California Consumer Privacy Act ServicesCalifornia Consumer Priv.docx

California Consumer Privacy Act Services
California Consumer Privacy Act
The California Consumer Privacy Act is sweeping legislation
that creates significant new requirements for retaining,
protecting, managing and deleting consumers’ privacy
information. Under the Act, consumers will have the right to
know what personal information a business has collected about
them, whether their personal information is sold/disclosed and
to whom. In addition to other requirements consumers will
have the right to request certain information from businesses,
including the sources from which a business collected the
consumer’s personal information. Once the request is made,
businesses must disclose the requested information free of
charge within 45 days. With some exceptions, consumers can
request that personal information a business has collected be
deleted. With a relatively short deadline coupled with
potentially significant penalties, organizations need to start
developing a program now.
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Case Analysis Worksheet
This form can be used to organize your thoughts about a case.
As you perform your analysis, remain open to the fact that your
interpretation of the facts may change. As a result, you should
repeatedly revisit your answers to these sections as you progress
through the case.
Define the Problem: Describe the type of case and what
problem(s) or issue(s) should be the focus of your analysis
List any course concepts that can be applied: Write down any
principles, frameworks or theories that connect your course to
the issues of this case.
List relevant qualitative data: Evidence related to or based on
the quality or character of something.
List relevant quantitative data: Evidence related to or based on
the amount or number of something.
Describe the results of your analysis: What evidence have you
accumulated that supports one interpretation over another.

Describe alternative actions: List and prioritize possible
recommendations or actions that come out of your analysis.
Describe your preferred action plan: Clear statements of what
you would recommend. May include short, medium and long-
term steps to be carried out.
Regal Carnation Hotel Outline
I. Executive Summary
II. Problem Statement
a. In your problem statement, you might consider including a
review of the key issues (or categories of key issues), the
protagonist, and your root cause analysis (if necessary).
III. Root Cause Analysis
a. Key issue category 1
i. 5 Whys/RCA
b. Key issue category 2
i. 5 Whys/RCA
c. Key issue category “n” (if there are “n” categories of key
issues)
i. 5 Whys/RCA
IV. Alternatives – Generate alternatives “mindful” of the root
cause
a. Alternative 1
i. Critically examine the costs and benefits or the merits of
alternative 1
b. Alternative 2
alternative 2
c. Alternative “n”
alternative “n”
d. Synthesis
V.

Solution
/Recommendation Set – Your solution should be “derived” from
an analysis of alternatives
a. Recommendation 1
b. Recommendation 2
c. Recommendation “n”
VI. Implementation
a. Implementation consideration 1
b. Implementation consideration 2
c. Implementation consideration “n”
VII. Concluding Statements
The case revolves around the Regal Carnation Hotel, located in
Guam. Partly narrated by Steve McKenzie, he described his
experience with the Regal Carnation Hotel. In his description of
the situation, the “me too” approach to hotel management led to
poor service, false representation, and a pricing plan that does
not match the value of the hotel. The hotel industry in Guam has
important statistical information that will lead to an effective
analysis.
Over a period of years, Guam has experienced a boost to its
tourism industry. The year 1967 was the beginning of that

upward trend. that includes support from the United States.
However, the decline of the Japanese economy in the 1900’s
and onward severely damaged the economy of Guam. How many
of us can attest to looking up a product or service online, seeing
its respective pictures, only to find out that the actual product is
dissimilar to the original picture? The excess room inventory in
the hotel industry paired with the decline in the general tourism
of Guam could only lead to failure. In other words, supply
greatly outnumbered demand. Additionally, applying a “Me-
too” approach to hotel operations in such conditions can have
limited success. Research has shown that piggy backing on
others in the industry can often lead to failure, because
companies employing this tactic rarely see the need to
differentiate with a product or service. It can be assumed that a
“me too” company’s sole intention is to capitalize on the
success of another company and the upward trend of a fad.
McKenzie clearly observed and often commented on the issues
he saw, like the unkempt meeting room and aged furniture. This
brings out another aspect of a “me too” company in that usually
those who employ this tactic place reinvestment in a lower
priority. Could the Regal Carnation benefit from a shift in
focus? We find that the use of our gut when making decisions
can have a positive effect. In contrast, the McKenzie’s failed to
follow their gut instincts when they decided on the Regal
Carnation Hotel.

