Marriott Budapest Case Study Report
Marriott in Budapest
Case Study Report
2011
Table of Contents
Introduction…………………………………………………………………………1
Problem Identification ……………………………………………… …….1
Analysis……………………
Recommendations……………………………..
Summary……………………………………………….
References…………………………………………………………...
INTRODUCTION
Budapest is the capital city of Hungary and along the shore of the Duna River downtown, the infamous Marriott Hotel is situated. Until Marriott showed an interest in this establishment, it was a franchise of another major hotel chain called Inter-Continental and the hotel was named Budapest Duna Hotel. It was in 1992 when the government decided to privatize the Duna hotel and this posed as an imminent threat to the Inter-Continental franchise since owning the Duna Hotel would mean controlling the majority in market share of the Hungarian hotel industry therefore could lead to bidding wars. Once the tender was made by the Hungarian Privatization Company, two of the biggest bidders in the hotel industry emerged to claim this valuable asset, Inter-Continental and Marriott International. Marriott International emerged victorious and took over the previously government owned Duna Hotel. Marriott hotel faced many problems in setting down rules and guidelines since the “iron clad” rules set down by the government were hard to change. Previously, Managers working at Duna hotel needed to have a constant relationship with government officials and had to follow their rules or be replaced. Due to this concept of command economy, employees regarded their managers as their “master” and had no right to intervene with their decisions which were based on a certain “plan” given down to the hotel by the government and everyone in the organization had to follow it.
PROBLEM IDENTIFICATION * Communist Era Attitude towards work in the organization * Unsettling tension amongst employees in the hotel * Leakage of trained staff into the competition * The
Case Study Report
2011
Table of Contents
Introduction…………………………………………………………………………1
Problem Identification ……………………………………………… …….1
Analysis……………………
Recommendations……………………………..
Summary……………………………………………….
References…………………………………………………………...
INTRODUCTION
Budapest is the capital city of Hungary and along the shore of the Duna River downtown, the infamous Marriott Hotel is situated. Until Marriott showed an interest in this establishment, it was a franchise of another major hotel chain called Inter-Continental and the hotel was named Budapest Duna Hotel. It was in 1992 when the government decided to privatize the Duna hotel and this posed as an imminent threat to the Inter-Continental franchise since owning the Duna Hotel would mean controlling the majority in market share of the Hungarian hotel industry therefore could lead to bidding wars. Once the tender was made by the Hungarian Privatization Company, two of the biggest bidders in the hotel industry emerged to claim this valuable asset, Inter-Continental and Marriott International. Marriott International emerged victorious and took over the previously government owned Duna Hotel. Marriott hotel faced many problems in setting down rules and guidelines since the “iron clad” rules set down by the government were hard to change. Previously, Managers working at Duna hotel needed to have a constant relationship with government officials and had to follow their rules or be replaced. Due to this concept of command economy, employees regarded their managers as their “master” and had no right to intervene with their decisions which were based on a certain “plan” given down to the hotel by the government and everyone in the organization had to follow it.
PROBLEM IDENTIFICATION * Communist Era Attitude towards work in the organization * Unsettling tension amongst employees in the hotel * Leakage of trained staff into the competition * The