Business Report for Radisson Hotels and Resorts - Case Study Example

Business Report for Radisson Hotels and Resorts Executive Summary Radisson Hotels and Resorts was founded in 1909 in Minneapolis, Minnesota (Wikipedia). Its name was based on the 17th Century French explorer Pierre-Esprit Radisson (Wikipedia). Nevertheless, the company was purchased by Curt Carlson in 1962 and is still owned by the Carlson Companies. It operates in 61 countries with 435 operations (Wikipedia). In fact, most of Radisson Hotels and Resorts are located in the United States (since 359 operations are placed in the United States) (Wikipedia). Outside the United States, the company has been franchised by Rezidor Hotel Group (Forbes). Additionally, Carlson and SAS (Scandinavian Airlines System) are equity holders of the Rezidor Hotel Group (Forbes); thus giving the name "Radisson SAS" outside the United States(Forbes). Moreover, it has established partner networks with more than 20 worldwide airline programs (Radisson SAS) as well as with major financial companies such as American Express, Diners Club, Discover Visa and Mastercard to provide their customers with special offers and promotions (Radisson SAS). Its vision is: "We want to be the most admired company in London and in Manchester"(Radisson Edwardian), while its mission is to provide 100% guest satisfaction (customers are able to report to the company if any dissatisfaction occurs and Radisson will take corrective action or guests are not required to pay that particular service), 100% employment engagement (i.e. full staff empowerment) as well as acquiring a positive cash flow (by keeping every customers and employees satisfied) (Radisson Edwardian). Discussion, Interpretation, Analysis The hotel industry is facing many established competition, such as Four Seasons, Hyatt, Ritz Carlton, Le Meridien, Marriot, etc. Thus to make itself outstanding and unique, providing quality service is a strategic action. Radisson's service guarantee statement should include a promise of providing only the best service, experienced and skilled employees to ensure customer satisfaction. If the company does not fulfill its commitment, hence the business promises to repay for its mistake. It should make it acknowledged by stating it in its business plan, code of conduct, in all of its hotels (in all rooms, at the lobby, etc.), in employee's and franchisee's contract as well as in its media, website, catalogues, brochures, email newsletters, etc; to make all of its employees, customers, franchisees aware of its commitment. Technological advancements have been developing very fast in recent years. Radisson should make use of this enhancement. The business could place a customer survey questionnaire at its website or send them via email. This action will allow the company to analyze and evaluate its customer opinion around the world and thus Radisson will be able to take corrective action to ensure that its commitment of providing 'customer satisfaction' is fulfilled. By having the internet available, the communication process between the company and its customers is enhanced; customers are able to contact Radisson and receive replies from the company more rapidly. This system reduces the possibility of not responding to certain customers and also reduces time delays. In order to guarantee employee and customer satisfaction, monitoring is essential. This can be done by undertaking performance appraisals, where employees fill out a form regarding their performance as well as complaints; with this the company is not only able to know its employees' dissatisfaction but how it has affected its performance. Feedback from performance appraisals will provide information for planning in training, recruitment, selection, development, rewards and separation. Radisson should also perform a grievance procedure (2-way communication system), where employees are able to communicate their complaints and employers are able to reprimand staff for conducting unsatisfactorily performance. The 2-way communication system enables an equality of power, a better relationship between the employer and employees, avoids misunderstanding; which should improve productivity and performance in the future. Additionally, the business could also measure employees' satisfaction through employment relations audit, quantitative and qualitative measures. Employment relations audit analyzes and evaluates employment relations activities and effectiveness; i.e. key performance indicators evaluated by management, outside consultants conduct research to analyze problem and suggest solutions, etc. Whereas qualitative measures involve detailed feedback and research about changes in behaviour or quality of service; i.e. careful analysis of industrial disputes and issue raised may provide feedback to management, feedback from supervisors, consultative committees, customers and employees in surveys. On the other hand, qualitative measures includes analyzing absence rates in proportion of total hours worked, labour turnover rates, amount of industrial disputes, grievance records, time lost through industrial disputes. If employees are unsatisfied with their job, hence the organization tends to experience high turnover and absence rates as well as high industrial disputes. As a case study "Sickies costs!" shows, that a employer didn't take care of the needs of employees, thus has resulted in high absenteeism and loosed 30% of its productivity as well as $30,000(Chapman, October 2005, Topic 4). Compared to Holden Australia, who provides Occupational Health and Safety programs, flexible working arrangements, flexitime and diversity programs; it has a market share of 14% in 2007 and has the second highest sales after Toyota (Chapman, October 2005, Topic 4). Radisson should focus on gaining information from primary sources, such as by