The three most important issues for Majestica are: Length of the contract, name of the hotel and general staffing.
Length of the contract: Majestica’s competitive advantage is their management. It takes many years to cultivate their style.
Name of the hotel: The name ‘Majestica’ is the brand that of this hotel operators. It is critical to protect their brand as it will continue to help them in their global expansion initiatives. It must get the agreement to use the name.
Staffing: The success of Majestica is intricately tied to its ability to provide superior service. For it to continue to deliver on this, it has to have a consistency in service standards and staff attitude. They have to have full authority on staffing and they should also try to get the authourity on staffing senior positions especially that of general manager since that is the person charged with daily hotel operations
Majestica Hotels Inc., a leading European operator of luxury hotels, was trying to reach an agreement with Commercial Properties of Shanghai regarding the management contract for a new hotel in Shanghai. A series of issues require resolution for the deal to proceed, including length of contract term, name, staffing and many other control issues. Majestica was reluctant to make further concessions for fear that doing so might jeopardize its service culture, arguably the key success factor in this industry. At issue was whether Majestica should adopt a contingency approach and relax its operating philosophy, or stick to its principles, even if it meant not entering a lucrative market.
Majestica hotel in shanghai? 5th team
Majestica was founded in Western Europe and focused exclusively on Europe and the United States initially, the expansion into China had been on management’s agenda since 1999, the opportunity... [continues]
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