...The Ritz-Carlton history dates back to 1983 when the Atlanta based Johnson company bought the North America rights to The Ritz Carlton. Ritz Carlton is a brand of luxury hotels and resorts with 80 properties located in major cities and resorts in 26 countries worldwide. In 1997 Marriott International purchased The Ritz Carlton which operated as a wholly owned subsidiary. The Ritz Carlton was a opening hotel in Washington D.C that will have multi-use facility. It is currently owned by Millenium Partners that valued at $225 million hospitality complex that includes three restaurants, 162 luxury condominiums, a 100,000 square foot Sports Club/LA s splash Spa and retail stores that had the latest designs from Italy along with 300 room hotel. In 1992 Ritz Carlton became the first hotel company to be recognized on winning the Malcolm Baldrige Nationality Quality Award and was recognized again in 1999. The CEO believed that Total quality management had something to do with. Later on Patrick Mene joined Ritz Carlton in 1990 as the corporate director of quality to coordinate and spearhead the company’s TQM program. Measurement of a TQM was a difficult barrier because industry does not have service quality benchmarks. The key service elements that were embraced by Ritz-Carlton Gold Standards were a credo, motto, 3 steps of service and 20 Ritz-Carlton Basics. The focus was to provide all key service requirements and most in recent times total quality management has become a focus in...
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...Ritz-Carlton is a hotel; and like every hotel Ritz-Carlton faces the problem of providing customers with best quality service. Hotel business is one of the very few difficult businesses of the world, as no consumer buys any physical product, but the consumer in fact pays for an experience. To come up with the right combination of elements that can create a lifetime experience for a customer is not an easy job to do. (Heizer & Render, 2011). A very famous hotelier Cesar Ritz created the Hotel, late after the death of Mr. Cesar, Mr. Albert Keller bought and franchised the hotels, under the name of “Ritz Carlton Investing Company”. The logo that we see today is the modified form of what Mr. Cesar had initially created. Today Ritz-Carlton that runs as the subsidiary of “Marriot International” owns a chain that includes around 84 luxury hotels and beach resorts in almost 26 countries of the world. Ritz-Carlton has always been famous for its quality luxury experience, but it has always been difficult for the hotel to keep a track of the quality that is being provided to the consumers. Quality is something that cannot be quantified and the management has to rely completely on the employees for ensuring the quality service (Heizer & Render, 2011). Ritz-Carlton follows the process of self-examination; it studies a number of its services on the basis of the process flow and the time it takes. The hotel uses “statistical measurement” to draw the conclusions (Heizer &...
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...Ritz-Carlton Hotel Co. and Supplement Case Study & Presentation The Ritz-Carlton Experience Service is very important aspect in doing business in the hospitality industry. Basically, the Ritz-Carlton is selling a service. They show their service philosophy to new employees on the first day of orientation “We are not is the hotel business. The hotel business is about selling rooms, selling food, selling the bar. We do these things incidentally, but our business is service. We charge for service. Our commitment to our customers is excellence in service. Service is our profession”(p. 13). Therefore, The Ritz-Carlton is not only selling rooms and food but also selling services combined with the products so customers can experience their stay at Ritz Carlton with a high-level standard of expectation. Respect given to employees is the key to success at the Ritz-Carlton. With the motto “We are Ladies and Gentlemen serving Ladies and Gentleman”, Schulze showed respect to his employees as they were ladies and gentlemen. He also created a good work environment based on mutual respect between employers and employees, as well as between employees and co-workers. His philosophy helped the Ritz-Carlton’s annual turnover rate stay at low 20%, compared with industry average of 100%. The number reflected his strategy was helpful. Besides that, the Gold Standards helped employees understand and comprehend the organization’s atmosphere. The standards...
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...第十五屆決策分析研討會 The Malcolm Baldrige National Quality Award Case Study: Ritz-Carlton Hotel Company, L.L.C. Chakrit Chansukko William Firman Ha Tuan Anh Abstract The Malcolm Baldrige National Quality Award framework is probably the best-known excellence award model, and the world’s most widely used excellence framework for self-assessment. The criteria are designed to help organizations improve their competitiveness by focusing on two goals: continually delivering improved value to customers, and improving overall organizational performance. Our final project concentrates on Ritz-Carlton Hotel Company, which receives the Malcolm Baldrige National Quality Award in the service category. The Ritz-Carlton Hotel Company manages thirty six luxury hotels in North America, Europe, Asia, Australia, the Middle East, Africa, and the Caribbean. All have received four- or five-star ratings from the Mobil Travel Guide and diamond ratings from the American Automobile Association. The Ritz-Carlton company has received all the major awards the hospitality industry and leading consumer organizations can bestow. It is the first and only hotel company twice honored with the Malcolm Baldrige National Quality Award from the United States Department of Commerce. The Ritz-Carlton method is close attention to performance data collection and a broad educational platform to deliver the findings. In this report, we will study deeply about The Ritz-Carlton Company, the external and internal performance...
