RITZ CARLTON HOTEL CASE GROUP 7

BUSINESS STRATEGY
It aims at providing meticulous service and luxurious elegance which generates positive word of mouth
among consumers.
It franchises Ritz-Carlton name to individual hotel owners who are prepared to abide by the strict
service standards set by Ritz-Carlton.
The company focuses on developing a chain of prestigious and highly personalized hotels
To achieve this, company has designed and follows GOLD STANDARDS.
GOLD STANDARDS include the following
The Credo : Giving utmost importance to care and comfort of guests
The Motto : We are ladies and gentleman serving ladies and gentleman. Each employee is trained to
act as if he/she is a lady/gentleman, and to treat guests similarly.
The three steps of strategy : Greet the customer, anticipate the needs, bid the customer
20 Ritz Carlton Basics : Describes problem solving process, fundamental rules of conduct.
 Pareto Chart - Hotel Complaints
200 120.0%

QUALITY 180

160
100.0%

140
80.0%
120

100 60.0%

Defect-free Customer 80
Dual objective: 40.0%
service satisfaction 60

40
20.0%
20

0 0.0%

Complaints:
# of Complaints Cumulative %
Room Cleaning (33.9%)
Room Assign (16.3%) Source:
Incorrect reservation (13.7%) Guest Incident Action Forms (GIAF) (47.59%)
Comment Card (22.78%)
CAUSE & EFFECT DIAGRAM

Control
Problem
Solving
 TOTAL QUALITY MANAGEMENT
Ritz Carlton
• Create a culture where employees recognize defect free service and
customer satisfaction.
• Adopted a quality mascot : Mr. BIV – to represent 5 most common
mishaps
• Developed DQIS : a system for gathering, reporting and tracking defect •
data.
• DQPR : a weekly report listing all service defects, identified & recorded.
• Inculcated ‘Instant Pacification’ : immediately fixing the defect.
• Pareto charts from DQPR to direct their task force to the ‘defective’
department
Taj Hotels
• In 1995, Taj Group introduced the Taj Executive Information
System to monitor 30 various KPIs
• Has implemented Kaizen by their staff members at all levels.
• Change to be supervised by the top management
To maintain their service levels, they have set standards and
procedures.
• Any new change in the quality standards and procedures is
implemented by top management
• It uses BSC to keep a check on its service delivery and
customer satisfaction, and communicate and deploy strategy
THANK YOU