ritz carlton

Topics: Management, Strategic management, Ritz-Carlton Pages: 9 (296 words) Published: August 3, 2014
Anderson Zuleta Medina
Alexandre Cammarano
Chris Angelos
David Smith
Scott Coons

Executive Summary

 There is a conflicting business strategy between
Ritz-Carlton and Millennium Partners. Failure
to resolve the issue could prematurely end the
partnership.

PEST ANALYSIS (ADAPTATION)
 ECONOMIC
POLITICAL
• Stable Economy
• Stable Political Scene
• Upcoming Election

• Tourism Industry
• Unemployment Rate
• DOW

SOCIAL
• Political Events
• Leisure/Travel

TECHNOLOGY
• Y2K
• Internet Dotcom boom
• Moore’s Law

PORTER’S 5 FORCES ANALYSIS



Threat of entry
Very High Cost
Name Recognition

Supplier Power

Labor
Luxury industry

Industry Rivalry

4 Seasons

Every day supplies

Substitutes
Embassy
Condominiums

Buyer Power
High End
Customers

AGIL ANALYSIS

Adaptation
(Refer to PEST Analysis)

Latent Values
Ritz:
•HR and Quality Motto
•Mission Statement
•Management

Millennium:
•Height, Light, and View
•Investors
•Apartment, Residents

Goal Attainment
Ritz
7 Day / 50%
TQM
Traditional Target
Partnership

Millennium

+ 7 Day / 80%
SQI
New Target
Ritz Investment

Integration
Collaborating to reach two separate goal.
One perspective can’t dominate.

SWOT ANALYSIS
 Weaknesses
Strengths
• 7- Day Count-Down Process
• Management Style
• Standards

• Perishable Product
• Conflict with Millennium

• Experience

Opportunities

Threats

• Partnership with Millennium

• Security Issues

• Globalization

• 4 Seasons / Millennium
• Millennium

FORCE FIELD ANALYSIS



 How does Ritz-Carlton convince Millennium to execute the 7 day process without threatening their future relationship?
Propelling Forces

Restraining Forces

• 7-Day Process Success

• Building Construction

• Ritz-Carlton Worldwide

• Conflicting Philosophies

Experience
• McBride’s Experience

• Millennium, $700 Million
Investment

CONCLUSION

 Based on the analytical tools, the environment is
favorable and the industry is attractive. The tools
also show issues in integration between Millennium
Partners and the Ritz-Carlton due to different goals
and values. Ritz Carlton’s strengths demonstrate
their unyielding commitment to their business
philosophy.

REFERENCES

 "TInet: The United States International Travel Industry." Welcome to Tourism Industries. US Department of
Commerce, July 2001. Web. 27 Feb. 2012.
.
 Sucher, Sandra J., and Stacy E. McManus. "Harvard Business School - Ritz-Carlton Hotel." Scribd. 30 Sept. 2005. Web. 12 Feb. 2012.
.




References: 
 "TInet: The United States International Travel Industry."
Welcome to Tourism Industries. US Department of
Commerce, July 2001. Web. 27 Feb. 2012.
.
 Sucher, Sandra J., and Stacy E. McManus. "Harvard Business
School - Ritz-Carlton Hotel." Scribd. 30 Sept. 2005. Web. 12
Feb. 2012.
.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Ritz Carlton Case Study Essay

    ...Running Head: Ritz-Carlton Hotel Company Ritz-Carlton Hotel Company Case Study Steven Kane Benedictine University MBA 630: Operations Management August 11, 2013 The business problem facing Ritz-Carlton Hotel Company is how to continuously improve quality through quantifiable measures. Quality management in any service industry can be very complicated. Customers do not purchase a good, but are looking for an experience that exceeds all expectations. The problem is that each customer has a different view of what an extraordinary experience would be. The exclusion of just one of those elements could mean losing that person to the competition. Without methods for quantifying quality, management does not have the evidence necessary to determine how to improve or alter the experience to meet the dynamic demands of the customers. Ritz-Carlton is a name that is synonymous with luxury in the hotel industry. They were the first hotel to ever win the Malcolm Baldrige National Quality Award. Every single employee lives and breathes quality. Ritz-Carlton recognizes that its own employees are the most important resource in delivering the highest quality experience to each and every person that walks through the door. Ritz-Carlton Hotels consistently win awards every year for having some of the best hotels all...

