...MAJESTICA HOTEL IN SHANGHAI? On March 20, 2005, Richard Roy, executive vicepresident of Majestica Hotels Inc., was in China, for negotiations with Commercial Properties of Shanghai Limited (CPS). They were discussing a possible management contract under which Majestica would be the operator of a new luxury hotel there owned by Shanghai Industrial Holdings. Majestica Hotels Inc. was one of the world’s leading operators of luxury hotels. The expansion into mainland China had been on management’s agenda since 1999. The opportunity emerged in late 2003 when a close friend of Majestica’s chief executive officer (CEO) revealed that CPS was looking for an operator for its new luxury hotel under construction in Shanghai. Majestica immediately sent representatives to Shanghai to explore the possibility of becoming the operator. Majestica’s proposal was welcomed by CPS, and a letter of intent was signed on August 20, 2004. However, in discussions regarding the management contract, the two parties had reached a deadlock. The key issues to be resolved were the contract term, and the responsibilities and rights of Majestica as the operator, and CPS as the owner, of the hotel. This Shanghai deal was important for Majestica’s global expansion. It would not only provide Majestica with the opportunity to enter the China market but could also set a precedent for Majestica’s future expansion in other emerging markets. MAJESTICA HOTELS INC. Majestica was founded in 1970 in Western...
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...InterOffice Memo To: Subject: Majestica Hotels Inc. Position to take regarding the Shanghai opportunity Problem Statement Majestica Hotels has been given the opportunity to manage a new luxury hotel development in Shanghai being constructed by Commercial Properties of Shanghai Limited (CPS). Negotiations have been stalled due to the different expectations of both parties regarding their roles in the new development and the terms of the management contract. Alternatives Majestica has three options at this juncture. The company can either stick to the established operational guidelines and not compromise on any aspect of the contract negotiations, provide concessions in certain aspects and counter‐propose, or leave the negotiations entirely. Based on a detailed SWOT and trend analysis (Exhibit 1) as well as the benefits to both parties as a result of this partnership (Exhibit 2), the preferred route for Majestica to take in this case would be to provide concessions in certain aspects and counter‐propose. Analysis of the preferred option Due to the established reputation of Majestica, it is important to ensure that the concessions made do not negatively affect the core competencies of Majestica (Exhibit 3) as well as its brand value. Should negotiations reach a point where these competencies or the brand value could be compromised, it would be ...
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...Majestica and CPS have the problem of agreeing on a large amount of issues—Majestica wants to keep everything consistent with the operations of their current hotels, while CPS wants to have a controlling hand in the construction and management of the hotel. First, CPS wants to learn how to manage the hotel themselves in the near future. Majestica wants to sign a contract term no less than 50 years because that is what they have on their current hotels elsewhere. However, since the average hotel management term in China is only 10 years, CPS is prepared to offer no more than a 30 year contract. CPS also does not want Majestica to control all aspects of the construction and design of the control, whereas Majestica feels is necessary they do control these aspects. Since Majestica has named all of the hotels it manages as “Majestica Hotel, (Location),” it feels it should name this hotel “Majestica Hotel, Shanghai” in order to be consistent. CPS disagrees and wants to name the hotel “Shanghai Oceania – Majestica Hotel.” The management and general staffing of the hotel is the most important issue at hand here. Majestica believes that creating a service culture at the hotel is the most important part of being a successful luxury hotel. Therefore, experienced expatriate managers and carefully selected employees is a must in Majestica’s eyes. CPS disagrees and wants to have a Chinese general manager in the near future as well as Chinese employees at every level. CPS wants to...
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...S w 9B05M035 MAJESTICA HOTEL IN SHANGHAI? Jane Lu prepared this case under the supervision of Professor Paul W. Beamish solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. This material is not covered under authorization from CanCopy or any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2005, Ivey Management Services Version: (A) 2005-12-02 On March 20, 2005, Richard Roy, executive vice-president of Majestica Hotels Inc., was in China, for negotiations with Commercial Properties of Shanghai Limited (CPS). They were discussing a possible management contract under which Majestica would be the operator of a new luxury hotel there owned by Shanghai Industrial Holdings. Majestica Hotels Inc. was one of the world’s leading operators of luxury hotels. The expansion into mainland China had been on management’s agenda since 1999. The opportunity emerged in late 2003 when a close...
