The Riz-Carlton Applicaiton Summary

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1999
Application Summary

THE RITZ-CARLTON®
HOTEL COMPANY, L.L.C.

Copyright © 2000 by THE RITZ-CARLTON® HOTEL COMPANY, L.L.C. – All Rights Reserved

THE RITZ-CARLTON® HOTEL COMPANY, L.L.C.
at a Glance
Products and Services: The Ritz-Carlton Hotel Company, L.L.C. develops and operates luxury hotels for others. The hotels are designed and identified to appeal to and suit the requirements of its principal customers who consist of: (1) Meeting Event Planners and (2) Independent Business and Leisure Travelers. President & COO: Horst Schulze

Headquarters: 3414 Peachtree Road, N.E.
Suite 300
Atlanta, Georgia 30326
Operations: One Central Reservations Office
Seven International Sales Offices (ISO’s)
24 Hotels and Resorts in North America
Two Hotels in Europe
Eight Hotels and Resorts in Asia
Two Hotels in Australia
30 Hotels under Development
Customer Base: Over 800,000 Customers World-wide
1999 Revenue: $1.5 Billion. A 40% increase over the previous five years.
Employees: 17,000 World-wide, known as The Ladies and Gentlemen of The Ritz-Carlton
History: Established in 1983, the former owner, W.B. Johnson Properties, acquired the exclusive North American
rights to the Ritz-Carlton trademark, the foremost
name in luxury hotels. This status was largely due to
the legendary Caesar Ritz who developed and operated two of the world’s best hotels in Paris and London. The hotels achieved such fame in the marketplace that
they attained what is often referred to as “The Ritz
Mystique”. In 1995, The Ritz-Carlton was jointly acquired by Marriott International Inc. to achieve their strategy of entering the luxury hotel segment of the
industry; the takeover/merger occurred in 1997.
Copyright © 2000 by THE RITZ-CARLTON® HOTEL COMPANY, L.L.C. – All Rights Reserved

The Ritz-Carlton Hotel Company, L.L.C.
1999 Application Summary

Overview
A History of Managing for
Performance Excellence in the Hotel Industry

Most hotels remained profitable despite these quality deficiencies because competitors had similar problems.

Previously, in tiny hotels and inns, the innkeeper directed activities in the organization personally, including “managing for quality”. As hotels grew in size, the volume of activity outgrew the capacity of the innkeeper to manage

by personal direction – it became necessary to delegate.

Ritz-Carlton Returns to the Fundamentals:
Upper Management Participation
Then came 1983 and Horst Schulze. The pace
quickened with a lengthy procession of new Ritz-Carlton Hotels under development. Faced with this challenge, Horst Schulze and his team decided to personally take charge of
managing for quality because they realized managing for
quality could not be delegated!

Apprentices were trained in the craft and qualified
by examination to become craftsmen. The innkeeper - the
master - then delegated much of the managing for quality to
the craftsmen, subject to inspection and audit by the master. Many of our standards go back 100 years to this era of Caesar Ritz and the legendary Chef August Escoffier.

The upper management participation of Horst
Schulze and his team ranged across a broad spectrum, but
most significant activities consisted of:

As we entered the 20th century, the size of a hotel
and its organization sharply increased. The resulting large
hotels required functional departments. The innkeeper - now
a general manager - delegated to each functional department
head the responsibility for quality, for performing the function correctly.

• Defining the traits of all company products which are set out in The Credo. For a full explanation of The Credo, see
Figure 1 on page 2.

With the emergence and growth of technology, hotel
products and processes became increasingly complex. To
deal with these new complexities the hotel industry adopted
the principle of separating planning from doing. Planning of the various departments was delegated to division and department...
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