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Case Analysis
Guiring, Ramon

SERVICE QUALITY AT THE RITZ-CARLTON HOTEL COMPANY, L.L.C.

1. What value does a focus on the Gold Standards have for The Ritz-Carlton?

Service quality for Ritz-Carlton Hotel was not that too complicated to understand. To be analyzed over-all, the company just focused into two kinds of people who were involved: CUSTOMERS and EMPLOYEES. The service quality of Ritz-Carlton was like in a cycle between the ends of spectrum through information technology, which is one of the company’s strength. The so called Gold Standards that the Ritz-Carlton having was the very output of their: “Three Steps of Service”, “Motto” and “Credo”. Through this, the company achieved the company’s long-term vision. The company had a formal strategic process that sets business directions. Ritz-Carlton hotel believed that achieving their customer’s satisfaction need this Gold standards that would be their benchmark on their business in providing service in every client or customers. They give attention to employee performance, where, they were aggressively communicated thru their information technology and internalized at all levels of the organization. The employees were allowed to think and act independently with innovation for both internal and external benefit.
By the regular reviews that the company conducting to ensure its consistency of good quality service and then achieving this Gold Standards, the company learned much more of information. Ritz-Carlton Hotel discovered the rate of turnover was high. Thus, the company looked for the rational and actions to prevent the increase. The Ritz-Carlton had a process to overcome cultural resistance to change. As well, employee satisfaction issues were resolved which made the company’s exceeded its benchmark, from decision making, empowerment, communication up to teamwork. Those changes and giving value to the employees made the company into the top having the Baldrige Award for the second time. The customer’s

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