...2 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...
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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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...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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...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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...corporate culture, the Ritz-Carlton managers were not sure about if the customers would be satisfied or not. It was a risked challenge because of the type of customers the Ritz-Carlton hosts because they are very demanding and exacting. To maintain this new culture, the managers reinforce the knowledge of the employees about company values and service techniques. Employees constantly learn about the company values, during the 15-minute “lineup” sessions at each hotel property; this helps to maintain the company culture. Moreover, the new employees are selected according to their knowledge, their passion, their will to serve other people. The Ritz-Carlton only selects dedicated and motivated employees to represent the company cultures and values Question 3 A person with a friendly attitude and a positive outlook would be the happiest in the Ritz Carlton environment. Someone who is not afraid of change and is dedicated to making the customers happy. The new employees would best learn the culture of Ritz Carlton environment by going through the day-to-day rituals, interacting with other staff members and customers. I also happen to agree with the new Ritz Carlton approach, which is allowing their staff to communicate with customers in a more natural manner rather than the scripted one. The more time one spends in that working environment the faster one would learn their culture. Question 4 Other companies could learn from the organizational culture of Ritz in the way they...
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...Ritz Carlton- Case Study 1. How was the business environment (internal/external) of the company? Business environment is the sum total of all factors external/internal to the business firm and that greatly influences their functioning. This interaction helps in strengthening the business firm and using its resources more effectively. 1. Internal Business Environment: Ritz Carlton was in the Hospitality industry and ran 30 Luxury hotels across the world. Their philosophy was to combine commitment and innovation to provide best-in-class service to their customers. 2. External Business Environment: It was obviously a very competitive market and players were always trying to improve their standing in the market. The head of the Carlton group was aware of this environment and although his group was one of the leaders in the market, he knew that a status quo will definitely do irreparable damage to the group. They wanted to build the image among the customers. He has now thrown open a challenge to all the hotels in the group and asked each of them to come up with ideas to make the business more competitive. 2. How did the company manage the team implementation? 1. New teams implemented: An announcement was made to shift the operations of the hotel from the existing structure to team based structure. The implication was that there will be no managers, only teams. The team as a whole would now manage itself, and not be managed/supervised. Many teams were created in charge of different...
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...identifiable, and sensitive information to many people rapidly. In this era of revelation—dominated by portable electronics, intemet social media, reality television, and traditional talk radio—^many of us are losing our sense of privacy, our taste for privacy, and our willingness to respect privacy. Is this set of losses a bad thing? If it is a bad thing, what can be done about it? My refiections on these questions begin with a series of diverse examples from the past several years. The examples illustrate the emergent ethos of our revelatory era. The first and second examples portray voluntary self-revelation for amusement and monetary gain; a third and fourth example depict revelations conceming others, motivated by a desire for amusement in one case and geopolitical justice in another. Former Congressman Anthony Weiner was a Democratic member of the United States House of Representatives elected by the people of New Anita L. Allen, J.D., Ph.D.,...
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...HERRAMIENTAS DE CALIDAD Entrega 8: Hoteles Ritz-Carlton Integrantes: - Vargas Morales, Marcel Arturo - Garay Salazar, Luis Antonio - Dapello Perez, Paolo - Zamora Palomina, Henry Armando - Enciso Deza, Paula Leonor Profesor: - CULQUICHICON CACERES, CARLOS FELIPE - 2011- 1. Promesa de Calidad: Ritz-Carlton es una marca de hoteles y resorts enfocados a clientes pertenecientes al sector económico alto, con 70 propiedades ubicadas en muchas de las grandes ciudades de 23 países de todo el mundo, que buscan diferenciarse de su competencia ofreciendo profesionalismo en el servicio, pues tienen como objetivo el seguir posicionándose como una cadena de hoteles lujosa que sobresale debido a su servicio: “Cualquiera puede vender habitaciones, vender comida, vender bebidas pero no todos lo harán como nosotros (Ritz Carlton), nosotros nos diferenciamos del resto por nuestro profesionalismo en el servicio.” Es pocas palabras, la Promesa de Calidad primordial del Ritz-Carlton es brindar un servicio en donde la comodidad y cuidado del huésped es lo primordial, y ser excelentes en ello. En base al compromiso que adoptan con respecto a la satisfacción de sus clientes se establece una Política de Calidad bajo las siguientes directrices: • Compromiso y Respeto: La cadena busca tener empleados que se diferencien de los demás hoteles, que no solo trabajen para ellos sino que se les unan y adopten la Cultura Organizacional propia, conociendo las metas en común e identificándose...
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...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 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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...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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...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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...to our international market. This report will include the following information: · Star vs Diamond : The Diamond Rating Defined · Importance of Five Diamond and luxury branding in industry · Areas to be evaluated by Hotel Bienvenue to upgrade rating to Five Diamond · Expected Benefits to be obtained as result The Hotel Bienvenue has been respected for years as a Four Diamond hotel. Its recent drop in revenue and guest room nights has shown to be a cause for concern by the management team. This report will highlight the diamond rating system currently in place and also define the steps for us to rebrand as a Five Diamond resort, as well as discuss the benefits being received by current brands of same rating– in particular, The Ritz Carlton Reynolds Plantation - to maximize brand strength and revenue on a global scale. Star / Diamond Rating System: Mobil Company is responsible for the “star” rating whereas AAA (American Automotive Association) is home to the Diamond Rating system. Whereas both as credible, the standards are pretty much the same and the only difference is that AAA rates and has almost 3 times the amount in the portfolio of AAA which has most of Mobil’s properties listed on diamond tier ratings as well. Almost anywhere in the world you go today for travel, there is a report or website with feedback on the “rating system” of a hotel and its customer feedback. AAA (American Automotive Association) has defined a set of guidelines that allow a hotel or restaurant...
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...Case Analysis: The Ritz-Carlton Hotel Company Summary of Case Situation In the case “ The Ritz-Carlton Hotel Company,” McManus and Sucher (2005) mentioned that Ritz-Carlton Hotel is a five-star luxury hotel and resort which operates 81 luxury hotels and resorts in major cities and resorts in 26 countries worldwide. The company was founded in 1898 by Cesar Ritz, who had a vision to create a legendary service combined with exceptional luxury experience. Ritz-Carlton is well known as service leadership since they have an unusual and notable commitment to providing luxurious quality service to guests. Also, they are the only service company in America that has won the Malcolm Baldridge National Quality Award twice. Not only a commitment to its guests Ritz Carton had made, but also members, employees and communities they had pursued an excellence for. More precisely, Ritz-Carlton's unique culture promises to providing a good working environment by making its employees feel their importance. Based on the case, McBride, general manager of the new Ritz-Carlton in Washington, D.C., is responsible for opening the second Millennium Partners-owned Ritz-Carlton, in Georgetown, at the end of 2001. However, Collins, manager of hotels for Millennium Partners, pressured him about new ideas of luxury service and hotel-opening process. At this point, McBride needs to reexamine the "Seven Day Countdown", the traditional hotel-opening process, but the question is should he change Seven Day Countdown...
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...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 improvements in employee performance to psychological and behavioral outcomes of engagement (AON Hewitt, 2013). The Aon Hewitt model examines both the individual’s engagement outcomes and the potential engagement drivers that are part...
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