Hotel and Dave Collins

Topics: Hotel, Goal, Strategic management Pages: 2 (581 words) Published: May 19, 2011
Dave Collins, president of H.I.D., sat down at the
conference table with his management team members,
Karen Setz, Tony Briggs, Dave King, and Art
Johnson. H.I.D. owns ten Holiday Inns in Georgia,
eight hotels of different types in Canada, and one
property in the Caribbean. It also owns two Quality
Inns in Georgia. Dave Collins and his managers got
together to define their mission and goals and to set
strategic plans. As they began their strategic planning
session, the consultant they had hired suggested that
each describe what he or she wanted for the com-
pany's domestic operations in the next ten years—how
many hotels it should own, where to locate them, and
who the target market was. Another question he asked
them to consider was what the driving force of the
company should be—that is, the single characteristic
that would separate H.I.D. from other companies.
The team members wrote their answers on flip-charts, and the consultant summarized the results. Dave Collins's goal included 50 hotels in ten years,
with the number increasing to 26 or 27 in five years.
All the other members saw no more than 20 hotels in
ten years and a maximum of 15 or 16 within five
years. Clearly there was disagreement among the top
managers about long-term goals and the desirable
growth rate.
With the consultant's direction, team members
began to critique their growth targets. Dave King,
director of operations and development, observed,
"We just can't build that many hotels in that time
period, certainly not given our current staffing, or any
reasonable staffing we could afford. I don't see how
we could achieve that goal." Art Johnson, the account-
ant, agreed. Karen Setz then asked, "Could we build
them all in Georgia? You know we've centered on the
medium-priced hotel in smaller towns. Do we need
to move to bigger towns now, such as Jacksonville, or
add another to the one we have in Atlanta?" Dave
Collins responded, "We have an...
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