The Crossroads Hotel Case Analysis

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in turn would then report directly to the Secret Service, the franchise, and to the credit card companies. The young four-eyed geek, who flew in from the Midland Region carried the key to unlock the mystery. A typical nerd analyst, knowing the ins and outs of all the computer systems, Japes worked him as best he could, establishing a quick relationship while attempting to decipher what happened. Although the youngster could not say officially what occurred, he soon recognized the malignant software cleverly attached through the Internet onto the hotel's computer. He recognized this program from another hotel and showed Japes how access was made from the parent companies reservation system. The Crossroads Hotel in and of itself did not allow the breach, but the franchise, which the Crossroads annually paid hundreds of thousands of dollars in fees’ appeared culpable. Furthermore, these breaches happened at many other franchised hotels throughout the country. Despite not being culpable the hotel made many physical and technical changes at its own expense, to essentially protect itself from the franchise. This was probably not a good sign when a business had to protect itself from the entity that set the standards. …show more content…
Japes and the accountants decided not to pay the franchise fees until the amount equaled the quarter million dollars in lost revenue. They would let the lawyers fight it out as to who was liable for the breach, but in the end the franchise made the Crossroads Hotel whole again. The franchise, fined five million dollars and spending millions more on correcting the reservation system, kept it all under the radar. Funny thing, despite the fact that Japes and Bombay had nothing to do with the breach, the two received no thank you for handling the crisis. They were rewarded with increased workloads and

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