    Read More
    1349 Words 6 Pages
  • Essay on The Ritz-Carlton Does Not Sell Hotel Rooms...

    ...The Ritz-Carlton Does Not Sell Hotel Rooms… The Ritz Carlton runs in a way that makes every single detail about the consumer and the consumer’s needs, wants, and expectations. Every decision that they make they make with the consumer in mind. They essentially are selling unsurpassed service to their patrons. The Ritz Carlton is very well-known for providing consistent service to its patrons in each of its locations throughout the world. They provide guests with high quality customer service, utilizing their Gold Standards for customer service, which include its credo, motto, employee promise, three steps of service, and the twelve service values. The three steps of service are fairly basic, however many companies overlook them, losing that opportunity to create a long lasting relationship with the guest. The first is to deliver a warm and sincere greeting and to use the guest's name; the second is to anticipate and fulfill the needs of each guest; and the third is to give a warm good-bye, again using the guest's name. The Ritz Carlton believes that guest recognition is a top priority. If employees recognize the guest, then they can give personalized service, have fast access to knowledge, and interactions that are largely hassle free. These Gold Standards continue to lead the company to outperform its competition and increase its customer loyalty....

    Read More
    1108 Words 5 Pages
  • Service Quality at the Ritz-Carlton Hotel Company Essay

    ...hotel chains are required to offer not only standardized facilities, but also standardized services. To meet the different needs of customers in each individual country while maintaining the same standards of services, global marketing strategy plays a critical role. Being a leader in upscale hotel chain industry, The Ritz-Carlton Hotel took a unique path to compete with its rivals. Founded on principles of groundbreaking levels of customer service, and with guest satisfaction being the highest mission, the Ritz-Carlton Hotel Company, is the first and only hotel company to win the desirable Malcolm Baldridge National Quality Award and the only service company to win the award two times, with the most recent honor received in 1999. Brief History of Ritz-Carlton Hotel Company The Ritz-Carlton Hotel Company was established in 1983 when real estate mogul and former CEO William B. Johnson acquired the rights to the name made famous by Swiss hotelier Cesar Ritz. The company manages more than 50 luxury hotels worldwide, in Australia, China, Indonesia, Japan, Malaysia, Mexico, Puerto Rico, Singapore, South Korea, Spain, the US, the US Virgin Islands, etc. The Ritz-Carlton name is synonymous with luxury, and its hotels are consistently rated among the best in the world. The company operates sales offices in Germany, Japan,...

    Read More
    1685 Words 7 Pages
  • ritz hotel Essay

    ... MARKETing management Designing and managing services Case Study : Ritz-Carlton Hotels Lecture : Prof. Dr. Basu Swastha Dharmmesta, M.B.A Group 4 Anne Stam [Student Exchange] Febrini Wulandari 08/277511/PEK/12841 Irwan Arfandi Bachtiar 08/277521/PEK/12851 Case Summary Ritz-Carlton Hotels, California, USA Ritz-Carlton is a brand of luxury hotel and resort with 70 properties that are located in major cities and exclusive resort destinations of 23 countries worldwide. The Ritz-Carlton brand is managed by the Ritz-Carlton Hotel Company LLC, a subsidiary of Marriott International. The Ritz-Carlton Hotel Company has currently 32,000 employees. The Ritz-Carlton headquarters are found in Chevy Chase, Maryland, a community along the border of Washington, D.C.. Ritz-Carlton redefining again 5 New Gold Standard, is primarily intended to help managers, owners, and leaders understand the driving principles, processes, and practices that have generated unusual staff loyalty, world-class customer engagement, and significant brand equity for Ritz-Carlton. People are spending a lots of money now, they are looking for luxury, finest, comfortable, warm, relaxed and...

