Ritz Carlton Case Study
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Table of Contents 1.1 Introduction 2 1.2 Issue Identification 3 1.3 Solution 4 1.3.1.1 Reduced Price 4 1.3.1.2 Increasing Price 5 1.4 Solution 6 1.5 Execution to the Solution 6 1.5.1 Processes 7 1.5.1.1 Cost Implication of extended training period (14 days) 7 1.5.2 Reallocated Budget 7 1.6 Conclusion 9
1.1 Introduction
Mr. James McBride is under tremendous pressure to prove his mettle. He has been appointed as the General Manager of the Ritz Carlton which will be shortly opening at Washington D.C. the major challenge he faces is from Millennium partners who are the property partners along with Ritz Carlton and are equally responsible for the successful opening of the hotel. There are various issues that have risen out of this management contract is that Millennium accuses Ritz opening with far lower occupancy against their competitors which yields lesser revenues. They want the hotel to directly open at the 80% occupancy. Ritz on the other hand believed that as per their tradition it was necessary to open only after seven days of training and induction of the employees for which additional cost had to be incurred. This did not help them to generate revenues at all. Thus, Millennium partners did not want them to delay the opening of the hotel due to extensive training period.
Through this research work the researcher would like to suggest possible solution for overcoming the conflict between Millennium Partners and management of Ritz Carlton so that neither of them ends up losing. Every possible alternative is evaluated and the best alternative is chosen to overcome the challenges and thus gain competitive advantage.
1.2 Issue Identification
In the following table the researcher will examine why Millennium Partners were unhappy with the
Table of Contents 1.1 Introduction 2 1.2 Issue Identification 3 1.3 Solution 4 1.3.1.1 Reduced Price 4 1.3.1.2 Increasing Price 5 1.4 Solution 6 1.5 Execution to the Solution 6 1.5.1 Processes 7 1.5.1.1 Cost Implication of extended training period (14 days) 7 1.5.2 Reallocated Budget 7 1.6 Conclusion 9
1.1 Introduction
Mr. James McBride is under tremendous pressure to prove his mettle. He has been appointed as the General Manager of the Ritz Carlton which will be shortly opening at Washington D.C. the major challenge he faces is from Millennium partners who are the property partners along with Ritz Carlton and are equally responsible for the successful opening of the hotel. There are various issues that have risen out of this management contract is that Millennium accuses Ritz opening with far lower occupancy against their competitors which yields lesser revenues. They want the hotel to directly open at the 80% occupancy. Ritz on the other hand believed that as per their tradition it was necessary to open only after seven days of training and induction of the employees for which additional cost had to be incurred. This did not help them to generate revenues at all. Thus, Millennium partners did not want them to delay the opening of the hotel due to extensive training period.
Through this research work the researcher would like to suggest possible solution for overcoming the conflict between Millennium Partners and management of Ritz Carlton so that neither of them ends up losing. Every possible alternative is evaluated and the best alternative is chosen to overcome the challenges and thus gain competitive advantage.
1.2 Issue Identification
In the following table the researcher will examine why Millennium Partners were unhappy with the