We believe when the McKenzie’s decided to choose a hotel,
they did not do a thorough research and follow-up. The situation
becomes more complicated by the fact that the vacation choice
was practically located in a foreign despite Guam being a
United States territory. In the beginning process of making their
arrangements, there were several situations where the
McKenzie’s failed to use their gut instincts. The McKenzie’s
relied too much on the hotel’s website and failed to follow
through to verify the validity of the information on the website.
When considering one’s gut intuition, there are certain cues that
can be picked up on to hint at if there is a problem. For the sake
of this analysis we equate cues with “red flags”. One such red
flag is related to how it took too long to confirm the price and
room availability. Mr. McKenzie’s uncomfortable reaction
illustrates that he recognized a red flag. The hotel’s mixed
reviews can be seen as a second red flag that supported his gut
instincts to not do business with the hotel. Last but certainly not
least is the fact that the Regal Carnation required a one hundred
percent non-refundable reservation fee.
Taking into account some of the practices of the Regal
Carnation Hotel we thought certain questions could clarify the
situation. One question that stood out was “Why would a hotel
ask for such a fee if the value of the hotel matched the value
depicted on their website?” When a hotel wants all monies up
front with no possibility of a refund; as is the case with the

Regal Carnation hotel, aren’t they sending a symbolic message
to the potential customer that would carry on the appearance of
bait-and-switch? In this situation the potential customer
generally would have no way to verify if the price is worth the
value of the hotel. At the point of purchase, the customer is
locked in to stay so once they arrive at the hotel, whether they
choose to stay at another hotel or not, Regal Carnation has made
the sale.
The second question we posed is what successful hotel would
require a one hundred percent non-refundable fee? Mr.
McKenzie was immediately uncomfortable with the policy of
the hotel. In his line of business, he knew that a successful
company would not follow this procedure, when booking a
customer’s reservation.
Our second question was “Did the Regal Carnation always
misrepresent itself on the website and was this intentional.”
Looking at the case, it states that the tourism industry was in its
maturity state by 2007. During this time hotels were running
elaborate campaigns to make their hotels and business stand
out. But with the declining pool of tourists, there was less profit
to be made and as a result less money to reinvest into the hotel.
It is no surprise then; that given time and diminished incentive
to reinvest, that the website told a different story than reality. If
the McKenzie’s would have researched a little more, followed-
up on their gut intuitions about the Regal Carnation, and

considered how it fits in with Guam’s overall economy and
history perhaps they would have realized the fallacy of deciding
upon value based solely on a website.
It is commonly believed that each product in business goes
through what is called a product life cycle. It can typically be
divided into four distinctive categories. Simply put,
Introduction, Growth, Maturity and Decline are the four names
that describe the different sections. Guam’s tourism industry is
currently going through the Decline stage of the product life
cycle.
Guam’s hotel industry peaked at sometime around the year
1997. During this period, Guam’s hotel industry had the highest
number of rooms’ available (1.38 million) with a 76 %
occupancy rate at an industry high room rate of $124. At no
point prior to this point or since does the industry ever reach
that milestone. This is why we feel the industry has passed its
maturity stage and is currently experiencing a decline. From
1990 to 1997, the industry experienced a 72.2 % occupancy
rate. In contrast, the next eight years failed experience the same
kind of success. From 2000 to 2007 the industry experienced a
59.4 % occupancy rate. This shows that the industry is in
decline. In fact, if the data is broken down into three year
periods, the decline started in 1996. 1996 to 1999, 2000 to 2002
and 2003 to 2005 showed a 64, 59.3 and 56 percent room
occupancy rates respectfully. Some of the data appears to show

that the industry is following an upward trend, albeit not a
drastic positive change. Exhibit 4 points out that occupancy
rates in 2007 are hirer than those in 2006 and 2007. Similarly
exhibit 2’s “Guam Visitor per Year 1996-1997” supports the
assumption of a recovery. This information is misleading
however. We feel that the data provides too much information
and does not allow viewers to truly see the big picture. In this
case we make the assumption that more visitors and higher
occupancy rates should equate to the Regal Carnation doing
better. But as we have come to learn by the various materials in
the class we read and discussed, underlying assumptions can be
wrong. In the Invisible Gorilla, a student who decided to
receive weekly or monthly information on funds A and B earned
less money when compared to students who decided to receive
information on the funds every five years. “The Subject who
received feedback every year or every five years saw that the
stock fund outperformed the bond fund, but they did not see the
difference in variability.” In both cases from the Invisible
Gorilla, the underlying assumptions based on the frequency of
data determined whether the outcome was positive or not. When
looking at the trend line in hotel occupancy rates, one could get
a clearer picture like that of a weather forecaster, by looking at
the overall trend and not the yearly fluctuations.
The case pointed out that Guam’s hotel industry is suffering
from a low retention rate. Repeat Japanese tourists only account

