Ritz Carlton Case Study Essay
Table of Contents 1.1 Introduction 2 1.2 Issue Identification 3 1.3 Solution 4 184.108.40.206 Reduced Price 4 220.127.116.11 Increasing Price 5 1.4 Solution 6 1.5 Execution to the Solution 6 1.5.1 Processes 7 18.104.22.168 Cost Implication of extended training period (14 days) 7 1.5.2 Reallocated Budget 7 1.6 Conclusion 9
Mr. James McBride is under tremendous pressure to prove his mettle. He has been appointed as the General Manager of the Ritz Carlton which will be shortly opening at Washington D.C. the major challenge he …show more content…
The researcher feels that the suitable solution for solving James McBride’s dilemma would be to increase the prices by a margin of 10%. By increasing the prices by 10% the hotel would be able to achieve or target the higher market segment as enjoyed by the Four Seasons.
This also takes into account the Veblen effect as given by Theodore Veblen who said that with the increase in price the demand also increases which is an exception to the law of demand. However, the solution will be viable only if the existing customer will get value for money or else they may not show their loyalty towards the hotel. 1.5 Execution to the Solution
James McBride and Brian Collins
Ritz Carlton and Millennium Partners
Employees, Millennium Partners Customers
It is in the interest of all the stakeholders that the solution is executed properly. Proper execution of the solution is the most important aspect of decision making to overcome challenges.
There may be certain segment of customers who may not be willing to pay the 10% increase in prices. Thus, Ritz Carlton may have to recheck the strategy for 7 days training period. On the other hand it the same program because of which the Ritz won Malcolm Baldridge National Quality Award amongst all the hotels.