Rdh Case Study
Introduction
During 1950’s, The Roaring Dragon hotel (RDH), a state owned enterprise (SOE), was one of the three-star hotels in south-west china. In 2001, due to decreasing potentiality of RDH hotel, provincial government decided to modernize it. On basis of international reputation, brand name and credentials, Hotel International (HI) organization was selected. (Grainger, 2008)
Background
In August 2002, HI took over management of RDH hotel. Paul Fortune, GM appointed by HI had a vision that his team would be able to bring service skills and professionalism of Chinese employees up to HI’s world-class standard. (Grainger, 2008)
Problem
1. RDH management wasn’t actively putting planning strategy to come over economic crisis and customer satisfaction policy which led to losing customers.
2. Guanxi policy which was considered important part of Chinese business culture was strengthened under RI management.
3. RI Managers lacking skills of developing effective relationship with hotel Chinese employees.
Opportunities & Recommendation
1. RI management should apply Win/Win philosophy which means that (“Agreements or Solutions are mutually beneficial, mutually satisfying”). With a Win/Win solution, all parties feel good about the decision and feel committed to the action plan. (Wilkinson & Thomas, 2009)
2. In Chinese business environment, Guanxi can assist in,
a) Obtaining source of information and resources
b) Increasing business opportunities along with building corporate reputation, enlarging market shares.
c) Employee motivation.
Conclusion
If above recommendation are applied then potential demands of RDH hotel will definitely increase.
References
Fang, Y. (2011) The Importance of Guanxi to Multinational Companies in China. Asian Social Science, 7(7), 163-168.
Grainger, S. (2008) Roaring Dragon Hotel. Ivey Management Services, 9B08M004, 1-7.
Wilkinson, T. J., Thomas, A. R., & Hawes, J. M. (2009) Managing Relationships
During 1950’s, The Roaring Dragon hotel (RDH), a state owned enterprise (SOE), was one of the three-star hotels in south-west china. In 2001, due to decreasing potentiality of RDH hotel, provincial government decided to modernize it. On basis of international reputation, brand name and credentials, Hotel International (HI) organization was selected. (Grainger, 2008)
Background
In August 2002, HI took over management of RDH hotel. Paul Fortune, GM appointed by HI had a vision that his team would be able to bring service skills and professionalism of Chinese employees up to HI’s world-class standard. (Grainger, 2008)
Problem
1. RDH management wasn’t actively putting planning strategy to come over economic crisis and customer satisfaction policy which led to losing customers.
2. Guanxi policy which was considered important part of Chinese business culture was strengthened under RI management.
3. RI Managers lacking skills of developing effective relationship with hotel Chinese employees.
Opportunities & Recommendation
1. RI management should apply Win/Win philosophy which means that (“Agreements or Solutions are mutually beneficial, mutually satisfying”). With a Win/Win solution, all parties feel good about the decision and feel committed to the action plan. (Wilkinson & Thomas, 2009)
2. In Chinese business environment, Guanxi can assist in,
a) Obtaining source of information and resources
b) Increasing business opportunities along with building corporate reputation, enlarging market shares.
c) Employee motivation.
Conclusion
If above recommendation are applied then potential demands of RDH hotel will definitely increase.
References
Fang, Y. (2011) The Importance of Guanxi to Multinational Companies in China. Asian Social Science, 7(7), 163-168.
Grainger, S. (2008) Roaring Dragon Hotel. Ivey Management Services, 9B08M004, 1-7.
Wilkinson, T. J., Thomas, A. R., & Hawes, J. M. (2009) Managing Relationships
References: Fang, Y. (2011) The Importance of Guanxi to Multinational Companies in China. Asian Social Science, 7(7), 163-168. Grainger, S. (2008) Roaring Dragon Hotel. Ivey Management Services, 9B08M004, 1-7. Wilkinson, T. J., Thomas, A. R., & Hawes, J. M. (2009) Managing Relationships With Chinese Joint Venture Partners. Journal Of Global Marketing, 22(2), 109-120. doi:10.1080/08911760902765908 Yi-Feng, N., Tjosvold, D., & Peiguan, W. (2008) Effects of Relationship Values and Goal Interdependence on Guanxi Between Foreign Managers and Chinese Employees. Journal Of Applied Social Psychology, 38(10), 2440-2468. doi:10.1111/j.15591816.2008.00399.x