exercising questionnaires, focus groups and interviews. By gaining these information, the business can directly identify the likes and dislikes of the service. Hence the business is able to enhance the factors which guests likes to develop its competitive advantage as well as develop strategies to remove any dissatisfaction. Radisson could also measure customer satisfaction through obtaining secondary sources, such as financial statements, sales statistics, etc. If more customers are satisfied, hence sales and thus profits will increase. This may be caused due to word-of-mouth advertising, as people tend to believe in it more than commercial advertising. Nevertheless, many of Radisson's operations have been franchised. One disadvantage in advertising is that it is difficult to monitor performance and ensure quality. Thus, Radisson should state its commitment in its franchise contract and in it the franchisee has to comply with this commitment; if not hence a certain fine and penalty will occur, i.e. the franchisee loses his/her franchisee right. This is comparable to a case study. In 1991 Levis Strauss & Co. contractor in Saipan provided wages below the minimum conditions and thus it fired the contractor and in 1992 it implemented guidelines for contractors, covering the treatment of workers. Now it sends inspectors to conduct audits work and safety conditions at all factories of its contractors (Chapman, October 2005, Topic 5). Thus, Radisson should also send managers to every franchise operation to monitor their performance as well as to ensure that they are fulfilling the company's commitment. Nevertheless certain goals and commitments should be established between owners, managers and employees. Employers should communicate their goal, which is to maximize profitability and efficiency. This task is aligned to the managers, thus they should communicate to employees of an equal employment opportunity, each other's respect, the ability to communicate about their problems and concerns. This will improve employees' work satisfaction and hence productivity; leading to lower costs and higher profits. Additionally, if employees are happy in the workplace, hence they will provide a better service to the customers, hence fulfilling Radisson's mission of "100% guest satisfaction". Satisfied customers may lead to repeat sales as well as word of mouth advertising. Higher sales will lead to higher liquidity, hence fulfilling its mission to acquire a positive cash flow. Conclusion The hotel industry is dealing with many big, well-known competition, thus in order to survive Radisson should develop competitive advantages. One method is to provide an excellent service in order to satisfy customers, which would lead to higher sales and profits. Another option would be ensuring employees' satisfaction. If employees are happy at their workplace, hence their productivity and work performance will improve; leading to lower costs and a better service. To ensure customers' satisfaction, the business should state its commitment in its business plan, employee's contract, franchisee contract, in every hotel as well as in media, brochures, catalogues, email newsletters, website, etc. However, technological developments may be an assistance to improve its service quality, by for example placing online customer surveys, enabling customers to contact Radisson per email, etc. To ensure that all of its actions are effective, monitoring is important. This could be carried out by undertaking employment relations audits, qualitative and quantitative measures as well as gaining information through primary resources (questionnaires, surveys, focus groups). Recommendation *Training and development Providing training and development allows Radisson to experience a sustainable growth, as staff's skills, staff satisfaction, staff commitment and productivity improves. Moreover, higher productivity reduces costs and hence increases profits. Additionally, as employees become more skilled, performance enhances and thus satisfies customers. *Flexible working hours More and more women enter the workforce. Thus Radisson should provide flexible working hours, to enable its employees (especially mothers) to balance between its job and family responsibility. If not problems and stress might occur, leading to lower job morale, satisfaction and thus lower productivity as well. Flexible working hours also enables Radisson to implement an equal employment opportunity workplace, hence improving its publicity and employee's commitment as they are proud to work in such an ethical company. *Customer oriented As ensuring to provide the best service might be an assistance to develop a competitive advantage, hence Radisson should regularly monitor its performance. This could be achieved by questionnaires, surveys, interviews, etc. Furthermore, it should state its mission of providing "100% guest satisfaction" in every media and contracts to ensure that its mission is fulfilled. Reference Chapman (October 2005), Business Studies in action-HSC course 3rd edition topic 4 Chapman (October 2005), Business Studies in action-HSC course 3rd edition topic 5 Partners & Miles http://www.radissonsas.com/cs/Satellite/Page/RadissonSAS/Page/rsasSimpleArticle/1052456313191/en/ [online], 'cited 26.3.2008' Partners & Miles http://www.radissonsas.com/cs/Satellite/Page/RadissonSAS/Page/rsasSimpleArticle/1052456313197/en/ [online], 'cited 26.3.2008' Radisson Edwardian Story http://www.radissonedwardian.com/section/aboutus.story/aboutus.sidemenus [online], 'cited 26.3.2008' Radisson Hotels http://en.wikipedia.org/wiki/Radisson_Hotels [online], 'cited 26.3.2008' Radisson Hotels and Resorts Expands Complimentary High-Speed (16.1.2007) http://www.forbes.com/prnewswire/feeds/prnewswire/2007/01/16/prnewswire200701161150PR_NEWS_B_MWT_CG_CGTU044.html [online], 'cited 26.3.2008' Read More