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...SUCHER STACY E. MCMANUS The Ritz-Carlton Hotel Company op yo The Master said, Govern the people by regulations, keep order among them by chastisements, and they will flee from you, and lose all self-respect. Govern them by moral force, keep order among them by ritual, and they will keep their self-respect and come to you of their own accord. — The Analects of Confucius tC James McBride, general manager of the new Ritz-Carlton in Washington, D.C., faced the largest challenge of his successful career. A proven veteran of the luxury hotel chain’s march across Asia, McBride’s most recent assignment was as the general manager of the 248-room Ritz-Carlton in Kuala Lumpur. Opened in 1998, the hotel was named “Best Hotel in Asia-Pacific” in the eighth Business Traveler Asia/Pacific magazine Travel Awards Subscribers’ Survey and, for two consecutive years, “Best Business Hotel in Malaysia” by Business Asia and Bloomberg Television.1 As Nikheel Advani, food and beverage services director for the Washington hotel, noted: “James is excellent—we have opened many hotels together. In the place where you didn’t think that it had a chance, he made it the best hotel. That’s his talent. That’s what he can do really well. It’s for the entrepreneurial person who wants to get involved and who thinks they can make a difference.” Do No But this was a new situation, even for McBride. For the first time, The Ritz-Carlton was opening a hotel that was part of a multi-use...
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...Ritz Carlton Management Objectives & Goals Dwight Torres American Military University Abstract Ritz Carlton hotels are considered to be the leader in the luxury line of fine hotel accommodations. We will use online and offline references to explore and research how this came to be. We will consider the history, leadership, and management of the hotel brand in order to better understand their current position in the industry. In addition, we will focus on the employee recruitment process and the extensive training required to sustain the Gold Standard in this very competitive and sophisticated market. The Ritz Carlton’s Credo, Motto, and Three Basic Steps are the highlight of their success. Everyone at the Ritz is focused on ensuring his or her guests have a memorable experience. Keywords: Gold Standard, Credo, Motto, and Three Basic Steps In order to understand how the Ritz Carlton Hotel became known as a world-class hotel, first we must understand the history of the Ritz. Established by Cesar Ritz who was known in Europe as the "king of hoteliers and hotelier to kings", he redefined luxury accommodations with his management of The Ritz in Paris and the Carlton Hotel in London. Between 1905 and 1914, he and Auguste Escoffier opened several a la carte restaurants known as Ritz Carlton aboard well-known luxury ships. Unfortunately, as a result of World War I the Ritz Carlton chain or luxury restaurants ceased operating in 1914. Cesar Ritz died shortly after...
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...University Centre “César Ritz“ Ritz-Carlton’s Human Resource Management Practices and Work Culture Submitted on Wednesday, 10th December 2008 by: 182538 182520 182515 Word Count: 1.575 Submitted to: Mr G. Cocker MGT 351 Organizational Behaviour Executive Summary: • The first Ritz-Carlton opened in 1898 in Paris and since then a lot of changes took place which led the company to the nowadays success. • Training methods and the introduction of globally accepted standards are important to ensure quality • Advantages are high customer and employee satisfaction • Disadvantages are the lack of individuality and high costs • Training reduction would support employees individuality Table of Content: Introduction - 4 - Short Historical Overview - 4 - Ritz-Carlton’s Training Methods - 5 - Advantages and Disadvantages of Ritz-Carltons’ Training Methods - 7 - Conclusion - 9 - Reference-List - 10 - Introduction: Ritz-Carlton, belonging today to Marriott, implemented a lot of different training strategies during the last 30 years which led the company to success with increasing customer satisfaction, lower employee turnover and even winning prices for their training. The Case-Study “Ritz-Carlton’s Human Resource Management Practices and Work Culture” introduces exactly these training methods and focuses on the advantages, but disregards the disadvantages...