for a third of the year’s tourists. They make up such a large
portion of the market; any change in the Japanese tourist trend
would have a dramatic effect on the outlook of the industry.
Unfortunately the Japanese people are not likely to go on
vacation.
It is commonly believed that Japanese citizens are workaholics.
Their strong work habits leave very little time for vacation.
According to an Expedia.com – 2009 International Vacation
Deprivation Survey, Japanese citizens tend to take only eight
days out of their average 15 days of vacation. That is less than
any other country in the survey. Adding 92% of Japanese who
do not taking all of their vacation time (compared to 22% of the
French and 34% of Americans) with relatively low repeat
customers, and a continuing expanding hotel business, Guam’s
high occupancy rate during the late 1990’s could not be
maintained. On top of all this, the Japanese economy has been
in a steady decline since the 1990’s.
Benjamin Powell, author of “Explaining Japan's Recession”,
points out that the Japanese economy has been in a decline since
the late 1980’s. Property value fell by 80% between 1991 and
1998 and unemployment rose from 2.1 percent in 1991 to 4.7
percent in the year 2000. This may explain the spike in tourism
during the late 1990’s. The Japanese may have felt that the
recession and high unemployment (relatively) were a short term
problem. Despite the reason, the Japanese people could not

sustain the tourism industry in Guam. Their new local economic
problems may have forced them to abandon any hope of going
on vacation. They may have felt that saving their money would
have been the best thing to do. This would explain why the
conditions in the Regal were so poor.
The pictures the Mckenzie’s seen on the Regal Carnation’s web
site may have been accurate. The furniture in the lobby could
have been replaced piece by piece after the initial pictures were
taken. The decline in occupancy would explain why
management would decide not to purchase compete furniture
sets, why the Regal employee was using his own car and why
the meeting room furniture had layers of dust and grim on it.
When there is a decline in revenue, hotel staff may have been
the first thing to be cut.
Most of the hotels in Guam are located within 2 mile of each
other (Google map Search). This makes it difficult for
customers to choose which hotel best fits their needs. The
Mckenzie’s are a prime example. The Regal is close to the city
and close to the beach. This is basically the same for most of
the hotels. They decide to purchase a lower rate hotel because it
is has access to other hotel amenities like beachfront access.
There doesn’t appear to be any distinctive qualities that separate
them. Most are located on or close to the beach, has a gym,
meeting room and a restaurant on the property and are current
priced between $120 and $180 dollars (Hotel.com, Three stars

and above). The only definite difference between them is their
name. I would have been difficult for the Mckenzie’s to choose
between the different hotels.
With a fairly balanced world a fall in the Japanese economy
must mean that another countries economy is rising. China
could replace Japan in the short term as Guam’s number one
customer. The Chinese economy is on the rise. According to the
World Bank, the Chinese economy has been on a steady rise
since the mid 1980’s. Their GDP went form close to 0.5 trillion
in 1985 to 4.9 trillion in 2010. This strong economy will yield
citizens eager to rest and relax. Because Guam is relatively
close to China when compared to Europe, Guam could be the
best destination for those looking to vacation outside of Asia or
trying to escape Asian culture. The shift to Chinese customers
will not be easy because of visa restrictions placed on Chinese
people leaving China and entering a US territory but the
potential for wealth and growth is there.
Not all of Guam’s tourist attractions are located in the middle
of the country near the cluster of hotels. The Northern Region
of Guam contains the Ritidian Beach which is considered one of
Guam’s most beautiful beaches. According to Guamportal.com,
“The beach itself is a long stretch of white, powdery sand beach
that offers tourists a chance to swim in the crystal clear waters
or sunbathe in the warmth of the tropical sun.” The beach is
largely unseen by tourist because it is mostly surrounded by the

