Roaring Dragon Hotel

427 Words2 Pages
Introduction: The Roaring Dragon Hotel was a state owned enterprise. It was one of the original hotels in south-west China. It had enjoyed a long, colorful history and a reputation as the region’s premium guesthouse. The customer clientele and revenue were declining. RDH needed a way to improve customer service and modernization. Background: The government was concerned that the potential of the hotel was not being realized. In 2001, they searched for an international company to buy the organization. Hotel International was the right company, with the right reputation, credentials and brand name to take over the management and help realize the RDH’s potential. Paul Fortune was the GM for HI, came from England in April 2002 to the preparations for RDH. Problem: The challenge was to transform a large group of family-based employees, working under an ad-hoc management style, into a professional group of dynamic employees operating within a structured international organizational culture. Fortune also realized that many of the existing staff, who had been employed for as long as 30 years, were limited in their work professionalism and the ability communicate in English. Opportunities: Fortune has to reduce the number of employees from 675 to 350 employees by November 2002. A two month training period for all employees would being in search for employees with the right attitude and ability. They need to use some of the RDH employees to help keep the business going because of their connections. Recommendations: • Do not do away with the guanxi. That is what kept the hotel running. • The training program should be for 90 days and lays offs should be based on performance, quality, and experience, not how fast you are. • HI should have kept all the employees in the loop as to what was going on. • Research the Chinese
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