Company Analysis - Ritz Carlton Hotel Company - Research Paper Example

Company Analysis: A Hotel I Can Call Home The Ritz Carlton Hotel Company LLC The Ritz Carlton Hotel Company LLC is a chain of luxury hotels and restaurants operating eighty one hotels and resorts in different locations across the world in major cities. The company has a large market share in about 26 countries across the globe (David Kamp, 106). The company was founded in 1983 and has its headquarters in Atlanta, Georgia. The company is currently a subsidiary of the Marriott International. The company has an estimated workforce of 38,000 employees, making it one of the biggest employers in the hotel industry. Corporate Offices The company’s headquarters is based in the US, in Atlanta Georgia, on 4445 Willard Avenue, Suite 800 Chevy Chase, Md. 20815. The company runs other 80 luxury hotels and restaurants in 26 countries including Austria, Canada, Bahrain, Chile, Egypt, China, Cayman Islands, Germany, Indonesia, Italy, Ireland, Korea, Japan, Mexico, Malaysia, Portugal, Oman, Qatar, Puerto Rico, Saudi Arabia, Russia, Spain, Singapore, The United Arab Emirates (UAE), Turkey, Virgin Islands and the US (The Ritz Carlton Hotel Fact Sheet, 2010). In the US, the company runs two luxurious hotels in New York, one at Central Park on 50 Central Park South, and the other at Battery Park on Two West Street (David Kamp, 216). The Ritz Carlton also has partners across Europe that help the company to offer its services in major cities around the continent. These partners include The Ritz London in the UK, Hotel Ritz Madrid in Spain, the BUKGAR Hotels and Resorts in London, and Milan. Key leaders and managers of the Ritz Carlton Hotel include Herve Humler, the President and Chief Operations Officer; Mr. Leeny K. Oberg, the Chief Financial Officer and Mr. Bob Kharazmi, the Global Officer, in charge of worldwide Operations. Public or Private Company The Ritz Carlton Hotel Company LLC is a private company with its headquarters in the US. The current company was formed in 1983, after a developer, William B. Johnson, bought the Ritz Carlton Boston from Blakeley. W. B. Johnson moved the company from Boston to Atlanta, where he assembled a great management team that helped him manage the hotel. In 1988, he acquired full rights to use the name The Ritz Carlton Hotel Company across the world and thus developed the company to operate in various locations around the world. The company has grown to become one of the best managed hotels in the US and around the world, with its great customer service recognized all over the world (David Kamp, 267). Brief History of the Company A renowned Swiss Hotelier, Cesar Ritz and his wife, started the Ritz Carlton. He ran the Ritz hotel in Paris, France and the Carlton hotel in London, UK. He teamed up with one of his best chefs, Auguste Escoffier to form the Ritz Carlton in 1913. Ritz died later on in 1918 and his wife decided to continue the business, opening up more branches under the same name. In 1926, Edward Wyner, a 29-year-old American, formed the Ritz Carlton Hotel in 1927, in Boston. After his death in 1961, his sons continued with the business and later on decide to sell it after it became difficult to run. The company was later on sold in 1983 to William B. Johnson, who moved the company to Atlanta and formed The Ritz-Carlton Hotel Company LLC. The company has since then expanded its services in the US, across Europe and Asia with future plans to move to Africa, the Middle East and South America. The company currently operates independently as a division of the Marriott International (The Ritz Carlton Hotel Fact Sheet, 2010). Reputation The company has grown to become a leader in the hospitality industry and currently has a great reputation around the world as one of the best luxurious hotels. The company’s reputation began to grow under the leadership of COO Horst Schulze who revolutionized operations in the company by concentrating on both data driven and personal service. He coined the current employee Credo that is used to guide the hotels employees in service delivery. The company’s credo states ‘We are Ladies and Gentlemen Serving Ladies and Gentlemen’. He also developed standards for employees to improve on their service delivery. The company has since won several awards for its service delivery around the world. Its first two quality awards were the Malcolm Bridge National Awards that the company won under the leadership of Horst Schulze. The Ritz Carlton has become known for the influence it has on leadership in other sectors and industries through its Ritz-Carlton Leadership Center that focuses on training to executives and business people in order to improve their business management and leadership skills. Main Competitors The hotel industry is very competitive in the US and indeed across the world. The Ritz-Carlton has taken a long time to be where it currently is, as one of the best hotels in the world. The company however faces stiff competition from various other international companies in the hotel industry (Thomas Durdak et al, 310). Some of its biggest competitors include the Four Seasons Hotel, Trump International Hotel, and St. Regis Hotel. These three hotels are among the most vibrant hotels in the US with operations in different locations across the world. Four seasons Hotel is expanding very fast by acquiring other hotels in the US and in other areas in the world, and it is likely to pose a threat to the Ritz Carlton’s survival in many markets around the world. The American Billionaire, Donald Trump, owns Trump International Hotel. The company benefits a great deal from the international reputation of its founder and owner, Donald Trump who is recognized around the world as a philanthropist. This reputation is likely to give the company comparative advantage over the Ritz Carlton in markets where Mr. Trump has popularity. St. Regis Hotel is also growing very fast and expanding very fast across Europe. It is likely to be a great threat to the Ritz and other major hotels in the near future. Current industry trends The latest trends in the luxurious hotel industry include provision of an office away from the office; where a work station is provided in the rooms for the clients and customers of the hotels, provision of free Wi-Fi, embracing social media as a marketing and customer service tool, and using digital signage in place of signboards (Thomas Durdak et al, 310). The Ritz Carlton has responded positively to these trends and is moving consistently with other big companies in the industry. The company has the Office on demand plan for creating a work station for visitors, there is free Wi-Fi, digital signage and the company is very active on social media. Financial Position The financial position of the Ritz Carlton Hotel is very great presently. The company has been make huge profits in the recent years that have enabled the company to expand around the world and extend its services and brand in other areas such as Spa development, golf course and the leadership center (Thomas Durdak et al, 330). The company has however suffered huge financial setbacks in the past under different leaderships that prompted some of its branches to close down operations in order to sustain other areas. The future looks bright for the company in terms of its financial position because of the initiatives and development plans that the company expects to roll out in the near future. All these will lead to greater revenues for the company in the future (Thomas Durdak et al, 354). Works Cited David Kamp. The United States of Arugula. New York: Broadway Books 2006. Joseph A. Michelli, The New Gold Standard. New York: McGraw Hill, 2008. Thomas Durdak, A. Woodward, David Salamie. "The Ritz-Carlton Hotel Company, L.L.C.". International Directory of Company Histories vol. 71, 2000. The Ritz Carlton Hotel Fact Sheet. The Ritz-Carlton Hotel Company. 2010. Available at http://corporate.ritzcarlton.com/en/Press/FactSheet.htm#current Read More