The Way of Success of Roaring Dragon Hotel - Thesis Proposal Example

PAPER ON BUSINESS PROPOSAL Executive Summary This study presents a business proposal for Roaring Dragon Hotel (RDH) in order to help it to the way ofsuccess and have a sustainable growth and development in future. In this study the case of RDH was analyzed and two basic problems were identified; they are: lack of vision and lack of proper communication among the HI team and the employees of RDH. For this reason, once a very popular hotel, RDH lost its reputation completely. It is recommended that HI team must analyze the problem areas and develop a vision regarding their strategies and effect of such policies in future. It would also be advisable that the Guanxi culture should be retained and good relationship should be maintained with the employees and the stakeholders of the hotel. This would ensure RDH regains its lost reputation and has a competitive advantage in the market. Table of Contents Executive Summary 2 Table of Contents 3 Introduction: Leading to Change 4 Problem: What was wrong? 5 Opportunity 7 Recommendations: How to fix it? 8 Conclusion: Can RDH grow again? 10 Works Cited 11 Introduction: Leading to Change Organizational change in an effective way can be a difficult proposition for any given company, no matter how big or small it is. Many of the multinational companies all around the world have tried to bring about changes related to different aspects of the company. Some have been able to affect the change quite effectively, while others failed to do so successfully. Various factors are needed to be considered while bringing about an effective change or transformation in an organization. Out of those factors the two most important aspects are: a) establishment of a clear vision and b) being able to communicate that particular vision to all the organizational members. In accordance with John P. Kotter, he lays down eight basic steps leading to the transformation of any organization. Out of those eight steps mentioned by Kotter, the third step tells about the creation of a vision for the company to help lead to the change within the organization. It also includes development of strategies which, when implemented, could lead to an effective change in the organization. There is plenty of evidence regarding failure in the efforts made by the organizations to make an effective transformation in its organizational culture because of lack of efficient communication about its vision. The fourth step in organizational transformation, as mentioned by Kotter, is about communication of the companys vision to all its employees and other concerned stakeholders. The next step that is step five includes empowering the other employees of the organization to facilitate working in alignment with the set vision of the company (Kotter 4). Problem: What was wrong? RDH has identified that there is a need for change in the culture of the organization. Therefore in order to facilitate such change, they took various steps to initiate the change program. The company then selected Hotel International (HI) as the management company. However on its own, the company made some critical errors during the process of executing such change. Those errors also affected the foundation for change. Moreover, the biggest mistake was on the part of HI as they did not even examine the present scenario of the company effectively. Apart from that, they also did not conduct any kind of research in the context of the organization’s culture, business environment and the channel network. They only anticipated that the model which worked in other markets would also work in the Chinese market. Additionally, HI also failed to learn the local language, which severely affected the process. There was also a lack of error form on the part of the westerners as they did not even make any efforts to learn Mandarin, the Chinese language. This has also created a huge communication gap between the two companies. Furthermore, HI failed to interact and share their thoughts properly with the employees of RDH. Downsizing policy can be considered to be another significant issue for RDH. HI declared the downsizing policy in between the training session. This has hugely impacted the training session as the focus of the employees who have taken part in it got distracted. They also humiliated the employees who have been terminated earlier, by asking them to parade in front of the other employees of the organization. This can be also perceived as an act of rudeness. Young employees also play an important role towards the change in organizational culture. However, with no regard to skills and expertise, HI expelled the young employees from the organization. Moreover, there was hardly any issue regarding their loyalty. The principal issues pertaining to the failure was improper assessment of the present organizational state, lack of communication due to unavailability of a common language and also making use of an offensive downsizing policy. In addition to that, HI also endeavored to apply the change too fast, which caused the company to face financial stagnation. Opportunity In this turbulent business environment, the market condition is continually changing. Moreover the demands of the customers are also increasing day by day. The customers now want superior goods and services. Therefore, in the process of implementing the change, RDH can position them in a different way. Apart from that, RDH can come up with modern and innovating brands in the market. The new brand will also make a mark on the minds of the potential visitors, the partners as well as the employees. RDH also needs to change the perceptions of the consumers about them, by representing them as the organization that is service centric, a superior establishment which has the capability to face and meet all the elevated needs of the patrons. Recommendations: How to fix it? At the beginning, RDH must carry out an analysis based on the present scenario of the company. It is an important task to evaluate the present business scenario of the company as it will help to establish a level of change that should happen. Apart from that, it is also recommended that the company must uphold a strong relationship with its stakeholders inside the Guanxi network. As in China, it is imperative to hold proper contacts and also to be in the right channel. Money is not always the basis of the development of Guanxi relationships that are prevalent in China. Many of the relationships involving Guanxi culture are based on the way different people in the organizations are treated (Yang 164). Hence, this gives rise to the equal importance of Mianzi along with Guanxi. Mianzi puts emphasis on the decency, dignity and personality of people. Mianzi can lead to a direct impact on the ability of a person of being able to successfully operate within the framework of the Guanxi network that exist within an organization predominantly in China (Chan). Thus, Mianzi should not be overlooked as well. In order to be successful in operating business in China and developing a strong brand, a company needs to build strong relationships with the employees and other stakeholders of the organization, who are present within the framework of the Guanxi network. In addition to this, Guanxi relationships could be made stronger by implementing different ways of maintaining Mianzi like job sharing and not insisting on lay-off or replacing employees in the organization. The morale of the existing employees of RDH would get a boost if there is enhancement in the visibility of the Chinese managers who are still present in the organization. Finally, it is recommended that communication should be given a higher priority. In order to be successful in employing strategies to implement organizational transformation, it is necessary that the vision of the company is communicated to all of its stakeholders. It is necessary that the management officials in RDH get themselves involved in the process of either learning the Chinese language or take help of trustworthy and competent interpreters so as to facilitate effective communication of the vision set by the company management. It would also help to create an environment of open communication within the organization. Conclusion: Can RDH grow again? So as to facilitate the growth of RDH and help regain its competitive advantage in the market, change is essential. The primary factor that would decide the successful implementation of the organizational transformation of RDH would be the ways through which it would go about implementing the changes within the organization. Although HI was unsuccessful in their efforts to implement change in RDH, the company should utilize the opportunity to learn from their mistakes and formulate a better strategy for the organizational transformation. This would help RDH to have sustainable growth and development in its business in future. Works Cited Chan, Alvin M. “The Chinese Concepts of Guanxi, Mianzi, Renqing and Bao: Their Interrelationships and Implications for International Business.” n.d. PDF file. Kotter, John P. “Leading Change: Why Transformation Efforts Fail.” Harvard Business Review (2007): 1–10. PDF file. Yang, Fang. “The Importance of Guanxi to Multinational Companies in China.” Asian Social Science 7.7 (2011): 163–168. PDF file. Read More