    Read More
    1493 Words 6 Pages
  • Essay about Ritz Carlton

    ...In 1983, President and COO, Horst Schulze, decided upon a strategy to manage the Ritz Carlton in order to compete on quality. The strategy affected the entire organization, with significant differences in: · Defining traits of all company products defined in the company Credo · Translating the Credo into basic standards to clarify the responsibilities for employees · Personally train employees the new Ritz-Carlton Credo and basic standards (the Gold Standards) · Aggressively instilling a passion for excellence Five years later, Schulze began using the Malcolm Baldridge National Quality Award criteria to develop a system of business excellence. This system used the Deming Wheel in order to achieve optimum performance levels throughout the organization. With these new policies in place, Schulze lead Ritz Carlton to the first recipient of the Malcolm Baldridge National Quality Award for Service. The 1999 Ritz-Carlton application summary is as follows: Criteria 1: Leadership "Plan" – There are seven specific decisions collectively made by Senior Leaders to set direction for business excellence: · 10 year vision · Strategy · 5 year mission · Methods · 3 year objective · Foundation · 1 year tactic The senior leaders formed the Gold Standards, which are comprised of the Credo, The Basics, Three Steps of Service, the Motto, and the Employee...

    Read More
    1683 Words 7 Pages
  • Essay about Ritz carlton case on recruiting

    ... Question [1]:- Describe why a strategic approach in recruiting was crucial at the Ritz-Carlton. Answer:- Ritz-Carlton has a unique brand image so to if a new hotel was to be opened under the head, the quality and level of service need to be at the same level as expected. So for that the focus of process must depend on the candidate’s needs, and the candidate experience. Employers and job seekers are brought together for potential matches through their recruitment and job search activities. Employers may post help wanted signs, run newspaper advertisements, or seek referrals from private employment agencies. Job seekers may speak with friends and relatives, solicit the aid of the state employment agency, or simply walk in and apply. These recruitment and search activities help both parties acquire information about each other, and the more information they obtain prior to entering an employment agreement the higher the likelihood of a good employment match. In this case study we are explaining by resembling “The principle of Strategic Recruiting Methods”, why a strategic approach to recruiting was crucial at the Ritz-Carlton. 1. Short time & huge vacancy had to be filled: As the hotel was being built and the opening got closer, the hotel’s H.R.D (Marie Minarich) felt on a major...

    Read More
    2465 Words 9 Pages
  • Legendary services at the Ritz-Carlton Essay

    ...Legendary services at the Ritz-Carlton 6 months ago, I was invited to have business dinner in Ritz-Carlton, and was amazed by their ability in consistently delivering ideal service. Starting from then, I had one question in my mind, which is how Ritz-Carlton, who has 81 hotels in 25 countries and 44,000 employees around the world, can deliver consistent services to their demanding customers from place to place. According to Forbes Magazine, Ritz-Carlton has become a leading brand in luxury lodging by rigorously adhering to its own standards. It is the only service company in America that has won the Malcolm Baldridge National Quality Award twice, and Training Magazine has called it the best company in US for employee training. i. A brief introduction of Ritz-Carlton Ritz-Carlton operates 81 luxury hotels and resorts in major cities and resorts in 26 countries worldwide. The current company was founded in 1983, when the brand was bought from the previous owners. The Ritz-Carlton Hotel Company, L.L.C., based in Atlanta, Georgia, which began expansion of the brand to other locations. The hotel company is today a subsidiary of Marriott International. ii. Ritz-Carlton is in service business Service business provides work performed in an expert...

    Read More
    2977 Words 12 Pages
  • How the Ritz Carlton's management objectives and goals allow for superior service Essay

    ...Public University System Hotel industries are faced with a unique challenge in providing a constant level of service throughout many diverse countries. The time companies spend in creating a solid business plan will help them anticipate the tough spots, modify their approach and climb to the peak of success in the international marketplace (Brown & Gutterman, 2009). One particular hotel chain is The Ritz Carlton, owned by Marriott. The Ritz Carlton operates more than 80 hotels in 26 countries, driven by their motto, “We are Ladies and Gentlemen serving Ladies and Gentlemen” (“Gold Standards,” 2012). They have created a business plan that has enabled them to achieve superior service throughout the world. When developing a plan for companies that operate internationally there are five factors managers must assess: demographic, economic, political, regulatory and cultural (Brown & Gutterman, 2009). Economic and cultural factors can take up the majority of an analysis for a region; however, in service based businesses demographics will play an equally important role. The Ritz Carlton’s target demographics are the wealthy elite members of society. Throughout the world this audience has a vast range of views, beliefs and expectations that the hotel needs to provide. As a result, all employees take a two-day cultural orientation followed by yearly certification to ensure their customers’ wants and...

    Read More
    688 Words 3 Pages

Popular Essays

Become a StudyMode Member

Sign Up - It's Free