Ritz Case

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ORGANIZATIONAL BUSINESS MODEL FOR LUXURY HOTELS
External AgentsHealth Inspectors Mystery Shoppers IRS State/County Governments AAARestaurant Critics Elevator Inspectors Better Business Bureau Fire Department Environmental Protection Agency Credit Card Companies| | | | | | |

Strategic PartnersConvention and Visitor’s Bureau Theme Parks Golf Associations City Council Central Florida Hotel and Lodging Association Rosen School of HospitalityCommunity Children’s Miracle Network Sister Hotels| | | | | | |

Resources and Suppliers| | | Internal Processes| | | Markets, Customers and Products| Contract/Temp Labor for Seasonal Workers| | | Strategic Management| | | Business Travelers| Skilled Employees| | | | | | | Athletes and Celebrities| Food VendorsLocal FarmsUtility Companies| | | Primary Processes:Executive CommitteeDepartment ManagersWorkers| | | High Income FamiliesRoyalty and Politicians| Audio Visual Vendors| | | | | | | Wedding Parties|

Florists| | | Resource and Support Processes:| | | Luxury Hotel Rooms| Guest Supply VendorsMaintenance Services| | | SalesAccountingSecurityHuman Resources| | | Spas and GolfMeeting and Banquet Space| Sister Hotels| | | | | | | Fine Dining|

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CompetitorsDirect: Other Luxury Hotels Disney Hotels Indirect: Cruises Time Shares Vacation Homes Standalone Spas and Golf Courses RV’s|

The Ritz Carlton LLC is a subsidiary of Marriott International. Marriott International owns 99% of the Ritz Carlton LLC. The credo of Ritz Carlton is “The Ritz-Carlton Hotel is a place where the genuine care and comfort of our guests is our highest mission. We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm, relaxed, yet refined ambience. The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests. “ The company motto for the Ritz Carlton is "We are Ladies and Gentlemen serving Ladies and Gentlemen." This motto exemplifies the anticipatory service provided by all staff members. “ The Ritz Carlton is a “independently operated division of Marriott International, Bethesda, Md.” Each Ritz Carlton property has their own set of financial statements and is individually audited by PricewaterhouseCoopers. As evidenced by the credo and motto of the Ritz Carlton, the Ritz Carlton expects higher quality in their facilities and superior customer service. The Ritz Carlton is a luxury hotel in the hotel industry. Ritz Carlton has chosen a differentiated business strategy that targets customers with higher disposable income that are willing to pay extra for a better product. The product that Ritz Carlton offers is lodging for travelers and the services that are inherent to lodging such as cleaning service for the rooms, fine dining, recreational facilities, cable television, and internet access. The main customers that are targeted by Ritz Carlton are business executives and high-income individuals. The barriers of entry in the luxury hotel market are difficult to enter because of the high startup costs and high costs to build the reputation of being a luxury hotel. The startup costs is high in the luxury hotel industry because being a high-end resort, the costs of building and designing the hotels is high. In order to attract high-end customers, Ritz Carlton must have higher standards in building their hotels and also furnishing their hotels when compared with other hotels. Also, the cost of having well trained personnel is essential because since service is paramount in the luxury hotel experience. Ritz Carlton has a strategic alliance with the Rosen school of Hospitality to assist in training their employees and also in hiring new graduates. This strategic alliance ensures that Ritz will remain...
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