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Modernizing the Royal Hotel About Royal Hotel at a Glance…

Modernizing the Royal Hotel About Royal Hotel at a Glance…

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Published by dian ratnasari

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Published by: dian ratnasari on Oct 19, 2009
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05/11/2014

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Modernizing The Royal HotelAbout Royal Hotel at a Glance…
Belongs to Somerville family
GM: Gerry Baskerville (with good reputation)Swift, jocularly friendly, business-like towards other, he missed nothing.
Remote location
Used by local families and fewer outsiders
Provides countryside, beaches, sailing, fishing, riding, yatch and tennis club
Provides staff accommodation
Safe; no drugs, violence.
Royal Hotel Case Overview
John Inskip, has recently named as Galaxy’s Operational Director for Westerpoolregion
Keen to fulfilling Paul Fisher’s (Chairman of Galaxy) idea for introducing afurther brand “prestige”, Inskip determined to made acquisition of his childhooddream place, the Royal Hotel
He made discreet visit to the Royal Hotel and immediately drawing hisconclusion, especially on things he believed he could exploits
Inskip’s ideas for the Royal lies on two factors which are 1) Provide a largeup-to-date bar by converting existing underutilized public room and 2) Build an up-to-date leisure centre.
In spite of the opposition from Galaxy’s CEO, Chris Edmonds, Inskip get a greenlight to make the acquisition, except his idea for leisure centre has been told to be postponed
Immediately after the acquisition, all the Royal’s over-age staff had elected toretire, and many other staff had chosen to move on including the current generalmanager, Gerry Baskerville.
 
Inskip appointed Donald Saundby, young man with go-ahead ideas, to be theRoyal’s general manager which is it would be Saundby first appointment ashotel’s general manager.
Inskip plans to Royal Hotel:
o
Staff changes
o
Change the sign into larger and smarter 
o
Provide a large up-to-date bar (converting exisitng underutilized publicrooms), thus creating a major revenue.
o
Build an up-to-date leisure centre (underpin a rise in room rates & provideuseful revenue stream)
o
Donald Saundby (good reputation in Galaxy, up and coming young man withgo-ahead ideas) as GM.
o
All the Royal’s over-age staff had elected to retire, and many other staff hadchosen to move on (with the exception of Tommy)
Several changes was put into action, starting from updating Royal’s staffing policiesuntil the establishment of the Golden bar which projected as a new source of Revenuestream
Nevertheless, in spite of the effort has been put in place by Inskip, the hotel’s performance didn’t show any significant improvement, in fact it getting worse
To make things worse, the police has informed the Galaxy’s management on potential illegal activities taking place at the hotel which contradict Galaxy’s brandimage and on top of that the press also had know about it as well
In the end, John Inskip has lost his position as Galaxy’s Westerpool OperationalDirectors and has been demoted to other job.
A Big Mistakes From Start to FinishNoDrawbacksRemarks
1John Inskip never have direct experiences inmanaging "prestige” hotel. He even don’t have“leisure” category in his portfolio“taken charge of a group of inns andfamily hotels in and aroundWeterpool” (case, p.62)
 
2John Inskip failed to capture the ambiance andatmosphere offered by the Royal Hotel anddemanded by the customersInskip tend to have shallow analysisin his discreet visit and not lookingfor second opinion3Inskip failed to formulate a clear strategy tosynergize and merging the Galaxy’s value andthe existing value of Royal Hotel, and howthey will move forwardInskip refuse to adjust his plan, whenthe leisure center was told to be postponed4Inskip chose to appointed relatively young andlack of experience general manager, withoutrealizing the time constraints he has to domentoring and supervision None of the new top levelmanagement have extensiveexperience on managing “prestigehotel.5Inskip failed to put a proper monitoring andsupervision mechanism in placeSaundby tend to execute his ideawithout proper consultation withInskip6Inskip failed to formulated a series of trainingactivities of all the staff members, especiallyon communication the changes and Galaxy’svalue No training whatsoever has beendelivered to the staff members on thechange management7Inskip failed to obtained feedback from thecustomer to get more insight on theconsumer’s behavior  
Case Analysis
About the change that happened in the Royal Hotel.1.Observable artifacts changed without evaluating basic assumptions2.Royal’s customers lost a sense of belongingness.
As a result: the overall change was a big failure for the Galaxy Hotels.
The corporate culture of the Royal Hotel before and after the change:

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