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...Professor Manager Lecturer Student Nurse Others___ 5. What is your monthly income? Below S$1,000 S$1,000 – S$1,999 S$2,000 – S$2,999 S$3,000 – S$3,999 S$4,000 – S$4,999 S$5,000 above 6. What is your marital status? Single In a relationship Married Divorced Widow 7. How often do you book a hotel in 1 year? Less than twice 3 – 5 times 6 – 8 times More than 8 times 8. How many times do you travel within 1 year? Once Twice 3 times More than 3 times Never 9. How many times do you visit hotels annually? Once a year Thrice a year Occasionally Not so often Factors affect customers’ decision making: 10. What factor will affect you when you are choosing a hotel? (can pick more than 1) Price Hygiene Brand name Location Surrounding Food Room layout 11. Which factor will you consider first? Price Service 12. You realize the hotel through Network Advertisement Magazines Newspaper Friends Other_____ 13. How do you book a hotel usually? Internet Telephone Travel agency Hotel front-office 14. What is the reason behind your visit or short stay in a hotel? Vacation Business trips Travel...
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...Business environment is the sum total of all factors external/internal to the business firm and that greatly influences their functioning. This interaction helps in strengthening the business firm and using its resources more effectively. 1. Internal Business Environment: Ritz Carlton was in the Hospitality industry and ran 30 Luxury hotels across the world. Their philosophy was to combine commitment and innovation to provide best-in-class service to their customers. 2. External Business Environment: It was obviously a very competitive market and players were always trying to improve their standing in the market. The head of the Carlton group was aware of this environment and although his group was one of the leaders in the market, he knew that a status quo will definitely do irreparable damage to the group. They wanted to build the image among the customers. He has now thrown open a challenge to all the hotels in the group and asked each of them to come up with ideas to make the business more competitive. 2. How did the company manage the team implementation? 1. New teams implemented: An announcement was made to shift the operations of the hotel from the existing structure to team based structure. The implication was that there will be no managers, only teams. The team as a whole would now manage itself, and not be managed/supervised. Many teams were created in charge of different service such as Pre-arrival, Culinary, Banquet, Restaurant, Concierge, etc. 2. Dealing with...
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... Subject: Economics of entrepreneurship Date: 02.05.2011 The Park Turon Introduction The 4 star Park Turon hotel opened in 2009 . The newest modern 11 floor building deluxe Hotel of Tashkent, designed to delight guests with its luxurious accommodations, is seeped in the warm tradition of Indian and Uzbek hospitality combined with International standards. Vision statement Every Room - A Home Mission statement Together we provide a caring, consistent and enjoyable experience, always enticing guests to return. To accomplish this, we attract, develop and appreciate talented people who are part of an inspired and dynamic team. Our success is measured by continuously enhancing our reputation, market position and financial performance to set the Tashkent luxury hotel standard. Accommodation Total Number of Rooms: 120 - Superior Guest Room: 56 - Premium Guest Room: 49 - Privilege Guest Room: 8 - Privilege Grand Guest Room: 7 Hotel Facilities * The Lounge Bar * The Park Café * Business center * Two meeting room * Non-smoking rooms * Indoor swimming pool * Sauna (female/male) * Massage rooms * Fitness Center * Outside Parking Organizational structure Board of directors Responsibilities of some positions: Organizational structure of the Park Turon Hotel is hierarchy. General Manager. A General Manager is responsible for the overall strategic planning and direction of the company...
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...1. Executive Summary We have developed a team of 6 members from our course MGT 489 and came up with this Strategic Plan or Business Plan for a Hotel. We have successfully completed this plan with all our known knowledge. Fro the purpose of developing our Strategic / Business Plan, first of all we have given our hotel a name, i.e. “Grand Royal”. In our Strategic / Business Plan we have discussed several factors that are required in developing a good and implementable plan. This plan required a broad-based understanding of changes taking place in the marketplace in which the company competes, or plans to compete, and the ever-changing financial markets. In-depth technical skills in a variety of disciplines such as financial analysis, sales and marketing, latest technology, and managing growth are critical components in assessing a company's opportunities and risks. Now, let us understand the purpose of a Strategic / Business Plan. Business / Strategic Plan Purpose: Introduction: In today's highly competitive environment, formal business planning is an essential element in achieving business success. A well-written business plan is primarily a communication tool used to obtain financing. In certain instances, particularly with our early stage company, this business plan also serves as a strategic plan. Considering that lenders are inundated by numerous investment opportunities from which they choose only a few, this business plan describes our story and how we intend...