US military.
In the process of analyzing the case, we were able to decide
upon a problem and discuss some of the root causes. By
transitioning between what we saw as the problem to analyzing
the problem, we felt it appropriate to explore alternate ways of
thinking. We asked ourselves if an alternate viewpoint could be
taken and if so what kind of new assumptions could be made.
Was the McKenzie’s experience with the Regal Carnation the
only problem? At first glance it would appear so. The narrative
has a way of drawing one in because it is a believable situation
and can be seen universally as a problem. By looking over the
supporting data and taking another position we believe that the
McKenzies’ experience and series of “problems” could be
symptoms of a bigger problem. Using exhibit 8 on the
methodology of analysis, one can connect the top of the
pyramid to the experiences the McKenzies had with the hotel.
The area above the “Line of Visibility” represents what we can
see and consider. But taking another look at the diagram, one
could point out that the symptoms sit upon a foundation of root
causes, company strategy, and the product life cycle. By using
the diagram we asked the question; is the Regal Carnation Hotel
a success story? In regards to the Regal Carnation and this
alternate line of thought we defined success as providing a vital
service resulting in gaining new customers and retaining the
current customers. Additionally, gaining new customers and

boosting customer retention would theoretically provide greater
profits. Following this line of thinking, we believe another
problem relates to the fact that the Regal Carnation fails in the
present to be a success. The failure of success is related to
certain mitigating circumstances.
The current lack of success of the Regal Carnation can be
mainly attributed to the overall stagnant tourism industry in
Guam. According to exhibit 2 the amount of tourists visiting
Guam has fluctuated from year to year. Around the time the
Regal opened its doors, tourism saw a boost in Guam. Going
forward along the timeline the trend line seems to reach a
plateau in the latter years of the chart. Our interpretation of the
data is that despite earlier successes with a large amount of
tourists visiting Guam, the situation has morphed into the same
amount of hotels competing for a smaller pool of customers. In
contrast to the data in exhibit 2, exhibit 4 and 5 generally
convey a different trend. Despite a boost in tourism in
comparable years (according to exhibit 2), occupancy rates have
fallen and room inventory has increased in Guam. Looking at
the data, we asked ourselves why a boost in tourism would not
necessarily mean higher occupancy rates and lower room
inventory. Where is the disconnect happening here? Without
any other explanation or data the situation painted by exhibits
2, 4, and 5 not only point to an underlying problem but paints a
grim picture for the hotel industry in Guam. But digging a little

deeper, we surmised that the stagnant tourism industry, lower
occupancy rates, and higher room inventory negatively impacted
the Regal Carnation more than its competitors. With all else
equal and with the underlying issues hurting the hotel industry
in general, the Regal Carnation is not positioned to properly
withstand the shift in trends.
The case points out that the Regal Carnation was opened based
on the recognition that the region would see a boost in the
tourism industry. The Regal Carnation opened after the initial
boost in tourism. With this knowledge, the adage “The early
bird catches the worm” comes to mind. Prime real estate is
located along Guam’s beachfront. This is where Hotels first to
market were built. All other hotels that entered the market late,
including the Regal Carnation; could not take advantage of
prime access to the beaches.
McKenzie made a comment about how the Regal was a “me too”
hotel. I thought of how other “me too” companies operate. For a
given product or service, if a company enters into the market
late, there is usually fewer options to differentiate because of
late entrance and the demands of the market. Then again “me
too’s” generally don’t enter the market to innovate or bring
anything substantially new (a quick consideration of product
offerings or features would point this out), but to follow a trend
and siphon off profits from those companies that have entered
the market earlier. The problem with this model of business is

there is usually a finite amount of market share. Because of
changing tastes and preferences of society, market share for a
particular product or service can erode fairly quickly. Because
the “me too” company entered into the market for reasons listed
before, the company has to either develop a new innovative
product or service, find another market to enter (repeat of “me
too”), or fade away. Similarly, the Regal Carnation seemingly
brought nothing new to the industry, besides being nearly the
only hotel located in the center of the positioning map (exhibit
7) and priced competitively. We were not sure if the choice in
location was a “good” innovation or differentiation as there is
no direct beach access. And if a company decides or is forced to
differentiate on price, there is the danger of a price war between
those in similar circumstances. A price war without the solution
to underlying problems (that tend to impede success), leaves no
winners. And to add insult to injury, we find that the McKenzies
had trouble getting the confirmed “deal” price. It would seem
the owners of the Regal Carnation were motivated to enter the
market because of a trend, and now that the trend is practically
gone it appears the Regal Carnation will follow suit.

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