Kindred Spirit Case Study

Topics: Problem solving, Cost, Economics Pages: 4 (1070 words) Published: May 13, 2011
Define the problem:
a) -The hotel was successful in previous years of operation
- Revenues are down 18% and profits have decreased 25% over last year  
- The town council is considering stopping overnight parking on the road beside the hotel that could spell disaster seeing as the hotel only has parking for 11 vehicles  
b) The hotel is suffering from changes inflicted by the town council, and the new owner Ms. Kindred has no experience working in the hotel or public relation industries. The business is long money and Ms. Kindred has made changes, which may look good on paper, but in reality have drastic consequences upon the staff and productivity of the hotel.  

c) The problems seem to mostly stem from the inexperience of the owner in the industry and her poor relations to the employees and assistant manager. By running on a short fuse Ms. Kindred has succeeded in alienating some if not all of her employees, and the firing of three long term employees and instant shift in business practices will and are having detrimental effects on both customer service and profits. The problems seem to mostly stem from Ms. Kindred taking and unfriendly and impersonal attitude to what is a very close-knit staff who are used to contributing to the company in more ways then just manually.  

Generate and evaluate solutions:
1. Sell out before its too late: Ms. Kindred cuts her losses and sells the company after realizing she wasn’t cut out for this line of work.  
Pros - Stops the risk of losing more money should the hotel continue in a downwards spiral  
- Reduces the risk of going bankrupt
Cons - It may be difficult to sell the hotel, especially with the new parking zoning  
- It would be difficult to sell and make a profit
2. Ms. Kindred could speak with Greg and apologize for losing her temper, she could then give him permission to speak with the council on her behalf for the street zoning. As he knows the area...
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