Hotel International and the Roaring Dragon Hotel alma Student Sullivan university MGM 510 Executive Summary This proposal provides a roadman toward Improving communications between the Hotel International (HI), a global hotelier, and the management control of the Roaring Dragon Hotel (3RD), one of the original three-star hotels in southwest China and a state owned enterprise (Grainier, 2008).
Failure to recognize cultural norms and the relationship between employees, customers, and contractors will result in dramatic failure of modernization and an effective business plan (Grainier, 2008). Introduction: Management Control Takeover The management control takeover of the Roaring Dragon Hotel (3RD). One of the original three-star hotels in southwest China had a direct impact on the hotel’s employees, its popularity among current customers, and generating profit. 3RD is a state owned enterprise located in southwest China by Hotel International (HI), a global hotelier (Grainier, 2008).
McNally (2011) observed, “Over the past thirty years China has witnessed a gradual transition towards a capitalist political economy with an emphasis on capital accumulation, market competition, and International economic Integration” (p. 1). Background: Deployment of corporate Governance and Global Marketing The provincial government was concerned that the hotel would not meet their potential and needed modernization. The current general manager, Titan Went, focused more on the security of its employees and not the hotel’s profit margin.
The state negotiated new management hoping to drive increased revenue (Grainier, 2008). Currently, the 3RD had a great reputation. “Since the early sass it had enjoyed a long, colorful history and reputation as the region’s premium guesthouse” (Grainier, p. 1). Problem: Organizational culture There was a deep division separating the organization cultures of RED and HI. The HI business strategy and environment went against the current guan-based or Influence-based organizational culture. Guan Is the Chinese word describing Chinese business.
The culture at 3RD promoted social business relations, drinking and eating etiquette, exchanging gifts and donations for favors. RED employees have a strong psychological need associated with receiving and giving “perks” that is tied their self-identification. These interpersonal relationships with each other and customers are relatable to both partnerships and friendships (Yuan & Allele, 2007). In addition, 3RD employees were excited to work for the hotel because it showed they had achieved status based on the strength of their social connections.
3RD was not as worried about the hotel’s decline in popularity, revenue, or in delivering quality service standards. 3RD also had a long nepotistic history tied to the Guiana culture (Grainier, 2008). HI considered the networks of influence irrelevant and changed non-productive behaviors. New performance standards were enacted and employees unwilling to meet these new standards were fired. HI also began processing scheduled redundancy program. Once a place considered as secure employment, became uncertain and untrustworthy.
This caused a deep division separating organizational cultures between RED and HI (Grainier, 2008). Another concern was the lose of important contracts. Nu If Travel was unsatisfied with the new pricing structures and canceled all future tours. This caused a reduction in revenue and also made competition look more favorable for unhappy employees. The conditions at 3RD continued to deteriorated with the loss of industry contacts and Guiana connections (Grainier, 2008).
Opportunities: Satisfied Employees & Success HI has the business strategy to promote efficiency in the hotel’s domestic management style and processes, thereby increasing income and popularity if they recognize the risk of alienating the current organizational culture. A healthy balance should be addressing all the concerns from both parties (Grainier, 2008). Robertson wrote, “people form personal intentions to achieve a variety of desired outcomes, and are satisfied with their Job to the extent that they perceive these goals will be successfully attained” (2009).
By improving communications, HI has the opportunity to promote efficiency and improve processes at 3RD with the help of the employees. Recommendation: Open Communications HI should give special consideration to address changes in culture and conditions within 3RD with open communications between HI management, 3RD employees, contractors, and the public (Grainier, 2008). Addressing concerns and anticipating current customers’ needs and expectations will help the “gradual transition towards a capitalist political economy with an emphasis on capital accumulation, market competition, and international economic integration” (McNally, p. ). Communicate hanged, train new employees, inform contractors, and especially listen to your customers and the public (Grainier, 2008). Want, D (1999) asserted, “Guiana practices have played an important role in China’s capitalist transition, making them an indispensable element of any conceptualization of Chinese capitalism” (as cited in McNally, p. 7). Friendship, trust, honesty, influences offer a more direct and open communication style. By nurturing relationships already established and identifying critical industry contacts, HI can positively establish themselves in the China market (McNally, 2011) (Grainier, 2008).