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    Roaring Dragon Hotel

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    orakzai_496_54783150
    Hotel International (HI) was hired to manage the Roaring Dragon Hotel (RDH) in China and turn it profitable again. However, HI failed due to several strategic and cultural missteps. They did not properly research the market or develop a strategic plan. HI's management was unclear on their mission and vision as they made abrupt changes instead of focusing on profitability. Most significantly, HI completely ignored Chinese culture, underestimating the importance of relationships and offending employees with inappropriate redundancy practices. While HI introduced some positive changes like training, their overall lack of strategic planning and cultural sensitivity led the Chinese government to terminate their contract after just one year.

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    Roaring Dragon Hotel

    Uploaded by

    orakzai_496_54783150
    286 views2 pages
    Hotel International (HI) was hired to manage the Roaring Dragon Hotel (RDH) in China and turn it profitable again. However, HI failed due to several strategic and cultural missteps. They did not properly research the market or develop a strategic plan. HI's management was unclear on their mission and vision as they made abrupt changes instead of focusing on profitability. Most significantly, HI completely ignored Chinese culture, underestimating the importance of relationships and offending employees with inappropriate redundancy practices. While HI introduced some positive changes like training, their overall lack of strategic planning and cultural sensitivity led the Chinese government to terminate their contract after just one year.

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    example of strategic management

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    Hotel International (HI) was hired to manage the Roaring Dragon Hotel (RDH) in China and turn it profitable again. However, HI failed due to several strategic and cultural missteps. They did not properly research the market or develop a strategic plan. HI's management was unclear on their mission and vision as they made abrupt changes instead of focusing on profitability. Most significantly, HI completely ignored Chinese culture, underestimating the importance of relationships and offending employees with inappropriate redundancy practices. While HI introduced some positive changes like training, their overall lack of strategic planning and cultural sensitivity led the Chinese government to terminate their contract after just one year.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    286 views2 pages

    Roaring Dragon Hotel

    Uploaded by

    orakzai_496_54783150
    Hotel International (HI) was hired to manage the Roaring Dragon Hotel (RDH) in China and turn it profitable again. However, HI failed due to several strategic and cultural missteps. They did not properly research the market or develop a strategic plan. HI's management was unclear on their mission and vision as they made abrupt changes instead of focusing on profitability. Most significantly, HI completely ignored Chinese culture, underestimating the importance of relationships and offending employees with inappropriate redundancy practices. While HI introduced some positive changes like training, their overall lack of strategic planning and cultural sensitivity led the Chinese government to terminate their contract after just one year.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Name: Asif Ahmed Shah

    MS 3rd semester

    Roll no. MS320132008

    Strategic Management
    Case Study: ROARING DRAGON HOTEL
    Approximately the two hours class discussion about roaring dragon hotel (RDH) was very useful
    and helpful to understand the importance of strategic management, because after discussing the
    case of RDH, everyone in class agreed with full consensus that without proper strategic planning
    even well established business can face failure in long run. For instance, RDH was region
    premium and well reputed government owned hotel in china, the employee of RDH felt proud
    and was admired by their friends and relatives, their salaries, working environment and other
    benefits was highly appreciable and satisfactory and desirable. But with the passage of time the
    popularity and income of RDH was decreasing due to ignorance of strategic planning and
    management.
    As Provincial government of China when realized that the current management of RDH was not
    performing well and resulted in lower income, they decided in year 2001 to hand over the
    management of RDH to international company, named as Hotel International (HI). In 2002 Paul
    Fortune the GM of Hotel International takes over the charges of RDH. To make RDH profitable,
    Paul Fortune started the practice in his own way, and his policies and practices after a year was
    badly failed due to many reasons and resulted in to the breach of contract by Chinese
    government in mid-January 2003.
    Reasons for the failure of Hotel International (HI) in China:
    Although Hotel International (HI) was internationally well reputed, credential and well known
    brand name, but in China they were not successful. Few reasons for failure are as under:
    Seems no research done by HI.
    Lack of strategic management and planning.
    Seems that HI management was not clear about their Mission and Vision, because they
    were selected for making RDH profitable, but instead HI involved themselves in massive
    changes which deviate HI form keen concern.
    Abrupt and rapid changes in RDH.

    Culture sensitivity was completely ignored.


    They underestimate the strength of guanxi practices and relationship with other
    industries. For instance, the refusal of contract with Nu Fu Travel agency.
    The redundancy process was inappropriate, and was not according to Chinese culture.
    The employees of RDH were very unhappy with such procedure. In layoff process they
    also loss some very competent employees, which later on join other competitors.
    The internal or job environment of RDH imposed by HI was very strict and untraditional.
    They convert a camaraderie (friendship) environment into very glum atmosphere.
    In contrary to failure of HI in China, there were also some positive aspects of Hotel
    International (HI). For example, they introduce training system. They were starting to train
    the employees of RDH according to international standards.
    structure more structured.

    They make organization

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