The Portman Hotel Company

1069 Words5 Pages
Objective: How can The Portman Hotel Company get rid of the weaknesses in the structure of its organization and at the same time keep its costs low? PESTC Analysis Economic: • Portman’s rates were slightly higher than the others: from $185 to $320.Budgeted goal for the average tariff was $220. • Personal valets were a labour intensive strategy and labour cost was three times greater in America than in Asia. • Industry analysts predicted that there will be overcapacity in terms of no. of luxury hotel rooms available in San Francisco. Social: • Existence of unions in the hotels in San Francisco. Cultural: • Introduction of Asian style of service in the US hotel industry through 3 new hotels – Portman, Mandarin & Nikko SWOT: Strength  Revolution in guest service  PV’s key competitive difference for the hotel  More employees in front of the guests  Selecting right people meticulously  Commitment to stay in job for at least a year  Employees able to coordinate work, pool tips, 2 consecutive offs and guaranteed hours.  Management does not give up on people even after poor performance  People 20% more effective than what Mene had originally expected  Associate contract system that gave tangible rights to the employees Weakness  Base pay of valets same as maid’s in comparable hotels even though the job was much broader in scope.  About 80 % of PV’s job comprised of cleaning and the esteem needs of the employees were neglected. Cleaning made it harder to serve guests  Frequent tensions with other groups because of lack of coordination.  The hotel is disorganized. No central character  Constant reassignment of work made the job of PVs all the more difficult  PV’s had to cover up for one another making it easier for some people to steal tips  Floaters made it difficult to pool tips, could not build long lasting

More about The Portman Hotel Company

Open Document