Assignment Question

Company name: Hotel Blu Vancouver Canada Methodology and Results: Draw and introduce the new recommendation value chain framework of using Porter’s traditional Value chain model and identifying the primary and supporting level of activities such as inbound logistics (Primary Activities) for example for fresh vegetables, McDonald’s relies on the local grocery stores. Some other necessary raw materials like sugar, yeast, flour, etc., are also supplied by the fixed suppliers (maximum 2 pages with academic citations).

Answer

Introduction

In the ever-evolving landscape of the global hospitality industry, businesses constantly seek innovative strategies to enhance their competitiveness and provide superior value to customers. One such establishment that has been exploring novel ways to improve its operations is Hotel Blu Vancouver, Canada. This essay proposes a new recommendation value chain framework for Hotel Blu, incorporating Porter’s traditional Value Chain model. By analyzing the primary and supporting activities, we can identify potential areas of improvement that align with sustainable practices, customer expectations, and the local ecosystem. This new approach aims to ensure the hotel’s supply chain, particularly inbound logistics, reflects the changing dynamics of the modern world, taking into account the use of local suppliers and environmentally-friendly sourcing methods.

The Value Chain Model

Porter’s Value Chain model serves as the foundational structure for this framework. This model categorizes activities within a business into two key types: primary activities and supporting activities. Primary activities are directly related to the production, marketing, delivery, and service of a product or service. On the other hand, supporting activities are essential for the effectiveness of primary activities. These include activities like procurement, human resource management, and technology development.

Primary Activities in Inbound Logistics

In the context of Hotel Blu, Vancouver, inbound logistics primarily refers to the procurement and management of resources and supplies needed to maintain its operations. By applying Porter’s Value Chain model, we can analyze how Hotel Blu sources its raw materials and resources, thereby improving its sustainability and local community engagement. A prime example of the importance of inbound logistics is the hotel’s procurement of fresh produce. In this primary activity, it is beneficial for Hotel Blu to rely on local grocery stores. This approach aligns with the global trend toward sustainable and ethical sourcing, as it supports local businesses and reduces the carbon footprint associated with the transportation of goods (Porter, 1985).

It also ensures the use of fresh, high-quality ingredients in the hotel’s restaurants and catering services. As argued by Seuring and Müller (2008), locally sourced products often have superior quality due to their freshness, which can positively impact customer satisfaction and reputation.
Other necessary raw materials like sugar, yeast, flour, and other kitchen essentials must also be considered. In Hotel Blu’s case, adopting a similar strategy for these items can prove advantageous. A commitment to fixed suppliers for these materials helps maintain consistency in quality and reliability of supply (Christopher, 2016).

Local Sourcing for Sustainability

The use of local suppliers for raw materials is not only a matter of efficiency but also a strategic move towards sustainability. Numerous studies have emphasized the environmental benefits of sourcing locally. For instance, according to the National Resources Defense Council (NRDC), transportation is one of the major contributors to greenhouse gas emissions, which can be mitigated by sourcing raw materials locally (NRDC, 2021). By reducing the distance between suppliers and the hotel, Hotel Blu can significantly reduce its carbon footprint and contribute to its sustainability goals. Research by the World Wildlife Fund (WWF) demonstrates that local sourcing promotes biodiversity conservation and supports the local economy (WWF, 2020). By engaging with local suppliers, Hotel Blu can make a positive impact on the environment while also building strong relationships with the community.

Conclusion

In a rapidly changing global landscape, businesses must adapt to meet the evolving demands of consumers, the environment, and the communities they operate in. Hotel Blu Vancouver, Canada, has the opportunity to enhance its operations through the implementation of a new recommendation value chain framework, rooted in Porter’s Value Chain model. By focusing on primary activities, such as inbound logistics, and making conscious decisions to source raw materials locally, the hotel can improve sustainability, reduce its carbon footprint, and build stronger ties with the local community.

This strategic approach not only benefits Hotel Blu but also aligns with the preferences of today’s environmentally-conscious consumers. By acknowledging the importance of local suppliers and embracing the principles of sustainable sourcing, Hotel Blu can set a benchmark for responsible business practices in the hospitality industry. The proposed value chain framework provides a roadmap for Hotel Blu to navigate the challenges and opportunities of the modern era. Through this approach, the hotel can further cement its position as a leader in sustainable and customer-centric hospitality.

References

National Resources Defense Council (NRDC). (2021). Transportation Emissions: Sources & Solutions.

World Wildlife Fund (WWF). (2020). Local Sourcing for Sustainable Supply Chains. World Wildlife Fund.

Frequently Asked Questions (FAQs)

What is the new recommendation value chain framework proposed for Hotel Blu?

The new recommendation value chain framework for Hotel Blu incorporates Porter’s traditional Value Chain model. It focuses on analyzing primary and supporting activities within the hotel’s operations to identify areas for improvement, especially in inbound logistics and sourcing practices.

Why is inbound logistics significant in the proposed framework for Hotel Blu?

Inbound logistics play a vital role as they involve the procurement and management of resources and supplies. This includes sourcing raw materials and ingredients needed to maintain hotel operations and is crucial for improving sustainability, reducing the carbon footprint, and supporting the local community.

How does Hotel Blu benefit from sourcing fresh produce locally from grocery stores?

Sourcing fresh produce locally benefits Hotel Blu by aligning with sustainable and ethical sourcing practices. It supports local businesses, reduces the carbon footprint associated with transportation, and ensures the use of fresh, high-quality ingredients in the hotel’s restaurants, ultimately enhancing customer satisfaction and reputation.

What are the advantages of committing to fixed suppliers for other raw materials like sugar, yeast, and flour?

Committing to fixed suppliers for essential raw materials maintains consistency in quality and reliability of supply. This ensures that Hotel Blu can consistently deliver high-quality products and services to its customers while fostering long-term relationships with reliable suppliers.