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...Table of Contents 1.0 Executive Summary 2 2.0 Introduction 3 3.0 Brief Description of the Company 4 4.0 Analysis of Customer Relationship Marketing Strategies 5 4.1 The Value Proposition of Ritz-Carlton 5 4.2 The Concept of Experience Economy 6 4.2.1 The "wow effect" of the Company 6 4.3 Four Tier Customer Pyramid 7 4.4 Customer Relationship Management 8 4.5 Customer Complaint and Gap Model 9 5.0 Conclusion 10 6.0 Recommendation 11 7.0 References 12 1.0 Executive Summary The purpose of this report is to analyze the relationship marketing strategies by selecting one service organisation from certain industry and suggest five recommendations for the service organisation to improve its relationship marketing strategies. The introduction of this report started with the introduction and brief description of organisation about the history, objectives, achievements and competitive advantage. The body of the report will be the analysis of the customer relationship marketing strategies of the organisation. This part will explain about the value proposition of the organisation, followed by the concept of the experience economy and development of "wow effect". After that, application of the four tier customer pyramid will be discussed and also analyze how the organisation conducts its customer relationship marketing to build a loyal customer base. At the end of the body part, the processes that the company handle its customer...
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...Questions Relating to the Ritz Carlton Case Study 1. What is the essence of what the Ritz Carlton is selling? 2. How does the Ritz Carlton create Ladies & Gentlemen in only 7 days? 3. Should McBride change the 7 day countdown? 4. How would you experiment in this kind of business? 1. What is the essence of what the Ritz Carlton is selling? To its customers, The Ritz Carlton is selling Excellence; A quality driven package of unrivalled personal service, attention to detail, anticipation of and taking care of every need, and above all, respect. To treat every customer as a Lady or a Gentleman. When Patrick Mene joined The Ritz-Carlton in 1990 as the Chief Quality Officer, his primary mission was to integrate and prioritize the values and concepts of the Malcolm Baldrige National Quality Award criteria at all the company’s hotels around the world. MBNQA is presented annually by the President of the United States to organizations that demonstrate quality and performance excellence The “Baldrige Criteria for Performance Excellence” are listed as: • Leadership • Strategic planning • Customer and market focus • Measurement, analysis, and knowledge management • Human resource focus • Process management • Business/organizational performance results The Ritz-Carlton applied for and won the award again in 1999, becoming only the second American company to earn the distinction more than once. Leadership: The management of the organisation has a considerable...
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...Table of Contents Introduction 3 Aon Hewitt engagement model 4 Work 5 Opportunities 5 Quality of Life 5 Policies and Practices 6 People 6 Reward 7 Employee Engagement measure 7 Conclusion 8 References 9 Introduction In the hospitality industry, the employees play a crucial role in satisfying the customers. Top-performing managers recognize that having high-performing employees is essential for growth and survival in business (Harvard Business Review, 2013). Three out of four managers consider employee engagement as the key factor to the overall success of an organization (Harvard Business Review, 2013). Employees that are positively engaged in the company’s business have higher productivity and end up bringing more profit. It, essentially, engages the workers to perform for the best of the company (Harter, Schmidt, & Hayes, 2002). Employee engagement quickly became one of the holding pillars for Ritz-Carlton’s success. In the overall engagement ranking of groups that Gallup is researching, Ritz-Carlton is placed in the upper quartile compared to other companies (Robison, 2008). Results in employee turnover rates are also renown for the industry: 18% instead of the 158%, 136% and 129% industry averages for line, supervisor and management employees respectively (Robison, 2008). Their approach to the different segments of employee engagement is best described through the AON Hewitt Engagement Model. Aon Hewitt engagement model Aon Hewitt attributes...
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... Introduction For the opening of The Ritz-Carlton hotel in Washington D.C. the company once again aims to achieve an excellent standard of service quality. Their excellent service is one of the main strengths and the company highly values its employees, recognizing them as one of their most important resources. The following paper will provide a thorough analysis of the case using theories that could help the Ritz-Carlton deciding on how to achieve their usual standard. Best-fit elements in Ritz-Carlton Every company has its own environment, its context in which to try and make operations as successful and rewarding as possible. Different countries, sectors, systems and employee groups are all part of it (Boxall and Purcell, 2008), while there is an increasing awareness that human resources are of high importance to a company’s performance. Considering the people of a company being such an important resource, the challenge occurs to align human resources with the company’s strategy at best possible, in order to reach its goals. This best-fit theory includes a horizontal fit, meaning the fit between different HR practices in order to establish one coherent HR system. It also includes the vertical fit, meaning the alignment of the company’s strategy with the HR practices throughout the company (Delery, 1998). The Ritz-Carlton management aims to be excellent in what they do: providing excellent service, which as they say accidentally occurs in the hotel-business. The company follows the...