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...oWHAT IS HAPPENING TO THE HOSPITALITY INDUSTRY OVER TIME? 10 GLOBAL HOSPITALITY TRENDS IN HOTELS & RESORTS Time to time hospitality industry experiences important changes that impact globally the hotelier industry practices. Currently global economics factors and increase international travel and tourism volumes, driven by the growing BRIC economies. As well mega events in Europe and South America from 2012 through 2016 have impact the global hospitality sector. As result owners and managers are implementing news worldwide practices to enhance value and competitiveness such as sustainability and brand refreshment (Ernst & Young, 2012). This report will present and reveal top ten trends and issues considered to be primary areas of focus in the global hospitality industry at present time. Firstly this essay will start presenting the new emerging trends in hotels and resorts services and practices. Secondly will reveal a key issue for owners’ and hotel chains .Lastly one main trend that has brought opportunities to increase hotel demand in the global market. In order to be more efficient and more competitive hotels services and practices have suffered changes. Firstly there is less service provided by the staff and more service provided by the guest. It starts from making one's own reservation, self checking in to help self-service breakfasts. The second trend is forever changing employees which cause a shortage of 10-15 million skilled workers in this industry. Consequently...
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...Introducción La Casa de Calidad es un proceso sistemático que permite definir la relación entre las necesidades y expectativas del cliente acerca de un producto o servicio con los requerimientos del diseño de éste. El Despliegue de la Función de Calidad (QFD) permite entender la prioridad de las necesidades de los clientes y encontrar respuestas innovadoras a esos deseos. La matriz resultante pretende transmitir los atributos de calidad que demanda el cliente a través de procesos organizacionales. Es una herramienta complementaria a los estudios de mercado y otros análisis de datos que permite fijar nuevas metas en materia de calidad. El estudio de estos atributos y los de otras empresas del sector permitirán a la empresa realizar un benchmarking para equiparar los niveles de calidad a sus competidores y/o superarlos. Los elementos que componen la Casa de Calidad son: • Requerimientos del cliente (Qué) conformada por una lista de las necesidades y expectativas obtenidos de las declaraciones del cliente. • Características del diseño (Cómo); aquellos atributos relevantes y observables de un producto/servicio. • Matriz de planeamiento; a partir de estudios de mercado u otros tipos de análisis análogos ilustra las opiniones del cliente acerca del producto/servicio. Contempla la importancia relativa de los requerimientos tanto del cliente como de la empresa, así como las calificaciones de los principales competidores. • Matriz de correlación; plasma las opiniones de los analistas...
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... (4) (Problem Descriptions), (2) to address the problems and needs by defining the solution steps/processes, and search relevant information technologies for the solution process automation on the specific problems and needs (Solution Process, Technology Applications and Automation). The purpose of this paper will include an assessment of the role Information and Communications Technology (ICT) plays in addressing problems/needs in the operation of today’s hotels. In a highly dynamic market whose survival depends on responding rapidly to the changes in related factors; ICT systems must be custom designed to match the objectives of the organization. A hotel is an establishment providing paid lodging which could be on a long or short term basis. There are many types of hotels usually depending on locations, size, and offerings. According to the 2012 NAICS Codes hotels are classed under the 721110 group comprising an industry of establishments primarily engaged in providing short term lodging facilities. Hotels greatly...
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...desk area and entrance hall clean and respectable. As a front desk negotiator, you may be necessary to help in other areas of the hotel, such as cleaning, during demanding seasons or if staff is short-staffed .You will be in charge for large amounts of cash, authorizing guest refunds, and attractive care of any guest complaints or room issues. Housekeeping Staff and Laundry Housekeepers are in charge for the sanitation of all rooms in such a way that a guest would not appreciate someone had just checked out of the space earlier that same daybreak. You will also stripe all linen off each double bed and make each bed according to the hotel principles. The guest rooms are carefully cleaned and clean before a guest arrives. Smaller hotels may need the housekeepers to do the laundry, which will require you to wash, dry and fold all linens, as well as sheets, pillowcases, comforters and blankets. As a laundry person, you would be requisite to also take away stains that may be in any linen, when potential. Hotel receptionists, like hostesses in a bistro, are the first contact a person has when incoming an organization. A Hilton and Marriott hotel receptionist gives a first intuition of the entire hotel. Helpful, personable, specialized and efficient overhaul make a possible guest feel that they are making the right choice in staying in a Hilton hotel. A hotel receptionist is responsible for salutation guests with a beam, welcoming the guest to the public house and arranging reservations...
