Junction Hotel has recently suffered a fall in customer demand due to the current economic recession; with a new owner and uncertain hierarchical roles within the hotel, their revenue is decreasing rapidly. Through the use of rationalisation, the hotel overall may become more efficient and reduce costs. However, this strategy may have a negative effect on the staff, causing some staff members to become demotivated and inefficient. After various ownership changes the hotel is now owned by second chance consortium, run by business entrepreneur Simon Chance. The entrepreneur has analysed the current hotels condition, including all staff members and has highlighted the high amount of stress levels and confusion in management within departments. This creates a negative effect as staff members take situations into their own control. Further evaluating Junction Hotels poor hierarchy structure has caused unnecessary amounts of pressure around the organisation and confusion within the staff as to who their boss actually is. The implications of an unorganised structure of the Junction Hotel have occurred overtime allowing Simon Chance to come to a conclusion that a new change and strategy needs to be applied; thus throughout the essay the strategy of rationalisation will be analysed in…