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...“Quality at the Ritz-Carlton Hotel Company” Case Summary [pic] Ritz-Carlton Hotels, California, USA Short Description of The Case Company History Ritz Carlton merupakan merek sebuah hotel mewah yang saat ini mempunyai 71 properti di kota-kota besar di 23 negara. Ritz Carlton juga mempunyai lembaga pelatihan dan pusat kepemimpinan yang dibuat oleh pimpinan Ritz Carlton, Leonardo Inghilleri. Lembaga ini telah melatih sedikitnya 50 ribu perusahaan di seluruh dunia. Sejarahnya, nama Ritz Carlton merupakan gabungan dari dua nama hotel yang berbeda. Yaitu, hotel Ritz di Paris yang berdiri pada tahun 1898 dan Hotel Carlton di London. Dua hotel ini dikelola oleh seorang legendaris pengusaha hotel, Cesar Ritz. Kemudian nama Ritz Carlton menjadi acuan beberapa hotel lain yang kian bermunculan. Antara lain, Ritz Carlton Montreal yang berdiri pada tahun 1912 dan Ritz Carlton Boston pada tahun 1927. RC Boston ini kemudian berkembang sebagai komunitas kelas tinggi. Pada tahun 1983, hotel ini memulai jaringan hotel dunia yang dipimpin oleh pengelola hotel bernama Horst Schulze dan William B Johnson. Beberapa hotel Ritz Carlton dibangun di Amerika pada dekade kedua dan ketiga abad 20, termasuk salah satunya di New York pada tahun 1917 dan Boston pada tahun 1927. Perusahaan Ritz Carlton saat ini seluruh sahamnya dimiliki Marriott Internasional. Perusahaan hotel Ritz Carlton saat ini kurang lebih mempunyai 38 ribu pegawai. Pusat pengelolaan Ritz Carlton berada di Chevy Chase...
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...Analysis of Ritz Carlton’s Success Abstract For over 100 years The Ritz-Carlton has set the standard for luxury and lifestyle hotel service. The chain has expanded to 81 properties in 27 countries and employees 38,000 people while continuing to win quality and service awards, receive consistent accolades from independent reviewers and maintain strong financial performance. This paper analyzes the underlying factors associated with this consistently superior performance and in particular how this is accomplished on a global scale. Through a well-defined set of values and philosophies and consistent application proven leadership and management methods, The Ritz-Carlton truly has developed into the gold standard of luxury hotel accomodations. Analysis of The Ritz-Carlton’s Success The Ritz-Carlton proudly announces on their website: You can't be a legend without a great story... The Ritz-Carlton has been recognized with numerous awards for being the gold standard of hospitality. Now with 81 properties in 27 countries and 38,000 employees, The Ritz-Carlton continues to achieve this superior service level regardless of the workforce or culture of a country in which it operates. The hotel chain accomplishes this through a combination of culture, policy, procedure and management methods that they refer to as The Gold Standards. In fact they lay out these standards for the world to see. Not only are the Gold Standards outlined on their web site; they even go so far as...
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...The Ritz-Carlton Case Study Columbia Southern University Providing exceptional customer service adds value to a company’s brand and builds lasting relationship between a consumer and a company. These relationship are vital to the growth of a company and stability of a company. The Ritz – Carlton, a luxury hotel brand, is known for providing exceptional customer service to its guest who stay at the hotel. The first class customer service the employee showcase is the reason this well-known luxury brand has been able to stop ahead of its competitors. Competitors have tried to achieve the level of customer service but have not been as successful as The Ritz - Carlton. According to Kotler (2012), The Ritz - Carlton philosophy is “We are Ladies and Gentlemen serving Ladies and Gentlemen”. Having this philosophy means The Ritz – Carlton not only care about the guest but their employees as well. If the employees feel valued as a person and not just a worker, then they will be able to provide the highest quality customer service to the guest. According to Kotler (2012), The Ritz-Carlton pledge is to provide the finest personal service and facilities to our guest who will always enjoy a warm, relaxed, yet refined ambiance. Employees of The Ritz-Carlton not only provide exceptional customer service but look exceptional by dressing formal in a morning coat and black or white tie. The key difference between The Ritz- Carlton and its competitors is the service training provided...
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...at that time due to substantial higher cash flows than the interest charges.Later,Marriott experienced two financial crises,which were due to limited partnerships in 1989,where Mariott experienced a sharp drop in income and the 1990 real estate market crash.This resulted in Marriott’s stock prices to fall more than two-third,which means a drop of $2 billion in market capitalization. This was the first time that investor-owned Marriott hotels went bankrupt. In order to improve and bring back the financial stability and also inprove the financial condition of Marriott, the CFO proposed restructuring the company under a project named Project Chariot.Due to the economic downturn in the early 90s and the Tax Reform Act of 1986,Marriott had limited ability to raise funds.This resulted in large interest payments on property, which basically left Marriott with lots of debt.Under Project Chariot, Marriott would seperate companies. One is called Marriott International,Inc(MII), which would comprise Marriott’s lodging,food,and facilities management business. The other one was to be named Host Marriott Corporation(HMC), which would retain Marriott’s real estate holdings and its concessions on toll roads...
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