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...Unit 8-Business Planning Introduction My business venture is based on a bed and breakfast located in Belfast. In intend to offer a quality service for local and international tourists and business travellers. The target market for my business will be tourists looking for short stays and accommodation, not only at holiday time but for the increasing silver surfers, who avail of free travel, cheaper deals etc at off peak times. The name of my Bed and Breakfast is BEDFAST. I got this name from combining bed and breakfast. I also chose this name because it sounds like the location it is set in and would create an instant impact with the potential customer. The purpose of my B&B is to provide me with an opportunity to earn extra income by meeting growing customer demand for my affordable overnight accommodation in a relaxed and friendly setting. There are many features of my B&B such as en-suite guest rooms with king size beds. My bed and breakfast has two dining rooms which gives the guests a bit more privacy and space if they want to eat alone. I have hired professional staff to clean the house and make sure that all guests are settled in well. I have also hired chefs to cook the guests their breakfast of whatever they choose. By doing this I will ensure that the guests of my B&B will have a great stay and be happy to return. My objectives are to make sure that I have provided the best level of customer service for tourists both local and international. I will make sure...
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...Q1. ¿Cuál es la actividad principal de Hilton? ¿Cuál es el valor de una marca en la industria hotelera? Hilton comenzó a funcionar en 1919 con Mobley hotel en Cisco, Texas, y en 1946 la compañía se hizo pública con propiedades en 11 estados en los Estados Unidos. Hoy están presentes en 78 países y más de 300 propiedades. La declaración de misión de Hilton Hotel Corporation es "Ser por excelencia de la compañía hotelera del mundo - la primera opción de los clientes, miembros del equipo, y los propietarios por igual" (Hiltonworldwide.com). La interpretación de la declaración de la misión se puede analizar para entender el negocio principal de Hilton. A continuación se presentan los elementos de su negocio principal: 1. Ser el líder en la compañía global de hospitalidad - Hilton trabaja agresivamente para obtener una ventaja competitiva con respecto a otros hoteles de la competencia con el fin de mantener su imagen y reputación mundial y ser la primera opción de las personas que viajan por todo el mundo por negocios o por placer. 2. La intención de Blackstone para hacer crecer el negocio y marcas a nivel mundial - Después de la adquisición de Hilton por el grupo Blackstone, la intención principal del grupo es invertir en el Hilton y otras marcas de todo el mundo que les ayudará a hacer crecer el negocio en beneficio de las partes interesadas y, finalmente, convertirse en un "premier en el negocio global de la hospitalidad". 3. Mejorar la experiencia del cliente - Hilton cree...
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...Planning the holidays Let me present some reflections on the issue that, I dare say, must be the most exciting for majority of ordinary people, who spend the most of their lives (from 5 to 7 days a week) working and then have a couple of weeks of holiday in summer months (if they have luck). It is planning holidays. In our modern world we can refer to a lot of travel agents, who’ll try to help us choose the best variant for our holiday among infinite multitude of different destinations, tours and travelling programs. It is convenient on the one hand if one has financial opportunity and a willing to trust the planning of their holidays to a manager of a travel agency. He may offer the tourist any kind of a tour according to their wish. To my mind, the most all-embracing and effective way from the informative, cultural point of view is to go on a tour to a foreign countries (or even the places in your country you have never been to) with a bunch of people you don’t know (and even may not like). Joining such tour is a good idea, because it’s rather hard for an average tourist to get around on their own. Some tourists like to make their way around leisurely to see the sites, they don’t like the fast pace of tours, they’d rather have the time to take in each site, not rush through it just to take a picture and say “I’ve been there”. But tours come in all shapes and sizes; one can find the exact offer that isn’t too fast-paced or strenuous. Some tourists...
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