diverse
their workforce with different ethnicity which is a good move by the management with
equal employment opportunities.
REFERENCES

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