Challenges Faces Holiday Inn - Essay Example

Specifying the relevant facts in this case A variety of challenges faces holiday inn. The challenges are a result of misconceptions from guests. The guests’ misconception is that products produced by Holiday in area of low quality compared to those of competitors. Due to this misconception, the sales of the product of holiday inn restaurant have gone down in the room service, therefore, affecting profits. The guests do not believe in local restaurants producing quality products, which is the case affecting Holiday inn. Another crucial problem facing this restaurant is poor management in respect to decision making. From the poor decision made by management, it has resulted to major ethical problems (Vilcox & Mohan, 2007). To improve on sales of the restaurant, management decided to change their brand name. The action was intended to change the perception of the guests. Changing the perception of the guests would improve on sales. The increase in sales will be an outcome from fooling guests that the products in this case, which are pizza, are from a different restaurant ‘Napoli pizza’. Management of the restaurant also decided on changing delivery boxes to the room service. They also changed the brochures for each guesthouse to indicate ‘Napoli pizza’ and their phone number had a different prefix and would be as ‘Napoli pizza (Vilcox & Mohan, 2007). Ethical issues In marketing, various ethical issues should be adhered in the process of business. In this case, various marketing ethics issues were violated. Firstly, the management of Holiday inn restaurant fooled their customers by temporarily changing their brand name to ‘Napoli pizza’ with the aim of increasing sales to maximize profit. The practice was contrary to marketing ethics that requires businesses to advertize their products in promoting honesty, fairness, and responsibility. In this case, management of the restaurant failed to take the responsibility of marketing to promote their sales and instead put on a fake brand name. Another ethical issue arose from the restaurant using another organizations name without their authorization. The act resulted into disrespect and violation of the marketing and business ethics. Secondly, the restaurant provided brochures with a fake name to impress their customers and at the same time boost sale sales in the room service. The management did not show their real identity to their customers in the guesthouses and faked their delivery boxes. In addition, their personnel who delivered pizza were issued different hats and jackets from their usual wear to confuse their customers. They also wanted to maintain their sales and at the same time keep up with competition (Weber, 2006). All the above practices were against marketing ethics and its expectations. According to the principles of marketing ethics, marketing communications should share a common standard of truth. The above principle in this case was minimally adhered to since there was no standard truth as guest was given a misleading image of the restaurant. It is a requirement by marketing ethics for professional marketers to adhere to the highest standard of personal ethics. In this case, the principle was violated by forcing their personnel to wear misleading hats and jackets. Marketers and businesses are expected to treat consumers fairly based on the nature of product and nature of the product. Holiday inn did not exercise this principle as they failed to treat their consumers fairly by providing products that were in accordance with their preference and taste (Weber, 2006). Determining with precision that should be involved in the decision-making process and analyzing the viewpoints of the stakeholders In every organization, decisions must be made. The general manager, food service manager, and personnel should be involved in decision-making of the organization. For the case of Holiday inn, food service manager makes proposal to the general manager and then it is either approved or declined. The personnel of the organization wereneverinvolved in decision-making. The practice led to inappropriate, unethical, and misleading decisions. Involving all the parties in decision-making would yield successful results. The process will also help in getting diverse opinions from different people. Apart from diversified opinions, the practice will add on the morale of employees by showing them that their opinion is in the organization. By involvingtheparties, it will also be easier to identify arising problems in the organization. Identification of arising problems will help in making appropriate decisions that can help in curbing the problem (Weber, 2006). The stakeholders of any organization are equally important in any perspective. The stakeholders of Holiday inn are general manager, food service manager and the customers. The managers of the restaurant have an interest of raising sales to maximize profit. They also have an interest in improving the quality of their products. Customers of the restaurant who are also stakeholders view the restaurant as providing low-quality products (Weber, 2006). Prescribing the possible alternatives and evaluating their consequences The organization can invest in aggressive marketing strategies. The marketing strategies will help in improving the sales and create awareness of their products to customers. The product awareness will help in maximizing profits. Apart from maximizing profits, they diversify the company risks, increase the market share of the restaurant, and increase its competitiveness. The restaurant should also consider improving the quality of products. Improvement of the quality of products will help gain market share in the industry and increase profits by increasing sales. Quality improvement helps the restaurant in gaining competitiveness among other restaurants and complies with principles of marketing ethics (Vilcox & Mohan, 2007). Choosing the best alternative to solve the ethical dilemma and to describe the potential effects of the chosen action Choosing the best alternative will help in improving the standards and sales of the company. In this case, the best alternative is improving the quality of products and exercising aggressive and intensive advertisement. The practice will help solve the ethical dilemma where they changed their brand name to impress customers. Through advertisement, there will be much awareness on the product therefore; it will be easier to sell it without much strain. Aggressive marketing strategies will also help in expanding the market for the products rather than focusing on specific customers (Weber, 2006). References Weber, L. J, (2006). Profits before people? : ethical standards and marketing of prescription drugs. Bloomington Vilcox, M. W., & Mohan, T. O. (2007). Contemporary issues in business ethics. New York: Nova Science Publishers. Read More