7. Does this decision affect the success of Four Seasons?1 2 3 4 Cancelling the contract is not a feasible option. Hotel opens in January 2001 Ritz cannot observe Four Season`s actions.
8. Ritz Carlton should extend the countdown and increase initial occupancy rates. Ritz-Carlton Hotel Company 5 Should Ritz-Carlton heed Brian Collin’s requests? What are the impacts of altering the “Seven Day Countdown”? What are the impacts of opening closer to 80% occupancy? How does this affect our relationship w/ Millennium Partners? What is Four Seasons doing that could impact our decision? Extend countdown and increase initial occupancy rate. Extend countdown but maintain typical occupancy rates. Reject Brian Collin’s requests. Extend countdown and increase initial occupancy rate.
9. Accommodating Collin’s request best aligns with Ritz Carlton’s overall key success drivers. Ritz-Carlton Hotel Company 6 Alignment with Criteria High Medium Low
11. Accepting Collin’s request yields attractive benefits. Opening at a higher occupancy rate provides earlier cash flows for reinvestment in other projects. Less lag time between offer and start of work term reduces relationship building costs. Provides confidence for future projects with current and future partners. Ritz-Carlton Hotel Company 8 Reduced Post-Hire Costs Earlier Cash Flows SERVICE CULTURE Long Term Enhancement of Partnership Professional Service is at the core of Ritz Carlton
12. Increasing overall occupancy each month leads to large increases in year end cash. Ritz-Carlton Hotel Company 9 Extra Week of Training (+$75,000) +0.25% in Total Occupancy Figure 1: Projected Ending Cash Balance
14. Ritz Carlton is facing three key risks going forward. Ritz-Carlton Hotel Company 11 Brand Risk Vet the new training process with all levels of management at Ritz Carlton to ensure it aligns with the company’s core values. Quality Risk Extended training will ease new employees into their jobs, and better prepare them to handle an increased opening occupancy rate. Partnership Risk Involve Millennium Partners in the creation of the new training program to generate buy in, and build confidence for future hotel opening.
16. Ritz Carlton needs to act now to meet Collin’s expectations. Ritz-Carlton Hotel Company 13 Continue other preparatory activities for the January 2001 Opening. High Contact new hires to advise them of new training timeline. Launch revised countdown training program. Inform Ritz Mgmt of Change in Training 1 Week Priority Engage MP in training development. Vet revised training by upper Ritz management. Medium Begin revising countdown schedule 1 Month Determine length of revised countdown plan. Low Time from Today 3 Month
17. Ritz-Carlton Hotel Company 14 “As soon as two people come together, conflict will arise. It’s not the fact that we have conflict – it’s what we do with it. We all have the same dream of excellence; we all have the same goal: to be successful.” - Howard Schulze
1. Extra cost per week of training need only be covered by a 0.25% increase in
Internal buy in to ensure brand perception is not changed from within the companyHigher occupancy rates, more stress on employeesBig partner, involve them in the process. To prevent them to work with 4 seasons
