Pakistan Water and Power Development Authority (WAPDA)

The Ritz-Carlton Hotel

Company
By Sandra J. Sucher
Case Study Assignment
(CSA)
Faculty of WASC Presented By
Ms. Madiha Ijaz (Course Director) Muhammad Salman Rafi
Mr. Waqas Ahmad (Dy. Course Director) 164th JMC, 24.01.22 to 25.03.22
 Inception
• Cesar Ritz left Switzerland
London 1898 • Opened The Ritz in Paris, France

• Opened Carlton Hotel in London

Americas Paris 1899

Switzerland
• Business came to Americas
1911
Ownership
1911 1926 1964 1983 1997 1998
to to to to to to
1926 1964 1983 1998 1998 2022

Albert E. N. Blakeley W. B. Sumito Marriot

Keller Wayner Ascts. Jhonson Bank Internt.

15 Hotel Stock Breakeven Expansion Blackston All Rights

Chain Crash Phase & Loans e Estate Reserved

Private Ownership Corporate

Business Model
Revenue Streams for Luxury Hotel Brand

Independently
Management Contracts
Owned

Franc- Resort
All Mgt. Profit Land
hise Time
Profits Fee Share Rent
Fee Share

Investment
Growth Orientation / Business Development
Strategy
Marketing Strategy
Key Success Indicator
General
Percent Occupancy & Crude

Average Daily Rate

Revenue Per Available Room

Lone
Traveler
Long Meeting Airports
40% of
term & Event & Tour.
Income
Relation Planner Sites
Company Standing
DISTRIBUTION OF REVENUE
Cash After Debt
20%

Insurance & Taxes

Allocated Expenses
8%
54%

Un-Allocated
Expenses
18%
Ritz-Carlton World-wide
America
EU
39 Asia
13
36
Caribbean Middle East
08 13

Total Hotels = 109

 Key Characters
Horst Schulze Coined the Motto: “We are Ladies & Gentlemen
(President & COO) Serving Ladies & Gentlemen”

Leonardo Inghilleri Patrick Mene James McBride

(VP, Human Resources) (VP, Quality) (General Manager)

• Employee ≠ Muscle + Man Hour • Introduced TQM Innovations like:

• On site Samples
• Employee = Brain + Heart + Soul • Introduced SQI
• Tech. Butler
• Problem = Lack of Trn. / Res. • Process Centric
Approach • Online Service
• Purpose > Retribution
Case Study – In Consideration
New Hotel
Financing & Branding &
Opening
Developing: Management:
Opportunity
at
Millennium Ritz-Carlton
Washington
Partners Company
DC

Partnership and
Management Contract
Signed
High Stakes
Millennium Partners also Contracts with
Financing Competitors (Four Seasons)

Experience RC Hotels & GM McBride have no

experience of multi-use facility

Hospitality Complex
Scope • $ 225 Million Cost
• 162 Residential Condominiums
• 100,000 ft2 Sports Complex
• 40,000 ft2 Restaurant
• 300 Room Hotel
Ritz-Carlton SOP for Hotel Opening
Phase-1 Market
Inception & Location Construction
Customization
Actualization

Phase-2 Targeted Selection &

Staffing Human Job Fair
Campaign Contacts
Resource

Phase-3 Day-1: Day-2: Dept. Day-3 to 7:

Opening Orientation Vision Skills Training
Opening Budget for RC, Washington

Budget Related with 7

Day Opening Countdown

Salaries Travel & Marketing Office Orientation Recipe

& Wages Enter. & Sales Operation & Training Testing
Dilemma
Seven Day Countdown O% Occupancy
Learning Curve
for New
Employees – To
1st Month of Operation 50% Occupancy Reach RC Level
Service

4th Month of Operation 80% Occupancy

Millennium Partners (with $700 Million Investment in RC Hotels) Questioned This

Tradition !!!
Millennium Partner’s Angle
Observation Training Period of 7 Days may be too little

Suggestion Increase in Duration of Training of Employees

Anticipation Opening of Hotel at 80% Occupancy from Day-1

Expectation Maximum Revenue from Day-1

What should Ritz-Carlton Do: Tradition Vs Suggestion ?

SWOT Analysis for Solution
Strength • Good for Brand Name – Early achievers

Weakness • Early High Guest Attendance = Lower Quality of

Service

Opportunity • Increased Training = Increase in Revenue

Threat • Lower Quality of Service = Bad for Brand Name

Possible Way Forward
SWOT Concludes Quality as the Prime Factor

To Ensure Quality & Open at Max. Occupancy

Option-1 Add 03 More days to Seven Day Training Session

Option-2 Soft Opening – for Executives and Chosen Guests

Thankyou.