The Ritz-Carlton Case Solution
Presented by:Rohit Jain
Scene-1 Scene-2
Interesting Facts
Reinforcement of Gold Standards
There is nothing more exciting than fixing a mistake or a defect
Employees do not just have to fulfil their functions but also have a purpose.
Good opportunities for career advancement.
Scene-1 Introduction The VisualThe Wow Story
Scene-1 Introduction The VisualThe Wow Story
Warm Welcome
Anticipation And
Compliance With Guest
Needs
Fond Farewell
Employee Senses Guest Wish or Need
Employee Breaks Away from Routine
Duties
Employee Applies
Immediate Positive Action
Determine Guest
Reaction
Document the Incident
Employee Returns to
Routine Duties
Guest Memory System
Escalate the Complaint
Satisfied
DissatisfiedThre
e Ty
pes o
f Ser
vice
1.
2.
3.
Ritz Empowerment Process
Every single Ritz Carlton staff member can spend up to $2000 on a guest.
Ritz Carlton makes a shoetree for a customer
Ritz Carlton retrieves a customer’s sunglasses by snorkeling
Ritz Carlton constructs a wooden pathway for a wheelchair
Ritz Carlton goes across the country to return a customer’s dress
Scene-1 Introduction The VisualThe Wow Story
Scene-1 Introduction The VisualThe Wow Story
The Big Discussion
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The Seven Day Countdown
Initial Occupancy rate
Scene-2 Points to consider ConclusionThe Meeting
Option – 1
Keep it as it is:Pros: Refined and evolved process for opening hotel chains by the Ritz Carlton
Provides standardization with greater efficiency.
Flawless execution is the goal; even if it takes longer, productivity will increase
as employees get more and more comfortable over time.
Focus on providing the “WOW” Ritz Carlton experience from the beginning.
Sufficient allocation of time frame for imbibing the Ritz Carlton culture and
values in the employees.
Focus on utmost quality, not on quantity from the very beginning
Offsets expected minor service failure from the beginning
Scene-2 Points to consider ConclusionThe Meeting
Option – 1
Keep it as it is:Cons: Loss of profit
Tension with owners
May not satisfy sufficient training for new facilities included.
7 day training may not be sufficient for the employees to deliver
the Ritz Carlton service standard.
Scene-2 Points to consider ConclusionThe Meeting
Option – 2
Extend countdown and maintain initial occupancy rate:Pros: More efficient employee training and morale.
Can allocate separate time for the new facility allocated.
Decrease tension with owners.
Scene-2 Points to consider ConclusionThe Meeting
Option – 2
Extend countdown and maintain initial occupancy rate:Cons: Extra loss of profit.
Can hamper brand equity.
No guarantee of increased efficiency.
Lead to rescheduling of whole program
Low incentive to move away from 7 day standardized training
program.
Scene-2 Points to consider ConclusionThe Meeting
Option – 3
Extend initial occupancy rate and maintain countdown:Pros: Increase in profit.
Decrease tension with owners.
Scene-2 Points to consider ConclusionThe Meeting
Option – 3
Extend initial occupancy rate and maintain countdown:Cons: More chances of service failure.
Even greater pressure on employees.
Can hamper brand equity.
Scene-2 Points to consider ConclusionThe Meeting
Option – 4
Extend both initial occupancy rate and countdown:Pros: Better profitability with lesser risk.
No tension with partners.
More efficient employees who can deliver Ritz Carlton standard.
Scene-2 Points to consider ConclusionThe Meeting
Option – 4
Extend both initial occupancy rate and countdown:Cons: Extra cost.
Will hamper brand equity.
No guarantee of definite success.
Complete rescheduling of the whole program.
Scene-2 Points to consider ConclusionThe Meeting
The Financial Analysis
Scene-2 Points to consider ConclusionThe Meeting
Cost
Benefits
My Suggestion
Go For Option 1“Let’s do what we do best”
Scene-2 Points to consider ConclusionThe Meeting
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